Environment

Kumagai Gumi Environmental Policy

As a provider of construction services that society demands, Kumagai Gumi is committed not only to complying with environmental laws and related regulations, but also to addressing global-scale environmental challenges and realizing a sustainable society. Through its business activities, the company strives to maximize the use of its technical capabilities to reduce environmental impact and create a better environment.
To ensure continuous improvement, Kumagai Gumi sets clear environmental objectives and targets, and conducts regular evaluations and reviews of its initiatives.

Guiding Principles

  1. Aim to achieve carbon neutrality by 2050
  2. Promote the transition to a circular economy
  3. Contribute to achieving Nature Positive
  4. Strive to develop, improve, and popularize environmentally friendly technologies
  5. Operate a Quality and Environment Management System and continuously improve it
  6. Actively participate in environmental conservation activities in communities
  7. Actively disclose environmental information and strive to solve environmental issue through cooperation with stakeholders

January 2025

Fundamental Concepts of Environmental Management

The Kumagai Gumi Group has identified “Response to Climate Change Risks” and “Promotion of environmentally friendly businesses” as key issues (materiality). To advance these priorities, the Group has set specific targets for initiatives such as achieving carbon neutrality, realizing zero emissions, and advancing nature-positive outcomes, and is actively working toward their fulfillment.

Kumagai Gumi's environmental activity system diagram and explanation of Eco First certification

Formulation of Environmental Policy

To strengthen its environmental initiatives, Kumagai Gumi revised its former “Safety, Health, Quality, and Environment Policy” into a dedicated “Environmental Policy” in 2025, establishing a set of guiding principles for action. Beyond strict compliance with environmental laws and related regulations, the company is committed to addressing global-scale environmental challenges by reducing environmental impact and creating a better environment through its business activities.

Governance

Kumagai Gumi deliberates on key management issues, including issues related to the climate, at its “Management committee” (Chairperson: President). The “Sustainability Promotion Committee” (Committee Chair: General Manager of the Management Strategy Division) has also been established as a supporting body of the Management committee.
The “Sustainability Promotion Committee” comprises members such as General Managers of Business Divisions, and is an organization that examines overall measures contributing to long-term growth of the company and development of a sustainable society from the perspective of ESG and SDGs. It coordinates with the Management committee and other committees in order to tackle environmental challenges, including issues related to the climate, and to examine measures aimed at achieving environmental targets.
The Board of Directors (Chairperson: President) receives reports on climate change related matters obtained with the above process, and oversees the state of initiatives.

A flowchart showing the control and execution of sustainability promotion. In the 'Control' section at the top, the Board of Directors sends 'Control/Guidance' to the 'Management Committee' in the 'Execution' section, which in turn sends 'Reports' back up. Below this, the 'Sustainability Promotion Committee' and 'Division and Branch Departments' are linked through two-way communication arrows.

Risk Management

Kumagai Gumi is working toward identifying and reducing risks that affect business activities as well as maximizing opportunities, by isolating and assessing the risks and opportunities of important issues on an individual basis, and making decisions at the Management committee and Board of Directors. Each business unit extracts and evaluates risks and opportunities included in its work processes to examine required measures, and apply them to the annual plan. The state of these initiatives is monitored every quarter, with the results reported to the Management committee. Reports and discussions on environmental risks and opportunities, including those related to climate change, are made by the “Sustainability Promotion Committee,” which are in turn reported to and deliberated by the Management committee and Board of Directors.

Overview of Environmental Initiatives

In February 2021, the Kumagai Gumi Group joined the RE100 initiative, working to shift 100% of the electricity used in our business activities to renewable energy. We have obtained SBT certification as we work to achieve the targets for our medium- to long-term greenhouse gas emissions goals.

A comprehensive diagram titled 'Environmental Issues and Initiative Targets.' Centered on the development of environmentally friendly technologies, it details targets for Carbon Neutrality (42% CO2 reduction by 2030), Circular Economy (mixed waste discharge rate 2.0% or less), and Nature Positive (2 or more sites for decarbonization fuel development), covering fiscal years 2024-2026 as well as long-term goals for 2030 and 2050.
  1. CO2 emissions
    Scope 1: Direct emissions from combustion of fuel (use of heavy machinery, vehicles, etc.)
    Scope 2: Indirect emissions from the use of electricity, etc. supplied by other companies
    Scope 3: Indirect emissions from upstream/downstream areas of business activities other than Scope 1 and 2 (materials procurement, operation of buildings, disposal, etc.)
  2. Construction mixed waste discharge rate (%) = amount of mixed waste generated (t) (including the amount from demolition works, materials buried underground, and construction sludge) / total construction waste generated (t) (including the amount from demolition work, materials buried underground, and construction sludge)
  3. Electronic manifest use rate (%) = number of electronic manifests / (number of electronic manifests + number of paper manifests)

FY2024 Performance

Business Activities and Environmental Impact Kumagai Gumi Non-consolidated (Japan) Results for FY2024

A diagram of material balance. Under INPUT, it lists material and energy consumption such as 98,000t of steel rods, 26,000t of cement, and 36,004,000 kWh of electric power for construction. Through business activities (Civil Engineering sales: 101.8 billion yen, Building Construction sales: 267.2 billion yen), the OUTPUT section details environmental impacts like 70,000 t-CO2 emissions and 16,000t of net waste discharge.

Greenhouse gases other than CO2 (CH4, N2O, HFC, PFC, SF6) are not emitted through our business activities

Carbon Neutral

Carbon Neutral

Having positioned carbon neutrality initiatives as a key management issue, the Kumagai Gumi is actively working to achieve its CO2 reduction targets and strengthen its renewable energy businesses.

Carbon Neutral
Promoting a Circular Economy

Promoting a Circular Economy

Kumagai Gumi promotes the creation of a "circular economy" through its business activities.

Promoting a Circular Economy
Coexist with nature

Coexist with nature

Kumagai Gumi is actively working toward biodiversity protection with the goal of creating a society in harmony with nature.。

Coexist with nature