corporate report 2013 data book€¦ · consulting, and csr issues and objectives were extracted...

CORPORATE REP ORT

DATA BOOK

2013

Contents

02 Communication Tools03 Our Basic Concept of CSR

Major Themes and Items of CSR Activities and Their Relationships with KPIs for FY 2012

07 Environmental DataThe Environment

21 Social DataConsumer IssuesCommunity Involvement and DevelopmentHuman Rights and Labor PracticesLabor Practices

31 Governance DataOrganizational GovernanceFair Business Practice

37 KPIs (Key Performance Indicators)TAISEI KPIsGroup Company KPIs

45 Financial DataConsolidated Balance SheetsConsolidated Statements of IncomeConsolidated Statements of Comprehensive IncomeConsolidated Statements of Changes in Net AssetsConsolidated Statements of Cash Flows

53 Corporate Data Corporate Profi le / Board of Directors, Corporate Auditors and Executive Offi cersTAISEI Corporation Organization ChartOverseas NetworkExternal Awards / External Evaluations

58 Third Party Opinion

Editorial PolicyThis report is designed in order to build understanding among stakeholders of TAISEI corporate activities, which are conducted in line with the TAISEI Group ideal, and the Group action guidelines. The report is composed primarily of TAISEI data and information content.

Organizations CoveredTAISEI Corporation and main Group companies

Reporting PeriodFY 2012 (from April 1, 2012 to March 31, 2013)(Some content from other fi scal years is also included.)

Reference Guidelines

▲

Ministry of the Environment, “Environmental Reporting Guidelines (FY 2007 Version)”

▲

ISO 26000 (Guidance on Social Responsibility)

Issued October 2013

A Note About Forward-Looking StatementsOpinions, outlooks, and other forward-looking statements in this report are based on information available to us at the time of writing.Please understand, therefore, that changes in various factors may cause actual target fi gures and results to differ from these projections.

1 TAISEI CORPORATE REPORT 2013 DATA BOOK

Communication Tools

TAISEI CORPORATE REPORT 2013

TAISEI CORPORATE REPORT 2013 DATA BOOK

TAISEI ANNUAL REPORT 2013

TAISEI CSR Websitehttp://www.taisei.co.jp/english/csr/index.htmlTAISEI Group fi nancial information is published in the annual security report, and non-fi nancial information is published on the CSR website. On the CSR website, information is presented in individual e-books, and is also published via links to information about our CSR activities in general that have been disclosed.

Directed mainly to overseas investors, the Annual Report contains fi nancial information together with information on main CSR activities aimed at resolving social issues, the latest technologies, and overseas construction achievements.

The Data Book provides information on the status of TAISEI Group CSR activities. It contains primary fi nancial information together with non-fi nancial information such as the issues, objectives, and current status of CSR activities established with reference to ISO 26000, the status of environmental management activities (the TAISEI Agenda), and main KPIs.

The Corporate Report introduces main CSR initiatives of the TAISEI Group aimed at resolving social issues in special reports. Also introduced are the advanced technologies that support those initiatives and construction achievements.

TAISEI CSR Website Content

Our Basic Concept of CSRCorporate activities of the TAISEI Group aimed at sustainable growth of society are reported here.

The EnvironmentBasic conceptual approaches and measures relating to preservation of the environment are presented here.

Consumer IssuesMaterial about assuring quality and improving customer satisfaction as well as research and technological development aimed at resolving social issues are presented here.

Community Involvement and DevelopmentVarious initiatives that contribute to local communities are presented here.

Labor PracticesBasic conceptual approaches and measures relating to safe construction and services are presented here.

Human Rights and Labor PracticesBasic conceptual approaches and measures relating to the assurance of a work environment that is pleasant and rewarding for everyone are presented here.

Organizational GovernanceInformation disclosure on organizational governance, which is the foundation for CSR management, is introduced here.

Fair Business PracticesBasic conceptual approaches and measures relating to the promotion of compliance are presented here.

CORPORATE REP ORT

2013

CORPORATE REP ORT

DATA BOOK

2013CORPORATE REP ORT

DATA BOOK

2013

ANNUAL REP ORT

2013

2TAISEI CORPORATE REPORT 2013 DATA BOOK

A slogan that concisely expresses the “Group Ideal,” the “TAISEI Spirit,” and the “Group Action Guidelines.”

• Promote environmental management activities

• Quality control and customer satisfaction improvement

• Contributions to local communities

• Respect for human rights• Creating a pleasant work environment• Support for employees’ career development

• Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment

• Supply Chain Management• Promoting compliance• Protection management and use of

intellectual property• Information security measures

• Corporate governance and internal controls

• Risk management• Information disclosure and dialogue

with stakeholders

TAISEI Spirit

TAISEI Group Ideal

TAISEI Group IdealTo create a vibrant environment for all members of society• Continuing Objectives to be Pursued by the TAISEI Group (Goals)

Mid-Term Business Plan• Basic Policy1. Fulfi llment of social responsibilities imposed on the construction industry2. Establishment of a business structure for the creation of high-added valueBusiness issues• Construction business: Strengthening of the core business• Development/improvement of social infrastructure:

Contribution to post-earthquake reconstruction• Overseas business: Establishment of an earnings structure• Strengthening of initiatives and expansion of business fi elds to create high

added value• Development/improvement of robust business foundations

Group Action Guidelines• The “basic principles” for action by the TAISEI organization and the “standards

for action and judgment to be strictly observed and positively acted on by TAISEI Group members at all levels”

TAISEI Spirit

• Conceptual approaches valued by all TAISEI Group members for the pursuit and realization of the Group ideal

Commitment to Openness

Creation of Value

Evolution of TAISEI Sprit Traditions

Ove

rall

Prin

cip

les

of

Co

nd

uct

Overall Principles

of Conduct

Action Guidelines for TAISEI

Personnel and the TAISEI Group as a

Whole

Action Guidelines for TAISEI

Personnel and the TAISEI Group as a

Whole

Overall Management Perspective

Mid-Term Business Plan (FY 2012-2014)

Mid-Term Business Plan (FY 2012-2014)

Commitment to Openness

1. Cultivating an open corporate culture2. Securing a pleasant working environment3. Respect for fundamental human rights and diversity

Creation of Value

Evolution of traditions

4. Creating a vibrant environment for all members of society

5. Striving to create value6. Pursuing customer satisfaction7. Ensuring and improving safety and quality

8. Respect for traditions9. Promoting partnerships with subcontractors and

suppliers10. Promoting environmental conservation and

creation11. Communication with local communities12. Conduct in the international community13. Appropriate disclosure of information14. Fulfi lling social responsibilities

1. The Environment

2. Consumer issues

3. Community involvement and development

7. Organization

6. Fair operationg practices

4. Human rights and Labour practises

5. Labour practises

The seven core subjects of ISO26000

Main Issues and Objectives

The 14 points in the Group Action Guidelines are organized along the 7 core subjects of the ISO 26000 standard*

Our Basic Concept of CSR

Promote CSR with Shared Group Ideal and ValuesThe TAISEI Group has sought to realize the Group Ideal, “To create a vibrant environment for all members of society,” by having all employees share the TAISEI Spirit and by implementing our Overall Management Perspective (TAISEI VISION 2020, Mid-Term Business Plan) and Overall Principles of Conduct (Group Action Guidelines) when pursuing our business activities.

* ISO 26000: International guidance on social responsibility for all kinds of organizations, including companies


Message from an Expert

The objective of CSR for the TAISEI Group is to realize the Group Ideal and is based on the Group Action Guidelines and Mid-Term Business Plan. The 7 core subjects of ISO 26000 were referenced when establishing CSR issues and KPIs previously as well, but in fiscal 2012, an original checksheet based on ISO 26000 was used to analyze activities carried out until then more deeply, after which discussions were held with main departments. This approach deserves high praise as an initiative that will raise the level of the Group’s CSR activities so that they are better suited to the global field within the industry-specific practices of a contracting business.

The results of the analysis demonstrated that one issue is promoting CSR throughout the supply chain. In upcoming years, I hope that TAISEI can expand this initiative beyond it to other Group companies and other partners in the supply chain as well.

* KPI: Key Performance Indicator

Steps Towards Implementation

STEP 1 Interview employees to investigate current conditions

STEP 2 Identify challenges for the agenda

STEP 3 Implementing measures for issues within the PDCA cycle

Development of CSR Activities Utilizing ISO 26000The TAISEI Group takes the perspective of our stakeholders (interested parties) when considering CSR issues and objectives and establishing challenges and concrete measures. In fiscal 2012, we established key issues to focus on as KPIs* after using our own unique checksheet based on ISO 26000 to organize our initiatives and exchanging opinions with external CSR experts.

■STEP 1: Interview employees to investigate current conditions• HoldingadepartmentCSRmanagers’meeting

TAISEI’s CSR Promotion Section held a briefing for the 40 CSR managers in each division and the 10 in our main Group companies to inform them of our intention to investigate the status of CSR activities. The employees at the briefing increased their consciousness towards ISO 26000 and confirmed and shared the process for pursing CSR challenges in the future.

• TakinginventoryofCSRactivitiesbasedonISO26000In order to survey the status of CSR activities, the CSR Promotion Section drafted an original checksheet based on the 36 issues established under 7 core subjects in the ISO 26000 standard. The checksheets were distributed in advance to the CSR managers from each division and from the main Group companies who were later interviewed regarding their responses to take an inventory of the current state of CSR activities.

■STEP 2: Identify challenges for the agenda• ExtractingissuesandobjectivesandsettingKPIs

The status of the CSR activities in the inventory were then evaluated with the help of the CSR experts at Craig Consulting, and CSR issues and objectives were extracted for each division. These were then used to establish KPIs.

• AddressingissuesandpromotingmeasuresAs one issue identified was supply chain management (CSR procurement), a CSR Procurement Council was established as an internal working group and a procurement policy was formulated. In addition, a workshop was held for the CSR managers from each TAISEI division and from the main TAISEI Group companies.

■STEP 3: Implementing measures for issues within the PDCA cycle• PDCACycle

Starting with the TAISEI Group Plan comprised of Overall Principles of Conduct and the Overall Management Perspective (Plan), main initiative items were undertaken (Do). The CSR Promotion Section worked with Craig Consulting to set key issues as part of the TAISEI Agenda and/or as KPIs and to assess the status of those initiatives (Check). Yearly improvements (Act) will be made to achieve sustained growth of the enterprise. The following pages detail the status of initiatives in fiscal 2012 (pages 5-6).

Sustained growth of the enterprise

PlanOverall Management Perspective• Mid-Term Business Plan and Business

IssuesOverall Principles of Conduct• Group Action Guidelines

(Basic conceptual approach to CSR activities)

Do• Main Initiative Items

Act

Do

Plan

Check

Act• Identify points of improvement to

address issues and objectives of CSR activities and set issues and objectives for the next fiscal year

Check• TAISEI Agenda 2012 performance

figures and degree of achievement• Main initiative items and main KPI

performance figures and degree of achievement

Mr. Mitsuo Ogawa, President of Craig Consulting


The Seven Core Subjects of ISO26000

<Overall Principles of Conduct> Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole, Individual Policies, Guidelines

<Overall Management Perspective> Mid-Term Business Plan and Business Issues

1. The Environment

The

envi

ronm

ent

• Prevention of pollution • Sustainable resource use • Climate change mitigation and adaptation

• Protection of the environment, biodiversity and restoration of natural habitats

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Environmental Policies● Declaration of TAISEI on Biodiversity Preservation● TAISEI Agenda 2012 Performance● Eco First Company

● Strengthening of initiatives and expansion of business fields to create high added value● Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction

(1) Present ideas and technologies that differentiate us in terms of the environment

(2) Develop and provide environmental technology

● Promote environmental management activities (achieve TAISEI Agenda 2012)

● Contribute to realizing a low-carbon society● Promote energy conservation● Promote 3R (reduce, reuse, recycle) activities● Promote green procurement● Proper control of construction waste● Provide environmentally friendly technology● Conduct comprehensive environmental activities

● CO2 emissions reduction rate during building use (u)● CO2 emissions reduction rate during construction (u)● Rate of decrease of electric power use (offices) (¯)● Number of proposals given to customers to improve energy conservation in their facilities (¯)● Rate of recycling of construction waste (ê)● Rate of green procurement (u)● Rate of electronic manifest penetration (ê)● Amount of media coverage of environmental technologies / PJ using these technologies (u)● Rate of participation in environment-related training (¯)

P7-20(CSR Activities)P37, P43, P44(KPIs)P9(TAISEI Agenda)

2. Consumer issues

Soci

ety

• Fair marketing, factual and unbiased information and fair contractual practice

• Protecting consumers’ health and safety

• Sustainable consumption • Consumer service, support, and complaint and dispute resolution

• Consumer data protection and privacy • Access to essential services • Education and awareness

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Quality Policy● Policy on the Protection of Personal Information● Standards of Conduct for the Use of Social Media

● Strengthening of initiatives and expansion of business fields to create high added value

(1) Expand TAISEI QUALITY activities(2) Develop and provide technologies, such

as base isolation and vibration control, that help resolve the problems facing society

● Quality control and customer satisfaction improvement

● Establishment and observance of quality management standards and procedures● Development and provision of technologies for resolving social issues

● Customer satisfaction surveys (ê)● Number of patent applications filed and patents granted (u)● Amount of media coverage of development of technologies / Projects in which technologies were applied (u)

P21-24(CSR Activities)P38, p44(KPIs)


• Community involvement • Education and culture • Employment creation and skills • Technology development and access • Wealth and income creation • Health • Social investment

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ● Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction● Development/improvement of robust business foundations

Continuous implementation of community-based activities with local residents

● Contributions to local communities ● Promoting activities contributing to society● Expansion of employees’ volunteer activities (Support activities in disaster-affected areas, etc.)

● Number of activities contributing to society and the environment (u)● Number of employees who participated in volunteer activities (u)

P25-P26(CSR Activities)P39(KPIs)

4. Human rights and Labor practises

• Due diligence • Human rights risk situations • Avoidance of complicity • Resolving grievances • Discrimination and vulnerable groups • Civil and political rights • Economic, social and cultural rights • Fundamental principles and rights at work

• Employment and employment relationships

• Conditions of work and social protection

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ● Development/improvement of robust business foundations

(1) Strengthen human resources and promote diversity

(2) Create a system that maximizes employee potential

● Respect for human rights● Creating a pleasant work environment● Support for employees’ career development

● Human rights awareness raising activities● Promotion of diversity● Support for work-life balance● Promotion of personnel training

● Rate of attendance in human rights training (u)● Number of participants in education and training for female leaders / Number of female managers / Number of female officers / Physically challenged employment rate / Number of re-employed individuals (u)● Number of employees taking childcare leave (u)● Rate of paid leave utilization (u)● Number of former employees registered with the Job-Return system (u)● Training hours per employee (u)● Number of trainees at overseas construction sites (u)● Number of trainees at overseas research institutes, etc. (u)

P27-29(CSR Activities)P39, P40(KPIs)

5. Labor practises

• Social dialogue • Health and safety at work • Human development and training in the workplace

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Health and Safety Policy

● Development/improvement of robust business foundations

Establishment of safety-first posture

● Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment

● Continuous practice and improvement of TAISEI OHSMS

● Number of fatal accidents and frequency rate (u)● Accident frequency rate (¯)● Number of occupational accidents (¯)

P30(CSR Activities)P41, P43, P44(KPIs)

6. Fair operating practices

Gov

erna

nce

• Anti-corruption • Responsible political involvement • Fair competition • Promoting social responsibility in the value chain

• Respect for property rights

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Policy on Intellectual Property● Procurement Policy


Strengthening of compliance and ICT governance

● Promoting compliance● Supply Chain Management● Protection management and use of intellectual property● Information security measures

● Ongoing implementation of compliance training● Promoting CSR procurement● Intellectual property risk management initiatives● Protection and management of information● Increasing awareness of information security

● Rate of participation in compliance training (Group training) (ê)● Number of branches conducting compliance training for subcontractors (u)

(to be set in FY2013)● Number of training sessions on intellectual property rights (u)● Number of major information security breaches (u)● Number of company-wide education programs regarding information security (u)

P31-P34(CSR Activities)P41, P44(KPIs)

7. Organization

• Organizational governance ● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Basic Poliy for the Development of Systems Necessary to Ensure the Properness of Operations● Observing the Charter of Corporate Behavior of the Nippon Keidanren● Risk Management Policy● Action Guidelines concerning Countermeasures to New Strains of Influenza● Policy on Business Continuity in Times of Disaster● Information Disclosure Policy


Enhancement of internal controls throughout the TAISEI Group

● Corporate governance and internal controls● Risk management● Information disclosure and dialogue with stakeholders

● Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies● BCP initiatives● Promoting dialogue with stakeholders

● Rate of TAISEI Group Ideal e-learning implementation (u)● Rate of participation in major disaster response training (ê)● Number of dialogues, etc. (u)


Major Themes and Items of CSR ActivitiesandTheirRelationshipswithKPIsforFY2012

Plan


TAISEI Group Main Issues and Objectives

TAISEI Group Initiative Items

TAISEI Group Main KPIs* PagesField

1. The Environment

The

envi

ronm

ent

• Prevention of pollution • Sustainable resource use • Climate change mitigation and adaptation

• Protection of the environment, biodiversity and restoration of natural habitats

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Environmental Policies● Declaration of TAISEI on Biodiversity Preservation● TAISEI Agenda 2012 Performance● Eco First Company

● Strengthening of initiatives and expansion of business fields to create high added value● Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction




● Contribute to realizing a low-carbon society● Promote energy conservation● Promote 3R (reduce, reuse, recycle) activities● Promote green procurement● Proper control of construction waste● Provide environmentally friendly technology● Conduct comprehensive environmental activities

● CO2 emissions reduction rate during building use (u)● CO2 emissions reduction rate during construction (u)● Rate of decrease of electric power use (offices) (¯)● Number of proposals given to customers to improve energy conservation in their facilities (¯)● Rate of recycling of construction waste (ê)● Rate of green procurement (u)● Rate of electronic manifest penetration (ê)● Amount of media coverage of environmental technologies / PJ using these technologies (u)● Rate of participation in environment-related training (¯)

P7-20(CSR Activities)P37, P43, P44(KPIs)P9(TAISEI Agenda)

2. Consumer issues

Soci

ety

• Fair marketing, factual and unbiased information and fair contractual practice

• Protecting consumers’ health and safety

• Sustainable consumption • Consumer service, support, and complaint and dispute resolution

• Consumer data protection and privacy • Access to essential services • Education and awareness

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Quality Policy● Policy on the Protection of Personal Information● Standards of Conduct for the Use of Social Media

● Strengthening of initiatives and expansion of business fields to create high added value

(1) Expand TAISEI QUALITY activities(2) Develop and provide technologies, such

as base isolation and vibration control, that help resolve the problems facing society

● Quality control and customer satisfaction improvement

● Establishment and observance of quality management standards and procedures● Development and provision of technologies for resolving social issues

● Customer satisfaction surveys (ê)● Number of patent applications filed and patents granted (u)● Amount of media coverage of development of technologies / Projects in which technologies were applied (u)

P21-24(CSR Activities)P38, p44(KPIs)


• Community involvement • Education and culture • Employment creation and skills • Technology development and access • Wealth and income creation • Health • Social investment

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ● Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction● Development/improvement of robust business foundations


● Contributions to local communities ● Promoting activities contributing to society● Expansion of employees’ volunteer activities (Support activities in disaster-affected areas, etc.)

● Number of activities contributing to society and the environment (u)● Number of employees who participated in volunteer activities (u)

P25-P26(CSR Activities)P39(KPIs)

4. Human rights and Labor practises

• Due diligence • Human rights risk situations • Avoidance of complicity • Resolving grievances • Discrimination and vulnerable groups • Civil and political rights • Economic, social and cultural rights • Fundamental principles and rights at work

• Employment and employment relationships

• Conditions of work and social protection

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole ● Development/improvement of robust business foundations

(1) Strengthen human resources and promote diversity

(2) Create a system that maximizes employee potential

● Respect for human rights● Creating a pleasant work environment● Support for employees’ career development

● Human rights awareness raising activities● Promotion of diversity● Support for work-life balance● Promotion of personnel training

● Rate of attendance in human rights training (u)● Number of participants in education and training for female leaders / Number of female managers / Number of female officers / Physically challenged employment rate / Number of re-employed individuals (u)● Number of employees taking childcare leave (u)● Rate of paid leave utilization (u)● Number of former employees registered with the Job-Return system (u)● Training hours per employee (u)● Number of trainees at overseas construction sites (u)● Number of trainees at overseas research institutes, etc. (u)

P27-29(CSR Activities)P39, P40(KPIs)

5. Labor practises

• Social dialogue • Health and safety at work • Human development and training in the workplace

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Health and Safety Policy


Establishment of safety-first posture

● Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment


● Number of fatal accidents and frequency rate (u)● Accident frequency rate (¯)● Number of occupational accidents (¯)

P30(CSR Activities)P41, P43, P44(KPIs)

6. Fair operating practices

Gov

erna

nce

• Anti-corruption • Responsible political involvement • Fair competition • Promoting social responsibility in the value chain

• Respect for property rights

● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Policy on Intellectual Property● Procurement Policy


Strengthening of compliance and ICT governance

● Promoting compliance● Supply Chain Management● Protection management and use of intellectual property● Information security measures

● Ongoing implementation of compliance training● Promoting CSR procurement● Intellectual property risk management initiatives● Protection and management of information● Increasing awareness of information security

● Rate of participation in compliance training (Group training) (ê)● Number of branches conducting compliance training for subcontractors (u)

(to be set in FY2013)● Number of training sessions on intellectual property rights (u)● Number of major information security breaches (u)● Number of company-wide education programs regarding information security (u)


7. Organization

• Organizational governance ● Action Guidelines for TAISEI Personnel and the TAISEI Group as a Whole● Basic Poliy for the Development of Systems Necessary to Ensure the Properness of Operations● Observing the Charter of Corporate Behavior of the Nippon Keidanren● Risk Management Policy● Action Guidelines concerning Countermeasures to New Strains of Influenza● Policy on Business Continuity in Times of Disaster● Information Disclosure Policy



● Corporate governance and internal controls● Risk management● Information disclosure and dialogue with stakeholders

● Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies● BCP initiatives● Promoting dialogue with stakeholders

● Rate of TAISEI Group Ideal e-learning implementation (u)● Rate of participation in major disaster response training (ê)● Number of dialogues, etc. (u)


Do Check Act

* KPI(s): Key Performance Indicator(s) u : TAISEI KPIs, ¯ : TAISEI Group of companies KPIs, ê : TAISEI and TAISEI Group of companies KPIs

Degree of Achievement Improvement


The Environment

Environmental Data

(Overall Principles of Conduct)

Basic Conceptual Approaches

The TAISEI Group is formulating Environmental Policies aimed at the formation of an environmentally friendly society. We will determine objectives and measures for taking action, strive for “preservation and creation of the environment” and promote “advanced environmental business.”

(Overall Management Perspective)

Mid-Term Business Plan and Business Issues

• Strengthening of initiatives and expansion of business fields to create high added value

• Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction



Main Issues and Objectives (FY 2012)

Main Initiative Items (FY 2012) Degree of

achievement ImprovementMain KPIs*(Key Performance Indicators)


● Contribute to realizing a low-carbon society

● CO2 emissions reduction rate during building use● CO2 emissions reduction rate during construction

See the TAISEI Agenda 2012 on P9

● Promote 3R (reduce, reuse, recycle) activities● Promote green procurement

● Rate of recycling of construction waste● Rate of green procurement

● Proper control of construction waste

● Rate of electronic manifest penetration

● Provide environmentally friendly technology

● Amount of media coverage of environmental technologies / PJ using these technologies

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fiscal 2012 improvements (Act) are described on page 37.

Plan Do ActCheck

Plan

EnvironmentalBusinessPromotionFrameworkThe TAISEI Group is working on a promotion framework for improvement of environmental technology that contributes to “achievement of a low-carbon society,” “preservation of biodiversity,” and “formation of a recycling society.”

Plan

Environmental PoliciesWith the group ideal of “To create a vibrant environment for all members of society,” TAISEI, through its construction activities, strives for the development of quality social infrastructure and the improvement of the living environment in harmony with Nature.

As environmental problems worldwide increase, TAISEI’s business activities are necessarily a part of the burden on the environment.

With these environmental management principles as a guide, and working for an environmentally sensitive society, TAISEI and its group companies strive for “Environmental Protection and Innovation,” and promote “Pioneering Environmental Projects” in all corporate activities.

Action Guidelines

1. We shall prevent environmental pollution through compliance with environmental laws, regulations, and agreements and, through the effective application of our Environmental Management System (EMS), expand and continually improve environmental conservation activities.

2. We shall develop environmental technologies that contribute to the realization of a low-carbon society, the conservation of biological diversity, and the formation of a recycling-based society, and use these technologies to benefit our clients and resolve environmental problems.

3. During both planning and design phases, we shall give proper consideration to global and regional environments, and propose to our clients the creation of facilities that harmoniously coexist with the natural environment, conserve energy and resources throughout their life-cycle, and reduce CO2 emissions.

4. During construction, we shall reduce CO2 emissions, give proper consideration to biological diversity, and promote the efficient use of resources, thereby reducing the burden on the environment. In cooperation with specialty contractors and business partners, we shall promote the 3R of construction byproducts (Reduce, Reuse, Recycle), along with other environmental conservation activities.

5. We shall communicate effectively with local communities, and as a worthy corporate citizen, contribute to the conservation of regional environments.

6. We shall proactively cooperate with other nations, NGO’s and NPO’s in creating and protecting the environment.


President

Environment Committee

Central Safety Committee*1

General ManagerHead Office

Branch ManagerBranch

Subgroup & Working groups

Corporate EMS SecretariatSpecific EnvironmentalRepresentative (CCMO)*2

Environmental Manager

Head Office EMS Secretariat

Branch EMS Secretariat

Environmental Manager

Environment Committee Subgroup

Taisei Group Environmental Action Meeting

Internal EnvironmentalAudit Staff

Head Office Environment Committee

Branch EnvironmentCommittee

Declaration of TAISEI on Biodiversity PreservationBased on the TAISEI Group Ideal “To create a vibrant environment for all members of society,” and in order to remain an organization that learns from and cares for nature, TAISEI proclaims the following action policy.

1. Analyze the risks the Company’s construction activities pose to biological resources and the ecosystem, utilize environmental management systems, and minimize the impact of those risks to the maximum extent possible.

2. Develop environmental technologies to preserve and re-create biodiversity, and utilize those technologies with clients to sustain ecological services.

3. Perform urban development and facilities design that coexists in harmony with nature, and aggressively submit proposals that serve to preserve and increase biodiversity.

4. Cooperate with business associates, including specialty sub-contractors, in pursuing biodiversity preservation.5. Promote communication with local communities, cooperate with domestic/overseas NPO/NGO’s, engage in proactive

biodiversity conservation activities, and disclose the accomplishments of those activities.

*1CentralSafetyCommitteeFrom fiscal 2012, environmental accidents are subjects for investigation and deliberation of the Central Safety Committee.

*2 CCMOHaving appointed the General Manager of the Environment Division as our Chief Carbon Management Officer (CCMO) in FY 2011, TAISEI continues to promote the Carbon Management Working Group (CMWG) across all its divisions with a view to reducing company-wide carbon emissions. CMWG prepares plans and makes strategic decisions regarding risks and business opportunities related to carbon emissions.

TAISEI Environmental Management Organization Chart


Objective Targets for Fiscal 2013 Promoting1 Div./Dept. 8

1. Contribute to the recovery & reconstruction of devastated areas by the Great East Japan Earthquake

Manage disaster waste Dispose properly and promote1 reuse for reconstruction

Building Construction, Civil Engineering, Environment

Manage radioactive contaminated materials

Decontaminate devastated areas quickly and not proliferate radioactive materials

Building Construction, Civil Engineering, Marketing & Sales, Nuclear, Environment, Technology Center

Consideration for local citizens and ensure safety of workers & employees

Building Construction, Civil Engineering, Safety, Administration

Address environmental risks

Improve environmental skills of workers & employees and execute patrol to prevent environmental accidents

Building Construction, Civil Engineering, Safety, Environment

Address recovery Contribute to reconstruct & develop environmentally friendly town and infrastructures

Building Construction, Civil Engineering, Marketing & Sales, Urban Development, Building Design, Technology Center, Environment

2. Address global warming

Contribution to low carbon society

Reduce CO2 emissions at the operation stage of buildings by 30% compared with fiscal 1990 level Building Design, Environment

Reduce CO2 emissions at the construction stage by 40% compared with fiscal 1990 level

Building Construction, Civil Engineering, Environment

Promote1 reduction inenergy consumption

Promote1 reduction in energy consumption rate per floor area at offices (Reduce consumption rate by 10% compared with fiscal 2010 level)

Administration, Environment

3. Effectively Utilize resources

Promote1 3R activities

Increase construction waste recycling rate2 (Construction waste recycling rate: 95%)

Building Construction, Civil Engineering, Safety

Reduce mixed waste weight rate3 of new building construction projects (Less than 30%) Building Construction, Safety

Reduce construction waste processing amount4 per value of finished work (Less than 350t/hundred million yen)

Civil Engineering, Safety

Promote1 green procurement

Promote1 the adoption of green procurement for major items following the green procurement guideline (Green procurement index: 30%)

Building Construction, Civil Engineering, Building Design, Procurement, Environment

4. Conserve biodiversity and activities for environmental contribution

Promote1 biodiversity conservation and creation

Enforce and execute activities & trainings to preserve biodiversity (Over 6 activities & trainings)

Corporate planning Office, Environment, Urban Development

Develop and evolve biodiversity technologies in both design and construction stages

Building Construction, Civil Engineering, Building Design, Environment, Technology Center, Urban Development,

Environment-related contribution to local community

Promote1 environment-related contribution activities5

Building Construction, Civil Engineering, Administration, Environment

Promote Environmental Management Activities (Performance and Objectives)TAISEI’sEnvironmentalManagementTargetsforFiscal2013Regarding the recovery and reconstruction from the Great East Japan Earthquake as important, we have set the following environmental management targets for fiscal 2013 in line with our Charter of group action guideline, environmental policies, and medium-term management plan.

The data on P9-18 is rounded off and therefore may not tally with totals.

Environmental Data


1. The word “promote” is used here to mean the realization of specific targets set by the promoting divisions and/or departments2. Construction waste recycling rate (excluding sludge) = [(amount of waste - final disposal amount) / amount of waste] × 100 3. Mixed waste weight rate does not include the weight of concrete waste, asphalt waste, and sludge4. Construction waste includes sludge, but disaster waste5. Environment-related contribution activities include volunteers, local community activities at construction sites, and other related activities6. Electronic manifest penetration rate = (number of electronic manifests issued/number of manifests issued) × 1007. Contaminated soil includes radioactive contaminationThe targets above apply only to Japan.

Targetsbeyond2014(Forreferenceonly)

Objective Targets for Fiscal 2014

1. Reduce CO2 emissions at the operation stage of buildings

Reduce CO2 emissions at the operation stage of buildings by 40% by fiscal 2020 compared with fiscal 1990 level

2. Reduce CO2 emissions at the construction stage Reduce CO2 emissions at the construction stage by 50% by fiscal 2020 compared with fiscal 1990 level

3. Improve electronic manifest penetration rate Improve electronic manifest penetration rate up to over 80% by fiscal 2014

4. Promote eco-model projects 30 projects including overseas projects by 2014

5. Address environmental risks

Non occurrence of environmental accident

Improve knowledge of environmental laws and ensure prevention measures


Appropriate management of construction waste

Dispose construction waste properly and improve electronic manifest penetration rate6 (Rate: 80%)


Appropriate management of harmful and/or chemical substances

Ensure appropriate management and disposal of harmful and/or chemical substances such as sprayed asbestos, building materials containing asbestos, and equipment containing PCB

Building Construction, Civil Engineering, Safety, Administration, Urban Development

Appropriate management of contaminated soil

Ensure management and disposal of contaminated soil7 are both appropriate and thorough

Building Construction, Civil Engineering, Safety Urban Development, Environment

6. Research, develop, and propose environmental technologies

Provision of environmentally friendly technologies

Promote research, development, and application of technologies related to CO2 reduction and energy conservation (Over 20 media presentations)

Technology Center, Building Design, Environment, Engineering

Promote1 comprehensive proposals for environmentally friendly technologies (Over 50 proposals)

Building Design, Marketing & Sales, Environment, Engineering

Develop technologies related to radioactive material contamination and remote controlling of equipment

Nuclear, Technology Center, Environment

7. Promote1 excellent environmental activities in many fields

Promote1 eco-modelprojects Conduct more than 26 projects Building Construction, Civil Engineering,

Safety, Environment


(kg-CO2/million yen)

0

200

400

600

0

100

200

300274274

453

238

241241 230230

204 189

236236 252252

223

1990 2008 2009 2010 2011

200

272

2012 FY2013

206206

CO2 emissions (1000 t-CO2)

FY 2013 target 40% reduction in CO2 emissions

(compared to FY 1990)

¢¢¢ CO2 emissions� CO2 emissions intensity

0

30

60

30

15

0

45

0

30

60

65

47 34

25

40

25

60

3738

21

27.9 25.7

37

36.2

4741

23

37.543.6*

30.0

2008 2009 2010 2011 2012 FY2013

CO2 emissions (1000 t-CO2)

49

¢ Figure calculated from 1990 benchmark (1000 t-CO2)¢ Projected CO2 emissions (1000 t-CO2)� Projected CO2 reduction rate� Emissions by floor area (kg-CO2/year • m2)

Projected CO2 reduction rate (%)

FY 2013 target 30% reduction in projected CO2 emissions (compared to FY 1990)

Emissions by floor area (kg-CO2/year • m2)

Environmental Performance Index Computation StandardsAggregation period: April 1, 2012-March 31, 2013Subject organization: Taisei Corporation (Japan domestic only)Aggregation standards: Data is aggregated on the basis of in-house regulation for environmental information management and in accordance with the Act on the Rational Use of Energy,

Act on Promotion of Global Warming Countermeasures, Waste Disposal and Public Cleaning Act, Fluorocarbons Recovery and Destruction Act, GHG Protocol, etc.

Purpose Item Computation method

Mat

eria

l Flo

w-R

elat

ed

Classifi cation by business category Classifi ed under civil engineering business (worksite), construction business (worksite), offi ces (including development and other businesses)The scope of aggregation for offi ce data covers the TAISEI head offi ce, branches, and the Technology Center

CO2 emissionsScope classifi cation

Scope 1: CO2 emissions from burning of fossil fuelsScope 2: Indirect CO2 emissions from electric power use, steam use, and hot/cold water useScope 3: CO2 emissions from removal of construction waste from construction sites and from outgoing and returning

transport of soil generated by construction (offsite emissions).

CO2 emissionsCalculation methods

CO2 emissions coeffi cientsDiesel oil, fuel oil, and kerosene: Calculated using the fuel consumption data by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients in the Act on the Rational Use of Energy and the Act on Promotion of Global Warming CountermeasuresElectric power: Calculated using the 2011 user-end emissions coeffi cient (before refl ection of Kyoto credit) of 0.510 t-CO2 /MWh announced by the Federation of Electric Power Companies of Japan. Emissions for the previous fi scal year were also updated using this coeffi cient.City gas: Calculated using the standard calorifi c value from city gas providers and the emissions coeffi cient in the Act on Promotion of Global Warming Countermeasures.

NOx and SOx emissionsCalculation methods

Calculated NOx and SOx emissions from diesel oil, fuel oil, and keroseneCalculated in the past fi ve years, using the fuel consumption given by the Japan Construction Machinery and Construction Association minus the oil and fat content, with the emission coeffi cients published in “Revised LCA Index for Architectural Structures: A Tool for Assessing Measures Against Global Warming, Resource Consumption, and Waste Production” by the Architectural Institute of Japan.

<Civil engineering business, construction business>Calculation method for energy used, fossil fuel used (diesel oil, fuel oil, kerosene), electric power used, water used

Amounts used during two-month period of fi scal year 2012 sampled from 144 construction sites were aggregated and usage (intensity) per value of work performed in that two-month period was calculated. Annual emissions were calculated by multiplying the value of work for the year by this intensity. The calculations for civil engineering are performed by work category.

<Offi ces>Calculation method for energy used, fossil fuel used (diesel oil, fuel oil, kerosene), electric power used, city gas used, water used

Starting in the current fi scal year, the annual amount purchased and amount used are calculated on a monthly basis at each offi ce, for all offi ces.

<Civil engineering business, construction business>Calculation method for main building materials and construction materials purchased

Main building materials and construction materials purchased directly for TAISEI independent projects and for joint projects in which TAISEI is the representative.

<Civil engineering business, construction business>Calculation method for amount of chlorofl uorocarbons, halons recovered

Amount of chlorofl uorocarbons and halons recovered for disposal contracted by TAISEI

<Civil engineering business, construction business>Calculation method for amount of soil generated by construction and removed

Waste soil generated and removed from construction sites

<Civil engineering business, construction business>Calculation method for amount of construction waste removed

Construction by products, etc. (waste, valuable materials) generated by TAISEI independent projects and by joint projects in which TAISEI is the representative.

<Civil engineering business, construction business>Calculation method for amount of concrete forms and replacement forms used

Forms purchased directly for TAISEI independent projects and for joint projects in which TAISEI is the representative.

Glo

bal

War

min

g Pr

even

tion Projected CO2 emissions and reduction rate during

building useCalculated using energy-saving plans for each of 42 projects for architectural structures designed by TAISEI with total fl oor area of 2,000 m2 or more, a total of approx. 890,000 m2.

CO2 emissions and reduction rate during construction

Worksite CO2 emissions and rate of reduction in CO2 emissions compared to fi scal 1990

Reso

urce

Re

cycl

ing Results for use of green procurement items Portion introduced into design specifi cations calculated using Eco-Sheet CASBEE for architectural structures designed by

TAISEI

Recycling rate ((Amount generated – Amount for fi nal disposal) / Amount generated) × 100

Projected CO2 emissions and reduction rate at the operation stage of buildings

Measures to Address Global Warming Plan

This presents data on activities for environmental preservation and creation through construction projects.Items that involve independent assurance report (P20) are marked with a checkmark symbol.

Do

CO2 emissions during construction

Civil engineering Building construction Total

Value of work in current period (millions of yen) 199,572 768,009 967,581

CO2 quantity (1000 t-CO2) 103.0 96.8 199.8

CO2 emissions reduction rate (%) 55.1* 56.7* 55.9

Do

Environmental Data

* KPIs P37 * KPIs P37


Material Flow

INPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012

Total energy usage 109MJ 4.08 3.57 3.52 3.96 3.55

Worksites (building construction) 109MJ 1.60 1.54 1.40 1.71 1.56

Worksites (civil engineering) 109MJ 2.32 1.87 1.98 2.13 1.64

Offices 109MJ 0.17 0.16 0.15 0.12 0.35

Total for fossil fuels (diesel fuel, fuel oil, and kerosene) 1,000kℓ 68 61 48 62 55

Diesel fuel 1,000kℓ 67 60 47 61 53

Kerosene 1,000kℓ 1 1 1 1 0.9

Fuel oil 1,000kℓ 0.3 0.3 0.9

Total for electric power 106kWh 151 127 170 161 143

Worksites (building construction) 106kWh 57 56 55 50 58

Worksites (civil engineering) 106kWh 78 56 101 99 56

Offices 106kWh 16 15 14 12 29

City gas (offices) 1,000m3 115 108 117 85 150

Total for main building materials used 1,000t 7,043 5,549 5,958 6,742 6,676

Ready-mixed concrete 1,000t 6,021 4,627 5,082 5,440 5,200

Aggregate (gravel, crushed rock, etc.) 1,000t 288 189 248 461 870

Cement 1,000t 272 361 193 164 130

Steel 1,000t 408 335 393 647 440

Wood building materials 1,000t 33 24 20 26 30

Asphalt 1,000t 21 14 22 4 6

(Amount of which was green procurement)*1 1,000t 2,621 2,732 2,079 1,761 2,161

Total amount of concrete forms used 1,000m2 7,006 4,629 4,216 4,741 4,407

Tropical plywood forms 1,000m2 4,975 3,605 3,079 3,094 3,543

Substitute forms 1,000m2 2,031 1,024 1,137 1,647 864

Replacement forms as percentage % 29.0 22.1 27.0 34.7 19.6

Water 1,000m3 3,188 2,537 3,122 3,063 1,663

OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012

Total CO2 emissions 1,000t-CO2 246 210 195 228 216

Worksites (building construction) 1,000t-CO2 97 91 81 104 97

Worksites (civil engineering) 1,000t-CO2 141 113 108 119 103

Offices 1,000t-CO2 8 7 6 5 16

Total CO2 emissions 1,000t-CO2 246 210 195 228 216

Scope1 1,000t-CO2 156 139 108 134 118

Scope2 1,000t-CO2 62 52 70 67 73

Scope3 1,000t-CO2 27 20 17 26 25

NOx t 1,177 1,045 811 1,054 921

SOx t 175 160 123 158 143

Amount of chlorofluorocarbons and halons recovered t 11 6 4 5 3

Soil generated by construction works (offsite emissions) 1,000m3 1,669 1,118 1,757 1,717 2,753

Construction waste 1,000t 1,980 1,687 1,228 1,633 2,236

Recycled amount and intermediate treatment amount 1,000t 1,950 1,646 1,213 1,614 2,220

Direct final disposal amount 1,000t 30 41 15 19 17

(Amount of which was asbestos) 1,000t 11 8 5 4 6

■ CO2 emissions*2

(1,000 t-CO2)

0

100

200

300

141

97

156

62

272788

7

113

91

139

52

2020 6

108

81

108

70

1717

246210 195

2008 2009 2010 2011

5

119

104

134

67

2626

228

16

97

103 118

73

2525

216

FY2012

¢ Worksite (civil engineering) ¢ Worksite (building construction) ¢ Offices¢ Scope1 ¢ Scope2 ¢ Scope3

OUTPUT DATAINPUT DATA

■ Energy usage

(X109 MJ)

0

2

4

6

1.60

4.080.17 3.57

0.16

1.54

3.520.15

1.40

2008 2009 2010

3.963.550.12

0.351.71

1.56

2.321.87 1.98 2.13 1.64

2011 FY2012

¢ Worksite (civil engineering) ¢ Worksite (building construction) ¢ Offices

Environmental Impact of Business Activities

This presents data on activities for the purpose of environmental preservation and creation through construction business activities.Items that involve independent assurance report (P20) are marked with a checkmark symbol. Do

*1 Amount of green procurement items as component of main building materials used*2 Calculation of diesel oil for FY 2011 and previous fiscal years includes adjustment by subtraction of 20% for diesel oil equivalent of fats and oils


(1,000 t)Sale of valuable materials,

wide-area certification, on-site use, etc.109

Recycling facility1,173

Recycling197

Intermediatetreatmentamount

227

Amou

nt g

ener

ated

1,5

22

Cont

ract

ed d

ispos

al a

mou

nt1,

413

Direct final disposal amount 14

Resourcerecoveryamount1,281

Recycledamount1,479

Intermediatetreatment residue

30 Final disposalamount

43

Effective Use of Resources

■ Construction waste treatment breakdown (excluding sludge and portions of waste not originating in TAISEI)

■ Construction waste emissions

■ Green procurement item adoption results from Eco-Sheet CASBEE

Wasterecyclingrateimprovementandproperdisposal ■ Emissions and recycling rate by construction waste category Unit: 1,000 t

Construction waste Civil engineering

Building constructionTotal Recycling rate*

New construction Demolition SubtotalConcrete remnants 257 80 737 817 1,074 99.9%Asphalt and concrete remnants 64 27 24 51 116 99.9%Construction site sludge 309 385 11 396 705 —Mixed waste 12 42 6 48 59 75.4%Wood scrap 27 14 6 20 48 99.9%Metal scrap 2 76 38 114 116 100.0%Miscellaneous 35 55 29 84 119 79.2%Total 706 679 851 1,530 2,236 —

Construction-related itemsThermally insulated sashes and doors 26

Environmentally friendly thermal insulation 18

Ceramic tile 17

Recycled vinyl flooring 14

Permeable pavement (including water retaining pavement)

10

Recycled gypsum board 8

Recycled carpet tile 8

Sun control film 6

Particle board 5

Lumber and lumber products (laminated wood, plywood, laminated veneer lumber)

5

Paving blocks made with recycled material (burned, plain concrete (PC) products)

4

Primer coating (multilayer anti-corrosion) 4

Building greening (roof greening) 4

Building greening (wall greening) 4

Wood-based cement boards 3

Recycled hot asphalt mixture 3

Highly solar reflective waterproofing 3

Environmentally friendly flooring 2

Low-volatility organic solvent-type water-based coating for pavement marking

2

High solar reflective coating 1

Median blocks made of recycled plastic 1

Facility and equipment-related itemsAutomatic water faucets 49

Western-style toilet bowls (water-saving type) 45

High-efficiency fluorescent light fixtures 42

Automatic flushing devices with built-in urinals (water-saving type) 42

LED light fixtures 42

Electric heat-pump air-conditioning equipment (multi-unit type for large buildings)

40

High-efficiency transformers 29

Solar power systems 13

Stainless steel pipe 11

Environmentally friendly street lighting 9

Absorption chillers/heaters 7

Lead-free electrical wire and cable 6

Inert gas fire extinguishing equipment 5

High-efficiency gas water heaters 5

High-efficiency ventilation equipment 5

Recycled polyvinyl chloride tubing for drainage and ventilation 3

Cardboard ducts 3

High-efficiency pumps 3

Energy-saving electric toilet seats 3

EM (Eco-material) wires and cables 2

Garbage disposal units 2

Gas-engine heat-pump air-conditioners 2

Ice heat storage air conditioners 2

Solar heating systems 1

Structural itemsRecycled steel 31

Blast-furnace cement 9

High-strength concrete 9

Metal concrete form panels 7

Concrete frames 6

Ready-mixed concrete using blast-furnace cement 4

Recycled aggregate 4

Fly ash cement 3

Slag aggregate 2

Ready-mixed concrete using fly ash cement 1

Eco-cement 1

Fly ash 1

Forms mixed with recycled material 1

Stabilized soil recycled from construction sludge (liquefied stabilized soil)

1

Wall construction method using reduced-slurry soil cement columns in rows

1

Method for rebuilding the road surface 1

This presents data on activities for environmental preservation and creation through construction projects.Items that involve independent assurance report (P20) are marked with a checkmark symbol.

Plan

Do

Operating on the Basis of Green Procurement GuidelinesTAISEI has formulated Green Procurement Guidelines for the purpose of applying materials, equipment, and methods that have less environmental impact during the design, construction, and demolition of structures. Green procurement item categories are reviewed annually. TAISEI’s green procurement rate for fiscal 2012 was 30.6%*.

One item (energy-saving electric toilet seats) was added to the 76 items in fiscal 2011, making 77 items. In fiscal 2012, 61 of these items were adopted in 65 construction design projects, and the number of items adopted per project came to 9.2 items.

Meanwhile, the construction divisions have designated priority items, including ready-mixed concrete using blast-furnace cement, blast-furnace cement, recycled aggregate, slag aggregate, recycled steel (recycled reinforcing bars and steel frame), liquefied stabilized soil, high-efficiency fluorescent light fixtures, and environmentally-friendly thermal insulation. TAISEI is promoting introduction of these items to our construction sites.

Do

* Figures indicate the number of projects.

Environmental Data

←みえるように調整してます。

(1,000 t)

0

500

1,000

1,500

2,000

2,500

1,515(1,323)

435(168)

30(17)

1,980(1,509)

1,317(1,152)

329(109)

41(14)

1,687(1,275)

879(730)

334(89)

15(9)

1,228(828)

2008 2009 2010 2011

1,116(903)

1,554(1,281)

498(201)

666(227)

19(13)

17(14)1,633

(1,117)

2,236(1,522)

FY2012

¢ Resource recovery amount ¢ Intermediate treatment amount¢ Direct final disposal amountFigures in parentheses are amounts excluding sludge and portions of waste not originating in TAISEI.

* KPIs P37

* KPIs P37


Education, training, etc.32%

Laws, regulations, etc.55%

Worksite plans13%

Miscellaneous 4%

Waste Management and Public Cleansing Law 29%

Construction Material Recycling Act 6%

Local regulations 2%

Off-road Act 2%

Law for Promotion of Effective Utilization of Resources 5%

Industrial Safety and Health Act 3%

Water Pollution Control Act 2%

Ordinance on Prevention of Health Impairment due to

Asbestos 2%

Respond to Environmental Risks

Preservation of Biodiversity and Environmental Preservation Activities

■ Percentages of findings categories (FY2012)

■ Breakdown of complaints to construction sites (FY 2012)

Type % Content Response measures

Noise 43 ● Complaints about noise from construction work (such as work noise from demolition, use of heavy machinery and generators, and of form placement).

● Complaints about noise during pile driving.

● Provide explanations and information to people in the area concerning the schedule and details of the construction work, make every effort to use low-noise, low-vibration heavy equipment, and take noise reduction measures such as using sound-proof sheets.

● Prohibit thrown placement of forms.● Adjust working hours to reduce the amount of work in the daytime producing intense noise.

Vibration 14 ● Complaints about vibration during use of heavy machinery and pile driving.

● Explain to nearby residents what work is being done and obtain their consent. Also, take measures to reduce vibrations, such as switching to slightly smaller machines.

Traffic obstruction

6 ● Complaints about parking of construction vehicles.● Complaints about reduced visibility of intersections due to temporary enclosures.

● Request remediation by the vehicle management companies and provide traffic safety education.

● Change temporary enclosures to clear panels to increase visibility.

Dust 4 ● Complaints about dust from workyards.● Scattering of dust during work on existing connections.

● Perform water-spraying.● Clean up workyards and nearby streets.

Air pollution

4 ● Complaints about gas emissions from work vehicles. ● Change the positioning and parking locations of the vehicles to reduce the impact of gas emissions, and ensure thorough use of eco-driving, such as idling stop practice.

Odors 3 ● Complaints about burnt odors from asphalt waterproofing.● Complaints about paint odors and unusual odors from generators during repair work.

● Explain to nearby residents what work is being done and obtain their consent. Also, take measures to reduce foul odors, such as ventilation with a blower fan.

● Move generators and take measures, such as conducting work that produces foul odors during breaks.

Plan

PromoteeducationforunderstandingofTAISEIinvolvementinbiodiversityissuesConducted two biodiversity e-learning sessions for all employees with a response rate of over 90%.

Promote environmental contribution activitiesConducted activities that included helping create local green areas (Tokyo Greenship Action), helping create nest boxes for dormice, and Shinjuku cleanup activities (Zero Garbage Day), among others. Assisted Animal-pathway & Wildlife Association (a company) that was established to disseminate the results of animal pathway reseach.

The TAISEI 1 Ton Club was launched in 2010 as an activity to purchase Kyoto carbon credits (CO2 emissions credits) based on the goal of cutting CO2 emissions. The Club was held again in 2012 based on the goal of carbon dioxide absorption, with employees giving donations to support preservation of the Kamaishi forest and tree planting activities in Borneo. A total of 747 employees donated to Kamaishi forest preservation activities and 675 to Borneo tree planting activities.

Do

Do

Plan

Achieve zero environmental law violations byimprovingknowledgeofrelatedlawsOur worksite environmental patrols, which conduct in-house supervision regarding compliance with environmental laws and regulations at construction sites, conducted a total of 1,214 patrols at 695 construction sites throughout Japan. Patrol findings are shown in the graph. We took correction and prevention measures regarding the findings, and we are working continuously to make improvements.

Do

Improve electronic manifest penetration rateIn the interest of proper disposal of waste material, we are promoting the computerization of paper manifests to prevent mistaken entries and omissions from manifests by emitting business operators, collection and transport business operators, and disposal contractors. We achieved a penetration rate of 85.9%* (civil engineering 79.0%* and construction 88.9%*) in fiscal 2012.

Properdisposalandrigorouscontrolofspray-onasbestosandconstructionmaterialscontaining asbestosWe published a notice regarding measures to take in construction work that may cause dispersion of asbestos, and took measures to prevent dispersion of asbestos powder.

In addition, we began work to store the results of preliminary surveys on asbestos in demolition and repair work for a period of 40 years.

Thoroughgoing implementation of proper disposal and control of contaminated soilOn the real properties owned by TAISEI for marketing purposes, five surveys were conducted in fiscal 2012 on the basis of the Soil Contamination Countermeasures Act and other such statutes. There were two cases of countermeasure construction being implemented.

Complaints regarding construction sites and our responsesThe main complaints received from neighboring areas regarding environmental issues at the construction sites of all our branches during fiscal 2012 are as follows, with their content and response measures taken.

Do

Do

Do

Do

* KPIs P37


Improve Environmental Technology Research and Development and Proposal-Making Capability En

viro

nmen

tal

Impa

ct It

ems Main Environmental Laws,

Regulations, Etc. Planning and Design Execution Operation, Renovation, Demolition Application of Research and Development Technology Creation of New Business

EMS*1 specifi es environmental laws, regulations, etc.

Planning and design are carried out to optimize environmental friendliness and meet client requirements based on grasp of circumstances at location where construction business is undertaken as well as in surrounding area.

Noise, vibration, construction waste, and CO2 emissions are limited as much as possible while performing construction work with speed and certainty.

We engage in earthquake proofi ng to give building structures longer lives, we extend the life of existing structures, and we effi ciently demolish structures.

We engage in research and development of methods and technologies related to construction, and push the level of technology up to practical application.

We create new businesses in the environmental fi eld.

Glo

bal W

arm

ing

Prev

entio

n

● Basic Environment Act● Kyoto Protocol● Kyoto Mechanism● Outline for Promotion of Efforts to Prevent Global Warming

● Act on Promotion of Global Warming Countermeasures

● Kyoto Protocol Target Attainment Plan● Act on the Rational Use of Energy● Act on the Promotion of New Energy Usage● Urban Green Space Conservation Act● Housing Quality Assurance Act● Fluorocarbons Recovery and Destruction Act● Tokyo Metropolitan Ordinance on Environmental Preservation

● Design energy-saving architectural structures · Super-Eco buildings · T-Façade Air (thin double-skin system) · Eco-Sheet CASBEE*6 (CO2 emissions) · Carbon Navigator (building CO2 emission planning system) · T-SEEK (structure environmental performance evaluation system)

● Air conditioning and lighting equipment · T-Zone Saver (automatic ultra-energy-saving environment control system) · T-Personal II (personal environment control technology) · Geothermal air-conditioning system using cast-in-place piles · North Country Air Conditioning (eco-air-conditioning system for cold climates) · T-Breeze Floor System (total fl oor-vented air-conditioning system) · T-Soleil 100 (solar lighting system for tall buildings) · Original TAISEI LED lighting

● Miscellaneous · Smart thermal/electrical storage system · DC powered offi ce · BIM and VR*7 coupled functionality · Application of renewable energy (solar light, solar heat, wind power generation, etc.) · CO2 underground sequestration simulation, CO2 underground sequestration-related facilities

● Promote CO2 Zero Action, Eco Model projects● Carbon Navios (system for projecting CO2 emissions during building construction)

● Application of energy-saving construction methods · Continuous belt conveyor tunnel construction method · Harmonica method (large-section divided shield construction method) · Upward shield construction method · PavingA using Visco-Mix (medium-temperature compound material) · Fiber-reinforced ferro concrete segments

● Improvement of transport methods · Reduced transport distance · Education in fuel-economical driving (Eco-Drive) · Modal shift (surplus soil, industrial waste)

● Reduce CO2 by shortening construction periods · Continuous long-distance boring by shield machine with double bits

● Adopt energy-saving machines and equipment · Electric-powered backhoe, LED lighting, solar power

● Use biodiesel fuel

● General renovation work · Extending building life, installing information telecommunications capability, conversion to barrier free design, conversion to energy-saving design

● Energy-saving renovation workD

● Energy management · T-Green BEMS · T-Carbon Conductor · T-Smart Monitor

● Demand response technology*12

● ESCO business*13 B, D

● Recovery and destruction of fl uorocarbons● Recovery of SF6

● Use renewable energy · Mega-Solar power generation system · Concentrated Solar power generation system · Tidal current power generation system · Geothermal utilization system

● CO2 underground sequestration technology● Develop liquefi ed CO2 storage facilities● Heat-recovering solar battery louvers● Light-modulating ceiling system● T-Smart Focus (next-generation human detection sensor)● Low-carbon city block and city simulator● BIM and VR*7 coupled functionality● T-Site View (on-site panoramic photography system)● Mole navigator (underground location fi nding system using sound waves in the ground)

● Inter-seasonal ice storage air-conditioning system● Plant factory with inter-seasonal ice storage air-conditioning system

● Vegetable plant (thin LED grow light unit)● Aquarium using artifi cial seawater● Methane hydrate gas leak monitoring● CO2 underground sequestration (CO2 injection simulation, CO2 transportation)

● Electric power stabilization by electric power storage evaluation system (NaS battery*14)

● Distributed energy network technology (smart grid, smart city construction)

● Mega-Solar power generation system using the top of fi nal landfi ll site

● Wind power generation

Esta

blish

ing

a Re

cycl

ing

Soci

ety

● Basic Environment Act● The Basic Act for Establishing a Sound Material-Cycle Society

● Law for Promotion of Effective Utilization of Resources

● Construction Material Recycling Act● Law on Promoting Green Purchasing● Waste Management and Public Cleansing Law

● Act on Sophisticated Methods of Energy Supply Structure

● Zero emissions plans (3Rs of waste) · Eco-Sheet CASBEE (green procurement)

● Long-life design (develop materials, construction methods) · T-RESPO construction method (long-period ground motion countermeasure technology) · TASMO (next-generation intelligent seismic control*8 system) · T-Grid, T.G-WALL, T.T-WALL · TASS-fl oor (3D fl oor base isolation system) · TASS unit (equipment seismic isolation system for production facilities) · Automatic warehouse rack vibration control system · T-RESQF (earthquake emergency management system for production facilities) · Ultra high-strength concrete construction planning technology · TAS-Fine (ultra high-strength thin RC columns) · Ductal ultra high-strength fi ber-reinforced concrete (UFC) · T-Feels (TAISEI Eco-material comprehensive evaluation system)

● Resource-saving · Eco-friendly concrete · T-POP construction method (ultra-light long-span precast concrete beam) · CFT construction method (steel-frame construction method using concrete-fi lled steel tubes for columns) · Corrugated air duct (eco-air-conditioning duct made of high-performance corrugated cardboard) · TAS-Clean (Clean room air-conditioning unit) · Data center construction with cooling by introduction of outside air · T-Flexible Clean room, T-Smart Clean room

● Zero emission construction (3Rs of waste) · Designated worksite with implementation of zero-emissions priority · E-DAM (environmental data management system) · Recycle wood building materials generated by construction · Use tree cuttings for mulch, compost, charcoal · Effective use of soil generated by construction (soil stabilization material, etc.) · Construction method using reduced-slurry soil cement columns in rows

● Resource-saving · Precasting ultra high-strength concrete · Ultra high-strength concrete with 300 N compressive strength · Fc 200N precast column application · nePre (structures made of precast ferro concrete)C

· Reuse of existing pilings during building reconstruction · Green procurement (fl y ash concrete, etc.) · LNG tank dual PC dike

● Zero-emission demolition (3Rs of waste)● Conversion (technology to change use of building)● Renovation (improving the performance of buildings)● Life-extending repair · Earthquake resistance, base isolation, seismic vibration control · Use of ground fl ex mole method (fl exible boring) for anti-seismic reinforcement of tank conforming to old law · Embankment structure anti-seismic reinforcement method · Anti-seismic reinforcementF by Post-Head-bar (retrofi tted steel bar reinforcement against shear)

● Pipe refreshing method (restoration of marine pipes)● Measures against liquefaction of existing facilities with the groundwater level lowering method

● Measures against liquefaction of existing facilities with the WinBLADE method (improved soil mixing method by opening impellers in the ground)

● Effi cient use of concrete debris

● TAISEI super concrete● T-POP construction method (ultra-light long-span precast concrete beam)

● Reuse demolished concrete as aggregate● Use tree cuttings for charcoal, compost● Use dehydrated cake produced after chitosan fl occulant treatment for planting base

● Produce ethanol from rice straw

● Business of improving and operating fi nal disposal sites through PFI, DBO*15

● Business of restoring fi nal waste disposal sites● Business of carbonizing and recycling city waste through PFI

● Biogas fermentation of domestic animal waste, garbage, and use for electric power generation

● Methane fermentation without dilution by water

Pres

erva

tion

of B

iodi

vers

ity

● Basic Environment Act● Basic Act on Biodiversity● Act on the Promotion of Nature Restoration● Nature Conservation Act● Natural Parks Act● National Biodiversity Strategy of Japan 2012-2020

● Act on Conservation of Endangered Species of Wild Fauna and Flora

● Invasive Alien Species Act● Urban Green Space Conservation Act● Forest Act● Wildlife Protection and Proper Hunting Act● Landscape Act

● Ecological Planning● Landscape design (landscape planning, planning and design of building greening)

● Planning for harmony with the environment, ecosystem conservation● Mitigation, biotope● Nature-friendly greening, green space ecology planning● Natural environment conservation and disaster mitigation design method using GIS*9

● Wetland environment impact assessment● Wetland environment restoration● Water purifi cation using high-density oxygen water● Simplifi ed biodiversity assessment tool*10

● Rooftop greening, wall greening, rooftop vegetable gardensE

● Friendly to raptors and other rare organisms● Transplant rare plants● Turbid water treatment system using chitosan fl occulantF

● Local forest creation● Bottom sediment purifi cation method

● Relocation and preservation of historic buildings● Inherit and develop local culture● Conservation of cultural assets● Forest saver project● Forest restoration

● Ecosystem survey following biotope construction● Greening plan based on cluster analysis● Technology for spraying local wild grasses● Purifi cation system using adsorbent and aquatic plants

● Aquatic environment restoration● Restoration of tidal fl ats and Zostera beds● Placement and promotion of animal pathways on existing roads

Loca

l Env

ironm

enta

l Iss

ues

● Basic Environment Act● Vibration Control Act● Sewerage Act● Act on Regulation, Etc. of Emissions From Non-road Special Motor Vehicles

● Air Pollution Control Act● Environmental Impact Assessment Act● Act on Prevention of Marine Pollution and Maritime Disaster

● Water Pollution Control Act● Noise Regulation Act● NOx*2/PM*3 Act● River Act● Purifi cation Tank Act

● Environmental Assessment● T-Heats (heat island countermeasure analysis and evaluation system)● Low-carbon city block simulator● TSounds (comprehensive noise prediction system)● T-Diff (air pollution prediction and evaluation system)● TWinds-II (building wind prediction and evaluation system)● Low-maintenance rooftop greening system using TEPSAM greening foundation

● TEPSAM Cool Wall (high-tech water sprinkling system)● Closed system disposal site

● Environmentally Friendly Construction● Automatic noise and vibration monitoring system● Temporary enclosure greening (green curtain, water curtain)

● Water retaining pavement technology with water supply functionality (cool road)A

● Underground water reservoir construction methodA

● UD-HOMET construction method (low-noise, low-vibration construction method)

● Large-diameter curved pipe roof method● Application of photocatalytic air purifi er in underground construction

● ICT-based management technology for dam construction (4D-DIS)

● Unmanned construction equipment system● Tunnel blasting noise reduction system

● Environmentally friendly demolition planning● TECOREP system (environmentally friendly method for demolition of very tall buildings)

● Low-noise, low-vibration work method using wire saw● Laser non-slip work method

● Local environment assessment system● Vibration analysis system● Forecasting fl oods from localized severe rainstorms● Water purifi cation system using photocatalytic air purifi er

● Drinking water business

Haza

rdou

s Su

bsta

nces

● Basic Environment Act● Soil Contamination Countermeasures Act● Act on Special Measures Concerning Dioxins● Law Concerning Special Measures Against PCB*4 Waste

● Building Standards Act● Ordinance on Prevention of Health Impairment due to Asbestos

● PRTR*5 Law● Law Concerning Special Measures Against Contamination by Radioactive Materials

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.)

● Groundwater remediation● Healthful housing plans● Soil remediation double-cap insurance● Radiation decontamination

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in-situ remediation · Water injection bio-sparging method · Biodegradation method · Soil remediation methodF

● Groundwater remediation · Permeable purifying barrier (Multi-barrier) methodF

● Guidance regarding MSDS*11

● Radiation decontamination

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in situ remediation

● Asbestos countermeasures · Robot to remove spray-on asbestos inside elevator shafts · Asbestos removal in subways using specialized wagon

● Incinerator demolition system compliant with laws● Proper storage of PCBs● Radiation decontamination

● Soil and groundwater remediation● Sick house countermeasures● Robot to remove spray-on asbestos● On-site asbestos abatement detoxifi cation system● Radiation decontamination

● Indoor air pollution prevention● In-situ remediation of soil contaminated with benzene/cyanogen activating microorganisms

Plan

*1 Environmental management system *2 Nitrogen oxides *3 Particulate matter *4 Polychlorinated biphenyls *5 Pollutant release and transfer register*6 Comprehensive Assessment System for Building Environment Effi ciency *7 BIM: building information model; VR: virtual reality (both 3D technologies)*8 Commonly referred to as “vibration damping” because it addresses vibration from wind-induced motion. Here, where it specifi cally refers to seismic motion, it is referred to as “seismic control” to make it more

readily understood.

Environmental Data


Envi

ronm

enta

l Im

pact

Item

s Main Environmental Laws, Regulations, Etc. Planning and Design Execution Operation, Renovation, Demolition Application of Research and Development

Technology Creation of New Business

EMS*1 specifi es environmental laws, regulations, etc.

Planning and design are carried out to optimize environmental friendliness and meet client requirements based on grasp of circumstances at location where construction business is undertaken as well as in surrounding area.

Noise, vibration, construction waste, and CO2 emissions are limited as much as possible while performing construction work with speed and certainty.

We engage in earthquake proofi ng to give building structures longer lives, we extend the life of existing structures, and we effi ciently demolish structures.

We engage in research and development of methods and technologies related to construction, and push the level of technology up to practical application.

We create new businesses in the environmental fi eld.

Glo

bal W

arm

ing

Prev

entio

n

● Basic Environment Act● Kyoto Protocol● Kyoto Mechanism● Outline for Promotion of Efforts to Prevent Global Warming

● Act on Promotion of Global Warming Countermeasures

● Kyoto Protocol Target Attainment Plan● Act on the Rational Use of Energy● Act on the Promotion of New Energy Usage● Urban Green Space Conservation Act● Housing Quality Assurance Act● Fluorocarbons Recovery and Destruction Act● Tokyo Metropolitan Ordinance on Environmental Preservation

● Design energy-saving architectural structures · Super-Eco buildings · T-Façade Air (thin double-skin system) · Eco-Sheet CASBEE*6 (CO2 emissions) · Carbon Navigator (building CO2 emission planning system) · T-SEEK (structure environmental performance evaluation system)

● Air conditioning and lighting equipment · T-Zone Saver (automatic ultra-energy-saving environment control system) · T-Personal II (personal environment control technology) · Geothermal air-conditioning system using cast-in-place piles · North Country Air Conditioning (eco-air-conditioning system for cold climates) · T-Breeze Floor System (total fl oor-vented air-conditioning system) · T-Soleil 100 (solar lighting system for tall buildings) · Original TAISEI LED lighting

● Miscellaneous · Smart thermal/electrical storage system · DC powered offi ce · BIM and VR*7 coupled functionality · Application of renewable energy (solar light, solar heat, wind power generation, etc.) · CO2 underground sequestration simulation, CO2 underground sequestration-related facilities

● Promote CO2 Zero Action, Eco Model projects● Carbon Navios (system for projecting CO2 emissions during building construction)

● Application of energy-saving construction methods · Continuous belt conveyor tunnel construction method · Harmonica method (large-section divided shield construction method) · Upward shield construction method · PavingA using Visco-Mix (medium-temperature compound material) · Fiber-reinforced ferro concrete segments

● Improvement of transport methods · Reduced transport distance · Education in fuel-economical driving (Eco-Drive) · Modal shift (surplus soil, industrial waste)

● Reduce CO2 by shortening construction periods · Continuous long-distance boring by shield machine with double bits

● Adopt energy-saving machines and equipment · Electric-powered backhoe, LED lighting, solar power

● Use biodiesel fuel

● General renovation work · Extending building life, installing information telecommunications capability, conversion to barrier free design, conversion to energy-saving design

● Energy-saving renovation workD

● Energy management · T-Green BEMS · T-Carbon Conductor · T-Smart Monitor

● Demand response technology*12

● ESCO business*13 B, D

● Recovery and destruction of fl uorocarbons● Recovery of SF6

● Use renewable energy · Mega-Solar power generation system · Concentrated Solar power generation system · Tidal current power generation system · Geothermal utilization system

● CO2 underground sequestration technology● Develop liquefi ed CO2 storage facilities● Heat-recovering solar battery louvers● Light-modulating ceiling system● T-Smart Focus (next-generation human detection sensor)● Low-carbon city block and city simulator● BIM and VR*7 coupled functionality● T-Site View (on-site panoramic photography system)● Mole navigator (underground location fi nding system using sound waves in the ground)

● Inter-seasonal ice storage air-conditioning system● Plant factory with inter-seasonal ice storage air-conditioning system

● Vegetable plant (thin LED grow light unit)● Aquarium using artifi cial seawater● Methane hydrate gas leak monitoring● CO2 underground sequestration (CO2 injection simulation, CO2 transportation)

● Electric power stabilization by electric power storage evaluation system (NaS battery*14)

● Distributed energy network technology (smart grid, smart city construction)

● Mega-Solar power generation system using the top of fi nal landfi ll site

● Wind power generation

Esta

blish

ing

a Re

cycl

ing

Soci

ety

● Basic Environment Act● The Basic Act for Establishing a Sound Material-Cycle Society

● Law for Promotion of Effective Utilization of Resources

● Construction Material Recycling Act● Law on Promoting Green Purchasing● Waste Management and Public Cleansing Law

● Act on Sophisticated Methods of Energy Supply Structure

● Zero emissions plans (3Rs of waste) · Eco-Sheet CASBEE (green procurement)

● Long-life design (develop materials, construction methods) · T-RESPO construction method (long-period ground motion countermeasure technology) · TASMO (next-generation intelligent seismic control*8 system) · T-Grid, T.G-WALL, T.T-WALL · TASS-fl oor (3D fl oor base isolation system) · TASS unit (equipment seismic isolation system for production facilities) · Automatic warehouse rack vibration control system · T-RESQF (earthquake emergency management system for production facilities) · Ultra high-strength concrete construction planning technology · TAS-Fine (ultra high-strength thin RC columns) · Ductal ultra high-strength fi ber-reinforced concrete (UFC) · T-Feels (TAISEI Eco-material comprehensive evaluation system)

● Resource-saving · Eco-friendly concrete · T-POP construction method (ultra-light long-span precast concrete beam) · CFT construction method (steel-frame construction method using concrete-fi lled steel tubes for columns) · Corrugated air duct (eco-air-conditioning duct made of high-performance corrugated cardboard) · TAS-Clean (Clean room air-conditioning unit) · Data center construction with cooling by introduction of outside air · T-Flexible Clean room, T-Smart Clean room

● Zero emission construction (3Rs of waste) · Designated worksite with implementation of zero-emissions priority · E-DAM (environmental data management system) · Recycle wood building materials generated by construction · Use tree cuttings for mulch, compost, charcoal · Effective use of soil generated by construction (soil stabilization material, etc.) · Construction method using reduced-slurry soil cement columns in rows

● Resource-saving · Precasting ultra high-strength concrete · Ultra high-strength concrete with 300 N compressive strength · Fc 200N precast column application · nePre (structures made of precast ferro concrete)C

· Reuse of existing pilings during building reconstruction · Green procurement (fl y ash concrete, etc.) · LNG tank dual PC dike

● Zero-emission demolition (3Rs of waste)● Conversion (technology to change use of building)● Renovation (improving the performance of buildings)● Life-extending repair · Earthquake resistance, base isolation, seismic vibration control · Use of ground fl ex mole method (fl exible boring) for anti-seismic reinforcement of tank conforming to old law · Embankment structure anti-seismic reinforcement method · Anti-seismic reinforcementF by Post-Head-bar (retrofi tted steel bar reinforcement against shear)

● Pipe refreshing method (restoration of marine pipes)● Measures against liquefaction of existing facilities with the groundwater level lowering method

● Measures against liquefaction of existing facilities with the WinBLADE method (improved soil mixing method by opening impellers in the ground)

● Effi cient use of concrete debris

● TAISEI super concrete● T-POP construction method (ultra-light long-span precast concrete beam)

● Reuse demolished concrete as aggregate● Use tree cuttings for charcoal, compost● Use dehydrated cake produced after chitosan fl occulant treatment for planting base

● Produce ethanol from rice straw

● Business of improving and operating fi nal disposal sites through PFI, DBO*15

● Business of restoring fi nal waste disposal sites● Business of carbonizing and recycling city waste through PFI

● Biogas fermentation of domestic animal waste, garbage, and use for electric power generation

● Methane fermentation without dilution by water

Pres

erva

tion

of B

iodi

vers

ity

● Basic Environment Act● Basic Act on Biodiversity● Act on the Promotion of Nature Restoration● Nature Conservation Act● Natural Parks Act● National Biodiversity Strategy of Japan 2012-2020

● Act on Conservation of Endangered Species of Wild Fauna and Flora

● Invasive Alien Species Act● Urban Green Space Conservation Act● Forest Act● Wildlife Protection and Proper Hunting Act● Landscape Act

● Ecological Planning● Landscape design (landscape planning, planning and design of building greening)

● Planning for harmony with the environment, ecosystem conservation● Mitigation, biotope● Nature-friendly greening, green space ecology planning● Natural environment conservation and disaster mitigation design method using GIS*9

● Wetland environment impact assessment● Wetland environment restoration● Water purifi cation using high-density oxygen water● Simplifi ed biodiversity assessment tool*10

● Rooftop greening, wall greening, rooftop vegetable gardensE

● Friendly to raptors and other rare organisms● Transplant rare plants● Turbid water treatment system using chitosan fl occulantF

● Local forest creation● Bottom sediment purifi cation method

● Relocation and preservation of historic buildings● Inherit and develop local culture● Conservation of cultural assets● Forest saver project● Forest restoration

● Ecosystem survey following biotope construction● Greening plan based on cluster analysis● Technology for spraying local wild grasses● Purifi cation system using adsorbent and aquatic plants

● Aquatic environment restoration● Restoration of tidal fl ats and Zostera beds● Placement and promotion of animal pathways on existing roads

Loca

l Env

ironm

enta

l Iss

ues

● Basic Environment Act● Vibration Control Act● Sewerage Act● Act on Regulation, Etc. of Emissions From Non-road Special Motor Vehicles

● Air Pollution Control Act● Environmental Impact Assessment Act● Act on Prevention of Marine Pollution and Maritime Disaster

● Water Pollution Control Act● Noise Regulation Act● NOx*2/PM*3 Act● River Act● Purifi cation Tank Act

● Environmental Assessment● T-Heats (heat island countermeasure analysis and evaluation system)● Low-carbon city block simulator● TSounds (comprehensive noise prediction system)● T-Diff (air pollution prediction and evaluation system)● TWinds-II (building wind prediction and evaluation system)● Low-maintenance rooftop greening system using TEPSAM greening foundation

● TEPSAM Cool Wall (high-tech water sprinkling system)● Closed system disposal site

● Environmentally Friendly Construction● Automatic noise and vibration monitoring system● Temporary enclosure greening (green curtain, water curtain)

● Water retaining pavement technology with water supply functionality (cool road)A

● Underground water reservoir construction methodA

● UD-HOMET construction method (low-noise, low-vibration construction method)

● Large-diameter curved pipe roof method● Application of photocatalytic air purifi er in underground construction

● ICT-based management technology for dam construction (4D-DIS)

● Unmanned construction equipment system● Tunnel blasting noise reduction system

● Environmentally friendly demolition planning● TECOREP system (environmentally friendly method for demolition of very tall buildings)

● Low-noise, low-vibration work method using wire saw● Laser non-slip work method

● Local environment assessment system● Vibration analysis system● Forecasting fl oods from localized severe rainstorms● Water purifi cation system using photocatalytic air purifi er

● Drinking water business

Haza

rdou

s Su

bsta

nces

● Basic Environment Act● Soil Contamination Countermeasures Act● Act on Special Measures Concerning Dioxins● Law Concerning Special Measures Against PCB*4 Waste

● Building Standards Act● Ordinance on Prevention of Health Impairment due to Asbestos

● PRTR*5 Law● Law Concerning Special Measures Against Contamination by Radioactive Materials

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.)

● Groundwater remediation● Healthful housing plans● Soil remediation double-cap insurance● Radiation decontamination

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in-situ remediation · Water injection bio-sparging method · Biodegradation method · Soil remediation methodF

● Groundwater remediation · Permeable purifying barrier (Multi-barrier) methodF

● Guidance regarding MSDS*11

● Radiation decontamination

● Remediation of contaminated soil (volatile organic compounds, petroleum, heavy metals, PCBs, dioxins, etc.), in situ remediation

● Asbestos countermeasures · Robot to remove spray-on asbestos inside elevator shafts · Asbestos removal in subways using specialized wagon

● Incinerator demolition system compliant with laws● Proper storage of PCBs● Radiation decontamination

● Soil and groundwater remediation● Sick house countermeasures● Robot to remove spray-on asbestos● On-site asbestos abatement detoxifi cation system● Radiation decontamination

● Indoor air pollution prevention● In-situ remediation of soil contaminated with benzene/cyanogen activating microorganisms

*9 Geographic information system *10 Assesses effects of creating a space that considers biodiversity by showing the organisms that may potentially visit. *11 Material safety data sheet *12 A system that varies the energy demand to achieve a balance between supply and demand. *13 Business providing comprehensive services including energy-saving proposals, provision of facilities, maintenance, and management. *14 Sodium-sulfur batteries*15 A business method similar to the private fi nance initiative (PFI) in which the public sector takes on fund-raising and contracts design, construction, and operation to the private sector.

A: Taisei Rotec Corporation; B: Taisei-Yuraku Real Estate Co., Ltd.; C: Taisei U-LEC Co., Ltd.; D: Taisei Setsubi Co., Ltd.; E: Taisei Housing Corporation; F: Seiwa Renewal Works Co., Ltd.(As of April 1, 2013)

* KPIs P37


TAISEI Group Environmental DataPromoting Environmental Management in whole TAISEI GroupWe analyze material data from seven group companies participating in the TAISEI Group Environmental Action Meeting, including Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co., Ltd., Taisei U-LEC Co., Ltd., Taisei Setsubi Co., Ltd., Taisei Housing Corporation and Seiwa Renewal Works Co., Ltd., and collaborate with them to reduce CO2 emissions and industrial waste as well as save energy. As a fi ve-year plan starting in fi scal 2012, we have also begun work to standardize environmental data collection methods. We are aiming for independent assurance in fi scal 2016.

Material Flow Group CompaniesINPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012

Energy Consumption: Total 106MJ 1,775 1,788 1,649 1,762 1,743

Worksites 106MJ 289 290 255 300 279

Factories 106MJ 1,321 1,327 1,232 1,311 1,302

Offi ces 106MJ 165 172 162 152 162

Fossil Fuel Consumption: Total 1,000kℓ 31 31 28 29 30

Light oil 1,000kℓ 9 8 8 9 8

Kerosene 1,000kℓ 3 3 3 3 2

Heavy oil 1,000kℓ 18 18 15 17 17

Gasoline 1,000kℓ 2 2 2 1 3

Power Consumption: Total 106kWh 45 46 46 44 45

Worksites 106kWh 1 1 1 1 1

Factories 106kWh 34 35 35 35 35

Offi ces 106kWh 10 11 10 8 9

City gas 10m3 3,380 2,900 2,590 3,190 2,853

LPG t 198 133 145 150 133

Water 10m3 170 140 200 100 105

OUTPUT Unit FY2008 FY2009 FY2010 FY2011 FY2012CO2 Emissions: Total 1,000t-CO2 109 107 99 107 107

Worksites 1,000t-CO2 20 19 17 20 18

Factories 1,000t-CO2 81 80 74 78 81

Offi ces 1,000t-CO2 9 8 8 8 8

Industrial waste: Total 1,000t 299 343 354 437 278

Waste recycled 1,000t 293 334 338 423 267

Final waste disposal 1,000t 6 9 16 14 11

Comprehensive Environmental Activities Plan

ImplementationofEco-ModelProjects• Recipient of 2 Awards from the Minister of Land,

Infrastructure, Transport and Tourism for Promoting Reduce, Reuse, Recycle Activities

The Midosuji shield construction site (Eco-Model Projects site, Osaka) and Keisei Sugano construction site (Chiba) each received an award from the Minister of Land, Infrastructure, Transport and Tourism for Promoting Reduce, Reuse, Recycle Activities given for active implementation of the three R’s (reducing, reusing, and recycling) and ongoing activities.

The Midosuji shield construction site was recognized for its ingenious 3R activities utilizing the unique materials and facilities of shield tunnels and activities to reduce CO2 emissions. The Keisei Sugano construction site was recognized for its activities to reduce CO2 emissions by solar power generation and reduction in sludge production using the CRM (Continuous Walls Using Recycled Mud) method.

ExpansionofEco-ModelProjectsOverseasIn fi scal 2012, we attempted expanding Eco-Model Projects to overseas locations.In Taiwan, we calculated the amount of CO2 emissions at one civil engineering site, three building construction sites, and the offi ce and discovered that the total amount of emissions was approximately 40,000 tons.

Assessing the Environmental Load ThroughouttheSupplyChainIn fi scal 2012, we joined the CDP Supply Chain Program hosted by CDP, an internationally recognized authority (British NGO). This program involves assessing the volume of carbon dioxide emissions (GHG Protocol, Scope 3) related to TAISEI’s business activities at domestic and overseas business partner companies.

Do Do

Do

Environmental Data

Message from an Environmental ManagerYoshiya Kanmuri, Head of the Environmental Safety Department, Taisei U-LEC Co., Ltd.

The PC (precast concrete) construction method is an eco-friendly method that uses fewer concrete forms and construction vehicles than previous methods. Our company, that is a pioneer in industrialized residential construction using the PC method, will celebrate 50 years in business this coming August. With the strong determination of the management executives, we successfully used the PC method to reduce gas usage rate by 50%, carbon dioxide rate by 45%, electric power usage by 30%, and industrial waste production by 40% over the past fi ve years. Going forward, we will continue to expand into new technology markets and strive to even further reduce the environmental load.


0

20

25(%) (Environmental R&D costs / Total R&D costs)

19.0

21.2 21.7

2008 2009 2010

22.4

20.0

2011 FY2012

(kg/¥1 million) (Amount of direct final disposal / Value of construction work)

0

5

10

15

20

(Environmental R&D costs / Total R&D costs)

2008 2009 2010

1715

11

2011

15

FY2012

14

(Amount of direct final disposal / Value of construction work)

(Sales/ CO2 emissions (construction sites and offices))

(¥1 million/t-CO2)

0

2

4

6

2008 2009 2010

4.2 4.4 4.1

2011

4.4

FY2012

4.5

Environmental preservation costs (Millions of yen)

Classification Details of Major Initiatives

Fiscal 2012Investment Cost

Total Year-on-Year

Civil Engineering

Building construction Office Total Year-on-

Year1. Environmental Preservation Costs by Business Area — — 6,066 9,839 31 15,935 1,233

(1) Pollution prevention costs

● Costs to prevent air pollution, water contamination, noise and vibration caused by temporary work at construction sites — — 642 213 21 876 –535

(2) Environmental Preservation costs

● Costs to recover CFCs and halons, and in purchasing green electricity — — 1 23 4 28 12

(3) Resource recycling costs

● Waste disposal costs at construction sites, etc., recycling costs, and recovery and disposal costs for asbestos and PCB — — 5,422 9,604 6 15,031 1,756

2. Upstream and downstream costs

● Personnel and management expenses incurred in taking the environment into account in design and engineering — — 0 0 1,060 1,060 –151

3. Administrative costs

● Personnel, training and review costs related to EMS, costs for greening around construction sites, regional cooperation, etc. — — 40 17 1,016 1,074 –428

4. R&D costs ● Personnel and management expenses for environment-related R&D 32 0 0 0 1,532 1,532 –327

5. Social activity costs ● Donations to environmental NGOs, etc. — — 0 0 66 66 61

6. Environmental remediation costs

● Soil survey and clean-up costs for Company property up for sale (¥27.6 million), as well as cost of repairing land subsidence, roads and neighboring areas (¥600,000)

— — 0 3 28 31 3

Total environmental preservation costs 32 — 6,106 9,860 3,732 19,697 390

Economic effects of environmental preservation measures (Millions of yen)

Economic Effects of Environmental Preservation Measures Total

Economic effects of environmental preservation measures (Actual effects)

Profit ● Recycling of waste generated in main business operations 232

Cost savings

● Savings in energy costs in offices due to energy conservation –15● Savings in energy costs at construction sites –404● Savings in waste disposal costs through resource conservation and recycling –2,124

Economic effects produced by environmental preservation measures (Estimated effects)

Reduction in environmental impact in monetary terms 4

■ Proportion of environmental R&D costs to total R&D costs

■ Environmental efficiency ■ Environmental impact ratio *Only TAISEI-derived impact

Environmental Accounting

Environmental preservation benefitsType of Environmental Preservation Benefit Environmental Performance Indicator Unit

Fiscal 2012Civil Engineering Building construction Office Total Year-on-Year

Environmental preservation benefits related to resources invested in business activities

● Power Million kWh 56 58 29 143 –18● Light oil kℓ 28 25 — 53 –60,816● Kerosene kℓ 0.3 0.5 — 0.8 –1,199● City gas 1,000m3 — — 150 150 65● Water 1,000m3 884 696 83 1,663 –1,400

Environmental preservation benefits related to environmental impact and waste generated from business operations

● CO2 emissions 1,000t-CO2 103 97 16 216 –12● NOx emissions t 480 441 — 921 –214● SOx emissions t 77 66 — 143 –271● Construction waste 1,000t 706 1,530 — 2,236 603● Construction soil generated (amount removed from construction site) 1,000m3 2,113 640 — 2,753 1,036

Environmental preservation benefits related to goods and services produced by business operations*

● Estimated annual CO2 reduction in operations (effect of eco-friendly design) t-CO2 — 20,634 — 20,634 –1,996

* Compared to the 1990 level for buildings to which the Law Concerning the Rational Use of Energy applies; projected emissions are calculated using the CASBEE eco-sheet

Value of construction work and sales (Fiscal 2012) (Millions of yen)

Civil engineering Building construction Development projects, etc.*

TAISEI Corporation (Japan)Value of construction work 199,572 768,009 —

Sales 204,377 760,314 32,500

*Environmental data for development projects is taken from head office and branch offices and has been included in “Office” below

Do


Environment-related external evaluation

Environmental Topics & Environment-related External EvaluationEnvironmental chronology

Date Environment-related Topic

2012 April New administrative employees participated in an environment and social contribution activity to create local green areas

May

Selected as a Ministry of the Environment Eco First CompanyReceived the Chairman’s Award from the Japan Construction Machinery and Construction Association for the TECOREP systemCo-sponsored the Japan Pavilion at the United Nations Conference on Sustainable Development (Rio+20)

June

Began a plan to expand the Technology Center to create a safe, secure, and comfortable space

Worked to expand and implement the “Goya de eco” project nationwide (Association of Subcontractors for Health, Safety, and the Environment)

Signed a business collaboration agreement for decontamination work with CH2M HILL, a company with vast experience in decontamination and facility dismantling in American nuclear complexes

July

Successfully created ultra-high-strength CFT columns made of 780N/mm2 steel and Fc150N/mm2 concreteEmployees participated in a volunteer activity to create local green areas with the aim of coexisting with the environmentReceived the Japan Environmental Management Grand Prize for renovation work at Waseda Setsuryo Junior High School and High School (Host: Japan Environmental Management Grand Prize Awards Committee, Mie prefecture).

September Exhibited at the Radioactive Decontamination & Radioactive Waste Disposal International Exhibition

October

Exhibited at the Exhibition for Geo-Environmental RestorationGeneral Manager of the Environment Division gave a lecture at United Nations University for the CDP 2012 Debriefi ngEmployees participated in a volunteer activity to create local green areas with the aim of coexisting with the environmentReceived an award from the Japan Committee for United Nations Decade on Biodiversity for the project to create local green areas

November Designed and constructed a ‘disaster mitigation’ refrigerator-freezer facility in preparation for a tsunami December Exhibited at Eco Products 2012

2013 JanuaryHeld an Exhibition to Commemorate the 140th Anniversary, “Passing the torch to the future”Started testing energy control technology in a Smart CityImplemented the TAISEI 1 Ton Club to support preservation of the Kamaishi forest and tree planting activities in Borneo

February

Received authorization from the Minister for Eco-friendly high-strength concreteSupported the Gratitude-to Borneo Project — Helped build a rescue center, helped install vending machines with a donation function, and assisted in a lecture meeting by Gen Bando, Director of the Asahikawa City Asahiyama Zoo — Received commendation from the Japan Federation of Construction Contractors for Pollution Control Measures and Recycling and Proper Disposal of Construction Byproducts — Kyushu Branch TAISEI JV Chiwata Tunnel Site —

March Held volunteer project to create nest boxes for dormice

Recipient of the Watt Sense Award TAISEI was recognized for the “CO2 Zero Action” and the “Eco-Model Projects” CO2 reduction activities in construction sites, and received an award of excellence in the action category in the Watt Sense Awards sponsored by the Ministry of the Environment for being a company with outstanding initiatives concerning power conservation and effective use of energy.

Recipient of Excellence Award in the Eco Products AwardsWe received an Excellence Award for Energy-Saving Product in the 9th Eco Products Awards for the Smart DC Offi ce, a system for powering offi ces in buildings with DC power that is being tested in the Yokohama Smart City Project (YSCP).

NamedHighCDPDisclosureLeaderCompanySelected as a company with outstanding disclosure for the third consecutive years.

NikkeiEnvironmentManagementSurveyCompanyRankingRanked second in the construction division.

Environmental Data

TAISEI gained approval in the Ministry of the Environment Eco First System


Independent Assurance Report


<Head Office> Civil Engineering Division TAISEI QUALITY Committee / Building Construction Division TAISEI QUALITY Committee

<Branches> TAISEI QUALITY Committees

Chair: Division General Manager Members: Department General Managers and equivalent

Chair: Branch General Manager Members: Department General Managers and working group leaders

Workplace Environment Improvement Group (Environment)Workplace reforms designed to foster anenvironment of dedication to construction

Quality Improvement Group (HR)Quality training and education programs

and elimination of quality issues

Production Tool Innovation Group (Tools)Development of new construction technology

and IT productivity tools

[Implementation]at construction sites

Production Tools Innovation Working Group (Tools)

Quality improvement Working Group (People)

Workplace Environment ImprovementWorking Group (Environment)

Supp

ort

and

prom

otio

n

Sugg

esti

ons

and

repo

rtin

g

Quality Control and Customer Satisfaction Improvement

Consumer Issues

Social Data



The TAISEI Group aims to contribute to society as a whole and to develop sustainably as a corporate group. For such purposes, we will continue to provide our customers and society as a whole with ensured quality in our products and services as well as such technologies as necessary for the resolution of social issues.



• Strengthening of initiatives and expansion of business fields to create high added value

(1) Expand TAISEI QUALITY activities(2) Develop and provide technologies, such as base

isolation and vibration control, that help resolve the problems facing society

Main Issues andObjectives (FY2012) Main Initiative Items (FY2012)

Main KPIs* (Key Performance Indicators) Pages

● Quality Control and Customer Satisfaction Improvement

● Establishment and observance of quality management standards and procedures

● Customer satisfaction surveys● Number of patent applications fi led and granted P38

● Development and provision of technologies for resolving social issues

● Amount of media coverage of development of technologies/Projects in which technologies were applied

P38

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 38.

Plan Do

Plan

Plan

Establishmentandobservanceofqualitymanagement standards and proceduresProviding high quality construction products and related services is a TAISEI’s key mission. To fulfi ll this mission, we have established our ”Quality Policy” and use it as a base for our corporate activities.

In addition, TAISEI has also developed our own quality management system that has been in operation for many years, and was the fi rst construction company in Japan to acquire ISO 9001 certifi cation in 1996. To provide our customers with safe, secure construction products and after-sales service, we have established the quality management system that covers all stages from construction to post-delivery operations. We always keep the manuals and standards required for construction-related quality management, which are developed as needed to improve quality management and to keep up with new cutting-edge technology. In 2009, we launched TAISEI QUALITY activities in connection with our quality management system. We pursue activities as a Group based on the three pillars of Increasing Productivity, Increasing Quality and Eliminating Quality Issues, and Fostering an Environment of Dedication to Construction.

➊DevelopinghumanresourcesthatsupportqualityOn the job training is provided to young employees in the Civil Engineering Division and the Building Construction Division who will bear the company’s future. We also implement an educational support system run by highly-experienced employees with a wealth of expertise and strong technical skills to develop the workforce.

➋Increasing customer satisfactionFollowing the handover of construction products, the head offi ce and branch offi ces come together to provide whatever technical support is needed, and the different divisions and departments collaborate to provide adequate and timely quality maintenance (after-sales service).

To determine the level of customer satisfaction (CS), we hold CS interviews after the handover of construction products (for civil engineering projects) and have customers fi ll out surveys (for building construction projects). The survey and interview results are reported to the TAISEI QUALITY Committee and efforts are made to ensure quality and increase customer satisfaction. KPIs P38

Do


* � : Technical release � : Event exhibition, etc.

Main Media Presentations

� Reported on exhibition one year after the Great East Japan Earthquake on how to create societies that can withstand disasters (March 26-30, Tokyo)

� TECOREP system earned the Chairman’s Award from the Japan Construction Machinery and Construction Association —Method for demolition of very tall buildings that minimizes the environmental impact—

� Developed T-Fogless Flow air conditioning system for endoscopic surgery —Prevents fogging of the laparoscope and creates a comfortable and efficient environment for the patient and surgeon—

� Began a plan to expand the Technology Center to create a safe, secure, and comfortable space —Construction of new research facilities and enhancement of existing facilities for developing high value-added technology—

� Exhibited at FOOMA JAPAN (International Food Machinery and Technology Exhibition) (June 5-8, Tokyo)

� Exhibited at the Vietnam International Exhibition of Construction Technology (June 27-29, Hanoi)

� Signed a business collaboration agreement with U.S. company, CH2M HILL for decontamination work —Aiming for reconstruction as early as possible—

� Successfully created ultra-high-strength CFT columns made of 780N/mm2 steel and Fc150N/mm2 concrete —First application in a high-rise building in the Otemachi 1-6 Project (tentative name)—

� Exhibited at Concrete Techno Plaza 2012 (July 4-6, Hiroshima)

� Exhibited at the Japan National Conference on Geotechnical Engineering (July 14-16, Aomori)

� Held an earthquake-proofing Internet seminar on BCM from the viewpoint of resulting events and initiatives for earthquake disaster mitigation

� Exhibited at RADIEX 2012 (Radioactive Decontamination & Radioactive waste Disposal International Exhibition) (September 24-26, Tokyo)

� Construction Fair 2012 (September 30 - October 2, Tokyo)

� Exhibited at Exhibition for Geo-Environmental Restoration 2012 (October 17-19, Tokyo)

� Exhibited at the Data Center Expo (October 24-26, Chiba)

� Exhibited at EE Tohoku ‘12 (October 24-25, Miyagi)

� Exhibited at Construction Technology Fair 2012 in Chubu (October 25-26, Chubu)

� Exhibited at a concrete symposium on development of prestressed concrete (October 25-26, Shiga)

� Designed and constructed a ‘disaster mitigation’ refrigerator-freezer facility in preparation for a tsunami —Protecting buildings and property from a Level 1 tsunami—

� Held BCP drills for the entire TAISEI Group —Based on the scenario of an earthquake occurring directly beneath the Tokyo Metropolitan Area—

� Exhibited at the Lifestyle and Technology Construction Fair (November 2-3, Takamatsu)

� Exhibited at Messe Nagoya 2012 (November 7-10, Nagoya)

� Exhibited at the Construction Technology Forum (November 8-9, Saitama)

� Exhibited at Construction Technology Forum 2012 in Hiroshima (November 22-23, Hiroshima)

� Exhibited at Eco-Products 2012 (December 13-15, Tokyo)

� Developed an earthquake-resistant device for automated warehouses, and made the decision to install it in the Logistics Center —Facilities capable of business continuity following an earthquake—

� Held an Exhibition to Commemorate the 140th Anniversary, “Passing the torch to the future” (January 21-25, Tokyo)

� Started testing energy control technology in a Smart City —Start of full-scale tests in the Yokohama Smart City Project (YSCP)—

� Received authorization from the Minister for Eco-friendly high-strength concrete —First in Japan to be certified for a design basis strength of 80N/mm2—

� Developed a tsunami wave-making device that can precisely reproduce a large-scale tsunami —Reproduction of tsunami behavior near breakwaters and on shore structures—

� Exhibited at JFMA Forum 2013 (March 12-14, Chiba)

Develop and provide technologies for resolving social issuesThe TAISEI Group conducts research and development into technology with an emphasis on fundamental technology, new material technology and cutting-edge technology for urban redevelopment, environment and engineering, energy, design and construction. TAISEI’s aims are to meet the needs of society and customers and cultivate new markets through technology.

We invested 9.0 billion yen in research and development (consolidated amount for fiscal 2012) and actively promoted alliances outside the Company with research institutes such as universities and entities from the same and different industries. We also actively published our technological developments in newspapers, academic articles, and other outside media. We thus endeavor towards “living technology” that answers the needs of society. KPIs P38

Do


Environmental Data

Main Technical and Development Initiatives (Consolidated)

Item Category Title Details Example of application Published in (*) Page

Tais

ei C

orpo

ratio

n

Structural Construction Method

Closed Type Ultra-high Rise Building Demolition Method “TAISEI Ecological Reproduction System”

A demolition method in which an ultra-high rise building is dismantled so that the dismantled members can be reused

Grand Prince Hotel Akasaka, etc.

�¢£

P21P18No.45

300N/mm2 Class Ultra-high Strength Concrete “TAISEI Super-concrete”

New structural method using 300N/mm2 class ultra-high strength concrete belonging to “Advanced concrete technology T-RC+”

Underground plaza of Ochanomizu Sola City, etc.

�¢

P21P18

Natural ground prediction system for front of a tunnel cutting face

Natural ground prediction system for condition of the ground in front of a tunnel cutting face

Mountain tunneling sites ¢£

P17No.45

Materials Effective Utilization of Concrete Rubble

Technology to reuse concrete rubble generated in earthquakes as hardened cement materials

Kamaishi disaster waste disposal

�¢

P21P17

Disaster prevention

“T-RESPO Method” for protecting against long period seismic motions

Vibration control method for protecting Ultra high-rise building construction from resonance with long period seismic motions

Shinjuku Center Building, etc.

�¢£

P19P18No.44

Vibration Control System for Automated Warehouse Racks

Vibration control device to minimize goods falling from automated warehouse racks

Kobayashi Kako Co., Ltd. Logistics Center

��¢£

P20P21P18No.45

Tsunami BCP related technology, tsunami wave-making device

Device capable of reproducing the behavior of tsunami around tsunami wave defenses and above ground structures, based on testing and analysis

Used in measures against tsunami along coasts and for formulating BCPs

�¢

P19P18

Technology for in-situ purification of groundwater contaminated with cyanide

Technology for purification of cyanide compounds in groundwater that are difficult to decompose

Toho Gas Co., Ltd. �¢

P21P17

Measures against liquefaction

New ground improvement technology using a 1.2 m diameter wide blade agitation device that can open and close in the ground

Development and verification complete, yet to be applied

�£

P21No.45

Environment Yokohama Smart City Project(YSCP) verification project

Verification of comprehensive energy management system as an undertaking in the Ministry of Economy, Trade and Industry’s “Next-generation Energy and Social System Verification Project”.

Taisei Technology Center, etc.

�¢£

P22P18No.45

T-Flexible Cleanroom Air conditioning and ventilation system that enables the air flow, air cleanliness, temperature, and humidity of clean spaces to be freely set

Electronic device factories, etc.

�¢

P22P18

ICT “Field Pad”, cloud-linked application - “Field Pad”

Construction management system for viewing drawing information and change notifications, etc., using a smart device, and automatically registering construction record photographs, by linking to the cloud

Building construction sites and some civil engineering sites of Taisei Corporation

� P22

Unmanned Construction System

A system that enables construction by remote operation in severe working sites where humans cannot enter

Disaster recovery sites, etc. �£

P21No.44

Gro

up c

ompa

nies

Structural Construction Method

Wall type precast concrete construction method (Taisei U-LEC Co., Ltd.)

An industrialization method in which floors and walls of a building are produced in the company’s factory, transported to site, and assembled

Hulic Court Yukigaya, etc. � P23

Wall type reinforced concrete housing “Palcon”

Custom-built housing with excellent seismic resistance and durability, by applying Taisei’s ultrahigh-rise building construction technology to detached housing

Detached housing, rental housing, etc.

� P24

Post-Head bar (PHb) construction method(Seiwa Renewal Works)

A seismic retrofit method in which Post-Head-bar shear reinforcement that is anchored with post-construction plates is embedded within structures.

Existing underground structures, water purification works, pump houses, tunnels, etc.

�£

P24No.44

Environment Air conditioning eco-duct “Corru-Airduct” (Taisei Setsubi Co., Ltd.

Corrugated board ducts using aluminum foil. A joint development of Taisei Corporation, Rengo Co., Ltd., and Kurimoto Ltd.

Taisei Technology Center, Rengo Co., Ltd., Kyoto factory

�£

P23No.41

ICT Three-dimensional machine control system (Taisei Rotec Co., Ltd.)

Use of Information and Communication Technology (ICT) in road pavement construction

Introduced into sports facility (tennis courts) construction sites

� P23

Others Condominium renewal projects(Taisei-Yuraku Real Estate Co., Ltd.)

Delicate support ranging from reaching an agreement with the residents regarding condominium block rebuilding, and finding new housing for those that wish to change residence

OberOfuna Marks Court � P24

* Mark on the right of the project name g �: Corporate Report 2013 �: Corporate Report 2012¢: 2012 Securities Report £ : Technology Center Report (Brochure, web site)


NOWTechnologyforResilientUrbanDevelopment

* Reference) Corporate Report 2013 Special Edition P17-P18A resilient society with resistance and recovery mechanisms is needed and that has the attitude of facing

up to natural disasters. In that way even, when threatened by global scale natural phenomena such as climate change, etc., or when an abnormal event such as a fire occurs or toxic material is released, etc., the society is almost unaffected. And even if affected, the impact is limited and does not become a serious situation, and immediately the recovery capability operates to bring about restoration. In order to increase the resilience of society to these threats and abnormal events, here we introduce several of the technologies for resilient urban development from among the research and development being undertaken by Taisei Corporation,.

[1] Technologies for recovery from earthquake disasters and to contribute to rebirth of Japan• Investigation of surface decontamination methods prior to converting timber materials into chips• Development of technologies for effective utilization of concrete rubble generated in the Great East

Japan Earthquake• Development of tsunami shelters (development of tsunami refuge buildings)• Structural schemes and construction of elevated urban plazas• Proposal of local area rebirth by converting the upper floors of existing suburban residential

complexes into local industrial facilities[2] Technologies to prepare for future earthquakes

• Simulation of seismic motions• Earthquake and wind measurement and monitoring system• Prediction of seismic motions in the Tokyo area• Seismic disaster prevention system for industrial facilities• Seismic risk evaluation system• Countermeasures against long period seismic motions for existing ultra high-rise buildings• Seismic performance of structural steel column-beam connections subject to long period seismic

motions• The effect of seismic isolation and vibration control buildings• Seismic isolation devices for semiconductor manufacturing plant• Concentrated energy absorption type vibration control system• Analytical investigation of vibration control of automated warehouse racks• Large-scale ceiling construction methods with excellent seismic resistance• Structural steel framework seismic retrofit method taking architectural design into consideration• Embedded post construction plate shear reinforcement• Development of seismic resistant joints that are repairable• Tsunami propagation simulation• Technology for analysis of internal flooding due to tsunami• Methods of removal of salt on agricultural land inundated by tsunami• Analysis of ground liquefaction• Ground improvement methods as measures against liquefaction• Method of seismic retrofit of embankments on liquefied ground• Development of measures against liquefaction using the overburden pressure of direct foundations• Development of in-ground wide blade type ground agitation and improvement method• Unmanned construction system

[3] Technologies for achieving a resilient energy system• Technology center smart community plan• Development of simulation technology for determining a building shape from its sunlight

environment• Analysis of the internal and external environment and energy of a building using the Low Carbon

City Block Simulator®

• Measurement survey of office lighting environment improvement method when saving electricity

(From Taisei Technology Center Report No. 45 “Technology for Resilient Urban Development Research and Development Initiatives for Recovery from Major Disasters, and to Lead to Regeneration of a Sustainable Japan that is Strengthened against Disasters” / Taisei Technology Center Building Engineering Research Institute, Civil Engineering Research Institute, Building Technology Development Department, Civil Engineering Technology Development Department)


Promoting social contribution activitiesThe TAISEI Group works hand-in-hand with a region‘s people in the fi elds of local community, environmental preservation, academics and culture. All TAISEI branches and construction sites worldwide play a role.

Here, we introduce some of the initiatives being undertaken.

Contributions to Local Communities

Promoting social contribution activities

Social Contribution Activities (Image)

Local community

NPOTAISEI Group

employees volunteer activities

Environment preservation Academics and culture

Connections

Community Involvement and Development

Local Community

(Overall Principles of Conduct) Basic Conceptual Approaches

TAISEI Group, as a good corporate citizen, will build sound relationships with local communities and promote dialog and harmony with society. We will also contribute to the development of society as a whole.

(Overall Management Perspective) Mid-Term Business Plan and Business

Issues

• Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction

• Development/improvement of robust business foundations



Main KPIs* (Key Performance Indicators) Pages● Contributions to local communities

● Contributions to local communities ● Number of activities contributing to society and the environment P39

● Expansion of employees’ volunteer activities (Support activities in disaster-affected areas, etc.)

● Number of employees who participated in volunteer activities P39


Plan Do

Plan

Plan

Do

● The Taisei Corporation Natural and Historical Environment Fund

The Taisei Corporation Natural and Historical Environment Fund was established in 1993. In the 20 years since, we have provided aid to a total of 419 groups, including NPOs, in the amount of approximately ¥15 million annually.

Main Recipients of Funding (Last 3 Years)FY2010 Nature Works, and 22 others

FY2011 CORE Community Road Empowerment and 25 others

FY2012 Animal-pathway and Wildlife Association (company) and 31 others

● Holding regional contribution activities throughout Japanà Offering tours

We offer tours of the Taisei Technology Center (Yokohama) and civil engineering and construction sites nationwide with the aim of ensuring good communication with local communities.

à Cooperation with local communitiesEmployees at the Second Tomei Expressway Aokigawa Bridge construction site (Aichi) participated in a sketching contest, cleaning activities, and other events with people from the neighboring community. In recognition of the site’s regional exchange efforts, it received letters of

appreciation from Tokiwa Elementary School and the Tokiwa east district.

à Cooperation with the Ecocap MovementTAISEI cooperated with the NPO Ecocap Movement to donate vaccines for about 2,700 children in fi scal 2012.

à Donated TAISEI Charity SeatsSix “TAISEI Charity Seat” tickets to see a Nippon Ham Fighters baseball game in Hokkaido were donated to the Bureau of the Future of Children in Sapporo that were then distributed to a social welfare organization.

à Gold Medal for Merit for 20 years of employee blood donationsEvery year, employees at the head offi ce and branches donate blood for the Japanese Red Cross Society at the Shinjuku Center Building. We received a Gold Medal for Merit in recognition for 20 consecutive years of blood donation activities.

à Gave independence support to physically and mentally challengedThe Technology Center supports the independence of physically and mentally challenged by allowing use of the company cafeteria each Wednesday for practical training in face-to-face bread selling by people from the Hikari Higashitotsuka Community Activity Home.

à International goodwill cooperationEmployees stationed in Sri Lanka assisted as volunteers in the construction of the country’s fi rst baseball stadium from the planning stages including drafting of the preliminary design. With the support of Grant Assistance for Cultural Grassroots Projects from the Japanese Government, the stadium was completed in 2012. The same year, a friendly match was held at the stadium between Japanese high school students and a select team of Sri Lankan players as an event to commemorate 60 years of diplomatic relations between the two countries.

● Employee volunteer activities to support areas affected by the Great East Japan EarthquakeFollowing activities in fi scal 2011, employee volunteer activities* were held again from April to June 2012, hosted by the Employees’ Association in Ishinomaki, Miyagi prefecture that was destroyed in the earthquake. As many as 119 employees participated. * KPIs P39

Social Data

Aokigawa sketching contest


TOPICSEntrusted works of art to the National Museum of Western Art and cooperated in a special exhibition

The National Museum of Western Art is the only building in Japan designed by Le Corbusier, and is designated as an important cultural property of Japan. Sharing the architectural principles held by Le Corbusier, TAISEI entrusted a portion of its vast collection of his pieces to the Museum with the hope of introducing his achievements to a wide audience. The National Museum of Western Art will also hold an exhibition “Le Corbusier and 20th Century Art” from August to November, 2013, for which TAISEI has been providing special cooperation from the planning stages. The exhibition is centered around 60 or so paintings and sculptures from the TAISEI collection. It introduces the achievements of the Le Corbusier as an artist and also features pieces by other artists of the same period, such as Picasso and Léger.

Environmental Preservation Academics and CultureDo Do

● Participated in activities to create local green areasTAISEI participates in the Tokyo Greenship Action initiative run by the Bureau of Environment to preserve the remaining local green areas in Tokyo through cooperation with local environmental groups, NPOs, and businesses. A total of 71 people participated from among employees and their family members in activities carried out on July 14 and October 20. In addition, an environmental volunteer workshop was held on April 26 for new employees, with 34 people participating.

● Supported the Animal-pathway and Wildlife AssociationA total of 52 people from among employees and their family members participated* in volunteer activities to make nest boxes for dormice in an effort to support the Animal-pathway and Wildlife Association in its aim to protect the Japanese dormouse, a tiny tree mammal that lives in the forests.

● GALERIE TAISEI activitiesGALERIE TAISEI (Yokohama) celebrates the achievements of Le Corbusier (1887-1965), one of the most prominent architects of the 20th century. For fiscal 2012, an exhibition on “Le Corbusier and World Heritage Residential Architecture” was opened in June.

Making nest boxes for dormice

● Cooperated with the Gratitude-to Borneo Projectà Making donations through vending machines with a

donation functionThrough vending machines installed at branches and construction sites, TAISEI supports a project to protect wildlife in Borneo that is being carried out by The NPO Borneo Conservation Trust (BCT) Japan with the help of Gen Bando, director of the Asahiyama Zoo. A total of around 3.5 million yen was donated in 2012.

à Lecture meeting on building wildlife rescue centersOn February 15, 2013, TAISEI assisted in a lecture meeting at the head office by Gen Bando, Director of the Asahikawa City Asahiyama Zoo on the Gratitude-to Borneo Project promoted by the NPO BCT Japan. TAISEI provided expertise on rescue center building construction for the project.

● Expansion of the Goya de Eco projectThe TAISEI Association of Subcontractors for Health, Safety, and the Environment implemented the Goya de eco project at construction sites nationwide as one measure to prevent global warming.

* KPIs P39

The exhibition (Photo: Masaaki Aihara)

● Cooperation with private company training of teachersTAISEI cooperates with a private business training program for teachers by the Japan Institute for Social and Economic Affairs. In fiscal 2012, tours were given of various TAISEI facilities for 3 days from August 1 to teachers from schools in Machida, Tokyo, and dialogues were held between the teachers and employees to exchange ideas and opinions. The program is held each year with the aim of providing teachers with experience that can be used in the classroom.

● Held a special lecture at Yokohama National University (YNU)The Technology Center sends an instructor to YNU every year. A lecture is given 12 times a year for 3rd year students and higher in the College of Engineering Science on the subject of “The Latest Trends and Social Contribution in Construction Technology.”

● Examples of other activitiesTAISEI provides annual financial assistance to the Okura Cultural Foundation, which runs the Okura Museum of Art (Japan’s first private art museum).

Okura Museum of Art

Still life (1953)


Human Rights and Labor Practices

(Overall Principles of Conduct)Basic Conceptual Approaches

TAISEI aims to create an open corporate culture that advocates respect for basic human rights and diversity. It is our basic policy that we will not tolerate any form of discrimination on the basis of race, religion, gender, nationality, social status, physical condition or other grounds and that we comply with the laws and regulations of local communities and respect local cultures and customs in our overseas operations.

(Overall Management Perspective)Mid-Term Business Plan and

Business Issues


(1) Strengthen human resources and promote diversity(2) Create a system that maximizes employee potential



● Respect for human rights ● Human rights awareness raising activities

● Rate of attendance in human rights training P39

● Creating a pleasant work environment

● Promotion of diversity● Support for work-life balance

● Number of participants in education and training for female leaders / Number of female managers / Number of female executives / Physically and mentally challenged employment rate / Number of re-employed individuals● Number of employees taking childcare leave● Rate of paid leave utilization● Number of former employees registered with the Job-Return system

P39 to

P40

● Support for employees’ career development

● Promotion of personnel training ● Training hours per employee● Number of trainees at overseas construction sites● Number of trainees at overseas research institutes, etc.

P40

* KPI(s): Level of achievement (Check) of Key Performance Indicator(s) and fi scal 2012 improvements (Act) are described on page 39-40.

Plan Do

Plan

Social Data

Respect for Human Rights Plan

RespectforhumanrightsanddiversityTAISEI respects the Universal Declaration of Human Rights and the 8 Fundamental Conventions by the ILO, and has articulated in the TAISEI Group Action Guidelines its commitment to respecting basic human rights and diversity. We have indicated in our policy that we will reject discriminatory treatment and will respect local cultures and customs outside Japan and have shown this policy to all employees. We also prohibit child labor, forced labor, and discrimination in respect to employment and occupation, and we guarantee freedom of association and the right to collective bargaining.

PromotionsystemforhumanrightsawarenessTAISEI established the TAISEI Human Rights Awareness Committee in 1984 to support the character formation of personnel and the development of employees with high awareness of human rights. This committee, chaired by the executive in charge of human resources with the general manager of the personnel department as the vice-chair, annually formulates basic policy and action plans and reports the results of the previous year.

We also assign a member of the committee to each division in the head offi ce and every branch, in order to create a promotion and implementation system that spreads human rights awareness raising and education throughout the company.

HumanrightsawarenessraisingactivitiesUnder the slogan “Aiming at a friendly and supportive society in which all people lead vibrant lives,” the TAISEI Human Rights Awareness Committee attempts to disseminate awareness of respect for human rights to all employees.

➊Promoting human rights educationTAISEI carries out human rights training as an integral part of its company-wide basic education scheme provided to all employees in group training sessions designed for each organizational level or division. The basic position in our human rights training* is to respect every employee’s independence, encouraging them to think, learn, and act on their own initiative rather than merely instructing them to memorize what is taught. We also held several lectures and workshops with outside instructors for Human Rights Awareness Committee members nationwide.

* KPIs P39

➋PublishingofahumanrightshandbookTAISEI publishes a Human Rights Handbook every year as supplementary material for its training. We also solicited human rights slogans and essays from throughout the Company in connection with Human Rights Week in December.

➌Establishment of an internal hotlineTAISEI has established an internal hotline to provide advice and resolve problems regarding human rights, and sexual and power harassment at an early stage. Moreover, another hotline has been set up to report violations. Through this system, we can investigate the facts and make efforts to prevent similar violations, including requesting related divisions to take corrective action where necessary, without infringing the whistleblower’s rights.

➍HumanrightsinthesupplychainIn April, TAISEI established a Procurement Policy that stipulates a commitment to human rights, in order to promote consideration for human rights throughout the supply chain.

Do

Do

Do


PromotionofdiversityRecognizing that it is important to provide a place where diverse personnel can work energetically in order to vitalize our Company, we are putting effort into creating workplace environments in which diverse employees can maximize their potential.

➊Encouragingfemaleemployeestoplayanactive role in operations

TAISEI has been increasing recruitment of women, and in recent years women have come to account for about 20% of its employment of new graduates.

We are also putting effort into expanding the range of work open to women and conduct female leader development training. The number of female employees in construction projects and sales divisions, typically male-dominated areas, is increasing, and we now also have female offi cers*. * KPIs P39

Supportforwork-lifebalanceTAISEI is committed to creating an environment where all employees can work energetically with satisfaction, by accepting diversity, and balancing and enhancing work and personal life.

➊Programstosupportbalancebetweenworkand nursing/childcare

TAISEI offers various programs to support different work styles. In addition to introducing programs, we also offer seminars and supply information to encourage employees to start preparing early for nursing care and to review their working styles in light of the aging of the population. We also hold meetings for employees on childcare leave* to ensure a smooth return to work. As a result, awareness of balance between work style and nursing/childcare has improved, and the usage rate of each system is increasing.

* KPIs P40

Main work-life balance support programs•Nursingcare leave•Familycareleaveprogram•Spousematernityleave•Fertilitytreatmentleaveprogram•Childcareleaveprogram•Nursingleave•Relocationprogram(makesitpossibletorelocateawayfrom

where one was hired)•Short-hoursprograms(fourtypes)•Job-returnsystem(forformeremployeeswhohadtoleaveout

of necessity to return to work)•Programtomoveworkinghoursupordown

➋PromotionofleaveandshorteningofworkhoursTo encourage employees to take annual paid holidays, TAISEI introduced a new paid holiday system that includes half-day and hourly paid time-off. We also offer other holiday systems that include refresher holidays, milestone holidays, and volunteer days off for social contribution activities.

Furthermore, to reduce total working hours, we designate two months of shortened working hours per year, and every Wednesday as a no-overtime day throughout TAISEI. We also conduct time management training for managers, using case studies of efforts to reduce working hours, to enhance management capabilities.

➌Promotion of mental health careTAISEI strives to reduce the mental, emotional and physical stress of employees and their families through the introduction of an EAP.

Creating a Great Place to Work Plan

Do Do

VOICEI play an active role as a structural designer.

• Yumi Suzuki, Group Manager,Seismic Engineering Group, Design Division

I am an expert in seismic retrofi tting and base isolation retrofi tting. I make efforts to increase the value of old buildings and make it possible to keep using them for a long time.

➋Opportunitiesandsupportforthephysicallyandmentallychallenged

TAISEI is committed to employment promotion* aimed at creating a society in which the physically and mentally challenged can play active roles. We also conduct training for skills development and provide information to encourage understanding among other employees. * KPIs P39

➌Promotingemploymentofmiddle-agedandolderpeople and recruitment of foreign personnel

We have prepared a re-employment system* to create a workplace that allows employees who are experienced and skilled to work for TAISEI again after their mandatory retirement. Moreover, we have expanded our re-employed personnel systems, including the introduction of a meister system (in the architectural fi eld) and an education support system (in the civil engineering fi eld) to create an environment where veteran men and women with know-how and advanced technical skills can work with satisfaction even after mandatory retirement and hand down their skills and knowledge gained through long experience to the next generation.

Additionally, we actively recruit foreign personnel, including through recruitment seminars for international students, in an effort to secure diverse human resources.

* KPIs P39

➍DialoguewiththeemployeeunionTAISEI conducts questionnaire surveys and holds various dialogues between management and labor every year to facilitate smooth business operations.

TOPICSKurumin Mark acquired for third time

Following on from 2007 and 2009, in 2012 TAISEI once again received the Kurumin Mark from the Ministry of Health, Labour and Welfare in recognition of its efforts and results in supporting childcare.


Support for Employees’ Career Development Plan

Promotion of human resources developmentWe plan and implement many kinds of training for employees in order to foster autonomous independent human resources with specialized skills that embody the TAISEI Spirit of “Commitment to Openness,” “Creation of Value,” and “Evolution of Traditions.” We also support the acquisition of qualifi cations.

➊TrainingsystemWe offer a variety of integrated training* for employees after entering TAISEI in order to develop autonomous independent human resources with specialized skills, originality, and creativity.

* KPIs P40

➌Development of global human resourcesTAISEI has prepared a series of professional education programs that start with new recruits and then continue from an employee’s 3rd through 12th year in the Company.

● Training outside the CompanyWe send employees to universities, design offi ces, research institutes, and other places in and outside Japan to acquire knowledge and skills they cannot obtain in the Company. As of April 1, 2013, 11 employees were trainees outside the Company.

● Training before an overseas assignmentWe provide pre-departure training to employees who are scheduled to go on an overseas assignment. These employees learn basic practical knowledge such as an overview of the host country, contract management related to overseas construction, and crisis management, as well as mental preparation for being an expatriate.

● Training at overseas construction sitesWe provide training at overseas construction sites for six months to facilitate the acquisition of negotiating abilities, understanding of different cultures, and language skills through overseas work experience, in order to develop project managers who can operate successfully overseas.About 140 people have participated in this overseas construction site training* since it started in fi scal 2002. In fi scal 2012, 16 employees were sent to nine countries including Turkey, Vietnam, and Sri Lanka.

* KPIs P40

New recruit ~ early 30s Early 30s ~ mid 40s Mid 40s ~ Retirement

Training for new recruits

OJT and annual young persons training

Overseas training

Divisional training (sponsored by every division branch)

Self-development and company support for language and qualification acquisition

Compliance training, human rights training

Step-up training for managerial positions

Management training for employees promoted to managers

High-level executive training

Social Data

Do

➋Support for qualifi cation acquisitionWe support employees throughout the Company in their endeavors to acquire qualifi cations, in order to develop engineers and managers with specialist knowledge.

Example of qualifi cation acquisition

Construction works Civil engineering works

●First-class qualifi ed architect●First-class building operation and management engineer●First-class plumbing work operation and management engineer

●Professional engineer●First-class civil engineering works execution managing engineer●Concrete engineer and chief engineer

Design (qualifi ed) International

●First-class architect●First-class architect (structural design)●First-class architect (facility design)

●Licensed architect●Professional engineer●Project management professional●APEC architect / engineer

Urban Development Engineering

●ARES certifi ed master●Redevelopment planner●Professional engineer

●Professional engineer●First-class building operation and management engineer●First-class electrical work operation and management engineer

Business Administrative

●Construction accountant ●Registered real-estate broker

■ : Countries to which employees have been sent for construction site training since fi scal 2002


Head office

Central Safety Committee

Accident analysis

Prevention of reoccurrence

Accident analysis

Prevention of reoccurrence

Accidentresponse

Branch Safety Committee

President’s Health andSafety Policy

Construction Site Manager’s Management Policy

Branches

Health andSafety Management policy

Branch Health and SafetyManagement Plan

Construction sites

Construction Healthand Safety Plan

(Warning)

(Guidance) (Guidance)

(Warning)

· Head office plan · Branch action plan

Implementation and operation Implementation and operation Implementation and operation

Internal audits/guidance Construction site patrols On-site inspections/remediation

Records/storage Records/storage

System review

Records/storage

Spec

ific

caus

es o

f dan

ger a

nd h

arm

and

spec

ific

item

s to

be

addr

esse

dAc

ciden

t inv

estig

atio

n an

dan

alytic

al in

form

atio

n

· Targets· Action priorities· Management priorities, other

· Health and Safety Management Policy

· Health and Safety Management Plan

· Emergency Response Plan· Basic Construction Work Plan

· Branch targets· Action priorities

Acci

dent

in

form

atio

n d

atab

ase

Thorough Occupational Health and Safety Management & Cooperation with the TAISEI Association of Subcontractors for Health, Safety, and the Environment

Labor Practices


TAISEI’s basic concept on our Health and Safety Policy is that all work-related accidents are preventable. Safety must be our top priority as a member of the construction industry. To this end, we call for a safety-fi rst posture in the workplace, endeavoring to provide a safe, anxiety-free working environment.

(Overall Management Perspective) Mid-Term Business Plan and Business Issues

• Development/improvement of robust business foundations Establishment of safety-fi rst posture

Main Issues and Objectives(FY2012) Main Initiative Items (FY2012)

Main KPIs* (Key Performance Indicators) Pages● Thorough occupational health and safety management & cooperation with the TAISEI Association of Subcontractors for Health, Safety, and the Environment


● Number of fatal accidents and frequency rate

P41


Plan Do

Plan

Plan

ImprovingsafetyandhealththroughtheTAISEIOHSMSIn line with our safety-fi rst attitude, we have operated the TAISEI Occupational Health and Safety Management System (TAISEI OHSMS) company-wide since 2001, in order to continuously increase our level of health and safety management with the aim of eliminating accidents and disasters and preventing disasters to third parties.

The TAISEI OHSMS is based on health and safety management methods and knowhow we have developed over many years. On top of this system, we steadily go through the P-D-C-A (plan, do, check, act) cycle in an attempt to prevent accidents and disasters.

Specifi cally, in line with the Health and Safety Policy laid out by the president, we formulate a Health and Safety Management Policy that contains annual priority items to be addressed. Branches and construction sites prepare and implement health and safety management plans based on this Policy. Patrols are conducted to verify that the items in the Health and Safety Management Policy have been properly implemented. By analyzing the results of audits conducted by the head offi ce’s Safety Administration Department and the causes and background to disasters that have occurred at construction sites, we continuously implement measures adapted to the trends in disasters in an effort to prevent them.

Do ● Construction site patrols by the presidentAiming to eliminate accidents and disasters, top management conducts safety patrols at construction sites. This helps to convey the strong intention of the top management to ensure safety among all employees and construction site workers.

● Supporting safety education at specialty construction operatorsIn cooperation with the TAISEI Association of Subcontractors for Health, Safety, and the Environment, which consists of specialty construction fi rms throughout Japan, TAISEI aims to eliminate accidents and disasters as well as protect the environment. Association members participate in health and safety management conferences held by TAISEI and make use of the Company’s publications and collections of accident examples as education and guidance tools for their own health and safety management systems. In this way, TAISEI helps to prevent accidents and disasters at subcontractors as well.

● Safety recordTAISEI’s safety record is following a downward trend thanks to thorough occupational health and safety management. In 2012, the frequency rate of accidents was 0.81*. * KPIs P41

The president on patrol

TOPICSEarned Outstanding Performance Award from the Ministry of Health, Labour and WelfareThe following construction site earned the FY2012 Ministry of Health, Labour and Welfare Award in the category of Outstanding Performance by a Workplace, Group or Individual in Health and Safety:• Shonan C-X A-1 District SC New Construction Project


Administrative structure

Implementation Structure

Head Office Business Administration Div.Secretariat

Head Office

CP CommitteePresident

CP General Manager(Business Administration Div.

General Manager)

Division CP Manager(Corporate General Manager, Division General Manager)

CP Implementers(All Department General Managers)

All Executives and Employees

Division CP Promoter(General Manager In Charge of Administration)

CP General Promoter(General Affairs Dept.

General Manager)CP Promotion Section

Division CP Manager(Business Division General Manager, Branch Manager)

CP Implementers(All Department General Managers)

All Executives and Employees

Division CP Promoter(Administrative Manager)

Business Divisions and Branches

Fair Business Practice

Governance Data


TAISEI recognizes corporate ethics and compliance as the fundamentals of our business operations. We not only make this clear in our Action Guidelines to TAISEI personnel and the TAISEI Group as a whole, but also engage in a variety of measures to encourage self control and self-awareness of each and every executive and employee on this matter.

(Overall Management Perspective) Mid-Term Business

Plan and Business Issues

• Development/improvement of robust business foundations Strengthening of compliance and ICT governance


Main KPIs (Key Performance Indicators)* Pages● Promoting compliance ● Ongoing implementation of

compliance training ● Rate of participation in compliance training (Group training)● Number of branches conducting compliance training for subcontractors

P41

● Supply Chain Management ● Promoting CSR procurement (to be set in FY2013) —● Protection management and use of intellectual property

● Intellectual property risk management initiatives

● Number of training sessions on intellectual property rights P41

● Information security measures ● Protection and management of information● Increasing awareness of information security

● Number of major information security breaches● Number of company-wide education programs regarding information security P41


Plan Do

Plan

Promoting Compliance Plan

Establishment of a Compliance Committee andpromotionsystemTAISEI has established a Compliance Committee composed of seven members (two outside experts and fi ve company directors) chaired by an outside expert as an advisory body for the president. The committee, which meets several times per year as needed, compiles reports on specifi c initiatives pertaining to compliance promotion. It also exchanges opinions on the implementation of compliance training and on training plans, takes opinions and suggestions from outside experts, and attempts to enforce the observance of laws and regulations.

We have also developed an internal system for promoting and implementing company-wide compliance awareness-raising and education by assigning managers, promoters, and implementers in each division with the president at the top.

* CP: Compliance* Compliance Promotion Section: Serves as the secretariat for the Compliance

Committee and promotes dissemination and establishment of compliance awareness among executives and employees.

* Compliance implementer: All department general managers are designated as compliance implementers; they implement awareness-raising and education on compliance for all executives and employees in their department.

Ongoing implementation of compliance trainingTAISEI uses group training and compliance news in training and awareness-raising, in order to promote the dissemination and establishment of compliance awareness. Group trainings* are conducted in small-group discussion format to inform all employees of the laws and regulations related to their actual works, based on topics related to day-to-day work (conducted three times in fi scal 2012).

* KPIs P41

Additionally, we publish columns that take up a wide variety of familiar and topical compliance-related issues as a monthly compliance communication on our intranet in an effort to raise the awareness of executives and employees.

We also actively provide training materials to TAISEI Group companies, ensuring that the TAISEI Group functions as an integrated entity in promoting compliance.

Compliance training for subcontractorsTAISEI conducts annual compliance training* for the proprietors of subcontractors at TAISEI’s Occupational Health and Safety Convention. * KPIs P41

Do

Do


Under the TAISEI Group Ideal, “create a vibrant environment for all members of society,” we are committed to carrying out our procurement activities in accordance with this Procurement Policy in order to create safe and attractive spaces, as well as work and living environments of exceptional value, with the aim of providing products and services that are in harmony with nature.

1. Compliance with Laws, Regulations and Social Norms

2. Fair Business Dealings 3. Respect for Human Rights 4. Promotion of Safety and Hygiene 5. Commitment to Environmental Conservation 6. Ensuring and Improving Safety and Quality 7. Information Disclosure 8. Commitment to Information Security 9. Activities Contributing to Society 10. Business Continuity in Times of Disaster 11. Promotion of CSR (Corporate Social Responsibility)

Procurement

Procurement Policy (excerpt)

Corporate ethics helplineTAISEI has developed a Corporate Ethics Helpline as an internal whistleblowing system to report violations of laws and regulations and the TAISEI Group Action Guidelines. It also established an outside hotline in an attorney’s offi ce.

We inform executives and employees of the hotlines through whistleblowing and consultation menu items on the company intranet and posters. We have also spread the word by posting handling methods and other information on the TAISEI website for whistleblowing by employees of subcontractors who are in a direct transaction relationship with TAISEI. In addition, we have established a Group Helpline for the 20 group companies in Japan as part of our compliance system.

Do DoEstablishingasystemforensuringappropriateness of bidding practices and determining the status of observanceBranch managers check to make sure bidding practices are conducted appropriately, and we operate an internal system for preparing and storing those confi rmation records.

Also, every year the Legal Department conducts a study to determine the appropriateness of the bidding practices of all branches and their status of observance of the Construction Contractors Law and the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors.

Requiring reporting of serious legal violationsTAISEI requires executives and employees to report to the company if they know that “they themselves or another offi cer or employee has or is trying to commit a legal violation that could cause serious detriment to the company (e.g., temporarily barred from public bidding, suspension of business).”

Do

Supply Chain Management Plan

EstablishmentofaprocurementpolicyTAISEI established a Procurement Policy in April 2013 with the aim of fulfi lling its CSR throughout the supply chain, in order to help create a sustainable society. We developed Procurement Guidelines based on this policy and will pursue CSR procurement through the establishment of good partnerships with suppliers.

Do InternalStudySessiononCSRProcurementTAISEI held a CSR procurement study session for about 50 CSR personnel from each division and six main group companies, in order to give them an understanding of the signifi cance and purpose of TAISEI’s efforts to address CSR issues together with suppliers.

The participants deepened their understanding of the fact that, within action toward the supply chain required by ISO 26000, it is important for TAISEI to work on CSR with all relevant suppliers, not just by itself, in order to help achieve sustainable social development.

Promoting CSR procurementIn March 2013, TAISEI launched a CSR Procurement Council composed of the Safety Administration Division, Building Construction Division, Civil Engineering Division, Procurement Division, Corporate Planning Department, and the Corporate Communication Department’s CSR Promotion Offi ce, in order to disseminate CSR initiatives in the supply chain. The council will develop Procurement Guidelines and promote CSR activities with suppliers.

Do

Do


Governance Data

Protection Management and Use of Intellectual Property

Information Security Measures

Plan

Plan

IntellectualpropertyriskmanagementinitiativesDisputes over intellectual property involving the infringement of patents and other rights are increasing in the construction industry. It is therefore necessary to enhance intellectual property risk management, in the areas such as dispute management and prevention of technology outfl ow.

Based on our Intellectual Property Guidelines, TAISEI promotes corporate management with a focus on intellectual property, and we strategically manage and utilize the full range of intellectual property, including copyright and construction business expertise, in addition to patents.

From the perspective of trademark strategy, we appropriately manage product brands used in the names of individual technologies and services, increasing recognition and credibility for customers, society, shareholders, and other stakeholders, in an attempt to increase our corporate brand value.

EstablishmentofTaisei-SIRTTAISEI established Taisei-SIRT, which is an in-house Computer Security Incident Response Team (CSIRT), in order to reinforce its preventive measures against damage from electronic information security incidents and its emergency response system. On March 1, TAISEI joined the Nippon CSIRT Association.

Taisei-SIRT shares information and cooperates with other in-house CSIRT in Japan to conduct activities to prevent damage from electronic information security incidents and to respond quickly to stop the spread of damage if an incident occurs.

TAISEI will continue striving to reinforce its electronic information security response system, in order to provide security and safety that live up to the trust of its customers.

● BackgroundTAISEI has always taken a variety of security measures and undertaken awareness-raising activities to protect customers’ information assets, corporate networks, and executives and employees from computer crime and cyber attacks in today’s highly information-based society.

Nevertheless, with increasingly more advanced cyber attacks and complicated information security incidents occurring frequently, recently it has become diffi cult to completely defend against these incidents

Do

Do

In fi scal 2012, we provided an intellectual property course* for personnel from technology sections and branch site administration departments and made every effort to enhance the level of intellectual property capabilities throughout the organization, with views toward increasing awareness of intellectual property and toward human resources development. We also conducted activities to uncover inventions and discover and survey the infringement of other companies’ patented technologies at main construction site offi ces. * KPIs P41

FutureactionsWe will continue awareness-raising activities to ensure that all employees possess a fundamental awareness of intellectual property and to prevent the infringement of other companies’ intellectual property, including conducting trainings for our Marketing & Sales and Business Administration Divisions aimed at the acquisition of fundamental knowledge of intellectual property and providing e-learning programs and distributing information concerning intellectual property risks to all employees.

with conventional measures alone. Accordingly, it is more important than ever to develop an emergency response system in case of information security incidents to prevent the spread of damage from incidents and restore services as quickly as possible.

Moreover, requests from the government and corporate clients to reinforce information security systems have been increasing, which made the strengthening of our electronic information security responses system a pressing task.

● Strengthening our electronic information security responses system

Improvement of the level of company-wide electronic information security and the establishment of a specialized organization that can take emergency responses in the event of an electronic information security incident further strengthens the electronic information security response system, including the determent of incidents and rapid responses during an incident.

Taisei-SIRT is composed of engineers from Taisei Corporation and its group company Taisei Information System Co., Ltd. The functions provided, incident response process, and organization were developed and standardized with advice from Japan Computer Emergency Response Team Coordination Center (JPCERT/CC) and members of the Nippon CSIRT Association.


Information protection and managementUnder the slogan “Safety First Applies to ICT Too!” we are aiming, together with business partners such as subcontractors, to achieve a zero level of information security breaches*. * KPIs P41

● Thorough measures to prevent information leaksOut of the many IT devices within the company, we regard computers, USB memory sticks, and external hard drives as devices with an especially high risk of information leaks. Accordingly, we have reinforced management rules and taken technical countermeasures.

We have installed encryption software on computers that encrypts the entire internal hard disk. We prohibit the use of personal USB memory sticks and external hard drives at work and enforce the use of only products that are automatically encrypted.

Further, in order to reinforce management, we have appointed people in charge of the management of different devices and periodically take full company-wide inventory counts to confirm the whereabouts of all devices every year.

● Initiatives aimed at the entire construction industryTogether with a security vendor, TAISEI has jointly developed a computer security diagnostic website that it has made freely available on the Internet, where partner companies and anyone can use the site to easily determine whether they have antivirus software running and whether they have file-sharing software installed.

We also operate an Information Management System Ledger using a website shared by construction sites (Construction Site Net), in order to ensure thorough management of customer information by partner companies.

Nowadays it is not possible for a single company to completely handle information security countermeasures alone. By providing these systems to and jointly using them with companies that we do business with and other companies in the industry, we aim to increase the level of information security not only at TAISEI but also throughout the construction industry.

Do DoIncreasing awareness of information securityIncreasing awareness of information security among executives and employees is an important information security measure, and we think that ongoing education for all executives and employees is therefore essential. We regularly provide executives and employees with education, including knowledge related to information security and clear specification of internal regulations and rules, with the aim of increasing awareness of information security among all executives and employees.

● Information security pocketbookWe have put the rules that all executives and employees should observe at the bare minimum together into an Information Security Pocketbook. We use this guidebook to continuously provide education to all executives and employees and group training to new hires and mid-career workers.

We have also created a pocketbook specifically for subcontractors and other partner companies. By explaining the content of this pocket book at orientations for persons entering construction sites, meetings of disaster prevention councils, and other venues, we are able to also provide education and guidance to partner companies.

● Information security websiteWe have created a website on our company intranet that brings together content related to information security. It includes internal regulations and rules pertaining to information security, past notifications and education content as well as techniques for preventing information leaks.

We strive to increase the awareness of executives and employees by making this website available so that they can acquire information security knowledge on a daily basis.

● Education for all employees through e-learning programs

We continuously conduct e-learning programs* on information security several times per year, in order to ensure all executives and employees are informed about information security. We make every effort to prevent information security breaches by providing timely education focusing on the content of common information security breaches and how to handle them and other topics related to information security.

Moreover, we also use e-learning programs to explain changes in rules relating to information security and newly introduced systems (tools), and this has had a big effect on steadily informing executives and employees of important content. * KPIs P41


Corporate Governance and Internal Controls

Organizational Governance

Governance Data



In order to earn and maintain the trust of society and also to realize sustainable corporate development, our fundamental corporate governance policy relies on swift, appropriate, fair, and transparent decision-making by management.





Main Issuesand Objectives

(FY2012)Main Initiative Items (FY2012)


● Corporate governance and internal controls

● Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies

● Rate of TAISEI Group Ideal e-learning implementation P42

● Risk management ● BCP initiatives ● Rate of participation in major disaster response training P42

● Information disclosure and dialogue with stakeholders

● Holding of stakeholder dialogues, etc. ● Number of dialogues, etc. P42


Plan Do

Plan

Plan

General meeting of shareholders

Group companies

Election

Audit

Support

Cooperation

Internal audits

Election Election

Election/Supervision

Reporting and advice

Committees of theBoard of Directors

Members of the Board/Board of Directors

Aud

itin

gD

epar

tmen

t

President and ChiefExecutive Officer

OperationsCommittee

SpecialCommittee

Corporate Auditors/Board of Auditors

Auditor’s SecretarialDepartment

Accountingauditors

Division/Branches

(Operations)

Division/Branches

(Operations)

Prior consultationand reporting

Cooperation Cooperation

Division/Branches

(Operations)

Corporategovernancesystemandappropriate auditingTAISEI has adopted an executive offi cer system, enabling the Board of Directors (including outside directors) to focus on decision-making and supervision. TAISEI’s Board of Directors also has various committees (such as the Human Resources Committee, the Finance Committee, and the Group Companies Committee). The Board of Auditors (including external auditors) serves to ensure the independence of audits and strengthen the TAISEI Group audit system as a whole. The Board of Auditors conducts internal audits in close cooperation with the company’s accounting auditors and the internal audit organization.

InternalcontrolsystemIn order to ensure the appropriate and effective implementation of our operations and reliability of our fi nancial reporting as a Group, our Board of Directors has formulated the Basic Policy on the Establishment of a System to Ensure Proper Operations and has implemented a variety of related measures.

Do DoDissemination and establishment of the TAISEI Group Ideal Structure of Values and PoliciesThe TAISEI Group reorganized the TAISEI Group Ideal Structure of Values and Policies in 2010, and we have been conducting a variety of measures geared toward its dissemination and establishment.

Following on from the previous year, we conducted an e-learning program* on the TAISEI Group Ideal Structure of Values and Policies in fi scal 2012. We also created “the Group Action Guideline File” as a tool to assist employees in establishing connections between the TAISEI Group Ideal Structure of Values and Policies and their day-to-day individual work duties, and published it on our intranet.

We also conducted a questionnaire on employees to survey the degree of dissemination of the TAISEI Group Ideal Structure of Values and Policies among employees.

* KPIs P42

Do

Corporate governance system


¢ CustomersWe conduct customer satisfaction surveys to accurately ascertain customer requests.¢ ShareholdersWe encourage communication through general meetings of shareholders and the publication of shareholder newsletters.¢ Shareholders and investorsWe hold fi nancial briefi ngs (twice a year) at which the president explains our performance and business strategies and engages in an exchange of opinions, which we feed back to the management team.¢ SuppliersWe established a procurement policy and aim to help create a sustainable society together with suppliers.¢ EmployeesWe conduct employee satisfaction surveys to survey the company environment for employees.¢ Local communitiesWe hold various tours to give local residents an understanding of our business activities.¢ NPOs/NGOsWe carry out activities to preserve green areas and the environment together with the Tokyo Metropolitan Government, local environmental organizations, and NPOs.

System for the promotion of company-wide risk management

Examples of dialogues * KPIs P42

President

CRO Section Risk Management Committee

Risk Management Council

EmergencyHeadquarters

Emergency situation Normal situation

CRO*Company-wide risk

management systemEmergency response

system

Review of the risk factors/classification

Incorporation of recurrence prevention measures into risk management

*CRO: Chief Risk Management Officer

Head office Risk Management

PromotionCommittee

Branches andbusiness divisions Risk Management

Promotion Committee

Risk Management

Information Disclosure And Dialogue With Stakeholders

Plan

Plan

Promotingcompany-wideriskmanagementTo ensure appropriate management of the risks associated with our business activities, TAISEI established and operates a company-wide risk management system by identifying the risks involved in our business activities, classifying those risks by their degree of severity as “company-wide risks,” “risks under division control,” etc., and clarifying those responsible for managing said risks.

In the case of “company-wide risks” that could have a serious effect on business management, we practice effective risk management throughout the company by centralizing information in the CRO Secretariat and sharing information with the Risk Management Committee and Risk Management Council.

In addition, every year we follow the PDCA cycle, ensuring that our risk management remains constantly effective.

DialogueswithstakeholdersTAISEI holds various dialogues with the purpose of reconsidering our business activities through exchanges of information* and communication with a wide range of stakeholders. We have also established an information disclosure policy and conduct our business activities in accordance with that basic policy.

Do

Do

Do

Do

BusinessContinuityPlan(BCP)To fulfi ll our social responsibilities as a general constructor that provides infrastructure for socio-economic activities, we have established action guidelines and rules concerning business continuity planning (BCP*) in anticipation of disasters such as an earthquake.

TAISEI’s disaster prevention and business continuity measures have been highly evaluated. The Kanto Regional Development Bureau and the Kinki Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism have approved TAISEI’s Basic Business Continuity Capabilities during a Disaster as a Construction Company and the Development Bank of Japan (DBJ) has given TAISEI the highest rank in its disaster preparedness rating (now known as the DBJ BCM rating).

In addition to preparing for natural disasters such as earthquakes, we have also adopted and put into action guidelines concerning countermeasures to new strains of infl uenza, including creating a website on our intranet about countermeasures to new strains of infl uenza.

MajordisasterresponsetraininginFiscal2012

TAISEI conducted training drills* based on the scenario of damage from an earthquake directly beneath Tokyo, as revised by the Tokyo Metropolitan Government ahead of the national government. Through these drills, headquarters, branch offi ces nationwide, and TAISEI Group companies increased the effectiveness of their BCP by strengthening the company-wide support and acceptance system in which they cooperate. * KPIs P42

Environmental meetingTAISEI held an Environmental Meeting for investors at the Taisei Technology Center in Yokohama, in order to give them an understanding of our business model and the company’s latest technology concerning the environment. A lively exchange of opinions took place over the issue of energy conservation.

EmployeesatisfactionsurveyTAISEI conducted an employee satisfaction survey to investigate whether it has a company environment in which employees can work enthusiastically.

The results of the survey, which included eight separate categories (management direction, immediate supervisor, one’s work, communication, ability improvement, workplace environment, human resources system, and overall assessment), were 82.4% satisfi ed, 4.5% unsatisfi ed, and 13.1% neither satisfi ed nor unsatisfi ed.

Do


Environmental KPIs

TAISEI KPIs

KPIs

Status of achievement: �Achieved rPartially achieved ×Not achieved

Contributiontotherealizationofalow-carbonsociety

Rate of reduction in CO2 emissions for building operation and construction stages compared to fiscal 1990 Definition

Main KPIs FY2011 results FY2012 targets / results Level of achievement FY2013 targets

Projected CO2 emissions reduction rate during building use 37.5% 30% / 43.6% � 30%

CO2 emissions reduction rate during construction

Civil engineering 47.9% 35% / 55.1% � 35%

Building construction 53.6% 45% / 56.7% � 45%

Explanation of results

At the building operation stage, we applied the Eco-sheet CASBEE in design. In addition, at the construction stage, at each construction site we reduced CO2 emissions by means of initiatives including using “eco drive” techniques for construction machinery and reducing the distances over which excavated soil was transported.

Check

Improvements/issues

We are aiming to reduce CO2 emissions by 40% at the building operation stage and by 50% at the construction stage by fiscal 2020.

Act

Proper control of construction wasteDigitalization of manually input manifest data, creation of system for management by network of producers of construction waste, collection and transportation contractors, and waste disposal contractors via a data processing center.Rate of electronic manifest penetration = (number of electronic manifests issued/number of manifests issued) × 100

Definition


Rate of electronic manifest penetration

Civil engineering 73.9% 70% / 79.0% � 70%

Building construction 85.0% 80% / 88.9% � 80%

Explanation of results We achieved our targets in collaboration with each of our branches and construction site offices.

Check

Improvements/issues

Establishment of concrete targets for each branch and construction site office in order to increase the rate of diffusion of electronic manifests by fiscal 2014.

Act

Promote 3R activities/Promote green procurementRate of recycling of construction waste (excluding sludge) = (Amount generated – Amount for final disposal) / Amount generated × 100 / Rate of procurement following Green Procurement Guidelines

Definition


Rate of recycling of construction waste 94.9% 95% / 95.6% r 95%

Rate of green procurement 39.1% 30% / 30.6% � 30%


Our recycling rate in fiscal 2012 was 95.6% in the building construction category (new buildings construction: 89.0%; demolition: 97.9%), 95.7% in the civil engineering category, and 95.6% overall, a figure above our target for the fiscal year. Our rate of green procurement was 30.6% (building construction: 30.0%; civil engineering: 31.7%).

Check

Promotion of use of wide-area certification system, effective use onsite, and separation into saleable resources and other waste, in order to increase our construction waste recycling rate.Realization of increase in green procurement rate through reexamination of products categorized for green procurement.

Improvements/issues

Act

Provideenvironmentally-friendlytechnologies

Amount of media coverage of development of environmentally-friendly technologies and projects (PJ) in which they are applied.Definition


Amount of media coverage of environmental technologies / PJ using these technologies

32 cases 20 cases / 30 cases � 20 cases

Explanation of resultsThe relevant departments conducted their activities with targets for media coverage of the development of environmental technologies and PJ using those technologies.(For related information, see P15-16 and P19)

Check

Collaboration between departments responsible for research and development of CO2-reducing and energy-saving technologies and departments responsible for projects in which the technologies are applied.

Improvements/issues

Act


Consumer Issues KPIsStatus of achievement: �Achieved rPartially achieved ×Not achieved

Development and provision of technologies for resolving social issuesNumber of patent applications and patents granted (registered), and amount of media coverage of the development of new technologies and projects in which those technologies are applied

Definition


Number of patent applications filed and granted 256 cases 250 cases / 297 cases � 250 cases

Number of patents granted 193 cases 200 cases / 224 cases � 200 cases

Amount of media coverage of development of technologies / Projects in which technologies were applied 66 cases 60 cases / 75 cases � 60 cases

Explanation of resultsWe do not compete in terms of the number of patent applications we file, but rather try to apply for patents for useful technologies that we will actually use, with a view toward differentiation with competitors and obtaining useful rights in our business.

Check

We achieved over 80% patent registration rate, greatly exceeding the industry average of around 55%. In the future, we will aim for even higher quality patent applications and the securing of wide-ranging patent rights.

Improvements/issues

Act

EstablishmentandobservanceofqualitymanagementstandardsandproceduresRate of implementation of surveys of customer satisfaction conducted after building handover (civil engineering) and rate of return of customer satisfaction survey questionnaires (buiding construction)

Definition


Customer satisfaction surveysCivil engineering 100% 100% / 100% � 100%

Building construction 80% 100% / 60% r 100%

Explanation of resultsWith regard to civil engineering surveys, 38 CS interviews were conducted with clients. Building construction surveys are still ongoing, and we continue following up with the aim of collecting 100% of questionnaire sheets from each of our branches in the future.

Check

The content of questionnaires will be checked and factors involved in items that received low evaluations will be analyzed and countermeasures reflected in construction evaluation meetings, etc. We will also aim to increase satisfaction by obtaining understanding through close communication with customers.

Improvements/issues

Act


KPIs

Community Involvement and Development KPIs

Contributions to local communities

Number of activities conducted at TAISEI Group offices and construction sites to contribute to the environment and society Definition


Number of activities contributing to society and the environment 779 cases 800 cases / 1,048 cases � 1,000 cases


Environmental management target values, which we call the TAISEI Agenda, have been introduced as a focus of our activities, and we conducted activities to contribute to society in close cooperation with local communities at our offices and construction sites throughout the country. Following on from fiscal 2011, activities related to the Great East Japan Earthquake are included.

Check

We will continue to incorporate action items into the TAISEI Agenda. We will publicize activities that contribute to the environment and society in cooperation with local communities at construction sites and other operational areas in an effort to make them standard practice.

Improvements/issues

Act

Number of employees participating in activities that contribute to the environment and society and activities to aid recovery from the Great East Japan Earthquake, organized by TAISEI to provide support for employees’ volunteer initiatives

Definition

Expandingemployees’volunteeractivities


Number of employees who participanted in volunteer activities 258 people 250 people / 247 people r 150 people

Explanation of resultsA total of 128 employees participated in our annual environmental preservation activities and other voluntary activities, and 119 employees participated in activities following on from the previous year to aid recovery from the Great East Japan Earthquake, for a total of 247 employees.

Check

Because the construction industry is a contract-based industry, depending on the specific period, sometimes employees are unable to take time off. However, employee volunteers try to use their limited time off for the benefit of society. In future, it will be necessary for us to promote the use of the volunteer leave system we established in April 2012. The target for fiscal 2013 was set at 150 employees, since recovery support related to the Great East Japan Earthquake has come to a conclusion.

Improvements/issues

Act


HumanrightsawarenessraisingactivitiesThe ratio of employees who have participated in training concerning human rights (e-learning programs, group training sessions, etc.)

Definition


Rate of attendance in human rights training 100% 100% / 100% � 100%

Explanation of results This year as well, we conducted human rights awareness-raising activities aimed at the importance of fair employment selection and resolution of various human rights problems.

Check

Aiming to enable all of our employees to think, learn, and act on their own initiative, we will continue working at awareness building that leads to sensitivity in addition to imparting accurate knowledge of human rights and promoting the cultivation of awareness.

Improvements/issues

Act

Promotionofdiversity(Creatingagreatplacetoworkforemployeeswithdiverseattributes)


Number of participants in education training for female leaders 26 people 20 people / 26 people � 40 people

Number of female managers – people – people / 30 people — 31 people

Number of female executives – people – people / 133 people — 135 people

Physically and mentally challenged employment rate 1.88% 1.90% / 1.95% � 2.00%

Number of re-employed individuals 676 people 600 people / 582 people � 600 people

Explanation of resultsSeeking to promote diversity, TAISEI is creating workplaces in which a wide range of personnel can thrive. TAISEI promoted the employment of physically challenged individuals as one social contribution toward their self-reliance.

Check

In the future, we will continue to support diverse working styles and create working environments suited to employees with diverse attributes.

Improvements/issues

Act

Number and ratio of employees affected by diversity-related measuresDefinition

Human Rights and Labor Practices KPIs



Supportforwork-lifebalance(1)(Numberofemployeestakingchildraisingleave)

Number of employees using child raising leave systemDefinition


Number of employees taking childcare leave (Male) 2 people 1 person / 1 person � 2 people

Number of employees taking childcare leave (Female) 27 people 20 people / 37 people � 25 people

Number of employees taking leave when their spouse gives birth 70 people 60 people / 76 people � 65 people

Number of employees taking nursing care leave (Male) 30 people 30 people / 36 people � 30 people

Number of employees taking nursing care leave (Female) 85 people 80 people / 82 people � 80 people


TAISEI conducts its own childcare support program, for example by holding nationwide meetings via a Web conferencing system for employees who would like to take childcare leave and providing information via our company intranet. This has produced positive results, with the number of employees making use of childcare-related leave increasing.

Check

In the future, we will continue to publicize the system and to create an environment that encourages taking such leave.Improvements/issues

Act

Supportforwork-lifebalance(2)(Rateofpaidleaveutilization)Rate of employees taking annual paid leave, Refresh leave (special leave that can be taken when reaching certain milestones concerning years of employment), and Milestone leave (special leave able to be taken when a employee at a construction site office is transferred or reaches certain milestones of the construction project)

Definition


Rate of Paid leave utilization 32.6% 35.0% / 34.2% r 35.0%

Rate of Refresh leave utilization 88.9% 85.0% / 88.4% � 85.0%

Rate of Milestone leave utilization 78.2% 75.0% / 74.1% � 75.0%

Explanation of resultsTAISEI works to increase the leave usage rate by having employees eligible for leave consult with their superiors regarding a leave schedule at the start of the year. In fiscal 2012, the paid leave utilization rate exceeded the previous year’s rate by 1.6%.

Check

TAISEI attempts to increase the leave usage rate by instructing personnel in supervisory positions to monitor the leave usage status appropriately, and encouraging employees who have not taken leave to do so.

Improvements/issues

Act

Supportforwork-lifebalance(3)(NumberofformeremployeesregisteredwithJob-Returnsystem)The enrollment of former employees who resigned due to childbirth, childcare, nursing care, or the relocation of a spouse at our Job Return system, which offers the opportunity for ex-employees to return to employment if it suits the company’s needs.

Definition


Number of former employees registered with the Job-Return system 48 people 45 people / 49 people � 45 people

Explanation of results In order to support diverse types of work, TAISEI offers comprehensive guidance regarding the Job Return system, and attempts to increase the number of former employees registered.

Check

We will continue to offer guidance.Improvements/issues

Act

Promoting the fostering of human resourcesNumber of training hours per person for employee training programs conducted by the Head Office and branches, number of employees who have received training at overseas construction sites or subsidiaries, research institutes, etc

Definition


Training hours per employee 40.0 hours 40.0 hours / 42.1 hours � 42.0 hours

Number of trainees at overseas construction sites 26 people 22 people / 16 people � 15 people

Number of trainees at overseas research institutes, etc. 17 people 15 people / 10 people � 10 people

Explanation of resultsThe purpose of training is to foster autonomous personnel with strong specializations and creativity. In fiscal 2012, we changed the program, narrowing the number of destinations and lengthening the training period for each trainee.

Check

We will keep conducting more effective training, to enable us to respond to accelerating globalization. We will also expand our training system, in line with the promotion of diversity initiatives.

Improvements/issues

Act


Labor Practices KPIs

ImprovingthesafetyandhealthlevelthroughTAISEIOHSMSThe frequency rate is the ratio of the number of deaths and injuries caused by industrial accidents per million man-hours worked. It is an indicator that expresses the frequency with which accidents occur.

Definition


Number of fatal accidents 4 cases 0 case / 2 cases × 0 case

Frequency rate 0.58* 1.12 or below / 0.81 � 1.00 or below

Explanation of results 91 accidents occurred that required time off work (including accidents by business proprietors). Of these, 58 required four or more days off work and two were fatal accidents.

Check

We aim to achieve our target through thorough implementation of the 2013 Health and Safety Policy.Improvements/issues

Act

* Calculated for accidents entailing four or more days off work. From 2012, the target is set on the basis of all accidents entailing days off work, irrespective of the number of days.

KPIs


Ongoing implementation of compliance trainingRate of participation in compliance training (group training) conducted for employees, number of branches (domestic) conducting compliance training for subcontractors

Definition


Rate of participation in compliance training (Group training) 100% 100% / 100% � 100%

Number of branches conducting compliance training for subcontractors 12 cases 12 cases / 12 cases � 12 cases


Selecting themes related to day-to-day work, we inform employees of the laws and regulations related to their actual works in a small-group discussion format.Seeking to increase awareness of compliance in all specialist contracting companies, we conduct compliance training for the subcontractors at Occupational Health and Safety Conventions held at our branches.

Check

We continuously conduct compliance training (group training) and training for subcontractors at all of our branches.Improvements/issues

Act

Information protection and managementNumber of major security breaches of electronic information related to TAISEI Group, and number of times company-wide education programs regarding information security have been conducted

Definition


Number of major information security breaches 0 case 0 case / 0 case � 0 case

Number of company-wide education programs regarding information security (group training and e-learning throughout the TAISEI Group)

12 times 10 times / 16 times � 15 times


As a result of the continuous implementation of technological and human measures, we have experienced no major information breaches. We also believe that the practice of conducting company-wide information security education classes has become well established, including at Group companies.

Check

New threats relating to information security are appearing one after the other, and so there is a need keep employees informed of these threats.

Improvements/issues

Act

Intellectualpropertyriskmanagementinitiatives

Number of times training is conducted to increase awareness of support for patent applications and intellectual propertyDefinition


Number of training sessions on intellectual property rights 31 times 30 times / 36 times � 30 times

Explanation of resultsIn addition to conducting intellectual property-related training at the head office and branches, we are working to increase the level of IP awareness throughout the company by conducting a series of activities such as visiting 37 major construction sites.

Check

We will continuously conduct training to increase awareness of intellectual property rights among all employees, not just employees working in Intellectual Property departments, and we will work to foster a culture of invention and strengthen risk management by means of close cooperation between the Intellectual Property Department and other technology-related departments.

Improvements/issues

Act

Fair Business Practice KPIs


Organizational Administration KPIs

Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies

Rate of implementation of e-learning for employeesDefinition


Rate of TAISEI Group Ideal e-learning implementation 90.5% 100% / 97.8% r 100%

Explanation of results Conducted one time in fiscal 2012. Had effect on the dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies.

Check

Seeking further penetration and establishment of the TAISEI Group Ideal Structure of Values and Policies, we will continue conducting e-learning programs in the future, with a target of 100% employee participation.

Improvements/issues

Act

BCP initiativesRate of employee participation in major disaster response training conducted at the head office and branches (including the number of employees participating in training in the use of safety confirmation systems)

Definition


Rate of participation in major disaster response training 99.6% 100% / 100% � 100%


We increased the effectiveness of our BCP by conducting drills focusing on the priority issues of responding to a new damage estimation for an earthquake directly beneath Tokyo, establishing a company-wide support and acceptance system, and establishing a more rapid initial response system.

Check

We will continuously conduct major disaster response training to increase the effectiveness of our BCPs, aiming towards a 100% employee participation rate.

Improvements/issues

Act

Holdingstakeholderdialogues,etc.

Number of times TAISEI conducts dialogues with stakeholders Definition


Number of dialogues, etc. 5 cases 5 cases / 5 cases � 5 cases

Explanation of resultsWe held five exchanges of opinions with various stakeholders, including a private training for teachers, a consumer roundtable, a results briefing, a construction site visit, and an investor environmental meeting.

Check

We will continue to hold dialogues and exchanges of opinion with a variety of stakeholders. Improvements/issues

Act



KPIs

Group Company KPIsStatus of achievement: �Achieved rPartially achieved ×Not achieved

Definition

Taisei Rotec Corporation

ISO 26000 core subject


The ratio of the number of fatalities and injuries caused by industrial accidents per million actual man-hours worked. It is an indicator that expresses the frequency with which accidents entailing four or more days away from work occur.

Main KPIs FY2012 targets / results Level of achievement FY2013 targets

Labor practices

KPIs

Thoroughgoing occupational health and safety management

Frequency rate 0.5 / 0.6 r 0.5

Explanation of resultsEight accidents occurred that required four or more days away from work. This was the second best record in the past five years, but was still below the target.

Check

Definition

Given that many accidents occur when a person is working alone, we will focus on establishing one-man safety practices to raise workers’ safety awareness, and on education that encourages workers to think on their own before acting.

Improvements/issues

Act

Taisei-Yuraku Real Estate Co., Ltd.



Reduction rate for power consumption in offices (scope of aggregation: head office) compared to the base year (fiscal 2010)Number of energy saving improvements suggested to customers in facilities management


Environmental

KPIs

Promote energy conservation

Power consumption reduction rate (offices) 10% / 11% � 11%

Number of facility energy saving improvements suggested to customers

13 cases / 20 cases � 20 cases


We achieved the targets for both the power consumption reduction rate and the number of energy saving improvements suggested, as a result of promoting EMS activities related to ISO 14001 in the head office.17 out of the 20 energy saving improvements suggested were adopted.

We will aim to achieve the target for power consumption on a companywide basis, as we plan to expand the scope of aggregation to the entire company, including branches, by fiscal 2014.

Improvements/issues

Act



The ratio of construction projects using the Computerized Manifest System to all construction projects that generates industrial waste.It is an indicator that measures the accuracy of appropriate management.


Environmental

KPIs

Proper control of construction waste

Rate of electronic manifest penetration — / 12.6% — 15.0%

Explanation of results Currently, it is difficult for industrial waste disposal companies to install the Computerized Manifest System, as many of them are small-sized businesses.

Check

Definition

We will encourage subcontractors to install the Computerized Manifest System, emphasizing the fact that the system not only improves work efficiency but also contributes to compliance assurance.

Improvements/issues

Act

Taisei U-LEC Co., Ltd.



Rate of recycling of construction waste (excluding sludge) = [(Amount generated – Amount for final disposal) / Amount generated] × 100Rate of electronic manifest penetration = (number of electronic manifests issued/number of manifests issued) × 100


Environmental

KPIs

Promote 3R (reduce, reuse, recycle) activities

Rate of recycling of construction waste 97% / 97% � 98%

Proper control of construction waste

Rate of electronic manifest penetration 90% / 92% � 92%


We achieved our target for the recycling rate with a rate of 97.0% in fiscal 2012. The electronic manifest penetration rate was high for new buildings construction and renovations (100%) and sludge (99.4%) but was low for demolition work (66.3%), resulting in an overall rate of 92%, achieving the target.

When roads to a demolition work site are narrow, Taisei U-LEC is forced to hire collection and transportation contractors that mainly use small dump trucks. However, most of those subcontractors have not registered for the Computerized Manifest System. Taisei U-LEC will encourage them to do so.

Improvements/issues

Act

Definition

Check

Check


Taisei Setsubi Co., Ltd.



Rate of participation in compliance training (small-group training and group training) and e-learning provided to executives and employees


Fair Business Practice KPIs

Promoting compliance

Rate of participation in compliance training 100% / 100% � 100%


Selecting themes related to day-to-day work, we attempted to keep executives and employees fully informed through small-group (twice a year) and group (once a year) trainings. Additionally, we also conducted e-learning (twice a year) after the training sessions to reaffirm the content, which has been effective.

Seiwa Renewal Works Co., Ltd.



An indicator that expresses the frequency of occurrence of accidents that require four or more days off work.


Labor practices

KPIs

Thoroughgoing occupational health and safety management

Number of occupational accidents (requiring four or more days off work)

0 case / 2 cases × 0 case

Explanation of results Two accidents occurred that required four or more days off work. This was the worst record in the past five years.

Taisei Housing Corporation



Customer questionnaire evaluation rate from questionnaires given to clients at the time of building handover


Consumer issues KPIs

Quality control and improving customer satisfaction

Customer satisfaction surveys (manufacturer recommendation intention surveys)

95% / 97% � 100%


We aggregated questionnaire surveys returned within one month after customer questionnaire forms were given at the time of building handover. We achieved our target by improving the handling of sales personnel and increasing manufacturer recommendation intention.



Rate of participation in environment-related education provided to all employees at the head office and branches


Environmental

KPIs

Conduct comprehensive environmental activities

Rate of participation in environment-related training 100% / 90% r 100%


This year we held study sessions three times for executives and employees at the head office and branches, in order to raise their environmental awareness and increase their knowledge, including of industrial waste, energy conservation, ISO 14001, and revisions to environmental legislation.



Rate of participation in safety confirmation training during major disaster response training


Organizational

governance KPIs

Risk management

Rate of participation in major disaster response training 100% / 100% r 100%

Explanation of results We achieved 100% participation as the result of sending e-mails to all employees several times, calling for definite participation.


Check

Check

Check

Definition

Definition

Definition

Check

Definition

Check

Definition

We will continuously provide compliance training company-wide and attempt to establish compliance awareness among executives and employees.

Improvements/issues

Act

Many accidents occurred in situations where work procedures were changed without careful consideration or left out. Accordingly, we will re-inform workers of the importance of work procedures.

Improvements/issues

Act

We will continue providing education with the target of 100% participation, in order to increase environmental awareness and knowledge of environmental laws and regulations.

Improvements/issues

Act

We will continue to communicate to employees the significance of training and we need to call for definite participation.Improvements/issues

Act

The deciding factors for choosing a manufacturer were being a reliable company and providing excellent quality and performance. Going forward, we will continue trying to increase recommendation intention by improving our total quality and reinforcing our suggestion capabilities, in order to earn the trust of customers.

Improvements/issues

Act


Consolidated Balance SheetsTAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013

Financial Data

Please see our Financial Statement (April 1, 2012 – March 31, 2013) for details of our financial reporting.http://www.taisei.co.jp/english/ir/index.html

ASSETSMillionsofYen

Thousands of U.S.Dollars

2012 2013 2013

Current assets:

Cash and time deposits ..................................................................... ¥ 243,737 ¥ 266,639 $ 2,835,077

Receivables: ......................................................................................

Trade notes ................................................................................ 17,407 12,230 130,037

Trade accounts ........................................................................... 367,373 417,869 4,443,052

Loans ......................................................................................... 43 39 415

Allowance for doubtful accounts ...................................................... (1,112) (960) (10,207)

Inventories:

Development projects in progress, real estate ........................... 145,359 133,829 1,422,956

Raw materials and supplies ........................................................ 10,250 5,375 57,150

Cost on uncompleted contract .......................................................... 111,012 83,926 892,355

Deferred income taxes ...................................................................... 36,595 34,918 371,271

Prepaid expenses and other current assets ........................................ 52,267 58,774 624,922

Total current assets ..................................................... 982,931 1,012,639 10,767,028

Propertyandequipment,atcost

Land .................................................................................................. 141,849 138,780 1,475,598

Buildings and structures .................................................................... 147,771 143,108 1,521,616

Machinery and equipment ................................................................ 57,960 57,462 610,973

Construction in progress ................................................................... 603 372 3,955

348,183 339,722 3,612,142

Accumulated depreciation ................................................................ (135,544) (133,646) (1,421,010)

Net property and equipment ....................................... 212,639 206,076 2,191,132

Investments and other assets :

Investments in unconsolidated subsidiaries and affiliated companies ..... 13,052 3,288 34,960

Investment securities ......................................................................... 181,006 254,083 2,701,574

Deferred income taxes ...................................................................... 38,277 11,141 118,458

Other assets ...................................................................................... 81,982 62,202 661,372

Allowance for doubtful accounts ...................................................... (15,191) (6,334) (67,347)

Total investments and other assets .............................. 299,126 324,380 3,449,017

Total assets ................................................... ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

The accompanying notes are an integral part of these balance sheets.


Financial Data

LIABILITIES AND NET ASSETSMillionsofYen

Thousands of U.S.Dollars

2012 2013 2013

Current liabilities:

Short-term borrowings...................................................................... ¥ 102,523 ¥ 86,355 $ 918,182

Long-term debt due within one year ................................................. 97,624 60,751 645,944

Trade payables:

Notes ......................................................................................... 54,968 55,326 588,262

Accounts.................................................................................... 392,553 430,074 4,572,823

Advances received and progress billings on uncompleted contracts ...... 132,007 115,698 1,230,175

Allowance for losses on order received ............................................... 0 240 2,552

Income taxes payable ........................................................................ 4,885 1,039 11,047

Deposits received .............................................................................. 85,675 91,703 975,045

Allowance for losses on construction contracts ................................ 24,084 31,278 332,568

Other current liabilities ...................................................................... 26,877 34,817 370,196

Total current liabilities ................................................. 921,196 907,281 9,646,794

Long-termliabilities:

Long-term debt ................................................................................. 219,101 231,966 2,466,411

Allowance for employees’ severance and retirement benefits ........... 31,860 33,729 358,628

Allowance for accrued severance indemnities to directors and corporate auditors ............................................................................ 386 427 4,540

Deferred income taxes for revaluation of land .................................. 5,922 5,696 60,564

Allowance for losses on investments in subsidiaries and affiliates ..... 1,184 508 5,401

Allowance for environmental spending ............................................. 308 308 3,275

Assets retirement obligation ............................................................. 1,210 1,223 13,004

Other non-current liabilities .............................................................. 20,927 18,657 198,373

Total long-term debt ................................................... 280,898 292,514 3,110,196

Total liabilities ............................................... 1,202,094 1,199,795 12,756,990

Contingent liabilities and commitments

Net assets

Shareholders’equity:

Common stock

Authorized: 2,200,000,000 shares

Issued: 1,140,268,860 shares ............................................. 112,448 112,448 1,195,619

Capital surplus .................................................................................. 94,170 94,170 1,001,277

Retained earnings ............................................................................. 78,293 93,020 989,048

Less-Treasury stock, at cost ............................................................... (197) (302) (3,211)

Total shareholders’ equity ........................................... 284,714 299,336 3,182,733

Accumulated other comprehensive income:

Unrealized holding gains on securities, net of taxes .......................... 9,943 45,931 488,368

Unrealized losses on hedging derivatives, net of taxes ...................... (62) (208) (2,212)

Revaluation reserve for land .............................................................. (587) (960) (10,207)

Foreign currency translation adjustments .......................................... (2,739) (2,569) (27,315)

Total accumulated other comprehensive income ......... 6,555 42,194 448,634

Minorityinterests: ................................................................................ 1,333 1,770 18,820

Total net assets ........................................................... 292,602 343,300 3,650,187

Total liabilities and net assets ........................ ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

Consolidated Balance Sheets (cont.)TAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013


Financial Data

MillionsofYenThousands of U.S.Dollars

2012 2013 2013

Revenue:

Net sales ...........................................................................................

Construction .............................................................................. ¥ 1,171,927 ¥ 1,254,291 $13,336,427

Real estate (including other) ...................................................... 151,577 162,205 1,724,668

1,323,504 1,416,496 15,061,095

Costs and expenses

Cost of sales ...................................................................................... 1,206,014 1,304,677 13,872,164

Selling, general and administrative expenses .................................... 81,004 76,213 810,345

1,287,018 1,380,890 14,682,509

Operating income ................................................................................. 36,486 35,606 378,586

Otherincome(expense):

Interest and dividend income ............................................................ 3,171 3,295 35,035

Interest expense ................................................................................ (7,505) (6,312) (67,113)

Miscellaneous Taxes .......................................................................... (365) (159) (1,691)

Foreign exchange gains (losses) ........................................................ (1,934) 2,710 28,814

Gains on sale of investment securities ............................................... 1,365 - -

Gains on sale of property and equipment ......................................... 78 464 4,934

Losses on sale of investment securities.............................................. - (4) (43)

Losses on investments in related companies ..................................... (1,570) - -

Impairment losses on fixed assets ..................................................... (12,174) (1,402) (14,907)

Losses on write-down of investment securities ................................. (558) (170) (1,808)

Losses on disposal of fixed assets ...................................................... (106) (200) (2,127)

Other, net ......................................................................................... (215) (1,000) (10,632)

(19,813) (2,778) (29,538)

Income before income taxes and other items ................................... 16,673 32,828 349,048

Income taxes

Current ...................................................................................... (6,337) (3,623) (38,522)

Deferred .................................................................................... (9,143) (8,776) (93,312)

(15,480) (12,399) (131,834)

Incomebeforeminorityinterests........................................................ 1,193 20,429 217,214

Minorityinterestinnetincomeofconsolidatedsubsidiaries ......... (12) (378) (4,019)

Net income ¥ 1,181 ¥ 20,051 $ 213,195

Yen U.S.Dollars

Amountspershareofcommonstock:

Net income ................................................................................ ¥ 1.04 ¥ 17.60 $ 0.187

Diluted net income .................................................................... ¥ - - -

Cash dividends applicable to the year ........................................ 5.00 5.00 0.053

The accompanying notes are an integral part of these statements.

Consolidated Statements of IncomeTAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013


Financial Data


2012 2013 2013

Incomebeforeminorityinterest ¥ 1,193 ¥ 20,429 $ 217,214

Other comprehensive income

Unrealized holding gains on securities, net of taxes ......................... 5,159 35,990 382,669

Unrealized gains (losses) on hedging derivatives, net of taxes .......... 76 (144) (1,531)

Revaluation reserve for land .............................................................. 848 0 0

Foreign currency translation adjustments .......................................... 421 127 1,350

Share of other comprehensive income of associates accounted for using equity method .................................................................... (35) 99 1,053

Total other comprehensive income 6,469 36,072 383,541

Comprehensive income ¥ 7,662 ¥ 56,501 $ 600,755

Comprehensive income attribute to:

owners of the parent ................................................................. 7,581 56,065 596,119

minority interests ....................................................................... 81 436 4,636


Consolidated Statements of Comprehensive IncomeTAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013


Financial Data

Consolidated Statements of Changes in Net AssetsTAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013

MillionsofYen

Common stock

Capital Surplus

Retained earnings

Treasury stock

Total shareholders’

equity

Unrealized holding gains on

securities, net of taxes

Unrealized losses on hedging

derivatives, net of taxes

Revaluation reserve for

land

Foreign currency

translation adjustments

Totalaccumulated

othercomprehensive

incomeMinority interests

Total net assets

Balance at March 31, 2011 ¥ 112,448 ¥ 94,170 ¥ 83,857 ¥ (193) ¥ 290,282 ¥ 4,792 ¥ (138) ¥ (2,483) ¥ (3,064) ¥ (893) ¥ 1,209 ¥ 290,598

Dividends ........................ - - (5,697) - (5,697) - - - - - - (5,697)

Net income ...................... - - 1,181 - 1,181 - - - - - - 1,181

Sale of treasury stock ...... - (0) - 1 1 - - - - - - 1

Acquisition of treasury stock .......................... - - - (5) (5) - - - - - - (5)

Reversal of revaluation reserve for land .......... - - (1,048) - (1,048) - - 1,048 - 1,048 - -

Changes other than shareholder's equity, net ..............................

- - - - - 5,151 76 848 325 6,400 124 6,524

Balance at March 31, 2012 ¥ 112,448 ¥ 94,170 ¥ 78,293 ¥ (197) ¥ 284,714 ¥ 9,943 ¥ (62) ¥ (587) ¥ (2,739) ¥ 6,555 ¥ 1,333 ¥ 292,602

Dividends ........................ - - (5,697) - (5,697) - - - - 0 - (5,697)

Net income ...................... - - 20,051 - 20,051 - - - - 0 - 20,051

Sale of treasury stock ...... - (0) - 1 1 - - - - 0 - 1

Acquisition of treasury stock .......................... - - - (106) (106) - - - - 0 - (106)

Reversal of revaluation reserve for land .......... - - 373 - 373 - - (373) - (373) - 0


- - - - 0 35,988 (146) - 170 36,012 437 36,449

Balance at March 31, 2013 ¥ 112,448 ¥ 94,170 ¥ 93,020 ¥ (302) ¥ 299,336 ¥ 45,931 ¥ (208) ¥ (960) ¥ (2,569) ¥ 42,194 ¥ 1,770 ¥ 343,300

ThousandsofU.S.Dollars

Common stock

Capital Surplus

Retained earnings

Treasury stock

Total shareholders’

equity

Unrealized holding gains on

securities, net of taxes

Unrealized losses on hedging

derivatives, net of taxes

Revaluation reserve for

land

Foreign currency

translation adjustments

Totalaccumulated

othercomprehensive

incomeMinority interests

Total net assets

Balance at March 31, 2012 $ 1,195,619 $ 1,001,277 $ 832,461 $ (2,095) $ 3,027,262 $ 105,720 $ (660) $ (6,241) $ (29,123) $ 69,696 $ 14,174 $ 3,111,132

Dividends ........................ - - (60,574) - (60,574) - - - - 0 - (60,574)

Net income ...................... - - 213,195 - 213,195 - - - - 0 - 213,195

Sale of treasury stock ...... - 0 - 11 11 - - - - 0 - 11

Acquisition of treasury stock .......................... - - - (1,127) (1,127) - - - - 0 - (1,127)

Reversal of revaluation reserve for land .......... - - 3,966 - 3,966 - - (3,966) - (3,966) - 0


- - - - 0 382,648 (1,552) - 1,808 382,904 4,646 387,550

Balance at March 31, 2013 $ 1,195,619 $ 1,001,277 $ 989,048 $ (3,211) $ 3,182,733 $ 488,368 $ (2,212) $ (10,207) $ (27,315) $ 448,634 $ 18,820 $ 3,650,187



Financial Data


2012 2013 2013

Cash flows from operating activities:Income before income taxes and other items ¥ 16,673 ¥ 32,828 $ 349,048

Adjustments to reconcile income before income taxes and other items to net cash provided by operating activities:

Depreciation and amortization ................................................... 8,002 6,866 73,004

Impairment losses on fixed assets ............................................... 12,174 1,402 14,907

Interest and dividend income ..................................................... (3,171) (3,295) (35,035)

Interest expense ......................................................................... 7,505 6,312 67,113

Foreign exchange losses (Gains) ................................................. 1,934 (2,710) (28,814)

Losses (Gains) on write-down of investment securities............... 12,658 401 4,264

Losses (Gains) on sale of investment securities ........................... (1,365) 4 43

Losses (Gains) on sale of property and equipment ..................... (78) (464) (4,934)

Losses on disposal of fixed assets 106 200 2,127

Losses (gains) on write-down of real estate for sale ................... 5,772 3,229 34,333

Changes in assets and liabilities:

Decrease (Increase) in trade receivables ..................................... (92,192) (45,069) (479,203)

Decrease (Increase) in cost on uncompleted contract ................. (2,131) 27,137 288,538Decrease (Increase) in inventories other than cost on

uncompleted contract ............................................................. 8,425 17,333 184,296

Increase (Decrease) in trade payables ......................................... 83,356 38,095 405,051Increase (Decrease) in advances received and progress billings

on uncompleted contracts ...................................................... 31,761 (16,606) (176,566)

Increase (Decrease) in allowance for doubtful accounts ............. (2,132) (9,012) (95,821)Increase (Decrease) in allowance for losses on construction

contracts ................................................................................. 13,465 7,193 76,481

Increase (Decrease) in retirement benefits .................................. 2,305 1,866 19,841

Increase (Decrease) in deposit received ...................................... 21,510 6,028 64,094

Other, net .......................................................................................... (12,378) 1,0712 113,894

112,199 82,450 876,661

Cashreceived(paid)duringtheyearfor:

Interest and dividends received .......................................................... 3,100 3,619 38,480

Interest paid ...................................................................................... (7,572) (6,373) (67,762)

Income taxes paid .............................................................................. (2,627) (6,615) (70,335)

Net cash provided by (used in) operating activities 105,100 73,081 777,044

Cash flows from investing activities:

Decrease (Increase) in time deposits .................................................. (2,259) 1,753 18,639

Purchase of marketable and investment securities ............................. (5,832) (11,627) (123,626)

Proceeds from sale of marketable and investment securities ............. 5,170 6,521 69,335

Purchase of property, equipment and intangible assets ..................... (6,722) (6,284) (66,816)

Proceeds from sale of property, equipment and intangible assets ..... 1,947 4,193 44,583

Other, net .......................................................................................... (399) 741 7,880

Net cash provided by (used in) investing activities (8,095) (4,703) (50,005)

Cash flows from financing activities:

Increase (Decrease) in short-term borrowings .................................... (23,901) (16,168) (171,909)

Payment for retirement by purchase of convertible bond .................. 0 (20,276) (215,587)

Proceeds from long-term debt ........................................................... 89,396 102,810 1,093,142

Repayment of long-term debt ........................................................... (118,323) (106,818) (1,135,758)

Cash dividends paid, including those to minority interest .................. (5,698) (5,697) (60,574)

Other, net .......................................................................................... (296) (402) (4,274)

Net cash provided by (used in) financing activities (58,822) (46,551) (494,960)

Effect of exchange rate changes on cash and cash equivalents ... (694) 2,783 29,590

Netincrease(Decrease)incashandcashequivalents .................. 37,489 24,610 261,669Cashandcashequivalentsatbeginningofyear ............................ 203,674 241,163 2,564,200

Cashandcashequivalentsatendofyear ....................................... ¥ 241,163 ¥ 265,773 $ 2,825,869


Consolidated Statements of Cash FlowsTAISEI CORPORATION and Consolidated SubsidiariesMarch 31, 2012 and 2013


Corporate Data

Name Taisei Corporation

Established December 28, 1917

Paid-in capital ¥112.4 billion

Head Offi ce Shinjuku Center Building, 1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0606, Japan

Number of employees 7,945

Representative Takashi Yamauchi, Representative Director, President and Chief Executive Offi cer

Main business operations

Construction, urban development, other construction-related business operations, and associated engineering services, etc.

Consolidated Companies Consolidated subsidiaries: 25; equity method affi liates: 7

Corporate Profi le (as of March 31, 2013)

Board of Directors, Corporate Auditors and Executive Offi cers (as of July 1, 2013)

For details on our latest corporate profi le, please see TAISEI’s offi cial website.http://www.taisei.co.jp/english/profi le/corp_data.html

Board of Directors and Corporate AuditorsChairman of the Board (Representative Director)

Takashi Yamauchi

Members of the Board

Hirofumi Ichihara (Representative Director)

Hiroyuki Kimura (Representative Director)

Misao Akune (Representative Director)

Kazuhiko Dai

Yoshiyuki Murata

Shigeyuki Sakurai

Masahiro Sakai

Tohru Tsuji

Fumio Sudo

Senior Audit &Supervisory Board Member

Atsushi Okamoto

Nobuyuki Motegi

Audit &Supervisory Board Member

Masakuni Sekimoto

Terunobu Maeda

Shigeru Morichi

Kiwamu Miyakoshi

Executive Offi cersPresident and Chief Executive Offi cer

Takashi Yamauchi

Executive Vice Presidents

Hirofumi Ichihara

Hiroyuki Kimura

Misao Akune

Hiroshi Tada

Satoru Ogata

Toshio Tominaga

Senior Managing Executive Offi cers

Kazuhiko Dai

Masatake Taniuchi

Hidemi Omi

Hidetoshi Yasukawa

Yasushi Suzuki

Norimitsu Yoshihama

Managing Executive Offi cers

Fumihiro Yamada

Shigeki Watanabe

Junji Katsura

Junichi Ikeguchi

Masatsugu Yamada

Hisao Tamura

Toshio Matsuda

Osamu Tsujita

Sumio Yabuki

Tsuyoshi Hirono

Kazuhiko Hombu

Michio Kuboniwa

Shigeru Konnai

Shigeyoshi Tanaka

Yoshiyuki Murata

Shigeyuki Sakurai

Masahiro Sakai

Motofumi Fujiwara

Yoshinobu Shigeji

Executive Offi cers

Hirofumi Kamata

Satoru Tsutae

Yukio Matsuno

Masahiro Oshima

Masafumi Anami

Yoshitaka Inoue

Yasushi Yoshinari

Katsuyuki Kanai

Yusuke Fukuda

Takashi Ohkawa

Tamotsu Umehara

Tetsuya Shibayama

Takeo Horinouchi

Shoji Kondo

Norihiko Yaguchi

Takao Kanai

Hiroshi Shirakawa

Haruhiko Kouno

Yoshinori Nishida

Hiroshi Suzuki

Kaoru Maruyama

Tsuyoshi Nakanishi

Atsuo Ogawa

Takeshi Kagata

Masaharu Okada

Jirou Taniyama

Takao Doi

Yoshiro Aikawa

Keiji Hirano


TAISEI Corporation Organization Chart (as of April 1, 2013)

HeadOffice

Personnel Dept.

General Affairs Dept.

Legal Dept.

Accounting Dept.

Finance Dept.

Business Administration Div.

Safety Administration Dept.

Reconstruction Department I

Environmental Administration Dept.

Reconstruction Department II

Safety Administration Division

East Japan Reconstruction Div.

Planning & Administration Dept.

Environmental Development Dept.

Environmental Planning Dept.

Soil Remediation & Geo-Environmental Services Dept.

Environment Division

Technology Planning Dept.

Intellectual Property Dept.

Building Engineering Research Institute

Civil Engineering Research Institute

Building Technology Development Dept.

Civil Engineering Technology Development Dept.

Taisei Technology Center

Corporate Planning Dept.

Corporate Communication Dept.

Information Planning Dept.

Corporate Planning Offi ce

Auditing Dept.

Secretarial Dept.

Nuclear Facilities Planning Dept.

Nuclear Facilities Engineering Dept. I

Nuclear Facilities Engineering Dept. II

Nuclear Facilities Engineering Dept. III

Nuclear Facilities Construction Planning Dept.

Nuclear Facilities Division

Marketing & Sales Promotion Div.

Marketing & Sales Promotion Dept.

Planning & Business Promotion Dept.

Real Estate Information Dept.

Life Cycle Care Promotion Dept.

Customer Satisfaction Dept.

Project Solutions Dept.

Business Solutions Dept.

Proposal & Solutions Div.

Marketing & Sales Depts.Marketing & Sales (Building Construction) Div. I

Marketing & Sales Depts.Marketing & Sales (Building Construction) Div. II

Marketing & Sales Depts.Marketing & Sales (Building Construction) Div. III

Marketing & Sales Depts.Medical & Welfare Business Div.

Marketing & Sales Depts.


Marketing & Sales (Civil Engineering) Div.

Marketing & Sales (West Japan) Division

Urban Development Div.

Planning & Management Dept.

Project Development Dept. I

Project Development Dept. II

PPP Projects Dept.

Urban Redevelopment Dept. I

Urban Redevelopment Dept. II

Asset Management Dept.

Development Business Dept.

Sales Mindset/Skills Training Dept.

Projects Creation Dept.

Mar

keti

ng &

Sal

es D

ivis

ion

(Int

egra

ted)

Pres

iden

t

Urban Development Div.

*

Building Construction Dept.

Operations Planning Dept.

M&E Engineering Depts.

Technology Promotion Dept.

Architectural Design Depts.

M&E Planning Dept.

Estimate Dept.

Structural Engineering Depts.

Planning & Design Dept.

Quality Management Dept.

Building Renovation Technology Dept.

Structural Planning Dept.

Technical Design Dept.

International Projects Dept.

Engineering Planning Dept.

GroupsEngineering Div.

Building Construction Div.

Design Div.

Mechanical & Electrical Dept.Mechanical & Electrical Div.

Civil Engineering Div.

Civil Engineering Dept.

Construction Engineering Dept.

Machinery Dept.

Design Dept.

Estimate Dept.

Project Analysis & Information Dept.

Next Generation Project Dept.

International Operations Headquarters

Administration Dept.

Contracts & Claims Management Dept.

Safety Administration & Environmental Dept.




Branch

Administration Dept.

Safety Administration & Environmental Dept.



Reconstruction Project Dept.(Civil Engineering)


Procurement Div.

Procurement Dept. I

Procurement Dept. II

International Procurement Dept.

Procurement Dept. III

Planning & Administration Dept.

Branches

*

Strategic/Condominium Projects Support & Technology Coordination Dept.

Technology Management Dept.

Arc

hite

ctur

e &

Eng

inee

ring

Div

isio

n (I

nteg

rate

d)

Corporate Auditor Auditor’s Secretarial Dept.

Design Dept.

*Tohoku Branch


Corporate Data

Overseas Network (as of August 1, 2013)

HeadOffice

1-25-1 Nishi-Shinjuku, Shinjuku-ku,Tokyo 163-0606, JAPANTEL. 81-3-3348-1111

Branches

Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Sendai, Hiroshima, Yokohama, Niigata, Takamatsu, Chiba, Saitama, Kobe, Kyoto

MajorSubsidiariesinJapan

Taisei Rotec Corporation, Taisei-Yuraku Real Estate Co.,Ltd., Taisei U-Lec Co,Ltd., Taisei Setsubi Co.,Ltd., Taisei Housing Corporation, Seiwa Renewal Works Co., Ltd.,

InternationalOperationsHeadquarters

1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0606, JAPANTEL. 81-3-5381-5325FAX. 81-3-5381-5516

Overseas Offi ces

TAIPEI OFFICE Zone B, 6F, No. 16, Sec. 4, Nan-Jing E. Road, Taipei, Taiwan R.O.C.

TEL. 886-2-2578-5656FAX. 886-2-2578-8288

MIDDLE EAST OFFICE (Doha)

Corner Abdullah Bin Jassim St. United Bank Bldg. 4th Floor, Facing QNB Bldg, Doha – Qatar, PO BOX 47366

TEL. 974-4443-4174FAX. 974-4443-7176

MIDDLE EAST OFFICE (Dubai)

Emarat Atrium, Unit No.3, Ground Floor, Block-A(West),Al Wasl, Sheikh Zayed Road, P.O.Box 31202, Dubai, U.A.E.

TEL. 971-4-323-7677FAX. 971-4-323-7224

U.S.A OFFICE 6261 Katella Avenue, Suite 200, Cypress, CA 90630, U.S.A

TEL. 1-714-886-1530 Ext.266

FAX. 1-714-886-1546

KUALA LUMPUR OFFICE 9-3, 9th Floor, Faber Imperial Court, Jalan Sultan Ismail, 50250 Kuala Lumpur, MALAYSIA

TEL. 60-3-2070-6155FAX. 60-3-2070-6010

JAKARTA OFFICE Plaza PP 5F, JL Letjend TB Simatupang, No.57, Pasar Rebo, Jakarta 13760, INDONESIA

TEL. 62-21-840-3985FAX. 62-21-840-3986

INDIA OFFICE 4TH FLOOR, SCO-56, OLD JUDICIAL COMPLEX, CIVIL LINES, GURGAON, HARYANA-122001, INDIA

TEL. 91-124-466-9800FAX. 91-124-466-9888

PAKISTAN OFFICE House No.25-B, Street No.20, Sector F-7/2, Islamabad, Pakistan

TEL. 92-51-2656131FAX. 92-51-2656132

VIETNAM OFFICE (Hanoi)

289 Khuat Duy Tien Road, Trung Hoa Ward, Cau Giay District, Hanoi, S.R.VIETNAM

TEL. 84-4-3553-5032FAX. 84-4-3553-5002

VIETNAM OFFICE (Hochiminh City)

VIETNAM CHAMBER OF COMMERCE AND INDUSTRY, Hochiminh City Branch Building 7th Floor, 171 Vo Thi Sau St., Ward7, District-3, Hochiminh City, S.R.VIETNAM

TEL. 84-8-3932-1759FAX. 84-8-3932-1758


Corporate Data

Overseas Network (as of August 1, 2013)

Overseas Subsidiaries & Affi liates

PT.PP-TAISEI INDONESIA CONSTRUCTION

5th Floor, Plaza PP, JL Letjend TB Simatupang, No.57, Pasar Rebo, Jakarta 13760, INDONESIA

TEL. 62-21-841-6037FAX. 62-21-841-6038

TAISEI (THAILAND) CO., LTD.

9th Floor, Thanapoom Tower, 1550 New Petchburi Road, Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, THAILAND

TEL. 66-2-207-0330FAX. 66-2-207-0332

TAS PLAN, Inc. 23rd Floor, Equitable Bank Tower, Paseo de Roxas, Salcedo Village, Makati City, PHILIPPINES

TEL. 63-2-886-0667FAX. 63-2-886-0663

VINATA INTERNATIONAL J/V LTD. CO.

Head Offi ceVINATA Workshop, Khuat Duy Tien Road, Trung Hoa, Cau Giay, Hanoi, S.R.VIETNAM

TEL. 84-4-3553-3839FAX. 84-4-3553-3788

Hochiminh City Branch Offi ce7th Floor, VIETNAM CHAMBER OF COMMERCE AND INDUSTRY TOWER, 171 Vo Thi Sau St., District3, Hochiminh City, S.R.VIETNAM

TEL. 84-8-3932-1765FAX. 84-8-3932-1764

CSCEC-TAISEI CONSTRUCTION, LTD

Head Offi ceZhong Da Bldg 23, Zizhuyuan S.road Haidian, Beijing, 100048,CHINA

TEL. 86-10-6845-1267FAX. 86-10-8841-4846

Shanghai BranchRoom1307 XinDa Building, No.318 XianXia Road, Shanghai, PRC 200336

TEL. 86-21-6209-9757FAX. 86-21-6209-9758

TAISEI PHILIPPINE CONSTRUCTION INCORPORATED

23rd Floor, Equitable Bank Tower, Paseo de Roxas, Salcedo Village, Makati City, PHILIPPINES

TEL. 63-2-886-0670FAX. 63-2-886-0663

PT. INDOTAISEI INDAH DEVELOPMENT

Kawasan Industri Indotaisei, Kota Bukit Indah Sector IA, Block B Karihurip, Cikampek, Karawan, Jawa Barat, INDONESIA

TEL. 62-264-351-003FAX. 62-264-351-026

MYANMAR OFFICE 2nd Floor, Tokyo Enterprise Building, No.32, Pyay Road, 61/2 miles, Hlairg Township, Yangon, Myanmar

TEL. 95-1-654-838FAX. 95-1-654-838

SRI LANKA OFFICE No.177, 3rd Floor, Galle Road, Colombo 03. TEL. 94-11-2446194FAX. 94-11-2446198

NORTH AFRICA OFFICE 25th, Rd No.10, Station Sqr., Maadi, Cairo, Arab Republic of Egypt

TEL. 20-2-2378-3609FAX. 20-2-2380-1362

THAILAND OFFICE 9th Fl., Thanapoom Tower, 1550 New Petchburi Road, Kwaeng Makkasan, Khet Rachtavee, Bangkok 10400, THAILAND

TEL. 66-2-207-0056, 57FAX. 66-2-207-0058

ISTANBUL OFFICE Barbaros Mah. Seyit Ahmet Deresi Sok.Bahar Sitesi Yani, 34662 Altunizade – Uskudar Istanbul, TURKEY

TEL. 90-216-651-8160FAX. 90-216-651-8180


External Awards / External Evaluations

Main awards received from April 2012 to March 2013

Name Type of award Details of award

Japan Society of Civil Engineers

• Japan Society of Civil Engineers (JSCE) Awards 2011Outstanding Civil Engineering Achievement Award Group I

• TBM (shield tunneling) and sunken tube method for joining the ocean floor in the tunnel deep in the Bosphorus Strait

• Undergrounding the continuous grade separation in urban railways that fulfills strict construction requirements —Construction for continuous grade separation near Keio Corporation Chofu Station—

• Japan Society of Civil Engineers (JSCE) Awards 2011Environment Award Group II

• Project to save and preserve the coral and seaweed colonies in the subtropical remote islands

Architectural Institute of Japan

• 2012 Architectural Institute of Japan Awards (Research paper)

• Ichiro NagashimaStudy on Active and Semi-active Vibration Control of Buildings

Japan Concrete Institute

• FY2012Japan Concrete Institute Award Technology Award

• Design and construction of the Sangi Railway Kayogawa bridge—World’s first UFC railway bridge —

• FY2012Japan Concrete Institute Award Best Architectural Work

• Owl Tower

Japan Institute of Country-ology and Engineering

• 14th Infrastructure Technology Development Award Grand Award

• TECOREP systemSubtitle: Method for closed demolition of superhigh-rise buildings

• 14th Infrastructure Technology Development Award Excellence Award

• Double BitsSubtitle: Method for automatic bit replacement in shield tunneling

Japan Construction Machinery and Construction Association

• FY2012Japan Construction Machinery and Construction Association Chairman’s Award

• Development of the TECOREP system for demolition of superhigh-rise buildings

• FY2012Japan Construction Machinery and Construction Association Outstanding Research Paper Award

• Development and application of the TECOREP system for closed demolition of superhigh-rise buildings over 100 m tall

The Nikkan Kogyo Shimbun

• 41st Japan Industrial Technology Grand PrixReview Committee Special Award

• Development and practical application of the TECOREP system for closed demolition of superhigh-rise buildings

Institute of Noise Control Engineering of Japan

• FY2011 Institute of Noise Control Engineering of Japan AwardsEnvironmental Design Award

• Development of the TECOREP system for closed demolition of superhigh-rise buildings

Corporate Data

IncorporationinKeyGlobalSRIIndexesIn recent years, socially responsible investment has become the focus of attention. Socially responsible investment seeks to realize stable income from investments by evaluating and screening companies from the perspective of their observance of laws and regulations and their contributions to society and the environment, rather than from an exclusively fi nancial perspective, and judging their sustainability on that basis. As of March 2013, in addition to the Morningstar Socially Responsible Investment Index,* a key domestic SRI index, TAISEI has been incorporated in the FTSE4Good Global Index and the Dow Jones Sustainability Asia Pacifi c Index.

* Morningstar Socially Responsible Investment Index: The Morningstar Socially Responsible Investment Index is Japan’s fi rst SRI stock price index, covering 150 companies selected by Morningstar Japan K.K. from among domestically listed companies as being superior in terms of social responsibility.

IncorporationinKeyGlobalSRI Indexes


Third Party Opinion

Third Party Opinion

The TAISEI Group expressed more clearly that sustainable development of its companies is possible through contribution to the sustainable progress of society, and has placed initiatives to resolve social issues at the heart of its activities. At the same time, management of CSR activities at construction sites is slowly progressing.

Positioning of CSR

Considering contribution to the sustainable progress of society as a core corporate pursuit requires working on those activities from an even longer-term perspective than before. Although it is not easy to adjust activities to this perspective and to the market environment that undergoes changes over a short term, it is possible for the TAISEI Group to contribute to society by producing high added value with its strong technological capabilities.

In last year’s report, I pointed out that “TAISEI formulates business plans from a long-term perspective, and I believe that it would be benefi cial for the company to offer its stakeholders, in addition to reports of its short-term fi nancial and non-fi nancial activities, information from a slightly longer-term perspective concerning matters such as the future direction of its initiatives and the vision the company is aiming for, as they relate to its business strategies and CSR and sustainability strategies.” This year, the overall positioning has been expressed more clearly. This was done on pages 5-8 of the main section and pages 3-6 of the data section, where the current mid-term business plan was expressed based on the long-term vision, “TAISEI VISION 2020” that is itself based on the Group ideal and spirit and was linked to CSR issues to clarify the overall positioning. However, I look forward to a clearer message about what exactly comprises the TAISEI VISION 2020. It is also important for the top management to talk about that vision and clarify its positioning.

Management of CSR activities

Regarding the management of CSR activities, a self-check sheet for CSR measures was drafted this year based on ISO 26000, and discussions were held with each department on the various key issues to determine KPIs. It is the second year for the designation of KPIs, and I understand that they have become concrete means for raising awareness throughout the company. This is an important point.

To address management of CSR at Group companies that was a pending issue, TAISEI began holding briefi ngs last year in which CSR activity interview sheets befi tting the actual situation are brought along to conduct interviews and designate KPIs. It is of fi rst and foremost importance to determine the issues for each entity and share the current situation. I hope that these will not end up as simple individual issues for each

entity, but rather will be considered as elements for the overall management of the company and, even further, for the overall Group. The same applies for issues of the supply chain management.

Going forward, an important point will be to state the positive contributions and the negative evasions related to increased effi ciency of management through the KPIs and how they relate to fi nancial matters. When creating an integrated report, incorporating CSR into the management process and steadily implementing the PDCA cycle is more important than the method of disclosure.

Regarding how to express the KPIs, clearly showing a number of points that are considered important for creating a sustainable society in the main section would facilitate comprehension by more stakeholders.

CSRprocurementinthesupplychain

The TAISEI Group was late in starting management of CSR procurement in the supply chain, but fi nally established and disclosed a basic procurement policy in April of this year. I understand that relevant departments that work with suppliers are cooperating together and that TAISEI will hold briefi ngs to assess the current situation, starting with its main suppliers. It is my hope that cooperation and understanding will be requested from many suppliers to have them work together with TAISEI in the development of CSR procurement. Achieving such an effort across-the-board will not be easy but will have strong benefi ts for both parties. Employees from various departments such as compliance, environment, safety, and information security have been dealing with suppliers, but having these departments work together in their relations with suppliers will be of great signifi cance. I hope that each company will reform and strengthen its management practices from the perspective of CSR, and that the whole Group and the entire supply chain will understand that such actions will lead to higher valuation of the company in the market.

Professor, Faculty of Commerce,

Waseda University

Ph.D., Business Administration

Kanji Tanimoto


CSR Promotion Section, Corporate Communication Department, Corporate Planning Office, Taisei CorporationE-mail: [email protected]: http://www.taisei.co.jp

Inquiries

corporate report 2013 data book€¦ · consulting, and csr issues and objectives were extracted...

Documents