Serving the nextof customers
Creating the nextof society

years
years

Takuma started out as a boiler manufacturing company that was founded in1938 based on a philosophy of contributing to society through its technology.
We have continued to oﬀer support day in and day out to customers andcommunities by manufacturing essential facilities that will serve them for morethan 50 years, including low-environmental-impact waste incineration facilities,
biomass power plants, and clean centers that play a key role in their areas.
What will be required of us in the future?
We must create a sustainable society with a vision thatstretches out to 100 years in the future, for example bygoing beyond conventional approaches to address
climate change and realize a cyclical economy,by leveraging technologies and services to manufacture
the essential facilities that will serve the next
50 years of customers as a leading company
in the area of the environment and energy.
Serving the next 50 years of customers.
Creating the next 100 years of society.
That summarizes Takumaʼs corporate value, and our mission.
We will continue to play an essential role for customers
and society as a whole by creating essential products
and services for the future while embracing
a philosophy that has remained unchanged
since the days of our founding.

01

TAKUMA CSR Report 2022

02
04

Co m p a ny Mot toManagement
Principles

Value Technolog y,

Takuma will strive for social contribution, corporate value enhancement,
long-term corporate development and the satisfaction of all stakeholders byproviding goods and services that are needed and recognized as valuable in society.
The founding spirit of Takuma was “Serve society through boiler manufacturing*”, which inpresent-day language means “to contribute to society by supplying goods and services that
we provide”. This spirit can also be applied to the concept of Corporate Social Responsibility(CSR) that in recent years has become a vital issue for corporate management.
The management principles of Takuma and the Takuma Group companies are all based on
the said founding spirit.

Value People,*Serve society through boiler manufacturing: It was the Company Motto of Takuma, then Takuma Boiler Manufacturing Co., Ltd.,
founded by Tsunekichi Takuma, one of the ten great inventors of Japan during the
Meiji and Taisho periods (1868-1926).

Value the Earth

Ta k u m a G r o u p
Et h i c s C h a r t e r

Takuma and the Takuma Group companies believe that it is essential for the sounddevelopment of the group that all of the directors and employees remain aware of our social
responsibilities and the circumstances surrounding us as well as act in response to social
ethics complying with applicable related laws and ordinances. Bearing the above in mind, we
have established and will promote this ethics charter as our code of conduct, aiming torealize our management principles.

1. We shall strive for a proactive social contribution while establishing a harmonious
coexistence with the global environment as good corporate citizens.
2. We shall act in good faith in accordance with sound business custom, while
complying with applicable laws and regulations and committing ourselves to fair,transparent and free competition, as well as conducting lawful business activities.
3. We shall never have any relationship with antisocial forces or such organizations,which may pose a threat to the social order and security of civil society.
4. We shall respect fundamental human rights and never practice discrimination.
5. We shall strive to provide high quality products and services,
based on our advanced technologies, to attain high acclaim andconﬁdence from our customers.
6. We shall strive to disclose corporate information to shareholders and investors
through Investor Relations (IR) and other activities on a timely and equitable basis.
7. We shall strive to protect corporate properties as well as information,
while never using either for improprieties or any unjustiﬁable purpose other thannormal business operations.

INDEX
Serving the next 50 years of customers
Creating the next 100 years of society

Section 01

Growth Strategies

Company Motto and Management Principles …………… 03

The Takuma Groupʼs Values and Vision ………………… 21

Message from Top Management …………………………… 05

Value Creation Process……………………………………… 23

At a Glance

Key Issues (Materiality)……………………………………… 25……………………………………………………… 09

TAKUMAʼs Technologies ……………………………………… 11

13th Medium-Term Management Plan …………………… 27

TAKUMAʼs Contributions ……………………………………… 13

Business Strategies

TAKUMAʼs History ……………………………………………… 15

Our Achievements ……………………………………………… 39

TAKUMAʼs WORK ……………………………………………… 17

Feature: Machida City Bio-energy Center ……………… 41…………………………………………… 31

Section 02

ESG Initiatives

Section 03

Helping Combat Climate Change:
Conserving Resources and Protecting the Environment … 47
Disclosing Information Based on TCFD
Recommendations

Company Information

Financial and Non-ﬁnancial Data …………………………… 77
Stock Information ………………………………………………… 79
Company Outline ………………………………………………… 81

Strengthening Relationships of Trust with Customers
and Communities ………………………………………………… 57
Pursuing Partnerships and Innovation …………………… 59
Promoting Activities of Human Resources ……………… 61
Ensuring Safety and Health………………………………… 63

Strengthening Corporate Governance…………………… 65

Executive Proﬁles / Message from the Newly
Appointed Outside Directors

Editorial Policy

03

The CSR Report 2022 is intended to communicate the Takuma Groupʼs eﬀorts to realize sustained growth for itself and society to all stakeholders
in an easy-to-understand manner by integrating ﬁnancial information with non-ﬁnancial information about topics such as Environment, Social, andGovernance (ESG) initiatives in a comprehensive manner. This edition of the Report has been designed to provide an even better understanding byoﬀering enhanced coverage of newly formulated corporate concepts and corporate governance information. We will use this report as acommunications tool to deepen dialog with stakeholders, further improve CSR activities, and increase our corporate value.

Publisher: Compliance & CSR Promotion Division, CSR Department, Takuma Co., Ltd.
Data Collection Period: From April 1, 2021, to March 31, 2022, in principle. In addition, some activities in FY2022 are included.
Coverage: This report applies to Takuma Co., Ltd., and its aﬃliates in principle. Time of issue: October 2022

TAKUMA CSR Report 2022

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Message from Top Management

We continue to help solve
social problems and contributeto the sustained developmentof the world by creating valuable
products and services.
October 2022
President and CEO, Takuma Co., Ltd.
Hiroaki Nanjo■ Management Principles
Tsunekichi Takuma, one of the 10 greatest inventorsof the Meiji and Taisho periods, founded Takuma in
1938 with the philosophy of “Serve society throughboiler manufacturing”. Since that time the Takuma
Group has inherited that philosophy and used it toestablish businesses involving the full array of boilers
while taking advantage of technologies developed
through boilers to enter the environmental sanitationﬁeld with facilities such as waste treatment plants andwater treatment plants, broadening its businesses witha focus on the ﬁelds of energy use and environmental
protection, and contributing to societyʼs development
and the resolution of social problems. P15-16
Takumaʼs Management Principles state, “Takuma
will strive for social contribution, corporate valueenhancement, long-term corporate development andthe satisfaction of all stakeholders by providing goods
and services that are needed and recognized as
valuable in society”. Those Management Principles lie
in this founding spirit, and a dedication to contributing
to the sustained development of society over the long05

term through business activities remains the starting
point of the Takuma Group as well as a core
expression of its unchanging values.
Along with the technologies and expertise that the
Takuma Group has accumulated through the repeated
improvement of products and services in keeping withthese values, the relationships of sincerity and trustthat the Group has developed with longstanding
customers by providing after-sales service and solutions
have been passed down unbroken as the tangible andintangible assets that embody its greatest strengths
and the source of its ability to compete successfully.

■ Towards sustained growth

Currently, we are facing a variety of social issues.
Medium- and long-term trends posing global issues
include the increasingly serious problems of climatechange and rising energy demand accompanying
population growth and economic growth in developing
nations. Challenges in Japan include falling domestic
demand due to the shrinking and aging of the
population, labor shortages, ﬁnancial pressure on bothnational and local governments, and aging of public
infrastructure. Furthermore, impacts stemming fromthe COVID-19 pandemic and Russiaʼs invasion of
Ukraine have added to the uncertainty surrounding
humankindʼs drive to realize a sustainable society.
Against this backdrop, the question of how to achievesustained growth into the future is a key challenge.
The Takuma Group recently formulated Vision 2030,
its long-term vision setting forth medium- andlong-term management policies, and launched its 13th
Medium-Term Management Plan (FY2021 to
FY2023) in April 2021 as the ﬁrst step towards
realizing that vision. In addition to working tostrengthen our existing businesses by reinforcing
such aspects of our management foundation as
human resources and engineering capabilities, we are
striving to realize sustained growth by accelerating our
response to future environmental changes. P27-30
Although we missed our initial target of ordinary
proﬁt of JPY 10.6 billion by a small amount during
FY2021, the ﬁrst year of the plan, we reliably turned
continued robust demand for facilities like municipal

solid waste treatment plants and biomass power plants
into orders and exceeded the initial target for orders
received by setting an all-time record for that metric.
We will continue to work to implement the plan.

■ Implementing Environment, Social, andGovernance (ESG) management

The Group is implementing ESG management,
which seeks to satisfy all stakeholders and realize
sustained growth for the Group by strengthening
initiatives that address ESG issues through ourbusiness activities. P23-26
ーEnvironmentー
Vision 2030, which sets forth a long-term vision for
the Group as it should exist in 2030, includes thisstatement: “Aim to maintain our role of being an
indispensable presence in society as a leading
company in the ﬁeld of renewable energy utilizationand environmental protection by realizing sustained
growth alongside our customers and society throughimplementation of ESG management”. Reducing
environmental impacts by increasing adoption of

TAKUMA CSR Report 2022

06

Message from Top Management

renewable energy will be an essential part ofsteps to combat climate change. The
generation of power using biomass andunutilized waste products as fuel will make aparticularly signiﬁcant contribution to thedevelopment of a Sound Material-Cycle Society
by not only facilitating a stable supply of power
independent of climate impacts, but also
reusing and reducing waste. By converting
biomass and waste into energy with thebiomass power plants and municipal solid
waste treatment plants we supply, we will help
both reduce emissions of greenhouse gases likecarbon dioxide and facilitate the long-term,
stable supply of power.
ーSocialー
Human resources who contribute to each andevery of our departments and worksites will play
an essential role in realizing Takumaʼssustained growth. By promoting diversity andutilizing a diverse workforce, we can respond tochanges in the business environment in a
ﬂexible and timely manner. Furthermore, thedeepening of the superﬁcial promises diverse
perspectives that will introduce new ways ofthinking and ideas to our organization. By
fostering mutual recognition and respect ofdiversity, the organization can accept diverse
human resources, leverage their abilities, andcreate an environment in which employees are
assigned to the positions that best suit them.
Creating workplaces where each employee
takes ownership by becoming an engaged andinterested party, where colleagues collaborateclosely and honestly share common purpose,and where everyone puts into action decisions
made through thorough discussion will serve tostrengthen growth and competitive capability.
ーGovernanceー
At a time when the business environment inwhich the Group operates is forecast to
experience continued uncertainty about the
future, momentary lapses have the potential toturn into crises that shake management to itscore. Under such conditions, TakumaʼsManagement Principles provide a touchstone
for reﬂection when grappling with diﬃcult
decisions. Fostering a perspective that asks
whether we are valuing the Management
Principles in our jobs and whether we are using
them to inform decision-making will lead us in a
direction that increases the organizationʼs

performance. By ensuring that the Management
Principles permeate our organization, we canboth resolve social issues and increase our
proﬁtability so as to realize sustained growth forsociety and the company alike.

■ Expectations for the new Harima
Factory in 2022
The new Harima Factory will begin operatingin December 2022. The new plant will inherit
high-quality manufacturing policies to serve asa manufacturing facility characterized by higher
productivity and quality as well as people- andenvironmental friendliness as it responds to an
every-diversifying range of customer needs,
including demand for larger boilers that operate
at higher temperatures and pressures. We
expect the new Harima Factory toaccommodate a new era by inheriting the siteʼs
80 years of history while combining new
production technologies with tradition.
Takuma has been a signatory to the United
Nations Global Compact* since 2006, and we
support its 10 fundamental principles in thefour areas of human rights, labor, environment,
and anti-corruption. We will work to develop ourbusiness while understanding and respecting
these globally shared principles. The Takuma
Group has been helping resolve social issues
with technologies for reducing emissions ofgreenhouse gases through such means as
high-eﬃciency power generation using waste
and biomass since before the phrase“renewable energy” entered into common
usage. We believe that initiatives to achieve theSustainable Development Goals (SDGs) put
forth by the United Nations [P14]P14 and the
COP21 Paris Agreement align extremely wellwith the Groupʼs businesses.
Finally, in compiling this CSR Report we havesought not only to provide a resource by meansof which a broad range of stakeholders canlearn more about the Groupʼs activities, but also
to help each and every Group employee thinkcarefully about CSR and bring that perspective
to bear in his or her work. We at the Takuma
Group encourage readers to oﬀer their candid
views and advice, which we will carefully review
in order that we might better resolve social
issues and contribute to the sustained
development of society.

*United Nations Global Compact:
The Takuma Group has joined the United Nations Global Compact (UNGC), which is a voluntary eﬀort to create a global
framework for implementing sustainable growth by having companies and groups exercise responsible and creative leadershipwhile acting as good members of society.

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TAKUMA CSR Report 202208

At a Glance

General-purpose boilers
As the convergence of our
combustion technologies, ourboilers are a reliable brand thathas earned the support of a wide
range of industries.

TAKUMAʼs strengths●Established1938

Municipal solid waste
treatment plants●Consolidated net sales (million JPY)

134,092

We support the realization of aSound Material-Cycle Society
using advanced waste treatment
technologies that meet the needsof local communities.

(Fiscal year ended March 2022)●Number of employees (consolidated)

4,145

Industrial waste
treatment plants
Using advanced incineration
technologies, we properly treat
toxic substances and help theindustryʼs environmental protection
eﬀorts.

Air-conditioning equipment
and clean systems
We provide comfortable, clean
environments to customers in thesemiconductor industry as well as
many locations such as universities,
research institutions, and hospitals.

(As of March 31, 2022)●Our achievements (to date)
Municipal solid
waste treatment

360+
630+
120+
3,200+
2,700+

No.1 sharein Japan(Japan)Biomass boilers

facilities

Worldwide

units

Industrial
waste treatment

Water treatment plants
We are working to purify
contaminated water with a holistic
perspective through a “dialogue
with water”.

Energy plants
Takumaʼs core technologies are
utilized in various types of boilers,from biomass-fueled boilers to total
systems.

Worldwide

Reductionof about

facilities

Boilers(including biomass)

during FY2021 through Takuma products
Worldwide

units

Upﬂow
moving-bed
sand ﬁltration
systems

09

units

P47

4 million tons

●Contribution to reducing CO 2 emissions●Share of the market for municipal solid waste treatment plants(cumulative to date)

No.1 sharein JapanNo.1

in Japanin terms of bothscale and quantity

By number of facilities:

12.0%

By facility capacity:

19.2%

TAKUMA CSR Report 2022

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TAKUMAs
Technologies

From waste treatment toenergy creation

Treating
waste

Creating
heat and electricity

Supplyingpower to communities

Takumaʼs technologies that
support infrastructure

Recycling
contaminated water

Since inventing the ﬁrst domestically produced boiler,
Takuma has continued to contribute to the development ofsociety by supporting social infrastructure.
Precisely because our businesses are related to the infrastructure
upon which life and industry rest, the pursuit of technology is
our core social mission.
Through our technological capabilities, we will contribute to theresolution of climate change and other social challenges bysupplying plants that leverage proprietary combustion technology,
waste treatment technology, water treatment technology,
and other technologies developed since Takumaʼs founding.

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TAKUMAs
Contributions

Proven track record andaccumulated trust:
Leveraging Takumaʼs pride
to realize a promising future
The track record and trust we have accumulated over more than
80 years testify to the essential role we play in the world,
and we take pride in having helped resolve issues faced bycustomers and society throughout our history.
Rather than resting on those accomplishments, we will continue toembrace the challenge of realizing the sustainable development ofsociety in these ever-changing times through the collective effort
and hard work of our employees.

13

Serving as a leading company
in the environmental ﬁeld

What can we do on behalf of the Earth?
Protecting the environment and utilizing
renewable energy.
We are harnessing a variety of technologies to help resolve these
critical global environmental issues, which are set forth in the
Sustainable Development Goals (SDGs) adopted by the United
Nations. Helping ensure that people worldwide can enjoy aﬄuent andfulﬁlling lifestyles while safeguarding our planetʼs abundantenvironment... we will continue to embrace these challenges.

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TAKUMAs It all began with one manʼs
1938
History
pursuit of a challenge

1958

Founding of
Takuma Boiler
ManufacturingCo., Ltd.
Entry into theenvironmental
and sanitation
markets

Founder Tsunekichi Takuma invented the ﬁrst water tube
type boiler to be entirely produced in Japan in 1912. The
TAKUMA boiler oﬀered performance that exceeded theimported products of the time, and its reputation spread.
Takuma Boiler Manufacturing Co., Ltd., was established in
1938. The Company Motto of “Serve society through boiler
manufacturing” was formulated, establishing the philosophy
that went on to become the foundation of todayʼs
Management Principles.

Tsunekichi Takuma

Takuma established itself as a manufacturer not only of
boilers, but also environmental and sanitary equipment, forexample by developing waste heat recovery boilers that use
waste heat from manufacturing plants, developing modern
technology for incinerating solid waste, and entering thewater treatment market. In 1963, the company delivered
Japanʼs ﬁrst 24-hour operating waste incineration plant.
Japanʼs ﬁrst 24-hour operating waste
incineration plant (1963)

1972
1985
Passing on the spirit of“Serve society through boiler
manufacturing” to the future
Takuma was founded on the basis of the philosophy of “Serve society
through boiler manufacturing”. This philosophy reﬂects the thinking offounder Tsunekichi Takuma, and it has been passed down over the years
to todayʼs employees.
Company emblem at thetime of Takumaʼsfounding

15

The company emblem established at the time of
Takumaʼs founding stylized the companyʼs name(Takuma) with a triangular shape that combined thethree core areas of its operations: research,
manufacturing, and installation. The design expresses
the companyʼs philosophy which focuses on giving
top priority to the continuous improvement of quality
and on contributing to customers and society.

2001
2022

Developing
along withindustrial society

Building
a resilient
managementfoundation
Embracingglobal challenges
and building
a new era

Realizinga sustainable
futureTakuma worked to develop technologies to respond tovarious needs as Japanʼs economy grew rapidly, including
demand for energy savings in industry, the growing volume
and diversiﬁcation of municipal waste, and improvements inwater quality by water treatment systems. In 1972, Takuma
Boiler Manufacturing Co., Ltd., which had grown beyond its
principal business of boiler manufacturing, changed its nameto todayʼs Takuma Co., Ltd. The company transformed itself
into an enterprise that operates a range of multifacetedbusinesses, including environmental equipment.
Takuma continued to reform itself, formulating its ﬁrst
Medium-Term Management Plan in 1985 in order toaccommodate abrupt changes in the economic environment.
In 1992, the company introduced a new Company Motto of“Value Technology, Value People, Value the Earth”,
inheriting the spirit of the former motto of “Serve society
through boiler manufacturing”. Capping the track record andtrust it had established to date, the company delivered oneof the largest waste incineration plants in Japan in 1998.
The facility continues to operate to this day.

Name change(1972)

Mass production of the Vacotin
Heater, the worldʼs ﬁrst vacuumtype hot water heater (1975)

Completion of the
Amagasaki HeadOﬃce Building (1995)

Delivery of theShin-Koto Incineration
Plant (1998)

Delivery of an Energy
from Waste plant inEurope (2010)

Construction of the
Takuma Solar Power
Plant (2013)

Seeking to make further progress in the ﬁelds of renewableenergy and environmental protection, Takuma supplied
technologies for using energy from a variety of waste types
and biomass as well as technology for rendering waste
harmless. We established local subsidiaries overseas andcontinue to bring our technologies to customers not only inJapan, but also worldwide, particularly in Asia.

A contemporary society continues to change at a dizzying
rate, we face complex problems such as climate change andchanges in demographic structure. In FY2021, Takuma
formulated Vision 2030, a long-term vision that calls on thecompany to practice ESG management, and the 13th
Medium-Term Management Plan, and the company has now
come together to work towards the goals set forth in those
two documents. Going forward, we will continue to strive toincrease our corporate value and realize a sustainable
society.

Artistʼs conception of the new Harima Factory(tentative completion: December 2022)

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TAKUMA’s

WORK
D ive r sit y i n t h e
s e r vi c e of i n n ova t io n
Realizing a synergy of individual employeesʼ diverse personalities and abilities is essential to
Takumaʼs pursuit of ESG management.
We will draw on a culture that prizes friendly competition and hard work to make the most of
the potential of our people so that we can pool employeesʼ abilities to create new value forsociety and customers.

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