安藤・間（1719） – [Delayed]SUSTAINABILITY REPORT 2021

SUSTAINABILITY REPORT 2021INDEX1 Hazama Ando’s Sustainability Strategies5 Materiality 1Helping to solve social issues and create value for society 6 Activity Highlights 7 11 Achieving the satisfaction of society and customers and earning their trust Working in harmony with the communities we serve14 Materiality 2Protecting and being attuned to the natural environment 15 Activity Highlights 16 Creating environmental abundance 20 Environmental Factsheet29 Materiality 3Promoting sustainable management and taking full responsibility for corporate actions 30 Activity Highlights 31 Conducting fair and honest corporate activities 35 Creating safe, comfortable working environments 39 Engaging in dialogue with stakeholdersMateriality1Materiality2Materiality3Ambition to ActionHazama Ando’s Sustainability StrategiesAt 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 MaterialityMateriality 1  Helping to solve social issues and create value for societyCreate new value in various facets of our businesses and flourishing alongside the communities we serve as we move toward the realization of a sustainable societyKey CSR ThemesKey Performance IndicatorsRelevant SDGsAchieving the satisfaction of society and customers and earning their trust Working in harmony with the communities we serveProductivity improvement (fiscal 2025 target)(Compared to fiscal 2020)Patent applications (fiscal 2025 target) Over 10%75/yearMateriality 2  Protecting and being attuned to the natural environmentContribute 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 generationKey CSR ThemesKey Performance IndicatorsRelevant SDGsCreating environmental abundance CO2 emissions reduction (fiscal 2030 target)Total reduction rate for Scope 1 and Scope 2 emissions (compared to fiscal 2017)Use of electricity from renewable energy sources(fiscal 2030) 33%80%Materiality 3  Promoting sustainable management and taking full responsibility for corporate actionsRealize fair and honest business practices across the supply chain as the foundation for sustainable managementKey CSR ThemesKey Performance IndicatorsRelevant SDGsConducting fair and honest corporate activitiesCreating safe, comfortable working environmentsEngaging in dialogue with stakeholdersSerious work-related accidentsCompliance training participation rate0 cases100%1HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Pursuing Further Value CreationIdentifying Core SDGs and Disclosing Key Performance IndicatorsTo 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 perfor-mance 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 IndicatorsKey ActionsCore SDGsKey Performance IndicatorsMetricsDeadline (FY)Specific MeasuresMaterial IssuesKey CSR ThemesRelevant SDGsHelping to solve social issues and create value for societyKey CSR Themes Achieving the satisfaction of society and customers and earning their trust Working in harmony with the communities we serve Innovate infrastructure creation with leading-edge, high-quality solutions Continue to deliver resilient, leading-edge lifestyle and economic foundations to societyProtecting and being attuned to the natural environmentKey CSR Themes Creating environmental abundance Continue rigorous efforts to reduce the Group’s environmental footprint (low CO2 emissions, high recycling rates, biodiversity conservation) Actively develop services to help reduce society’s environmental impactPromoting sustainable management and taking full responsibility for corporate actionsKey CSR Themes Conducting fair and honest corporate activities Creating safe, comfortable working environments Engaging in dialogue with stakeholders Foster workplaces where diversity is valued, and employees can draw on their individuality and different abilities Inculcate respect for rights and work practices to protect employee health and safety R&D of technology that contributes to labor saving, automa-tion, and disaster prevention and mitigation Bolstering the life cycle support business Promoting activities that contribute to society and culture Promoting a low-carbon business model Offering energy-saving solutions Using renewable energy for in-house electricity Investing in clean technology Augmenting environ-mental site visits Promoting small environmental foot-prints and high recycling rates at work sites, reducing waste Developing life cycle assessment methodologies Preventing work-related accidents Promoting health management Expanding recruit-ment of women Enabling fair and fulfilling work, enhance employee benefits, pursue personnel development Ensure thorough compliance Productivity improvement Number of patent applications10% or more(compared to FY2020)75/year Number of on-site tours100 or more tours/year Environmental and social contribution activities (volunteer activities, participation in clean-up activities, etc.)- Civil engineering sites- Building construction sites- Offices CO2 emission reduction rate (Scope 1 and 2) Proportion of A rank or higher in the simplified CASBEE rating (Comprehensive Assessment System for Built Environment Efficiency) Number of ZEB projects Proportion of renewable energy used for electricity580%3 times/site3 times/site80 times/year33% (compared to FY2017)60% or more20302021 Serious environmental incidents Recycling of construction site waste- Civil engineering: Reduction of overall mixed waste volume- Building construction: Reduction of mixed waste intensity at new construction projects0 cases1 ton/construction cost (100 millions of yen)7 kg/total floor space (m2) Serious work-related accidents Frequency rate0 cases0.40 or less—— Ratio of female employees (full-time)15% or more202520252025—202120212030—202120212021—— Eight or more closures in four weeks CCUS* card clock-in rate Information security course attendance Compliance training attendance100%40%100%100%2* 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 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 based on industry standards.skilled workers who entered construction sites.HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Engagement that Addresses Risks and OpportunitiesTo 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 2021Risks Surrounding Our BusinessesMounting 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 strategiesImpact 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 catastrophesIncreasingly 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) initiativesNeeds for further improvement in the occupational safety environment Reinforcing health and safety management amid the pandemic Growing interest in society in non-crisis health managementNeed for compliance and risk management across the supply chain Rigorous measures at each site to prevent COVID-19 infection Respect for human rights, including among overseas business partnersOpportunities to Contribute to Society and Pursue Mutual FlourishingImproving customer satisfaction and contributing to society by building high-quality, resilient social infrastructure with superlative environmental performancesocial change Heightened social expectations for low-carbon solutions, labor-saving solutions, and other solutions that address Creating further value and boosting efficiency by incorporating digital technologies into our constructionAttracting 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 resourcesConducting 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 policy3HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Stakeholder EngagementAmid 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.StakeholderApproach, PolicyCustomersAttentive to the needs of customers and the demands and expectations of society, we will pursue secure, safe, high-quality “good building operations” based on our solid technological prowess. Through these operations, we will strive to bring about customer satisfaction, earn greater trust from society, and address social issues.Shareholders and InvestorsBy means of timely and appropriate disclosure and two-way dialogue, we will seek the evaluation of shareholders and inves-tors as appropriate. Their opinions and requests will also inform our corporate activities, as we strive to enhance corporate value by contributing to the advancement of society.Major Channels for DialogueMajor Themes, Areas of InterestCustomer inquiry desk, satisfaction surveys, busi-ness activitiesHigh-quality building oper-ations, construction that addresses social issuesTimely and appropriate disclosure, disseminating information in terms of both risks and opportunitiesMeetings with investors and shareholders, general meeting of shareholders, results announcements and briefings, investor and shareholder information website (timely disclosure, etc.), site toursBusiness Partners, Collaborating CompaniesBy engaging in fair business practices and building a supply chain that is sensitive to human rights, occupational health and safety, and the environment, we will collaborate in helping to bring about a sustainable society and create social value, aiming to grow along with our partners.Hazama Ando Cooperative Association, business activi-ties, exhibitions, eventsOccupational health and safety, appropriate con-struction management, fair business practicesEmployeesLocal CommunitiesTo enable diverse employees to work securely, safely, and in a rewarding way as they reach their full potential, we will cultivate working environments and various support systems and endeavor to treat employees fairly and support career development.Employee satisfaction surveys, regular interviews, labor-management consul-tations, employee helplineOccupational health and safety, consideration for diversity, career develop-ment, fair treatmentThrough our business activities and social contribution activities in various regions, we will contribute to the advancement of local communities and the cultivation of future generations, fulfill our duties as a corporate citizen, and seek to coexist with the com-munities we serve.Social and cultural contri-bution activities, site tours, hands-on workshopsSupport for local communi-ties, including harmonious relationships and cultivation of future generationsOur CSR PolicyPursuing 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.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.CSR Policy4HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Helping to solve social issues and create value for societyOverview of 2020 ResultsTo address the material issue of helping to solve social issues and create value for society, the Group is implementing PDCA activities based on two key CSR themes. Under the key theme of achieving the satisfaction of society and customers and earning their trust, we are pursuing operations that are deeply connected to Goals 9 and 11 of the SDGs, which we identified as core SDGs for this materiality. In the fiscal year ended March 2021, we actively developed technologies, construction methods, and management systems utilizing ICT, AI and building/construction information modeling (BIM/CIM) technology. Our goal was ongoing improvement in customer satisfaction by means of greater productivity, comfort, resilience, and quality control. Our achievements have been recognized by various awards. Under the key CSR theme of working in harmony with the communities we serve, we continue to undertake corporate citizenship activities, working to contribute to and participate in local communities as a member of society. As in the previous fiscal year, in the fiscal year ended March 2021, the COVID-19 pandemic required special care for various events. We engaged in cultural contribution activities and held site tours and other events appropriately while taking pains to prevent infection.HAZAMA ANDO CORPORATION 5 SUSTAINABILITY REPORT 2021Materiality1Materiality 1 Helping to solve social issues and create value for societyActivity Highlights1Proactive Use of BIM TechnologyWe are constructing a cross-process building information modeling (BIM) platform that leverages digital information across the entire building life cycle, from initial and basic project planning and implementation design to the drafting of estimates and the building production process, up through building maintenance and operation. One highlight in the fiscal year ended March 2021 was our participation in a joint project of the Ministry of Land, Infra-structure, Transport and Tourism’s BIM Promotion Committee. The project aimed to verify the effectiveness of a BIM work-flow and analyze issues in integrated design-build methods. Staff from throughout our design and construction divisions took part. Through this project, we established a front-load-ing BIM workflow that closely links BIM data with all processes from design to construction, enabling rapid, agile decision making. This positions us to incorporate production blue-prints, construction methods, and other building production information into the design stage, improving both quality and productivity while reducing environmental impact. We upgraded the Production Design Office, which was responsible for linking data across the design and construc-tion stages, to a full-fledged department, to more intensively promote cross-process BIM and harness the effectiveness of a front-loading workflow starting in the fiscal year ending March 2022. This provides us with a framework for centrally managing production design BIM, BIM production blue-prints, and construction BIM. At the same time, we have assigned key BIM personnel to the Construction Technology Management Division, Project Promotion Department, and Construction Management Department, strengthening the BIM implementation framework Group-wide. We are employing BIM for all projects carrying construc-tion costs of over 1 billion yen. We are also implementing a front-loading BIM workflow for design-build projects (where we carry out both design and construction services). From the fiscal year ending March 2022, we will expand BIM work-flows into the maintenance field as well.By further cultivating the use of BIM throughout the building life cycle from design to construction and mainte-nance, we are working to create high added value that com-bines safety, high quality, high productivity, and low cost. In this way, we aim transform the building production system into one which can “contribute to enhancing society by construction,” as stated in our Corporate Philosophy.Front-loading at the design stage.Front-loading at the production design stage.Activity Highlights2Supporting the Art of Possibility Project: Posting Works by Artists with Disabilities at Construction SitesHazama Ando is supporting the Art of Possibility Project* jointly undertaken by Toppan Printing Co., Ltd., NPO Sup-port Center DREAM, and the Borderless Art Organization foundation by posting work by artists with disabilities on the temporary walls enclosing construction worksites. Seen by countless passers-by, the walls serve as a platform making the artists’ work widely available to the public. As of May 2021, artwork had been exhibited at 10 sites nationwide. We will continue this initiative to help build a society in which artists with disabilities can continue to find fulfillment through creative activities.* An initiative that places value on artwork created by artists with disabilities (“art of possibility”), aiming both to address the social issue of supporting the indepen-dence of persons with disabilities and to pursue economic activities.A child passing by observes the work of an artist.6HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyRelevant SDGsAchieving the satisfaction of society and customers and earning their trustBy providing society with high-quality buildings backed by superior technology, Hazama Ando is striving to boost customer satisfaction and earn society’s trust.Policies and ApproachApproachCivil engineering and building construction provide Hazama Ando’s points of contact with society. Thus, the first step toward contributing to society is our commitment to achieve “good building operations” that are responsive to the needs of customers, offering high quality at a fair cost. We want to earn the trust of society at large by continuing to support the daily lives of people through highly reliable buildings.Quality PolicyPromote construction activities using reliable technology, contributing to society and seeking customer satisfaction.1 Understand customer demands and legal requirements, and see situations from the customer’s perspective.2 Pursue activities that add greater value at each stage of sales, design, construction, and follow-up support.3 Develop and implement new technologies to address the further expectations of customers and society.4 Continuously improve quality management systems and pursue high quality.Pillars Supporting Our Initiatives and Promotion Framework1. Quality Control and Improvement EffortsBased on our quality management systems, the Group is engaged in production activities to boost customer satis-faction at each stage of sales, design, construction, and follow-up support. Under the leadership of the representative director, the director of the Construction Division, who oversees civil engineering and construction operations as well as technology and R&D, is in charge of quality control, and also promotes efforts to maintain and improve quality control. We are also making continuous improvements through management reviews and internal audits, and ensuring that these are implemented at each branch and construction site.2. Forward-Looking Development of Technology and Construction MethodsWe have a two-fold approach to research and techno-logical development: construction technology directly tied in with construction sites, carried out by the civil engineering and construction technology management divisions of the Construction Division; and R&D of basic and advanced technologies undertaken by the Technical Research Institute. The various technology management divisions are in charge of developing technology that supports construction in specific projects; they imple-ment and guide the use of technology on site. The Tech-nical Research Institute is concerned with longer-term issues, advancing R&D of new technological areas rang-ing from basic to cutting-edge technologies. We have also established an Innovation Department, under the direct control of the president, to plan and carry forward new businesses that contribute to the diver-sification of the Group’s earnings base, and to plan and implement IT solutions that increase operating efficiency.Quality management system promotion frameworkHead OfficeConstruction DivisionBusiness Development DivisionBranchesTop managementDivision directorBranch directorDivision managerSite supervisorTechnical Research InstituteDivision managerSafety, Quality and Environment DivisionSupportDivision director7SupportSafety and Environment DepartmentHAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyAchieving the satisfaction of society and customers and earning their trustPillars Supporting Our Initiatives 1: Quality Control and Improvement EffortsGroup. We will continue to jointly develop the system and promote its in-house deployment and integration with our BIM and other in-house systems.Startup for Cloud-Based Selection of Building Materials: Digital Transformation through Open InnovationAs adopted in the Hazama Ando Accelerator Program 2019, formulated to promote open innovation, in December 2020 we invested roughly 100 million yen in Truss Inc. Truss is a startup venture that operates “truss,” a cloud-based service for selecting building materials, which compares and examines materials from among various manufacturers to find the best products. Since July 2019, we have been jointly developing a finish schedule system with Truss using the truss platform. With the system, building design departments can create a finish schedule in less time and immediately share information about the schedule. Also capable of linking to building information modeling (BIM) platforms, the system is expected to contribute to digital transformation. The recent investment is positioned to get the truss business fully up and running while expanding its scope, as well as to generate further business synergies with the Finish schedule system.Various AwardsNumerous technologies and projects developed by the Group have been recognized with awards.Granting organizationAwardTechnology, projects recognizedAtomic Energy Society of Japan (AESJ)52nd Atomic Energy Society of Japan Award (2019)Radiation Shielding Handbook (Basic, Applied) (author: Koichi Okuno, Senior Researcher, Technical Research Institute)Hokkaido Branch, East Nippon Expressway Co., Ltd.Fiscal 2020 Excellence in Construction and Excel-lence in Construction Process Management Sasson Expressway Zenibako Interchange ReconstructionTohoku Electric Power Co., Inc.Miyagi Power Engineering Center Director’s AwardShin-Sendai Thermal Power Station service road and other improve-ment work and related removal workPublic Buildings Association17th Public Buildings Award for ExcellenceKunimi Town Hall, Fukushima PrefectureFiscal 2019 Excellence in Construction and Excel-lent Construction Engineer AwardYokokan Nanei Interchange/Junction Substructure (No. 28) ConstructionSupervising Engineer Takeshi SuwabeMinistry of Land, Infrastructure, Transport and Tourism Kanto Region Development BureauMinistry of Land, Infrastructure, Transport and Tourism Kanto Region Development BureauFiscal 2019 Excellence in Construction and Excel-lent Construction Engineer Award2016 New Construction of Shakusui Sluice GateSupervising Engineer Kiyoshi OwadaClay Science Society of JapanFiscal 2020 Technology AwardResearch and technological development for large-scale bentonite construction used in radioactive waste disposalJapan Society of Civil Engineers (JSCE)Construction Management CommitteeFiscal 2019 Public Procurement Symposium Good Practice AwardUse of early contractor involvement (ECI) approach in Futaenotoge Tunnel to support faster disaster recoveryJapan Society of Civil Engineers (JSCE)Construction Management CommitteeFiscal 2019 Public Procurement Symposium Excellent Lecture AwardFutaenotoge Tunnel Construction (Aso Block) Using ECI Approach Deputy Site Supervisor Arata YonedaFiscal 2020 CFT Structural AwardShikokuchuo City New Government BuildingConstruction Technology Expo 2020 Kinki Featured Technology AwardConstruction progress management system using 4K fixed-point camera imagesAssociation of New Urban Housing TechnologyThe Nikkan Kensetsu Kogyo Shinbun, Ltd. (Daily Engineering & Construction News), Kinki Construction AssociationJapan Construction Machinery and Construction Association (JCMA)Fiscal 2020 Construction and Construction Machinery Symposium Excellent Paper AwardTokyo Charming Construction’s Identity (CCi)1st CCi Tokyo Young Engineer/Female Engineer Achievement AwardDevelopment of a system for AI to automatically detect construc-tion machines from videosKentaro HayakawaKita-Tama No. 2 Water Reclamation Center Pump Station Construc-tion and Seismic Retrofitting Shota Kusuyae, Kanako KomuraJapan Society of Civil Engineers (JSCE)Fiscal 2020 Japan Society of Civil Engineers Outstanding Civil Engineering Achievement AwardAchieving fast reopening of disaster recovery lifeline by applying ECI approach to Futaenotoge Tunnel constructionJapan Society of Civil Engineers (JSCE)Fiscal 2020 Japan Society of Civil Engineers Outstanding Civil Engineering Achievement AwardTakao River Underground Bypass Channel Project: Building an underground bypass channel directly under a river flowing through a densely populated residential areaTohoku Electric Power Network Co., Inc.Certificate of Commendation (for Major Contribu-tions to Stable Electric Power Supply)Civil engineering work for Nagamachi-minami Subway Line cable replacement construction8HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyAchieving the satisfaction of society and customers and earning their trustPillars Supporting Our Initiatives 2: Forward-Looking Development of Technology and Construction MethodsNew Crack Inspection Method Using Autonomous Driving Floor Crack Detection Robot: More Efficient Inspection with RobotsAmid concerns about a shortage of skilled workers in the construction industry, labor saving in construction work and efficiency in inspection work have become pressing issues. In response, in collaboration with iXs Co., Ltd., we developed an autonomous driving crack inspection robot capable of auto-matically inspecting the floors of spacious structures for cracks. Photographing the floor while moving autonomously, the robot immediately detects cracks 0.1 millimeter or wider, applying AI to photographic images to color-code cracks in 0.1-millimeter units. Results are automatically displayed as a schematic. The robot saves labor and the time needed for inspection and creating schematics of cracked areas, lower-ing manhours to about 40% compared to the conventional Based on this technology, the Group established a new close-up visual inspection. Also, one person can operate multiple robots using a tablet-based monitoring system that tracks the robots’ inspection status. crack inspection method for concrete floors. We verified the effectiveness of the system in the spring of 2021, employing it as a building inspector to inspect all warehouse floors of a newly built, four-story logistics facility—a total of about 45,000 square meters. We will phase in the robot to inspect for cracks at logis-tics and manufacturing facilities built by the Group, aiming to boost the efficiency of inspection work and productivity at work sites.Crack widths.The robot inspects for cracks at a construction site.A crack is detected and color-coded.Development of Waterless Drill Boring Technique for Use in a Wide Range of Ground ConditionsJapan is currently undertaking a large-scale renewal of expressway tunnels. A water-based drilling method is typi-cally used when boring mountain tunnels. However, with swelling ground or other unfavorable ground conditions, using water to drill disturbs the ground, and methods that do not use water are considered more effective. Moreover, depending on the mountain, different ground conditions and groundwater levels are to be expected when drilling. In collaboration with a company specializing in foundation work, the Group developed a boring technique that enables waterless drilling with a wide range of geological properties. With a view to applying the technique to renewal work inside expressway tunnels that are in service, the technique uses an ultra-compact drill with superior mobility, and equip-ment compact enough to be loaded on a normal vehicle. The technique achieves efficient work in limited spaces. This technique is distinguished by its use of air rather than water, and a screw attached to the boring rod. The drill can perform boring work at various angles. We conducted trials under multiple ground conditions, including in actual tunnels, confirming the technique’s reliability for boring work. Going forward, we aim to apply the technique to expressway renewal work and other projects, focusing on measures to prevent ground heaving inside in-service expressway tunnels.In-service laneDownward lock boltAir compressorDust containment equipmentUltra-compact drill9Image of boring work inside an in-service expressway tunnel.Trial construction in a tunnel.HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyAchieving the satisfaction of society and customers and earning their trustTrials of Automated Construction Machinery with KobelcoThe Group is working on the development of ICT-based automated operating systems for construction machinery, with the aim of improving productivity at construction sites. Construction at sites requires multiple types of machinery, and to date we have developed an automated operating system for vibration rollers and bulldozers. we also developed automated technology for the power shovels that are widely used at construction sites. In Novem-ber 2020, at our Technical Research Institute, we conducted a trial in which one human operator controlled an auto-mated shovel while operating a normal power shovel manu-ally. Specifically, the autonomous driving shovel scooped up Recently, with Kobelco Construction Machinery Co., Ltd., excavated dirt and loaded it onto a dump truck, while the manual power shovel provided the dirt to be loaded. The human operator “taught” the automated shovel before-hand, recording operating data. The trial confirmed that automated operation based on such data performed as expected. In addition, AI enabled the power shovel to “rec-ognize” the shape of a mound of dirt and a dump truck. Building on this information, the automated shovel carried out its work, making adjustments along the way. Kobelco Construction Machinery will continue to work together to develop even more advanced automated oper-ating technology for more practical applications.Based on the results of this joint research, the Group and Automated operation trial for a power shovel.The shovel automatically detects the dump truck bed.Developing a Remote Operating System for Mobile Crushers with Continuous Belt ConveyorsThe Group is moving forward with development of an inte-grated mountain tunneling management system (i-NATM®), seeking to use ICT to significantly boost productivity in tunnel-ing work. As part of this effort, in collaboration with Aoyama Kiko Co., Ltd. and Taguchi Industry Inc., we developed a mobile crusher remote operating system, with the goal of improving safety and applicability in tunnel construction. The system works with mobile crushers that use a continuous belt conveyor to transport rock scraps created by tunneling. tablet installed in the cab of a wheel loader. While monitor-The mobile crusher can be operated remotely using a ing the crushing status of excavated rock scrap by camera, the operator can adjust the operation of the crusher as needed and add more scrap rock, simplifying the scrap loading process. Also, since it does not require a worker to monitor crushing status and operate equipment on the crusher in person, the system helps to save labor and improve safety. Going forward, we plan to phase in this system for tunnel-ing work that uses continuous belt conveyor systems, target-ing significant improvements in construction productivity.Mobile crusher (owned by Aoyama Kiko).Tablet-based operation.10HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyRelevant SDGsWorking in harmony with the communities we serveAs a corporate citizen, the Group places high value on our relationships with the various communities we serve through our operations and work proactively to maintain and foster harmony in the community.Policies and ApproachApproachBuilding operation sites are supportable only with daily cooperation between the Group and local residents. We will continue to contribute to the various communities that make up the regional societies in which we work, fulfilling our duties as a corporate citizen.We view as an equally important corporate responsibility our actions, as a Group entrusted with education and culture, to contribute to the younger generation as they prepare to shape the future. We are promoting activities in multiple directions to this end.Pillars Supporting Our Initiatives1. Activities that Contribute to Society  2. Activities that Contribute to CulturePillars Supporting Our Initiatives 1: Activities That Contribute to SocietySite Tours and Other ActivitiesWe hold tours at our various sites for local residents and elementary, junior high, and high school students, to pro-vide a venue for interaction with the community and to gain greater understanding of our business. We also carry out a range of CSR activities at these sites. Kanto Branch: Temporary Wall Spray Paint Art Exhibit at AEON MALL Kawaguchi Construction SiteThe Group took steps to reach out to the local community at the new construction site of the tentatively named AEON MALL Kawaguchi (customers: Saibo Co., Ltd., AEON MALL Co., Ltd.) in Kawaguchi, Saitama Prefecture. We installed electronic signage on the temporary walls enclosing the site to visualize noise, vibration, and dust, confirm the work schedule, and allow people to write opinions on a bulletin board. We also provided the art club of the local Hatogaya High School with about a 500-meter-long, 3-meter-high section of wall to serve as a vast canvas for spray paint art. The spray paint art, created by 19 members of the art club with the theme of “four seasons,” transformed the cold, impersonal walls blocking off the site into a lively and colorful space, which drew the attention of local residents. After the artwork was completed, the Group used a drone video camera to capture both the artwork on the wall and the artists, and presented the club with the video.Temporary wall spray art exhibit.Artists at work creating their art.11HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyWorking in harmony with the communities we serveIn addition to talking about “working vehicles,” we allowed attendees to Tokyo Branch: Exploring Heavy Construction Equipment at Takamatsu KindergartenOn the site of the seismic reconstruction work on the playroom wing and second building of Takamatsu Kindergarten (customer: Doukanyama Gakuen) in Tokyo’s Nerima Ward, the Group held an event to allow kindergarten chil-dren and their parents to see and touch heavy construction equipment. climb on board the heavy construction equipment. By actually sitting in the operator’s seat and touching the equipment, children could feel more familiar with the construction industry. At a time when the COVID-19 pandemic limited the events that could be carried out at the kindergarten, this event, held as a part of recreation, helped to give children an unforgettable experience. We will continue to engage in activities to convey the appeal of the con-struction industry to children.Operations of Memento Display Hall in Fukushima Prefecture Wind DownNamie-machi, in the Futaba District of Fukushima Prefecture, was one of the towns damaged in the Great East Japan Earthquake. The Group was tasked by the Ministry of the Environment to help with recovery by collecting, transporting, and sorting wreckage in tsunami-hit areas. During this work, we unearthed an array of items from before the earthquake, such as photos, memorial plaques, school supplies, toys, stuffed animals, and mobile phones. As an extension of our cleanup operations, we opened a Memento Display Hall in July 2014 to store and display about 17,000 discovered items, hoping to return items to their owners. We operated the Display Hall for roughly six and a half years, but given the decline in people coming to pick up lost items in recent years, closed the doors on March 21, 2021, ten years after the earthquake. Altogether, more than 10,000 people visited the venue, and we were able to return about 2,700 mementos to their owners.Children learning about “working vehicles.”Items on display in the Memento Display Hall.PR at the Technical Research InstituteThe Technical Research Institute, which opened in 1992 in Tsukuba, Ibaraki Prefecture, has been carrying out R&D for more than a quarter of a century. Since its opening, the Institute has served as a venue for publicizing the activities not only of Hazama Ando but of the construction industry as a whole, as we have invited a host of visitors to discuss how the infrastructure of people’s lives is created. Although visits were suspended in the fiscal year ended March 2021 over COVID-19 concerns, a typical year includes various events. During Science and Technology Week, for example, there is a tour of the Institute for the general public, sponsored by the Ministry of Education, Culture, Sports, Science and Technology. There is a science and technology promotion program for elementary school students, called “Tsukuba Little Professors.” We also offer on-site hands-on workshops for Japanese and foreign students. To gain aware-ness of our technology going forward, we will continue to proactively interact with people in Japan and overseas.“Tsukuba Little Professors” visit (held prior to the COVID-19 pandemic).Students participate in an on-site hands-on workshop (held prior to the COVID-19 pandemic).12HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 1 Helping to solve social issues and create value for societyWorking in harmony with the communities we servePillars Supporting Our Initiatives 2: Activities that Contribute to CulturePreserving, Repairing, and Restoring Cultural Properties and Historic BuildingsFor many years, the Group has engaged in preserving, repairing, and restoring cultural properties and historic buildings. Projects completed in the fiscal year ended March 2021 included the earthquake-resistant construction work for the brick Kuroshima Catholic Church, an important cul-tural property in Sasebo in Nagasaki Prefecture, and the large torii gate standing at the entrance of the Kamo Wakei-kazuchi Shrine precincts, an historic site known as the Kamigamo Shrine. Hazama Ando has been widely recog-nized for its technology, not only for buildings but also in the preservation and repair of stone walls. We are also focusing on technological development that combines advanced and traditional techniques. We created a 3D model of the wooden framework of an historical building built over 100 years ago, in the Taisho era, and superimposed it on the assembly design model using building information modeling (BIM) technology, verifying that this approach was effective in saving labor in design and construction. Going forward, we will continue to contribute to society by applying the technology we have accumulated over the years to the preservation, repair, and restoration of cultural prop-erties, historical buildings, and civil engineering structures.Kuroshima Catholic Church (photo provided by Sasebo City Board of Education).Main torii gate at Kamo Wakeikazuchi Shrine.Provisional assembly model.Supporting Dedication of Outdoor Firelight Noh Performances at Meiji Jingu ShrineHazama Ando co-sponsors the dedication of outdoor fire-light Noh performances held at Meiji Jingu Shrine in Tokyo every autumn. Since the first such performance was attended by Prince Hironomiya (the current Emperor) in 1982, it has been held 39 times. The Group’s involvement in the Noh performances began in 1980, when we received an order for the construc-tion of the National Noh Theater in Tokyo’s Shibuya Ward. The outdoor performance by firelight was started in the hope of helping to pass on traditional Japanese performing arts and spark interest in the study of Noh theater. Every year, desiring a wide range of people to enjoy Noh by fire-light, we invite about 2,000 people to attend without charge, including people from the general public chosen by lottery. The performances have been well received, not only by spectators but by the Noh and Kyogen (short comic play) performers themselves. at Meiji Jingu Shrine on October 18, 2020, marking the shrine’s centennial anniversary. This year, however, our top priority was on preventing COVID-19 infection and on the health and safety of visitors, so the dedicated performance was carried out without spectators.The 39th dedicated firelight Noh performance was held 13The 39th dedicated firelight Noh performance held at Meiji Jingu Shrine, entitled “Shōjō” (Photograph: Fuminori Mikami).HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Protecting and being attuned to the natural environmentOverview of 2020 ResultsTo establish a PDCA framework for each issue with reference to the In addressing the material issue of protecting and being attuned to the natural environment, we have sought to construct a business framework that can help realize the key CSR theme of creating environmental abundance, centered around the approaches of reducing environmental impact and risks and taking steps to achieve biodiversity. supply chain, Hazama Ando formulated environmental objectives and targets for the three-year period ending March 2022, and is pursuing various actions to achieve them. Among measures taken in the fiscal year ended March 2021, we moved forward with initiatives that are of keen interest to stakeholders, involving the realization of carbon-neutral businesses. Steps included the Hazama Ando Next-Generation Energy Project, shifting to net zero-energy building (ZEB) standards for construction projects, and introducing electricity from renewable energy sources at construction sites. Hazama Ando has identified Goals 7, 12, and 13 as the core SDGs linked with this material issue. Guided by key performance indicators, we plan to further accelerate the promotion of carbon-neutral businesses from the fiscal year ending March 2022, as well as establishing a business framework that contributes to a circular society and low environment impact.HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 202114Materiality2Materiality 2 Protecting and being attuned to the natural environmentActivity Highlights1New LCA Method of Environmental Building Assessment: Company Dormitory Receives Carbon Footprint CertificationLooking ahead to the realization of a carbon-free society, the Group is pursuing various efforts to reduce greenhouse gas emissions related to the construction business. One notable example is the life cycle assessment we carried out at the dormi-tory for single employees we built through a design-and-build method in Kawasaki in Kanagawa Prefecture. We obtained our third carbon footprint certification for this building. To build a carbon-free society, it is crucial to quantita-tively analyze CO2 and other environmentally harmful sub-stances and correctly assess their environmental impact. Studies suggest that life cycle assessments, which quantify the volume of resources extracted from the environment and the volume of substances emitted, are effective in assessing the environmental impact of construction. Given the sheer volume of materials used in the construction field, however, implementing such assessments has proven dif-ficult, prompting calls to establish fair and reliable assess-ment methods. For this reason, the Group is studying efficient life cycle assessment mechanisms. The dormitory project was our latest initiative. The project obtained carbon footprint certification, which discloses the results of CO2 emission calculations, the most widely recognized compo-nent of green building. Going forward, we will also work to apply the EcoLeaf environmental labeling system to buildings. This system cal-culates and discloses a range of environmentally harmful substances as well as CO2. We will take steps to realize carbon-neutral construction throughout the life cycle of buildings, including using building information modeling (BIM) and achieving net zero-energy building (ZEB) status for projects.Carbon footprint of Saginuma dormitory.4%Per 1 square meter floor space, useful life of 65 years28%7% (1) Manufacturing of materials61% (2) Construction (3) Repairs, renovation (4) Disposal, recycling* Figures are based on design data. Furnishing, exterior work, and building operation stages are not included in the scope of the survey.Saginuma single employee dormitory.CO2 visualization carbon footprintRegistration: JR-AA-21001Chttps://ecoleaf-label.jp/english/Activity Highlights2Biodiversity Greening Initiatives at the Technical Research Institute“Greening” buildings ties into conserving biodiversity and achieving Goal 15 of the SDGs, which is to “protect, restore, and promote sustainable use of terrestrial ecosystems.” In recent years, greening has also been incorporated as an element of so-called green infrastructure, given its multiple functions, such as providing comfort, mitigating the thermal environment of buildings and the heat island phenomenon, purifying the atmosphere, and storing rainwater. The Technical Research Institute is carrying out trials in biodiversity greening involving building exteriors. One facet of the trials is creating a biodiversity greening field by plant-ing trees including Eurya japonica, a species local to Tsukuba where the Institute is located. Not simply limited to creating visual harmony, beauty, comfort, and a better thermal environ-ment, biodiversity greening also helps to conserve biodiversity. Specifically, the Institute is developing technologies that facilitate more efficient maintenance. For example, a nor-malized difference vegetation index (NDVI) is used to quan-tify plant activity, while three-dimensional point cloud data ascertains the size and shape of trees. We are also examin-ing connections with the surrounding ecosystem by moni-toring the activity of wild animals using infrared cameras. Finally, we are focusing on actions to raise awareness of these efforts both inside and outside the company.Biodiversity Greening Initiatives at the Technical Research InstituteHazama Ando Technical Research InstituteRaccoon dogPheasantPruning to lengthen the lifespan of treesBuntingLarkCreatures that entered the trial biodiversity greening field (infrared photos) Transplanting to an environment suitable for growthMaintenance of exterior green spaceDroneColor photographs taken by droneActivityLowAerial photographyNDVI image captured by aerial photographyPoint cloud data on treesPoint cloud data of the Institute’s exterior green spaceHigh15HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 2 Protecting and being attuned to the natural environmentRelevant SDGsCreating environmental abundanceTo pass on an abundant global environment to the next generation, the Group will actively work to bring about a carbon-free, circular society. We will also take actions to protect, restore, and create biodiversity to help realize a society that can coexist with nature.Policies and ApproachApproachWe revised the Group’s Environmental Policy in April 2018 to further accelerate environmentally oriented management aimed at bringing about a low-carbon, circular society that can coexist with nature. Starting in the fiscal year ended March 2020, based on new three-year environmental objectives and targets, we are steadily putting environmental practices in place. We are also taking steps to help bring about a carbon-free society by obtaining Science Based Targets (SBT) certification and participating in the RE100 (Renewable Energy 100%) initiative.Environmental PolicyTo protect the abundant green earth and bring about a sustainable society, we will contribute to protecting the environment and reducing environmental impact across the Group.1 Work to reduce greenhouse gas emissions to help bring about a low-carbon society2 Reduce construction by-products to help bring about a circular society3 Take actions to protect, restore, and create biodiversity to help bring about a society that coexists with nature4 Continuously improve environmental management systems and achieve greater results from environmental conservationKey Environmental InitiativesWe have established key medium- and long-term environmental initiatives to give concrete shape to the Environmental Policy. 1 Initiatives related to global warming Reduce greenhouse gas emissions and promote energy saving2 Initiatives related to biodiversity conservation and sustainable use Consider risks to biological resources and ecosystems and minimize impact3 Initiatives to ensure material recycling and build a circular society Mission to achieve net zero construction waste Extend the life cycle of buildings, build an environmentally conscious society4 Initiatives related to water conservation Work toward conserving a sound water environment attentive to the conservation of regional characteristics and biodiversity5 Initiatives related to air quality conservation Reinforce efforts to combat air pollution and deal with asbestos, etc. Reinforce efforts to address living environment issues such as noise and vibrations 6 Initiatives to establish comprehensive chemical substance measures Increase understanding of environmental risks caused by chemical substances and reduce risksThree-Year Environmental Objectives and Targets (Fiscal 2019–Fiscal 2021)The Group established three-year environmental objectives and targets in the fiscal year ended March 2020. In addition to initiatives to bring about a low-carbon, circular society that can coexist with nature as indicated in the Environment Policy, we formulated key medium- and long-term environmental targets to give concrete shape to the policy. In terms of greenhouse gas emission reductions, we set a new target for procuring electricity from renewable energy sources. We are stepping up efforts to shift to net zero-energy building (ZEB) standards as an environmentally friendly target for design. In terms of bringing about a society that can co-exist with nature, we set targets for biodiversity conservation actions. To bring about a circular society, we set a target for the reduction of mixed waste intensity. In terms of environmental risk management, we are targeting increased environmental site visits. In addition to these targets to implement the Environmental Policy, we are promoting environmentally oriented management across the Group. We hold events during Environment Month and engage in other activities to raise environmental awareness, and set goals for actions that contribute to the environment and society.16HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 2 Protecting and being attuned to the natural environmentCreating environmental abundanceThree-Year Environmental Objectives and Targets (Fiscal 2019–Fiscal 2021)1. Actions to prevent global warmingAreaObjective, target1.1 Reduce greenhouse gas emissionsUnitFiscal 2019 Fiscal 2020 Fiscal 2021 SharedProcure electric power from renewable energy20%30%Switch energy sources starting with feasible sitesAs an initiative to cut CO2 emissions at the construction stage, introduce LEDs for temporary underground lighting at new tunneling or shield work sitesRate of introduction: 100% Rate of introduction: 100% Rate of introduction: 100% CO2 emissions per completed construction at the construction stage (tons of CO2/ 54.553.552.5100 million yen)Building ConstructionAs an initiative to cut CO2 emissions at the construction stage, introduce LEDs for temporary lighting at new work sites(%)Rate of introduction: 100% Rate of introduction: 100% Rate of introduction: 100% Building ConstructionCO2 emissions per completed construction at the construction stage(tons of CO2/ 100 million yen)11.010.510.0Supply energy through a next-generation CO2 cogeneration plantEquip plantStart consignment at model work siteReduce CO2 emissions at head office, branches, and sales officesTotal reduction compared to fiscal 2013Reduce CO2 emissions at head office, branches, and sales officesTotal reduction compared to fiscal 2019*21.2 Promote environmentally friendly design and technologyBuilding ConstructionEnhance overall environmental performance by applying simplified CASBEE rating (Comprehensive Assessment System for Built Environment Efficiency)Shift to net zero-energy building (ZEB) standards (projects)Develop, implement environmentally friendly technologyDevelop, implement environmentally friendly technologyStart monitoring to adjust output based on model work site demand forecast1.5—3.0——1.0Proportion: A rank: S rank: 100%40%5%Proportion: A rank: S rank: 100%50%6%Proportion: A rank: S rank: 100%60%7%Verified: 1 (cumulative)3Proposed: Verified: 2 (cumulative)4Proposed: Verified: 3 (cumulative)5Proposed: Explore implementationExplore implementationDevelopment, underlying technology trialsExplore goals, monitorImplement at model sitePartially set target valuesCivil EngineeringCivil EngineeringCivil Engineering and Building ConstructionOfficesOfficesBuilding ConstructionCivil EngineeringConstruction Technology2. Actions to conserve biodiversityAreaObjective, target2.1 Steadily pursue biodiversity-friendly initiatives related to construction projectsSharedInstill understanding of biodiversity conservation, take definitive actions at spotlighted work sites, make new proposals, conduct internal and external PR(cases)TechnologyExamine, develop technology related to biodiversity—UnitFiscal 2019 Fiscal 2020 Fiscal 2021 303030Examine, develop technologyTechnology development, trialsApplication to projects3. Actions to build a circular societyAreaObjective, target3.1 Recycle construction wasteUnitFiscal 2019 Fiscal 2020 Fiscal 2021 Civil EngineeringReduce total mixed waste per completed construction by containing waste generation on site and strengthening sorting processes(tons/100 million yen)Building ConstructionReduce mixed waste intensity per total floor area at new construction projects(kilograms/square meter)1.207.71.107.31.007.04. Actions to manage environmental risk (protecting water and air environments, comprehensive chemical substance measures)Fiscal 2021 Objective, targetFiscal 2019 Fiscal 2020 AreaUnit4.1 Actions to prevent environmental accidentsAugment environmental site visitsCivil Engineering and Building ConstructionCivil Engineering: Building Construction: Civil Engineering: Building Construction: 25% 25%Civil Engineering: Building Construction: 40% 40%60% 60%5. Actions to promote environmental awareness, actions to contribute to the environment and societyAreaObjective, target5.1 Promote environmental awarenessEstablish and promote Environment Month activities (participation rate)Promote environmental initiatives through environmental and eco-site visits5.2 Enhance actions to contribute to the environment and societyFiscal 2019 Fiscal 2020 Fiscal 2021 75%78%85%(activities)20 or more25 or more30 or more(activities)4 or more5 or more—SharedSharedSharedSharedPromote more robust actions that contribute to the environment and societyAcquire external recognitionPromote more robust actions that contribute to the environment and societyTake actions to contribute to the environment and society*1(actions)Shared: Indicates entire Group (Civil Engineering, Building Construction, technology R&D, and offices)*1 Revised November 4, 2020*2 Revised April 28, 2021—— Civil Engineering: 3 per work siteBuilding Construction: 3 per work siteOffices: 80 per year(%)(%)—(%)(%)(%)——(%)Unit(%)17HAZAMA ANDO CORPORATION SUSTAINABILITY REPORT 2021Materiality 2 Protecting and being attuned to the natural environmentCreating environmental abundancePillars Supporting Our Initiatives1. Reducing Environmental Impact and Risks  2. Taking Steps to Achieve BiodiversityPillars Supporting Our Initiatives 1: Reducing Environmental Impact and RisksCO2 Reductions in Initial Trial Year of Hazama Ando Next-Generation Energy ProjectThe Group launched a trial of the Hazama Ando Next-Generation Energy Project in April 2020 as part of our efforts to address energy-related issues in Japan. The trial entails three types of experiments at multiple energy demand sites in remote locations, including at the Technical Research Institute. (1) We installed a power genera-tion plant that combines a fuel cell capable of using CO2-free hydrogen* as fuel with a gas engine generator-based cogen-eration system. Heat generated is supplied to accommoda-tion facilities on the same site. (2) In the main building of the Technical Research Institute, we reduced electricity demand by drawing on existing energy-saving technologies, and distribute the amount of power saved across a wide area. (3) The low-CO2 electric power generated by the above- mentioned plant is distributed to multiple wide-area demand sites using a self-consignment system. and heat used at three facilities and establishing demand forecasts for different building applications—a laboratory, a plant, and a construction site. We are also accurately adjust-ing power supplied by the cogeneration plant. The trial, which has been running for a year, has reduced total CO2 emissions at the three facilities by roughly 8%. By continuing In this way, we are comprehensively managing electricity to verify and improve outcomes, we are aiming to establish even more optimal low-CO2 energy management. This proj-ect better positions the Group to help bring about a carbon-free, sustainable society. * CO2-free hydrogen:- Hydrogen with low greenhouse gas emissions during manufacturing- Hydrogen produced in a way that significantly reduces CO2 emissions- Hydrogen considered to have higher environmental performance, with a focus on CO2 emissions at the manufacturing stageCO2 Emissions at Three Facilities*CO2 emissions (tons/year)2,4145765481,290Approx. 185 tons per year reduction (approx. 8%)2,229435Large-scale construction site442Chiba Plant1,352Technical Research InstitutePrevious total (annual)Total after introduction (annual)* Emissions before introduction and in the fiscal year ended March 2021.Shifting to ZEB Standards and Building a Green Track Record*1 ZEB (Net Zero Energy Building) is a building that has targeted a net-zero bal-ance of annual primary energy consumption. https://www.ad-hzm.co.jp/solution/zeb/ (Japanese only)*2 CASBEE (Comprehensive Assessment System for Built Environment Efficiency) Smart Wellness Office evaluation and certification. https://www.ibec.or.jp/CASBEE/english/certificationE.htm Another approach toward bringing about a sustainable society is our shift to net zero-energy building (ZEB) stan-dards*1. We have been steadily gaining technological prow-ess and establishing a track record in this area. For an office building completed in February 2021, we obtained ZEB Ready certification under the Building-Housing Energy-Efficiency Labeling System (BELS) for large buildings with a total floor space of more than 10,000 square meters. This construction segment is seen as crucial for the transition to ZEB building. We are realizing offices that combine both comfort and health and energy saving, obtaining the top S ranking under the CASBEE Smart Wellness Office*2 system, a tool for evaluating office comfort and health. Demand for Nearly ZEB or ZEB-qualified buildings w