Ishida • We have appointed Mr. Yamamoto, who is
an independent director, as Chairman of the Board ofDirectors to strengthen its supervision functions. He alsoIshida • Sanki Engineering has grown on the strengthof its technological capabilities, and I place the highest
priority on utilizing the human capital that supports

President

External Director

Dialogue between President Ishida
and External Director Umeda

A Governance Structure thatSupports Sustainability Management
President Ishida and External Director Umeda exchanged views on governance and the future direction ofthe Sanki Engineering Group in pursuit of sustainable growth through sustainability management.

Governance Structure that Invigorates Diversity andDialogue

How do you view Sanki Engineering as anexternal director?
Umeda • In the year since becoming an externaldirector, I have realized that in many of the buildings I’ve
been in, there are facilities installed by Sanki Engineering,so I can now see my connection with the Company
had been closer than I’d thought. As I learned more
about Sanki Engineering’s business, I increasingly feltthat it deserves greater public recognition. For example,
its contribution to achieving a decarbonized society
through its SANKI YOU Eco Contribution Point system* isa unique and wonderful initiative.
*See page 51.

Ishida • Our business is linked to carbon neutrality
in a number of ways, and our operations lead tosustainability from different perspectives. However, asa B to B business, we may not have been sufficiently
communicating this to the general public.
Umeda • I was also given the opportunity to tour

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SANKI REPORT 2023

Opening New Pathways into the Future withthe Power of People and Technology

Finally, what are your expectations for theSanki Engineering Group in the years ahead?
Umeda • Continuing to achieve sustainable growth
in an era of such rapid and dramatic social change will
require being a company that accurately grasps theneeds of society while responding with innovativeideas and technologies. Sanki Engineering’s mostappealing aspects are its honest corporate culture
and down-to-earth management, and I expect it will
improve these strengths by fully realizing the potentialof the technology it has cultivated to develop business,enhance value creation, and open up new pathways intothe future.
Ishida • As global issues continue to evolve, I believe
the time has come to reevaluate our response as a total
engineering company. While there is no doubt about
the value of the unique technologies we have cultivatedover nearly a hundred years and the relationships oftrust we have forged with our stakeholders, the times
require us to address social issues with a willingness
to participate in open innovation and other forms ofexternal collaboration. To that end, I want to pay evencloser attention to the opinions and suggestions of ourboard members, who come from diverse backgrounds.

SANKI REPORT 2023

Dialogue between President Ishida and External Director Umeda

What would you emphasize as being effectivefor utilizing Sanki Engineering’s management
capital?

Tamami Umeda

GovernanceHow do you evaluate the effectiveness of
the Board of Directors and the governancestructure?

Hirokazu Ishidathis growth. In terms of investing in that, our policy is tospare no effort to ensure appropriate profits and improve
the working environment so that our employees canwork with a strong sense of purpose and motivation.
Today, with the increasing diversity of life planning,
we must continuously think about how we can makeemployees happy.
Umeda • I have the strong impression that SankiEngineering employees are working diligently as theunsung heroes of society, but they may not be keenly
aware that their daily work is directly connected toresolving social issues and contributing to sustainability.
I think you could further raise their awareness andencourage each of them to demonstrate theircapabilities by entering sustainability-related awards
and other contests for the sake of gaining external
recognition, and by communicating both internallyand externally the value of government verification
projects for resolving social issues in which the Company
participates.

Foundation of Sustainability Management

drainage disposal and other facilities, and I gained astrong sense of the Company’s efforts to add greater
value to critical social infrastructure, such as actively
introducing energy-saving facilities and effectively usingsludge. When I toured the Sanki Techno Center, efforts
to creatively change behavior were clearly evident
throughout the training facility in addition to its focus
on conveying safety-related skills and knowledge. The
enthusiasm people seemed to have for their work gave
me a powerful impression of a diligent company.
Ishida • We provide our external directors withopportunities to visit our facilities and construction sites
to meet with employees face to face. I think you can gain
insight into our corporate culture by directly interactingwith employees in the field.

attends the Management Meeting and various policy
meetings and is responsible for setting appropriate
board meeting agendas and proceedings from a highlevel perspective with a sound executive understandingof the situation. Our external directors speak out fromtheir respective backgrounds, and I feel the Board of
Directors’ effectiveness has been significantly enhancedby the members engaging in dialogue stimulatedby their own opinions, which at times are promptly
reflected in management decisions. We have seen
increasingly vigorous discussion on potentially high risk
issues, such as sustainability.
Umeda • I have served in various administrative posts inhealthcare, environmental, and other fields and have also
been involved in international organizations and nationaldiplomacy related to international healthcare. I therefore
try to offer advice based not only on my field of expertise
but also on knowledge accumulated through first-handexperience in such areas as effective collaboration
between industry, government, and academia. Although
I’m an outsider to the construction industry, I feel quite
comfortable speaking up at the board meetings, andwhen I ask simple questions, the executives provide
detailed explanations. What’s more, I’m often inspiredby the comments made by other external directors, whobring a wealth of management experience, and I feel thatour discussions are very meaningful.
Ishida • An evaluation of the effectiveness of the Boardof Directors for fiscal 2022 was conducted through aninterview by a third party with expertise in corporate
governance. Over the past two years, the evaluation
had been conducted using a questionnaire, but since
the responses tended to converge on similar ideas, wedecided to use interviews this time to surface moredetailed information. Looking ahead, we will continue toexplore different methods to enhance the evaluations.
Umeda • The interviewer’s awareness of the issues wasreflected in questions following up on matters that hadcome up in past questionnaires, and it was clear that
PDCA improvement cycles were being implemented. As
for myself, the interviews provided a good opportunity
to reaffirm my responsibilities and role as an external
director.

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