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Taisei Group’s Materiality
Review of Materiality
In May 2024, alongside the formulation of the [TAISEI VISION 2030] Achievement Plan and the Medium- to Long-Term Business Plan (2024-2026), we positioned materiality as a high-level concept within our Medium-to Long-Term Business Plan, establishing it as a fundamental principle guiding our business activities. We also revised our materiality in light of the latest sustainability issues, identifying the following five key issues.
To achieve our goals, we are integrating key measures and KPIs related to these material issues into the [TAISEI VISION 2030] Achievement Plan and other initiatives.
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Materiality Identification Process
The process for identifying and reviewing material issues is as follows:
- 1. A working group consisting of the Corporate Planning Devision, the Sustainability Division, and external experts extracted 482 sustainability issues from SDGs, SASB industry-specific materiality maps, and other sources, then consolidated similar issues into 123 items.
- 2. The working group considered two aspects: the “Impact of the environment and society on corporate activities and corporate finance (risks and opportunities)” and the “Impact of corporate activities on the environment and society (stakeholders) (risks and opportunities),” narrowing down the issues to 15 that are most significant for the Group.
- 3. Based on management interviews, questionnaires to the Taisei Group employees, questionnaires to our core subcontractors, and opinions of the Corporate Culture Reform Working Group*, five material issues were identified that encompass all relevant aspects.
- 4. Approved by the Board after prior deliberation by the Management Committee and thorough discussion.
*Corporate Culture Reform Working Group (WG): Working Group members selected through In-house Recruitment fundamentally reviewed value in a job, work styles, atmosphere and custom of the organization and launched the Corporate Culture Reform which build the foundation of "newly born Taisei Group."
We have incorporated each identified material issue into the medium- and long-term business strategies of the [TAISEI VISION 2030] Achievement Plan and the key measures of the Medium-term Business Plan. KPIs have been established in the Medium term Business Plan, and we are working to integrate them with our business strategies. We will continue to review our materiality as necessary, considering changes in the external environment and the opinions and expectations of our stakeholders.
Identification of Evaluation Topics
In the process of reviewing materiality, the working group extracted and consolidated 123 sustainability issues. These issues were quantitatively evaluated and examined based on the importance of “risks and opportunities for the Company” and “risks and opportunities for society.” As a result, 15 key topics that could be significant for the Group were identified.
Identification of Materiality
Based on the results of interviews with management and questionnaires to the Taisei Group employees regarding the 15 selected issues, we aimed to define materiality that encompasses all of these issues. To enhance stakeholders’ understanding of the issues we recognize and the actions we are taking, we limited the number of materiality topics to five and focused on clear and concise descriptions.
Materiality and KPIs
The five identified material issues have been integrated into the key measures of the [TAISEI VISION 2030] Achievement Plan and the Medium-Term Business Plan (2024-2026). We have established the following KPIs and targets for each material issue and are actively working to address sustainability challenges.
The Corporate Planning Division and the Sustainability Division monitor the progress of these initiatives and regularly report to the Sustainability Promotion Committee. If there is a risk of not achieving the KPI, the causes are analyzed, and corrective actions are taken to ensure achievement. These conditions are reviewed in advance by the Management Committee and the Sustainability Committee and regularly monitored by the Board.
Previous Materiality
Review of Previous KPI: Worksite Implementation Rate of an 8-Day Site Closure per 4 Weeks
The Worksite implementation rate of the 8-day site closure per 4 weeks was a KPI in the Medium-Term Business Plan (2021-2023), with a target of 100% implementation in FY2023. However, we fell significantly short of this target, particularly at construction worksites. Correcting long working hours and securing holidays are important issues not only for the Group but also for the entire construction industry, including the supply chain, and the implementation of the 8-day site closure per 4 weeks is the most effective measure. We will continue to aim for 100% implementation, collaborating with our supply chain to improve productivity and implement efficient construction, including mechanization and automation. We will also collaborate with industry groups to gain clients understanding and work towards achieving this goal.