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Foundation of Sustainability Management ︱Sanki Engineering Group Value Chain
The Sanki Engineering Group is engaged in the life cycle engineering (LCE) business, in which we handle the entire processfrom facility planning and design to procurement, construction, operational management, maintenance and inspection,and renovations and renewal. We seek to generate diverse benefits that meet stakeholder expectations by addressing
opportunities and risks in the context of sustainability management across the value chain of our business activities.

Foundation of Sustainability Management

Social Issues
Declining population, falling birthrates,
and aging population

Climate change
Upstream⃝ Shift to a decarbonized society⃝ Limited resources

Facility Design⃝ Resource circulation⃝ Waste issues

Subcontractors⃝ Labor shortageDelivery⃝ Human rights risks⃝ Fair procurement⃝ Supply chain risks⃝ Safety firstConstruction

Manufacturers, Business Partners

Spread of COVID-19

Work style reform

Aging infrastructure⃝ Quality assurance⃝ Ensuring information security

Construction

Subcontractors

Subcontractors

We ensure the stable procurement of highly specializedmaterials, equipment, and services required inconstruction through a sound and secure supply chain.
We have constructed a Procurement Web to strengthen
our relationships with business partners by sharing
information, seeking to raise operational efficiency,
and shorten lead times for both Sanki Engineering andits partners while also reducing costs through lower
purchasing costs and digitalization.

Construction andConstruction
Management
We have developed a nationwide construction management
system, drawing upon our ample experience and advanced
technical skills, and implement high-quality construction operations
in collaboration with as many as 859 companies that make up ourSubcontractor Group. In addition to strengthening internal controls
and systems for supporting site operations, we aggressively adopt
new technologies and improve construction methods to advance
automation and save labor in the construction process, and wemeet diverse customer needs by providing customized construction
options that effectively balance quality and cost.

● Cultivation of trust and enhanced collaboration● Promotion of health and safety activities● Securing and fostering human resources and● Proposal for disaster prevention and mitigation facilities● Proposal and design for meeting the demand for HVAC

and clean rooms that prevent infections● Response to increased demand for data centers andopen offices due to promotion of teleworking● Promotion of the SANKI YOU Eco Contribution Pointsystem● Proposal and design for reducing environmental impact● Proposal and design for energy creation facilities● Appropriate management of customer information,
protection of personal information

enhancement of technology● Promotion of diversity● Promotion of work style reform and developmentof workplace environments● Promotion of green procurement● Initiatives for CSR procurement

Sanki Engineering● Securing and fostering human resources and● Fair, equal, and transparent business relationships● Utilization of DX to raise efficiency of procurement

operations and reduce onsite workload● Promotion of DX initiatives, including BIM● Response to information security risks● Promotion of green procurement● Initiatives for CSR procurement

Downstream

workplace environments● Initiatives for preventing problems and complaints● Promotion of DX initiatives, including BIM● Response to information security risks● Support for stabilizing the business of subcontractors● Cultivation of trust and enhanced collaboration with subcontractors● Initiatives for preventing problems and complaints● Promotion of health and safety● Promotion of health and safety activities● Promotion of work style reform and development of● Promotion of health and safety activities● Response to human rights issues● Response to human rights issues

enhancement of technology● Promotion of diversity

Sanki Engineering

Sanki Engineering● Response to human rights issues

Upstream● Utilization and protection of intellectual propertywith business partners● Promotion of green procurement●  Initiatives for CSR procurement● Response to material shortages and delivery delays● Response to human rights issues

Upstream● I nitiatives for preventing problems and complaints● Initiatives for diversifying the supply chain

Customers● Development and introduction of construction-related

automation and labor-saving technologies● Initiatives for preventing problems and complaints● Maintenance and enhancement of customer satisfaction● Promotion of health and safety activities● Support for stabilizing the business of subcontractors● Cultivation of trust and collaboration with subcontractors● Response to human● Active proposals forimproving worksites● Development andactivities● Securing and fostering humanintroduction ofresources and enhancement ofconstruction-related
technology
automation and labor● Promotion of diversity
saving technologies● Promotion of work style reform● Initiatives for preventingand development of workplace
problems and complaints● Proper disposal andenvironments● Promotion of DX initiatives,
reduction of waste● Compliance withincluding BIM● Response to information security risks
environmental regulations● Improved productivity and reduced● Reduced risks toonsite workload based on systematic
biodiversity arounddivision of labor
construction sites● Response to human rights issues● Initiatives for preventing problems and complaints

Sanki Engineering● Response to human rights issues● Promotion of health and safety activities

Upstream● Response to human rights issues

Downstream

Upstream
SANKI REPORT 2023

By taking over the operation, management, maintenance,
and inspection of facilities designed and constructed by SankiEngineering, such as office buildings, factories, schools, hospitals,
waste treatment plants, and water treatment plants, we ensurestable operation of customer facilities and efficient preventive
maintenance, extend the operational life of facilities, and reducerunning costs. For Sanki Engineering, this provides an opportunity
to promote our LCE business by providing us with a source of stable,
long-term profit and enables us to offer renovation and renewal
proposals at the optimal timing.

Use, Renovation, and Renewal

Downstream

Maximize Opportunities and Minimize Risks

44Maintenance

Downstream

Sanki Engineering

We participate in the planning and design stages of wideranging projects involving building and industrial HVAC
systems, water supply and drainage systems, electricalsystems, material handling and conveyance systems, andwater treatment and waste treatment facilities in orderto provide proposals offering the ideal combination of
comfort and reduced environmental impact. In addition,
we proactively develop and introduce new technologies
for meeting customer needs, including Open Lab
initiatives that encourage active joint research inside andoutside the Group.

Procurementand Ordering

Downstream

Design officesConstruction
companies

Facility Design

Sanki Engineering Group Value Chain

Customers

Planningrights issues● Promotion of healthand safety activities● Securing and fostering
human resourcesand enhancement oftechnology● Promotion of diversity● Promotion of work style reformand development of workplaceenvironments● Initiatives for preventing problems
and complaints● Proper disposal and reduction ofwaste● Compliance with environmental
regulations● Response to introducing BIM● Response to the need for contact-free means of humaninteraction● Realization of optimal operational management that savesenergy● Reduced environmental impact based on generating energy
and the recycling and reuse of resources● Initiatives for preventing problems and complaints● Proper disposal and reduction of waste● Compliance with environmental regulations● Realization of safe, secure, and comfortable environments

SANKI REPORT 202345