Response to climate change

In responding to climate change, it is important to reduce the CO₂ emissions in the supply chain ranging from material procurement to facility operation. Therefore, it is necessary to advance measures while sharing information with various stakeholders. The impact of emissions during building operation is particularly large. Therefore, we have been actively working to launch renewable energy projects as well as seeking to propose energy conservation related technologies such as ZEB and ZEH-M. In addition to proposing the adoption of renewable energy to our customers, we also intend to consider promoting the use of such energy at Group companies. To achieve the establishment and improvement of infrastructure intended to deal with climate change, which is a social challenge, we have opened the ICI Center, a complex designed to accelerate innovation. We intend to work on the realization of new value creation and its integration into society.
Concerning the disclosure of information on climate change, we, as MAEDA CORPORATION, have disclosed such information by CDP together with INFRONEER Holdings Inc. With the aggravating climate crisis, we reviewed our target values for 2030 in order to achieve 2050 net-zero emission. For the SBT certification acquired in 2019, we have been renewing it since the adoption of the holding company system.

* SBT stands for Science-Based Targets, and is an initiative that requires companies to set the CO₂ reduction target based on scientific evidence to limit the global average temperature rise to "less than two degrees Celsius," as per the terms of the Paris Agreement.

The President serves as the person responsible for climate-related issues at the Board of Directors.
The reduction target for three years was decided from the FY 2021 result in the medium-term environmental plan (2022 to 2024).
The executive officers in charge of the Safety Environment summarize the state of implementation of the medium-term environmental plan in the construction sector, civil engineering sector, procurement sector, and technology sector, and report the result to the Board of Directors every quarter. For the efforts undertaken in field offices, a WG is held quarterly with the Building Department and the Civil Engineering Department, and measures are considered. For the situation in field offices, information is shared, and the efficiency of aggregation is improved by entering environmental data into the portal site. To evaluate and promote efforts to reduce the environmental impact at field offices since 2016, the efforts have been visualized by ranking and displaying the "economic value" of efforts registered on the portal site. In addition, an environmental value converted into a monetary amount^* is used as an item of evaluation for our internal environmental activity commendation.

Starting in FY 2019, we have reviewed our business plans based on the medium- to long-term reform plan “NEXT 10,” which is our new medium- to long-term management plan. Accordingly, we reviewed our medium- to long-term CO₂ reduction target in accordance with the SBT certification criteria, and have formulated a medium-term environmental plan (2022 to 2024).
Based on the 2015 Paris Agreement, the Japanese government has declared a “2050 Carbon Neutral.” Our company has also reviewed our CO₂ emissions reduction target to “2050 net-zero emission” toward achieving these goals. In addition, for the SBT certification we acquired in 2019, we have been working to renew it since the adoption of the holding company system in October 2021, and intend to strengthen our alliance and effort with Group companies toward the achievement of the goals.

Further, as INFRONEER Holdings Inc. we joined the RE100 Initiative in May 2022, and intend to also pursue the use of renewable energies.

Since FY 2022, all of the electric power used in construction activities and office activities have been offset by using a non-fossil fuel certificate with tracking. Accordingly, the company's CO₂ emissions from power usage are zero and the utilization rate of renewable energy is 100%. We will continue energy conservation activities to promote the reduction of electric power usage.

[Construction activities]

The CO₂ emissions in FY 2022 were 73,718 t-CO₂ after the power usage was offset by a non-fossil fuel certificate and the CO₂ emissions basic unit (CO₂ emissions per 100 million yen of construction amount) was 19.4 t-CO₂/100 million yen, and the target for FY 2022 was achieved.

[Office activities]

The CO₂ emissions by power usage in office activities were 678 t-CO₂ after the power usage was offset by a non-fossil fuel certificate and the target for FY 2022 was achieved.

After observing various legislations, such as the Building Standards Act and the Energy Conservation Act and satisfying the ordering party's requirements, we are also providing various energy-saving proposals and performing simulations considering the environmental impact reduction from the design stage. We are also evaluating all items to promote environment-friendly design. Registered with the ZEB leading owner and the ZEB planner for ZEB, we are making efforts as a comprehensive energy-saving planner who carries out design, consulting, and construction. Our company aims to be a ZEB leading enterprise by the “W ZEB” (double ZEB) for new construction and repair work.

The "Comprehensive Assessment System for Built Environment Efficiency (CASBEE)" is incorporated into the business flow. This evaluation should be conducted at the time of basic design and execution design, and the goal is the achievement rate of 100% for a BEE value of 1.2 or more.
A BEE value of 1.0 or more is "rank B+ (good)," and a value of 1.5 or more is "rank A (excellent)." The 8 items are evaluated for the objects completed in FY 2022, and the achievement rate was 100% for a BEE value of 1.2 or more. The BEE value for two of its items was 1.5 or more.

We are making efforts to reduce the primary energy consumption under the Energy Conservation Act to limit CO₂ emissions at the building operation stage. For the target items (design items) in FY 2022, the primary energy reduction was 13.8%, and the estimated CO₂ emissions reduction was 1,372 t.

• * The calculation of the estimated CO₂ emissions reduction is based on the “energy-saving plan & CASBEE evaluation sheet.”

Reducing the CO₂ emissions from construction materials by a hybrid structure of wood and steel frame

This building has a hybrid structure combining steel frame and wood, in which the characteristics of both materials are effectively utilized. We realized an unprecedented construction excellent in the elements such as design, environment friendliness, and safety by using various technologies.

In the construction of collective housings which is our specialty, our company is pursuing the design and construction of the Net Zero Energy House Mansion (ZEH-M) with the “floor chamber air-conditioning system” for collective housings as an axis, which is a newly developed technology to realize a comfortable residential environment, and has been registered and certified as one of the “ZEH Developers” (C registration) who play a central role in promoting ZEH-M, which has been publicly offered by the Sustainable open Innovation Initiative .
Toward the achievement of carbon zero by FY 2050 which has been set as a governmental goal, we will actively connect our ZEH-M proposals to their design and construction and work on their distribution.

* ZEH developer
It refers to building owners or building contractors who make public “their plans of efforts to distribute ZEH-M,” “the state of the progress,” “ZEH-M introduction plans,” and “ZEH-M introduction results” and play a central role in forming ZEH-M projects. There are two kinds of ZEH Developers, “condominium developers” (D registration) and “building contractors” (C registration).

In promoting ZEB, our company has registered ourselves as a ZEB Leading Owner and a ZEB Planner, and has been pursuing our efforts as a comprehensive energy-saving planner that conducts design, construction, and consultation.
In particular, although cases of ZEB achievement with existing buildings are fewer than with new buildings, we redesigned the air-conditioning at the MKD Nagoya Building (Nagoya City, Aichi Prefecture) and Hitokuchizaka Chuo Building (Chiyoda-ku, Tokyo), which are both medium-scale office buildings, after reducing the heat load by improving exterior-coat performances such as heat insulation and insolation shielding. Furthermore, by combining such techniques with general-purpose energy-saving technologies, we achieved ZEB Ready at both buildings.
In the future, we will continue to aim at being a ZEB leading company by working on “W ZEB” (double ZEB), which means ZEB achievement in both new building construction and existing building renovation.

The construction industry is promoting fuel-saving operations to reduce light oil consumption, accounting for 70% of CO₂ emissions. Regarding fuel-saving operation education as one of the effective means to reduce CO₂ emissions, our company is promoting the steady implementation of four items: classroom lecture education, field practice education, ensuring idling stop, and conducting periodic inspections. In FY 2022, the execution rates of classroom lecture education, field practice education, idling stop, and periodic inspections for heavy equipment, etc. were 60%, 44%, 79%, and 78%, respectively. This activity contributed to a CO₂ reduction of approximately 4,300 t-CO₂. We will continue to make such efforts with constancy.

Concerning the greenhouse effect gas (hereinafter referred to as "GHG") emissions, in addition to the "direct emissions by fuel combustion (Scope 1)" consumed in carrying out a business activity and the "indirect emissions by power usage (Scope 2)," our company understands and discloses the GHG emissions indirectly emitted in the upstream and downstream of a business activity (Scope 3).
Our company calculates Scope 3 based on the “Basic guidelines for the calculation of greenhouse effect gas emissions through the supply chain (Ministry of the Environment and the Ministry of Economy, Trade, and Industry).” The details of the emissions in FY 2022 are shown as follows.

The result of GHG emissions in Scopes 1 and 2 in FY 2022 was 81,807 t-CO₂, and the target value for FY 2022^*1 of 98,787 t-CO₂ or below was achieved. For the emissions in Scope 2 (CO₂ emissions from power consumption) by only the Maeda Corporation, all emissions were offset with a non-fossil fuel certificate with tracking and RE100 was achieved.
The result of GHG emissions in Scope 3 was 2,497,393 t-CO₂, and the target value for FY 2022^*2 of 6,363,431 t-CO₂ or below was achieved.
The target values for Scope 3 need to be reviewed as the calculation scope and method for Category 11 were changed. We will renew the target values as the Group's calculation scope was changed due to the shift to the holding structure.

State of efforts in FY 2022