CSR Activities for the Future

Sustainable Development Goals (SDGs)
Takuma is working to further progress toward the Sustainable Development Goals (SDGs) through its business activities.

To become a sustainable company while fostering andexpanding a broader range of CSR activities, we begancompiling a CSR activity roadmap in FY2011, which we havesubsequently implemented over time. In FY2012, we chose anumber of key issues based on international guidelines on
corporate sustainability reporting published by the Global
Reporting Initiative (GRI) as well as ISO 26000, aninternational standard on organizational social responsibility.
We are currently working to resolve those issues.

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 toassess how well they had implemented their programs. (Thetable below outlines some of the results of that process.)

ISO 26000
core subjects

Organizational
governance

Key issue

Department

As part of a larger effort to address the Sustainable Development Goals(SDGs) by supplying environmental plants and energy plants asenvironmental products to customers, Takuma has launched a series ofvoluntary internal workshops that cut across organizational boundaries tofacilitate discussions about how it can contribute to the SDGs through its
business activities and in areas outside its businesses.
We look forward to pursuing the SDGs so that we can help build asustainable society while assessing how Takumaʼs activities can make aneven more significant contribution to the SDGs.

FY2018 action program
Action plan

Self-evaluation of results

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.
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 conducted a questionnaire targeting directors and held interviews, evaluatedand analyzed the results, and reported them to the Board of Directors.

Raise awareness among all employees of how to deal with actual
disasters through drills involving Takumaʼs safety confirmation system.

We carried out drills involving Takumaʼs safety confirmation system inAugust 2018 and January 2019, achieving a response rate in excess of 95%.
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.

Support for measures to increase theeffectiveness of the Board of Directors

Planning
Division

Compliance

Cultivation of a robust corporate culture

CSR
Division

Risk management

Risk management in times of disaster

GeneralAffairs
Division

Employee training on social responsibility

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

Marketing
Division

Stakeholder engagement

Development of trusting relationships withcustomers

Marketing
Division

Design of facilities that satisfy customers
through safe, stable operation

Engineering
Division

Have employees discuss what it means to take the initiative to foundtheir behavior on an awareness of social responsibility internally intheir own department in order to facilitate such conduct.
Meet customer requirements in an appropriate manner by working tostreamline communication with customers and among internal
departments.
Utilize review lists and checklists, and carry out performanceverifications during plant commissioning in order to achieve stable
operation of facilities after handover.

Improvement of construction quality

Construction
Division

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

Although we conducted at least one site construction management status check every month,
additional work was added after the facility was handed over to the customer. In each case,
we identified the cause and resolved it by taking steps to address it. While the number of such
incidents increased compared to the previous fiscal year, all additional work was minor innature, and we believe that we were able to effectively improve construction quality.

Assurance of understanding of, and compliancewith, the Antimonopoly Act

Marketing
Division

Offer training on the Antimonopoly Act and continue to implement
the Regulations Concerning Management of the Pledge ofAntimonopoly 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.

Enhancement and monitoring of health andsafety initiatives at worksites

SafetyControl
Division

Prevent accidents requiring leaves of more than 30 days by worksite
employees by conducting safety patrols along with construction
departments, site officials, and partner companies and thoroughly
implementing health and safety activities such as safety inspection planning.

A site employee responsible for marshalling traffic twisted his ankle on a grade
difference at a worksite and broke a bone. It will be necessary to ensure
employees exercise caution in the future regarding grade differences involving
temporary equipment and the installation of suitable lighting.

Improvement of work-life balance

Engineering
Division

Improve work-life balance by encouraging employees to use
alternative time off and annual leave time.

Despite being busy, we were able to foster awareness of the need to
improve work-life balance and meet our targets in that area.

Training and skill development for employees

Engineering
Division

We worked to improve awareness by sharing information internallyabout examples of defects, their causes, and corrective measures, andapplying that information to checklists and other tools.

Implementation of initiatives to reduce
environmental impacts

Engineering
Division

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

Initiatives to save energy and reduce CO2
emissions

Engineering
Division

Work to improve employee knowledge by sharing information aboutcases in which design defects have been caused by insufficientknowledge or experience at departmental and other meetings.
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.
Actively contribute to the resolution of environmental problems by
pursuing measures to save energy and reduce CO2 emissions at plants
during the planning stage.

Contribution to the communities around ourworksites

Engineering
Division

Work to further beautify the neighborhoods in which worksites arelocated by encouraging employees to participate in local clean-up
activities.

Employees have a high level of awareness of the importance ofparticipating in volunteer clean-up activities, and many employees
actively participated in such initiatives.

Fair operating
practices

Compliance with the Antimonopoly Act

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

Environment

Contributions to resolving
environmental problems

Community
involvement anddevelopment

Contribution to society

TAKUMA CSR Report 2019

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.

CSR Activities for the Future

Safety and quality of products and services

Employee skill development(skill enhancement)

39

CSR issue■ Topics SDGs Initiatives

Corporate governanceConsumerissuesLabourpractices andhuman rights

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 theenvironmental and energy fields in which Takumaʼsbusiness operates grows increasingly diverse day by day,and that environment remains one of intensifying
competition. Our technological capabilities in theenvironmental and energy fields, which we have refinedover many years of experience, form the basis of our CSR
management as well as our greatest strength as we look tomake a broad contribution to society. We will continue todraw on this strength in our activities going forward.

Results of the customer satisfaction survey conducted during the previous fiscal
year were reported internally at the beginning of the fiscal year and relayed to
the QM Committee. Evaluations of our coordinators exceeded targets.
We made use of reviews and checklists in the design process and verified
that stable operation is possible during a performance verification carriedout during the commissioning process prior to plant handover.

We actively proposed improvements incorporating measures to saveenergy and reduce CO2 emissions.

TAKUMA CSR Report 201940

Corporate Governance●

Basic policy on corporate governanceout appropriately and that officers carry out their operational
responsibilities by means of a process that is clear, rational,
efficient, and legally compliant. For that reason, we believethat understanding the Corporate Governance Code andputting it into practice in an autonomous and systematicmanner are top-priority management issues.

In order to safeguard and steadily increase Takumaʼs
corporate value over the long term, it is essential not only toensure the development of the companyʼs businesses, but also
to clearly define governance in corporate operations̶that is,to ensure that shareholdersʼ oversight of operations is carried●

Board of Directors●

As of June 26, 2019, the Board of Directors was comprised ofsix directors (excluding directors who are members of the Audit& Supervisory Committee) and five directors (of whom four wereoutside directors). The Board of Directors meets regularly once amonth as a rule and whenever else it is necessary to makedecisions about important issues related to business
management and issues established by law and ordinances, aswell as to oversee the execution of the directorsʼ duties.

Directors

Including the following outside directors:

11 (10 men and 1 woman)

4 (3 men and 1 woman)●

Audit & Supervisory Committee

An Audit & Supervisory Committee that consists of five members,of whom four are outside directors, is responsible for accounting
and operational audits. Members of the committee attend
important meetings, including those of the Board of Directors andthe Committee of Executive Officers, and they strive to understandand observe the status of business execution in a timely andappropriate manner. Drawing on their professional background andexperience, they express their opinions as necessary from an
objective perspective, and they conduct strict auditing of thebusiness execution performed by the directors. To facilitate theeffectiveness of audits carried out by the Audit & Supervisory
Committee, the representative director holds regular meetings withcommittee members to ensure good communication.

Executive Officers●

Takuma has established an Audit & Supervisory Committeeʼs
Office to help carry out the committeeʼs work.
●

Human Resources & Remuneration Advisory Committee

To augment the above structures, we have established a Human
Resources & Remuneration Advisory Committee comprised ofindependent officers, representative directors, and the officer incharge of human resources. The purpose of the committee, amajority of whose membership consists of independent outside
directors, is to increase transparency and objectivity in the selectionof candidates for director and executive officer positions and in thedetermination of the compensation and other terms so as toenhance the oversight function of the Board of Directors.

●

Basic approach●

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 purpose of enabling
compliance and CSR to concretely permeate company-widethrough 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 each division, center, anddepartment. As the person in charge of promoting
compliance and CSR in his or her division, each division orcenter manager is appointed as a Compliance and CSR
Promotion Administrator. As persons who implementawareness and education in compliance and CSR in theirrespective departments, department managers are appointed
as Compliance and CSR Promoters. The meetings conductedwithin this mechanism include regular meetings anddepartmental meetings.

Reporting
Auditing of accounts
Appointment
and removal

ReportingGeneralMeetingof
Shareholders

Reporting andstatement of views

Appointment
and removal

ReportingAccounting
Auditors

Reporting

Cooperation
Assistance

Audit &
Supervisory
Committee

Audit &
Supervisory
Committeeʼs
Ofﬁce

Appointment
and removal

Education, instructions, and reporting

Compliance & Observing and guidance
CSR Promotion
Division
Reporting

Reporting

Cooperation

AdviceDiscussion and reporting

ReportingCommittee ofRepresentative Executive Ofﬁcers(Deliberation of
Director
important matters)

Selection, dismissal, and supervision

41

TAKUMA CSR Report 2019

President

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 as on
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.
●

Departmental meetings

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.
●

Takuma Group Coordinating Committee forCompliance & CSR Promotion

We are 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. During FY2018, we
invited representatives of group companies to participate in
two meetings of the committee.

Committee of Executive Officers

Compliance & CSR Promotion Organization
Internal auditing

Internal Audit
Department

Internal auditing

Discussion of and reportingon important matters
Issuance of instructions and Executive
communication of information Ofﬁcers

Divisionsandcenters

Chairman (Executive Manager of the Compliance & CSR Promotion Division)
Secretariat (CSR Department)
Each division and center
Each department

Execution of
responsibilities

Appointment
and removal

Corporate governance structure

Regular meetings

Board of Directors

Reporting

Auditing

Human
Resources &Auditing andRemuneration
supervision
Recommendations
Advisory
Committee
Board ofDirectors

Variouscommittees

according to that Code. When the unexpected occurs,
emergency 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 to reporton and prevent misstatements in our financial reporting, isbased on the Financial Instruments and Exchange Act. This
internal control on financial reporting for the Group has resulted
in reports that indicate this system has been effective.
In this way, we will continue to work in the future to ensure
thorough compliance while carrying out business properly
and efficiently while also deepening risk management.

Corporate GovernanceIn order to accelerate management decision-making and clarify
where management responsibilities are placed, we have adopted an
executive officer system in which we appoint executive officers whoare entrusted with the responsibility of executing our businessactivities. As of June 26, 2019, there were 15 executive officers(including those who also serve as directors). Moreover, we havealso established a Committee of Executive Officers, which is chairedby the president/chief executive officer, as an organization that
deliberates matters that are brought up at meetings of the Board of
Directors and other important issues related to the execution of ourbusiness activities. This committee communicates and provides
direction about items decided by the Board of Directors and otherimportant items related to the execution of our business activities
appropriately to the divisions that are to execute them.

Audit & Supervisory Committeeʼs Office

Takuma has adopted a Basic Policy for Establishment of anInternal 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 to changing
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 organization(As of June 26, 2019)

Takuma Group
Coordinating Committee forCompliance & CSR Promotion

Compliance & CSR Promotion Administrator (division or center manager)

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

Compliance & CSR promotion structure

TAKUMA CSR Report 201942

Corporate Governance
Takuma has formulated a “Business Continuity Plan” based on the following policies to ensure proper and appropriate continuityof business operations in the event of a large-scale disaster, pandemic, or other emergency:
Takuma follows a “Risk Management Policy” that connects
company-wide risks and separately classifies them into
“project risks” related to our core business, i.e., plant
construction; “DBO project risks” and “DBO project operation,
maintenance and management 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 andconstructing a system of risk management and promoting
the strengthening of management for group companies aswell through our Takuma Group Coordinating Committee
for Compliance and CSR Promotion.

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 andpartner companies to continue business operations.
３．Earn the trust of numerous stakeholders, including employees, their families, shareholders, and nearby residents,and fulfill social needs by continuing business operations.

【Disaster rule system diagram】

Risk Management Policy

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

Risk Management CodeCrisis Management CodeOverseas Risk Management CodeDisaster Prevention 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 we work to make improvements on an ongoing basis.
５．When risk manifests itself, we respond by taking responsible action quickly to minimize any damage andcreating provisional organizational entities as necessary.
６．Group companies carry out risk management activities in accordance with their own policies and plans, withsupport from Takuma.

ReportingPresident
Committee of
Executive Officers

Request for decision/
reporting

Evaluation

Report oninternal control
evaluation
concerning
financialreporting

Request for decision/
reporting

Reporting

Reporting

Risk Management
Department
Internal Audit
Department

Project risk
DBO Project risk
DBO Project operation, maintenanceand management risk

Planning/
reportingPotential risk

Takuma Group
Coordinating Committee forCompliance & CSR Promotion(including risk matters)
Risk management structure

TAKUMA CSR Report 2019

Storm and Flood Damage Countermeasure ManualBusiness Continuity
Plan (BCP)

Novel Influenza Countermeasure Manual
Safety Confirmation System Administration Rules

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, shareholders reports,
annual reports in English and other business information, all on our website.

[Takuma website > IR information]
https://www.takuma.co.jp/english/investor/index.html
Treasury stock:
0.1%

Individuals, others:
8.7%

Each
division

Corporationsin Japan:
15.5%

Financialreportingrisks

Evaluation

BCP
activation

Earthquake Countermeasure Manual

Actualized risk

Evaluation

43

Risks
concerning
corporate
activities* Based on Fire Service Act
Enforcement Regulations

Corporate Governance

Board ofDirectors

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

Fire Prevention PlanGroup
companies

Foreignindividuals:
28.3%
Shareholders Report

Financial institutions
and stock brokerages:
47.4%
Composition of shareholders(as of March 31, 2019)

TAKUMA CSR Report 201944

Corporate GovernanceDirectors

Executive Officers

Takashi Manabe

Managing Executive Officer

Akira Taguchi
Executive Officer

Ryoji TaniManaging Executive Officer

Hidetoshi Tomita
Executive Officer

Norito Uchiyama Mitsuaki Adachi
Managing Executive Officer

Norio Maeda
Executive Officer

Managing Executive Officer

Kunio Hamada
Executive Officer

Keiji Nakamura
Executive Officer

Corporate Governance

Message from a New Outside Director
Tomomi Fujita
Outside Director(Audit & Supervisory Committee Member)(Back row, from the left)

45

Minoru Murata

Osamu Iwahashi

Tomomi Fujita

Hiromichi Satake

Yasushi Enomoto

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Outside Director(Audit & Supervisory
Committee Member)

Director(Audit & Supervisory
Committee Member)

Hideki Takeguchi

Kengo Numata

Takaaki Kato

Hiroaki Nanjo

Tsuyohito Nishiyama

Koji Tanaka

Director
Senior Managing
Executive Officer

Director
Executive Vice President

Director
Chairman
Executive Officer

Representative Director
President andChief Executive Officer

Director
Senior Managing
Executive Officer

Director
Executive Officer

TAKUMA CSR Report 2019Iʼve been involved with corporate legal affairs for about 15 years as an attorney. During thattime, an especially large proportion of my work has centered on legal work involving
manufacturing companies (including consultations, negotiations, and lawsuits involving
intellectual property rights and various domestic and international transactions). In addition toteaching a weekly class through a semester at Kyoto University Law School as a lecturer, I serve asa director of the Licensing Executives Society Japan, whose membership includes top corporate
management and leaders, businesspeople, attorneys, patent attorneys, and scholars.
Iʼm looking forward to taking advantage of my experience and legal knowledge to contribute to
the growth of Takuma, Japanʼs leading plant and boiler manufacturer.
Takuma has integrated many objectives related to the 17 Sustainable Development Goals(SDGs) that were adopted at a United Nations summit in 2015 into its businesses, particularly
clean water and sanitation (Goal 6), affordable and clean energy (Goal 7), and protection of thenatural environment (Goals 14 and 15). Takumaʼs business, and the role it plays in society, will
likely become increasingly important going forward. It is a great honor for me to be chosen toserve as an outside director (specifically, as a member of the Audit & Supervisory Committee) at
Takuma in a new era such as the one we face today, and I will do my best to fulfill my role.
Other SDGs include gender equality (Goal 5) and economic growth and productive
employment (Goal 8). As a female outside officer, I hope that I will be able to further improve
Takumaʼs corporate value by helping to tap the potential of a diverse workforce that includes
woman and boosting productivity.

TAKUMA CSR Report 201946

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.

● Takuma Group Ethics Charter (excerpt)

4. We shall respect fundamental human rights
and never 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
11. Safe work environment

Working with Our Employees
in FY2018, sets forth a series of measures to address ourworkforce, which is an essential resource and thefoundation of all efforts to advance our businesses. Toppriority is given to pursuing hiring and training, and tocreating an environment in which to ensure each and every
employee enjoys an engaging and motivating work
experience while giving full play to all of his or her abilities
over the long term.

Number of employees852(including 784 men and 68 women)

Average age

43.3

Average years of service

15.4

Attrition rate

6.3% (past 3 years)*As of March 31, 2019

Takuma is involved in a variety of employee retention programs to ensure employees remain at Takuma over the long term.

■ Workstyle reform initiatives●Weʼre working to deepen womenʼs understanding of Takuma
while boosting the number of female applicants and hires
through such means as including content speciﬁcally for female
college students on our website and hosting information
meetings just for female students.
In addition, weʼre 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 of March 31, 2021, to●

20, which would be double the corresponding number as ofMarch 31, 2016, by putting in place a workplace environmentthat facilitates ﬂexible workstyles and continued employment.

Number of newly hired graduates over the last 5 years
by gender (main career track)
FY2015FY2016FY2017FY2018FY2019

Men

19

18

19

17

16

Women

1

1

2

2

2

Total

20

19

21

19

18

■ Child-raising and nursing care support measures

Employee data

The 12th Medium-Term Management Plan, which began■ Initiatives to promote the participation of female employees in the workplace

Initiatives to boost productivity

In addition to working to review business processes and streamline and improve operations in individual departments, weʼreworking to boost productivity by deploying a videoconferencing system and automating work by means of RPA.

We offer the following work programs as measures to help employees balance work demands with their child-raising andnursing care responsibilities.
●

Nursing care leave●

Child-raising and nursing-care leave●

Reduced working hours program●

Flex time program●

Telework program

Impressions from an employee who has taken advantage of Takumaʼs child-raising leave (male, 20s, engineering position)
Because our ﬁrst child still requires a lot of care at age 3, I took child-raising leave for about 11 months starting one
month after our second child was born so that my wife could go back to work. I consulted with my supervisor before
returning to my position, and now Iʼm working in the same department as I was before I took the leave. Thanks to the
support of my supervisor, colleagues, and the company, Iʼve been able to participate in the same work as I did before
taking the leave.

■ Employee health initiatives
In addition to stress checks and examinations to assess the riskof 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 tofacilitating employeesʼ physical and emotional health.
We encourage employees with excessive working hours to meetwith an occupational physician for guidance. The Human Resources
Department also interviews such employees and their supervisors
so that we can study and implement corrective measures after thecause of the excessive hours has been pinpointed.

Human Rights and Labor Practices

Using RPA tools to streamline operations
Environmental Engineering Department 1 is responsible for planningmunicipal solid waste treatment plants. The process of planning optimalplants that align perfectly with customersʼ needs requires an extremely
large number of complex calculations that span multiple ﬁles. Among
those calculations are operations in which input parameters must be
varied little by little in an effort to search for the optimal system, withthe result that the process has many, simple steps. To reduce theamount of time taken up by these calculations, we have deployedrobotic process automation (RPA) tools, and we succeeded in saving
about 1,000 hours by means of that approach during FY2018.

●

Putting in place an environment that encourages employees to take annual leave

As a way to promote mutual understanding and cooperation, employees announce their plans in advance for ﬁve of theirannual paid time off days to their counterparts in the workplace. This initiative is conceived to allow employees to takeadvantage of paid time off in a well-planned manner.

Weʼre working to enhance employee ability, technological skills, and management capability by offering grade-speciﬁc
educational programs, from new hires to management candidates.

Newemployee
training

Technical
presentationby 2-year
employees

Thesisdiscussionby 5-year
employees

Presentation
by 10-year
employees

Mid-career
training

Management
training

We hold several technical training sessions a year in order
to increase employeesʼ technical knowledge, including
lectures by university professors and outside researchers andpresentations by Takuma engineering employees about theirwork responsibilities and research themes.

To support employee skill development, we reimburse
employees for the cost of acquiring various licenses and offer
incentives for earning professional certiﬁcations.

To improve employeesʼ language skills, we host the TOEIC
test twice a year and offer incentives to employees who earna high score.

47

TAKUMA CSR Report 2019

TAKUMA CSR Report 201948

Human Rights and Labor Practices

Efforts for Occupational Safety and HealthWorking with Our Employees■ Objective management andhuman resources evaluation system

At the beginning of each fiscal year, operational goals are
determined based on departmental policies and individual
employeesʼ work issues and expected roles. A mid-year
interview in September and annual review interview thefollowing March offer opportunities for supervisors to offer
feedback to their subordinates by evaluating their job
performance and to receive advice and requests from
employees. In this way we strive to foster subordinatesʼ
abilities and improve their motivation throughcommunication between supervisors and their subordinates.

■ Self-reporting system
We have introduced a self-reporting system that allows
employees to communicate their thoughts on topics such as
their future career path directly to the company every three
years. Through this system we are working to assess
employeesʼ awareness, needs, and issues and to apply that
information to human resources measures.

■ In-house commendation system
Each year on June 10, we hold an awards ceremony tocommemorate the anniversary of the companyʼs founding.
●●●

Takuma Prize:
Employees who have helped improve operations or who
have exceptional achievements in community service
Invention and idea commendations:
Employees who have earned patents or other intellectual
property rights
Safety and Health Award in Construction Division:
Foremen at sites without accidents or damage●

Takuma Technical Review Outstanding Paper Award●

Qualifications acquisition commendations●

Length-of-Service Award(every 5 years of service after 20 years)

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

We have created a work group transfer system to facilitate
movement from clerical and labor positions to the main
career track so that motivated and skilled employees canmake use of their abilities. We also provide opportunities for
employees to be promoted to management positions.

●

FY2018

Number of safety
inspections done: 163(Initial inspection pass rate:
95%)
A safety inspection meeting■ Safety patrols and safety talks

Number of reemployed individuals over the past 5 years
FY2014 FY2015 FY2016 FY2017 FY2018
Number of employees reaching retirement age

12

11

3

5

11

Number of employees desiring reemployment

10

10

2

5

10

Number of reemployed employees

10

10

2

5

10

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

●

Number of safety patrols implemented in FY2018

By Safety and Health Committee (members, advisors) : 47
By Safety Control Department: 267
By construction division: 334

Safety patrols

Human Rights and Labor Practices●

in work stoppages (of four or more days); for branches, pursuinga thorough program of safety and health education, ensuring
adherence to safety inspection guidelines, and implementing thebranch safety patrol plan; and for the Safety and Health
Cooperative Association, strengthening collaboration withpartner companies. We will work to revitalize safety and healthactivities 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 healthpolicy ̶ “understanding the need for respecting people andgiving top priority to safety and health” ̶ on the part ofeveryone whoʼs involved in our operations.

■ Safety inspection system■ Work group transfer system

We have put in place programs tooffer employees who have left thecompany after reaching retirement age
reemployment at Takuma and groupcompanies up to age 65.

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-worksafety procedure checklists known as SSAs have been steadily
adopted by all departments and used to consistently improve thelevel of knowledge about Takumaʼs safety and health isparticularly noteworthy.
We have adopted the following safety and health objectives for
FY2019: for construction sites, eliminating accidents that result

Safety talks■ Safety and health education (education for construction site representatives)
We have introduced a number of social welfare programs designed to meet a diverse array of employee needs.
●●

Cafeteria plan:
Employees receive a fixed “benefits budget” from the company to spend by choosing from a menu of options including support
for self-study, child-raising and nursing care, healthy living, and asset-building.
Employee Shareholder Association:
Employees can combine contributions that are automatically deducted from their salaries and bonuses provided by
the company to purchase Takuma shares.

We continuously provide specialized safety and healtheducation at branches and worksites to increase the levels ofsafety awareness and knowledge of our employees andpartner companies.
As indicated at right, more than 17,500 trainees havepassed 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 andordinances to individual construction sites.

●

April, 2004 to March, 2019

Cumulative number of trainees: 34,078
Number of trainees passing the completion exam : 17,621

Head Office venue

49

TAKUMA CSR Report 2019

Tokyo Branch venue

TAKUMA CSR Report 201950

Efforts for Occupational Safety and Health

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 thegoal of ensuring worker safety and health and promoting thedevelopment of a pleasant work environment.
During FY2018, we recognized subcontractors that helped
achieve our zero-accident record at worksites, held a lecture
entitled “Key Revisions to Safety Belt Standards,” and hosted atalk by a guest lecturer entitled “Health and Safety Activities
Incumbent upon Managers: Considering Risk Assessment andHuman Error.” In addition, safety and health partnercompanies gave presentations on their safety and healthpolicies and goals, and all participants closed the meeting by
chanting the FY2018 slogan and pledging to continue to work
toward thorough safety and health management by utilizing
TK-COHSMS.

Mr. Yuichi Nakayama
General Manager
Tobu Crane Service Center
Hitachi Plant Mechanics Co., Ltd.

Presentation of a zero-accident record award

Pointing and chanting of the slogan by all participants

In 2018, the total number of worked hours fell by about
64% compared to 2017. In addition, the total number ofoccupational accidents and accidents leading to missed
workdays fell about 60% of the 2017 level. However, the total
number of occupational accidents held constant in thetwo-digit range for the five-year period starting in 2014. In
3.93

15

3.00

10

9
2.03

12
5 1.13

0.79

3
0

3

0.02
2014

2015

5
0.06

2017

Takumaʼs safety results■ Topics

1.76

1.76

0.03

2016

3.0 Takumaʼs

accident
frequency
2.0 rateandseverity
1.0 rate

0.0
2018(Year)Year

Accident
frequency rate

Accident
severity rate

2014

0.91

0.07

2015

0.92

0.21

2016

0.64

0.11

2017

0.81

0.18

2018

1.09

0.30

Number of casualties
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 receives Outstanding Construction Contractor Award and Outstanding Engineer Award

In November 2018, Takuma was recognized as an Outstanding Construction Contractor for
the Imabari New Waste Treatment Facility Maintenance and Operation Project/Imabari City
New Waste Treatment Facility Construction Project, which was completed in FY2017. In
addition, Takumaʼs site manager for the work was recognized as an Outstanding Engineer.
The pair of awards, which the City of Imabari offers to recognize outstanding construction
contractors and engineers that serve as a model for others in construction technology, site
superintendence, and other areas of their performance in construction work ordered by the City,
are conceived to help ensure construction projects are carried out in an appropriate manner andto improve associated technologies.

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

TAKUMA CSR Report 2019

Shinobu Takahashi
Associate Director
Purchasing Department
Takuma Co., Ltd.

Hitachi Plant Mechanics Co., Ltd., supplies products including waste cranes, which are a key
component at our waste incineration plants. Weʼre deeply grateful for the companyʼs excellent
record of cooperation with our health and safety activities at construction sites, including new
installations as well as overhauls and other work.
Work involving cranes at waste incineration facilities is associated with an extremely highlevel of risk due to the fact that the work must be carried out in constricted areas and at aheight. The magnitude of this risk is borne out by the accident record, and we require
subcontractors to take a rigorous approach to safety management at sites. In asking Hitachi
Plant Mechanics to handle replacing the traveling rails for the waste feed cranes and the fall
prevention safety net at the Shinkoto Waste Treatment Plant last year, we imposed numerous
requirements at a worksite where worker tension was aggravated by the effects of an accident
that had occurred the previous year. The company took those requests seriously and complied
appropriately.
The sequence of work required by the project was completed without accident thanks to an
approach that included a variety of measures, for example applying the characteristics of thesite as assessed in advance surveys into safe work procedures. Iʼm confident that Hitachi Plant
Mechanics developed a shared understanding of Takumaʼs approach to health and safety.
Going forward, I hope that Hitachi Plant Mechanics will join Takuma in working to continue
our zero-accident record by cooperating to implement thorough risk management at all sites
where the two companies work together and by further deepening our shared awareness ofhealth and safety.

Human Rights and Labor Practices

Number ofcasualties(persons)

4.0

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 toeliminate occupational accidents.

Weʼre a general manufacturer of industrial cranes. Our goal is to supply products that meetcustomer needs with an integrated system that encompasses design, manufacture, andafter-sales service, and weʼve been responsible for manufacturing and providing after-sales
service for the ceiling-mounted waste feed cranes in Takumaʼs Energy from Waste plants formany years.
Recently, from August through October 2018 we replaced the traveling rails of the waste
feed cranes and the fall prevention safety net at the Shinkoto Waste Treatment Plant operated
by the Clean Authority of Tokyo.
As their name suggests, ceiling-mounted traveling cranes are installed near the ceiling,making construction potentially hazardous due to the need to work at a height. Consequently,
construction guidelines that value safety are critically important. For this project, we reduced
the risk of falls by holding study group meetings before work started with partner
subcontractors, installing a temporary handrail and multiple safety ropes on the runway,
installing two man lifts on the hopper floor, and ensuring that all workers used two safety
belts.
The work we carried out required great care and compliance with safety standards based on
Takumaʼs safety inspection program, and we were able to complete it without incident or
accident thanks to Takumaʼs guidance, which the company offered in the form of daily
meetings, joint safety patrols, and other means.
We look forward to working to ensure safety in a way that meets Takumaʼs expectations in
the future based on our safety slogan: “Build an uncompromising safety culture that does not
accept unsafe conditions based on thoughtfulness toward coworkersʼ safety.”

Conferment of the awards by Mr. Ryoji Kan,
Mayor, Imabari City

TAKUMA CSR Report 201952

The Environment

Takumaʼs CO2 Emission Reduction Technologies
We convert waste/biomass into energy and reduce CO2 emissions!

Basic Environmental Policy
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.

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

In 1 year, Takuma products

cut about 5 million tons!
Equivalent to the CO2 absorbed by about 350 million Japanese cedar trees*: Assuming one Japanese cedar tree absorbs 14 kg of CO2 per year.
(*Equivalent to a cedar forest the size of 7,500 Tokyo Domes, assuming each tree takes up about 1 square meter of space.)■ Reducing CO2 emission with biomass power plants
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 businessIn 1 year,

down about
4 million tons!

The sugar industry is an example of an industry that generates power using
biomass. Factories that make sugar produce large quantities of residue fromsugarcane, the raw material used to make sugar. Sugarcane is crushed into a pulp,
and sugar is extracted in a mill. The remaining fiber is called bagasse and can beused as plant fuel. The steam and electricity generated by the plant are used assources of heat for the milling process and of power for plant operations, whilesurplus power is sold back to a power company. The amount of power generated
at sugar factories has grown greatly, with examples of single plants that generate
50,000 kW.

CO2 emission reduction achieved by
Takumaʼs biomass power plants(as of end of FY2018)activities.
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.

Environmental Management

What is biomass?

Biomass is any recyclable organic material derived from a livingorganism, but does not include fossil fuels, such as oil and coal. For
example, even though CO2 is emitted if wood chips 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.
Biomass power generation helps reduce the amount of electricity
generated from fossil resources, helping lower CO2 emissions.

Wood
chips

The situation concerning the acquisition of ISO 14001

Biomass power plant

Our Harima Factory has acquired ISO 14001
certification and has been implementing environmental
management activities based on an environmental
management system established to comply withinternational standards.
Our group companies Nippon Thermoener Co., Ltd.,
Takuma Technos Co., Ltd., Hokkaido Sanitary
Maintenance Co., Ltd., and Dan-Takuma Technologies
Inc. have also acquired ISO 14001 certification.

■ CO2 emission reduction from waste incineration plants
Garbage, or waste, is an important source of energy. About 500 kW** of power
can be generated from one ton of garbage. In Europe and the Americas, waste
incineration plants are often called Energy from Waste (EfW) plants, andrecovering 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 ourtechnologies to convert waste into energy and reduce CO2 emissions.

** Presumes waste with a calorific value of 8,800 kJ per kg and a power generation efficiency of 20%

Harima Factory

53

TAKUMA CSR Report 2019

EnergyPalm
Bagasse kernel
shellsThe Environment

●

●

About

1 ton ofgarbage

Waste
combustion

500 kW of
power
generated

In 1 year,

down about
1 million tons!
CO2 emission reduction achieved by Takumaʼsmunicipal solid waste incineration plants(as of end of FY2018)

TAKUMA CSR Report 201954

■ Environmental accounting

The Environment
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 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 monetaryamounts or amounts of materials) with the goal of pursuingenvironmental conservation initiatives in an efficient and effective
manner while maintaining a good relationship with society so as to●■ Environmental data (non-consolidated)●

Total energy consumption

●

4,500
(Tons-CO2 per year)(GJ per year)

90,00060,00030,0000

The total energy consumption of the fuel and theelectricity consumed at Takuma during FY2018 fell slightly
compared to FY2017 levels. We will continue to promoteenergy savings from here on out.

Waste generation●(Tons per year)

900

600

2014 2015 2016 2017 2018 (FY)●

Period covered: April 1, 2018, to March 31, 2019●

Companies targeted:

12 domestic companies

16,003

20,271―

13,479―41,584

38,5981,478,605

2014 2015 2016 2017 2018 (FY)Social activity costs―

11,808

Total

57,256

1,586,782

Water usage●

Environmental conservation effectAccording to the “Environmental Accounting Guidelines,”
environmental conservation effects measure on a material basis theeffects of preventing, controlling, or avoiding environmental impacts,
eliminating their effects, recovering from associated damage, andinitiatives to aid in the same.
FY2017FY2018(1) Environmental conservation effect concerning resources input
for business activities
Total energy input (GJ)
97,416
95,047
Water resources input (m3)45,46048,03440,00020,0002014 2015 2016 2017 2018 (FY)

●

FY

2014

2015

2016

2017

2018

Emissions (tons per year)

0.3

0.4

0.4

0.5

Toluene (CAS No. 108-88-3)
FY

2014

2015

2016

2017

2018

0.3

Emissions (tons per year) 0.08

0.26

0.09

0.07

0.06

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

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

2014

2015

2016

2017

2018

Emissions (tons per year)

3.4

2.2

2.9

1.2

1.1

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.

Even as total environmental impacts must be reduced, it is necessary
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 inaccordance 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 ratioof consolidated net sales to greenhouse gas emissions. In FY2018, thisvalue improved slightly compared to FY2017.

The Environment

Water consumption during FY2018 rose slightly comparedto FY2017. Going forward, we will work to lower our wateruse.

(2) Environmental conservation effect concerning environmental loads
and wastes created by business activities
Greenhouse gas emission volume (tons-CO2)
4,131
3,977
Waste generation (tons)
1,028
934
Final disposal volume (tons)
131
150
Total drainage volume (m3)45,46048,034BOD emissions (kg)
2,448
2,565
COD emissions (kg)
2,613
2,747
T-N emissions (kg)645
693
T-P emissions (kg)
111
121

●

■ Environmental efficiency

Dichloromethane (CAS No. 75-09-2)

TAKUMA CSR Report 2019

Global environmental conservation costs

Research and development costs

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.

55

21,035

Management activity costs■ PRTR target substance emissions

●

2,655

Resource recycling costs0

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.

●

Pollution prevention costs

Item

300

0

1,500

60,000Waste generation
Recycling
Final disposal treatment

Costs
Investment(thousand JPY) (thousand JPY)

Scope of data collected

Business area costs

The greenhouse gas emissions created by our company
are limited to carbon dioxide (CO2). The amount of CO2
emissions in FY2018 fell slightly compared to FY2017 levels.
We will continue striving to reduce CO2 emissions.

(m3 per year)

●

Item

3,000

0

2014 2015 2016 2017 2018 (FY)

Environmental conservation costAccording to the “Environmental Accounting Guidelines,”
environmental conservation costs measure on a monetary basis
investments and expenditures on preventing, controlling, or avoiding
environmental impacts, eliminating their effects, recovering fromassociated damage, and initiatives to aid in the same.

Greenhouse gas emissions

facilitate sustainable development. In FY2006, we introduced anddisclosed 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 needfor environmental conservation, and we have been implementing
approaches toward such issues within the Takuma Group.

●

The Takuma Groupʼs definition ofenvironmental efficiency
Consolidated net sales (million JPY)
Greenhouse gas emissions (tons-CO2)●

Environmental efficiency

40
30

24.42

29.12

26.82 28.61

30.66

20
10
0

2014 2015 2016 2017 2018 (FY)TAKUMA CSR Report 201956

Fair Business Practices
Takuma offers compliance and CSR promotion education through the Compliance & CSR Promotion Organization (see page42), which was established in order to spread awareness of compliance and CSR issues among employees. During FY2018, we
implemented education focusing on compliance and CSR promotion in four separate stages (see below) in keeping with ourpolicy of pursuing a sustained and thorough program of spreading and improving compliance and CSR awareness and risk
management. This effort, through which we sought to live up to societyʼs requirements and expectations, while taking into
account internal circumstances and the characteristics of group companies, was based on the Compliance & CSR Promotion
Divisionʼs medium-term policy of continuing to practice compliance-focused management in accordance with the 12th
Medium-Term Management Plan.
●
●

●
●

1st term:

2nd term: Corporate disaster prevention and mitigation, SDGs (Sustainable
Development Goals), Takumaʼs CSR comprehension test
3rd term: Corporate scandals, security export control
4th term: Compliance and internal reporting system (lecture),
forward-looking CSR activities: CSR issues and an action program(Speaker: Mr. Kiyoshi Endo, Attorney at Law, Endo Kiyoshi Law Office)Sessions: 4 per year (May, August, November, and January)
Number of participating departments: 45
Total number of attendees: 4,026■ CSR lectures for management-level employees
In September 2018, attorney Yusaku Kurahashi of the law firm Nakamura, Tsunoda &Matsumoto gave a talk for managers entitled “Risk Management in Ordinary Timesand in Times of Emergency.”
In the talk, Mr. Kurahashi addressed the job responsibilities and operational
response of executives from the standpoint of risk management in ordinary times andin emergencies. The lecture offered a valuable opportunity to think anew about
conventional risks as well as special risks that are more likely to go unnoticed.

TAKUMA CSR Report 2019●

Holding training sessions about the Antimonopoly Act

We hold regular training sessions about the Antimonopoly
Act to deepen participantsʼ understanding of the act and toascertain 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
a Legislation Information Service. In this system, legislation
alerts highlighting revisions to, and abolition of, laws andordinances are sent by e-mail in advance to employees, who
can also review detailed information about the corresponding
law or ordinance on the systemʼs website as needed.
In addition to current laws and ordinances, the system lets
users search for legal precedents and public comments tofacilitate an even greater understanding of relevant laws andordinances.

Takuma has been operating an internal 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 “Internal 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
employees with information on the reporting contacts andregularly publicize the system. Although awareness of thissystem exceeded 90% according to the results of the FY2018
CSR awareness survey, some respondents indicated that they
were unaware of the system or uninterested in utilizing it,suggesting that issues remain for the reporting system.

Persons seeking consultation or making reports
Response
Outside report contact(Including via anonymous
e-mail if so desired)Consultation
or report

Law officeCompliance & CSR Promotion Division(Investigation and response)Internal reporting process

Fair Business Practices

Initiatives to ensure compliance with
the Antimonopoly Act

Towards ensuring permanent compliance with the
Antimonopoly Act, Takuma enacted “Regulations
Concerning Management of the Pledge of Antimonopoly Act
Compliance,” which provides for the submission of a written
oath in regard to observing the Antimonopoly Act.
“Rules on Controlling Contact with Competitorsʼ Sales
Departments, Etc.,” defines the procedure for an employee tocontact 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.

57

example by offering additional education in areas thatreceived lower scores than in the previous survey. In
FY2018, responses indicated that 921 (of 942) employees
are conducting themselves in accordance with standards
such as the companyʼs Management Principles and the
Takuma Group Code of Conduct, indicating that awarenessof the importance of compliance and CSR have spreadwidely among employees.
We will continue to offer this survey and use its results toimprove compliance and CSR promotion education on an
ongoing basis.

Effect of Japanese-style plea bargaining on corporate operations

4th term lecture●

As a means of understanding the level of awareness ofcompliance and CSR and the level of permeation of
education that promotes these priorities, and employingthat data as reference for the integrated activities carriedout during each fiscal year and for the following fiscal yearʼsaction plan, we have conducted the “CSR Awareness
Survey” every year since FY2008 with the end goal ofutilizing that information for future compliance and CSR
promotion activities. The survey has included groupcompanies since FY2013.
We actively use survey results in our activities, for

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 aof nationality, company size, or transaction history. Suppliers
supplier.
are selected based on our comprehensive evaluation of their
2. Strive to discover new manufacturers.
reliability and safeness in terms of quality, price, delivery,
3. Strictly control confidential information.
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
7.
Always keep VA and VE in mind.
mutual 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 ourbusiness transactions.
More information about the procurement procedures used by our Purchasing Department is available on the following website:[Takuma website > Material Procurement] https://www.takuma.co.jp/procurement/ (content in Japanese)

TAKUMA CSR Report 201958

Consumer Issues

Activities Involving Product Quality
The amount of attention paid by consumers (stakeholders)to quality in a wide range of fields, including manufacturing
and services, has been growing in recent years. This section
introduces Takuma initiatives that are designed to provide
safe, confidence-inspiring products and plants.
Takumaʼs Head Office, branch companies, and otherbusiness offices have earned certification under the ISO 9001
international standard on quality management systems, andthe Harima Factory has earned certification under the ISO
9001 and ISO 14001 international standards on quality
management systems and environmental management
systems, respectively. In December 2017, we completed a

We carry out the following quality improvement initiatives:(1) Conducting a customer satisfaction survey every year since
FY2007(2) Applying customer feedback with regard to delivered
products and Takuma employees to quality and service

transition to ISO 9001:2015, the latest edition of thatstandard. In addition to working to improve the quality of our
products in accordance with our Quality Policy and quality
management system, we are pursuing activities thatemphasize customer satisfaction.
In order to produce products and plants that customers
truly appreciate, it is necessary not only to boost the quality ofthe product itself, but also to improve the operations andquality as well as each individualʼs ability to create a good
plant in each process from planning 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 meet customer
expectations and earn a high level of trust while continuously improving the effectiveness of its quality management system.

Quality Policy“Manufacturing products that result in customer satisfaction”
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.

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)●

With scores averaging higher than 80 points every year since its second year, the questionnaire demonstrates the effectivenessof our initiatives.
In this way, we work to improve product and plant quality so that all customers are satisfied.

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 those goals
at QM Committee meetings (quality management reviews).
As part of the transition to ISO 9001:2015, weʼre working tofurther improve quality by identifying an effort to clarify andaddress risks and opportunities as a key quality goal andevaluating the effectiveness of that effort.
●

Internal quality audits

In addition to increasing the precision of operations bystandardizing operating procedures in each departmentʼs
processes, we are improving operations as necessary bycarrying out an internal quality audit of each department toverify the status of quality management system operation.
Internal quality audits are carried out regularly by
employees who have been certified as internal auditors after
completing internal quality auditor training seminars offered
by instructors from an outside organization. At the training
seminars, employees master content ranging from basic

59

TAKUMA CSR Report 2019knowledge about ISO 9001 to specific methods for
conducting internal audits.

Number of surveys

Average score(Surveys)●

Construction license (Minister of Land, Infrastructure, Transport andTourism license, Special 27-6129, Special 29-6129)

40

100

Construction consultant registration (Minister of Land, Infrastructure,
Transport and Tourism registration, Construction 26-10202)

37●

Improving the employeesʼ individual operational skills

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

Quality control and process reviews

Quality control is an important measure that allows us toprovide exceptional products and plants.
We take action (improvement measures) as outlined by amanual (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 apreventive measure if there are processes that could havecaused 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.

90
83.5
80.2

80

85.5

85.9

85.8

87.7

88.2

86.8

85.6 86.3

27

27

82.3
27

26

●

28

23

18

18

20
19

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY)Questionnaire average score (out of 100 possible points)

Harima Factory
ISO 9001 quality management system certification
ISO 14001 environmental management systems certification
Manufacture of thermal equipment for power generation (Ministryof Economy, Trade and Industry)
Permission to manufacture boilers and pressure vessels, permission
to manufacture cranes (Ministry of Health, Labour and Welfare)

16

60

First-class architect office registration (01A02903)
ISO 9001 quality management system certification

30

25

73.4

70

Head Office, branch offices and other business offices
Consumer Issues

Organizational initiatives for improving quality

Decide where to conduct the questionnaire survey

The figure to the right illustrates how the survey is administered.
First, we administer questionnaires targeting customers who
Conduct the questionnaire survey
had construction work done by asking them to assess the overall
experience after the work is completed, including the nature of thework performed, suitability of delivered equipment, and the level
Investigate the questionnaire resultsof service provided by Takuma staff.
Analyze problem factors and investigate
Next, the QM Committee calculates a score for each item based
recurrence prevention countermeasureson the survey results as well as a report and explanation from the(if results are lower than our standard)
responsible department. The committee then analyzes theAnalyze praiseworthy factors
resulting data.
(particularly for praiseworthy aspects)
If we find a problem, for example an item receiving anevaluation score of less than 70 out of 100 or a score of 1
(dissatisfied) or 2 (rather dissatisfied) on a 4-point scale, the QM
Committee analyzes the cause of the problem and studies
Apply recurrence prevention measures andmeasures to prevent recurrence based on interviews with thepraiseworthy factors across the organization
department in question. We also evaluate aspects of our products
and services that receive especially high praise from customers
and work to further enhance customer satisfaction by combining
Follow up with recurrence prevention measures
problem areas and praiseworthy areas and applying them
Follow up on results
horizontally across involved departments at the company.
For customers targeted for problem analysis and considerationof preventive measures based on the survey results, we also
conduct a follow-up survey to discern whether those measures
were reliably implemented and whether their level of satisfaction has indeed improved.

(Points)●

Customer satisfaction survey process

10

Manufacture of specific high-pressure gas facilities (Ministry of
Economy, Trade and Industry)
Manufacture of refrigerators (Governor of Hyogo Prefecture)

ISO 9001

JQA-1952
ISO 9001 certification
Head Office, Osaka
Office, Tokyo Branch,
Chubu Branch, Kyushu
Branch, Hokkaido
Branch and Harima
Factory

ISO 14001

JQA-EM0313
ISO 14001
certification
Harima Factory

TAKUMA CSR Report 201960

Participation in the Community

Contribution to Society

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 around plants
clean, participate in regional activities, and engage in exchanges with local residents.
This section introduces some of those efforts.

This page introduces some examples of Takumaʼs community service 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 FY2018, a total of 570 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 will continue thisinitiative.

Imabari High Trust is a special-purpose company that was established to operate andmaintain Imabari City Waste Management Center (known as “Bari Clean”), which wasconstructed to connect residents, their community, and the future through safe operationthat inspires peace of mind. The company has promoted exchanges with residents througha variety of events every month since it began operating in April 2018.
The facility is able to serve as an evacuation center in the event of a natural disaster, andit has enough space and emergency supplies to accommodate 320 people for one week. It
can also generate electricity for use in such scenarios. In September 2018, the facility
joined local residents and the city in conducting an evacuation center drill.

In November 2018, volunteers from Operation & Maintenance Services Department 2
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.
Work to open the evacuation center

Before the festival venue doors opened

Flea market

In December 2018, the facility held the Imabari Environmental
Festival to prompt exchanges with local residents and environmental
education. Numerous residents attended the event, which wascosponsored by Imabari High Trust, and enjoyed activities including aflea market, environmental learning booths, and tours of the waste
treatment facility.
The company will continue to operate the facility in an appropriatemanner so that it can earn the understanding of residents in ordinary
times as well as in times of emergency as a facility that treats waste in asafe, stable manner in line with the Imabari Model (a model for21st-century waste treatment facilities) while earning a place in thehearts of local residents and safeguarding the community, and as a placethat offers environmental awareness-raising and hands-on learning
opportunities while communicating related information.

A tour of the waste treatment facility

Takuma serves on the Board of Trustees of the Japan Association for the World Food
Programme, the official supporting partner of the World Food Programme in Japan. Each
year, we display WFP posters at the entrances to company 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.

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

calendars at a charity calendar market sponsored by the NPO
Nippon Volunteer Network Active in Disasters are used toprovide aid for victims of natural disasters and other crises.
We also donate calendars to the NPO Community Support
Center Kobeʼs Gift On Heart Calendar project for delivery to
local residentsʼ associations and other groups, elderly
residents, and individuals with disabilities.

Participation in the Community/Contribution to Society

In August 2018, Takuma and group companies Takuma Energy and Fujisawa High
Trust manned a joint booth at the Recycle Plaza Fujisawa Fair, an event that is held
every year in the city of Fujisawa to promote and raise awareness of issues such as 3R
initiatives and use of renewable energy. This year, we promoted local production andconsumption of surplus electricity from Energy from Waste plants. Numerous local
residents, especially families, visited Takumaʼs bicycle-driven hands-on power
generation area, which attracted crowds for the duration of the event.

Takuma supports blood donation activities through the Japanese Red Cross Society.
During FY2018, a total of 122 donors participated in blood drives at the Head Office andHarima Factory. Donors can simultaneously register as bone marrow donors at the Head
Office, and this year eight employees did so. We plan to continue this activity in the future.

Each year, Takuma donates unused calendars to a
non-profit organization. The proceeds from selling the
Bicycle-driven hands-on power generation area

Publications
Takumaʼs Harima Factory has registered as an eco classroom as part of its ongoingsponsorship of environmental learning in the city of Takasago. In October 2018, acoordinator from one of Takumaʼs engineering departments visited Takasago
Municipal Amida Elementary School to teach an environmental learning class entitled“Thinking about Waste.” The instructor used slides and other learning materials to
explain topics such as waste generation, sorting, treatment, and recycling in aneasy-to-understand manner to a group of about 90 third-graders. The children listenedwith interest as the teacher happily answered their questions.

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TAKUMA CSR Report 2019

We publish the Takuma Technical Review twice a year to introduce technologies that Takuma has developed.
Contents in FY2018 included an explanation of how power can be locally produced and consumed
based on examples from Takuma Energy, operational reports on plant equipment, observations from visits
to overseas facilities, and profiles of delivered projects. Abstracts are available on Takumaʼs website.
Eco classroom[Takuma top page > Technical Information > Technical Review]https://www.takuma.co.jp/english/gijutu/gihou.html

TAKUMA CSR Report 201962