ESG Initiatives

ESG Materiality

Upon the start of Medium-Term Business Plan 2017, Obayashi set its sights on Vision for the Future. Inspired by it, we are better clarifying and promoting initiatives to solve social challenges and realize a sustainable society. In FY2019.3, we have set out six ESG materiality.

1. Establish an Environmentally Responsible Society

  • Response to climate change (pursue a decarbonized society)
  • Contribution to the establishment of recycling-oriented society (promoting effective use of resources through the 3 R's (reduce, reuse, recycle))

(Impact on our business)

  • Expansion of construction demand through development of environmentally related technology and generation of new businesses
  • Delay in response to stricter environmental laws and regulation, increase in the costs of environment management, decline in competitiveness

2. Enhance Quality Control and Technological Capabilities

  • Improvement in construction management skills to maintain high quality
  • Development of groundbreaking technology to meet many different needs and resolve problems

(Impact on our business)

  • Improvement in productivity, strengthening of competitiveness, and increase in business opportunities
  • Loss of trust, decline in competitiveness, loss of business opportunities

3. Ensure Occupational Health and Safety

  • Comprehensive occupational health and safety management system
  • Promotion of safety training and other efforts

(Impact on our business)

  • Securing talented human resources, strengthening the supply network of excellent suppliers
  • Deterioration in trust in the company from ordering customers and decline in productivity due to occurrence of accidents

4. Develop and Retain Human Resources

  • Hiring diverse human resources, comprehensive flexible personnel and training systems to respond to globalization
  • Promoting diversity and establishing a work place environment that is easy for anyone to work in effectively

(Impact on our business)

  • Securing talented human resources, improving organizational capabilities, and expanding business domains
  • Outflow of talented human resources, decline in productivity, increasing organizational rigidity

5. Implement Rigorous Compliance

  • Promoting management that places highest priority on compliance with laws and regulations
  • Improvement of the system of internal controls

(Impact on our business)

  • Improvement of trust in the company by society, improvement in organizational capabilities, strengthening of business base
  • Suspension/cessation of business activities, loss of trust, loss of business opportunities

6. Conduct Responsible Supply Chain Management

  • Ensuring that everyone understands the procurement guidelines and strictly adheres to them
  • Conducting surveys of the procurement process and conditions

(Impact on our business)

  • Improving competitiveness by building a strong network with suppliers and strengthening the ability to respond in the BCP (business continuity plan) in the event of a disaster
  • Suspension/cessation of business due to halting of procurement, and a loss of trust and loss of business opportunities from the occurrence of human rights issues and other problems

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Determination Process

STEP 1 : Identifying Relevant Issues

We analyzed the expectations and demands of stakeholders and incorporated the opinions of external institutions in this process. We consulted international guidelines(*1), SDGs (Sustainable Development Goals), and other sources and extracted 22 items as ESG issues from the roughly 300 issues in ESG areas.

STEP 2 : Verifying the Importance of Issues

We evaluated the 22 items for the degree of stakeholder interest and impact on stakeholders, and the degree of importance to and impact on the Obayashi Group. Six items were prioritized as material issues in ESG areas based on the Obayashi Basic Principles and business strategy.

STEP 3 : Determining Materiality

We envisioned a business model designed to solve the six material issues in ESG areas and established KPIs (key performance indicators). These were internally reviewed and approved, and given final approval after discussion by the president and the Board of Directors.

In the future, we will formulate an action plan for this materiality and the KPI, and strive to achieve the KPI targets by operating the PDCA cycle. The degree of achievement will be reviewed annually, and revisions made as necessary.

*1 International guidelines
We consulted global framework of international organizations and NGOs, listed below.
・IIRC (International Integrated Reporting Council)
・SASB (Sustainability Accounting Standards Board)
・GRI (Global Reporting Initiative)
・WEF (World Economic Forum)
・MSCI ESG Index

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ESG Data

We will show our ESG data and KPIs along with our materiality.

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