ESG Initiatives
ESG Management
The construction industry in which we have worked for many years is also a job that supports the social foundation, and the ideal for which we aim is a company that contributes to society through that work. The Sustainable Development Goals (SDGs) adopted by the United Nations indicate the worldwide priority issues and ideal nature with a target of the year 2030. We believe that Kumagai Gumi can also contribute to their achievement through our business activities.
Based on this philosophy, Kumagai Gumi formulated the "ESG Initiatives" based on the Kumagai Gumi Group Vision, aiming to contribute to the resolution of social issues through business activities and to increase corporate value through sustainable growth.
ESG Initiatives
- Kumagai Gumi Group has identified material issues to be resolved from the prospective of Environment, Social, and Governance, and will pursue sustainable business activities.
- The company will create new value by leveraging the group's technologies, experience and expertise. We engage in business activities that contribute to the resolution of social issues represented by the SDGs.
- Through its business activities, Kumagai Gumi aims to build relationships of trust with its stakeholders and to increase its corporate value.
ESG Initiative Direction Key issues (Materiality)＆Specific issue
Environment
| Environment | Key Issues (Materiality) | Specific Issues | Related SDGs |
|---|---|---|---|
| Response to climate change risks | 1.Accomplishment of carbon neutrality 2.Further increase renewable energy business |
|
|
| Promote Environmentally Friendly Businesses |
3.Achievement of zero emissions
4. Boost wooden construction Business 5.Development of environmentally considerate technologies6.Achievement of nature positive |
E: Environmental indicators and targets
| Business initiatives | KPI | Targets By the end of mid term management plan | |
|---|---|---|---|
| 1. | Actions to reduce of Co2 emissions | ScCO2 emissions (Scope 1+2, Scope 3) reduction rate (compared with FY2019) |
Scope1+2: Reduction of 43% or more Scope3 : Reduction of 25% or more (Target year FY2029) |
| 2. | Enhance of renewable energy business | Number of initiatives in the renewable energy business | Domestic 10 Overseas 4 |
| 3. | Activities to reduce mixed waste discharge | Total mixed waste discharge rate | 2.0% or less |
| 4. | Medium-to large-scale wooden structure business initiative, expanding orders | Number of orders (domestic) / Number of investment projects (overseas) | Domestic 3 Overseas 3 |
| 5. | Strengthening R&D for carbon neutrality | Number of technology development initiatives (new projects begun) | 6 or more |
| Initiatives for environmentally considerate architecture (ZEB, etc.) | Number of environmental proposals | 6 or more | |
| 6. | Business related to ecosystem restoration | Decarbonized biomass fuel development | 2 or more |
Social
| Social | Key Issues (Materiality) | Specific Issues | Related SDGs |
|---|---|---|---|
| Creating the well-being workplace For all employees |
1.Human capital management 2.Handing down skills and technologies3.Promotion of DX 4.Achievement of work-life balance 5.Promotion of diversity and inclusion 6.Securing skilled workers in the construction industry 7.Creation an environment of wellness 8.Occupational health and safety |
|
|
| Achievement of sustainable communities |
9.Ensure quality and integrity manufacturing 10.Attractive communities development 11.Development of resilient social infrastructure 12.Initiatives to solve social issues 13.Initiatives for emergencies such as natural disasters |
S: Social indicators and targets
| Business initiatives | KPI | Targets By the end of mid term management plan | |
|---|---|---|---|
| 1. | Increasing employee engagement | Engagement rating | BB |
| 2. | Support for acquiring national qualifications | Rate of acquisition of First-Class engineering works | (civil engineering)90% or more |
| (building construction) 1% above per year |
|||
| Rate of acquisition of First-Class Architect qualifications | 1% above per year | ||
| 3. | Standardization of ICT to improve on-site management efficiency | Rate of new on-site implementation | 100% each FY |
| Renovation of core systems | Rate of progress of system development | 100% | |
| 4. | Balance work and private life | Encouraging the use of paid time off; | 8 days off in a 4-week(on-site) each FY |
| Efforts to efficiency and standardization operations | The number of work overtime. | 30 hours or less each FY | |
| 5. | Action plan for supporting women's engagement at work place. | Rate of new female managers; | 7% or more each FY |
| Rate of men taking maternity leave | 70% or more each FY | ||
| 6. | Opening on-site to the public | Holding a on-site tour | 100 or more each FY |
| 7. | Management employees health | Secondary health checkup participation rate | 100% |
| 8. | Improvement of safety management standards | Frequency rate | 0.5 or less |
| 9. | Quality and Environment Management System operation and improvement | Serious quality accidents during construction | O cases each FY |
| 10. | Expansion of real estate business | The number of income-producing real estate business participation projects | 3 or more (domestic) 1 or more (overseas) |
| Initiatives for urban redevelopment | The number of projects | 6 or more | |
| 11. | Solving social issue in Asian countries | The number of orders for infrastructure development projects | 2 or more |
| Resirient infrastructure projects | The number of projects | 20 or more | |
| 12. | Development of technologies that lead to resolution of social issues | The number of projects | 6 or more |
| Creation of new business | The number of projects | 2 or more | |
| Social contributions Project | The number of projects with employee participation | Increase numbers of participants | |
| 13. | Technologies for improved resilience, performance | The number of projects | 2 or more |
Governance
| Governance | Key Issues (Materiality) | Specific Issues | Related SDGs |
|---|---|---|---|
| Enhancing of corporate governance |
1.Strengthening compliance 2.Strengthening of risk management3.Improvement of the effectiveness of the Board of Directors 4.Respect for human rights |
|
|
| Proactive Relationships with Multi-stakeholders |
5.Strengthening CS 6.Strengthening of supply chain management 7.Strengthening information disclosure 8.Active dialogue with investors |
G: Governance indicators and targets
| Business initiatives | KPI | Targets By the end of mid term management plan | |
|---|---|---|---|
| 1. | Establishment of internal and external systems to prevent legal violations | The amount of serious legal violations | O cases each FY |
| 2. | Strengthening crisis management response capabilities | Safety confirmation system response rate | 100% each FY |
| 3. | Evaluate and improve the effectiveness of the Board of Directors | Evaluations by internal and outside experts (compared to previous FY) | Improved evaluation |
| 4. | Initiatives to prevent and mitigate human rights risks | Conduct human rights due diligence | Expansion of target companies |
| 5. | Promotion of initiatives | Customer satisfaction | 100% each FY |
| 6. | Compliance with Procurement Policy and Guidelines | Number of deals | O cases |
| 7. | Strengthening of information communication capabilities | Reputation of ESG | Improved reputation |
| 8. | Proactive dialogue with institutional investors, etc. | The number of participants in meetings and financial results presentations | 10% increase from the previous year |
ESG/SDGs Matrix
The ESG/SDGs matrix visualizes areas in which Kumagai Gumi helps solve social issues through its business activities and shows the relationships between our ESG-based business activities and 169 SDG targets. The ESG/SDGs matrix has been effectively used as a first step in developing innovations for solving further problems and as a reference list for long-term risk management. It also serves as a tool for dialogue with stakeholders from ESG/SDG perspectives.
Supervision: CSR/SDGs Consultant Mr. Hidemitsu Sasaya, Professor, Platform for Arts and Science, Chiba University of Commerce
- The key issue, Formation of environmentally considerate business, is intended to strengthen our initiatives to achieve carbon neutrality.
- Lists the items of 169 SDG targets that have major relationships with Kumagai Gumi’s businesses.
- The content of the ESG/SDG matrix applies only to Kumagai Gumi Co., Ltd.
Revision of Key issues（Materiality）
In May 2024, we specified Key issues again considering recent social trends. In the same time, we revised Specific issues that are risks or opportunities with a medium to long-term perspective in mind.
Reason of revision
- Changes in the external environment Our group's business has been affected, such as Intensification natural disasters, the impact of the COVID-19 pandemic, certain regions are concerned about political and military tensions, such as Russia's attacks on Ukraine.
- demand from society We conducted dialogues to gather input from stakeholders such as investors, customers, and employees.
Processes of revision
In order to respond to the demands of society, we held stakeholder dialogues.
Step1 Analysis of construction industry
We gathered information, and recognized material issues from competent ministries and agencies and related organizations.
- Current situation of construction industry workers
Improvements in worker treatment, workstyle reforms, and productivity enhancements must be promoted in an integrated manner.
- Soaring material prices
To ensure that prices for construction materials are passed on appropriately across the supply chain, it is necessary to improve the environment related to construction work, including relationships between the contractor and client.
- Improvement of working conditions
It is necessary to secure a sustainable business environment.
- Promotion of work style reform
Step2 Signified our stakeholders
We visualized the value chain and clarified stakeholders.
Step3 Listed up our sustainability issues
We listed up our sustainability issues from SDGs, Global risks report and issues that we were aware of.
-
Issues that we were aware of
Long term vision
Securities report - 169 targets SDGs
- Grobal risks report from The World Economic Forum
- Major overseas and domestic news in the last four year
Step4 Assessment of sustainability issues impacts
Our employees conducted dialogue each other about importance of issues, and assessed its impact.
We extracted opinion from Knowledge experts, CS hearing, investors.
Step5 Specified Key issues (materiality) and Specific issues
We discussed about Key issues and Specific issues at the Sustainability promotion committee, and specified its.
Finally, these were approved by the management committee and board of directors.
