Takuma’s Management Principles state, “Takuma will strive for social contribution, corporate value enhancement, long-term corporate development and the satisfaction of all stakeholders by providing goods and services that are needed and recognized as valuable in society”. Vision 2030, our long-term vision for the year 2030, includes this statement: “Aim to maintain our role of being an indispensable presence in society as a leading company in the field of renewable energy utilization and environmental protection by realizing sustained growth alongside our customers and society through implementation of ESG management”. In addition, the 14th medium-term management plan calls on the Group to practice ESG management as it implements the long-term vision, and we are advancing sustainability initiatives through measures specified in the plan in accordance with the Management Principles and the long-term vision.
In order to realize sustained growth alongside our customers and society by implementing ESG management as set forth in our long-term vision, the company approached the task of formulating the 14th medium-term management plan by organizing various ESG issues from the dual standpoints of their importance for stakeholders on the one hand, and their importance for the Group on the other. This process led to the identification of seven Key Issues (Materiality) that deserve to be given priority by the Group. In addition, we have established initiatives and KPIs (financial targets) for the critical issues identified through our business activities. In the 14th medium-term management plan, we will continue to promote the initiatives formulated in the 13th medium-term management plan through our business activities. In addition, we have set new KPIs related to "Employee engagement" and "Customer satisfaction". Efforts through business activities are reflected in the medium-term management plan actions.
Key Issues (Materiality)
To identify key issues, we followed a process overseen by the Executive Manager of Corporate Planning & Administration Division (the officer who oversees the formulation of the medium-term management plan) that consisted of the following steps: analyzing the status quo and organizing issues, evaluating their importance and verifying suitability (evaluating and analyzing risks and opportunities), identifying key issues, and establishing initiatives to address issues and associated KPIs. In addition, progress in each step was reported to management as appropriate and ultimately reported to the Board of Directors following deliberation by the Committee of Executive Officers and approval by the president.
The Board of Directors receives reports on performance against KPIs once a year and oversees sustainability initiatives. In addition, the Committee of Executive Officers receives reports on the status of measures and initiatives set forth in the medium-term management plan from divisions and group companies, and it evaluates and oversees risks and opportunities related to sustainability. Outside directors exercise oversight through reports from directors who are Standing Audit & Supervisory Committee members.
Reflecting the need to review key issues on a regular basis in response to changes in the management environment, we consider whether issues need to be revised every three years when we formulate a new medium-term management plan.
To address risks and opportunities related to the key issues, we’ve divided the seven key issues into 19 sub-issues and established the initiatives described in “Key issues and initiatives through business activities” below.
Key issues and initiatives through business activities
The following describes Takuma’s KPIs and progress towards them as of the end of FY2023.
| Materiality | KPI | Target | Progress (FY2023) | ||||
|---|---|---|---|---|---|---|---|
| Materiality | Helping combat climate change | KPI | 1. Magnitude of potential reduction in CO2 emissionsdue to newly delivered power plants (Possible reductions in CO2 emissions from newly delivered power plants) | Target | FY2023: 800,000 tons per year FY2026: 1.25 million tons per year FY2030: 2.5 million tons per year |
Progress (FY2023) | 806,000 tons per year(*1) |
| Materiality | KPI | 2. In-house CO2 emissions reductiontargets | Target | FY2023, FY2026, FY2030: Zero effective CO2 emissions(*2-7) | Progress (FY2023) | 0 tons per year(*8) | |
| Materiality | Strengthening relationships of trust with customers and communities | KPI | Customer satisfaction | Target | Highest rating 60% or more(*9) | Progress (FY2023) | Newly established from FY2024 |
| Materiality | Promoting activities of humanresources | KPI | 1. Number of main career track and managementpositions filled by women | Target | At least 35 (cumulative total for FY2021 to FY2025) | Progress (FY2023) | 29 (cumulative total for FY2021 to FY2023) |
| Materiality | KPI | 2. Utilization of parenting support programs | Target | At least 25% (average for FY2021 to FY2025) | Progress (FY2023) | 44% (average for FY2021 to FY2023) | |
| Materiality | KPI | 3.Employee engagement | Target | Highest rating 50% or more(*10) | Progress (FY2023) | Newly established from FY2024 | |
| Materiality | Ensuring safety and health | KPI | Number of fatal accidents | Target | 0 | Progress (FY2023) | 0 (FY2023 Actual) |
| Materiality | Strengthening corporategovernance | KPI | Number of serious compliance violations | Target | 0 | Progress (FY2023) | 0 (FY2023 Actual) |
(*1) Calculated based on available generating capacity (renewable energy) as of one month after delivery for plants delivered in FY2021 and FY2023 (four waste treatment plants, two sewage sludge plant, and fifteen biomass plants).
(*2) FY2023 effective CO2 emissions from Scope 1 and Scope 2 at the Takuma Head Office and Harima Factory
(*3) FY2026 effective CO2 emissions from Scope 1 and Scope 2 at the Takuma Head Office and Harima Factory and branches, FY2030 effective CO2 emissions from Scope 1 and Scope 2 at all Takuma domestic worksites: Head Office, branch companies, branches, factories, and construction sites
(*4) The Scope 1 target includes offsets using environmental value such as J-credits.
(*5) The Scope 2 target is calculated using post-adjustment emission factors.
(*6) FY2030 targets including group companies remain under consideration.
(*7) CO2 emmisions from procured products and use of Takuma products by customers (Scope 3) also remain under consideration.
(*8) Purchase J-credits equivalent to Scope 1 emissions in FY2023, achieving the FY2023 target of zero actual CO2 emissions for Scope 1 and Scope 2 at the Takuma Head Office and Harima Factory.
Please see below for details.Disclosure based on TCFD recommendations
(*9) The percentage of respondents giving the highest rating for questions (on a 4-point scale) about customer service and overall product quality in the Customer Satisfaction Survey.
(*10) The percentage of respondents giving the highest rating for each question (on a 5-point scale) on job satisfaction and pride in the company in the Employee Attitude Survey.
In addition to identifying “Helping combat climate change” as a key issue that should be addressed on a priority basis, we support the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), and we’re formulating measures to reduce risk and create opportunities related to climate change. Please see below for more information about strategies related to measures addressing climate change and scenario analysis.
Disclosure based on TCFD recommendations
We've adopted the following Policy on Human Resource Development and Policy on Takuma's Internal Environment Improvement:
In an effort to precisely identify changes in the market environment and diversifying customer needs and contribute to the long-term, sustained development of society through the resolution of customers’ issues, we will hire human resources with diverse values and backgrounds, improve employees’ skills, provide opportunities for them to use those skills, and encourage their growth.
We are working to put in place human resources programs and a workplace environment that boost motivation while making it easy for employees to do their jobs so that a diverse workforce can pursue careers at Takuma over the long-term.
We’re working to hire new graduates and mid-career employees and to actively hire diverse human resources and develop career support programs as part of a series of initiatives to address the key issue of “Promoting activities of human resources” through our business activities. Because our hiring centers on technical jobs, most of the employees we hire have an engineering background such as mechanical or electrical engineering, civil engineering, or architecture, or have plant-related experience. Due to the small number of women in these fields, only a small percentage of main career track and management positions are filled by women, who also occupy only a small percentage of management positions. As a result, we focus on hiring women for main career track and management positions as part of a medium- and long-term effort to increase female participation in management from a human resource diversity standpoint. Moreover, we’re working to increase our points of contact with female students in connection with new-graduate hiring, for example through participation in corporate research projects for female students organized by local governments and in joint information sessions for female students.
We’re working to build an effective training system as part of a series of initiatives to address the key issue of “Promoting activities of human resources” through our business activities. In addition to training (OJT) received in the workplace, we’re working to enhance rank-specific and field-based training program structures. We’ve identified growth in the number of mid-career hires in recent years and a diversification of values, and we’re offering training around the theme of how to communicate effectively to promote mutual understanding among employees and to build internal networks. Furthermore, we're working to improve employees’ skills, for example by strengthening logical thinking ability and improving IT literacy.
We’re working to build optimal human resources structures that align with changes in society as part of a series of initiatives to address the key issue of “Promoting activities of human resources” through our business activities. We’ve put in place human resources structures that help employees balance their work with childcare, nursing care, and other responsibilities, including childcare leave, nursing-care leave, flex time, telework, and shortened working hours.With regard to structures related to childcare support, we're working to cultivate a workplace culture that encourages use of such programs, for example by providing information to eligible employees in a one-on-one setting.
Please see below for more information about the specific initiatives we’re taking to enhance human capital.
Promoting Activities of Human Resources
