︱

Foundation of Sustainability Management ︱SocialQuality Control
Basic Principle

Initiatives for Ensuring Quality

Group Companies withISO Certification⨋ Management System

Management
Meeting

Approves annual activity
plan for QMS and EMS

EachdivisionOnce a year

Scope of ISO 9001 Certification

https://www.sanki.co.jp/en/csr/social/quality/
Our Response to
ISO 9001 and ISO 14001
Noncompliance (FY2019)• C
 onducted ethics seminars forrelevant divisions

P. 46

General manager of the Quality and Environmental Management Office
Company-wide QMS andEMS Office Conference

3 companies:
Sanki Engineering Co., Ltd.
Sanki Chemical Engineering &Construction Co., Ltd.
Kankyo Service Co., Ltd.

• P
 enalty for directors (reduced
compensation)

Quality Policy and Environmental Policy
Reports on Company-wide activities
and decisions on plans
Once a year

• I SO 14001

• V
 oluntary suspension of ISO 9001
and ISO 14001 certifications

Top Management (President)

ISO
Promotion
Conference

2 companies:
Sanki Engineering Co., Ltd.
Sanki Kankyo Service Co., Ltd.

Quality Control▍Quality and Environmental Management System• I SO 9001

SocialWe have integrated and implemented QMS (ISO 9001) and EMS (ISO 14001) at eachdivision in the Facilities Construction Business, Plants & Machinery Systems Business,and Environmental Systems Business.
Risk management is conducted in advance of the actual work for construction
and production to maintain and enhance quality. We also recognize that responding
to problems and complaints promptly and appropriately is a fundamental aspect of
quality management, and we take actions to consistently raise the standards of ourmanagement system.
In fiscal 2019, the quality management of the division in charge of a SankiEngineering Group project was found to be out of compliance. Activities put in place toprevent recurrence are now practiced as standard procedure to maintain and improve
our quality management system.

Foundation of Sustainability Management

We will raise customer satisfaction and deliver new value for society by fully demonstrating the Sanki EngineeringGroup’s comprehensive capabilities and proposal-making capabilities to provide products that meet customer needs ineach business area and for high-quality systems.

Environmental Management System

Company-wide QMS (Sustainability Promotion
Division)and EMS Office

Divisional managers(heads of sections, general managers of the headquarters, general managers of research
centers, heads of business divisions, presidents of branches and branch offices)

Divisional
Management Review

Reports on divisional activities andformulation of plans (twice a year)

Quality and Environmental Management Officer
Divisional QMS and EMS Office

Sales, design, production, construction, and office duties⨋ Major Management System Strengthened in Fiscal 2022

The Facilities Construction Business worked on reducing the workload of site operations
as well as on improving design and construction quality in accordance with therevision of operational flow carried out in fiscal 2021. These efforts helped improve
design reviews, clarified quality targets, and led to fewer problems and complaints.
Furthermore, we strengthened the quality management system by reviewing and

SANKI REPORT 2023

55

︱Foundation of Sustainability Management ︱Social︱Quality Control⨋ Initiatives for Improving Quality by Promoting DX

The BIM Promotion Center leads BIM efforts within the Company and subcontractors
and in improving the usage rate of BIM-linked software as well as the participation
rate in BIM education. In fiscal 2022, we conducted in-house education to encourage
the use of BIM. We also implemented the M&A of a company that has provenexpertise in BIM.
In April 2023, we established the DX Promotion Division. We will advance theapplication, research, and development of digital tools for planning, construction,
and acceptance inspections to save labor in construction work while improving
construction quality by alleviating the burden of management operations. By bolstering
the application of DX to operations across the Company, including construction sites,
we will establish more comfortable workplace environments.

⨋ Sharing Information and Preventing the Occurrence of Problems andComplaints

In our work to improve construction quality, we conduct a customer satisfaction survey
at the completion of construction work and reflect the feedback in our operations.
In fiscal 2022, we received highly positive feedback from about 92%* of the 653
respondents. Looking ahead, we will continue to incorporate customer opinions into
our operations to enhance construction quality.

A poster for raising awareness of
preventing problems and complaints
is created each month and displayed atworksites.

*C alculated by regarding the following
responses as “highly positive feedback.”
Facilities Construction Business: scoreof 4 (“Somewhat satisfied”) or higher
out of 5; Plants & Machinery Systems
Business: score of 3 (“High”) out of 3;
Environmental Systems Business: scoreof 70 points or higher out of 100.

We are working on improving quality throughout the construction process from planningand design to completion. In design, we identify and resolve issues at an early stage toensure quality by enhancing design reviews and improving the design accuracy.
In technological management, we facilitate onsite operations after the start ofconstruction work by holding commencement discussions to decide on construction
methods, procedures, and policies that result in higher quality and productivity.
Moreover, we avoid falsifications and deficiencies in quality across all processes by
having line staff and the Quality Control Center conduct stringent checks and followups. We will continue to improve quality and hand down technical expertise by having
highly skilled quality assurance administrators and technical experts conduct audits
during and after construction, implement quality confirmation and corrections, andmentor junior employees.
As a result of the revision of our quality manual and standards and reviewing ofoperational processes undertaken in fiscal 2021, the number of design reviews doubled
in fiscal 2022. We also strengthened risk assessments at the upstream stage. These
efforts have led to fewer problems, complaints, and corrections after construction andhave helped prevent profitability from deteriorating.

⨋ Operational Support to Improve Productivity and Maintain High Quality

SANKI REPORT 2023

GovernanceDigital Tools Developed by the
Sanki Engineering Group• Automated robotic air flow
meter

Automatically measures the air flowfrom air conditioner vents.
Expected to reduce manhours by
75% compared to the conventional
process.

Air-flow measurement by an automated robot

Quality check by a quality assurance
administrator▍Initiatives on Design and Technical Operations at Construction Sites
Upon Receiving Orders

The Design Division’s Design Center and Quality Control
Center lead the design reviews to confirm whether therequired level of quality is met, by scrutinizing construction
operations from the aspects of quality and cost. Also, design
drawings will be more accurate.

Initiatives for Ensuring Quality at Construction Sites

56

Social⨋ Initiatives for Design and Technical Operations

Design Review

Sanki Engineering implements the Smile Site Plan, intended to create a rewarding
workplace that encourages staff to focus on their tasks by reducing workloads atconstruction sites and creating effective working environments, to satisfy bothcustomers and the Company while maintaining high quality.
Under the Smile Site Plan, we are leveling operations by establishing and effectively
implementing an operational support system for the processes of sales, design,
procurement, construction management, and quality management to improve
productivity while maintaining high quality. In an effort to simultaneously improve
productivity and maintain high quality, we particularly emphasize design verificationand pre-construction reviews before starting construction work, to raise productivity
and avoid quality risks and to prevent rework, problems, and complaints. In addition,
we are promoting digitalization, including the adoption of BIM, to further boost
productivity.

Environment

Quality Control⨋ Understanding Customer Satisfaction and Reflecting Feedback

G

SocialWe accumulate and share our quality-related experiences across the Company bymeans of technical documents in order to prevent the occurrence of problems andcomplaints or, in the event they do occur, to handle them quickly and effectively.
We strive to prevent recurrences by distributing information about problems andcomplaints to construction engineers through a flash bulletin, a weekly bulletin (aweekly meeting of the Problems and Complaints Review Committee, which is also
attended by Group companies in and outside Japan), and a monthly bulletin, which
not only reports the occurrence of issues but also discusses their causes, corrective
measures, and preventive measures. In fiscal 2022, we revised the format for the flash
bulletin and strengthened our engagements to identify the root cause of issues toimplement the necessary measures.
In addition to efforts to share information, quality risk assessments are conductedby the Quality Risk Subcommittee set up under the Risk Management Committee. We
also endeavor to prevent problems and complaints by identifying risks that may affectquality and quickly taking action.
We set a target to achieve zero problems and complaints attributable to us in theongoing construction, and in fiscal 2022 we reduced them by 25% (down 18 cases)
year-on-year thanks to various measures for providing onsite support. In fiscal 2023, weplan to reinforce the analysis and feedback procedure of our Quality Control Center toreduce initial errors.

S

Foundation of Sustainability Management

standardizing the format for function test results provided to customers.
The Plants & Machinery Systems Business advanced its initiative to create a databaseof construction undertaken by the Company to boost the effectiveness of its quality
control. As for the Environmental Systems Business, it continued to improve thechecking system for each process, including stricter design reviews.

E

Quality Risk Assessment
The Quality Risk Subcommittee of the Risk Management
Committee assesses quality risk. Divisions related totechnology and the Quality Control Center set the quality
targets and identify and address quality risks.

At Start of Construction
Commencement Discussions
Divisions related to technology, onsite
managers, and divisions related tobranches and branch offices determine
the construction method (procedures)and quality targets. The Quality Control
Center checks aspects concerning quality,
construction work, costs, processes, andsafety; identifies items requiring changes in
specifications and plans; instructs on concretemeasures; and considers design changes.

During Construction
Construction Audits
Confirmation of construction work, including
design changes, is led by divisions related totechnology, onsite managers, divisions related
to branches including branch offices, and the
Quality Control Center.
Completion Audits
Check whether quality targets for the design
are being achieved and offer instructions forcorrections as needed.

Enhancing Our Technologies⨋ Technical Awards for Improving Construction Methods andOperational Processes
P. 68
Promoting the Smile Project

We have been presenting awards for excellent ideas that improve operational
processes, such as raising efficiency, in addition to ideas that improve construction
work. In fiscal 2022, we received 2,087 applications.

SANKI REPORT 2023

57

︱

︱

SocialFoundation of Sustainability Management ︱Quality Control

Occupational Health and Safety⨋ Fostering Human Resources to Sustain Our Technological Competence

Basic Principle
Our construction site operation relies on the organic connection of the many people working there. Occupational
health and safety are the foundation for the Sanki Engineering Group and are of the highest priority. Under the SankiEngineering Group Basic Health and Safety Principles, we partner with subcontractors in a range of health and safety
activities.
Basic Health and Safety Principles

https://www.sanki.co.jp/en/csr/social/safety/
Training for new employees▍Number of Personnel with Quality-Related Qualifications (as of April 1 of each fiscal year)
FY2022
Qualification

Initiatives for Ensuring Occupational Health and Safety

FY2023

Consolidated

Nonconsolidated

Consolidated

92

102

80

93

1,125

1,277

1,061

1,225

Architect

37

42

38

42

Facilities construction architect

201

210

179

190

Electrical engineers

162

236

150

230

Professional engineers
Construction managing engineers (civil works,
construction, electrical construction, pipe-laying works)

Nonconsolidated⨋ Management System

21st conference on electrical construction
quality

We conduct risk assessment and analysis that correspond to the specific circumstancesof accidents that occurred in the previous fiscal year, as well as to social and industrial
trends, in order to formulate annual guidelines for safety and health activities. By
formulating a Company-wide health and safety activities plan based on theseguidelines, we seek to visualize our PDCA cycles, including the analysis of risk factors
and implementation of remedial and preventive actions.

26

34

24

36

First class instrument engineers

297

306

284

294

⨋ Key Items Implemented in Fiscal 2022

Fire protection engineers

699

783

662

722

1,635

1,921

1,529

1,806

As part of our efforts to create comfortable working environments, we updated our
uniform in June 2022. The new uniform was tailored with consideration for the various
needs of all employees working at construction sites, such as fabric type and pocket
location, which we identified through a questionnaire.
To reduce the number of accidents, we conducted all-division safety patrols at
22 construction sites and increased training opportunities for safety managers andworkers. In fiscal 2022, however, the number of accidents increased by two from theprevious year. Many of them were caused by inadequate operational procedures(insufficient risk assessment) or human error.
In view of the accidents in fiscal 2022 and the required responses to the Revised
Labor Standards Law scheduled for enforcement in 2024, we will work in fiscal 2023 on
implementing appropriate risk assessments based on job reports and work proceduresand provide education related to the revised law.

Note: Cumulative figures are shown for all qualifications.
▍Major Skill Development Activities for Fiscal 2022
Initiatives

Initiatives
at the Sanki
Techno Center

Initiatives forpassing ontechnology

Initiatives
for Groupcompanies andsubcontractors

Training

Description of Training

Results

Training for new employees• Seminar for new employees, basic skills training

64 participants

Correspondence course for attaining
qualifications• Preparation for qualification exams for construction
managing engineers and fire protection engineers

125 participants

Training based on operational experience
Third (fourth) year in construction work
Sixth (seventh) year in construction work
Ninth (tenth) year in construction work

• 3- to 5-day training sessions that are held 2 to 5 times per
year at 3-year intervals• S tandardized group-based training according tooperational experience• Technical training using actual equipment and mock-ups• D rills for preventing problems and complaints required inconstruction management

On-the-job training by technical experts• Practical on-the-job training offered by technical experts
selected from all branches who participate in onsite
commencement discussions and construction audits

25 technical experts made 1,343 site visits(cumulative total)

Conference on electrical construction
quality• Test of practical skills for electrical technicians fromsubcontractors of all branches, written exam based on pastcases. Participants receive the Sanki Engineering-certified
Class A Electrical Engineer qualification

17 participating technicians from 18
subcontractors• C ase studies at liaison meetings held at branches andbranch offices

Number of sessions
Tokyo branch: 12, Kansai branch: 25,
Chubu branch: 11, Kyushu branch office:
43, Hokkaido branch office: 5, Chugoku
branch office: 10, Tohoku branch office: 12,
Hokuriku branch office: 3

Explanation of problems and complaints

Held 8 times

114 participants

Workplace safety
poster

Occupational Health and Safety

Qualified managing engineers

New uniforms

SocialChief electrical engineers

Foundation of Sustainability Management

The Sanki Techno Center provides training to help employees acquire basic skills, brushup on their skills, and attain qualifications. New employee training was conducted inperson by implementing tighter infection prevention measures in the accommodationarea, lecture area, and experience area. We also conduct training for construction
managers every three years, with content corresponding to number of years ofexperience. We develop the skills of our engineers through hands-on practice and drills
using actual machinery and facilities at the Sanki Techno Center.

Workplace healthposter

Outline of Activities in Fiscal 2022: Policies on Health and Safety Activities
Safety
Slogan: Making safety a reality. Each one of us is in charge—let’s
keep up the Stop & Check practice!

Key Actions

1. Promote physical, real, and onsite hazard prediction activities◦ Periodic accident prevention campaign◦ Focused patrols that address accident tendencies

2. Visualize the Three as One activity◦ Create a system where construction sites, subcontractors, and Sanki Engineering
cooperate to prevent accidents; promote relevant activities◦ Revise criteria for health and safety awards◦ Develop the Sanki Occupational Health and Safety Management System

3. F urther enhance knowledge, awareness, andunderstanding◦ Increase training opportunities for safety managers
and workers◦ Brush up original educational programs for employees
at construction sites◦ Systemize online health and safety training◦ Add content to the health and safety video⨋ Collaborating in the Industry through Open Technology

Construction instructions for the Aluminger®* aluminum refrigerant piping method
developed by Sanki Engineering have been made available to the Aluminum Plumbing
Equipment Association. By promoting the adoption of our method, which reduces
labor by 25% compared to conventional methods, we are contributing to standardizing
environmentally sound technology across the entire industry.

58

SANKI REPORT 2023

*A new construction method whereby
lightweight aluminum pipes, insteadof copper pipes, are connected withspecialized tools to save labor.

HealthSlogan: Create comfortable workplaces together for healthier minds and bodies

Key Actions

1. Implement measures on health and productivity management◦ Reduce long working hours, encourage employees to take days off◦ Take action against lifestyle-related diseases, strengthen activities to support
more exercise

2. Implement mental health measures◦ Create a system for providing mental health care

SANKI REPORT 2023

59

︱

︱

SocialFoundation of Sustainability Management ︱Occupational Health and Safety

Supply Chain⨋ S afety Conventions and Safety Patrols

Basic Philosophy
The Sanki Engineering Group Code of Conduct and Action Guidelines stipulate that we promote free market competitionand engage in fair, equitable, and transparent transactions with all business partners. Moreover, under the Procurement
Policy, Human Rights Policy, Multi-Stakeholder Policy, and Environmental Policy, we endeavor to build trust with ourbusiness partners to jointly provide high-quality systems and services to customers.

⨋ H ealth and Safety Training

Safety patrol by the president

Instructional video on preventing falls to beviewed before using full harness-type equipment

114

(91)

In-house health and safety training

412

(0)

Position-based training for young and mid-career employees

111

(8)

536

(536)

Other client-focused training
Total● Frequency rate for Sanki Engineering ● Average frequency rate for the general construction industry*3◆ Severity rate for Sanki Engineering    ◆ Average severity rate for the general construction industry*3■ Number of accidents

1.69
1.09

0.29

0.30
0.10
0.00
1
2018

60

1.11

SANKI REPORT 2023

0.03
11
2019

1.30

1.39

0.44

0.44

3
(Year)

0.24
0.03

2020

3

0.41
0.11

2021

1.47
0.58

5

0.22
0.02

2022

（FY）

and Our Procurement Management System
The procurement cost of materials and equipment used by Sanki Engineering
for construction work is approximately 46.0 billion yen, with domestic suppliers
representing the source for nearly all procurement.
The role of the procurement department includes contributing to profit by reducing
costs and supporting orders, building and managing procurement databases, andcollecting and disclosing information on material and equipment price trends anddelivery dates. As the prices of materials and equipment surged and delivery delays
continued due to global factors, including the COVID-19 pandemic and semiconductor
shortage, the department raised the level of coordination with construction sites,
thereby facilitating advance order placement and prompt in-house sharing of delivery
information, among other efforts that have helped prevent or mitigate procurement risks.
⨋ Thoroughly Ensuring Fair and Equitable Transactions*Limited to training by in-house
instructors, not including training at
designated educational institutions

We engage in fair, equitable, and transparent transactions with all business partners
in accordance with the Sanki Engineering Group Procurement Policy. Moreover,in the Multi-Stakeholder Policy, the representative director and president declares
his commitment to the Partnership Building Declaration. In the fiscal 2022 tradeenvironment shaped by marked increases in labor, raw material, and energy costs,
we strengthened risk management by appropriately reflecting costs to suppliers andpreventing violations of the Antimonopoly Act concerning the “abuse of dominantbargaining position.” Furthermore, our basic contract includes provisions on productsafety, quality control, intellectual property, legal compliance, and the exclusion of antisocial forces.

⨋ Accidents in Fiscal 2022

▍Number of Accidents, Frequency Rate*1, and Severity Rate*2⨋ Overview of Our Procurement Structure for Materials and Equipment

Online health and safety training

3,400 (2,444)

In fiscal 2022, there were five accidents, an increase of two from fiscal 2021. A detailed
analysis of the circumstances of these accidents revealed they were mostly the resultof shortcomings in operational procedures, so a continuous effort will be required topromote thorough compliance with the rules and raise the level of our activities by
sharing information.

https://www.sanki.co.jp/en/csr/environment/management/

Scope: S anki Engineering construction
sites (Sanki Engineering Co., Ltd.
and business partners)
Number of accidents:
interrupted work for one day or longer
Period: The data compilation period waschanged from the calendar year
to the fiscal year starting withfiscal 2020 results.
*1 Frequency rate: Calculated as thenumber of deaths and injuries causedby accidents in the construction site
per one million working hours, thisfigure indicates the frequency withwhich accidents occur.
*2 S everity rate: Calculated as thenumber of lost workdays caused by
accidents in the construction site per
one thousand working hours, thisfigure indicates the severity of theaccidents.
*3 S ource: Survey on Industrial
Accidents, Ministry of Health, Laborand Welfare.

⨋ Operation of Internal Whistleblowing Hotlines

In order to prevent improper transactions, we operate a Corporate Ethics Hotline that isavailable for anyone to use. Information is provided on the Company website.

Procurement Policies (excerpt)
1. F air Market Competition andTrading
2. Protection of the Global
Environment
3. C ontribution to Society throughBusiness Activity
4. Respect for Human Rights
5. I nformation Security Risk
Management
6. Development of Partnerships

Major Components of thePartnership Building Declaration

Supply Chain

2,227 (1,809)

Health and safety training for foremen

Sanki Engineering Group Environmental Policy

https://www.sanki.co.jp/en/csr/social/human-rights/

https://www.sanki.co.jp/en/csr/governance/multistakeholder/

SocialNumber of Participants (from Subcontractors)

Special education and other courses

Sanki Engineering Group Human Rights Policy

Building Fair, Equal, and Transparent Business Relationships▍Number of Participants in Health and Safety Training (Fiscal 2022)*
Type

Multi-Stakeholder Policy

https://www.sanki.co.jp/en/csr/social/scm/*Thai Sanki Engineering & Construction
Co., Ltd.

For Group employees and for staff employed by subcontractors, Sanki Engineering
provides training led by in-house instructors or at designated training institutes. When
accepting new foreign national technical intern trainees from their employers, we
use standardized criteria for ensuring safety at all sites and carry out interviews by our
employees to comply with these criteria. We also organize joint training sessions with
the Sanki Health and Safety Cooperative Association.
In fiscal 2022, as in the previous year, we focused on conducting special training
sessions using full harness-type equipment with the aim of preventing falls, in view ofregulatory revisions. Sessions involving skill practice were conducted face to face bythoroughly implementing COVID-19 prevention measures. The mode and methods oftraining are determined by considering the risk of serious accidents and the importanceof the topic. Online training is conducted to mitigate the burden of trainers byconnecting multiple sites.

Sanki Engineering Group Procurement Policy

Foundation of Sustainability Management

Every fiscal year, each branch, branch office, and division of Sanki Engineering holds safetyconventions at 11 domestic sites and 2 overseas sites in June, the preparatory month for
National Safety Week. Subcontractors from around the world participate in the convention.
Executive officers from Japan, including our president, attended the convention,
which took place at one of our sites in Thailand*. Employees and subcontractors who
demonstrated outstanding efforts and achievements in safety management received
awards. We also conduct special joint safety patrols, during which the president anddirectors tour 26 construction sites in the summer and before and after year-end.

• Co-existence and co-prosperity
across the entire supply chain
and collaborations beyond scale
and affiliation- S trengthening of relationship via
the Health and Safety Cooperative
Association- O pening of the training facility for
public use and support for humanresource development• Compliance with the Act on the
Promotion of Subcontracting
Small and Medium-sizedEnterprises- Appropriate determination ofprice, and negotiations- Considerations for payment terms- Not demanding the free transfer ofintellectual property rights- P reventing any negative impact
associated with work-style reformor other factors

P. 84

Whistleblowing System⨋ Promoting Green Procurement

As part of our environmental management, Sanki Engineering procures goods thatcomply with Japan’s Act on Promotion of Procurement of Eco-Friendly Goods andServices by the State and Other Entities (Green Purchasing Act) and confirms theaggregate result.

Major Regulation-Compliant Goods
Procured by Sanki Engineering• Lighting equipment• Transformers and condensers• HVAC equipment

SANKI REPORT 2023

61

︱Foundation of Sustainability Management ︱Social︱Occupational Health and Safety⨋ R aising the Efficiency of Procurement Operations⨋ Training for Procurement Staff⨋ Exchange of Views with Business Partners

We visit our major business partners and hold meetings to exchange opinions. We
select the partners we visit each year according to their relative importance to ourbusiness and the monetary value of transactions. In fiscal 2022, we visited 26 equipment
and materials manufacturers and specialized construction companies to exchange
opinions. The discussions covered a wide range of topics, including sustainability
initiatives, price and delivery date information, and their requests to Sanki Engineering,which will be incorporated into future procurement activities.

Main Themes of Online Study
Sessions, Frequency, andCumulative Participation(Fiscal 2022)• Basics of procurement,
accounting, and sustainability
issues including theenvironment and human rights
Frequency: 21 sessions
Participation: 357 (100%*)• Critical thinking and selfdevelopment, communication skills
improvement, and business skills
Frequency: 40 sessions
Participation: 274 (100%*)

Total

Frequency: 61 sessions
Participation: 631 (100%*)*Attendance rate among target
employees

Main Topics in the Opinion
Exchange Meeting (FY2022)• T rends in prices and projectdelivery schedules• Requests to distributors• T ransactions with
Sanki Engineering, etc.

⨋ Providing Assessment Feedback to Business Partners⨋ Joint Improvement Activities with Subcontractor Groups

Sanki Engineering has established subcontractor groups at each branch, branch
office, and division as part of our effort to bolster our construction system. In addition
to monthly liaison meetings, we implement joint labor-saving projects and holdseminars to enhance technical skills and thoroughly enforce quality management andsupervision of safety and health at construction sites. Moreover, we review the statusof safety and health management and offer guidance by dispatching employees to62

SANKI REPORT 2023

We established the Sanki Super Meister System to certify and commend foremen of Group
subcontractors whose superior construction techniques have significantly contributed toelevating the quality of our construction work and also the Sanki Best Partner Program
to commend subcontractors who have significantly contributed through their superior
levels of management and construction skills, and for having consecutive years of zeroaccidents. We provide subsidies designed to encourage further quality improvements to
subcontractors to which the certified foremen belong, from the standpoint of promoting
consistent contributions to quality improvements at construction sites.
⨋ I nitiatives for Maintaining and Upgrading the Technical Skills of

Subcontractors
To support subcontractors in the development of their technical skills, we subsidize theacquisition of qualifications, and we have been publicizing the system during Central
Safety and Health Committee meetings to encourage its use. We have promoted thecreation of a mechanism for enhancing technical skills based on collaboration between
Sanki Engineering and subcontractors, in which the Sanki Techno Center is also used totrain new hires and mid-career employees of subcontractors. Furthermore, as part ofour technical training program, new hires at Sanki Engineering receive guidance from
employees of subcontractors.

P. 60

Governance

Number of Sanki Super Meister
Award Recipients• FY2021: 9• FY2022: 8
Number of Sanki Best Partner
Recipients• FY2021: 168• FY2022: 164

Awards ceremony

Technical skills training by a subcontractor⨋ P roviding Support to Stabilize the Management of Subcontractors

We revised the terms of payment to subcontractors with capital of under 40 million
yen in fiscal 2019 and switched to making all payments in cash. Additionally, we haveshortened the payment site for electronically documented payables for suppliers,
including subcontractors with capital of at least 40 million yen from 120 days to 60 days
starting in fiscal 2022. This is one of the financial and capital policies in the Medium-Term
Management Plan “Century 2025” Phase 3.

VOICE

To raise quality and improve operations across the supply chain, we annually survey
the status of our business partners and, as part of this initiative, assess their safety
management. We pay visits to provide them with feedback on the assessment results
and exchange information on improvements as needed to enhance their safety
management capabilities.

Social⨋ Awards Programs• CSR procurement• Sustainability initiatives

Environment

Supply Chain

Strengthening Cooperation with Business Partners*A system in which a procurement
department handles everything from pricenegotiations to ordering operations.

G

SocialWe provide monthly learning and presentation opportunities for procurement staff topromote appropriate procurement activities and enhance their purchasing, negotiating,and management skills. We also strive to develop their competence and knowledge
through support as needed for the obtaining of registered qualifications for certified
procurement professionals, construction business accountants, and fundamental
information technology engineers, apart from education on fair trading and respect forhuman rights among other compliance and sustainability issues.

Procurement WEB

provide safety and health education as well as courses on obtaining qualifications and by
conducting joint patrols.
In July 2022, the Sanki Health and Safety Cooperative Association held block
meetings, with the association divided into eastern (seven cooperatives) and western(four cooperatives) blocks. It also held a national conference in January 2023. These wereattended by a total of 26 employees from the Group and 31 from subcontractor groups.
Sanki Engineering directors, including our chairman and president, also attended themeetings and stressed the importance of maintaining and improving safety awarenessthroughout the Group, including business partners. Led by subcontractors directly involvedin construction, the meeting is expected to raise awareness about disaster prevention.

S

Foundation of Sustainability Management

As part of our work style reform initiatives, the Procurement Division is focusing on
raising the efficiency of procurement operations in the procurement and technicaldepartments at each site of the Facility Construction Business by encouraging
the adoption of a centralized ordering method based on exchanging data withmajor business partners and with a one-stop work-sharing* system that handles
everything from price negotiations to ordering operations. In fiscal 2022, theProcurement Division widened the range of its centralized order placement andapplied the one-stop work-sharing system to more business bases, thereby further
easing workloads and improving productivity at construction sites.
Moreover, we digitized some operations by introducing online systems for
placing orders to suppliers and allowing them to issue progress billings. Group
companies began using these functions in fiscal 2022. As we had previously
moved our own billing system for suppliers to the cloud for greater convenience,
this meant that by fiscal 2022, 95% of all orders made by Sanki Engineering Co., Ltd.
were processed electronically.
We continue to promote digital transformation for more efficient procurement.

E

General Level of Safety Management Skills Raised
Sanki Engineering has been continuously and proactively supporting the activities of the Sanki
Health and Safety Cooperative Association across Japan. We feel that the visualization of Three as
One, a key safety practice that we place particular importance on at construction sites, has beenrealized through close cooperation between onsite workers, subcontractors, and Sanki Engineering.
In response to construction site requests, Sanki Engineering has been organizing a workshop on first
response to accidents, helping workers raise their safety management skills across the board.
Mitsuhisa Takayama

Chairman, Hokkaido Sanki Health and Safety Cooperative Association President, Pipetech, Inc.

Health and Safety Training

SANKI REPORT 2023

63

︱Foundation of Sustainability Management ︱SocialHuman Rights

Human Resources
Basic Philosophy

In April 2022, the Sanki Engineering Group established the Sanki Engineering Group Human Rights Policy. Under thepolicy, we will respect the human rights of all people in all our business activities, including throughout the supply
chain, eliminate discrimination and acts that undermine individual dignity, and conduct human rights due diligence(identifying, preventing, and addressing impacts on human rights).

Recognizing that human capital is the most important management resource for a company’s existence and stable growth, we believethat securing and developing human resources is critical and spare no expense to invest in our personnel as the Company’s future. Withthe “pursuit of happiness for colleagues” identified as one of our material issues and under the management philosophy of “placing
significance on communication and mutual respect,” we endeavor to create workplace programs and environments in which all
employees grow with the Company, respect individuality, and are able to succeed and thrive.

Sanki Engineering Group Human Rights Policy

https://www.sanki.co.jp/en/csr/social/human-rights/

Sanki Engineering Group Code of Conduct and Action Guidelines

https://www.sanki.co.jp/en/csr/policy/conduct-code.html

Smile Work Guideline (Workplace Environment and Human Resource Development)

https://www.sanki.co.jp/en/csr/social/smile-project/
Multi-Stakeholder Policy

Sanki Engineering Group Human Rights Policy

https://www.sanki.co.jp/en/csr/social/human-rights/

https://www.sanki.co.jp/en/csr/governance/multistakeholder/

Human Rights Promotion System
The Risk Management Committee (Compliance Risk Subcommittee) identifies andmonitors human rights risks among the managed risks while at the same timestrengthening the promotion system.

Sanki Engineering’s Human Resource Strategy andManagement System⨋ Human Capital Strategy

Whistleblower Hotline and Consultation Service for
Human Rights Issues

We provide training and other opportunities to ensure that all employees have a goodunderstanding of human rights. Employees who participated in the training held in
fiscal 2022 learned about human rights initiatives and gained a deeper respect for theinternational human rights standards. The Sustainability Handbook, containing ourpolicies and important explanations, is distributed to all Group employees, helping toraise awareness of human rights.

Whistleblowing System

Representative Topics in the
Sustainability Handbook• Direct and indirect impacts on
the supply chain• M ajor human rights issues andillustrative cases• U N Guiding Principles
on Business and Human
Rights, OECD Guidelines forMultinational Enterprises on
Responsible Business Conduct

P. 85

Addressing Human Rights Issues in the Workplace
In addition to formulating guidelines for preventing harassment, we conduct
a workplace survey on compliance, including questions about harassment andhuman rights risks. We identify issues from survey findings and reports from
employees and continuously provide employee training to prevent and eradicate
harassment.

Addressing Human Rights Issues in the Supply Chain
In accordance with the Sanki Engineering Group Human Rights Policy and the SankiEngineering Procurement Policy, we conduct due diligence on human rights issues
relevant to the Group’s business activities at every level of the supply chain.

64

SANKI REPORT 2023

Compliance Training and the Handbook
for Cementing Respect for Compliance

P. 86
Compliance Workplace Survey• Developing Human Resources
We believe that the Company’s growth is driven by the various employee viewpoints
and values that reflect the rich variety of their experiences, qualifications, and attributes.
We therefore promote diversity in our workplace, properly evaluate the skills of eachindividual employee, and provide suitable education and training. We also strive toensure the diversity of core personnel as well as equal opportunities for promotion to
managerial positions.
• Improving Company Environment
We endeavor to create a working environment and a corporate culture in which all
employees grow with the Company, respect individuality and are able to succeed
and thrive. We support employee work-life balance and manage business with due
consideration for employee well-being. We also seek to raise employee engagement
by emphasizing communication with them.
⨋ Structure and New Personnel System

As one of the key measures for becoming the “Company of Choice” under the MediumTerm Management Plan “Century 2025” Phase 3, we launched a new personnel system
to improve employee comfort and satisfaction in April 2022.
The launch involved defining and streamlining the organization. We significantly
cut back the number of line managers and clarified their responsibilities so they could
better concentrate on their managerial tasks, and then we revised our compensation
system to reward employees for high performance in their own fields of specialization,
which in turn enabled us to place the right people in the right jobs. We plan to conduct
interviews in all branches and branch offices in fiscal 2023 to verify the effects of therevision, and we increased wages in fiscal 2022 by 4.6% (compared to fiscal 2021) toimprove employee working conditions.

• Utilize DX to balance improvements
in quality and productivity with
reduced working hours• Secure and nurture human resources
with due consideration for diversity

Indicators and Targets for Human
Resource Development
Scope: Non-consolidated•A ctive promotion of younger employees
Indicator

Target (April 2026)
Actual values as of April 2023
in Parentheses

Average ageof those inmanagerial
positionsManagers:
45.8 years old (46.4 years old)
General managers:
50.2 years old (51.8 years old)
Executive managers:
53.5 years old (54.1 years old)

Human Rights / Human Resources

Human Rights Training

P. 84• Reform of the personnel systemcentered on the active appointmentof young people and extension of
the retirement age

SocialA whistleblower hotline and consultation service for human rights issues are madeavailable for use by all employees of the Group as well as those at its subcontractors
and supply chain members, with the information posted on the Company’s website.
Reporters will not be placed at a disadvantage for consulting or reporting issues, andany personally identifiable information will be protected.

In the context of Phase 3 actions with new indicators and targets based on the Human
Resource Development Policy and Company Environment Improvement Policy, we areaccelerating work style reforms and securing, nurturing, and allocating diverse humanresources in line with our business strategy. Moreover, as stipulated in Multi-Stakeholder
Policy, we are committed to human capital investment and sustainably giving back tothem.

Measure for Phase 3:
Accelerate Work Style Reforms• Continuation of the Smile Project,
led by top management

Foundation of Sustainability Management

Basic Philosophy• A cceleration of diversity
Indicator

Target (April 2026)
Actual results for April 2023*1
in Parentheses

Ratio ofwomen inmanagerial
positions

16.4% (15.5%)

Ratio ofnon-Japaneseemployees

3.0% (2.5%)

Ratio offemaleemployees

1.7% (1.2%)

Indicators and Targets for Company
Environment Improvement
Scope: Non-consolidated
Indicator

Targets (FY2025) Results for
FY2022 in Parentheses

Employeesatisfaction
surveyMaintaining the ratio of
respondents who wantto keep working for theGroup at 90% or more*2

Rate ofMale: 50% (10.7%*3 )childcare leave Female: 100% (100%)
taken
*1 A
 ggregated on a different date from that for the
Employee Data on page 70.
*2 N ot conducted in FY2022. The FY2021 response
rate was 91.6%.
*3 4 4.6% of the Company’s own leave programs.

SANKI REPORT 2023

65︱

SocialFoundation of Sustainability Management ︱Human Resources

Ensuring Diversity in Human Resources and Promoting Careers⨋ R especting Diversity in Employment and Recruiting High-Level Human

Resources⨋ S ecuring Human Resources through the Return to Career Program

All workers

60.8

61.0

Regular workers*2

59.8

60.7

Part-time/fixed-term workers

51.8

50.9

⨋ C areer Change System

In 2019, we established new career types, namely the career-track position andoperational position, and introduced a system that allows employees to switch
between these career paths. Job relocation is excluded from the requirements for the
career-track position, and the system is designed to enable a wider range of employees
to thrive. In fiscal 2022 , four employees changed their career type for a work style that
better suits their particular stage in life.
⨋ Creating Workplaces for Persons with Disabilities

We continue to hire persons with disabilities and are working to create an environment
in which they can work comfortably over long periods. As of June 2022, theemployment ratios of persons with disabilities were 2.24% and 1.51% on a nonconsolidated and consolidated basis, respectively. As of June 2023, the employment
ratio of persons with disabilities was 2.28% on a non-consolidated basis. In recruiting,
we expanded our channels and at the same time matched applicants with eachdepartment and provided care upon acceptance.
⨋ Extension of Retirement Age and Post-Retirement Reemployment System

We have extended the retirement age to 65 as of April 2022. In conjunction with
the introduction of an optional retirement age system, employees will receive full66

SANKI REPORT 2023

Goals

Results in
FY2022*3

1. I ncrease the average
length of service forwomen by 10% ormore from April 2021

14.3 years(5.9% increase)

2. R aise the ratio of
women in managerial
positions*4 to theconstruction industry
average of 3%

2.5 %(1.6 percentage
point increase)

Our personnel system ensures equal opportunity as well as fair evaluation and treatment for
all employees while supporting employee initiatives for self-directed career development.
Individual interviews and a mentor system are introduced for younger employees.
Once a year, all employees fill in a Career Development Sheet and receive feedback
through an interview with their supervisors. To collect their opinions, we have anothersystem that allows employees to bypass their superiors and speak directly with the
Human Resources Department depending on the content of the sheet. Moreover, wehave several employee award programs, including the president’s commendation forboosting our technological capabilities and raising employee motivation, such as theBest Employee Award, Yano Technology Prize, and Award for Construction Method/
Operation Improvement, as well as other programs including long service awards (25and 50 years).

We maintain training systems associated with each career path, such as management
training, technical training, and training by field of expertise, in order to strengthen
specialized, technical, and management skills. We take advantage of the Sanki Technology
Center to conduct various training programs.

• Problem-solving seminars and opinion
exchange sessions for employees whoare hearing impaired• M anagement training to promote
understanding among managers• I nstalling lamps in all offices thatbear evacuation instructions forhearing-impaired employees in theevent of a disaster• Providing closed captioned
presentations during Web-based
training and financial results briefings

Mid-Career Employees

New employee training
Management Training• M entor system

Smile Work Guideline (Human
Resource Development
Guideline)

https://www.sanki.co.jp/en/csr/social/smile-project/

Awarding long years of service (25th year)

Executives

Leadership position training

Second-year training

Management candidate
training

Fourth-year training

Section chief training

Seventh-year training

Department manager training

New employee training
Qualification training

Safety Training

Safety experiential training
Corporate ethics training

Corporate Ethics Training

Mid-career staff training
Qualification training
Technical experiential training％

Improvement of Workplace
Environment• I ndividual interviews by
personnel managers in the thirdand fifth year of service▍Training Systems

Employment rate of persons with disabilities(non-consolidated) as of June 1, 2023

2.28

Governance⨋ E ducation and Training Systems

Younger Employees*1 Calculated in accordance with a provision
stipulated in the Act on the Promotion of
Women’s Active Engagement in Professional Life.
*2 Includes operational positions.
*3 A s of April 1, 2023. In the parentheses arechanges from April 1, 2021.
*4 A
 ggregated on a different date from that of thenumber of managers referred to on page 70.

SocialHuman Resources

Gender wage
gap

（%）

Consolidated

Action Plan Based on the Act ofPromotion of Women’s Participation
and Advancement in the Workplace
Plan period: April 1, 2021 toMarch 31, 2026
Scope: Non-consolidated

Environment

Personnel Systems Designed forYounger Employees⨋ Personnel System for Workplaces Where People Can Grow

https://positive-ryouritsu.mhlw.go.jp/(Japanese only)G

retirement benefits from age 60 to 65, even if they retire at their own request. In
addition to improving the treatment of those about to retire, we are doing the same forthose who are rehired under the reemployment system. Employees may also choose
to be reemployed between the ages of 60 and 65. In fiscal 2022, we reemployed 172
retired employees on a consolidated basis.

Developing and Evaluating Human Resources

Website on the Promotion of
Women’s Active Engagement inProfessional Life and Support for theirWork-Life Balance (Ministry of Health,Labour and Welfare of Japan)

S

Social⨋ P romoting Women’s Careers

We formulated an action plan based on the Act of Promotion of Women’s Participation andAdvancement in the Workplace to create an environment in which our female employees
can continuously develop their careers and have since implemented related measures. Our
wages and promotion opportunities to managerial positions are solely based on employeecompetence or performance as fairly evaluated free from gender-based discrimination.
Non-consolidated

128 people from 9 countries(male: 101, female: 27)

Employees of Thai Sanki Engineering

To increase the diversity our working environment and more flexibly accommodate careerdevelopment, we changed part of our Return to Job program and renamed it as Return
to Career. The revised program, launched in October 2022, allows voluntarily retired
employees to return to work and significantly relaxes other restrictions.

▍Gender Wage Gap (FY2022)*1

The U.K., Thailand, Vietnam,
Peru, Russia, South Korea, China,
Austria, and Malaysia

E

Foundation of Sustainability Management

We seek to bring on board human resources that differ in gender and nationality as
well as in talent and personality. Staff from the sales, design, technology, and otherdivisions join the Human Resources Department to ensure fairness based on multiple
perspectives. Hiring criteria for fiscal 2022 were based on findings from interviews with thepresident, officers in charge, and the managers of direct departments to continuously andproactively hire people from a wide variety of backgrounds.
As of the end of March 2023, there were 184 mid-career hires in managerial positions (on aconsolidated basis). In fiscal 2022, we introduced an exclusive hire contract system for R&D andother jobs requiring high-level expertise to secure correspondingly high-level human resources.

Number of Non-Japanese Employees(as of March 31, 2023) (Consolidated)

Facilities
Construction
Technical Training︱

New employee
training
Third-year construction
work training
Sixth-year construction
work training
Ninth-year construction
work training
Qualification training

Plants & Machinery
Systems

New employee training
Inspector education
Training on our products and systems
ISO 9001/ISO 14001

Quality & Environment
System Training

New employee training
Mid-career staff training

Education to developinternal auditors

Average education and training
costs per employee in FY2022(consolidated)

55,000yen/year

SANKI REPORT 2023

67

︱Foundation of Sustainability Management ︱Social︱Human Resources

Employee Engagement⨋ Q uestionnaire on the Working Environment and Individual

Interviews

Results of a Questionnaire Survey
on the Working Environment
Survey period: 2021
Participants: all Group employees
Q Do you think that the SankiEngineering Group’s business iscontributing to society?
Yes

98.6%

⨋ P romoting Work-Life Balance⨋ Century Communication Up Discussion Events

Since fiscal 2016, we have been holding Century Communication Up (CCU) discussion
events in accordance with the Century 2025 long-term vision. Opinions and proposals
obtained through the CCU have been applied to improving our operations andsystems. In April 2022, we organized a new employee CCU to provide an opportunity
for face-to-face dialogue between new employees and executive officers.
⨋ S ound Employer-Employee Relationships

Sanki Engineering launched the Company-wide Smile Project, led by the president, in
fiscal 2015 to promote work style reform. We have been implementing initiatives acrossthe Company to create a better working environment. In fiscal 2017, we set up the Smile
Site Plan, a committee dedicated to construction sites. In addition, we worked on efforts
to lessen the operational load of construction managers and enhance capabilities andquality at our construction sites. In fiscal 2020, we launched the Smile Plan, consistingof four subcommittees, to establish a system that enables all departments to work
together as one. Moreover, under the Medium-Term Management Plan “Century 2025”
Phase 3, a KPI is set up to eliminate overtime work exceeding the limit stipulated in
the revised Labor Standards Act. As a result of these efforts, we were rated 3 on a scaleof 5 stars in the 6th NIKKEI Smart Work Management Survey, which selects advanced
companies that challenge the productivity revolution through work style reform.

68

SANKI REPORT 2023

GovernanceStretching class at Sanki Techno Center

FY2022 rate of paid leave taken(consolidated)

61.6
27.4

％

Average monthly overtime work
per person (consolidated)

hours

Childcare by the City of Nagoya
New employee CCU with executive officers

In 2015, Sanki Engineering was granted an update for the Kurumin mark, a certificate grantedby the Tokyo Labor Bureau of the Ministry of Health, Labour and Welfare and based on the
Act on Advancement of Measures to Support Raising Next-Generation Children, for meetingcertain criteria as a company supporting childcare. In 2014, the Chubu Branch became thefirst construction equipment company to be recognized by the City of Nagoya as a company
supporting childcare, and the certification was updated in 2017.

The Kurumin markfor support ofraising nextgeneration children

City of Nagoya
certification
for companies
supporting childcare▍Major Programs Supporting Work-Life Balance (Non-consolidated) (as of April 2023)
Certified as 3 stars in the NIKKEI Smart WorkManagement Survey

Area• R aise efficiency by introducing acloud-based accounting system

P. 56
Initiatives for Ensuring Quality at
Construction Sites

Work

Half day/hourly off

Paid leave for half a day or by the hour.

Anniversary leave

A planned paid leave on special dates for employees or their families, requested at the start of the fiscal year.

Sanki Smile Day

The Company’s own Premium Friday, a scheme based on that launched by the Japanese government. Employees areencouraged to take a full or half day of paid leave on monthly payday and avoid overtime.

Reserved leave

The use of reserved days off for childcare, nursing, or volunteer activities.

Telecommuting and teleworksystemAims to improve operational efficiency and business continuity during childcare and nursing care or in the event ofemergencies such as natural disasters and pandemics.

Sliding work hours

Employees can slide the start and end times forward or back for business or non-business reasons insofar as this does notinterfere with their work.

Return to Career program

Employees who have left the Company for unavoidable reasons can apply for reinstatement.

Childcare leave

Can be obtained for the requested period of time up to when the child turns one year old.

Nursing leave

Can be obtained five times for up to 180 days per person on nursing leave.

ChildcareandShortened work hours
nursing
care
Support for childcare leave and
Health & Productivity Management
Organization 2023

Details
Five consecutive days of leave for each five- year period of employment using employee’s reserved leave.

Consecutive leave for construction Three consecutive days of leave after staying at a construction site for more than six months or before moving tomanagers
another site.

• Clarify work responsibilities byreviewing the personnel system• Follow up with employees who work
long hours based on stress check
results

ProgramRefresh leave

Major Initiatives of the Smile Project⨋ M easures on Health and Productivity Management

Understanding that reducing long hours of work is a primary consideration for
managing employee health and productivity, we engage in activities for maintaining
and improving employee well-being in tandem with other work style reforms. Apartfrom measures for reducing workloads and raising productivity, we carry out healthimprovement activities, conduct periodic stress checkups and identify the sources ofSocial⨋ Acquiring the Kurumin Mark and Recognition for Supporting

Promoting Work Style Reform⨋ P romoting the Smile Project

Environment

Human Resources

We consider labor-management dialogues as a key channel to invest in humanresources and continuously improve employee treatment. The Human Resources
Department and employees union at Sanki Engineering meet monthly to discuss
improvements in the working environment and operation of Company systems.
Also, we provide the employees union with opportunities to present their proposals
or requests to management and have been implementing measures based on the
dialogues. For instance, we held labor-management exchanges in order to discuss anddetermine the fiscal 2022 wage increases.

G

SocialWe have been augmenting our programs in response to employee requests forbroad support of a healthy balance of work and personal life so both male and female
employees can continue to work with a sense of security while attending to various life
events. In addition, we are promoting improvement of the environment that enables
flexible work styles by reviewing our work and leave programs.
In fiscal 2022, we reviewed our Return to Job program and also conducted an
online seminar and individual consultation on nursing care for employees across Japan.
Furthermore, we introduced a new rule to expand the options of our postpartum
paternity leave in response to revisions to the Act on Childcare Leave and Caregiver
Leave, thereby allowing employees on paternity leave to work for a certain period oftime even during the leave at their request.

S

Foundation of Sustainability Management

We gather opinions from employees about their workplace through a periodic
questionnaire along with another questionnaire conducted by employees union, andwe refer to their comments while creating a better working environment.
In fiscal 2022, prior to the launch of the revised personnel system, the Human
Resources Department conducted individual face-to-face interviews with generalmanagers and managers, seeking their opinions about the personnel system. We
continue to maintain direct dialogue with employees to deepen mutual understanding
and use their feedback to design personnel systems and training programs.

stress through third-party assessment, provide employees with industrial physician
advice for improving their life-style habits, and implement health-related campaigns
using a pedometer app as well as other projects. Moreover, a 24-hour toll-free healthconsultation service is in place to offer advice on health, medical, nursing, and childcare
issues for employees and their families. The service was set up outside the Company,
and caller privacy is strictly protected.
We have been certified as a Health & Productivity Organization 2023 (Large
Enterprise Category) in recognition of those efforts, by the Ministry of Economy, Tradeand Industry and Nippon Kenko Kaigi.

E

Employees caring for children or other family members can apply for shortened or sliding work hours. In the case ofchildcare, the program applies to children up to the third grade of elementary school.

reinstatement

An interview is held with the supervisor before and after applying for childcare leave.

Special childcare/nursing leave

Can be obtained multiple times and up to 20 days in total for childcare and nursing care.

Postpartum paternity leave

Those on paternity leave can work during the leave only if they have requested to do so and with Company permission.

SANKI REPORT 2023

69

︱

︱ Social
人財Foundation of Sustainability Management ︱

E

S

G

Environment

SocialGovernance

Local Communities▍Number of Employees on Leave and Work Hours
FY2019FY2020

FY2021

Male Female Total

Male Female Total

Male Female Total

7

11

18

9

27

36

7

9

–

–

16

7

24

–

–

–

FY2022
Male

Female103242

7 (26)

34

9

30

39

–

–

–

–

7

33

40

31

7

27

–

–

–

Basic Philosophy

Total

13

20 (39)6 (25)

12

18 (37)

43.3

100.0

53.4

–

–

–

–

–

–

–

–

–

–

–

–

44.6

100.0

54.4

100.0

88.9

93.8

100

96.3

97.2

100.0

100.0

100.0

100

93.8

95.2

100.0

100.0

100.0

100.0

88.9

93.8

100

100

100

100.0

100.0

100.0

100

100

100

100.0

100.0

100.0

1

0

1

1

1

2

0

0

0

0

0

0

1

0

1

0

0

0

0

0

0

0

0

0

0

0

0

1

0

1

54.0

76.1

57.1

54.3

76.3

57.4

53.4

67.1

55.3

53.2

69.7

55.6

58.8

77.9

61.6

53.0

74.2

55.9

51.9

74.4

55.1

52.5

65.8

54.5

52.4

69.5

55.0

58.2

77.9

–

–

–

37.4

14.7

34.3

31.7

12.3

29.0

31.7

11.8

29.6

30.0

12.4

61.4
27.4

35.0

14.7

32.0

34.5

13.6

31.3

33.0

13.3

29.9

33.0

12.8

29.7

31.6

13.7

28.8

▍Employee Data (as of March 31 of Each Fiscal Year)FY2022FY2018FY2019FY2020

FY2021

Male Female Total

Male Female Total

Male Female Total

Male

Female

Total

2,072

322

2,394

2,152

349

2,501

2,190

358

2,548

2,226

381

2,607

2,244

383

2,627

1,694

273

1,967

1,705

287

1,992

1,740

308

2,048

1,770

326

2,096

1,753

320

2,073

–

–

–

–

–

–

91

22

113

84

25

109

101

27

128

–

–

–

–

–

–

17

6

23

19

5

24

20

5

25

⨋ Cleanup and Environmental Beautification Activities

630

7

637

676

9

685

683

11

694

672

13

685

687

18

705

Number ofmanagers*3

556

5

561

556

5

561

567

7

574

567

9

576

580

14

594

Average age*2
Average years ofservice*2

44.5

38.2

43.7

44.7

38.3

43.8

44.7

38.8

43.8

44.7

39.0

43.9

43.8

39.2

43.1

43.9

37.1

43.0

44.1

37.6

43.2

44.2

38.0

43.2

44.2

38.2

43.2

43.0

38.3

42.3

17.3

13.0

16.7

17.3

12.9

16.7

17.5

13.2

16.9

17.6

13.3

17.0

16.7

13.6

16.2

19.0

13.9

18.3

19.3

14.1

18.5

19.4

14.0

18.6

19.5

14.2

18.6

18.5

14.7

17.9

Each branch, branch office, and Group company participates in cleanup activities
in areas around their offices or construction sites as well as environmental
beautification activities organized by municipal governments. On a Group-widebasis, we carried out activities in 42 local communicates in fiscal 2022. The Group’s
presidents also actively participate in events and encourage greater turnouts for
local cleanups.

–

–

–

70

15

85

73

18

91

79

20

99

82

6

88

⨋ Welcoming Study Tours to the Safety Experience Area and Other Training

71

9

80

67

15

82

70

18

88

76

19

95

78

5

83

–

–

–

32

13

45

26

13

39

25

12

37

30

3

33

Employment

Consolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated

Number of new
recruits
Number of
mid-career hires
Number of rehired
employees after
retirement
Rate of persons
with disabilities*4(%)
Turnover rate
due to personalreasons*5 (%)

4

2

6

7

8

15

5

9

14

5

3

8

5

0

5

223

9

232

229

11

240

212

12

224

216

10

226

165

7

172

161

5

166

169

8

177

173

9

182

176

10

186

124

6

130

–

–

1.89

–

–

1.94

–

–

1.77

–

–

1.82

–

–

1.51

–

–

1.93

–

–

1.97

–

–

1.99

–

–

2.10

–

–

2.24

–

–

–

–

–

–

1.7

2.2

1.8

2.4

3.5

2.6

2.0

3.1

2.2

–

–

–

–

–

–

1.5

1.6

1.5

1.7

2.3

1.8

1.7

2.7

1.9

*1 The numbers in parentheses for childcare leave, the male rate of childcare leave taken, and the total for childcare leave taken in fiscal 2022 are calculated by including theCompany’s own leave programs.
*2 The figure for FY2021 was retrospectively revised.
*3 The figures for the years from FY2018 to FY2021 were retrospectively revised due to a change in the aggregation method under the revised personnel system.
*4 As of June 1 of each fiscal year.
*5 Ratio of retired employees to all employees in each fiscal year.

▍Employees by Age (as of March 31, 2023)
10s

20s

30s

40s

50s

60s

70s

Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total Male Female Total

70

Total

Consolidated

8

0

8

404

97

501

468

111

579

492

94

586

631

65

696

232

16

248

9

0

9

2,627

Nonconsolidated

8

0

8

354

87

441

384

100

484

344

72

416

490

51

541

171

10

181

2

0

2

2,073

SANKI REPORT 2023

Disaster-preparedness wellLocal Communities

Number of
non-Japaneseemployees⨋ Agreement for the Provision of Facilities in Times of Disaster

Sanki Engineering has concluded an agreement with Yamato City in Kanagawa
Prefecture to provide a temporary shelter for those unable to return home in thewake of a disaster. Under the agreement, Sanki Techno Center will, in the eventof an earthquake or other calamity, serve as a base of operations for local disasterprevention and emergency firefighting teams, and the Company will work to
restore facilities for water supply and sewage in Yamato City.
In fiscal 2022, we constructed a water well to ensure the supply of potablewater for neighborhood residents in the event of a disaster until water supply andsewerage systems are restored. The well is registered as Yamato City’s disaster
preparedness well.

SocialConsolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated
Consolidated
Nonconsolidated

Initiatives for Co-Existing with Local Communities

Male Female Total
Employees
Number of
employees

As stated in the Sanki Engineering Group Code of Conduct and Action Guidelines, “We seek to contribute to society
in order to aid in the development of local communities as a good corporate citizen and member of society,” and ouractivities reflect this principle. We will maintain active communication and continue to help with the development of thelocal communities where we operate.

Foundation of Sustainability Management

Consolidated
Childcare leave*1
Nonconsolidated
Consolidated
Rate of childcare
Nonleave taken*1 (%)
consolidated
Consolidated
Reinstatement after
Nonchildcare leave (%)
consolidated
Consolidated
Nursing leaveNon(people)
consolidated
Consolidated
Rate of paid leave
Nontaken (%)
consolidated
Consolidated
Average monthly
overtime work*2
Non(hours per person)
consolidated

FY2018
Male Female Total

Ocean cleanup in Hokkaido

Facilities
The Sanki Techno Center welcomes study tours from government agencies,
schools, and businesses to its Safety Experience area and other training facilities
at the Techno Plaza. The Safety Experience area, which opened in fiscal 2019, gives
visitors a first-hand visual experience of hazardous construction works. In fiscal
2022, 652 people visited the facility for a cumulative total of 4,336.

Supporting the Development of the Next Generation

Receiving study visitors at the
Sanki Techno Center⨋ Opening the Sanki Environmental Garden to the Local Public

The Sanki Environmental Garden, adjacent to the Sanki Techno Center, is open
round the clock to members of the local community, providing a place to play formany children from neighboring daycare centers. In March 2023, the total numberof visitors reached approximately 50,000. We expect that the Sanki Environmental
Garden will continue to be used by the community as a place to relax, and tonurture the next generation over the long term.
⨋ Sanki Kankyo Service Welcomes Social Studies Tours by Local Schools

Spot-billed ducks at the Sanki Environmental
GardenOur Group company Sanki Kankyo Service actively invites elementary school
children for field trips at its offices. In fiscal 2022, 70 children from four elementary

SANKI REPORT 2023

71︱Foundation of Sustainability Management ︱︱ Social
地域社会

E

S

G

Environment

SocialGovernanceschools in Hokkaido visited the offices and learned about the role and workings ofthe sewerage system. The company also helped some junior-high schools provide
work experience for students in their social studies class.
⨋ Sponsoring the Chikyu Kyoshitsu Environmental Education ProjectIn 2022, we participated as a special sponsor in Chikyu Kyoshitsu, an environmental
education project hosted by The Asahi Shimbun Company for elementary andjunior-high school children. In addition to serving as a teacher in the One-Day
School on the Environment for some 80 elementary school children and 200
online participants across Japan, we visited elementary schools in Okinawa andKumamoto prefectures. Under the title “Thinking about Comfortable Living andEnergy Efficiency,” the visiting lessons were provided for 109 students to raiseawareness about global environmental conservation through examples of theeveryday comforts associated with air, water, and electricity.

Chikyu Kyoshitsu

Other Services to Society⨋ Support for Sports Promotion and Revitalization

We are an official sponsor of Yamato Sylphid, a women’s soccer team in Yamato
City. We also sponsor the non-profit organization Japan Deaf Rugby Football
Union (Deaf Rugby), Japan Handball Association, and East Hokkaido Cranes, an ice
hockey team in Kushiro City, Hokkaido Prefecture. By supporting these sports, we
continue to contribute to the revitalization of local communities.
⨋ Donations and Contributions

Yamato Sylphid on Sanki Match Day

We extend donations to universities and research institutes and sponsor culturalactivities, including those by the Japan Symphony Foundation and the Kokoro no
Gekijo (theater of the heart) project by the Shiki Theater Company . In addition, we
support nature conservation activities in developing countries in the Asia-Pacificand other regions, collect donations for training guide dogs, and encourage
our employees to donate blood on an ongoing basis. We also help with MitsuiGroup social contribution activities through our support for the Mitsui Volunteer
Network, which promotes the voluntary efforts of former employees of MitsuiGroup companies.

Japan Deaf Rugby Team at the WorldChampionship 2023

⨋ Earthquake Reconstruction Project

We launched the Earthquake Reconstruction Project in May 2012, a year after theGreat East Japan Earthquake, as a Company-wide action team for contributing to
the early recovery of the affected areas. Since then, we have conducted various
activities each year to support the reconstruction effort, prevent memories of thedisaster from fading, dispel harmful rumors, and share information on disasterprevention and mitigation.
▍Activities in Fiscal 2022
• Provided a lunch menu featuring ingredientssourced from the Tohoku region at the Sanki
Techno Center cafeteria• Purchased products from a gift catalog
supporting the affected areas, in collaboration
with the employees union

72

SANKI REPORT 2023

Visiting an earthquake-stricken area

• Co-sponsored a Tsugaru Shamisen competition• Paid our seventh visit to affected areas• L aunched a permanent exhibit onreconstruction following the earthquake