Hazama Ando : SUSTAINABILITY REPORT 2021

2021

Materiality

1

Materiality

2

Materiality 3

INDEX

1 Hazama Ando's Sustainability Strategies

5 Materiality 1

Helping to solve social issues and create value for society

1. Activity Highlights
2. Achieving the satisfaction of society and customers and earning their trust

11 Working in harmony with the communities we serve

14 Materiality 2

Protecting and being attuned to the natural environment

1. Activity Highlights
2. Creating environmental abundance

1. Environmental Factsheet

29 Materiality 3

Promoting sustainable management and taking full responsibility for corporate actions

1. Activity Highlights
2. Conducting fair and honest corporate activities

1. Creating safe, comfortable working environments

1. Engaging in dialogue with stakeholders

Hazama Ando's Sustainability Strategies

At Hazama Ando, we are striving to become a corporate group that meets the expectations of society and creates greater social value. To achieve this, we have established key strategic themes (material issues) from the perspective of the environment, society, and governance (ESG).

Hazama Ando's Materiality

Materiality 1 Helping to solve social issues and create value for society

Create new value in various facets of our businesses and flourishing alongside the communities

we serve as we move toward the realization of a sustainable society

Key CSR Themes

Achieving the satisfaction of society and customers and earning their trust

Working in harmony with the communities we serve

Key Performance Indicators	Relevant SDGs

Productivity improvement (fiscal 2025 target) (Compared to fiscal 2020)10

Over %

Patent applications (fiscal 2025 target) 75/year

Materiality 2 Protecting and being attuned to the natural environment

Contribute to the realization of a carbon-free,recycling-oriented society

with a low environmental impact to pass on the earth's abundance to the next generation

Key CSR Themes

Creating environmental abundance

Key Performance Indicators	Relevant SDGs

CO2 emissions reduction (fiscal 2030 target)

Total reduction rate for Scope 1 and Scope 2 emissions (compared to fiscal 2017)33

%

Use of electricity from renewable energy sources

(fiscal 2030)80

%

Materiality 3 Promoting sustainable management and taking full responsibility for corporate actions

Realize fair and honest business practices across the supply chain

as the foundation for sustainable management

Key CSR Themes	Key Performance Indicators		Relevant SDGs
Conducting fair and honest	Serious work-related accidents	0cases
corporate activities
Creating safe, comfortable
working environments	Compliance training participation rate
Engaging in dialogue			100%
with stakeholders

HAZAMA ANDO CORPORATION 1 SUSTAINABILITY REPORT 2021

Pursuing Further Value Creation

Identifying Core SDGs and Disclosing Key Performance Indicators

To fully elucidate the potential social impact of the Four Value Creation themes, we identified core SDGs to priori- tize our actions in addressing the various material issues of the Group. We aim to improve non-financial performance in the Chapter I phase of the medium-term management plan while clarifying the content of our actions to achieve the SDGs. We also disclosed performance indicators correlating to the core SDGs, to make visible our progress in realizing sustainability strategies related to the material issues.

Going forward, this framework will be instrumental as we implement a PDCA cycle, serving as a central index of the social and environmental impact strategies we have developed, integrating financial and non-financial actions.

Priority Core SDGs and Key Performance Indicators

Material Issues	Key Actions	Core SDGs	Key Performance Indicators	Metrics	Deadline	Specific Measures
Key CSR Themes					(FY)
Relevant SDGs
Helping to solve social	Innovate infrastructure		Productivity improvement	10% or more	2025	R&D of technology
issues and create value	creation with leading-			(compared to FY2020)		that contributes to
for society	edge, high-quality		Number of patent applications	75/year		labor saving, automa-
	solutions			2025	tion, and disaster
Key CSR Themes	Continue to deliver				prevention and
				mitigation
Achieving the satisfaction	resilient, leading-edge
				Bolstering the life
of society and customers	lifestyle and economic
				cycle support
and earning their trust	foundations to society
				business
Working in harmony with
		Number of on-site tours	100 or more tours/	-	Promoting activities
the communities we serve
				year		that contribute to
			Environmental and social		2021	society and culture
			contribution activities (volunteer
			activities, participation in
			clean-up activities, etc.)
			- Civil engineering sites	3 times/site
			- Building construction sites	3 times/site
			- Offices	80 times/year
Protecting and	Continue rigorous		CO2 emission reduction rate	33% (compared to	2030	Promoting a low-
being attuned to the	efforts to reduce the		(Scope 1 and 2)	FY2017)		carbon business model
natural environment	Group's		Proportion of A rank or higher	60% or more	2021	Offering energy-saving
	environmental		in the simplified CASBEE rating			solutions
Key CSR Themes	footprint (low CO2		(Comprehensive Assessment			Using renewable
emissions, high		System for Built Environment			energy for in-house
Creating environmental
recycling rates,		Efficiency)			electricity
abundance
biodiversity					Investing in clean
	conservation)		Number of ZEB projects	5	2021	technology
	Actively develop		Proportion of renewable energy	80%	2030	Augmenting environ-
	services to help		used for electricity			mental site visits
	reduce society's					Promoting small
					environmental foot-
	environmental impact
					prints and high
						recycling rates at work
			Serious environmental incidents	0 cases	-
			sites, reducing waste
			Recycling of construction		2021	Developing life
			site waste			cycle assessment
			- Civil engineering: Reduction of	1 ton/construction cost		methodologies
			overall mixed waste volume	(100 millions of yen)
			- Building construction: Reduction	7 kg/total floor space
			of mixed waste intensity at new	(m2)
			construction projects
Promoting sustainable	Foster workplaces		Serious work-related accidents	0 cases	-	Preventing work-
management and	where diversity is		Frequency rate	0.40 or less	-	related accidents
taking full responsibility	valued, and					Promoting health
for corporate actions	employees can draw					management
on their individuality					Expanding recruit-
Key CSR Themes	and different abilities					ment of women
Inculcate respect for					Enabling fair and
Conducting fair and
	Ratio of female employees	15% or more	2025	fulfilling work,
rights and work
honest corporate activities
practices to protect		(full-time)			enhance employee
Creating safe, comfortable
employee health and					benefits, pursue
working environments
				personnel
safety
Engaging in dialogue
				development
with stakeholders
					Ensure thorough
						compliance
			Eight or more closures in four	100%	2021
			weeks
			CCUS* card clock-in rate	40%	2021
			Information security course	100%	-
			attendance
			Compliance training attendance	100%	-

• CCUS = Construction Career Up (=Advancement) System: A system that uses IC cards distributed to skilled workers to gather their on-site work history and qualifications based on industry standards.
  The card clock-in rate (work history record rate): the number of skilled workers who clocked in using card readers, etc., when entering construction sites ÷ the total number of skilled workers who entered construction sites.

HAZAMA ANDO CORPORATION 2 SUSTAINABILITY REPORT 2021

Engagement that Addresses Risks and Opportunities

To make steady headway in addressing the material themes the Group has identified, we are working to grasp fully the expectations, concerns, and demands of our stakeholders and build a mechanism to reflect these in our activities, while always being attentive to the risks and opportunities involved. Since the start of 2020, the COVID-19 pandemic has significantly impacted our ability to take action related to each key theme. Considering this context, we are implementing a PDCA cycle sensitive to changes in business and living styles in a "new normal" or "post-COVID" environment.

Social and environmental risks and opportunities facing the Group:

Elements that gained importance in the fiscal year ended March 2021

Risks Surrounding Our Businesses

Mounting calls for non-financial management approaches and financial implications

Changes to social and economic systems adapting to the pandemic and a post-pandemic world

Calls to enhance disclosure of climate change and diversity strategies

Impact of climate and disasters on business

Impact of the COVID-19 pandemic on order volumes in Japan and overseas

Ongoing reinforcement of business continuity plans in response to catastrophes

Increasingly sophisticated social expectations and technical requirements in line with infrastructure demand

Growing needs for infrastructure design that corresponds to business practices and lifestyles under the "new normal"

Customer demands to address digital transformation (DX) initiatives

Needs for further improvement in the occupational safety environment Reinforcing health and safety management amid the pandemic

Growing interest in society in non-crisis health management

Need for compliance and risk management across the supply chain Rigorous measures at each site to prevent COVID-19infection

Respect for human rights, including among overseas business partners

Opportunities to Contribute to Society and Pursue Mutual Flourishing

Improving customer satisfaction and contributing to society by building high-quality, resilient social infrastructure with superlative environmental performance

Heightened social expectations for low-carbon solutions, labor-saving solutions, and other solutions that address social change

Creating further value and boosting efficiency by incorporating digital technologies into our construction

Attracting quality personnel and building mutually flourishing relationships with excellent partner companies by promoting occupational safety and working style reforms

Expanding opportunities to secure more diverse human resources by offering flexibility in working styles

Pursuing technological innovation and boosting competitiveness by means of diverse human resources

Conducting fair and honest business activities, building relationships with and contributing to society by strengthening partnerships with local communities

Promoting a more open supply chain through more rigorous enactment of the Group's procurement policy

HAZAMA ANDO CORPORATION 3 SUSTAINABILITY REPORT 2021

Stakeholder Engagement

Amid ongoing changes in social values, to fulfill the Group's responsibilities as a member of society and continue to realize building operations that are of value to customers and society, Hazama Ando believes that the process of dialogue and collaboration with various stakeholders is essential. Based on this, we are taking advantage of various opportunities and pursuing initiatives to reflect the concerns of society in our corporate activities.

Stakeholder		Approach, Policy		Major Channels		Major Themes,
		for Dialogue		Areas of Interest
Customers		Attentive to the needs of customers and the demands and		Customer inquiry desk,		High-quality building oper-
		expectations of society, we will pursue secure, safe, high-quality		satisfaction surveys, busi-		ations, construction that
		"good building operations" based on our solid technological		ness activities		addresses social issues
		prowess. Through these operations, we will strive to bring about
		customer satisfaction, earn greater trust from society, and
		address social issues.
Shareholders and		By means of timely and appropriate disclosure and two-way		Meetings with investors		Timely and appropriate
Investors		dialogue, we will seek the evaluation of shareholders and inves-		and shareholders, general		disclosure, disseminating
		tors as appropriate. Their opinions and requests will also inform		meeting of shareholders,		information in terms of both
		our corporate activities, as we strive to enhance corporate value		results announcements		risks and opportunities
		by contributing to the advancement of society.		and briefings, investor and
				shareholder information
				website (timely disclosure,
				etc.), site tours
Business Partners,		By engaging in fair business practices and building a supply		Hazama Ando Cooperative		Occupational health and
Collaborating		chain that is sensitive to human rights, occupational health and		Association, business activi-		safety, appropriate con-
Companies		safety, and the environment, we will collaborate in helping to		ties, exhibitions, events		struction management, fair
	bring about a sustainable society and create social value, aiming				business practices
		to grow along with our partners.
Employees		To enable diverse employees to work securely, safely, and in a		Employee satisfaction		Occupational health and
		rewarding way as they reach their full potential, we will cultivate		surveys, regular interviews,		safety, consideration for
		working environments and various support systems and endeavor		labor-management consul-		diversity, career develop-
		to treat employees fairly and support career development.		tations, employee helpline		ment, fair treatment
Local		Through our business activities and social contribution activities		Social and cultural contri-		Support for local communi-
Communities		in various regions, we will contribute to the advancement of local		bution activities, site tours,		ties, including harmonious
		communities and the cultivation of future generations, fulfill our		hands-on workshops		relationships and cultivation
		duties as a corporate citizen, and seek to coexist with the com-				of future generations
		munities we serve.

Our CSR Policy

Pursuing rigorous CSR management and helping to bring about a sustainable society are the essential mission of a company. Guided by this conviction, Hazama Ando has established a CSR Policy and is implementing various activities to realize the policy's aims. Going forward, to further reinforce our efforts involving the SDGs and ESG and carry forward the themes set forth in the Group's materiality, we will continue to instill in every employee the policy that forms the backbone of our CSR activities. We will also work together across the Group to meet the ever-increasing expectations of society for a truly sustainable corporate strategy.

CSR Policy

Through the practice of secure, safe, high-quality "good building operations" that draw on sound technology and passionate commitment, Hazama Ando will contribute to the advancement of society and our customers and seek to bring about an abundant, bright future.

HAZAMA ANDO CORPORATION 4 SUSTAINABILITY REPORT 2021