Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

CDP Climate Change 2022 Questionnaire
C0 Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
The Group is centered on the Obayashi Corporation, one of Japan's biggest construction
companies, and consists of 98 subsidiaries and 26 affiliated companies, with about 1.92trillion
yen in total sales and 15,000 employees. Since its founding by Yoshigoro Obayashi in Osaka in1892 and until today, the Group has engaged in numerous major projects in Japan and abroad,building on its DNA of "an attitude of sincere manufacturing" and "technological power." Making
use of technologies and knowhow that we have cultivated since the beginning, we haverecently gone beyond our main construction business to engage in new businesses like therenewable energy business, actively working to realize a low carbon society.

C0.2(C0.2) State the start and end date of the year for which you are reporting data.
Start dateEnd date

Indicate if you are providing emissions data for pastreporting years

From:[01/04/2021]To:[31/03/2022]

No

C0.3
(C0.3) Select the countries/areas in which you operate.
Japan

C0.4
(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
JPY

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Other, please specify
Domestic (non-consolidated)

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C-C N0.7/C-RE0.7(C-CN0.7/C-RE0.7) Which real estate and/or construction activities does yourorganization engage in?
Answer specifically, e.g. new construction and large-scale alterations of buildings, other realestate and construction activities
New businesses like civil engineering, real estate development, and renewable energy

C0.8(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier foryour organization

Provide your unique
identifier*C1 GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position ofindividual(s)Please explain

President

At the Obayashi Corporation, the Board of Directors, which comprises all directors,
oversees climate-related risks and opportunities as a priority matter for ourbusinesses. The President and CEO (hereafter "President"), who is a member ofthe Board of Directors and Chair of the CSR Committee, has the highest
responsibility for climate-related issues. Obayashi's major policies, measures, andorganizations that refer to climate-related issues for which the President is
responsible are as follows:・Basic Principles and Environmental Policy of the Obayashi Corporation
The Basic Principles of the Obayashi Corporation is based on the spirit of the Three
Pledges (Quality, Value, and Efficiency) that go back to the founding of thecompany. Our Corporate Philosophy defines our social mission, and our Code of
Conduct stipulates guidelines for achieving that. As a leading sustainability
company, our Corporate Philosophy specifies that we "care for the global
environment and create solutions to social challenges as a good corporate citizen."2

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The Code of Conduct promotes "fostering an environmentally responsible society"as one way to "fulfill our social mission
The President of Obayashi Corporation has separately established the Obayashi
Environmental Policy, which states the following as its basic philosophy: As a good
corporate citizen, Obayashi considers active efforts and continuous improvement ofenvironmental issues to be integral components of business management. We
have a vision of a future sustainable society and seek to contribute to its realization.
・Obayashi Sustainability Vision 2050
Obayashi's Expert Committee, chaired by the President and composed of outside
experts and several Obayashi executives, will study the issue and incorporate
contributions to the achievement of ESG and SDGs as a management foundationand social issue by grasping social trends and changes in the businessenvironment surrounding the Obayashi Group. The objective in so doing is tosimultaneously pursue sustainability for the "Earth, society and people" as well asthat of the entire Obayashi Group. For this purpose, the Obayashi Green Vision
2050, formulated in 2011, was updated to the Obayashi Sustainability Vision 2050
in June 2019. The said Vision defines our vision for 2050 and sets targets for 2040–
2050, including decarbonization, to realize the ideal state.
・Mid-term Business Plan 2017 and Mid-term Business Plan 2022
Aiming at the realization of a sustainable society, as stated in its Corporate
Philosophy, the Obayashi Group has drawn up its vision for the future for the 150th
anniversary of its founding (2042) and formulated its Medium-term Business Plan
2017. The latter outlines the achievements to be realized and measures to be takenin the first five years of the roadmap and reviews previous initiatives, based on
Obayashi's Basic Principles, from an ESG perspective, identifying six key ESG
issues. The Obayashi Group aims to achieve medium- to long-term growth andrealize a sustainable society by incorporating important ESG issues into its
business initiatives, based on its Medium-term Business Plan, steadily promoting
them and working in conjunction with the SDGs. The company has also adopted
building an environmentally conscious society as one of its key ESG issues and has
named promotion of decarbonization and other actions as part of its action plan.
The PDCA cycle is used to check the progress of KPIs set for each action planeach fiscal year and to promote activities based on the PDCA cycle. In March 2022,
we formulated the Medium-term Business Plan 2022, which is the final year of theMedium-term Business Plan 2017.
・The Board of Directors
Obayashi Corporation has a Board of Directors on which all directors sit, including
the President and the executive officer in charge of the environment(Representative Director and Executive Vice President). The Board of Directors

convenes about 15 times a year and oversees climate-related risks andopportunities. In FY2020, the committee discussed and decided on specific ESGrelated initiatives and KPIs incorporated in the management plan. Among these, as
matters related to climate-related issues, were the KPIs "CO2 emissions reduction
rate by direct contribution* (compared to FY2013)" and "CO2 emissions reduction

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

rate by indirect contribution** (compared to FY2013)." These matters related to thePromotion of Decarbonization Action Plan regarding the ESG key issue "Formationof an Environmentally Sound Society."*Direct contributions＝A＋B－C
AFuel consumption and power purchased at construction sites and in
offices（Scope1+2）
B
Transportation of construction materials and waste, commuting of
employees and workers（Scope3: Categories 4, 7, 9）
CEmissions corresponding to power generated in renewable energy
businesses**Indirect contributions＝a＋b－caAnnual emissions for buildings in operation and in common use for35 years after completed construction by usb
Production of construction materials（Scope3: Category 1）cReduction effect by adoption of energy-saving and low-carbon
materials
In March 2022, the company formulated the Medium-term Business Plan 2022 andset new GHG emission reduction targets for FY2021.
・CSR Committee
Obayashi Corporation has established the CSR Committee, chaired by thepresident and composed of several directors, including the director in charge of theenvironment, and several executive officers, to promote company-wide CSR
activities from an ESG perspective based on Obayashi's Basic Philosophy. The

CSR Committee meets once a year and formulates the basic policy on
CSR, including activities for climate-related matters, proposes policies andconcrete activity plans, and reviews how they are implemented. In FY2020,
based on deliberations and decisions by the CSR Committee, the Company
announced its endorsement of the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD) in July 2020. It also conducted scenario
analyses for four major domestic businesses (construction, civil engineering,development, and new areas) to identify and assess climate-related risks andopportunities and determine the medium- to long-term impact of climate-related
issues on their businesses.

Based on those results, information was disclosed based on the TCFD
proposal in November 2020.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency withwhich climaterelated issues

Governancemechanisms into
which climate-related
issues are integrated

Please explain

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

are a scheduled
agenda item
All meetings(planned)●Reviewing and guiding The following are the meetings in the Obayashi
Corporation where climate-related matters are on thestrategy
agenda and which are attended by officers including●Reviewing and guiding the chief executive Representative Director andPresident and/or the executive in charge ofmajor plans of action
environmental actions (Representative Director and●Reviewing and guiding Executive Vice President). These meetings arescheduled 1-15 times a year.
risk management
1. Board of Directors
policies
The Obayashi Corporation has a "Board of Directors"●Reviewing and guidingthat consists of all directors. The board meets 15
annual budgets
times a year and oversees climate-related risks and●Reviewing and guiding opportunities.
business plans●Setting performance
objectives●Monitoring
implementation andperformance ofobjectives●Overseeing
major capital
expenditures,acquisitions anddivestitures●Monitoring andoverseeing progressagainst goals andtargets for addressing
climate-related issues

2. CSR Committee
It clarifies the Obayashi Corporation's basic stance on
CSR (corporate social responsibility, including
activities for environmental preservation and climaterelated matters) and promotes CSR activities
throughout the corporation. The President chairs thecommittee and it consists of the executive in chargeof environmental actions and other officers. In termsof climate-related matters, it engages in "reviewing
and instructing strategy," "reviewing and instructing
major action plans," "reviewing and instructing risk
management policy," "monitoring how goals are
implemented and achieved," and "setting goals foraddressing climate-related issues and monitoring
their progress," which has allowed it to contribute to
the supervision of climate-related matters by revising
the Obayashi Green Vision 2050, which wasformulated as a medium- to long-term environment
vision in 2011, into the Obayashi Sustainability Vision
2050 in FY2020.3 by incorporating not only E(environment) but also S (society) and G(governance) elements, as well as disclosing
information based on the TCFD proposal.
3. Environmental Management Expert Committee
This is an organization under the CSR Committeethat is in charge of "matters of proposing andimplementing measures for the operation of theenvironmental management system," "matters ofgrasping how measures for the operation of theenvironmental management system are
implemented," and "matters of gathering andreconciling the opinions of relevant departments forthe promotion of measures for the operation of theenvironmental management system." It is chaired by
the executive in charge of environmental actions and5

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

consists of environment managers from eachbusiness division. It reviews and instructs strategies
and action plans based on environment-related data
gathered and analyzed from the whole corporation,
defines performance goals, and monitors how they
are implemented and achieved. In terms of climaterelated matters, it engages in "reviewing andinstructing major action plans," "reviewing andinstructing risk management policies," "defining
performance goals," "monitoring how the goals are
implemented and achieved," and "supervising the
progress toward goals for addressing climate-related
issues," which has allowed it to contribute to thesupervision of climate-related matters by holding
management reviews twice a year to approve thesetting and revising of environment goals as well as
issue reviews and instructions about environmental
preservation activities to the overall environmental
manager and environmental managers in thecorporation and all our branches.
4. Liaison Conference for All Branch Environmental
Managers
This is an organization under the Environmental
Management Expert Committee that promotes
instructions of the CSR Committee and theEnvironmental Management Expert Committee. It is
attended by the executive in charge of environmental
actions, the overall environmental manager, and theenvironmental managers in the corporation and all
our branches. In terms of climate-related matters, it
engages in "reviewing and instructing major actionplans," "defining performance goals," "monitoring
how goals are implemented and achieved," and"setting goals for addressing climate-related issues
and monitoring their progress," which has allowed it
to contribute to the supervision of climate-related
matters by reviewing and analyzing theachievements of environmental preservation
activities in the corporation and all our branches.

C1.1d(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board member(s)have competence

Criteria used to assess competence of board member(s) on
climate-related issues
6Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

on climate-related
issuesRow1 Yes

Since 1999, Obayashi Corporation has been operating an ISO 14001compliant environmental management system in all its branches andorganizations, primarily in its main businesses of civil engineering andconstruction. The system has established environmental targets and is
working to combat climate change by reducing CO2 emissions andwaste. Since it was founded, the Company has also continued todevelop technologies to enhance earthquake and fire resistance,
providing resilient buildings and social infrastructure that can withstanddisasters. Since 2011, the Company has also been developing its

renewable energy business, contributing to society by supplying
green power.
One of the Company’s criteria for evaluating the appointment of
directors is whether they have extensive experience of and insight
into corporate management and the Company’s business areas.
Therefore, the Company has determined that directors’ extensive
experience in its civil engineering and construction and renewableenergy businesses is sufficient to demonstrate their competence inclimate change issues.
The President has extensive experience in addressing climate change
issues and promoting renewable energy projects as the head of theBusiness Innovation Office since 2011 and of the Technology Business
Creation Division since 2014. He also chairs the Board of Directors(oversight of climate-related risks and opportunities) and the CSR
Committee (formulation of basic policies, formulation of measures, andevaluating implementation to promote CSR activities, including
activities related to climate-related issues).
The Executive Vice President has extensive experience in overall
branch management, including environmental activities, as Executive
Officer and Deputy General Manager of the Civil Engineering
Construction Division of the Tokyo Head Office since 2011 andExecutive Officer and General Manager of the Shikoku Branch since2015. Since FY2020, he has been a member of the Board of Directors(overseeing climate-related risks and opportunities) and the CSR
Committee (formulating basic policies, developing measures, andevaluating implementation to promote CSR activities, including
activities related to climate-related issues) as the director in charge ofthe environment.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Name of the position(s) and/or
committee(s)Responsibility

President

Both assessing and managing More frequently thanclimate-related risks andquarterly
opportunities

Other C-Suite Officer, please specify
Executive Officer in charge of theEnvironment (Executive Vice President
and Representative Director)

Both assessing and managing More frequently thanclimate-related risks andquarterly
opportunities

Corporate responsibility committee

Both assessing and managing Annually
climate-related risks andopportunities

1

Frequency of reportingto the board on climaterelated issues

1CSR Committee

C1.2a(C1.2a) Describe where in the organizational structure this/these position(s) and/or
committees lie, what their associated responsibilities are, and how climate-related
issues are monitored (do not include the names of individuals).
The Obayashi Corporation has a CSR Committee that consists of several directors andexecutives, including the executive in charge of environmental actions (Representative
Director and Executive Vice President), chaired by the Representative Director andPresident. The committee is tasked with clarifying the Obayashi Corporation's basic stanceon CSR (corporate social responsibility, including activities for environmental preservationand climate-related matters) as well as promoting CSR activities throughout the corporation
through "1. matters of formulating the corporation's basic policy on CSR," "2. matters ofproposing policies to promote CSR activities," and "3. matters of evaluating theimplementation of CSR activities." When it comes to climate-related matters, the committee
makes annual reports about the results of monitoring CO2 emissions based on reports
submitted by the Environmental Management Expert Committee (chairman: executive incharge of environmental actions: Representative Director and Executive Vice President),
which is a subordinate organization. From this, the CSR Committee (chairman:
Representative Director and President) has final responsibility for evaluating and monitoringclimate-related matters.

The following are the organizations that engage in climate-related matters with the involvementof the Representative Director and President as well as the responsibilities of thoseorganizations.
・Members of the Board of Directors
The Obayashi Corporation has a Board of Directors that consists of all directors. The board
meets 15 times a year and oversees climate-related risks and opportunities.
・Members of the CSR Committee

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The following are the organizations that engage in climate-related matters with the involvementof the executive in charge of environmental actions (Representative Director and Executive
Vice President) as well as the responsibilities of those organizations.
・Members of the Board of Directors
The Obayashi Corporation has a Board of Directors that consists of all directors. The board
meets 15 times a year and oversees climate-related risks and opportunities.
・Members of the CSR Committee
The Obayashi Corporation has a CSR Committee that consists of several directors andexecutives, including the executive in charge of environmental actions (Representative Directorand Executive Vice President), chaired by the Representative Director and President. The
committee is tasked with clarifying the Obayashi Corporation's basic stance on CSR (corporatesocial responsibility, including activities for environmental preservation and climate-related
matters) as well as promoting CSR activities throughout the corporation through "1. matters offormulating the corporation's basic policy on CSR," "2. matters of proposing policies to promote
CSR activities," and "3. matters of evaluating the implementation of CSR activities." When it
comes to climate-related matters, the committee makes annual reports about the results ofmonitoring CO2 emissions based on reports submitted by the Environmental Management
Expert Committee (chairman: executive in charge of environmental actions: Representative
Director and Executive Vice President), which is a subordinate organization.
・ Members of the Environmental Management Expert Committee
The Obayashi Corporation has an Environmental Management Expert Committee that ischaired by the executive in charge of environmental actions (Representative Director andExecutive Vice President) and is subordinate to the CSR Committee. Moreover, theObayashi Corporation has an "environmental management system" in place to be able tocontribute to building a society where sustainable development is possible, by minding theenvironmental impact of all our business activities and working to preserve theenvironment. The expert committee is in charge of the following matters: "1. matters ofproposing and implementing measures for the operation of the environmental management
system," "2. matters of grasping how measures for the operation of the environmental
management system are implemented," "3. matters of gathering and reconciling theopinions of relevant departments for the promotion of measures for the operation of theenvironmental management system" and "4. matters of providing affiliated companies with
instruction and cooperation regarding the aforementioned matters as needed." Theexecutive in charge of environmental actions, who chairs this expert committee, is
responsible for taking various actions with regard to the Obayashi Corporation's
environmental management system, including addressing climate-related matters (such as
evaluation, supervision, etc.). With regard to climate-related matters, the expert committee
receives reports about energy usage collected and tallied on a semi-annual basis and CO2
emissions calculated from those figures from the "overall environmental manager"(General Manager of the Environmental Management Department of the Safety, Quality &Environment Division in the Head Office [environment/sustainability manager]) as well as
monitors these activities.
（(References) "overall environmental manager" "environmental managers"
Moreover, the Obayashi Corporation has an "environmental management system" in place tobe able to contribute to building a society where sustainable development is possible, by

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

minding the environmental impact of all our business activities and working to preserve theenvironment. The General Manager of the Environmental Management Department of the
Safety, Quality & Environment Division in the Head Office (environment/sustainability manager)
is appointed as "overall environmental manager." The overall environmental manager follows
the instructions of the Environmental Management Expert Committee, which is an organization
under the CSR Committee, and works to establish, implement, and maintain the environmental
management system in all branches. Moreover, the head of construction at each branch(environment/sustainability manager) is also appointed "environmental manager" of thatbranch. The environmental manager follows the instructions of the overall environmental
manager and works to establish, implement, and maintain the environmental management
system in their branch. Further, the overall environmental manager and the environmental
managers have various obligations regarding actions associated with the Obayashi
Corporation's environmental management system, including addressing climate-related
matters. With regard to climate-related matters, the overall environmental manager leads theEnvironmental Management Department of the Safety, Quality & Environment Division as theadministration office in tallying energy use based on semi-annual reports from the branchenvironmental managers as well as monitoring the situation together with the CO2 emissions
calculated from those figures. Reports about all branches and their results are also given at the
Liaison Meeting for All Branch Environmental Managers, which is held twice a year.

C1.3(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives
for the managementof climate-related
issuesRow1 Yes

Comment

Obayashi Corporation provides incentives for all employees,
environmental officers, and directors to manage climate-related
issues. The management of climate-related issues uses
environmental targets in the environmental management system(EMS), such as reduction of CO2 emissions at the design andconstruction stages and achievement of medium- and long-term
performance indicators, to increase corporate and shareholder value.

C1.3a(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).
Entitled toincentive

Type ofincentive

Activity
incentivized

Comment

Director on
board

Monetary
rewardEmissions
reduction
project

Directors are paid performance-linked stock-based
compensation to raise their awareness of the need tocontribute to medium- and long-term performance
improvement and to increase corporate and shareholder

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

value. The amount of compensation varies based on
factors such as the degree of achievement ofpredetermined performance indicators and responsibilities
in accordance with their position. Of this compensation, themedium- to long-term performance-linked stockcompensation, which is paid according to the achievementof medium- to long-term performance indicators, is also
linked to corporate performance against climate-related
sustainability indicators.
Other CSuite
Officer

Monetary
rewardEmissions
reduction
project

The director in charge of the environment (Representative
Director and Executive Vice President) is paid
performance-linked stock compensation with the aim ofenhancing his awareness of the need to contribute tomedium- and long-term performance improvement and toincrease corporate and shareholder value. The
compensation varies based on his job responsibilities
according to his position and the achievement ofpredetermined performance indicators. Of thiscompensation, the medium- to long-term performancelinked stock compensation, which is paid according to theachievement of medium- to long-term performanceindicators, is also linked to corporate performance against
climate-related sustainability indicators.

All
employees

Monetary
rewardEmissions
reduction
project

The Obayashi Corporation has an "environmental
commendation" system that recognizes especially
meritorious and otherwise exemplary activities in three ofour environment-related initiatives (low carbon, recycling,
coexistence with nature). The judgment criteria of the"environmental commendation" include environmental
impact (reduce greenhouse gas emissions, reduce energyuse, improve efficiency, etc.). As part of thecommendation, the awardee is presented with a certificate
as well as prize money or a prize item.

All
employees

Monetary
rewardEmissions
reduction
project

One of the items in the employee performance review is"has performed work in consideration of the environment,"
which is reflected in each employee's salary. "Work in
consideration of the environment" includes activities
relevant to reducing CO2 emissions at the design andconstruction stages, which is an EMS environment goal of
the Obayashi Corporation.

C2 Risks and opportunities
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C2.1
(C2.1) Does your organization have a process for identifying, assessing, andresponding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
Time horizon

From (years)

To (years)

Short-term

01Medium-term

1

3Long-term

331Comment

C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
Substantive financial or strategic impact is defined as follows. The evaluation criteria forimportance/impact are impact in case of occurrence, risk of occurrence in the short, medium,and long terms (frequency), impact on consolidated operating income as an indicator of
financial impact, and qualitative evaluation of consistency with the Obayashi Corporation's
Basic Principles, business activities, and business strategy. Rising construction costs in ourconstruction business, which is our core business and accounts for more than 90% of net
sales, is tantamount to rising cost of goods sold, which has a negative impact on consolidated
operating income. Changes in consolidated operating income are an element that causes a
considerable financial impact when we identify and assess risks and opportunities. Moreover,
our consolidated operating income was 410billion yen as of March 2022, but fluctuations indomestic construction demand are having a short-term impact on our building construction
business and a medium- to long-term impact on our civil engineering business.

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climaterelated risks and opportunities.

Value chain stage(s) covered
Direct operations
Upstream
Downstream

Risk management process
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Integrated into multi-disciplinary company-wide risk management process

Frequency of assessment
More than once a year

Time horizon(s) covered
Short-term
Medium-termLong-term

Description of process
The Obayashi Corporation incorporates techniques for identifying, evaluating, andmanaging complex and society-wide risks and opportunities in the organization's
processes as part of overall risk and opportunity management, thereby identifying,evaluating, and managing climate-related issues.
As part of the Obayashi Corporation's methods for identifying, evaluating, andmanaging complex and society-wide risks and opportunities, the CSR Committee
examines impact on the entire supply chain, including the whole group, suppliers,
and clients, and what the corporation needs the most in the short, medium, and longterms, through which they are able to identify and evaluate risks and opportunities
and finally determine ESG Materialities, including climate-related ones. The CSR
Committee chaired by the President oversees two other committees, namely the
Public Relations Expert Committee and the Environmental Management Expert
Committee. It receives reports on the identification and evaluation of various risks
and opportunities from these two committees and manages them from acomprehensive standpoint. Twice a year, the Environment Expert Department
identifies and evaluates short-term risks and opportunities that are alreadymanifesting and that affect the group and value chain as a whole. The Environmental
Management Expert Committee, which meets twice a year and is chaired by the
executive for environmental actions, likewise reviews key measures in environmental
management, makes minor adjustments to target levels, and ensures that the latest
information is reflected and evaluated. The results of their deliberations are reported
to the CSR Committee, which is the supreme decision-making body forenvironmental measures.
Regarding medium- to long-term risks and opportunities, including short-term risks
to the entire Group and value chain, the department specializing in ESG identified 22"ESG issues" from among 300 issues in the ESG field and prioritized them based ona two-pronged assessment of stakeholder interest and their degree of importanceand impact in terms of business strategy or finance in the Obayashi Group.
The CSR Committee then narrows it down to six items after considering the
Obayashi Corporation's Basic Principles and business strategies. One of these ESG
Materialities is "forming a society that cares about the environment."
In its efforts to address climate-related risks and opportunities, the CSR Committee
develops ESG Materiality action plans and KPIs (numerical targets), incorporates theminto business plans, and asks the departments to reflect them in their key measures.
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The ESG expert department conducts performance reviews twice a year and a detailed
analysis once a year to measure progress toward departmental numerical targets, all ofwhich is evaluated by the CSR Committee once a year.
[Processes for identifying and evaluating climate-related risks and opportunities]
Also with regard to methods for identifying and evaluating climate-related risks andopportunities, we identify and evaluate the materiality of risks and opportunities
according to definitions and indicators for serious impact, and define risk responses
and rankings in the same way as for the aforementioned risks and opportunities that
affect the entire value chain.
The evaluation criteria for importance/impact are impact in case of occurrence, riskof occurrence in the short, medium, and long terms (frequency), impact on
consolidated operating profit as defined for serious financial impact, and qualitativeevaluation of consistency with the Obayashi Corporation's Basic Principles, businessactivities, and business strategy.
The Obayashi Sustainability Vision 2050, which was revised and announced onJune 24, 2019, explains how to manage long-term risks and opportunities of three
years or more until 2050 by taking into account various social trends and changes inthe business environment of the Obayashi Group as well as by conducting revisions
and control with management and external experts. At the intermediate target years of2030 and 2040, we will set the targets for 2040-2050 as well as consider the need forrevising the Vision. Moreover, we have implemented scenario analyses for our fourmain domestic businesses in 2030 based on the TCFD proposal, identifying andevaluating risks and opportunities to understand the mid- and long-term impact ofclimate-related challenges on the businesses.
[Processes for responding to climate-related risks and opportunities]
For methods to respond to climate-related risks and opportunities, we rank theidentified risks and opportunities as follows according to the identification andevaluation results from the aforementioned [Processes for identifying and evaluatingclimate-related risks and opportunities]. They are managed by also considering andreflecting financial impact on the medium-term business plans formulated every three
to five years. The responsible departments formulate their own priority
implementation plans based on the response measures adopted. These response
measures are then developed into specific measures for which progress is reported
along with action plans and KPIs to the CSR Committee once a year.
・Tasks with high importance, impact, and response for the Obayashi Group as wellas high stakeholder interest and response from other companies[Risks] Responding with control measures [Opportunities] Responding by strengthening
priority initiatives
・Tasks with high importance, impact, and response for the Obayashi Group as well as
low stakeholder interest and response from other companies[Risks] Responding with reduction measures[Opportunities] Responding by
actualizing priorities and communicating importance・Tasks with low importance, impact, and response for the Obayashi Group as wellas high stakeholder interest and response from other companies
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

[Risks] Responding with transfer measures[Opportunities] Responding by
proposing and implementing responses and measures
・Tasks with low importance, impact, and response for the Obayashi Group as well
as low stakeholder interest and response from other companies[Risks] Responding with acceptance measures[Opportunities] Responding byobserving trends and ascertaining opportunities

C2.2a(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
Risk type

Current
regulation

Relevance & Please explain
inclusion
Relevant,
alwaysincluded

Design-build projects account for approximately 50% of Obayashi'sbuilding construction orders (50% of design–build ratio in FY2021).
Therefore, we recognize that the expansion of the scope of the current
regulations (the Building Energy Efficiency Act) and the increase in thelevel of regulations will always be relevant and included as a short-termrisk that is becoming apparent. This is because if the level of energy
conservation design technology possessed by Obayashi Corporation
declines, the accumulated know-how through new technologicaldevelopment, etc. is insufficient, and the solution proposal capability
declines, then opportunities will be lost to receive orders for design andconstruction projects.
These issues are identified by the environment expert department
every half a year, while the Environmental Management Expert
Committee, which also convenes once every half a year, reflects this in
their revisions of key measures and minor adjustments of target levels.
The revised Building Energy Efficiency Act enacted in April 2021 is
expected to expand the obligation to adhere to energy efficiency
standards from large buildings of 2,000 m2 or more to medium-sizedbuildings of 300 m2 or more, as well as further raise the regulation levelin the future. Unless we develop and expand low-emission construction
and services, this will reduce our ability to build and offer services
through design and construction methods that utilize our technologicaland managerial abilities to contribute to reducing CO2 emissions, which
will decrease demand for our products and services, thereby cutting
profits. There is a fear that we may lose design and construction orders
if we accumulate insufficient know-how and our ability to come up withsolutions goes down, due to various shortages in energy-saving design
technologies and delays in new technological development.

Relevant,
alwaysincluded

We recognize that new regulations (e.g., the introduction of a fullyfledged carbon tax in Japan) are relevant and always included as a
medium-term risk of increased raw material and other construction

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

costs, especially in relation to our significant Scope 1 emissions interms of our emission rate. These are analyzed in detail approximately
every three years in line with the new GHG reduction target (FY2030
target) established in March 2022. They are also reflected in the review
carried out to assess the business environment surrounding the
Obayashi Group in the Mid-term Business Plan to be established every
three to five years, the formulation of management foundation
strategies, and the review of seven initiatives (action plans) for CO2
emission reduction. Future introduction of a carbon tax or other tax
could increase the cost of raw materials and other construction costs.

Emerging
regulation

Technology

LegalMarketRelevant,
alwaysincluded

We recognize that the impact of technology (e.g., trends in newtechnologies related to renewable energy) is relevant and always
included as a medium-term risk over the next one to three years in thatthe government's social infrastructure development policy and energy
strategy to utilize renewable energy, such as solar, offshore wind,geothermal, biomass, and hydrogen, will lead to an increase in thenumber of companies entering the market and intensified technicalcompetition. Hence, Obayashi's proprietary technology will become
obsolete, resulting in a loss of overall competitiveness as a contracting
business. These are analyzed in detail approximately every three years
in line with the level of achievement of the new GHG reduction target(FY2030 target) established in March 2022 and reflected in theMedium-term Management Plan to be formulated every three to five
years and in the seven-point action plan for CO2 emission reduction.
There is a risk that the Obayashi Corporation loses its technologicaladvantage and our comprehensive competitiveness as a contractor due
to new technological trends.

Relevant,
alwaysincludedWith regard to legal risk, in the event that a construction project
constructed by Obayashi does not meet the performance requirements
for their buildings and the client’s equipment, the company may besued for breach of contract in the medium to long term, regardless ofwhether it is the fault of Obayashi, and there is a risk of litigation over
who is to blame and the percentage of responsibility. In addition, we
recognize that the risk of climate change-related lawsuits is increasing.
Clients and customers are likely to increasingly demand compliancewith CO2 emission reductions at the construction stage as well as
performance guarantees for energy-creating and energy-saving
equipment and devices that are expected to reduce CO2 emissions
during the operation of the building as a condition for ordering new
construction and renovation work. We recognize these litigation risks as
medium- and long-term risks that are relevant and always included.

Relevant,
alwaysincluded

As a background of market risk, the Japanese government's Green
Growth Strategy, which aims to achieve carbon neutrality by 2050, has
incorporated the average ZEH/ZEB (Net Zero Energy Building: abuilding that is carbon neutral without using emissions trading, etc.) for
new homes and buildings in 2030 into its timetable, and the market
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

need for ZEB in buildings is increasing. On the other hand, equipmentthat improves environmental performance, such as ZEB conversion,
significantly drives up construction costs, making the development oftechnology to enhance performance and reduce costs an urgent task.
Obayashi Corporation sees the expanding needs for energy-saving andrenewable energy technologies in the scenario analysis based on
TCFD recommendations as an opportunity. It is promoting thedevelopment and practical application of ZEB technology and othertechnologies that achieve business feasibility and comfort.
In the construction market, including environmental technologies, theCompany is likely to be exposed to severe development and pricecompetition over the medium to long term, and we recognize thatmarket risk in relation to climate change is a medium- to long-term riskthat is relevant and always included. In the last fiscal year, the entire
Obayashi Group invested approximately 15.8 billion yen in R&D
expenses, including ZEB. Customers demand high-quality, low-costbuildings, but if a competitor offers a lower-cost ZEB, there is a risk thatsales will not increase and the investment in development costs will not
be recouped. In addition, there is a possible risk that intensifying pricecompetition will not result in increased profits even for high-quality
products.

Reputation

AcutephysicalRelevant,
alwaysincluded

Reputation risk includes external evaluation of climate change
initiatives, including external evaluation by CDP and others, evaluationof recent ESG initiatives, and evaluation of climate-related information
disclosure in line with TCFD recommendations. We recognize that
reputation risk is relevant and always included as a short-term risk thatis already becoming apparent, as some environmental measures may
cause a decline in external evaluation and increase financing costs.
These issues are identified by the environment expert department
every half a year, while the Environmental Management Expert
Committee, which also convenes once every half a year, reflects this in
their revisions of key measures for environmental management. The
results of their deliberations are reported to the CSR Committee, whichis the supreme decision-making body for environmental measures. As
an example, lower "external recognition" might lead to higher financial
costs, so it is because of this relation that it is included in theevaluation.

Relevant,
alwaysincluded

Acute physical risks (e.g., increased storms such as typhoons) may
cause construction schedule delays in terms of their impact on
Obayashi's nationwide network of offices and construction sites.
Therefore, they are short-term risks that are already materializing andwill always be included.
These issues are identified by the environment expert department
every half a year and then annually evaluated by the CSR Committee,
which is the supreme decision-making body for risk management.
These decisions are reflected in revisions of key measures for risk
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

management. More "storms due to typhoons, etc." risks delaying
construction in western Japan where we have many important clients,
and in recent years, this risk has begun expanding to all of Japan.
Relevant,
alwaysincluded

Chronic
physical

Chronic physical impacts (e.g., maximum temperature increase) arerecognized as relevant and always included as a short-term risk that isalready becoming apparent, as they may reduce work efficiency andincrease labor costs due to the deteriorating work environment in termsof the harsh conditions for employees and workers, including personnel
working on construction sites. For these, data on the occurrence ofheatstroke are monitored monthly by Obayashi's Safety Specialist
Department, and environmental data are compiled and reported semiannually by the Environmental Specialist Department. In addition, theEnvironmental Management Specialist Committee, which also meetssemi-annually, reviews and reflects on the key measures forenvironmental management. The results of their deliberations arereported to the CSR Committee, which is the supreme decision-making
body for environmental measures. Worsening working environments
risk decreasing work efficiency and increasing labor costs, so it isbecause of this relation that it is included in the evaluation.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

ID
Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk type and Primary climate-related risk driver
Chronic physicalRising mean temperatures

Primary potential financial impact
Decreased revenues due to reduced production capacity

Company- specific description

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The working environment in construction is often very hot, such as a place in direct
sunlight, somewhere lacking air conditioning, a closed space with little ventilation, or
somewhere with hot materials and machines. Obayashi Corporation has many importantcustomers in western Japan, centering on Osaka, where the company was founded.
Obayashi's construction work, equivalent to nearly 90% of domestic sales in FY2021, is
performed in the west of the Kanto region, which accounted for 80% of the cases ofheatstroke in FY2021. Deterioration of the work environment due to rising temperatures
can cause decreasing productivity at construction sites in the west of the Kanto region
due to an increase in the number of heatstroke cases at construction sites and theresulting decrease in work efficiency and increase in the number of workers who areabsent from work, as well as the increased risk of accidents occurring. In Obayashi
2021, there were 152 cases of heatstroke (203 in FY2020) and 14 cases of one or moredays of absence (24 in FY2020). When temperatures exceed reference values at aconstruction site and there is an increased risk of heatstroke, work is temporarilysuspended. This has a financial impact of lowering site productivity by about 16 million
yen. This creates a risk of relatively minor financial impact when identifying andevaluating risks based on the definition of severe financial impact.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
Low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
15,955,200
Potential financial impact figure -minimum (currency)
Potential financial impact figure - maximum (currency)

Explanation of financial impact figure
When temperatures exceed reference values at a construction site and there is anincreased risk of heatstroke, work is temporarily suspended. This has a financial impactof lowering site productivity.
Number of heatstroke cases in our company in 2013, the largest number in recent years(277 cases) x 2 days (assumed to be the number of lost workdays per case) x amountequivalent to daily allowance (24,000 yen) = 13,296,000 yen
The number of days of absence from work per case is assumed to be 2 days (estimatedbased on Obayashi Corporation's table of heat-related accidents in FY2021).

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The amount equivalent to daily wages is assumed to be 24,000 yen (estimated from the2022 unit labour cost for public works design).
It is assumed that there will be a 20% increase in the number of occurrences due torising temperatures caused by global warming (estimated from "Climate Change
Observation, Prediction and Impact Assessment Integrated Report 2018: Climate
Change in Japan and its Impacts" by the Ministry of the Environment, Ministry of
Education, Culture, Sports, Science and Technology, Ministry of Agriculture, Forestry
and Fisheries, Ministry of Land, Infrastructure and Transport, and Japan Meteorological
Agency).
13,296,000 yen × 0.2 = 2,659,200 yen
Increased cost due to workers' absence from work due to heatstroke: 13,296,000 yen +2,659,200 yen = 15,955,200 yen

Cost of response to risk
1,326,000,000

Description of response and explanation of cost calculation(Situation) The following three items of our Health and Safety Policy were establishedbased on the basic principle of "valuing everyone we come in contact with in ourbusiness."
1. Comply with the Industrial Safety and Health Act, other relevant laws, and Obayashi
Corporation's internal rules.
2. Appropriately implement and use Obayashi's Occupational Health and Safety
Management System.
3. Help improve the independent health and safety management efforts of suppliers.
In accordance with this policy, Central Guidelines for Health and Safety Measures
along with priority measures are formulated under the leadership of the top
management every year, based on which each branch makes their own "guidelines forhealth and safety measures" and implement their own concrete measures. In the"heatstroke prevention measures" of the Central Guidelines for Health and Safety
Measures, each construction site is asked to measure WBGT values (heat index) as
well as inform workers about these values and warn them about the heatstroke risk.
Moreover, if the reference values are exceeded or may be exceeded, they shouldmake sure to implement prevention measures, such as securing ventilation andchanging work tasks and work place. These are based on the Guidelines for Basic
Measures to Prevent Heatstroke in the Workplace of the Ministry of Health, Labour andWelfare.

（Challenges）Conventional heatstroke countermeasures have been limited to alerting
people to use the WBGT (heat index) as an indicator and encouraging them to drink
water, take salt, and take breaks. However, the onset of heatstroke varies from person
to person and depends on the work’s nature and location. The challenge has been tocomprehensively assess these factors and communicate the dangers individually. It wasalso hoped that one of the solutions would be to monitor the physical condition of eachworker, such as the heart rate of each worker.
（Actions）In February 2015, we worked together with NTT Communications to develop
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

workwear using the functional material hitoe. The wearing of these enables vital data to
be acquired, such as the heart rate of workers on actual construction sites in real time.
In June 2015, a system called "Heat Index Watcher" was also developed to continuously
measure WBGT (heat index) at multiple locations on site and centrally manage theinformation at the construction office. By monitoring the measured WBGT values andworkers' heart rates, the system operates to reduce risk by verifying the usefulness ofrisk prediction before the occurrence of heatstroke, etc. This was seen as an action to
be taken by FY2021 in accordance with the Mid-term Management Plan 2017; full-scale
operation of the Heat Index Watcher began in FY2019, and in FY2021, the system wasintroduced at nearly 200 construction sites throughout Japan. The company also
continued to roll out the Envital system.
（Results）In July 2019, we updated the Envital system that manages worker safety bycentrally managing the health of workers at construction sites and the conditions of theirwork places. We greatly improved convenience and utility, for example by switching thebiosensors making up the system from shirt-type to wristband-type heart rate sensors,obtaining position information to improve management functionality, and adding an
emergency alert function. In FY2021, the Heat Index Watcher alerts were improved to
be delivered directly to "direct," a messenger application that allows communication withoutside parties such as partner companies. As a result, the number of heatstroke cases
in FY2021 decreased by 51 compared to FY2020.
Management costs have been included in the following amounts since FY2021
environmental accounting: overhead costs related to R&D: approx. 1,153 million yen +"monitoring and measurement costs": 167 million yen + "environmental damage
response allowance, insurance premium costs": 6 million yen = 1,326,000,000,000 yen(1,326 million yen).

Comment

ID
Risk 2

Where in the value chain does the risk driver occur?
Direct operations
Risk type and Primary climate-related risk driver
Acute physical
Storms (including blizzards, dust storms, sandstorms)

Primary potential financial impact
Increased direct costs

Company- specific description
Sudden typhoons and floods are a major risk in the construction business, which is
the Obayashi Corporation's primary business, that can lead to landslides indeveloped land, flooding and inundation of underground construction sites, damage
to buildings, structures, materials, and construction equipment, as well as
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

construction delays.
Big typhoons hit locations across Japan in 2017 and 2018, causing damage to all ourdomestic bases, but the biggest damage was done in the Kansai area. Obayashi
Corporation is a member of the Osaka Umekita 2nd Phase Redevelopment Project(provisional name), which started construction in December 2020 and was still underconstruction in FY2021, as the developer and builder, and the risk impact of typhoon
damage will be significant. If physical risks such as sudden typhoons or floods occur
and their severity increases, it might be necessary to pay for repairs to storm damage orhire more staff to make up for construction delays, thus increasing capital costs causing
a financial impact of about 2.8 billion yen. This creates a risk of severe financial impact
when identifying and evaluating risks based on the definition of severe financial impact.

Time horizon
Short-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
2,800,000,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
Physical risks, such as sudden typhoons or floods that potentially increase in severity, havea financial impact due to increased capital costs. as additional labor costs are incurred to
repair damage caused by storms or recover from delays if the construction schedule isdelayed.
The following costs are estimated for damage repair and construction period delay recovery:
Obayashi Corporation's domestic civil engineering sales in FY2021: 346.8 billion yen x 0.2%
= 693,600,000 (about 700 million yen); Obayashi Corporation's domestic construction sales
in FY2021: 1,059.9 billion yen x 0.2% = 2,120,000,000 (about 2.1 billion yen)
[0.2% = the degree of impact of large-scale natural disasters on GDP in developed countries(Source: Tokio Marine & Nichido Global Warming Seminar "The Role of Finance andInsurance in Response to Climate Change," November 18, 2008)]

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Cost of civil engineering construction damage repair and of construction period delay
recovery: 700 million yen + building construction damage repair cost and construction period
delay recovery cost: 2.1 billion yen = 2,800,000,000,000 yen (2.8 billion yen)

Cost of response to risk
173,000,000

Description of response and explanation of cost calculation(Situation, challenges) If physical risks such as sudden typhoons or floods occur andtheir severity increases, it might be necessary to pay for repairs to storm damage or hire
more staff to make up for construction delays, thus increasing capital costs causing afinancial impact.
(Actions) For disaster countermeasures at construction sites, Obayashi Corporation has
decided to operate to reduce risk by implementing risk response measures in thefollowing ways: (1) Prediction and prevention, (2) Avoiding and minimizing damage, and(3) Risk shifting. These are seen as actions to be taken until FY2026 based on the midto long-term management plan.
(1) Prediction and prevention (ordinary times): Establish a typhoon countermeasures
headquarters in the head office and every branch to gather detailed information about
typhoons and bomb cyclones from the Japan Meteorological Agency and private datacompanies. When Typhoon No. 14, formed east of the Philippines, approached westernJapan on September 7, 2021, the Disaster Response Headquarters received the first andsecond reports from private data companies. Having made assumptions about several
patterns, depending on the size of the risk, such as the proximity of the typhoon, it
assigned standby personnel and support organizations by area accordingly.
(2) Avoiding and minimizing damages (typhoon approaching or after passing): On
September 17, 2021, measures to prevent the scattering of materials and equipment
were taken at the Osaka Head Office construction site based on a predeterminedchecklist. Under the direction of the Osaka Head Office Construction Department,
measures such as personnel standing by were accordingly taken at the construction
site. In case of damage to buildings that were completed or under construction, they
were reported to the head office and support was provided to buildings in need ofmaterial or personnel support through the aforementioned support organizations, basedon designated procedures. After the typhoon passed, information about damages andclients was collected and aggregated according to the above procedures.
(3) Risk-shifting: Standard construction contracts will have the client (orderer) bear risks
relating to serious damage due to natural disaster, but our construction insurance, etc.
provided compensation that allowed us to shift and reduce risk.
(Results) The following risk mitigation and shifting were implemented in response to thephysical risk caused by Typhoon No. 14.
1) Prediction and prevention
2) Damage avoidance and minimization
3) Risk transfer

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Management costs are included in "Monitoring and measurement costs": 167 million yen+ "Allowance for environmental damage and insurance costs": 6 million yen =173,000,000,000 yen (173 million yen) of FY2021 environmental accounting.

Comment

ID
Risk 3

Where in the value chain does the risk driver occur?
Upstream
Risk type and Primary climate-related risk driver
Emerging regulation
Carbon pricing mechanisms

Primary potential financial impact
Increased direct costs

Company- specific description
Obayashi Corporation was Japan's second largest construction company in terms ofrevenue size in FY2021, with its construction business accounting for about 93% ofconsolidated sales. In the construction business, the company excels in difficult
construction projects, such as skyscrapers and deep underground tunnels, using its
advanced technological capabilities. These construction sites consume a large amountof energy during construction. In FY2021, about 55,000 kl/year of light oil was used forthe operation of construction equipment, and about 96,000 MWh/year of electricity wasused for the welding of reinforcing bars and steel frames, site lighting equipment, andoperation of electric construction equipment. The energy consumption of all ouroperations is equivalent to 147,000 tons of CO2 emissions in Scope 1 and 48,000 tonsin Scope 2, with Scope 1 accounting for about 75%. In addition, the manufacture ofsteel, cement, and other major construction materials consumes a large amount ofenergy, and the materials we procure were equivalent to approximately 1.44 million tonsof CO2 emissions in FY2021 as Scope 3 Category 1. Scope of CO2 emissions. If acarbon tax is imposed, although the rules for taxing the category are not clear, it isassumed that the cost of energy and material procurement will increase, which will
directly lead to an increase in construction costs. Therefore, in the construction market,
there is a risk that business performance will be affected by how the price is passed on.
As a transition risk in the company's supply chain, if the carbon tax is introduced,
construction costs will increase by approximately 1.63 billion yen due to the additional
carbon tax on key materials and an increase of energy costs. This is a risk factor thathas a significant financial impact in identifying and assessing risk according to thedefinition of significant financial impact.

Time horizon
Medium-term
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
1,628,000,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)

Explanation of financial impact figure
Transitional risks for the Obayashi Corporation's supply chains consist of additional
construction costs if carbon taxes are introduced, energy costs increase, and the taxes
are levied on the principal materials. Emissions from the production of steel and cement
used by Obayashi Corporation in FY2021 were approximately 1.44 million t-CO. If pricepass-through of raw material costs to construction costs is not possible, this will
increase the construction cost price and impact revenue.
CO2 emissions from energy consumption during the company's construction of the
project were approximately 188,000 tons × additional global warming tax of 1,000 yen/tCO2 = 188,000,000 yen (188 million yen). CO2 emissions from steel and cement
production used by the company in FY2021 were approx. 1,440,000,000 tons-CO2 x
1,000 yen/t-CO2 = 1,440,000,000 yen (1,440 million yen).
188,000,000 yen (188 million yen) + 1,440,000,000 yen (1,440 million yen) =1,628,000,000 yen (1,628 million yen) is the carbon tax to be added.

Cost of response to risk
5,900,000,000

Description of response and explanation of cost calculation(Situation) As a construction company, the Obayashi Corporation is able to directlyreduce CO2 emissions at our own discretion by decarbonizing our facilities andbuilding low-carbon structures.
（Challenges）Obayashi Corporation has traditionally set a goal of reducing CO2
emissions by 85% by 2050 compared to 2013 levels through the development oftechnologies that contribute to rationalization and productivity improvements inconstruction that lead to energy reductions, as well as through ingenuity andingenuity at the construction site. In March 2022, new FY2030 GHG emission
reduction targets were set for SCOPE 1 and 2 of 46.2% reduction (compared to25

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

FY2019) and for SCOPE 3 of 27.5% reduction (compared to FY2019). With thisreduction target, the company committed to the SBT, a greenhouse gas emission
reduction target consistent with the Paris Agreement, and applied for certification.
(Actions) As an example of technological development that contributes to increased
productivity, we have developed the world-first Energy-saving Shield Construction
Method, which combines high-speed construction with reduced power usage whenconstructing tunnels by digging underground with a large cross-section shieldmachine, thereby realizing a highly efficient digging method that is about 25% fasterand combines about 30% less energy than conventional methods. Other targets are
set to reduce CO2 emissions through the use of LEDs for temporary on-site lighting,
the widespread use of high-efficiency construction heavy equipment, and education
on fuel-efficient driving. These CO2 emission reduction measures are to be
operationalized to reduce the risk of increased production costs due to changes in
input prices. This is seen as an action to be taken until FY2021 based on the Midterm Business Plan 2017.
（Results）In FY2021, we achieved a 17.9% reduction, as compared to our target of
a 15.0% reduction in FY2013.
Administrative costs are included in the R&D costs corresponding to the designphase of approximately 4.7 billion yen + indirect costs related to R&D of
approximately 1.2 billion yen = approximately 5,900,000,000,000 yen (5.9 billion yen)from Obayashi Corporation's non-consolidated environmental accounting in FY2021.

Comment

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

ID
Opp1

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Primary potential financial impact
Increased revenues resulting from increased demand for products and services

Company-specific description
In light of the Japanese government's policy target of carbon neutrality by 2050,
reducing CO2 emissions is generally considered an urgent global challenge.
One third of Japan's CO2 emissions are related to housing and buildings, and Obayashi
Corporation has an extremely important role to play in reducing GHG emissions from its
domestic construction business, which is its main business and accounts for threequarters of its consolidated sales. Obayashi Corporation is also actively responding to
demand for new ZEB and energy-efficient buildings, as well as energy-efficientrenovations such as improving equipment efficiency and enhancing building insulation,in order to reduce CO2 emissions at its facilities. Eco-Navi, which is a simulation
software for identifying the most effective combinations of energy-saving techniques toaccommodate client budgets and building information, has continued to evolve inparallel with progress in buildings and facilities since its creation in 1998. In addition toclinic and school versions, a new version is being developed to handle building
renovation and meet a variety of needs. The Thermal Shield Method, which uses paintthat has high sunlight reflectivity to keep surface temperature from rising, reflects theinfrared sunlight that shines on rooftops and such to reduce the air conditioning load
through thermal insulation and contribute to energy conservation.
Port Plus, a fire-resistant high-rise structure with all ground structural members(columns, beams, floors, and walls) made of wood, has a significantly lower
environmental impact than steel-frame or reinforced concrete structures. This is due tothe stable long-term fixation of CO2 through the use of wood and the CO2 reduction
effect throughout its life cycle, from material production through construction, demolition,and disposal. It is believed that Obayashi Corporation's know-how and ability to propose
solutions, accumulated through the development of technologies related to various otherenergy-saving construction methods, energy-saving design technologies, and newtechnologies, will increase opportunities to win orders to carry out ZEB and energyefficient renovations. By developing and expanding low-CO2-emission construction
products and services, the Company expects to increase construction output andservices (and increase revenues from increased demand for the products and services)
through design–build methods that can take advantage of the technical andmanagement capabilities that contribute to reducing CO2 emissions. The financial
impact of this opportunity is defined as the increase in construction volume and services
due to design–build of ¥311.4 billion. This constitutes an opportunity with tremendous
financial impact when identifying and evaluating opportunities based on the definition ofsevere financial impact.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
High
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
311,400,000,000

Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
By developing and expanding low-emission construction and services, we hope toboost our ability to build and offer services through design and construction methods
that utilize our technological and managerial abilities to contribute to reducing CO2
emissions (which will increase demand for our products and services, thereby
increasing profits).
We estimate the financial impact from this "opportunity" to be "increased construction
and services sales in construction design.
Estimated annual increase in orders of 296.6 billion yen: increase in architectural designand construction 296.6 billion yen[296.6 billion yen = (Percentage of building construction orders received in 2021:
1,186.5 billion yen, of which 50% is due to design–build) x 50% (assumed percentage of
those contributing to orders received)]
Increase in design and other services [14.8 billion yen = 296.6 billion yen (increase inarchitectural design work) x 5% (assumed design fee rate)]
Increase in construction volume and services due to design–build = 296,600,000,000
yen (296.6 billion yen) + 14,800,000,000 yen (14.8 billion yen) = 311,400,000,000,000
yen (311.4 billion yen)

Cost to realize opportunity
6,954,000,000

Strategy to realize opportunity and explanation of cost calculation（Situation）Obayashi Corporation is winning orders by ensuring clients understand thesuperiority of its ZEB and energy-saving technologies, which the Corporation owns, andby responding to the demand for ZEB, energy-saving buildings, and energy-saving
renovations.
（Challenges） To this end, the Company must continue to develop technologies tomeet the world's ZEB and energy conservation needs, discover demand, increase
opportunities to win orders, and improve the certainty of winning orders. In addition, theCompany must provide their customers with high-performance eco-friendly facilities tomeet the demand for new ZEB and energy-efficient buildings, as well as that for energyefficient retrofits such as improving equipment efficiency and enhancing building
insulation performance.
(Actions) Therefore, it was decided to operate to reduce risk by developing technologies
and providing solutions for (1) through (4). This is seen as an action to be taken until

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

FY2021 based on the Mid-term Business Plan 2017.
(1) (Competitive product planning as a comprehensive construction company) In 2011,
the Techno-Station (in the main building of Obayashi Technical Research Institute(Kiyose City, Tokyo) completed its basic plan to become a ZEB (zero energy building)with net-zero energy consumption by covering the energy needs using the facilities' own
renewable power generation. The Harumi 2-chome Project, designed and constructedby Obayashi Corporation and under construction in FY2021, aims to develop and put
into practical use ZEB technologies, such as reducing the heat load on the exterior skinand optimizing equipment and devices, by using operational data from existing
Obayashi Group-owned buildings. In addition, Port Plus, a fire-resistant high-rise
structure with all ground structural members (columns, beams, floors, and walls) madeof wood, was under construction in FY2021 as the company's next-generation training
facility. The use of 1,990m³ of timber for stable long-term fixation of CO2 (approx. 1,652
tons) and the reduction of CO2 by approx. 1,700 tons (approx. 40%) over the entire life
cycle from material production through construction, demolition, disposal, etc.
(compared to steel-frame construction) significantly reduces environmental impact
compared to steel-frame or reinforced concrete construction.
(2) (Enhancing our business promotion system to increase opportunities for orders
together with their accuracy) The Company has leveraged its accumulated construction
experience to discover and secure needs for new construction and the renovation ofenergy-efficient buildings by communicating with the clients through management andmaintenance of their building history databases, real estate asset management, andsupport for maintenance and management operations. In April 2020, a new generalsales headquarters was established at the head office. In March 2022, the Carbon
Neutral Solution Department was established to provide prompt, comprehensive, andeffective solutions to the diverse needs of customers for carbon neutrality.
(3) (Introducing and collecting records of consulting services relating to energy
conservation for clients) Since the 1990s, the company has been developing the Eco
Navi software system, which simulates effective building energy-saving methods basedon the performance of clients' existing facilities and operational records of energy use.
Moreover, it continued to provide consulting services in FY2021 to meet clients' needs
to save energy and ensure cost-effectiveness.
(4) (Enhancing our ability to propose designs and technological ability) In addition to theabove Eco-Navi use results, the Company is proposing reductions in CO2 emissions byusing CASBEE (Comprehensive Assessment System for Built Environment Efficiency),
an environmentally conscious design method, in its design projects. In 2016, theCompany developed Econavi® (City Version), an energy system design support toolthat enables optimal system design to network multiple groups of buildings and the areal
use of energy in smart cities, and the company continued to improve this tool in FY2021.
（Results）(1) In FY2014, the Technostation at the main building of Obayashi Corporation's
Technical Research Institute (Kiyose City, Tokyo) achieved ZEB status with an energybalance of zero, meaning that all energy consumption is covered by the renewableenergy generated at the facility, which remained the case in FY2021. The Harumi 2chome Project obtained ZEB Ready certification without any special energy-saving
equipment being installed. Port Plus®, Japan's first high-rise, purely wooden fire29

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

resistant building, which was under construction in FY2021 as our next-generation
training facility, has also received ZEB Ready certification.
(2) Construction orders in the domestic private non-manufacturing sector in FY2021
were 12% higher than in FY2020.
(3) The number of consulting projects using eco navigation increased in FY2021.
(4) The emission reduction rate in operation based on CASBEE evaluation in FY2021
for our design project was 32% less than that of a standard building.
The realized cost is included in "R&D cost": (4,733 million yen) + "Environment-related
division cost": (415 million yen) + "Design for Environment cost": (1,806 million yen) =(6,954 million yen) from environmental accounting in FY2021.

Comment

ID
Opp2

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity drive
Development of new products or services through R&D and innovation

Primary potential financial impact
Increased revenues through access to new and emerging markets

Company-specific description
If the construction business, which is the Obayashi Corporation's primary business, isaffected by a considerable contraction of the construction market due to an economic
downturn in Japan or overseas, it might impact the group's performance as it receives
fewer orders. The Obayashi Corporation works to improve sales strengths, procurement
ability, and productivity in accordance with medium- to long-term market trends, but it isalso working to diversify revenue sources by expanding business domains. As part ofthis, the entire Obayashi Group is promoting "renewable energy businesses" as anaction plan for the sake of realizing a "decarbonized" society, which is a concrete
initiative in the long-term Obayashi Sustainability Vision 2050. Access to renewableenergy businesses, such as solar power generation and wind power generation, as newand emerging markets is expected to increase long-term revenues from the sale ofelectricity to power companies under the feed-in tariff system for renewable energy. It isalso expected to increase profit-earning opportunities for Obayashi Group companies.
As of March 2022, the company was already promoting renewable energy power
generation projects at 28 solar power plants, one onshore wind farm, and two woodbiomass power plants, with a total rated output of approximately 205 MW. In recent
30

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

years, the company has focused on projects involving the construction, maintenance,and operation of wind turbines. The Mikane Hamada Wind Power Plant, which began
operation in November 2017, received the Civil Engineering Award from the Japan
Construction Federation in 2020 for its development of the Wind Lift Method, whichenables wind turbines to be erected without the need for a large crane, and for its hightechnological capabilities. In the Kamikita Ogawara Wind Farm in Rokkasho Village,
Aomori Prefecture, where construction was scheduled to start in September 2020 andbe completed and put into operation at the end of 2021, wind turbines were installed in
the smallest possible area by using the Wind Lift Method. Access to renewable energy
businesses, such as solar power generation and wind power generation businesses,
which are new and emerging markets, is expected to increase the revenues of Obayashi
Group companies from the long-term sale of electricity to power companies under the
feed-in tariff system for renewable energy. For this reason, the financial impact figure of
770 million yen of expected profit from the increase in the price of renewable energy is
considered to be the financial impact figure for the opportunity. This is an opportunity
factor that has a relatively low degree of financial impact in identifying and evaluating
opportunities, rather than the definition of significant financial impact.

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
775,250,000
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
By accessing new and emerging markets for solar power generation, wind power
generation, and other "renewable energy businesses" and promoting them as a groupwide effort, we expect increases in profit from selling power to power companies in thelong term based on the feed-in tariff system for renewable energy. Obayashi Clean
Energy, including its subsidiaries engaged in renewable energy business, had sales of
11,075,000,000 yen (11.075 billion yen) in FY2021.
The expected future electricity price increase rate is assumed to be 7% (estimated fromthe Agency for Natural Resources and Energy's "Outlook for Energy Supply and
Demand in FY2030").
Profit from changes in renewable energy prices = Obayashi Clean Energy's FY2021 net
sales x expected future electricity price increase rate = 110,750,000,000 yen (110.75%)
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

x expected future electricity price increase rate of 7% = 775,250,000 yen (775.25 million
yen)

Cost to realize opportunity
106,000,000

Strategy to realize opportunity and explanation of cost calculation(Situation) We have decided to implement a project for constructing, maintaining, andoperating fixed-bottom type offshore wind power stations as Japan's first commercial
large-scale offshore wind power generation business at Akita and Noshiro Ports in Akita
Prefecture, working jointly with other companies through Akita Offshore Wind
Corporation, a special purpose company that we invested in in July 2016. This project
aims at constructing, maintaining, and operating offshore wind power stations with total
capacity of about 140,000 kW and sell power to Tohoku Electric Power based on the
feed-in tariff system for renewable energy over 20 years starting with thecommencement of operations in 2022.
(Challenges) The total project cost is about 100 billion yen, so the risk of the
Obayashi Corporation having to foot the whole investment was a challenge.
(Actions) As such, we hoped to procure low-cost development capital by issuing ourown green bonds for our own "renewable energy businesses." The green bonds issued
by the Obayashi Corporation in October 2018 were to be used to promote solar power
generation, wind power generation (onshore, offshore), and other renewable energy
businesses. In June 2019, the company issued the Obayashi Sustainability Bond (the24th unsecured bond). These ESG financings are managed to reduce financing risks
and are viewed as actions to be taken until FY2026 based on the medium- to long-term
management plan.
(Results) A portion of the funds raised through the Obayashi Sustainability Bond issuedin June 2019 was allocated to renewable energy projects: the hydrogen production
plant demonstration test, the Otsuki biomass power plant, and the Kamikita Ogawara
onshore wind farm. Otsuki Biomass is already in operation, and construction of thesecond onshore wind power generation project of the Obayashi Group, the Kamikita
Ogawara Wind Power Project, started in September 2020, followed by trial operation in
FY2021 and power generation in FY2022. These green projects have diversified boththe power source mix of Obayashi's renewable energy business and Obayashi's
revenue base. Furthermore, in order to make a strong commitment to achieving
decarbonization, an important pillar of Obayashi Corporation's sustainability efforts, thecompany issueed an Obayashi Sustainability Link Bond in April 2022, aiming topromote environmentally and socially sustainable economic activities and growth.
The procurement costs are green bond issuance costs 53 million yen + sustainability
bond issuance costs 53 million yen = 106,000,000 yen (106 million yen).

Comment

ID
Opp3

Where in the value chain does the opportunity occur?
Direct operations
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Opportunity type
Products and services

Primary climate-related opportunity driver
Development of climate adaptation, resilience and insurance risk solutions

Primary potential financial impact
Increased revenues resulting from increased demand for products and services
Company-specific description
The Obayashi Corporation's civil engineering business is one of our specialities where
we competitively construct structures for storing water underground in urban areas,
which requires advanced construction technology, and restore large-scale
infrastructure, for instance with dam reconstruction.
According to the Japan Meteorological Agency's Japan's Climate Change, global
warming has caused an increase in days in which at least 100 mm of rain falls andshort periods of heavy rain where at least 50 mm falls in recent years. As a result,the capacity of rivers and waterways are frequently exceeded. Preparing temporary
underground water storage functions in urban areas and dredging rivers and dams
are effective ways to prevent this flood damage, which we consider an opportunity. In
particular, our evaluation is that order opportunities for the Obayashi Corporation's
domestic civil engineering will increase because the typhoons have been impacting
not just western Japan, where we have a rich construction track record, but all ofJapan in recent years. This access to new markets is expected to expand ouropportunities for receiving orders and earning revenue, as we possess advanced
construction technology and have an advantage in terms of bidding price. We classify
construction of underground rivers and reservoirs, river repairs and improvements,
river dredging, and construction of seawalls to be climate-adaptation civilengineering. If we propose new solutions to such climate-adaptation needs that are
accepted and lead to more orders and higher revenue per year, we define that as afinancial impact. We consider the financial impact of this "opportunity" to be a
maximum of 20,000,000,000 yen (about 20 billion yen) in more climate-response civilengineering orders per year as a result of developing climate-adaptation solutions.
This constitutes an opportunity with tremendous financial impact when identifying andevaluating opportunities based on the definition of severe financial impact.

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
Medium-high33

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure - minimum (currency)
3,000,000,000

Potential financial impact figure - maximum (currency)
20,000,000,000

Explanation of financial impact figure
Climate change is making situations where the capacity of rivers and drainage areexceeded more frequently. In order to prevent flood damage, the need for national
land resilience has increased, and following the three-year emergency measures fornational land resilience by 2020, the government has implemented the Five-Year
Acceleration Plan for Disaster Prevention, Disaster Mitigation, and Building National
Resilience. This five-year project, with a project scale of over 15 trillion yen, is to be
implemented intensively for five years, until FY2025, and the market for constructionof civil engineering facilities for disaster prevention is expanding. Especially effective
climate change-adaptation technologies include preparing temporary undergroundwater storage functions in urban areas and dredging rivers and dams, so we areseeing the emergence of a new market for public works as local governments arewanting to build drainage and rainwater trunk lines using small- and medium-sizedcross-section shield technology. This access to new markets is expected to expand
our opportunities for increased revenue (sales), as we possess advanced construction
technology and have an advantage in terms of bidding price. If we propose new civilengineering solutions to such climate-adaptation needs that are accepted and lead tomore orders and higher revenue per year, we define that as financial impact.
[We classify construction of underground rivers and reservoirs, river repairs andimprovements, river dredging, and construction of seawalls to be climate changeadaptation civil engineering, and anticipate three to four such projects (about 1-5 billion
yen per project) per year in urban areas.]
We estimate that developing solutions for climate change adaptation can earn us anannual 3,000,000,000 yen (about 3 billion yen) to 20,000,000,000 yen (20 billion yen)
in climate change-adaptation civil engineering orders.
At least 1 billion yen per project x 3 projects + 5 billion yen x 0 =3,000,000,000 yen (3billion yen); at most 1 billion yen per project x 0 + 5 billion yen x 4 projects =20,000,000,000 yen (20 billion yen).

Cost to realize opportunity
5,148,000,000

Strategy to realize opportunity and explanation of cost calculation(Situation) Obayashi Corporation is developing and improving its technologies with the"Innovate Technologies and Businesses" strategy (Capture growth opportunities
generated by social demand for "carbon neutrality" and "well-being” (safety, security,
comfort and health) by materializing new value with in-depth integration of innovative34

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

technology and business model), one of the basic strategies set forth in its Mid-term
Business Plan 2022. The Obayashi Corporation possesses a wealth of technologies
for digging, shield tunneling, and dam construction to prepare underground water
storage functions and dredge rivers and dams, considering this one of our specialty
areas.

(Challenges) In shield construction, there has been a growing need for environmental
considerations in recent years because of concerns about the risk of tail grease oilcomponents leaking into groundwater in places where groundwater from geologicalformations near shield tunnels is used. Moreover, accurately placing the concretemolds needed to build gravity dams takes a great deal of time and effort even fromhighly trained workers, so automating and reducing the manpower need for moving
and installing concrete molds is an important challenge for increasing productivity inthe future.
(Actions) The Obayashi Corporation developed SEALNOC BD, which is a highperformance tail seal material for shields that is also environment-friendly, incooperation with ENEOS in September 2020. Moreover, in November 2020, we
applied the mold automatic slide system, which is one of the technologies integrated
in the dam computerization construction technologies ODICT TM, at the main body of
Kawakami Dam (Iga City, Mie; client: Japan Water Agency). It was decided tocontinue to operate in FY2021 with improvements to reduce risk. This is seen as anaction until FY2021 in accordance with the Mid-Term Business Plan 2017.
(Results) SEALNOC BD is an improvement of conventional tail seal materials thatprevent contamination of the groundwater during shield tunneling. It uses abiodegradable material to minimize its environmental impact and was the first to beawarded an eco mark in Japan. Moreover, the development of the mold automaticslide system combined elevator scaffolds with an automatic climbing function and ameasurement system to check mold location, thereby enabling full automation of alltasks from demounting a mold from the formed layer and sliding it vertically to
deciding placement and installation by using a tablet.
The realization cost is included in "R&D cost" (4,733 million yen) + "Environmentrelated division cost" (415 million yen) = (5,148 million yen) from the environmental
accounting in FY2021.

Comment

C3. Business Strategy
C3.1(C3.1) Does your organization’s strategy include a transition plan that aligns with a
1.5°C world?

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Row1
Transition planYes, we have a transition plan which aligns with a 1.5°C world

Publicly available transition plan
Yes

Mechanism by which feedback is collected from shareholders on yourtransition plan
We do not have a feedback mechanism in place, but we plan to introduce one within thenext two years

Attach any relevant documents which detail your transition plan (optional)【Obayashi】Initiatives for a low-carbon, recycling-oriented, nature-symbiotic society_ Sustainability.pdf

C3.2(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario analysis to inform strategy
Row1

Yes, qualitative and quantitative

C3.2a(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climaterelated
scenario

Scenario
analysiscoverage

Physicalclimatescenarios
RCP 2.6

Companywide

Temperaturealignment of
scenarioParameters, assumptions, analytical choices[Scenario Identification]
Having established the long-term vision – Obayashi
Sustainability Vision 2050 – that sets the companywide, long-term direction of their business activities
from an environmental perspective, and having set
decarbonization as one of our targets for the years
2040 to 2050, Obayashi Corporation is working torealize a sustainable society. We aim to realize thisvision by conducting business activities designed toprevent global warming. These activities include
making "Establish an Environmentally Responsible
Society," which includes reducing CO2 emissions, oneof our ESG Materialities. The Company has declared
our support for the TCFD. We have conductedscenario analyses on our businesses in order to
identify and assess climate-related risks and36

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

opportunities and understand the medium- to longterm impacts climate problems may have on ourbusiness for the year 2030. RCP2.6 was used as the
2°C scenario in the physical risk/opportunity analysis.
[Parameter]
The social quantitative parameter is based on theforecast of economic development, and the impact on
business is based on the sales ratio and growth rate.
Climate-related quantitative parameters such as theincrease in midsummer days due to risingtemperatures, the increase in natural disasters, andchanges in investments in infrastructure are taken into
account.
[Assumption]
Scenario analysis for the year 2030 was based on
available public data. It is assumed that a linearchange occurs in the data for the periods for which nodata are available. It is also assumed that there will bechanges in working hours due to rising temperaturesin 2030 as well as in the impact of natural disasters.
Regarding market and customer trends, we assume
that, due to changes in construction demand and otherfactors, there will be a need to develop infrastructurethat can cope with the growing impact of natural
disasters.
[Analytic Choice]
The scenario analysis set the year 2030 as anintermediate year to 2050, the target year of the longterm vision. The JMA report on temperature increase
is referenced.
Physicalclimatescenarios
RCP 8.5

Companywide[Scenario Identification]
Having established the long-term vision – Obayashi
Sustainability Vision 2050 – that sets the companywide, long-term direction of its business activities froman environmental perspective and having set
decarbonization as one of our targets for the years
2040 to 2050, Obayashi Corporation is working torealize a sustainable society. We aim to realize thisvision by conducting business activities designed toprevent global warming. These include setting"Establish an Environmentally Responsible Society,"
which includes reducing CO2 emissions, as one of our
ESG Materialities. The company has declared our
support for the TCFD. We have conducted scenario
analyses on our businesses in order to identify and37

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

assess climate-related risks and opportunities andunderstand the medium- to long-term impacts climate
problems may have on our business by the year 2030.
The RCP8.5 was used as the 4°C scenario in thephysical risk/opportunity analysis.
[Parameter]
Social quantitative parameters are based on forecastsof economic development, and business impacts are
considered in terms of sales ratios and growth rates.
As climate-related quantitative parameters, changes
such as an increase in midsummer days due to risingtemperatures, the expansion of natural disasters, andinvestments in infrastructure are taken into account.
[Assumption]
A scenario analysis is conducted for the year 2030
based on publicly available data. Data for the periods
for which data are not available are assumed toundergo linear changes. For the year 2030, changes
in working hours due to rising temperatures andchanges in damage due to the effects of natural
disasters are assumed. Market and customer trends
are also assumed to change due to the need forprocess adjustments following changes in summer
working hours.
[Analytic Choice]
The scenario analysis assumed the year 2030 as anintermediate year to 2050, the target year of the longterm vision. The JMA report on temperature increase
is referenced.
Transition
scenarios
IEA SDS

Companywide[Scenario Identification]
Having established the long-term vision – Obayashi
Sustainability Vision 2050 – that sets the companywide, long-term direction of its business activities froman environmental perspective and having set
decarbonization as one of our targets for the years
2040 to 2050, Obayashi Corporation is working torealize a sustainable society. We aim to realize thisvision by conducting business activities designed toprevent global warming. These include setting"Establish an Environmentally Responsible Society,"
which includes reducing CO2 emissions, as one of our
ESG Materialities. The Company has declared our
support for the TCFD. We have conducted scenario
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

analyses on our businesses in order to identify andassess climate-related risks and opportunities andunderstand the medium- to long-term impacts climate
problems may have on our business for the year 2030.
The IEA_SDS was used as the 2°C scenario in theanalysis of transition risks and opportunities.
[Parameter]
The social quantitative parameter is based on theforecast of economic development, and the impact on
business is based on the sales ratio and growth rate.
Climate-related quantitative parameters include
changes in carbon prices, including taxes, energy
costs, and the cost of installing energy-saving andrenewable energy technologies.
[Assumption]
A scenario analysis is conducted for the year 2030
based on publicly available data. For periods for whichdata are not available, linear changes are assumed tooccur: changes due to taxation on CO2 emissions tocontrol temperature rise in 2030, demand forrenewable energy, and promotion of the introduction ofenergy-saving and renewable energy technologies.
Regarding market and customer trends, it is assumed
that changes in taxation, increased demand forrenewable energy, and cost fluctuations due totechnology application will occur.
[Analytic Choice]
The scenario analysis assumed the year 2030 as anintermediate year to 2050, the target year of the longterm vision. The IEA's WEO2019 is referenced for tax
prices and renewable energy prices.
Transition
scenarios
IEA STEPS(previously
IEA NPS)

Companywide[Scenario Identification]
Obayashi Corporation has formulated Obayashi
Sustainability Vision 2050 – a long-term vision thatsets the company-wide, long-term direction of its
business activities from an environmental perspective– and has set decarbonization as one of its goals forthe period 2040–2050 to realize a sustainable society.
To realize this vision, the company is developing
business activities aimed at preventing global
warming, such as making "the formation of anenvironmentally conscious society" a key ESG issue,
39

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

including the reduction of CO2 emissions. The
company endorsed the recommendations of the TCFD
due to the need to analyze the impact of climaterelated financial disclosures on our business for theyear 2030 and surveyed the available scenario
literature to identify and assess climate-related risks
and opportunities and understand the medium- tolong-term impact of climate-related issues on ourbusiness. The IEA_STEPS was used as the 4°C
scenario in the analysis of transition risks andopportunities.
[Parameter]
The social quantitative parameter is based on theforecast of economic development, and the impact on
business is based on the sales ratio and growth rate.
Climate-related quantitative parameters include
changes in carbon prices, including taxes, energy
costs, and the cost of installing energy-saving andrenewable energy technologies.
[Assumption]
The scenario analysis is based on publicly available
data for the year 2030. Data for the periods for whichdata are not available are assumed to result in linearchanges; changes due to energy demand, prices, etc.
to adapt to the 2030 temperature increase areassumed. Regarding market and customer trends, it isassumed that changes such as fluctuations in material
costs caused by energy prices will occur.
[Analytic Choice]
The scenario analysis assumed the year 2030 as anintermediate year to 2050, the target year of the longterm vision. The IEA's WEO2019 is referenced for tax
prices and renewable energy prices.

C3.2b(C3.2b) Provide details of the focal questions your organization seeks to address byusing climate-related scenario analysis, and summarize the results with respect tothese questions.
Row1
Focal questions

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The transition scenario focuses on the impact of the carbon tax on the company's own
costs associated with the shift to a decarbonized society toward a 1.5°C world, theimpact on the customer side of the shift to decarbonization as a result of stricter
environmental regulations, and what opportunities are likely to be gained in Obayashi's
service areas.
In the physical scenario, the focus was on the impact of a long-term temperature
increase of about 4°C on the client side of the Company due to more severe natural
disasters and worsening labour conditions due to higher temperatures and changes indemand for Obayashi's existing service offerings to help solve these issues.

Results of the climate-related scenario analysis with respect to the focal
questions
In the transition scenario, the following risks (1) and opportunities (2) are assumed.
(1) Introduction of a carbon tax:
Overview）・Cost increase when levied on CO2 from business activities
・Procurement cost increase from higher prices on construction materials withhigh energy consumption
2030 impact) 4℃ scenario = minor, 2℃ scenario = major(2) Expanding needs for energy conservation and renewable energy technologies
Overview)・Increasing superiority in ZEB (net zero energy buildings) and energysaving technologies that meet society's needs
・Switching from existing energy to renewable energy
・Expanding office demand for green building certification
2030 impact）4℃ scenario = medium, 2℃ scenario = major
Of the above, (1) will be to curb costs by reducing energy consumption at each stage
through promotion of energy conservation at the construction stage and application of
low-carbon materials; and (2) will be to promote the development of ZEB and othertechnologies and apply them to buildings to reduce energy consumption during
operation, thereby differentiating buildings and expanding opportunities to win orders.
In the physical scenario, the following risks (1) and (2) and opportunities (3) are
assumed.
(1) Rise in summer temperatures
Overview）・Increasing health risks for workers at construction sites, includingheatstroke
・Deepening worker shortages due to worsening working environments atconstruction sites
2030 impact）4℃ scenario = major, 2℃ scenario = majo(2) Intensification of natural disasters (typhoons, torrential rains, floods, etc.)
Overview）・Increasing risks such as damages to buildings under construction,suspended work, and damages to construction material suppliers due to storms andfloods・Decreasing value of real estate in areas with high flood risk
2030 impact）4℃ scenario = medium, 2℃ scenario = medium③国土強靭化の取り組み

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Overview）・Expanding demand for construction, maintenance, and repairs of
infrastructure to prevent and decrease disaster risk and increase national land resilience2030 impact）4℃ scenario = major, 2℃ scenario = major
As regards the above, (1) the introduction of mechanized construction will reduce
construction schedule delays due to deterioration in the labour environment; (2)strengthening the BCP, including the supply chain, will reduce construction schedule
delays due to wind and flood damage; and (3) the development of disasterprevention/mitigation/toughness technologies will be promoted and applied to buildings
and infrastructure to differentiate them and expand opportunities to win orders.

C3.3(C3.3) Describe where and how climate-related risks and opportunities haveinfluenced your strategy.
Businessarea

Have climate-related Description of influencerisks andopportunities
influenced yourstrategy in this area?

Products and Yes
services

The main products and services offered by the
Obayashi Corporation are building construction anddesign. Design and construction make up the main partof the construction industry, but the management ofbuildings as products (when used after delivery) is
associated with considerable greenhouse gas
emissions, so it is important to work to keep thoseemissions down in the same way that we do during theconstruction stage.
In the current situation, we need to reduce greenhousegas emissions considerably by strengthening
regulations and through other measures in accordancewith the Japanese national policy for the Paris
Agreement in 2015 ("Japan's draft agreement") andthe 2050 Carbon Neutrality Declaration of theJapanese government in September 2020. We
assume that similar measures are needed on theconstruction market. The national Energy Basic Planalso states that "we shall aim to realize ZEB on
average for all new constructions by 2030, including
new public buildings by 2020." More concretely, weneed to implement measures that reduce greenhousegas emissions at the management stage to fight42

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

climate change, and it is likely that we will see anincrease in orders for ZEB (zero energy buildings) that
aim to eliminate such emissions. As part of this, weneed to possess technologies and know-how toconstruct buildings that can meet client needs or wewill risk missing more orders and see a drop in sales.
Meanwhile, if we do secure superior technologies andknow-how, we should see more orders and increases
in sales as we expect it to have an impact on theconstruction and development businesses.
In the Obayashi Corporation's TCFD scenario analysis,
the growing importance of ZEB and energy-saving
technologies in response to social needs fromexpanded demand for energy-saving and renewableenergy technologies was identified as a transition
opportunity, to which we aim to respond by "promoting
the development and practical application of ZEB
technology that provides comfort and is businessfeasible."
The above suggests the need to supply the market withbuildings that emit less greenhouse gases as well as
the need for solutions in the form of 1) developing andpossessing
technologies
forbuildings
that
accommodate regulations and needs and 2)
concomitant strengthening of our competitiveness andability to present technologies.
In this, we consider 1) the regulations and needs to be
shaped by Japan's draft agreement, which is why wehave calculated upper limits for emissions from building
management in 2030 by collating that draft with ourbusiness size and contents. We are calculating andreflecting a total reduction rate for emissions so thatthey do not exceed those limits. Thus, we set
emissions reduction targets in line with national
regulations and work together with our technologicaldevelopment departments to achieve them, thereby
enabling us to acquire the technological ability tosupply the market with buildings that can meetdemands.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Moreover, in terms of measures for 2) strengthening of
our competitiveness and ability to present technologies,
we use CASBEE (Comprehensive Assessment System
for Built Environment Efficiency) to assess design andconstruction jobs and set numerical targets for CO2
emissions reduction per unit of floor space managed in"relevant buildings" (buildings with specifications as
designed by us) as compared to "reference buildings"(buildings with average specifications defined by
CASBEE). This allows us to strengthen ourcompetitiveness through our ability to present
technologies by promoting the introduction of energysaving technologies.
Regarding 1), we are continuing our activities with amedium- to long-term target of -25% in FY2031.3
compared to FY2014.3 for our reduction rate of indirectcontributions to emissions. In FY2021, this was -26%
compared to FY2013.
Regarding (2), in terms of emission intensity during
operation (per floor area, per year) of CASBEEreferenced buildings, there was a -32% reduction in
FY2021.
As CASBEE is regularly revised, we always aim toachieve better total environmental performance thanfor buildings and infrastructure with standard
specifications, with the reference buildings of that year
as an index, continuing our activities working toward
the aforementioned reduction rate for emissions output
during management.
The management emissions of buildings supplied tothe market is one of the principal components of the"indirect contributions to emissions" which is the basis
for calculating 1) according to the corporation's
divisions. As this is an accumulation of annual
emissions during management for our design andconstruction jobs as calculated from the results of 2),
so supplying buildings with high environmental
performance (low emissions) to the market may beconsidered contributing to reducing greenhouse gas
emissions from products and services.
The corporation considers "establishing anenvironmentally responsible society" an ESG
44

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Materiality and conducts activities with action plans for"promoting environment-friendly businesses" and"promoting decarbonization" as well as KPIs. ESG
initiatives were identified as business foundation
strategy in the Medium-Term Business Plan 2017.
Moreover, the Medium-Term Business Plan is basedon the long-term Obayashi Sustainability Vision 2050
and strategically important decision-making. These
activities are having effects on business strategies in
the construction and development businesses.
The Medium-Term Business Plan 2017 covers the five
years from 2017 and 2021, while the long-term
Obayashi Sustainability Vision 2050 covers the period
until 2050.
Supply chain Yes
and/or value
chain

The Obayashi Corporation's supply and value chains
can be broadly divided as having to do with either the
production and procurement of materials forconstruction (raw materials, secondary products,
equipment, etc.) or the labor at the construction sites(workers).
We also need to take into consideration thegreenhouse gas emissions from materials production
and construction, as they impact the market via Paris
Agreement-related national regulations in the same
way that products and services do.
The national policy for the 2015 Paris Agreement("Japan's draft agreement") also indicates FY2031.3
emission goals by sector, with materials production
and on-site construction falling under production
departments and materials transportation falling undertransportation departments, so we need to makereductions as appropriate for these. More concretely,
measures to reduce greenhouse gas emissions to fightclimate change are expected to increase costs throughthe levying of carbon taxes and additional equipment
investments as regulations are strengthened to keep
down emissions during materials production and onsite construction. Rising costs can lead to lower
competitiveness, missing out on orders, and reduced
profitability, so it can have an impact in terms ofdecreasing
sales
and
revenue.
Meanwhile,

45

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

development of materials that minimize greenhousegas emissions during production can increase
competitiveness, expand orders, and have an impact
in terms of boosting sales.
The Obayashi Corporation also identifies higher prices
and procurement costs for energy-consuming
construction materials with the introduction of a carbon
tax as transition risks in our TCFD scenario analysis,
and intends to counter this by "establishing designs
and construction technologies for building wooden
medium- and high-rise buildings as well as creating
relevant supply chains."
Moreover, considering that slight temperature
increases at construction sites are unavoidable even if
we fight climate change, we will see lower work
efficiency as working outdoors will be restricted during
hot hours (more time for rest needed, etc.), thus
leading to new costs as project timelines are extended
and work has to be conducted outside regular hours
such as when temperatures are lower, which in turn is
expected to decrease sales and revenue.
The Obayashi Corporation also identifies increased
health risks for workers, such as the risk of heat stroke
at construction sites when it is hot in summer, anddeepening manpower shortages due to worsening
working environments as physical risks in our TCFD
scenario analysis, and intends to counter this by"further increasing productivity and construction safety
using labor-saving technology and ICT" and"developing innovative technologies to improve working
conditions at construction sites."
The above factors are thought to impact both theconstruction business and the development business.
For materials production, we need to choose anddevelop low-carbon materials and collaborate withpartner companies with regard to this, as well as
implement measures to improve fuel efficiency ofvehicles during materials transportation. As for labor atconstruction sites, we need to mechanize, improveequipment, and develop technologies to increase work
efficiency, as well as collaborate with partnercompanies in the same way as for materials
production. We aim to resolve the various challenges
by reliably implementing measures such as these.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The corporation identifies "conducting responsible
supply chain management" as an ESG priority, has
selected "promoting CSR procurement" as an action
plan, and defined KPIs.
For our activities, we have formulated the Obayashi
Group CSR Procurement Policy, and we also expect
our supply chains to act in accordance with CSR
Procurement Guidelines that are based on the
aforementioned policy. As part of this, we are asked to"promote business activities that preserve theenvironment and reduce the environmental load."
Decarbonizing materials production and increasingtransportation fuel efficiency belong to theaforementioned initiatives promoted, while in terms oflabor, the implementation of energy-saving construction
by increasing work efficiency also falls under there.
Moreover, to steadily yield results in our developmentof low-carbon materials and highly efficient construction
methods, we select R&D themes with due
consideration from the initial stage and anticipate thepossibility of collaborating in open innovation, including
with our supply chains.
The corporation calculates the CO2 emissions ofmaterials production as category 1 "purchased goods /services" of Scope 3 and CO2 emissions of materials
transportation as category 4 "transportation anddelivery (upstream)," which are included in thecalculation of the corporation's "indirect contributions"and "direct contributions" respectively, to evaluate total
reduction rate.
Moreover, labor refers to activities at construction sites,
so that Scope 1 and 2 energy-saving activities
influence CO2 emissions and it is calculated as "directcontributions."
Moreover, labor refers to activities at construction sites,
so that Scope 1 and 2 energy-saving activities
influence CO2 emissions and it is calculated as "directcontributions."
We connect the green procurement rate forconstruction materials with emissions reductions byencouraging material choices that take KPIs and47

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

environmental load into account.
As regards the indirect contribution emission reduction
rate, the company has set a mid- to long-term target of
25% reduction from the FY2013 level for FY2030 andis continuing its activities. As regards the directcontribution emission reduction rate, the mid- to longterm target is set at 85% below the FY2013 level for
FY2030, and activities are continuing, while the
FY2021 level is 57% below the FY2013 level. The
green procurement rate for construction materials was
47%.
This is tied in with our ESG priorities and associatedaction plans and KPIs. ESG initiatives were identified
as business foundation strategy in the Medium-TermBusiness Plan 2017. Moreover, the Medium-TermBusiness Plan is based on the long-term Obayashi
Sustainability Vision 2050 and strategically important
decision-making. The above ESG Materialities"conducting responsible supply chain management"
and the action plan "promoting CSR procurement"
influence our business strategies for construction anddevelopment.
The Medium-Term Business Plan 2017 covers the fiveyear period from 2017 to 2021, while we aim to realize
the long-term Obayashi Sustainability Vision 2050 by
2050.
Investment in Yes
R&D

The primary business of the Obayashi Corporation is theconstruction business, so technologies relevant toconstruction and buildings and infrastructure have a major
impact. The current Medium-Term Business Plan 2017 has
as one of its technology strategies "developing technologies
that contribute to business by aligning with customer needs,
stimulating new demand, and reading the markets and thetimes." Whether we are able to develop technologies that
resonated with market needs and opportunities that have to
do with climate change measures will have a major impact
on our business.
We have to reduce greenhouse gas emissions inaccordance with the national policy in the 2015 Paris
Agreement as well as other laws and regulations, which alsomeans that we need to develop and possess technologies
that match corresponding social needs. Concrete challenges
include developing technologies for supplying energy-saving48

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

construction and energy-saving buildings.
The national policy for the 2015 Paris Agreement ("Japan's
draft agreement") also defines emission goals for FY2031.3
by sector, with the management of buildings andinfrastructure falling under administration departments,
materials production and on-site construction under
production departments, and materials transportation undertransportation departments, so as to anticipate reductions
that suit the targets set for each sector. Moreover, thenational Energy Basic Plan states that it aims to realize ZEB
on average for new public structures by 2020 and for othernew structures by 2030, so we anticipate that we need toreduce greenhouse gas emissions accordingly.
n the Obayashi Corporation's TCFD scenario analysis, thegrowing importance of ZEB and energy-saving technologies
in response to social needs from expanded demand forenergy-saving and renewable energy technologies was
identified as a transition opportunity, to which we aim to
respond by "promoting the development and practicalapplication of ZEB technology that provides comfort and isbusiness-feasible."
More concretely, as keeping down greenhouse gas
emissions to fight climate change becomes a social need,
we expect to see more orders for ZEB (zero energy
buildings) that strive to eliminate greenhouse gas emissions
during the management stage of buildings and infrastructure.
As part of this, we need to possess technologies and knowhow that can meet client needs or we will risk missing moreorders and see a drop in sales. On the other hand, if wesecure advantages in technologies and know-how, this may
increase sales by providing more orders.
As regards materials production, the costs of materials when
keeping down greenhouse gas emissions during
manufacturing affect competitiveness, while the costs ofadditional equipment to counter rising temperatures during
on-site construction can also affect competitiveness. Ifclients are not happy with the added value that accompany
the rising costs, there is a risk that the drop incompetitiveness will cause us to lose orders, while securing
competitive advantages by curbing costs can lead toexpanded orders. Whether we possess such technologicalability, technologies, and know-how will impact ourconstruction and development businesses.
Research themes are selected annually, and wecontinuously make technological development investments
as appropriate by carefully investigating and reflecting

49

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

national policy, laws and regulations, and social needs.
Environment-related R&D expenses are calculated
according to the environmental accounting every year anddisclosed. R&D is many times carried out over several years,
so it can be difficult to evaluate results on a one-year basis,
which is why we are looking into techniques for analyzing theeffects of adopting our new development technologies inconstruction and implementing them in buildings andinfrastructure by measuring them as indicators of emissions
from our direct and indirect contributions. Our environmentrelated R&D expenses were 4,987 million yen in FY2021.3.
The mid- to long-term target for the indirect contribution
emission reduction rate is set at 25% below the FY2013 level
for FY2030, and the actual result for FY2021 was 26% below
the FY2013 level. The company has set a mid- to long-termgoal of reducing direct emissions by 85% in FY2030
compared to FY2013 and is continuing these activities. The
actual result in FY2021 was 57% below the FY2013 level.
Our reduction-rate targets for emissions from direct andindirect contributions were defined in the medium- to longterm Obayashi Green Vision 2050 formulated in 2011, werereaffirmed with the developmental revision into the long-term
Obayashi Sustainability Vision 2050 in 2019, and are stillused on the basis of strategically important decision-making.
Moreover, the Medium-Term Business Plan 2017, which is abusiness strategy, is based on the long-term Obayashi
Sustainability Vision 2050, and it is thought to impact ourconstruction and development businesses since it includes
R&D investments.
The Medium-Term Business Plan 2017 covers the five-year
period from 2017 to 2021, while we aim to realize the longterm Obayashi Sustainability Vision 2050 by 2050.
Operations

Yes

The primary business of the Obayashi Corporation isthe construction business, so accurately managing
climate change measures that have to do withconstruction will impact our performance.
In order to carefully examine the impact of climaterelated risks and opportunities in our business activities
and reflect them in our measures, our challenge is tocreate organizational and standardized mechanisms to
be used in our management.
We are promoting our business activities with theenvironment as a principal management item alongsideconventional safety and quality. If the activity procedures andtargets are insufficiently specified in our management, this50

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

will reduce the efficacy of our activities to reduce greenhousegas emissions at construction sites and we will not be able toachieve sufficient reduction effects, which we expect leads tothe aforementioned risks under "Products and services,""Supply and value chains," and "R&D investments." On theother hand, if the management is conducted sufficiently, thiscan allow us to achieve reduction in the various domains aspreviously explained.
These initiatives have an especially major impact on theconstruction business, but it is important to see them asaffecting all businesses and departments since they are thebasis of all our business activities.
The Obayashi Corporation's TCFD disclosure item
"Governance" states that, "Obayashi's CSR Committee wasput in place to promote business activities based on the
Obayashi Basic Principles and Group-wide CSR activities
with an ESG perspective. It is headed up by the
Representative Director and President and has amembership consisting of General Managers of divisions
and other executive officers. Meeting once a year, the CSR
Committee sets basic CSR policies that include initiatives on
climate problems, drafts policies and specific action plans,
and reviews achievements of initiatives. The ESG & SDGs
Department of the Corporate Strategy Division serves as
secretariat for the CSR Committee. It drafts, promotes, andmonitors the progress of measures to promote ESG
management and SDG achievement, disseminates
information, instills relevant practices within the Group, andpromotes Group-wide initiatives." We have publicized aschematic of our change-related governance structure andorganizational overviews of each organization, as well as ouractivities.
The Obayashi Corporation has the aforementioned CSR
Committee chaired by the President deliberate on andconfirm climate-related risks and opportunities. The
Environmental Management Expert Committee, which is asubordinate organization, then revises and promotes
measures and implementation plans with environmentrelated data that have been collected according to the
Obayashi Environmental Management System (EMS). The
committee also monitors and reviews the setting,
implementation, and performance of targets. Furthermore,
concrete activities based on the implementation plans andtargets defined by the Environmental Management Expert

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Committee are promoted by the environment departments at
the main office, the branches, and group companies. The
CSR Committee also reports to the Board of Directors, withthe board overseeing all climate-related risks andopportunities.
Operational effects are evaluated on the basis of progress
toward EMS targets and accompanying factor analysis as
well as feedback for next-year activities based on thatanalysis. The EMS targets are defined based on the actionplans and KPIs of the ESG Materialities that are linked with
the Medium-Term Business Plan.
As an example, the action plan "promote decarbonization"
has "direct contribution of CO2 emissions reduction rate" asa KPI and a FY2031.3 target of -85% compared to
FY2014.3. We conduct business activities to achieve thistarget by setting "CO2 emissions reduction rate during
construction (FY2014.3 baseline)" as annual targets.
The FY2021 target was -15%, while the actual result was 17.9%.
This is "emissions from construction," which we classify as"direct contributions," so it is a mechanism for reflecting theresults of our activities. We ensure the efficacy of ourgreenhouse gas emission reductions by setting the targets
with EMS and having individual business departments
manage them.
ESG initiatives (ESG Materialities, action plans, and KPIs)
were identified as business foundation strategy in theMedium-Term Business Plan 2017. Moreover, the MediumTerm Business Plan is based on the long-term Obayashi
Sustainability Vision 2050 and strategically important
decision-making. Considering the aforementioned
connection with the ESG initiatives, EMS is based on thebusiness strategy of the Medium-Term Business Plan andhow well it is managed will have an impact on ourbusinesses. The Medium-Term Business Plan 2017 covers
the five-year period from 2017 to 2021, while we aim torealize the long-term Obayashi Sustainability Vision 2050 by
2050.

C3.4
(C3.4) Describe where and how climate-related risks and opportunities haveinfluenced your financial planning.
Financialplanning

Description of influence52

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

elements
that havebeen
influenced
Row1 Revenues
Direct costs【Direct costs】
Material costs, labor costs (personnel costs), and direct expenses(utilities costs) fall under direct costs in construction.
Material costs include the procurement of construction materials thatmake up the buildings and affect their environmental specifications.
The construction materials procured have a climate effect through theCO2 emitted when they are produced in the factories and transported
to the construction sites.
The national policy for the 2015 Paris Agreement (the "Japan's draft
agreement") indicates FY2031.3 emission goals by sector, withmaterials production and on-site construction falling under the industry
sector and materials transportation falling under the transportation
sector, so we need to make reductions as appropriate for these.
Moreover, the emissions from the construction work are supply chain
emissions from the client's perspective, so we expect calls for
reductions there for the same reasons.
If costs increase even if we plan the application of materials andequipment with a small environmental load, there will be a higher risk oflosing orders as construction costs go up and we lose advantages.
Conversely, if we can keep costs from going up, this will allow us tosecure advantages in terms of construction costs and obtain moreorders.
The Obayashi Corporation is promoting ESG initiatives as a businessfoundation strategy in our Medium-Term Business Plan 2017 for
FY2018.3 to FY2022.3.
As part of this, we have defined the action plan "promoting CSR
procurement" and the KPI "construction materials green procurementrate" for the ESG Materiality "Conducting responsible supply chain
management," and are working to apply materials and equipment with asmall environmental load.
Green procurement refers to initiatives to select and procure materials
and equipment with a small environmental load. The indicator that is
the green procurement rate reflects how big a part of construction
material and equipment procurement costs consists of materials andequipment with a small environmental load, so a higher procurement
rate means a smaller environmental load.
Achieving the aforementioned KPI, which is a strategic target, meansincreasing the proportion of construction work that meets the need ofsmaller environmental load when receiving orders, as we are working toreach the sales and profit targets outlined by the business indicatortargets in the Medium-Term Business Plan 2017.
Furthermore, the Obayashi Corporation has Green Procurement
Guidelines for Office Supplies and Construction Materials andMachinery, thus encouraging the procurement of materials andequipment with a small environmental load in all our business activities.
In our procurement, we pay attention to the following aspects ofenvironmental load reduction and environmental conservation.
1) Promoting energy and resource conservation, 2) cutting CO2
53

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

emissions, 3) minimizing waste, 4) promoting recycling, 5) minimizing
use of hazardous substances, and 6) preserving surrounding
environments and ecosystems. Moreover, when selecting items, wetake into consideration if they reduce the environmental load, if theymust be procured in great amounts, and if they still have a major
environmental load reducing effect, regardless of the amount to be
procured, because they come from our own R&D, based on thecontents of "designated procurement items" in the Act on Promotion of
Procurement of Eco-Friendly Goods and Services by the State andOther Entities (Green Purchasing Act).
The principal "designated procurement items" among our construction
materials are soil from construction, asphalt concrete, cement,
concrete, and steel.
The target green procurement rate, an indicator, was set at 55% by
FY2021, and the actual rate in FY2021 was 57.5%.
This target is reflected in EMS (Environmental Management System).
【Revenue】
The Obayashi Corporation's primary businesses are the construction,
development, and green energy businesses.
We need to reduce greenhouse gas emissions considerably bystrengthening regulations and through other measures as well as
implement similar measures on the construction market in accordancewith the Japanese national policy for the Paris Agreement in 2015("Japan's draft agreement") and the 2050 Carbon Neutrality Declarationof the Japanese government in September 2020. More concretely, weneed to reduce CO2 emissions during management, which indicatesbuilding performance, and during construction, which requires us in ourconstruction and development businesses to possess construction
technologies and know-how for realizing design that accommodate
environmental specifications in demand as well as construction thatyields as little emissions as people wish to see.
Moreover, our green energy business, which centers around therenewable energy business, is subject to an important growth strategy
for securing diverse revenue sources as we aim to stably supply CO2free power. We are already operating 44 power plants in 30 locations
as we are advancing commercialization centering on solar and biomass
power generation, with a capacity of producing about 154 MW. We arealso engaging in large-scale offshore wind power generation, which iscurrently difficult to commercialize.
In the construction and development businesses, there is a higher riskof fewer orders and reduced revenue and profit if we do not possess
technologies and know-how for designing and constructing buildingsthat meet client needs.
We also expect opportunities in the form of more orders andincreased revenue and profit if we secure advantages withaforementioned technologies and know-how.
Whether we are able to research and develop technologies as well as acquireknow-how that accord with climate change-related social and market needs
and opportunities will have a major impact on our businesses.
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

The Medium-Term Business Plan 2017 includes targets for revenue andbusiness profit as business indicators targets. The plan covers the period from
FY2018.3 to FY2022.3.
The ESG initiatives are our foundational business strategy for achieving thosetargets, so we are promoting initiatives to solve global environmental problems
by defining the action plan "promoting decarbonization" and the indicator KPIs
"direct contribution of CO2 emissions reduction rate" and "indirect contributionof CO2 emissions reduction rate" for the ESG Materiality "Establishing anenvironmentally responsible society."
As defined below, "direct contributions" refers to reducing emissions atconstruction sites while "indirect contributions" refers to reducing emissions
from the management of the buildings we design, so we promote thepossession and the improvement of technologies and know-how through ourbusiness foundation strategy.
As previously mentioned, the possession of technologies and know-how
impacts revenue and profit, so we aim to improve them for the sake ofachieving our business indicator targets.
Moreover, we are steadily increasing power generation to reach our targets bycontinuously investing in our renewable energy business.
Direct and indirect contributions
are defined as follows.

Direct contributions = A + B - C
A: Fuel consumption and power purchased at construction sites and in
offices (scope 1 + scope 2)
B: Transportation of construction materials and waste, commuting of
employees and workers (categories 4, 7, 9 in scope 3)
C: Emissions corresponding to power
generated in renewable energy
businessesIndirect contributions = a + b - c
a: Annual emissions from operating buildings designed and constructedby the Obayashi Corporation for 35 years after completionb: Production of construction materials (category 1 in scope 3)
c: Reduction effect by adoption of energy-saving and low-carbon
materials
The indicators, targets, and FY2021.3 results for CO2 emission reduction andfinancial planning are as follows.

Construction Work
Indicator: direct contributions
Target: 85% reduction by FY2031.3 (FY2014.3 baseline)
FY2021 results: 57% reduction
DesignIndicator: indirect contributions
Target: 25% reduction by FY2031.3 (FY2014.3 baseline)55

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

FY2021 results: 26% reduction
Renewable energy
business Indicator: annual power generation
Target: at least 370,000 MWh → CO2 emission conversion 174,000 t-CO2 by
FY2022.3
FY 2021: 297.320 MWh → CO2 emissions conversion: 135,000 t-CO2

Sales
Indicator: Medium-Term Business Plan 2017
Target: about 2 trillion yen by FY2022.3
FY2021 results: 1766.8 billion yen
Operating profit
Indicator: Medium-Term Business Plan 2017
Target: about 100 billion yen by FY2022.3
FY2021 results: 98.7 billion yen
The investments and initiatives in our construction and development
businesses are as follows.
Construction business

Investments: Construction technology R&D(total of 100 billion yen in the FY2018.3-FY2022.3 plan, 90.7 billion
yen in FY2018.3-FY2021.3 results)
Initiatives:
・Providing buildings with high environmental performance (ZEB, etc.)
・Promoting energy-saving construction
・Introducing low-carbon materials (applying clean-crete, green procurement,
etc.)
・Introducing energy-saving construction machinery
・Realizing autonomousand automatic construction,etc.

Development business
Investments: Sustainable investments(target of at least 90% of real estate rental business
investments, about 94% achieved in FY2021.3)Initiatives:
・Providing green buildings
・Energy-saving investments, etc.

Green energy business
Investments: Investments into the renewable power generation business, etc.
(total of 100 billion yen in the FY2018.3-FY2022.3 plan, 50.5 billion yen in
FY2018.3-FY2021.3 results)

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Initiatives:
・Solar power generation business・Biomass power generation business・Onshore wind power generation business・Geothermal and micro hydroelectric power generation business, etc.
In FY2021, the construction and development businesses were partiallyaffected by the spread of the new coronavirus infection, but the Company
largely achieved the targets of the Medium-term Business Plan 2017,indicating that it is making solid progress in both addressing climate change
and securing sales and profits.

C3.5(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s transition to a 1.5°C world?
No, but we plan to in the next two years

C4 Targets and performance
C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target
Intensity target

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress madeagainst those targets.

Target reference number
Abs 1Year target was set
2021
Target coverage
Company-wide

Scope(s)Scope1
Scope2

Scope 2 accounting method
Market-based

Scope 3 category(ies)57

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Base year
2014
Base year Scope 1 emissions covered by target (metric tons CO2e)145,000

Base year Scope 2 emissions covered by target (metric tons CO2e)
84,000Base year Scope 3 emissions covered by target (metric tons CO2e)

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)229,000

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
97

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
97

Base year Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
97

Target year
2022

Targeted reduction from base year
15

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
194,650

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
146,000

Scope 2 emissions in reporting year covered by target (metric tons CO2e)
42,000

Scope 3 emissions in reporting year covered by target (metric tons CO2e)58

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)
188,000% of target achieved relative to base year [auto-calculated]
119.3595342067

Target status in reporting year
Achieved

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
Well-below 2°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Short-term target: 15% reduction from FY2013 levels in FY2021 (April 1, 2021 to March
31, 2022), as established by the Environmental Management Expert Committee.

Plan for achieving target, and progress made to the end of the reporting year

List the emissions reduction initiatives which contributed most to achieving
this target
Fuel-efficient operation, new power purchase, etc.

Target reference number
Abs 2Year target was set
2017Target coverage
Company-wide

Scope(s)Scope1
Scope2

Scope 2 accounting method
Market-based

Scope 3 category(ies)59

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Base year
2014

Base year Scope 1 emissions covered by target (metric tons CO2e)145,000

Base year Scope 2 emissions covered by target (metric tons CO2e)
84,000Base year Scope 3 emissions covered by target (metric tons CO2e)

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)229,000

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
97

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
97

Base year Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
97

Target year
2022

Targeted reduction from base year
8

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
210,680

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
146,000

Scope 2 emissions in reporting year covered by target (metric tons CO2e)
42,000

Scope 3 emissions in reporting year covered by target (metric tons CO2e)60

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)
188,000% of target achieved relative to base year [auto-calculated]
223.7991266376

Target status in reporting year
Achieved

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
Well-below 2°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Medium-term target: "8% reduction compared to FY2014.3 in FY2022.3 (April 1, 2021March 31, 2022)" formulated by the Environmental Management Committee, which
was the predecessor of the Environmental Management Expert Committee, to matchthe Medium-Term Business Plan.

Plan for achieving target, and progress made to the end of the reporting year

List the emissions reduction initiatives which contributed most to achieving
this target
Fuel-efficient operation, new power purchase, etc.

Target reference number
Abs 3Year target was set
2019

Target coverage
Company-wide

Scope(s)Scope1
Scope2
Scope3

Scope 2 accounting method
Market-based61

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Scope 3 category(ies)Category 4: Upstream transportation and distribution
Category 7: Employee commuting
Category 9: Downstream transportation and distribution

Base year
2014

Base year Scope 1 emissions covered by target (metric tons CO2e)145,600

Base year Scope 2 emissions covered by target (metric tons CO2e)93,400Base year Scope 3 emissions covered by target (metric tons CO2e)
163,000

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)402,000

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
97

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
97

Base year Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
97

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
97

Target year
2051

Targeted reduction from base year85

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
60,300

Scope 1 emissions in reporting year covered by target (metric tons CO2e)146,300

Scope 2 emissions in reporting year covered by target (metric tons CO2e)62

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

47,200

Scope 3 emissions in reporting year covered by target (metric tons CO2e)
97,000Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)
290,500% of target achieved relative to base year [auto-calculated]
32.6309628329

Target status in reporting year
Underway

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
1.5°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Long-term target: "85% reduction compared to FY2014.3 in FY2051.3 (April 1, 2050March 31, 2051)" formulated in the long-term Obayashi Sustainability Vision 2050.

Plan for achieving target, and progress made to the end of the reporting year
Fuel-efficient operation, purchase of new electricity, purchase of alternative fuels, etc.

List the emissions reduction initiatives which contributed most to achieving
this target

C4.1b
(C4.1b) Provide details of your emissions intensity target(s) and progress madeagainst those target(s).

Target reference number
Int 1Year target was set
2021

Target coverage
Company-wide

Scope(s)Scope1
Scope2

Scope 2 accounting method
63

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Market-based

Scope 3 category(ies)Intensity metric
Other, please specify
t-CO2/construction sales (100 million yen)

Base year
2014

Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
13

Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
8

Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity)

Intensity figure in base year for all selected Scopes (metric tons CO2e per unitof activity)
21% of total base year emissions in Scope 1 covered by this Scope 1 intensity
figure97% of total base year emissions in Scope 2 covered by this Scope 2 intensity
figure97% of total base year emissions in Scope 3 (in all Scope 3 categories) coveredby this Scope 3 intensity figure% of total base year emissions in all selected Scopes covered by this intensity
figure97

Target year
2021

Targeted reduction from base year (%)
15

Intensity figure in target year for all selected Scopes (metric tons CO2e perunit of activity) [auto-calculated]
17.85

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

% change anticipated in absolute Scope 1+2 emissions
14.1% change anticipated in absolute Scope 3 emissions

Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit ofactivity)
11

Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit ofactivity)
3

Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit ofactivity)

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
14% of target achieved relative to base year [auto-calculated]
222.2222222222

Target status in reporting year
Achieved

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
Well-below 2°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Short-term target: "15% reduction compared to FY2014.3 in FY2021.3 (April 1, 2020March 31, 2021)" formulated by the Environmental Management Expert Committee

Plan for achieving target, and progress made to the end of the reporting year

List the emissions reduction initiatives which contributed most to achieving
this target
Fuel-efficient operation
Purchase of new electric power, etc.

Target reference number
65

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Int 2Year target was set
2017Target coverage
Company-wide

Scope(s)Scope1
Scope2

Scope 2 accounting method
Market-based

Scope 3 category(ies)Intensity metric
Other, please specify
t-CO2/construction sales (100 million yen)

Base year
2014

Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
13

Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
8

Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity)

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
21% of total base year emissions in Scope 1 covered by this Scope 1 intensity
figure97% of total base year emissions in Scope 2 covered by this Scope 2 intensity
figure97% of total base year emissions in Scope 3 (in all Scope 3 categories) coveredby this Scope 3 intensity figure% of total base year emissions in all selected Scopes covered by this intensity
figure66

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

97

Target year
2022

Targeted reduction from base year (%)
8

Intensity figure in target year for all selected Scopes (metric tons CO2e perunit of activity) [auto-calculated]
19.32% change anticipated in absolute Scope 1+2 emissions-17.9% change anticipated in absolute Scope 3 emissions

Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit ofactivity)
11

Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit ofactivity)
3

Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit ofactivity)

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
14% of target achieved relative to base year [auto-calculated]
416.6666666667

Target status in reporting year
Achieved

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
Well-below 2°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Medium-term target: "8% reduction compared to FY2014.3 in FY2022.3 (April 1, 2021March 31, 2022)" formulated by the Environmental Management Committee, which was67

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

the predecessor of the Environmental Management Expert Committee, to match theMedium-Term Business Plan.

Plan for achieving target, and progress made to the end of the reporting year

List the emissions reduction initiatives which contributed most to achieving
this target
Fuel-efficient operation
Purchase of new electric power, etc.

Target reference number
Int 3Year target was set
2019

Target coverage
Company-wide

Scope(s)Scope1
Scope2
Scope3

Scope 2 accounting method
Market-based

Scope 3 category(ies)Category 4: Upstream transportation and distribution
Category 7: Employee commuting
Category 9: Downstream transportation and distribution

Intensity metric
Other, please specify
t-CO2/construction sales (100 million yen)

Base year
2014

Intensity figure in base year for Scope 1 (metric tons CO2e per unit of activity)
13

Intensity figure in base year for Scope 2 (metric tons CO2e per unit of activity)
8

Intensity figure in base year for Scope 3 (metric tons CO2e per unit of activity)
15

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
68

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

36

% of total base year emissions in Scope 1 covered by this Scope 1 intensity
figure97% of total base year emissions in Scope 2 covered by this Scope 2 intensity
figure97% of total base year emissions in Scope 3 (in all Scope 3 categories) coveredby this Scope 3 intensity figure
97% of total base year emissions in all selected Scopes covered by this intensity
figure97

Target year
2051

Targeted reduction from base year (%)
85

Intensity figure in target year for all selected Scopes (metric tons CO2e perunit of activity) [auto-calculated]
5.4% change anticipated in absolute Scope 1+2 emissions-19% change anticipated in absolute Scope 3 emissions-40

Intensity figure in reporting year for Scope 1 (metric tons CO2e per unit ofactivity)
11

Intensity figure in reporting year for Scope 2 (metric tons CO2e per unit ofactivity)
4

Intensity figure in reporting year for Scope 3 (metric tons CO2e per unit ofactivity)
7

Intensity figure in reporting year for all selected Scopes (metric tons CO2e perunit of activity)
22% of target achieved relative to base year [auto-calculated]
69

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

45.7516339869

Target status in reporting year
Underway

Is this a science-based target?
Yes, we consider this a science-based target, and the target is currently being reviewed
by the Science Based Targets initiative

Target ambition
1.5°C aligned

Please explain target coverage and identify any exclusions
The targets are set on a business year basis.
Long-term target: "85% reduction compared to FY2014.3 in FY2051.3 (April 1, 2050March 31, 2051)" formulated in the long-term Obayashi Sustainability Vision 2050.

Plan for achieving target, and progress made to the end of the reporting year
Fuel-efficient driving
Purchase of new electricity
Alternative fuel purchase, etc.

List the emissions reduction initiatives which contributed most to achieving
this target

C4.2(C4.2) Did you have any other climate-related targets that were active in the reportingyear?
Net-zero target(s)C4.2c(C4.2c) Provide details of your net-zero target(s).

Target reference number
NZ1

Target coverage
Company-wide

Absolute/intensity emission target(s) linked to this net-zero target
Not applicableTarget year for achieving net zero
2050

Is this a science-based target?
No, but we anticipate setting one in the next 2 years

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Please explain target coverage and identify any exclusions
The scope of the program is company-wide, and expansion to the entire group is being
considered in the future.

Do you intend to neutralize any unabated emissions with permanent carbon
removals at the target year?
UnsurePlanned milestones and/or near-term investments for neutralization at target
year

Planned actions to mitigate emissions beyond your value chain (optional)
The long-term Obayashi Sustainability Vision 2050 from 2019 carries on the targets ofthe earlier Obayashi Green Vision 2050 (formulated in 2011), but we are considering
redefining the targets by carefully comparing how they were defined with SBT
standards.

C4.3(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Stage of development Number of
initiatives

Total estimated annual CO2e savings in metric tons
CO2e (only for rows marked *)Under investigation0

0

To be implemented*

00

Implementationcommenced*

00

Implemented*

3

13,777

Not to be implemented 0

0

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.

Initiative category and Initiative type71

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Energy efficiency in production processes
Machine/equipment replacement

Estimated annual CO2e savings (metric tons CO2e)2,290

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/ Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
85,935,000

Investment required (unit currency – as specified in C0.4)
60,000,000

Payback period
4-10 years

Estimated lifetime of the initiative>30 years

Comment
LED

Initiative category and Initiative type
Energy efficiency in production processes
Process optimization

Estimated annual CO2e savings (metric tons CO2e)10,696

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/ Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
451,914,000

Investment required (unit currency – as specified in C0.4)
0Payback period
No payback

Estimated lifetime of the initiative
16-20 years
72

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Comment
Fuel-efficient operations

Initiative category and Initiative type
Other, please specify
Other, please specify
Purchase of low-carbon energy

Estimated annual CO2e savings (metric tons CO2e)
791

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/ Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
10,990,128

Investment required (unit currency – as specified in C0.4)
0Payback period<1 year

Estimated lifetime of the initiative
6-10 years

Comment
New energy purchasing performance

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
MethodComment

Dedicated budget forenergy efficiency

Budget for developing technologies to strengthen buildings' energy
conservation standards.

Internal
incentives/recognition
programs

We have an "environmental award" system for initiatives onenvironmental effects (reducing greenhouse gas emissions, reducing
energy usage, increasing efficiency) that constitute activities ofremarkable merit or that are otherwise exemplary. Moreover, thepersonnel evaluation of employees include items on environmentrelated initiatives, which are reflected in salaries.

73

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Dedicated budget for other Budget for promoting the renewable energy business of the Obayashi
emissions reduction
Corporation and Group companies. Includes business review budget
activities
and technological development budget for solar and biomass power
generation, hydrogen use, and so forth.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
Yes

C4.5a
(C4.5a) Provide details of your products and/or services that you classify as lowcarbon products.

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
Other, please specify
JISType of product(s) or service(s)Cement and concrete
Other, please specify
Low carbon concrete

Description of product(s) or service(s)By reusing blast furnace slag fine powder and other by-products generated at steel
mills, CO2 emissions from materials used have been significantly reduced (by up to80%).

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
The Avoided Emissions Framework (AEF)

Life cycle stage(s) covered for the low-carbon product(s) or services(s)Cradle-to-gate

Functional unit used
ｔ-CO2

Reference product/service or baseline scenario used74

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

General ConcreteLife cycle stage(s) covered for the reference product/service or baseline
scenario
Cradle-to-gate

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
15,223Explain your calculation of avoided emissions, including any assumptions

Explain your calculation of avoided emissions, including any assumptions
Obayashi Corporation's low-carbon concrete, Clean-Crete, is a concrete that reduces CO2
emissions by up to 80% compared to ordinary concrete by replacing some of the cementwith blast furnace slag fine powder, a by-product of steel production, and fly ash, a byproduct of coal-fired power generation. While the production of ordinary concrete emits
approximately 260 kg of CO2 per m3, the production of Clean-Crete can reduce CO2
emissions by up to approximately 50 kg, resulting in a maximum emissions reduction of
approximately 80%.

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
8

Level of aggregation
Product or service

Taxonomy used to classify product(s) or service(s) as low-carbon
Other, please specify
CASBEE

Type of product(s) or service(s)Buildings construction and renovation
Other, please specify
Construction of buildings with specifications compliant with CASBEE criteria

Description of product(s) or service(s)CASBEE is a system that evaluates environmental performance by calculating
emissions, etc. during building operation at the time of design. It enables comparisonand calculation of reductions because emissions during operation can be calculated forboth the designed property and a typical building.

Have you estimated the avoided emissions of this low-carbon product(s) or
service(s)YesMethodology used to calculate avoided emissions
Estimating and Reporting the Comparative Emissions Impacts of Products (WRI)75

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Life cycle stage(s) covered for the reference product/service or baseline
scenario
Use stage

Functional unit used
ｔ-CO2

Reference product/service or baseline scenario used
Reference building in CASBEE calculations

Life cycle stage(s) covered for the reference product/service or baseline
scenario
Use stage

Estimated avoided emissions (metric tons CO2e per functional unit) compared
to reference product/service or baseline scenario
22,712

Explain your calculation of avoided emissions, including any assumptions
When environmental performance is evaluated by CASBEE, emissions during building
operation can be calculated per unit area. In this process, the emissions of a typical building
are calculated as the reference building and the emissions of the designed building as thebuilding in question, so the difference between the two can be calculated as the CO2
emission reduction rate and the amount of reduction.
For example, if the reference building is 100 kg-CO2/m2/year and the building in question is
70 kg-CO2/m2/year, then 1-80/100 = 0.2, a 20% reduction rate. If the total floor area is
10,000 m2, the reference building is 100 kg-CO2/m2/year x 10,000 m2 = 1,000 t-CO2/year,
and the building in question is 80 kg-CO2/m2/year x 10,000 m2 = 800 t-CO2/year, resulting
in an annual reduction of 1000 - 800 = 200 t-CO2/year.

Revenue generated from low-carbon product(s) or service(s) as % of total
revenue in the reporting year
42.1

C5 Emissions methodology
C5.1(C5.1) Is this your first year of reporting emissions data to CDP?
No

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C5.1a
(C5.1a) Has your organization undergone any structural changes in the reporting year,
or are any previous structural changes being accounted for in this disclosure ofemissions data?
Row1
Has there been a structural change?
No

C5.1b
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?
Change(s) in methodology, boundary, and/or reporting year definition?
Row1

No

C5.2
(C5.2) Provide your base year and base year emissions.
Scope 1
Base year start
1st April, 2013

Base year end
31st March, 2014

Base year emissions (metric tons CO2e)145,315

Comment
・Since FY1999.3, we have tracked use of electricity, diesel, kerosene, and gas at our
offices and construction sites based on the calculation criteria in the Guidelines forEnvironmental Accounting in Construction (JFCC) with regard to Scope 1 and 2
emissions.

・The tallying procedures are as follows. 1) For construction sites, tallyand calculate emissions for energy use based on EMS and CO2 emission tallying
systems. 2) For permanent departments, tally energy use and calculate emissions forstore facilities, equipment centers, etc., based on EMS and other surveys.

Scope 2(location-based)
Base year start
1st April, 2013

Base year end
31st March, 201477

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Base year emissions (metric tons CO2e)90,558Comment
・Since FY1999.3, we have tracked use of electricity, diesel, kerosene, and gas at our
offices and construction sites based on the calculation criteria in the Guidelines forEnvironmental Accounting in Construction (JFCC) with regard to Scope 1 and 2
emissions.

・The tallying procedures are as follows. 1) For construction sites, tallyand calculate emissions for energy use based on EMS and CO2 emission tallying
systems. 2) For permanent departments, tally energy use and calculate emissions forstore facilities, equipment centers, etc., based on EMS and other surveys.

Scope 2(market-based)
Base year start
1st April, 2013

Base year end
31st March, 2014

Base year emissions (metric tons CO2e)
91,066

Comment
・Since FY1999.3, we have tracked use of electricity, diesel, kerosene, and gas at our
offices and construction sites based on the calculation criteria in the Guidelines forEnvironmental Accounting in Construction (JFCC) with regard to Scope 1 and 2
emissions.

・The tallying procedures are as follows. 1) For construction sites, tallyand calculate emissions for energy use based on EMS and CO2 emission tallying
systems. 2) For permanent departments, tally energy use and calculate emissions forstore facilities, equipment centers, etc., based on EMS and other surveys.

Scope 3 category 1: Purchased goods and services
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
1,321,400

Comment

Scope 3 category 2: Capital goods
Base year start78

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
7,000

Comment

Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
12,700Comment

Scope 3 category 4: Upstream transportation and distribution
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
9,400

Comment

Scope 3 category 5: Waste generated in operations
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)98,600Comment

79

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Scope 3 category 6: Business travel
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
1,700

Comment

Scope 3 category 7: Employee
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
19,600Comment

Scope 3 category 8: Upstream leased assets
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)200

Comment

Scope 3 category 9: Downstream transportation and distribution
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)80

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

38,000Comment

Scope 3 category 10: Processing of sold products
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment
Not relevant
As a construction company, the company's end product is construction products.
Therefore, the company does not sell intermediate products.

Scope 3 category 11: Use of sold products
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)2,590,000

Comment

Scope 3 category 12: End of life treatment of sold products
Base year start
1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)34,300Comment

Scope 3 category 13: Downstream leased assets
Base year start81

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

1st April, 2019

Base year end
31st March, 2020

Base year emissions (metric tons CO2e)
5,500

Comment

Scope 3 category 14: Franchises
Base year start

Base year end

Base year emissions (metric tons CO2e)
5,500

Comment
Not relevant
As the largest general construction company in Japan, the main business is large-scaleconstruction work, which differs from management development through franchising, as
is carried out by housing manufacturers. Therefore, the question is not relevant because
the company does not engage in any business that falls under the category of franchise.

Scope 3 category 15: Investments
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment
Not relevant
According to the Basic Guidelines for Calculating Greenhouse Gas Emissions throughSupply Chains issued by the Ministry of the Environment and the Ministry of Economy,
Trade and Industry, the category concerned applies to investment businesses(businesses that invest for profit) and businesses that provide financial services and aremainly for private financial institutions (commercial banks, etc.). This does not apply to
our business as a construction company.

82

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Scope 3: Other (upstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment
Not relevant
CO2 emissions associated with manufacturing of leased assets (upstream), such as
construction machinery and temporary materials used at construction sites and fixturesand fittings used at offices, were not calculated because it is difficult to obtain
information due to the wide variety of lease sources.

Scope 3: Other (downstream)
Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment
Not relevant
CO2 emissions from dismantling and disposal of leased assets (downstream), namely
construction equipment and temporary materials used at construction sites and fixturesand fittings used at offices, were not calculated because it is difficult to obtain
information due to the wide range of leased assets.

C5.3(C5.3) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate emissions.
Other, please specify
Environmental Accounting Guidelines for the Construction Industry (Japan Construction Industry
Association)

C6 Emissions data83

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)146,656

Comment

C6.2(C6.2) Describe your organization's approach to reporting Scope 2 emissions.
Row1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment

C6.3(C6.3) What were your organization's gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
49,482

Scope 2, market-based (if applicable)
47,466

Comment

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No84

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C6.5
(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1,439,400

Emissions calculation methodology
Spend-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
The company always keeps track of the results of purchases and procurement frommaterial manufacturers in construction through the in-house system. This resulted in thecalculation of the amount of major construction materials (steel frame, rebar, cement,
ready-mixed concrete, and water) to be used in FY2021. The CO2 emissions intensity
during material production takes into account the life cycle assessment and uses the
LCI database IDEAv2.

Capital goods
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
12,300Emissions calculation methodology
Spend-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
This is independently computed by the Obayashi Corporation.

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated85

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Emissions in reporting year (metric tons CO2e)29,500Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
The Obayashi Corporation by itself. Calculated based on our total energy use from our
ISO14001: Environmental Management System (EMS) as well as "average emission
intensity of all power sources based on content analysis of energy greenhouse gas
composition."

Upstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)8,600

Emissions calculation methodology
Spend-based method
Fuel-based method
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Independently computed by the Obayashi Corporation. The corporation constantly
monitors records of purchases and procurement from material makers during
construction, doing so via our internal management systems. The Company
calculated the weight of each major material based on the construction andprocurement results for FY2021. Referencing the survey results of the former
Environmental Load Expert Committee of the BCS (present-day Japan Federation ofConstruction Contractors), we estimate the average transportation distance for eachmaterial and use emission intensity from the fuel use intensity of the ton-kilometer
method.

Waste generated in operations
Evaluation status
Relevant, calculated86

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Emissions in reporting year (metric tons CO2e)
191,200

Emissions calculation methodology
Waste-type-specific method
Other, please specify
Waste emissions from new construction x CO2 emissions intensity of treatment anddisposal

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Independently computed by the Obayashi Corporation.
According to the Basic Guidelines on Calculating Greenhouse Gas Emissions throughSupply Chains of the Ministry of the Environment and the Ministry of Economy, Tradeand Industry, "CO2 emissions from construction waste transportation can optionally be
included in Category 5 (waste from business)." We count it as emissions from wastetransportation under a separate item for emission sources called [Downstream
transportation and distribution].

Business travel
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1,800

Emissions calculation methodology
Other, please specify
The Company calculated the emissions intensity per employee based on the
Guidelines for Calculating Greenhouse Gas Emissions through Supply Chainsissued by the Ministry of the Environment and the Ministry of Economy, Trade andIndustry of Japan [Number of employees x CO2 emission intensity per employee].

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Independently computed by the Obayashi Corporation.

Employee commuting
Evaluation status
Relevant, calculated87

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Emissions in reporting year (metric tons CO2e)18,800Emissions calculation methodology
Other, please specify
Based on the Basic Guidelines for Calculating Greenhouse Gas Emissions throughSupply Chains issued by the Ministry of the Environment and the Ministry of
Economy, Trade and Industry, the Company calculated the emissions intensity forconstruction worker commuting based on [distance travelled/fuel consumption x
CO2 emissions intensity from diesel oil] and for employee commuting based on[transportation expense paid by each transportation category x emissions intensity
per transportation expense paid by each transportation category].

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Independently computed by the Obayashi Corporation.
Based on the Basic Guidelines on Calculating Greenhouse Gas Emissions throughSupply Chains of the Ministry of the Environment and the Ministry of Economy,
Trade and Industry,
1. we calculate CO2 emissions from construction worker commutes by multiplying theCO2 emission coefficient by the amount of diesel used from average commute
distance, number of persons traveling together, and fuel, converted using the total
number of workers from labor safety management data.
2.CO2 emissions from employee commutes is calculated multiplying allowance forcommuting by train, bus, ferry, taxi, or private car by emission intensity per travel
allowance according to traffic zone.

Upstream leased assets
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)200

Emissions calculation methodology
Other, please specify
Company-owned car and car lease x average transportation distance x CO2 emission
intensity
This is calculated using the "ton-kilometer method" in conformance with the Basic
Guidelines on Calculating Greenhouse Gas Emissions through Supply Chains of the
Ministry of the Environment and the Ministry of Economy, Trade and Industry.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
We include CO2 emissions from the transportation of construction machinery andprovisional materials at construction sites that correspond to lease assets (upstream)in Scope 1 of the annual environmental report.
At present, we are including this by calculating it from gasoline use surveyed and talliedfrom supply chains through our Tokyo head office and branches (13 locations) inISO14001 and EMS (Environmental Management System).

Downstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
71,000Emissions calculation methodology
Other, please specify
Waste emissions from new construction and dismantling x average transportation
distance x CO2 emission intensity

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
See entry for mission source [Waste generated in operations].

Processing of sold products
Evaluation status
Not relevant, explanation provided

Please explain
As a construction company, we consider buildings to be finished products. As such, we
do not sell intermediate products, so this is not relevant.

Use of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1,212,300

Emissions calculation methodology
89

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Methodology for direct use phase emissions, please specify
The amount is recorded for the year of completion of construction in FY2021. The
calculation is based on the CASBEE emissions per area during operation of the inhouse-designed and -constructed property x total floor area x 35 years in service.

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
The amount is recorded for the year of completion of construction in FY2021. The
calculation is based on the CASBEE emissions per area during operation of the inhouse designed and constructed property x total floor area x 35 years in service.

End of life treatment of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)51,100Emissions calculation methodology
Waste-type-specific method
Other, please specify
Waste emissions from dismantling x CO2 emission intensity from processing anddisposal

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
CO2 emissions accompanying construction and building dismantling are calculated
according to the case, including structure and usage. Moreover, for buildings designed
by ourselves, we include CO2 emissions during dismantling when calculating LCCO2
with CASBEE (Comprehensive Assessment System for Built Environment Efficiency).
However, the buildings we construct will not necessarily be dismantled by ourselves in
the future. Moreover, as buildings' years of durability and destruction period differ
greatly between decades because of methods of operations, maintenance, andmanagement, so it is impossible to predict how and when our structures will bedismantled. Thus, we are unable to predict annual CO2 emissions for this. Therefore, fordisposal of products sold, the Company decided to use the CO2 emissions fromconstruction waste from demolition work (including demolition of existing structures for
new construction) for which the company received orders in FY2021, instead ofdemolition treatment and disposal for projects constructed, as the CO2 emissions fromthe treatment and disposal of such waste. Moreover, we count CO2 emissions fromtransportation of construction waste in connection with dismantling as emissions from90

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

waste transportation under a separate item for emission sources called [Downstream
transportation and distribution].

Downstream leased assets
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)12,100Emissions calculation methodology
Lessor-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Independently computed by the Obayashi Corporation.
Calculated based on the leased building area x Building Energy Consumption Survey
Report [Report 43].

Franchises
Evaluation status
Not relevant, explanation provided

Please explain
As one of Japan's biggest comprehensive construction companies, we primarily engage
in large-scale construction jobs, which differ from businesses by franchises such as
house builders. So, since we do not conduct business that corresponds to franchises,
this question is not relevant.

Investments
Evaluation status
Not relevant, explanation provided

Please explain
According to the Basic Guidelines on Calculating Greenhouse Gas Emissions throughSupply Chains of the Ministry of the Environment and the Ministry of Economy, Tradeand Industry, this category applies to investors (businesses that invest for profit) as wellas businesses that offer financial services, so it is mainly for private financial institutions(commercial banks, etc.). This does not apply to our businesses as we are aconstruction company.

Other (upstream)
Evaluation status91

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Not relevant, explanation provided

Please explain
We do not calculate CO2 emissions associated with lease assets (upstream) in the formof construction machinery and provisional materials used at construction sites as well as
the "manufacturing" of appliances and equipment used in offices. This is because theinformation is difficult to obtain as we deal with many different leasers.

Other (downstream)
Evaluation status
Not relevant, explanation provided

Please explain
We do not calculate CO2 emissions associated with lease assets (downstream) in theform of construction machinery and provisional materials used at construction sites aswell as the "dismantling and disposal" of appliances and equipment used in offices. Thisis because the information is difficult to obtain as we deal with many different leasers.

C-CN6.6/C-RE6.6(C-CN6.6/C-RE6.6) Does your organization assess the life cycle emissions of new
construction or major renovation projects?
Assessment oflife cycle
emissions

Comment

Row1 Yes, quantitative When receiving orders for new constructions or large-scale repair
projects in our construction business, we largely categorize orders
assessment

as either including both design and construction or including only
construction. We are able to consider and make implementations
for life-cycle greenhouse gas emissions more independently withdesign and construction jobs.
Of the design and construction projects undertaken by the Obayashi
Corporation, nearly all new constructions have their environmental
specifications assessed using CASBEE. CASBEE assesses environmental
efficiency and life cycle CO2 by calculating "life cycle" CO2 emissions as asum of annual emissions per floor area at different stages: during"construction," "during repairs, improvements, and dismantling," and during"operations." This can be said to allow us to make quantitative
assessments of individual properties for specific years based on those
figures.

C-CN6.6a/C-RE6.6a(C-CN6.6a/C-RE6.6a) Provide details of how your organization assesses the life cycle
emissions of new construction or major renovation projects.
Projects
assessed

Earliest
project

Life cycle
stage(s)Methodolo Comment
gies/stand92

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

phase that mostards/tools
mostcommonly appliedcommonly covered
includes anassessment
Row1 All new
Designconstruction phaseand major
renovation
projects

Cradle-to- Other,pleasegate
specify

CASBEE (Comprehensive Assessment
System for Built Environment
Efficiency) is a comprehensive
assessment system of not only
CASBEE
environment-friendly performance inUsingassessment the form of energy conservation ands fromthe use of materials and equipment
CASBEE
with low environmental load but also(Comprehen
the quality of the building, including
sive
Assessment how comfortable the rooms are and the
System for scenery.
Built
Environment CASBEE has been continuously
Efficiency)
developed and maintained by theInstitute for Building Environment
and Energy Conservation since a
research
committee
forthecomprehensive
environmental
assessment of buildings was set up
as part of an industry-governmentacademia collaborative project withsupport from the Housing Bureau of
the Ministry of Land, Infrastructure,
Transport and Tourism in April
2001.
As buildings are used over several
decades, the Obayashi Corporationassesses annual emissions per floor
space during "operations" as a ratio
compared to the emissions of areference building, as calculated by
CASBEE. As CASBEE is revised atregular intervals, we set targets every
year using those ratios with the aim ofproviding the market with buildings thatare always more advanced than the
average buildings suggested by
CASBEE.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C-CN6.6b/C-RE6.6b(C-CN6.6b/C-RE6.6b) Can you provide embodied carbon emissions data for any ofyour organization’s new construction or major renovation projects completed in thelast three years?
Ability todiscloseembodiedcarbonemissions
Row1 Yes

Comment

The Obayashi Corporation assesses the buildings it designs and constructs in agiven year using CASBEE, tallies differences in CO2 emissions during
operations between the "reference buildings" that CASBEE indicates as
average every year and the "relevant buildings" based on the design
specifications, and publicizes our annual reductions.
The actual values are: FY2019 = 30,000 t-CO2, FY2020 = 33,000 t-CO2,
FY2021 = 22,000 t-CO2.

C-CN6.6c/C-RE6.6c(C-CN6.6c/C-RE6.6c) Provide details of the embodied carbon emissions of new
construction or major renovation projects completed in the last three years.

Year of completion
2022

Property sector
Other, please specify
New design and construction projects

Type of project
New construction

Project name/ID (optional)
Newly designed and constructed properties in FY2021

Life cycle stage(s) covered
Use stage

Normalization factor (denominator)
Other, please specify
Based on calculations according to the Building Standards Act

Denominator unit
square meter94

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Embodied carbon (kg/CO2e per the denominator unit)
22,712,000(%) of new construction/major renovation projects in the last three years
covered by this metric (by floor area)
26.26

Methodologies/standards/tools applied
Other, please specify
CASBEE

Comment
The total annual emissions of the reference building and the building in question arecalculated from the operational emissions by CASBEE for new buildings designed andconstructed in FY2021, and the difference is calculated as the amount of reduction. The
coverage ratio is calculated as a percentage of the annual construction floor area.

Year of completion
2021

Property sector
Other, please specify
New design and construction projects

Type of project
New construction

Project name/ID (optional)
New design and construction projects in FY2021.3

Life cycle stage(s) covered
Use stage

Normalization factor (denominator)
Other, please specify
Based on calculations according to the Building Standards Act

Denominator unit
square meter

Embodied carbon (kg/CO2e per the denominator unit)
33,399,000(%) of new construction/major renovation projects in the last three years
covered by this metric (by floor area)
38.61

Methodologies/standards/tools applied
Other, please specify

95

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

CASBEEy
Comment
We calculate the total annual emissions of "reference buildings" and "relevant buildings"
from CASBEE's emissions during operations for new design and construction projects in
FY2021.3, and estimate our reductions based on the difference. We calculate thecoverage rate using the ratio to annually constructed floor space

Year of completion
2020

Property sector
Other, please specify
New design and construction projects

Type of project
New construction

Project name/ID (optional)
New design and construction projects in FY2020.3

Life cycle stage(s) covered
Use stage

Normalization factor (denominator)
Other, please specify
New design and construction projects

Denominator unit
square meter

Embodied carbon (kg/CO2e per the denominator unit)
30,385,000(%) of new construction/major renovation projects in the last three years
covered by this metric (by floor area)
35.13

Methodologies/standards/tools applied
Other, please specify

CASBEE
Comment
We calculate the total annual emissions of "reference buildings" and "relevant buildings"
from CASBEE's emissions during operations for new design and construction projects in
FY2020.3, and estimate our reductions based on the difference. We calculate thecoverage rate using the ratio to annually constructed floor space.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C6.7
(C6.7) Are carbon dioxide emissions from biogenic carbon relevant to yourorganization?
No

C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.

Intensity figure
14.56

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)
194,122

Metric denominator
unit total revenue

Metric denominator: Unit total
13,329.1

Scope 2 figure used
Market-based% change from previous year
2.86

Direction of change
Increased

Reason for change
Total revenue (sales) output level
Net sales increased 10.7% over the previous year, and in FY2021, our non-consolidated
Scope 2 emissions were reduced by approximately 16.2% from the previous year due toincreased labour productivity and reduced work hours at construction sites. On the other
hand, total CO2 emissions increased by 13.8% due to an increase in large excavation
projects, resulting in a 2.86% increase in emissions per unit of sales in FY2021
compared to FY2020.

Intensity figure
14.54

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)
194,122

Metric denominator
Other, please specify
施工高Metric denominator: Unit total
13,351.2

Scope 2 figure used
Market-based% change from previous year
1.39

Direction of change
Increased

Reason for change
Construction volume output level
The denominator is FY2022.3 construction volume.
CO2 emissions per construction volume were calculated using construction volume (inJapanese yen), which is the main business, as the denominator. Construction work, themain business, increased 12.32% from the previous year. In FY2021, the nonconsolidated Scope 2 emissions were reduced by approximately 16.2% from theprevious year due to increased labour productivity and reduced work hours atconstruction sites. However, total CO2 emissions increased by 13.8% due to anincrease in large excavation projects, resulting in an increase in FY2021 emissions perunit of construction of 1.39% compared to FY2020.

C7 Emissions breakdown
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
No

C7.2
(C7.2) Break down your total gross global Scope 1 emissions by country/region.
Country/Region

Scope 1 emissions (metric tons CO2e)Japan

146,656

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C7.3
(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By business division
By activity

C7.3a(C7.3a) Break down your total gross global Scope 1 emissions by business division.
Business division

Scope 1 emissions (metric tons CO2e)

Civil Engineering

69,623

Building Construction

76,712

Other

321

C7.3c
(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity

Scope 1 emissions (metric tons CO2e)

Office146,335

Construction

321

C7.5
(C7.5) Break down your total gross global Scope 2 emissions by country/region.
Country/Region Scope 2, location-based (metric tons
CO2e)

Scope 2, market-based (metric tons
CO2e)

Japan

47,46649,482

C7.6(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By business division
By activity

C7.6a(C7.6a) Break down your total gross global Scope 2 emissions by business division.
Business division Scope 2, location-based (metric tons Scope 2, market-based (metric tons
CO2e)
CO2e)
Civil Engineering

22,03021,19499

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Building
Construction

21,43820,427

Other

6,014

5,845

C7.6c
(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity

Scope 2, location-based (metric tons
CO2e)

Scope 2, market-based (metric tons
CO2e)

Office43,46841,621

Construction 6,014

5,845

C7.9
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
Increased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to theprevious year.
ReasonChange in
Direction
emissionsof change(metric tons
CO2e)Change inrenewableenergyconsumption

12,742Emissionsvalue(percentage)

Decreased 7.48

Please explain calculation

Total CO2 emissions (Scope 2) in
FY2021 decreased compared to
FY2020 due to lower emission
coefficients of the electric powercompanies (Tohoku Electric Power,
Tokyo Electric Power, Chubu ElectricPower, and Chugoku Electric Power)with which Obayashi Corporation has
contracts. The amount of change(decrease) was Σ(FY2020 electricity
consumption x FY2020 emission factor)- (FY2021 electricity consumption x
FY2021 emission factor), which is
12,742 t-CO. The ratio of the amount ofchange (decrease) to the total amountof CO2 emissions (Scope 1 + 2) in
FY2020 (reported value for FY2020(actual value for FY2020): 170,421t-

100

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

CO2(*)) is 12,742t-CO2/170,421t-CO2=
7.48%.
* Our FY2021.3 results were changed
from the values in our previous CDP
response following third-party
verification.
Otheremissions
reduction
activities

2,290

Decreased 1.34

Regarding FY2022.3 total CO2
emissions (Scope 2), we estimate a2,290 t-CO2 reduction thanks to thepromotion of LED temporary lighting at
Obayashi Corporation construction
sites.
The ratio of the amount of change(decrease) to the total amount of CO2
emissions (Scope 1 + 2) in FY2020(reported value for FY2020 (actual value
for FY2020): 170,421t-CO2(*)) was
2,290t-CO2/170,421t-CO2 = 1.34%.
* The FY2020 actual values have beenchanged from the previous CDP
response values due to third-party
verification.

Divestment0

No change 0

Not Applicable

Acquisitions

0

No change 0

Not Applicable

Mergers0

No change 0

Not Applicable

Change in
output32,760

Increased

Emissions in FY2021 (Scope 1)
increased by 32,760 t-CO2 compared to
FY2020, mainly due to the greater useof heavy excavation equipment andpile-driving machines at construction
sites than in FY2020, despite efforts to
reduce CO2 emissions through fuelefficient operations at construction sites,
etc. The ratio of the amount of change(increase) to the total amount of CO2
emissions (Scope 1 + 2) in FY2020(reported value for FY2020 (actual value
for FY2020): 170,421t-CO2 (*)) was
32,760t-CO2/170,421t-CO2 = 19.22%.
* The FY2020 actual values have beenchanged from the previous CDP
response values due to third-party
verification.

19.22

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Change inmethodology0

No change 0

Not Applicable

Change inboundary0

No change 0

Not Applicable

Change inphysicaloperatingconditions

0

No change 0

Not Applicable

Unidentified0

No change 0

Not Applicable

Other

0

No change 0

Not Applicable

C7.9b(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Market-based

C8 Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Activity

Indicate whether your organization undertook this energyrelated activity in the reporting year

Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

No

Consumption of purchased or
acquired steam

Yes

Consumption of purchased or
acquired cooling

No

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Generation of electricity, heat,steam, or cooling

Yes

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Activity

Heatingvalue

MWh from
renewable
sources

MWh from nonrenewablesources

Total (renewable +non-renewable)
MWhConsumption of fuel(excluding feedstock)

HHV (higher
heatingvalue)

0596,690596,690

Consumption ofpurchased or acquired
electricity

0299,275

299,275

Consumption ofpurchased or acquired
steam

0

4

4

Consumption of selfgenerated non-fuelrenewable energy

822

Total energy
consumption

822

822

895,969

896,791

C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Fuel application

Indicate whether your organization undertakes thisfuel application

Consumption of fuel for the generation ofelectricity

Yes

Consumption of fuel for the generation of
heat

No

Consumption of fuel for the generation of
steam

No

Consumption of fuel for the generation ofcooling

No

Consumption of fuel for co-generation or
tri-generation

Yes

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Other biomass
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Other renewable fuels (e.g. renewable hydrogen)Heating value
HHV

Total fuel MWh consumed by the organization
0

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Coal
Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Oil
Heating value
HHV

Total fuel MWh consumed by the organization
595,534

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Gas
Heating value
HHV

Total fuel MWh consumed by the organization
1,156

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
Mainly used in offices (East Japan Robotics Center, West Japan Robotics Center,
Kyushu Machinery Works, Osaka Kizai Center), cafeterias, etc.

Other non-renewable fuels (e.g. non-renewable hydrogen)Heating value
HHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
84

Comment
Mainly used in offices (East Japan Robotics Center, West Japan Robotics Center,
Kyushu Machinery Plant, Osaka Kizai Center), cafeterias, etc.

Total fuelHeating value
HHV

Total fuel MWh consumed by the organization
596,690106

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
84

Comment

C8.2d(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
EnergyCarrier

Total Gross
generation(MWh)

Generation that isconsumed by theorganization (MWh)Gross generation Generation fromfrom renewable
renewable sources thatsources (MWh)is consumed by theorganization (MWh)Electricity

926

906

842

822

Heat

0

0

0

0

Steam

0

0

0

0

Cooling

0

0

0

0

C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts thatwere accounted for at a zero or near-zero emission factor in the market-based Scope
2 figure reported in C6.3.

Sourcing method
Green electricity products from an energy supplier (e.g. green tariffs)

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Solar, biomass, hydropower, etc.

Country/area of low-carbon energy consumption
Japan

Tracking instrument used
NFC - Renewable107

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Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)9,513Country/area of origin (generation) of the low-carbon energy or energy
attribute
Japan

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2,016

Comment

C8.2g(C8.2g) Provide a breakdown of your non-fuel energy consumption by country.

Country/areaJapan

Consumption of electricity (MWh)299,275

Consumption of heat, steam, and cooling (MWh)4Total non-fuel energy consumption (MWh) [Auto-calculated]299,279

C9 Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

Description
Waste

Metric value
15.6

Metric numerator

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Construction waste emissions from new construction (excl. sludge) [t]Metric denominator (intensity metric only)
Civil engineering construction volume for that year [100,000,000 yen]

% change from previous year
22.8

Direction of change
Increased

Please explain
We tally the total of construction waste excluding sludge from new construction basedon the manifestos as well as calculate construction volume output level from the annual
construction volume for new construction. We assess the emission reduction rate bylooking at aging for construction volume proportion. The increase in FY2021 was due toan increase in the number of large properties using the reverse casting method fromFY2020.

C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/CMM9.6/C-OG9.6/C-RE9.6/C-ST9.6/C-TO9.6/C-TS9.6(C-CE9.6/C-CG9.6/C-CH9.6/C-CN9.6/C-CO9.6/C-EU9.6/C-MM9.6/C-OG9.6/C-RE9.6/CST9.6/C-TO9.6/C-TS9.6) Does your organization invest in research and development(R&D) of low-carbon products or services related to your sector activities?
Investment in
low-carbon
R&D
Row1 Yes

Comment

The Obayashi Corporation is a construction business and is investing in thedevelopment of technologies for environmental performance andconstruction that conserve energy as low-carbon products as well as
technologies for building management as services. In FY2022.3,"environment-related development costs" corresponded to 5,886,000,000
yen of environmental preservation costs.

C-CN9.6a/C-RE9.6a(C-CN9.6a/C-RE9.6a) Provide details of your organization’s investments in low-carbon
R&D for real estate and construction activities over the last three years.

Technology area
Unable to disaggregate by technology area

Stage of development in the reporting year109

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Average % of total R&D investment over the last 3 years
41 - 60%

R&D investment figure in the reporting year (optional)
5,886,000

Comment
Since the construction of buildings involves introducing facilities and equipment toimprove performance during operations (incl. designs), selecting and applying materials
and products used, and packaging safety and other diverse functions, our R&D also
requires complex and diversified consideration. The same goes for R&D expenditures,
so we do not extract them individually but count them as "environment-related
development costs."

C-CN9.10/C-RE9.10(C-CN9.10/C-RE9.10) Did your organization complete new construction or majorrenovations projects designed as net zero carbon in the last three years?
No, but we plan to in the future

C-CN9.11/C-RE9.11(C-CN9.11/C-RE9.11) Explain your organization’s plan to manage, develop or
construct net zero carbon buildings, or explain why you do not plan to do so.
Obayashi Corporation's scope of work includes construction and some design. For
management, development, and construction of net zero carbon buildings, it is necessary toachieve zero emissions not only during construction, but also during operation and demolition,and this cannot be achieved solely within the scope of the Company's business. For thesereasons, the construction industry cannot be directly involved; on the other hand, however, it isindirectly involved in supplying buildings that reduce emissions during operation, but theCompany sees this as the responsibility of the construction industry. However, with the current
situation, in which the promotion of ZEB also aims for a reduction of 50% or more in building
performance, it must be said that it is difficult in terms of both technology and cost to achieve
zero emissions during operation by building performance alone. For emissions that cannot becompensated for by building performance, the project owner will procure CO2-free energy
during operation. Such a scheme – that is, one for project involvement over the life cycle – isunder consideration, but there are no concrete plans at this time.

C10 Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.

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Scope

Verification/assurance status

Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions and attach the relevant statements.

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance
Limited assurance

Attach the statement【Obayashi Corporation】Verification Report of Environmental Information.pdf

Page/section reference
1/1

Relevant standard
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.

Scope 2 approach
Scope 2 market-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance
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Limited assurance

Attach the statement【Obayashi Corporation】Verification Report of Environmental Information.pdf

Page/section reference
1/1

Relevant standard
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)

Proportion of reported emissions verified (%)
100

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Upstream leased assets
Scope 3: Downstream transportation and distribution
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products
Scope 3: Downstream leased assets

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Underway but not complete for reporting year – previous statement of process attachedType of verification or assurance
Limited assurance

Attach the statement【Obayashi Corporation】Verification Report of Environmental Information.pdf

Page/section reference
1/1

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Relevant standard
ABNT NBR ISO 14064-3:2007 (Associação Brasileira de Normas Técnicas)

Proportion of reported emissions verified (%)
100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
No, we do not verify any other climate-related information reported in our CDP disclosure

C11 Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
Tokyo CaT - ETS

C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you
are regulated by.
Tokyo CaT - ETS% of Scope 1 emissions covered by the ETS
0.86% of Scope 2 emissions covered by the ETS
8.65

Period start date
1st April, 2020

Period end date
31st March, 2025

Allowances allocated0

Allowances purchased
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

0

Verified Scope 1 emissions in metric tons CO2e
973.7

Verified Scope 2 emissions in metric tons CO2e
4,900

Details of ownership
Other, please specify
Facilities either partly or fully owned and managed by us

Comment
We report the CO2 emissions of our offices and facilities in Tokyo Metropolis (offices
and facilities with oil equivalent energy usage of at least 30 kL and less than 1,500 kL in
the previous fiscal year) in accordance with the Tokyo Metropolitan Government's
Program for Reporting on Measures against Global Warming. This system is part of theurban cap & trade system for office buildings, etc. that is led by Tokyo Metropolis. Since
the deadline for submitting the FY2022.3 results has yet to come, the reported values
are from the FY2021.3 results.

C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or
anticipate being regulated by?
The Obayashi Corporation owns offices as bases for our business activities. As with theactivities at our construction sites, office energy use and concomitant greenhouse gas
emissions have to be considered in terms of climate change measures for our businessactivities and it is important that we keep emissions down. Especially in Tokyo where we havegreatest number of employees, we report the CO2 emissions of our offices and facilities inTokyo Metropolis (offices and facilities with oil equivalent energy usage of at least 30 kL andless than 1,500 kL in the previous fiscal year) in accordance with the Tokyo Metropolitan
Government's Program for Reporting on Measures against Global Warming. The following aremeasures we implement and promote to cut emissions.
1. We are utilizing the ISO14001 organizational system that we are operating inside the
Obayashi Corporation to promote energy conservation, appointing an energy conservation
manager at each store and creating a system for promoting activities.
2. We measure the energy use figures of each department annually and announce them toall employees through the abovementioned system, thereby seeking to raise everyone's energy
conservation awareness.
By making reports according to this system, we encourage higher awareness about
emissions from office activities and thus contribute to keeping CO2 emissions down. Offices
are in constant use, so we will continue the virtuous circle of raising awareness and promoting
reduced emissions. The FY2021 report is currently under acceptance inspection (due at theend of August), and the total CO2 emissions for FY2020 were 5,873.7t-CO2 (973.7t-CO2 for
Scope 1 and 4,900t-CO2 for Scope 2), a decrease from 6569.8t-CO2 for the previous year. 2, adecrease from 6569.8t-CO2 in the previous year.

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C11.2
(C11.2) Has your organization originated or purchased any project-based carbon
credits within the reporting period?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
No, and we don’t anticipate doing so in the next two years

C12 Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our customers/clients
Yes, other partners in the value chain

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with yourcustomers.

Type of engagement and Details of engagement
Collaboration & innovation
Run a campaign to encourage innovation to reduce climate change impacts% of customers by number
100% customer-related Scope 3 emissions as reported in C6.5
40.2

Please explain the rationale for selecting this group of customers and scopeof engagement
In the Obayashi Corporation's corporate code of conduct, which is based on the
Obayashi Basic Principles, prescribes items like "environment-friendly society-building"and "providing high-quality structures and services" as "indicators for remaining acompany trusted by all stakeholders." We also provide all our clients (orderers) withenvironment-friendly technology, etc.
As such, all our clients are subject to engagement.
Furthermore, we work to provide clients with satisfactory high-quality structures andservices through integrated quality management based on our quality management
system, provide clients with initiatives and solutions for advanced technology

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development that meets their various needs, and support our clients in everything fromformulating BCP (business continuity planning) to restoration work during disasters.
Emissions during building operation are particularly large. For buildings designed andconstructed by Obayashi Corporation, the Company is actively proposing technologies
that enable customers (clients) to reduce CO2 emissions during building operation, suchas specifications that achieve a CASBEE rating of A or higher and ZEB proposals, byutilizing its technologies and expertise. Specifically, the environmental target of thedesign division in the environmental management system is to achieve a CO2 emission
reduction rate of 25% or more during the operation of buildings designed andconstructed by the Company (compared to CASBEE reference buildings). Since this has
a major impact on the Obayashi Corporation's Scope 3 CO2 emissions (category 11:
use of sold products) and the building operations costs of clients (orderers) with regard
to energy conservation during building operations, we are collaborating with all ourclients (orderers) from the sales and design stages.
In addition, the Company has established the percentage of projects with a CASBEE
rank of A or higher of the projects designed and constructed (2,000 m2 or more) as a
KPI related to “Establish an Environmentally Responsible Society," one of the ESG
materialities, with a target of 70% or higher in FY2021.

Impact of engagement, including measures of success
The Obayashi Corporation has set "Client satisfaction" as a KPI based on our ESG
materialities. The FY2021 result for "Customer Satisfaction" is 95.9%, which is on parwith the FY2020 result (96.8%). The direct measure of success with respect to working
with customers (clients) on climate-related issues is the environmental target item "CO2emission reduction rate at the design stage (compared to CASBEE standard)" for thedesign department of our environmental management system. In FY2021, the target
was 32%, compared to the target of 25% or more.
Through this, the Obayashi Corporation reduces our Scope 3 CO2 emissions (category
11: use of sold products) and we estimate that we can contribute to climate action by
reducing energy costs and CO2 emissions for building operations by clients (orderers).
Other results of all customer engagements will be a reduction in CO2 emissions and,furthermore, the promotion of technological innovation.
Moreover, we have set "Proportion of design and construction jobs (2,000 m2 or more)with CASBEE A rank or higher" as a KPI for the action plan "Promoting an environmentfriendly business" based on our ESG materialities.
The FY2021 result was 71%, an improvement over the FY2020 result (64%), and the
FY2021 target (70% or higher) was achieved.
From the above, it can be said that engagement with all customers has been successful.

C12.1d(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
Obayashi Corporation believes that hydrogen, which does not emit CO2 at the usage stage, will
be one important energy source for society in the future and a next-generation energy source
toward the realization of carbon neutrality by 2050. The Company is promoting a demonstration

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project that aims to realize low-cost hydrogen and promote its use by pursuing both efficiency
and economy in each process, from production to transportation and utilization.
The main examples for the reporting year are as follows:・First in Japan to produce and supply green hydrogen from geothermal heat (Kokonoe-cho,
Kusu-gun, Oita Prefecture)
Geothermal energy, a renewable energy source, is expected to offer a stable energy supply
in Japan and is positioned as an important energy source in Japan's green energy strategy.
However, power generation facilities are often located in mountainous areas, and in somecases, even if power can be generated, it is physically difficult to "grid-connect" the facility tothe power grid. Against this backdrop, MHI is engaged in a demonstration project in Kokonoecho, Kusu-gun, Oita Prefecture, with the aim of implementing green hydrogen produced bygeothermal-derived electricity in society.
In July 2021, with the cooperation of the local Oita Geothermal Development Co., ahydrogen production plant was installed at a geothermal power generation facility and began
producing green hydrogen (10 Nm³/h) using geothermally generated electricity (125 KW). Oita
Geothermal Development Co., Ltd. has been working on a geothermal power generation
project in Kokonoe-cho, Kusu-gun, Oita Prefecture since 2013. Under the corporate philosophyof contributing to regional and social development through the development of renewableenergy, the company has not only reached consensus with local residents but has also
contributed to the region. The green hydrogen produced is used at local hydrogen stations andresearch facilities for hydrogen energy-related products. In addition, the hydrogen fuel wasused as part of the fuel for Toyota Motor Corporation's "Corolla with hydrogen engine" in the
Super Taikyu Series 2021 Round 4 held in Hita City, Oita Prefecture, Japan, from July 31 toAugust 1, 2021.
・Future Concept of Green Hydrogen Supply Chain Construction (Taupo, New Zealand*1)
In Taupo, located between Auckland and the capital Wellington on the North Island of New
Zealand, a hydrogen production and supply demonstration facility utilizing geothermal power
generation was constructed through Halcyon Power*3, which was jointly established with
Tuaropaki Trust*2, and production of green hydrogen began in March 2021. The first
megawatt-class hydrogen production plant in the country produces 100 tons of hydrogen peryear (equivalent to 1,000 fuel cell vehicles), and the entire supply chain, from transportation toutilization, is being constructed and its business feasibility is being verified. In December 2021,
the company began test sales for vehicles used in public transportation and logistics facilities toconfirm pricing based on manufacturing and transportation costs as well as social acceptability.
In the future, the company intends to expand the use of this material in a wide range ofapplications, such as hydrogen stations and raw materials for chemical plants, and will develop
its business with a view to exporting the material from New Zealand to Japan and othercountries.
*1 Taupo
Taupo is located between Auckland, the largest commercial city in the northern part of theNorth Island of New Zealand, and Wellington, the southernmost city and the capital of the North
Island. Geothermal power generation is thriving, and there are many large-scale geothermal
power plants.

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*2 Tuaropaki Trust Inc.
A trust organization owned by indigenous Maori landowners of New Zealand, the Trust hasdeveloped one of the largest geothermal power plants in the country with an emphasis on
sustainable resource use and has operated it steadily for 19 years. The geothermal power,
steam, and waste heat from the plant are also used for nearby agribusinesses such as dairy
processing and greenhouse cultivation.
*3 Halcyon Power
Halcyon Power was established as a joint venture between Obayashi Corporation andTuaropaki Trust to examine the feasibility of a green hydrogen supply chain. The objective is toexpand the use of green hydrogen not only through its production, but also through its entire
supply chain, from transportation to consumption, and to understand the technical andinstitutional issues at each stage as well as costs and social acceptability.

C12.2(C12.2) Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
Yes, climate-related requirements are included in our supplier contracts

C12.2a(C12.2a) Provide details of the climate-related requirements that suppliers have tomeet as part of your organization’s purchasing process and the compliancemechanisms in place.

Climate-related requirement
Complying with regulatory requirements

Description of this climate related requirement
Obayashi Corporation has established the Obayashi Group CSR Procurement
Policy and the Obayashi Group CSR Procurement Guidelines and requires suppliers
to comply with them. The guidelines stipulate that the Company shall promotebusiness activities that take into consideration environmental conservation andreduction of environmental impact, including measures against climate change, andshall comply with all relevant laws and regulations, international conventions, andsocial norms applicable in the countries and regions in which it operates. All
guideline items, including these, are stipulated in the terms and conditions of thecontract concluded with the supplier and confirmed at the time of contract. In
addition, every fiscal year, a questionnaire is sent to suppliers to check theircompliance with the guidelines. In FY2021, the questionnaire was sent toapproximately 1,300 suppliers, with a response rate of 90.9%. The Company
continues to conduct the survey and enhance supply chain management by

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enriching the content of the survey and expanding the number of companies towhich it is sent.
% suppliers by procurement spend that have to comply with this climaterelated requirement100% suppliers by procurement spend in compliance with this climate-related
requirement
100

Mechanisms for monitoring compliance with this climate-related requirement
Supplier self-assessment

Response to supplier non-compliance with this climate-related requirement
Retain and engage

C12.3(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?
Row1
Direct or indirect engagement that could influence policy, law, or regulationthat may impact the climate
Yes, we engage indirectly through trade associations
Yes, we engage indirectly by funding other organizations whose activities may influence
policy, law, or regulation that may significantly impact the climate

Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes

Attach commitment or position statement(s)[Obayashi Corporation] JCI_20210419_Message to the Japanese Government fromthe Climate Change Initiative_Ambitious 2030 Targets to Achieve the Paris Agreementin Japan.pdf[Obayashi Corporation] JCLP_20210909_Statement on the Draft of the 6th Energy
Basic Plan.pdf[Obayashi Corporation] JCLP_20210513_Opinion on diversification of non-FIT
renewable energy options in Japan.pdf[Obayashi Corporation] JCLP_20210422_Welcome Japan's New 2030 Greenhouse
Gas Emission Reduction Target.pdf[Obayashi Corporation] JCLP_20210728_Opinion for promoting the design of carbon
tax and emissions trading system.pdf
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[Obayashi Corporation] JCLP_20210527_Opinion on conversion of freight vehicles
to zero-emission vehicles.pdf

Describe the process(es) your organization has in place to ensure that yourengagement activities are consistent with your overall climate change
strategy
Obayashi Corporation is a member of the Board of Directors, which oversees
climate-related risks and opportunities, and a member of the CSR Committee(chaired by the president), which formulates basic policies, develops measures, andevaluates implementation status to promote CSR activities, including activities
related to climate-related issues. In addition, the director in charge of environment(Executive Vice President and Representative Director), who chairs theEnvironmental Management Expert Committee, a subordinate body of the CSR
Committee, participates as a member of the Environmental Committee of the Japan
Federation of Construction Contractors Associations (JFCCA). Moreover, membersof the secretariat of the CSR Committee (ESG/SDGs Promotion Department, Group
Corporate Strategy Office) and the secretariat of the Environmental Management
Expert Committee (chaired by the director in charge of environment), a subordinatebody of the CSR Committee (Environmental Management Department, Safety &Quality Management Division), participate as members of the Environmental
Management Subcommittee and the Global Warming Prevention Subcommittee,
which are subordinate bodies of the JFCCA's Environmental Committee. The
content of deliberations on climate change issues by the Environmental Committee,
the Environmental Management Subcommittee, and the Global Warming Prevention
Subcommittee of the JFCCA is reported to and shared with the Board of Directors,
the CSR Committee, and the Environmental Management Expert Committee of
Obayashi Corporation, thereby ensuring consistency with the company's climatechange strategy.
In addition, if a disagreement with Obayashi Corporation's climate change strategy
is recognized, the Company's members may provide opinions, etc., to the relevant
committee or subcommittee of the JFCCA and work to indirectly influence public
policy to bring it into line with Obayashi's climate change strategy. The Company
also endorses, with the approval of its directors, the statements of the Japan
Climate Initiative (JCI) and the recommendations of the Japan Climate LeadersPartnership (JCLP).

C12.3b
(C12.3b) Provide details of the trade associations your organization engages withwhich are likely to take a position on any policy, law or regulation that may impact theclimate.

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Trade association
Other, please specify

Japan Federation of Construction Contractors
Is your organization's position on climate change consistent with theirs?
Consistent

Has your organization influenced, or is your organization attempting to
influence their position?
We have already influenced them to change their position

State the trade association’s position on climate change, explain where yourorganization’s position differs, and how you are attempting to influence theirposition (if applicable)
JFCCA is a nationwide association of general construction companies andconstruction contractor associations whose members are engaged in theconstruction industry. It works to solve basic domestic and international problems inthat industry, including various systems related to it. It also aims to promote thesound development of the construction industry in Japan by promoting related
technological progress and management improvements, thereby contributing to theenrichment of people's lives and the foundation of industrial activities. The purposeof JFCCA's activities related to climate change countermeasures is to conduct
surveys and research on environmental issues related to the construction industry,
make proposals, and promote countermeasures. As an organization, JFCCA has
established and is promoting the Environment Committee, several specialized
subcommittees, including the Environmental Management Subcommittee and the
Global Warming Countermeasures Subcommittee, and the Carbon Neutral
Measures Working Group. Like Obayashi Corporation, JFCCA supports theJapanese government's Carbon Neutral by 2050 strategy. Specifically, the Voluntary
Action Plan on the Environment in the Construction Industry (first edition) was
formulated in 1996, organizing the construction industry's activities for theenvironment into three frames based on environmental management: decarbonizedsociety, recycling-oriented society, and society in harmony with nature. In addition,
the 7th edition of the Environmental Voluntary Action Plan for the Construction
Industry was formulated and published in April 2021, after a review of new targets
for a smooth transition to a decarbonized society and circular economy. The 7thedition of the Voluntary Action Plan for the Environment in the Construction Industry
sets the goals of reducing CO2 emissions at the construction stage to "aim for a
40% reduction in CO2 emissions per unit of production in the early years of FY2030
to 2040 (compared to FY2013)" and "promote initiatives to achieve virtually zeroCO2 emissions at the construction stage by 2050." In addition, the Company has set
the following goal for curbing CO2 emissions during operation at the design stage:
Promote the contribution of design and construction to global warming prevention tosociety by identifying and disclosing the amount of CO2 reduction, CO2 reduction
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rate, and energy conservation performance index values. In FY2021, the presidentof Obayashi Corporation was the vice president (representative director) of the
JFCCA, and the director in charge of the environment (executive vice president andrepresentative director) was a member of the JFCCA's Environment Committee. In
addition, members of the secretariat of Obayashi Corporation's CSR Committee andEnvironmental Management Expert Committee participated as members of theEnvironmental Management Subcommittee and Global Warming Prevention
Subcommittee, which are subordinate organizations of the JCIA's Environmental
Committee and work together to formulate, implement, and disseminate theVoluntary Action Plan on the Environment in the Construction Industry. In addition,
the Company participates as a member of a study group (Global Warming
Prevention Subcommittee) in the construction industry regarding the Keidanren
Carbon Neutral Action Plan and is involved in the formulation of said plan and its
implementation.
Funding figure your organization provided to this trade association in thereporting year, if applicable (currency as selected in C0.4) (optional)
Describe the aim of your organization’s funding
Have you evaluated whether your organization’s engagement with this tradeassociation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

C12.3c(C12.3c) Provide details of the funding you provided to other organizations in thereporting year whose activities could influence policy, law, or regulation that may
impact the climate.

Type of organization
Other, please specify
Japan Climate Leaders PartnershipState the organization to which you provided funding
The Japan Climate Leaders Partnership (JCLP) is a unique Japanese business groupthat was launched in 2009 with the recognition that industry must develop a healthy
sense of urgency and initiate proactive action to achieve a sustainable decarbonizedsociety. By leading the transition to a decarbonized society, the Company aims tobecome one that is sought after by society. The objective of the activity is to achieve a
rapid transition to a decarbonized society and to achieve the 1.5°C target in order toavoid a climate crisis. In addition, the Company's activity policy is to lead Japan inachieving policy change through the five pillars of policy engagement, promoting our122

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

own decarbonization, providing solutions to decarbonize society, communicating withsociety, and collaborating with our global network.

Funding figure your organization provided to this organization in the reporting
year (currency as selected in C0.4)
200,000

Describe the aim of this funding and how it could influence policy, law or
regulation that may impact the climate
By joining and funding the JCLP, which aims to achieve a rapid transition to a
decarbonized society and achieve the 1.5°C target to avoid a climate crisis, it becomes
possible to lobby countries and engage them in policies that may affect climate change.

Have you evaluated whether this funding is aligned with the goals of the Paris
Agreement?
Yes, we have evaluated, and it is aligned

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
In mainstream reports

StatusComplete

Attach the document【Obayashi Corporation】118th Annual Securities Report.pdf

Page/Section reference
・Governance：P39-43
・Strategy：P11-16
・Risks & Opportunities：P11-19
・Emission targets：P14
・Other metrics：P14

Content elements
Governance
Strategy
Risks & Opportunities
Emission targets
Other metrics
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Comment

Publication
In voluntary sustainability report

StatusUnderway – previous year attached

Attach the document【Obayashi Corporation】OBAYASHI Corporate Report 2021.pdf
Page/Section reference
・Governance：P37、P39-40、P42
・Strategy：P42
・Risks & Opportunities：P42-44
・Emissions figures：P14
・Emission targets：P38、P40、P43
・Other metrics：P14、P38-40

Content elements
Governance
Strategy
Risks & Opportunities
Emissions figures
Emission targets
Other metrics

Comment
The Obayashi Corporate Report (integrated report) collects important information forunderstanding the Obayashi Corporation and the Obayashi Group. More detailed
information can be found in our ESG Data Book and on our website.

C15 Biodiversity
C15.1(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related matters within your organization?
Board-level oversightand/or executive
management-level

Description of oversight and objectives relating tobiodiversity

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

responsibility forbiodiversity-related issues
Row Yes, both board-level1
oversight and executive
management-level
responsibility

Obayashi Corporation has established a Sustainability
Committee under the Board of Directors, chaired by the
President and CEO and composed of outside directors and othermembers, to implement corporate activities based on the
Obayashi basic philosophy and to promote efforts to achievesustainability for society and itself. The Sustainability Committee
shall meet at least twice a year to identify sustainability issues,
review and recommend policies to address the identified
sustainability issues, and review their implementation in
execution. Based on discussions at the Sustainability
Committee, the Board of Directors will determine management
policies for promoting ESG management and achieving the
SDGs. On the business execution side, the Corporate Planning
Committee and the specialized committees in each sustainability
field established within the Corporate Planning Committee,
which are commissioned by the President, are responsible forformulating and promoting measures in line with the
management policy decided by the Board of Directors,
monitoring implementation status, disseminating information andpromoting internal penetration, and promoting group-wide
initiatives. The Environmental Management Expert Committee,
chaired by the director in charge of the environment, wasestablished within the above-mentioned specialized committees
to formulate strategies and policies for the Obayashi Group's
environmental management, review targets and activities basedon performance evaluations of the EMS, and promote
continuous improvement. Based on the plans and targets set by
the Environmental Management Committee, the divisions incharge of the environment at the head office, each head officeand branch, and group companies are promoting andimplementing specific activities.

C15.2(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether your organization made a public commitment Initiatives endorsed
or endorsed any initiatives related to biodiversity
Row Yes, we have endorsed initiatives only1

CBD - Global
Biodiversity Framework

C15.3(C15.3) Does your organization assess the impact of its value chain on biodiversity?
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Does your organization assess the impact of its value chain on biodiversity?
Row 1 No, and we do not plan to assess biodiversity-related impacts within the next two years

C15.4(C15.4) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?
Have you taken any actions in the reporting period to progress your biodiversityrelated commitments?
Row
1

No, and we do not plan to undertake any biodiversity-related actions

C15.5(C15.5) Does your organization use biodiversity indicators to monitor performanceacross its activities?
Does your organization use indicators to monitor
biodiversity performance?
Row
1

Indicators used to monitor
biodiversity performance

No

C15.6
(C15.6) Have you published information about your organization’s response tobiodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report typeContent
elements

Attach the document and indicate where in the document therelevant biodiversity information is locatedNopublications

C16 Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

C16.1
(C16.1) Provide details for the person that has signed off (approved) your CDP climatechange response.

Row 1

Job title

Corresponding job category

Representative Director President

President

SC Supply chain
SC0.0(SC0.0) If you would like to do so, please provide a separate introduction to thismodule.

SC0.1(SC0.1) What is your company’s annual revenue for the stated reporting period?
Annual revenue
Row 1

1,374,132,000,000

SC1.1(SC1.1) Allocate your emissions to your customers listed below according to thegoods or services you have sold them in this reporting period.

Requesting member
KAO Corporation

Scope of emissions
Scope 1

Allocation level
Company wide

Allocation level detail

Emissions in metric tons of CO2e14.6226

Uncertainty (± %)10Major sources of emissions
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total CO2 emissions under Scope 1 and Scope 2.
Scope 1 and Scope 2 are CO2 emissions calculated from use of power, diesel,
kerosene, gas, etc. consumed at the construction sites.

Verified
Yes

Allocation method
Other, please specify
It is calculated by multiplying the volume of completed construction in FY2022.3 inprojects ordered by clients with CO2 emission intensity per construction project in
FY2022.3 (construction).

Market value or quantity of goods/services supplied to the requesting member

Unit for market value or quantity of goods/services supplied

Please explain how you have identified the GHG source, including major
limitations to this process and assumptions madeWe have tracked use of electricity, diesel, kerosene, and gas at our construction sites
based on the calculation criteria in the Guidelines for Environmental Accounting inConstruction (JFCC) with regard to Scope 1 and 2 emissions.
More concretely, we tally energy use through our own CO2 emission aggregation
systems and calculate emissions as well as O2 emission intensity per construction
project.

Requesting member
NEC Corporation

Scope of emissions
Scope 1

Allocation leve
Company wide

Allocation level detail

Emissions in metric tons of CO2e
260.6

Uncertainty (± %)10Major sources of emissions

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total CO2 emissions under Scope 1 and Scope 2.
Scope 1 and Scope 2 are CO2 emissions calculated from use of power, diesel,
kerosene, gas, etc. consumed at the construction sites.

Verified
Yes

Allocation method
Other, please specify
It is calculated by multiplying the volume of completed construction in FY2022.3 inprojects ordered by clients with CO2 emission intensity per construction project in
FY2022.3 (construction).

Market value or quantity of goods/services supplied to the requesting member

Unit for market value or quantity of goods/services supplied

Please explain how you have identified the GHG source, including major
limitations to this process and assumptions madeWe have tracked use of electricity, diesel, kerosene, and gas at our construction sites
based on the calculation criteria in the Guidelines for Environmental Accounting inConstruction (JFCC) with regard to Scope 1 and 2 emissions.
More concretely, we tally energy use through our own CO2 emission aggregation
systems and calculate emissions as well as O2 emission intensity per construction
project.

Requesting member
Toyota Motor Corporation

Scope of emissions
Scope 1

Allocation level
Company wide

Allocation level detail

Emissions in metric tons of CO2e4,029.77

Uncertainty (± %)10Major sources of emissions

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total CO2 emissions under Scope 1 and Scope 2.
Scope 1 and Scope 2 are CO2 emissions calculated from use of power, diesel,
kerosene, gas, etc. consumed at the construction sites.

Verified
Yes

Allocation method
Other, please specify
It is calculated by multiplying the volume of completed construction in FY2022.3 inprojects ordered by clients with CO2 emission intensity per construction project in
FY2022.3 (construction).

Market value or quantity of goods/services supplied to the requesting member

Unit for market value or quantity of goods/services supplied

Please explain how you have identified the GHG source, including major
limitations to this process and assumptions madeWe have tracked use of electricity, diesel, kerosene, and gas at our construction sites
based on the calculation criteria in the Guidelines for Environmental Accounting inConstruction (JFCC) with regard to Scope 1 and 2 emissions.
More concretely, we tally energy use through our own CO2 emission aggregation
systems and calculate emissions as well as O2 emission intensity per construction
project.

Requesting member
EQUINIX, INC.

Scope of emissions
Scope 1

Allocation level
Company wide

Allocation level detail

Emissions in metric tons of CO2e667.31

Uncertainty (± %)10Major sources of emissions
Total CO2 emissions under Scope 1 and Scope 2.

130Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Scope 1 and Scope 2 are CO2 emissions calculated from use of power, diesel,
kerosene, gas, etc. consumed at the construction sites.

Verified
Yes

Allocation method
Other, please specify
It is calculated by multiplying the volume of completed construction in FY2022.3 inprojects ordered by clients with CO2 emission intensity per construction project in
FY2022.3 (construction).

Market value or quantity of goods/services supplied to the requesting member

Unit for market value or quantity of goods/services supplied

Please explain how you have identified the GHG source, including major
limitations to this process and assumptions madeWe have tracked use of electricity, diesel, kerosene, and gas at our construction sites
based on the calculation criteria in the Guidelines for Environmental Accounting inConstruction (JFCC) with regard to Scope 1 and 2 emissions.
More concretely, we tally energy use through our own CO2 emission aggregation
systems and calculate emissions as well as O2 emission intensity per construction
project.

Requesting member
Microsoft Corporation

Scope of emissions
Scope 1

Allocation level
Company wide

Allocation level detail

Emissions in metric tons of CO2e0

Uncertainty (± %)10Major sources of emissions

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Total CO2 emissions under Scope 1 and Scope 2.
Scope 1 and Scope 2 are CO2 emissions calculated from use of power, diesel,
kerosene, gas, etc. consumed at the construction sites.

Verified
Yes

Allocation method
Other, please specify
It is calculated by multiplying the volume of completed construction in FY2022.3 inprojects ordered by clients with CO2 emission intensity per construction project in
FY2022.3 (construction).

Market value or quantity of goods/services supplied to the requesting member

Unit for market value or quantity of goods/services supplied

Please explain how you have identified the GHG source, including major
limitations to this process and assumptions madeWe have tracked use of electricity, diesel, kerosene, and gas at our construction sites
based on the calculation criteria in the Guidelines for Environmental Accounting inConstruction (JFCC) with regard to Scope 1 and 2 emissions.
More concretely, we tally energy use through our own CO2 emission aggregation
systems and calculate emissions as well as O2 emission intensity per construction
project.

SC1.2(SC1.2) Where published information has been used in completing SC1.1, pleaseprovide a reference(s).
ESG Data Book

SC1.3
(SC1.3) What are the challenges in allocating emissions to different customers, andwhat would help you to overcome these challenges?
Allocation challenges

Please explain what would help you overcome thesechallenges

Managing the different emission
factors of diverse and numerous
geographies makes calculating total
footprint difficult

Construction offices and sites are set up and managed
temporarily in the construction industry, so we calculate total
emissions for the whole corporation based on project intensity
in sampling surveys.
It is possible to calculate emissions by individual client fromtheir proportion (ratio) of annual projects, so we report these132

Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

emissions to clients who request it, but do not calculate
emissions for clients who do not need it themselves.

SC1.4(SC1.4) Do you plan to develop your capabilities to allocate emissions to yourcustomers in the future?
No

SC1.4b
(SC1.4b) Explain why you do not plan to develop capabilities to allocate emissions toyour customers.
Construction offices and sites are set up and managed temporarily in the construction industry,so we estimate totals based on sampling surveys. Because of this, we cannot accurately
calculate emissions by individual client.

SC2.1(SC2.1) Please propose any mutually beneficial climate-related projects you could
collaborate on with specific CDP Supply Chain members.

Requesting member
KAO Corporation

Group type of project
Change to provision of goods and services

Type of project
Other, please specify
Proposal and provision of energy efficient buildings

Emissions targeted
Actions that would reduce both our own and our customers’ emissions

Estimated timeframe for carbon reductions to be realized
Other, please specify
From product delivery to end of use

Estimated lifetime CO2e savings
0

Estimated payback

Details of proposal

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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Requesting member
NEC Corporation

Group type of project
Change to provision of goods and services

Type of project
Other, please specify
Proposal and provision of energy efficient buildings

Emissions targeted
Actions that would reduce both our own and our customers’ emissions

Estimated timeframe for carbon reductions to be realized
Other, please specify
From product delivery to end of use

Estimated lifetime CO2e savings
0

Estimated payback

Details of proposal

Requesting member
Toyota Motor Corporation

Group type of project
Change to provision of goods and services

Type of project
Other, please specify
Proposal and provision of energy efficient buildings

Emissions targeted
Actions that would reduce both our own and our customers’ emissions

Estimated timeframe for carbon reductions to be realize
Other, please specify
From product delivery to end of use

Estimated lifetime CO2e savings
0

Estimated payback

Details of proposal
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Requesting member
EQUINIX, INC.

Group type of project
Change to provision of goods and services

Type of project
Other, please specify
Proposal and provision of energy efficient buildings

Emissions targeted
Actions that would reduce both our own and our customers’ emissions

Estimated timeframe for carbon reductions to be realize
Other, please specify
From product delivery to end of use

Estimated lifetime CO2e savings
0

Estimated payback

Details of proposal

Requesting member
Microsoft Corporation

Group type of project
Change to provision of goods and services

Type of project
Other, please specify
Proposal and provision of energy efficient buildings

Emissions targeted
Actions that would reduce both our own and our customers’ emissions

Estimated timeframe for carbon reductions to be realize
Other, please specify
From product delivery to end of use

Estimated lifetime CO2e savings
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Obayashi Corporation CDP Climate Change 2022 Questionnaire 2nd August, 2022

Estimated payback

Details of proposal

SC2.2(SC2.2) Have requests or initiatives by CDP Supply Chain members prompted yourorganization to undertake organizational-level emissions reduction initiatives?
No

SC4.1
(SC4.1) Are you providing product level data for your organization’s goods orservices?
No, I am not providing data

Submission of Your Response
In which language do you submit your response?
Japanese

Please confirm how you would like your response to be handled by the CDP.

We submit the
response.

We understand that our response will be sharedwith all parties requesting the response

Publicly available/ Not
publicly available

Yes

Publicly available

Please confirm below.
I have read the terms and conditions and agree to them.

136