List of Materialities, initiatives, and KPIs
Materiality

Issue

Reason for selection

Risks and opportunities

Specific initiatives【Risks】●Accommodation of policies and regulations●Supply of biomass power plants●Changes in customer requirements, for exampleetc.) boilers

intended to realize a decarbonized society

1. Promoting renewable energy (non-Helping combat climate change fossil energy)

2. Improving energy eﬃciency

We will help alleviate the global

additional improvements in energy efficiency

accumulated over more than 80years.

【Opportunities】●Growth in the market for renewable energy andenvironmental businesses due to strengthening ofenvironmental regulations●Growth in energy usage demand for biomass●Reduction in CO2 emissions (energy●FY2026●Improvement in energy efficiency at●FY2030

800,000 tons per year
1.25 million tons per year
2.5 million tons per year

facilities Takuma operates on a contractualbasis●Proposal of energy efficiency

improvements for customer facilities and(including waste, sewage sludge, and other resources) equipment

Edue to newly delivered power plants(*1)●FY2023consumption) by Takuma

2. In-house CO2 emissions reduction targets(*2,*3,*4,*5)●FY2023
Zero effective CO2 emissions

in order to alleviate climate change【Risks】

Conserving resources andprotecting the environment

environmental impacts

2. Making eﬀective use of unutilized
resources

plantsshrinking of the population●Supply of sewage sludge-fueled power

the conservation of resources with

【Opportunities】●Supply of advanced treatment sand filter

make it possible to reduce

growth in demand for use of energy from waste in

We will contribute to the effective1. Conserving resources and reducing●Reduction in domestic waste volume due to theuse of unutilized resources and toTakuma technologies while helping●Growth of appropriate treatment of waste andenvironmental impacts and realize a emerging nations
Sound Material-Cycle Society.
●Growth in expectations towards resource-saving
and low-environmental-impact systems and theeffective use of unutilized resourcesfrom Scope 1 and Scope 2●Supply of high-eﬃciency, low-environmental-impact Energy from Waste

at the Takuma Head Office and Harima Factory●FY2026

Zero effective CO2 emissions●Establishment of combustion technology

1. Magnitude of potential reduction in CO2 emissions

due to newly delivered power plants:
806,000 tons per year(*6)
2. In-house CO2 emissions:
0 tons per year(*7)

from Scope 1 and Scope 2plants

systems

Progress (FY2023)

1. Magnitude of potential reduction in CO2 emissions●Supply of renewable energy and CO2-free●Reduction in support from policies, for example as a power

problem of climate change using the result of the review of the FIT program
technology and expertise we have

●Supply of fuel conversion (biomass, RPF,KPIat the Takuma Head Office and Harima Factoryand branches.

●FY2030

Zero effective CO2 emissions

for unutilized biomass

from Scope 1 and Scope 2●Development of technology for reusing

at all Takuma domestic worksites

incineration ash(Head Office, branch companies, branches,●Development of technology for recoveringfactories, and construction sites)

and using CO2【Risks】●Loss of trust in the event Takuma fails to provide●Supply of products and services that satisfy●Shrinking budgets of local governments●Improvements in the quality of Takuma’ssafe, high-quality products and servicesStrengthening relationships oftrust with customers andcommunities

1. Pursuing customer satisfaction

2. Ensuring the stable, continuous

operation of plants and equipment
3. Recycling local resources andcreating new value for communities

We will help resolve issues facing
customers and communities andstrengthen relationships of trust byproviding safe, high-quality products
and services and undertaking

initiatives that address local resource
recycling.

【Opportunities】●Growth in demand for biomass power generation
as a type of energy that can be produced andconsumed locally●Growth in expectations toward the creation of newvalue for communities, for example through disasterprevention facilities and energy centers●Additional growth in the use of private-sector
entities to provide government services【Risks】●Opportunity loss due to lag in accommodating newtechnologies such as Artificial Intelligence (AI) and theWe will facilitate the supply ofPursuing partnerships andinnovation

1. Utilizing digital technologies (AI, IoT, highvalue- added products androbots, etc.)

services by introducing digital

3. Pursuing innovation

partnerships with outside

2. Developing open partnerships

echnologies and expanding
companies.

SInternet of Things (IoT)【Opportunities】●Growth in demand for efficiency-boosting andlabor-saving technologies in plant operation (remotemonitoring and operation, data analysis, maximizationof amount of power sold, etc.)●Creation of revolutionary technologies and services
as well as new business opportunities through theexpansion of partnerships

customers

operation and O&M businesses●Increasing sophistication of maintenanceservice●Initiatives addressing the Regional Circularand Ecological Sphere (Regional CES),

regional use, and decentralized power
supplies●Initiatives such as PPP that address

additional use of private-sector entities●Increases in the added value of facilities
and plants●Strengthening of competitiveness in EPC
operations, operation management, andPromoting activities of humanresources

1. Securing, and training humanresources

2. Promoting diversity

3. Improving employee satisfaction

Putting in place an environment inwhich all employees can make themost of their abilities is essential inorder to facilitate the company’s
growth and strengthen its
competitiveness.

employees with specialized skills

Highest rating 60% or more(*8)●Customer satisfaction:●Number of main career track and management●Number of main career track and management

At least 35 (cumulative total for FY2021 to FY2025)

29 (cumulative total for FY2021 to FY2023)

maintenance service●Pursuit of open innovation●Pursuit of new businesses that contributeto the enhancement of existing businesses
and services●Development of technologies andproducts that are sought by society andcustomers【Risks】●Reduction in competitiveness due to a shortage of●Customer satisfaction:●Hiring of new graduates and mid-career

positions filled by women:●Utilization of parenting support programs:●Employee engagement:●Employee engagement:

At least 25% (average for FY2021 to FY2025)

Highest rating 50% or more(*9)●Discontinuity in the passing down of skills as highly ●Development of optimal human resources ●Number of fatal accidents:
programs in response to social changes
experienced employees reach retirement age and0
●Development of an effective training【Opportunities】●Active hiring of diverse human resources●Strengthening of competitiveness through humanresources development and management that
promotes diversity

positions filled by women:●Utilization of parenting support programs:

employees

leave the workforce

Newly established from FY2024

44% (average for FY2021 to FY2023)

Newly established from FY2024●Number of fatal accidents:
0 (FY2023 Actual)systemand development of career support
programs【Risks】●Reduction in productivity and social trust due to
1. Ensuring occupational safety andEnsuring safety and healthhealth

2. Managing employee health

3. Creating a comfortable working
environment

Safeguarding the physical andmental health of workers andbuilding a comfortable working

environment helps create a stablefoundation for Takuma’s value
creation activities.

problems involving the safety and health ofemployees and affiliates (loss of order opportunities●Reduction in the occurrence ofaccidents, etc.)●Prevention of health problems anddue to the occurrence of serious occupational【Opportunities】●Improvement in productivity and strengthening ofoccupational accidents

rectification of overwork●Implementation of workstyle reforms

competitiveness through improvements in theworkplace labor environment【Risks】●Sustained improvement through practices
such as evaluations of the effectiveness of●Reduction in business sustainability due to a lack of the Board of Directors●Continued conduct of appropriate internal
appropriate decision-making

Strengthening corporate governance ●Cessation of business due to violations ofG

Strengthening corporate
governance

1. Strengthening corporate governance
2. Strengthening risk management
3. Ensuring compliance

auditsboth supports companies’ stablecompetition or environmental law or regulations on●Additional improvement in thelosses and other adverse events byin social trust●Even more thorough project risk

【Opportunities】●Implementation and ongoinggrowth and helps avoid and reducemaking possible the organizational
management of risk.

conduct such as corruption, and associated reduction effectiveness of risk management activities●Improvement in the ability to create value alongwith avoidance and reduction of risk as a result ofstrengthened corporate governancemanagement●Number of serious compliance violations:0reassessment of Business Continuity Planning(BCP)●Ongoing implementation of complianceeducation(*1) Biomass power plants and Energy from Waste plants delivered from FY2021 to FY2030(*2) The Scope 1 target includes offsets using environmental value such as J-credits.
(*3) The Scope 2 target is calculated using post-adjustment emission factors.
(*4) FY2030 targets including group companies remain under consideration.
(*5) CO2 emissions from procured products and use of Takuma products by customers (Scope 3) also remain under consideration.
(*6) Calculated based on the amount of electricity (renewable energy) that can be generated at plants delivered in FY2021-2023 (four waste treatment, two sewage sludge, and fifteen biomass plants) from the month following delivery.
(*7) Purchase J-credits equivalent to Scope 1 emissions in FY2023, achieving the FY2023 target of zero actual CO2 emissions for Scope 1 and Scope 2 at the Takuma Head Office and Harima Factory.
(*8) The percentage of respondents giving the highest rating for questions (on a 4-point scale) about customer service and overall product quality in the Customer Satisfaction Survey.
(*9) The percentage of respondents giving the highest rating for each question (on a 5-point scale) on job satisfaction and pride in the company in the Employee Attitude Survey.

●Number of serious compliance violations:
0 (FY2023 Actual)