Kumagai Gumi Group’s ESG/SDGs Strategy

The Kumagai Gumi Group pursues both solutions to social issues (social value) and the expansion of business profits (economic value) through our business activities from a sustainability perspective. Kumagai Gumi has formulated its ESG Initiative Direction in order to contribute to the resolution of social issues through our business activities and to increase our corporate value through sustainable growth.

ESG Initiative Direction

  1. Kumagai Gumi Group has identified key issues (materiality) to be resolved from the prospective of Environment, Social, and Governance, and will pursue sustainable business activities
  2. 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.
  3. Through its business activities, Kumagai Gumi aims to build relationships of trust with its stakeholders and to increase its corporate value.

Sustainability Promotion System

Sustainability Promotion Committee

Objective Examines Kumagai Gumi’s overall sustainability promotion measures
Number of meetings held Held as appropriate (held five times in FY2024, planned to be held 6 times in FY2025)
Chairperson General Manager of the Management Strategy Division
Members General Manager of the Civil Engineering Management Division, General Manager of the Building Management Division, General Manager of the Administration Division, General Manager of the Safety Division, General Manager of the Technical Research & Development Division, General Manager of International Division, General Manager of the New Business Development Division, General Manager of the Architectural Design Management Division, and division members designated by the Chairperson
Secretariat Management Strategy Division Sustainability Promotion Department
Description of activities Examination of policies and systems to promote the sustainability field; identification, revision, and progress monitoring of materiality, participation in and reporting on external evaluations and initiatives; consideration of integrated report editorial policies; exploration of strategies to promote social contribution activities, etc.
Information disclosure Homepage, Integrated Report, etc.
Position of the Sustainability Promotion Committee

Sustainability Promotion Initiatives

2010 June Kumagai Gumi became the first company in the construction industry to receive Eco First Company certification
2017 November The Kumagai Gumi Group indicated in the Medium-term Management Plan that it will strengthen its management by incorporating ESG perspectives
2019 April ESG Initiative Direction formulated
2020 August KPIs were established based on materiality and monitoring conducted
2021 May The Kumagai Gumi Group indicated in the Medium-term Management Plan its management policies including measures such as establishing concrete CO2 emission reduction targets and strengthening the development of the renewable energy business
August The Company created an “ESG/SDGs Matrix” and disclosed the relationship between our business activities and the SDGs
2022 April Promoted the President’s Instruction: “Practice daily operations from the ESG/SDG perspective
Sustainability Promotion Committee established
October Human Rights Policy Expert Subcommittee established
2023 January Human Rights Policy established/Process of human rights due diligence created
Support for TCFD recommendations
April Organizational change: Sustainability Promotion Group becomes Sustainability Promotion Department
Added “My SDGs” to Employee Evaluation Sheet
Established “Work Style Reform Action Plan 2023”
May Signed the United Nations Global Compact
2024 April Reorganized the Sustainability Promotion Department and established the Green Innovation Promotion Group
Safety, Quality and Environment Division reorganized as the Safety Division/Quality and Environment Management Office newly established
Established “Work Style Reform Action Plan 2024”
May Revised Key Issues (Materiality) for ESG Initiative
July Support for TNFD recommendations
August Expressed support for “My Declaration of Human Rights” and “My Declaration of Human Rights-Sexual Minorities Edition” (Ministry of Justice)
September Expressed support for IKUKYU.PJT, a project to promote childcare leave for men
October Raised funds through a sustainability-linked loan from Hokuriku Bank
Updated Declaration of Partnership Building
2025 January Abolished “Safety and Health, Quality and Environment Policy” and established “Safety and Health Policy,” “Quality Policy,” and “Environment Policy”
April Established “Work Style Reform Action Plan 2025”
May Entered a corporate partnership with WWF Japan

Instilling ESG and SDGs Perspectives into Daily Operations

The Kumagai Gumi Group implements daily operations from the perspective of ESG/SDGs. We are aiming to create a corporate culture that instills the habit for each employee to always be aware of what social issues they can contribute to solving as they go about their work.

Points indicated by stakeholders

Main Opinions Measures
Overall impression regarding sustainability initiatives
  • Valuing a long-term perspective
  • Created a sustainability promotion roadmap and reported on sustainability to the Board of Directors
  • Becoming a company that attracts investment and support even 100 years into the future
  • Promotion of internal understanding of revised materiality
    Provision of explanations through “Sustainability Channel” (for in-house video content) and newsletter
  • Established “Work Style Reform Action Plan 2025”
    Awareness toward operational efficiency and workload balancing is increasing
  • Yuuei Kyoryoku Kai and Kumagai Gumi Human Rights Opinion Exchange Committee meetings are held on human rights
Need to further communicate the appeal of Kumagai Gumi
  • Sharing of information externally through the “Future Town Development Forum”
  • Strengthening of engagement with stakeholders, especially shareholders and investors
Effectiveness of the Board of Directors
  • Included ESG evaluation criteria for provision of compensation for Directors
  • Transitioned to a company with an Audit and Supervisory Committee
Challenges associated with Accelerating peripheral businesses
  • Promotion of circular agriculture by combining hydroponics and aquaculture
  • Started construction of a production base for “black bark pellets” (decarbonized biomass fuel)
Employees-related issues
  • Communication of concrete goals to improve employee engagement through corporate directives
Sustainability