Sustainability Section

Special Feature: SDGs Dialogue

To Become a Leading Company of Choice for
the Customers through the Implementation ofSustainability Management
Senior Managing Executive Officer;
Chief Sustainability Officer (CSO)
Chief of Sustainability Division (Integrated);
Chief of Clean Energy & Environment Business
Promotion Division

Fellow (Sustainability),
Mitsubishi UFJ Research andConsulting Co., Ltd.

Jiro TANIYAMAMari YOSHITAKA

CSO×Expert

SDGs
Dialogue

The Taisei Group has targeted the front-runner status in the environmental sector, accelerating its initiatives
towards carbon neutrality, and aims at the enhancement of corporate value and sustainable development
by solving environmental and social issues through its business.
This time, we invited Ms. Mari YOSHITAKA, an environmental financial consultant and a pioneer inenvironmental business, to have dialogue with Mr. Jiro TANIYAMA, Chief of Sustainability Division (Integrated)
and Chief Sustainability Officer (CSO). They discussed the prospect of roles the Taisei Group is currently
expected to play in sustainability management, and future possibilities.

Global Trends in Decarbonization
YOSHITAKA: Since July 2022, the government has been
hosting the meetings of the GX (Green Transformation)
Implementation Council chaired by the Prime Minister. InFebruary 2023, the Cabinet approved a Basic Policy aimed
at implementing GX. The policy sets advancing decarbonization efforts and implementing “growth-oriented
carbon pricing schemes“ to realize the economic growth,
while mitigating climate change and ensuring a stableenergy supply. Efforts towards GX are accelerating, for57 TA I S EI A NN UAL R E POR T 2 0 2 3

instance, the policy has been announced to realize GX
investment of more than ¥150 trillion by the public andprivate sectors combined over the next decade.
Over 20 years ago, I studied environmental economics
and business management, including emissions trading,in the United States. Although the signiﬁcance of environmental management was not as widely recognized as it istoday, the environment surrounding the green businesshas dramatically changed over the last two decades. For
instance, companies are now required to include sustainability issues such as the measures to mitigate climate

About the Taisei Group

Taisei Group’s Growth Strategy

change in their Annual Securities Reports, in accordancewith TCFD recommendations. It goes without saying thatcompanies shall take such measures to mitigate climatechange and it is also required for the companies toundertake proactive efforts and disclose information,
being connected to improve their corporate value beyond
such initiatives.
Similarly, Mitsubishi UFJ Financial Group has establishedspecialized departments focusing on sustainable business.
We are assessing investment and loan recipients andexpanding our business through ongoing engagement withcompanies. I have a keen interest in the sustainability
initiatives and future prospects of the Taisei Group.
TANIYAMA: Concerning the national policy of GX investment of ¥150 trillion, we deﬁnitely want to leverage it toexpand our business opportunities. I have heard that youattended the 27th session of the Conference of theParties to the United Nations Framework Convention on
Climate Change (COP27) held in Egypt in November
2022. How was it going there?
YOSHITAKA: While COP27 did have some achievements, such as the decision to establish a dedicatedfund to support measures against “loss and damage”
in developing countries affected by climate change, I feelthat numerous issues to be discussed continuously
remained, such as conﬂicts between developed anddeveloping countries as well as among developed
countries themselves.

Challenges to Achieving Carbon Neutrality
YOSHITAKA: In October 2020, the government declared
its aim to achieve carbon neutrality and decarbonizedsociety by 2050 by reducing overall greenhouse gas emissions to net zero. Evolving further initiatives by privatecompanies is crucial for achieving this target, but I believe
there are multiple challenges facing companies as well.
First, let me ask about your supply chain initiatives. The
construction industry has a broad reach, involving
companies of various sizes and types—from the leading
general contractors such as your company to small andmedium-sized contractors in regions. How do you plan toachieve carbon neutrality throughout the supply chain, byinvolving these companies that are upstream of Scope 3
on your business? When I spoke with the top management of another construction company before, they said
that supply chain was a challenge, and while their own
efforts could be effective, it was very challenging to instillsuch awareness into the end of the supply chain.
TANIYAMA: Unlike general manufacturing business, theconstruction business lacks ﬁxed production facilities, andsupply chain changes depending on the projects construction companies undertake. It is a signiﬁcant challenge toinstill our sustainability practices consistently into such adiverse range of companies, some of which are publicly

Sustainability Section

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Data Section

TANIYAMA: Our Company participated in the Japan
Pavilion for the ﬁrst time and exhibited our T-Green® Multi
Solar and T-eConcrete® technologies. I heard that thebooth attracted a large number of visitors throughout theevent, making it quite a success.
YOSHITAKA: I was there, and it was indeed favorable. I
was aware of a high level of interest from developing countries, particularly in technologies such as T-eConcrete®,that absorb CO2 through concrete. Despite some negative
media coverage in Japan, citing that Japan received theFossil Award for its substantial public funding for fossil
fuels, environmental technologies from Japan are highly
valued globally. I think Taisei Corporation should more
actively promote such technologies.

traded and others are family-owned. However, we believe it
is part of our duty as the prime contractor to continue withpersistent efforts such as brieﬁngs, surveys, and interviews.
YOSHITAKA: Cautiousness might also be required inroutine operations, for instance, to what extent the prime
contractor may intervene in the business activities of thecompanies in the supply chain or instruct to such companies, or if such operations are regarded as abusing asuperior bargaining position.
Next, I would like to talk about the issue of cost.
Innovative technologies such as T-eConcrete® which wementioned before will contribute to solving social issues
only if they are widely adopted. Many companies still
operate under the notion that it costs for environmental
initiatives, and I think there are cost-related challenges inbeing widely adopted environmental technologies suchas T-eConcrete® and connecting them to the businesswithin the Taisei Group.
TANIYAMA: Absolutely, the cost of using those technologies is currently higher than that of traditional methods
and materials. We need efforts to seek understanding
from our customers as part of their Scope 3 decarbonization efforts. We believe the key to broader adoption lies in
reducing the costs by continuing to run demonstration
experiments, identify and address issues, and collaborating with various companies.

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Sustainability Section

Special Feature: SDGs Dialogue

Carbon Neutrality and Regional
Cooperation
YOSHITAKA: Carbon neutrality is not an issue that can be
resolved by companies alone. Naturally, it requires support
from the national government as well as co-creative activities with local governments. The Ministry of the Environment
has selected “Decarbonization Leading Areas,” focusing
primarily on local governments and also involving local
companies and ﬁnancial institutions, has resolved regional
issues in accordance with each area’s unique characteristics, and will indicate a direction towards decarbonization
while improving the quality of life for residents. I serve on
the Evaluation Committee for these Decarbonization
Leading Areas and have observed very interesting initiatives
being launched in various regions. For construction
companies whose operational ﬁeld includes both domestic
and international locations, I believe such initiatives offer abusiness opportunity to simultaneously enhance corporate
value and solve issues.
TANIYAMA: I fully agree with you. In April of this year, weestablished a specialized department focusing on regional
cooperation within our Sustainability Division (Integrated),
and have started to reinforce such cooperation throughout
the entire company. We have received various requests
and inquiries from local governments and have madeproposals that utilize our cutting-edge technologies towards
achieving carbon neutrality. Some of these initiatives are
already underway. In “Medium- to Long-Term Vision:
TAISEI VISION 2030” formulated in 2021, we aim to be “aInitiatives for Environmental Due Diligence
YOSHITAKA: I would like to shift our discussion fromcarbon neutrality to broader environmental issues. I
understand that Taisei Corporation has begun considering environmental due diligence, is that correct?
TANIYAMA: Yes, we revised our Environmental Policy inMarch 2023 to include “Continuous Implementation ofEnvironmental Due Diligence.” We have already implemented risk measures related to the environment, such asestablishing an environmental management system (EMS)
and formulating the Taisei Group Sustainable Procurement
Guidelines. Currently, we are identifying environmental
risks as a part of systematically implementing a PDCA

Sustainability Management Attracts
Human Capital
YOSHITAKA: I am also a lecturer at several universities,
and when I talk to students, I ﬁnd that they tend to be
more interested in ﬁnding a job or starting a business in

59 TA I S EI A NN UAL R E POR T 2 0 2 3

pioneering corporate group contributing to the development of a resilient society where people can live afﬂuentand cultured lives,” and consider that it is our crucial duty
to contribute to regional revitalization and development
through our business activities.
YOSHITAKA: While there is a strong public perceptionthat “measures to mitigate climate change equals decarbonization,” and thus interest in clean energy tends todominate, adaptation to climate change is also a signiﬁcant global challenge. To achieve carbon neutrality is agoal for the future—2030 or 2050—but natural disasters
due to climate change are happening right now, andaccordingly a balanced approach that also includes
disaster prevention and recovery initiatives is essential.
Even in the case of renewable energy initiatives, each
local government is seeking not only reduction of electricity cost but also solutions that can serve as
infrastructure during disasters, as part of its BusinessContinuity Plan (BCP). I believe that the expertise ofconstruction companies is indispensable not only for theenergy sector but also for comprehensive urban planningthat anticipates natural disasters.
The selection criteria of local governments for
Decarbonization Leading Areas which I mentioned earlieremphasize how to incorporate energy-saving and energycreating measures into existing facilities and evolving suchfacilities. I believe your company’s environmental technologies, including “Green Renewal ZEB,” offer valuable
solutions for local governments, both from the perspectives of carbon neutrality and BCP in times of disaster.

(Plan-Do-Check-Act) cycle, including the identiﬁcation andassessment of environmental risks, the implementation ofpreventative and mitigative measures, the veriﬁcation of
their effectiveness, and disclosure of the information.
YOSHITAKA: Historically in Japan, there has been anattitude that all we have to do is to comply withenvironment-related laws and regulations. However, froman ESG perspective, compliance with environment-related
laws and regulations falls under Governance (G). To strive
for more ambitious goals for the future is part of theEnvironmental (E) aspect. Therefore, I think it iscommendable that you are establishing a mechanism forenvironmental due diligence. I look forward to continuing tomonitor your company’s progressive initiatives.

the IT or environmental ﬁelds rather than in joining a large
company, and have high expectations of being able to dosomething new, demonstrate their abilities, and contributeto society. My biggest concern is the gap between thevalues of sustainability natives like them and our generation. I believe that if companies continue to manage

About the Taisei Group

Taisei Group’s Growth Strategy

themselves with being tied down to conventional values,
they will eventually lose the interest of these students,
making it difﬁcult to secure human capital in the future.
TANIYAMA: I share similar concerns. I was deeply
involved in the formulation of TAISEI VISION 2030 which I
mentioned earlier, as the then Chief of Corporate
Planning Ofﬁce. The focus was on solving sustainability
issues through our business, and we had an in-depth
discussion how to link this to the power to generate
capital for growth for the Taisei Group over the long term
and continuously. It is important to equate corporate
value with indicators such as net sales and proﬁts. But,
not only do we have to emphasize such short-term
corporate value, but also do we have to take various
measures by backcasting what our future goals shouldbe, in more long-term; otherwise, sustainability natives
like the ones you mentioned may not join our Group.
TAISEI VISION 2030 embodies the idea that one major
issue is to seriously address both business challenges
and sustainability.
Additionally, our Company established the Taisei Group
Philosophy “to create a vibrant environment for all
members of society” in 1990. More than 30 years havepassed since this Philosophy was established, and I
believe it serves as both a guide and raison d’être thatthe current Taisei Group’s sustainability management
should aim at.
YOSHITAKA: The term “ESG investment” was ﬁrst introduced as an ofﬁcial phase at the United Nations in 2006.
Financial institutions had been conducting screening toprevent negative societal impact even before that time, but
the idea that ESG investment shall be linked to economic
growth became common between 2010 and 2015, following
the global ﬁnancial crisis, “the collapse of Lehman Brothers.”
This means your company had integrated sustainability into
its management even before such an approach became
mainstream globally. That is probably why your company
was able to celebrate its 150th anniversary this year.

Taisei Group’s Challenges and Expectations
YOSHITAKA: How do the ESG initiatives of yourcompany distinguish themselves from those of yourcompetitors in the construction industry? As the materiality
in this sector tend to be quite similar across companies, Ioften ﬁnd it hard to identify a unique angle. It is crucial forthe investors to see that there are distinct strengths andunique strategies identiﬁed as the character of the TaiseiGroup, even when the Company’s a identiﬁers are masked.
I expect the Taisei Group to demonstrate such differentiatedinitiatives and public disclosures. Also, it is essential topresent not only your current initiatives but also a roadmap
and future vision outlining further evolutions and steps. Inthe current circumstances that various sustainability
issues such as climate change and geopolitical risks are

Sustainability Section

Governance Section

Data Section

How are your diversity initiatives? I am currently
researching the correlation between companies
advancing in climate change countermeasures, TCFD
disclosures, and other initiatives, and those that areworking to close the gender gap. Reports from overseas
suggest a correlation exists. There is also data indicatingthat when female participation in management increases
and diversity is enhanced, innovation in climate change
countermeasures and technology is more likely.
TANIYAMA: As we believe that a major point for
promoting active participation and advancement of
women in the workplace lies in changing men’s attitudes,
we ensure that male employees take childcare leavefollowing giving birth by their spouses.
YOSHITAKA: The term “women’s participation andadvancement” is often misunderstood as telling women
to “work more.” While it is natural for women to work, thecurrent situation is that it is difﬁcult for them to fully realize
their potential unless men share responsibilities as you
pointed out. It is said that it is crucial to close the gender
gap. It may appear irrelevant at ﬁrst glance, but inconstruction industry, which has a strong “male society”
image, I believe that diversity initiatives could potentiallylead to solutions for environmental issues.

complicatedly tangled up, the Ministry of Economy, Tradeand Industry has initiated a program to select and recognize companies, as the “Sustainability Transformation
Brands (SX Brands),” that effectively integrate sustainability
issues and societal needs into their business strategies
and can enhance their corporate value. I serve on theevaluation committee for this program, and I fully believethat the Taisei Group has the potential not only to elevate
its sustainability management and recognized under thisprogram, but also to solve this country’s environmental
and social issues and to lead sustainability thereof. I havehigh expectations that the Taisei Group will accelerate its
initiatives for the future.
TANIYAMA: Thank you for your valuable advice and yourtime today.

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