Materiality of Toyo Construction Group

Materiality of Toyo Construction Group
Materiality of Toyo Construction Group

Materiality of Toyo Construction Group

We have identified the issues to be resolved through our business activities as the materiality of the Toyo Construction Group.
In this identification, the Company adopted the idea of “double materiality”, which is prevalent in the EU that is leading the international movement for sustainability. The “double materiality” is a method to find the important issues through consideration of both the impact of the Company on society & environment and the impact of sustainability issues on finance. The Company will work on the derived materiality through our main business and contribute to the sustainable society.

Process to identify the materiality

Multiple analysis

  1. ① Listing the relationship of the Company with the society & environment by a value-chain analysis
  2. ② Recognizing the issues & expectations of major stakeholders by a stakeholder analysis
  3. ③ Identifying the sustainability issues through a long-term plan by an analysis of management and business
  4. ④ Identifying the sustainability issues from long-term societal and environmental changes such as climate change by a megatrend analysis

Grasping the whole image of the sustainability issues related to the Company through ①~④

Impact evaluation

  1. ① Impact evaluation of the Company on society & environment
  2. ② Impact evaluation of the sustainability issues on finance

Prioritization

Based on the evaluation in STEP2, positioning the issues with a high degree of influence as the materiality

Setting the goals and KPI / Linkage with SDGs

Setting mid-term goals for each materiality, and determining the KPI, the management method and the concrete target values. Also, linking the immediate SDGs with the targets.

※ The materiality will be reviewed and updated from time to time according to the changes in society and business.

Materiality

Materiality Sub-subject Related SDGs
Social problem solving through business activities E Realization of carbon-neutral society Promotion of construction of offshore wind power generation facilities 71113
Engagement in ZEB/ZEH
Reduction of greenhouse gas emitted from business activities
Lowering environmental-load Reduction of the load caused by business activities to the natural ecosystem 7911121415
Contribution to the circular economy by reducing construction waste
Promotion of ReReC®
S Provision of high-quality construction works that meet customer needs Improvement of technological capability and proposal capability to meet customer needs 91112
Securing quality of construction work
Contribution to disaster-prevention and disaster-mitigation Promotion of the R&D and technological development to contribute to the disaster-prevention, disaster-mitigation, and disaster-relief, etc. 1113
Materiality Sub-subject Related SDGs
Enhancement of business foundation G Continued enhancement of governance system Enhancement of governance
Thorough compliance 16
Promoting efforts of supply chains for ESG sdgs_mark
Enhancement of information security 916
S Realization of attractive construction industry Promotion of occupational safety and health 38
Promotion of developing precious human resources & securing the rising generation 4810
Improvement of workplace environment 368
Thorough respect of human rights and promotion of diversity Promotion of diversity & inclusion 45810
Improvement of understanding & prevention of infringement of human rights 5810
Realization of sustainable society by CSR activities sdgs_mark

KPI

Realization of carbon-neutral society

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Promotion of construction of offshore wind power generation facilities Installed capacity of offshore wind power facilities involved with construction 1,500NW or more
(FY 2030 (cumulative), recording on construction year)
Engagement in ZEB/ZEH Order receipt of ZEB / ZEH-M building 2 or more (Number of proposals: 8 or more) 2(Number of proposals 4) ○(×)
Reduction of greenhouse gas emitted from business activities Reduction rate of greenhouse gas
SCOPE1・2
(Reduction rate from FY 2013, primary unit as of construction)
SCOPE3 (Category 11)
(Reduction rate of CO₂ emission from operation of design & construction building)
SCOPE1・2 / Reduction of 40%
Reduction of 45% or more (FY 2030)
SCOPE3 (Category11) / 50%
65% or more (FY 2030)
(Aggregating)

Lowering environmental-load

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Reduction of the load caused by business activities to the natural ecosystem Number of biodiversity-friendly proposals & design 7 or more (Aggregating)
Number of theses publicized on R&D contributing to lowering environmental-load of biodiversity and natural ecosystem 3 5
Number of constructions contributing to biodiversity 10 or more (Aggregating)
Number of theses publicized on R&D on carbon neutrality and blue carbon 3 6
Number of oil spill accidents 0 0
Number of claims due to noise or vibration 0 0
Contribution to the circular economy by reducing construction waste Recycling rate of construction waste 98% or more (Aggregating)
Promotion of ReReC® Number of ReReC® proposals for saving energy 2 4
Order receipt of ReReC® 7 bil. yen 4.6 bil.yen ×

Provision of high-quality construction works that meet customer needs

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Improvement of technological capability and proposal capability to meet customer needs Number of patent applications 15 15
Number of R&D theses publicized 18 or more 76
Securing quality of construction work Number of non-conformity and claims 0 4 ×
Average mark of the year for construction performance rating
(Port works ordered by MLIT)
80 or more (Aggregating)
Number of letters of appreciation and certificates of commendation on quality
(private work)
10 or more 9

Contribution to disaster-prevention and disaster-mitigation

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Promotion of the R&D and technological development to contribute to the disaster-prevention, disaster-mitigation, and disaster-relief, etc. Number of R&D theses publicized on promotion of the R&D and technological development to contribute to the disaster-prevention, disaster-mitigation, and disaster-relief, etc. 10 or more 10

Continued enhancement of governance system

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Continued enhancement of governance system Number of meetings held by Director Nomination & Compensation Committee 4 or more 4
Number of effectiveness evaluation of the board of directors 1 1
Thorough compliance Number of serious violation of law 0 0
Attendance rate of compliance training (of total number of persons required to attend) 100% 100%
Attendance rate of e-learning on compliance 100% 99%
Promoting efforts of supply chains for ESG Establishment of CSR procurement guidelines not enacted ×
Enhancement of information security Number of serious information security incidents 0 0

Realization of attractive construction industry

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Promotion of occupational safety and health Number of fatal accidents 0 0
Frequency rate 0.5 or less 0.35(As of May 31*)
Attendance rate of education to improve staff’s ability 100% 100%
Attendance rate of e-learning on occupational safety 100% 98%
Promotion of developing precious human resources & securing the rising generation Retention rate of new graduates within 3 years 85% or more for 3-year average 79%
Number of newly qualified employees
Doctorate 1 or more 0 ×
Professional Engineer, Concrete Engineer, Supervisor of Operation and Maintenance of Offshore & Marine Structure Increase of 10% from FY 2019 (330 in FY 2019 365 in FY 2022) 327 (Compared to FY 2019△0.9%) ×
First-class registered architect 3 4
First-class architectural construction management 20 or more 4 ×
Number of introduction of ICT/DX tools contributing to productivity improvement 5 9
Registration rate of skilled worker of Construction Career Up System 100% 60% ×
Improvement of workplace environment Implementation rate of the 8-day off per 4 weeks Civil engineering site: 70% 63%
Architecture site: 40% 3% ×
All sites: no case for 5-day off per 4 weeks or less 40% ×
Overtime work hours(all employees including supervisor) 50 hours or less per month / 600 hours or less per year 34 hours per month / 410 hours per year
Annual vacation days taken by staff at site 120 days 120 days
Number of installation of comfortable toilet at domestic site (civil engineering) A total oA total of 84 units at 59 sites

* Provisional figures

Thorough respect of human rights and promotion of diversity

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Promotion of diversity & inclusion Number of hired fresh female graduates for major career path 20% or more of hired fresh graduates 11% ×
Increase rate of women in major career path (from FY 2020) 250% (FY 2030) 118%
Increase rate of female managers (from FY 2020) 500% (FY 2030) 133%
Employment rate of the handicapped / Ratio of post-retirement re-employment Mandatory employment rate (2.3%) or more 2.49%
Ratio of post-retirement re-employment 88%
Number of male employees who took childcare leave 25% 34%
Improvement of understanding & prevention of infringement of human rights Attendance rate of harassment training (of total number of persons required to attend) 100% 100%
Establishment of policy on human rights Established as of 1 April 2023.

Realization of sustainable society by CSR activities

Sub-subject KPI Target for FY 2022 FY2022 results Rating
○:100% or more
△:100% not yet met to 80%
×:80% or less
Realization of sustainable society by CSR activities Establishment of the scholarship system in Kenya and Philippines not implemented ×
Provision of comfortable toilet overseas not implemented ×
Number of times of participation in Eelgrass field development project, etc. 13
Number of beach cleaning activities 38 (285 participants in total)
Number of posting of handicapped person artwork 4 sites and 6 works
Amount of contribution to various groups Future of Children Support Fund (vending machine + matching contribution) The Blue Feather campaign 318,274 yen