Contribution towards Environment Protection

Information Disclosure in Line with the TCFD Recommendations

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<Information Disclosure in Line with the TCFD Recommendations>

Information Disclosure in Line with the TCFD Recommendations

1.Governance

  • We will build a structure that centers on the Climate Change Response Promotion Committee, which is chaired by President and Representative Director of the Board, as an organization for the study and deliberation of basic policies and key matters concerning climate change and the risks and opportunities that they present.
  • The Climate Change Response Promotion Committee will study climate change and regularly present proposals and reports to the Board of Directors. The Board of Directors will supervise and instruct the Committee.
  • Proposals deliberated and decided on by the Board of Directors will be rolled out to the individual departments and reflected in their respective management plans and business operations.
Governance system chart

2.Strategy

  • Identifying climate change as one of medium- to long-term risks, for the purpose of considering strategies based on related risks and opportunities and organizational resilience, we conducted a scenario analysis mainly of our architecture (including detached housing) and civil engineering businesses, to study the impact on Takamatsu Construction Group over the long term until 2050. In this exercise, we referred to the climate change scenarios (under 2°C scenario and 4°C scenario) presented by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

*Under 2°C scenario: Scenarios in which measures are taken to minimize temperature rises, including tightening of restrictions and changes to markets (IEA-WEO2022-APS, IPCC-AR5 [Fifth Assessment Report], - RCP2.6, etc.)

*4°C scenario: Scenarios in which temperature rises result in physical impacts, e.g. extreme weather events (IPCC-AR5 (Fifth Assessment Report), - RCP8.5, etc.)

3.Risk Management

  • We set up a working group on climate change risks to conduct the scenario analyses. For the prioritization of climate change risks, taking into accountthe possibility of risks and opportunities occurring to our own company and the degree of their impact, we will focus our efforts on key risk factors. The Climate Change Response Promotion Committee will continue these studies.
  • As our process for the management of climate change risks, the Climate Change Response Promotion Committee will conduct analyses of such risks, propose and promote countermeasures, and manage their progress.
  • The Group's risks have been integrated by having the Climate Change Response Promotion Committee manage climate change risks and collaborate with the Group companies and the Group's Group Internal Audit Department and Management Control Department, among other departments. Where necessary, the Committee also coordinates with the Board of Directors to build a company-wide risk management framework.

4.Metrics & Targets

  • In order to quantitatively manage climate-related risks and opportunities, we have set the following reduction targets for the entire Group, using greenhouse gas emissions as a metric. As a measure against climate change, we will continue to implement initiatives to reduce emissions in our business activities, striving to achieve our reduction targets and contribute to a decarbonized society.
Governance system chart

Major Risks and Opportunities Related to Climate Change and Our Responses (considered in respect of the architecture [including wooden detached housing] and civil engineering businesses)

Major Risks and Opportunities Related to Climate Change and Our Responses (considered in respect of the architecture [including wooden detached housing] and civil engineering businesses)

Bio-Diversity

Greening with Bio-Diversity in Mind

Greening with Bio-Diversity in Mind by Toko Geotech Corporation Co., Ltd.

To realize "nature recovery by revegetation of domestic species with consideration to bio-diversity", Toko Geotech Corporatoon Co.,Ltd. has been conducting proprietary operation of seed harvesting and seed storage to be used in slope greening environment operation. Concerning future slope and surface greening operation, the demand is more towards greening operation by using domestic species, rather than using foreign species. Toko Geotech will contribute towards national land greening by preparing revegetation menu that can respond to various needs.

[Revegetation Method by Toko Geotech Corporation Co.,Ltd.]
Eco-Stripe Revegetation Method (Non-planar Seeding Method)

Eco-Stripe Revegetation Method

This method is a combination of planned seeding and natural plant invitation works. By artificially creating green band area to invite natural seeds from the surrounding area to the construction area, surrounding green environment will promote nature restoration of the construction site with limited cost.

Reme-Forest Revegetation Method (Natural Plant Invitation Method)

Reme-Forest Revegetation Method

This method is a natural plant invitation promotion method by catching natural flying seeds. By putting "Seed Catcher (3D seed catching promotion net)" on top of sprayed "high tolerance basis", natural ground and Seed Catcher can be firmly adhered. This enables combination of slope protection and quick nature restoratioon of rocky slope with bumpy surface.

Recycle Earth Green Revegetation Method (Resource Circulation Revegetation Method)

Recycle Earth Green Revegetation Method

This method is a resource circulation revegetation method by mainly utilizing waste soil generated by dug-out soils and landslide soils. By re-utilizing waste soils of the construction site, usage of new revegetation resource as well as its transportation cost can be reduced, at the same time resulting in reduction of CO2. This method can be applied to wide range of revegetation methods from rapid revegetation method to rapid reforestation method using domestic species.

Japan Tree Seed Laboratory

Through collection of domestic seeds and proprietary technology of "early germination inspection method", this laboratory conducts seed quality inspection, issue quality certifications and seed storage technology development.

Japan Tree Seed Laboratory

Quality examination by using early germination inspection method

Seed Storage, Scaling and Packaging Center (RS Center)

This center stores domestic seeds for mid to long-term by using our proprietary technology, as well as packaging, measurement and shipping of various seeds.

Seed Storage Center

Seed weighing/bagging equipment

Renewable Energy

Wind Power Generation Project

Asunaro Aoki Construction Co.,Ltd. : Wind Power Generation (Renewable Energy) Project

Azuchi Oshima Wind Power Station

In fiscal year that ended March 2018, Japan's wind power generation capacity was approximately 3.5 million kilowatts, and the number of units installed was 2,253 (NEDO survey). By December 2017, Asunaro Aoki Construction built 247 units which accounts for 11% of nationwide constructions, and the installed capacity of the facilities reached 507,000 kilowatts. In order to support wind power generation projects, Asunaro Aoki Construction has implemented various technical and improvement proposals for construction of wind power stations that include on-site surveys, planning, licensing and construction. The completed sites include mountainous areas with complex terrain features that had formerly been recognized as difficult to develop.

Solar Power Generation Project

Asunaro Aoki Construction Co.,Ltd. : Solar Power Generation (Renewable Energy) Project

Mimasaka Musashi Mega Solar Project

Demand for solar power stations has increased dramatically after 2012 by the introduction of Feed-in-Tariff (FIT) system, which is an electricity purchase system generated by solar power stations. Asunaro Aoki Construction provides technical support for the construction of solar power stations that includes planning, on-site surveys, power station proposals though licensing and designing. By the end of October 2018, Asunaro Aoki Construction has achieved 24 completion and 7 work in progress solar power station projects that include complex terrain feature sites such as previous golf course sites.

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