Materiality

1) Development of smart social infrastructure:

The aging of structures and geological risks in our society pose significant challenges. Our Group has been actively involved in social infrastructure development and has conducted research and development related to 3D geotechnical modeling. We will continue to proactively work on the long-term durability of social infrastructure, reducing geological risks, and advancing 3D geotechnical modeling technologies for underground structures to offer solutions to our customers.

2) Mitigation of natural disaster damage and development of resilient community:

The impact of climate change has led to an increase in severe water-related and slope disasters each year, with the damages worsening. Moreover, there is an ever-increasing concern about future mega-earthquakes like the Nankai Trough Earthquake and the Tokyo Inland Earthquake. Reducing the impact of these natural disasters, building resilient communities, and watershed development are becoming significant societal challenges.

Our Group has been continuously working on projects related to natural disaster management and has conducted research and development in areas such as identifying the weak points in river levees and predicting the physical and economic damage from such earthquakes. We will be strengthening our efforts to be able to make increasingly significant contributions at various stages, from disaster prediction to recovery and reconstruction.

3) Creation of a decarbonized society and a sustainable recycling-oriented society:

The momentum for decarbonization is accelerating rapidly in connection with climate change. Our Group has been involved in activities related to renewable energy, such as offshore wind power projects, by conducting geotechnical surveys and environmental assessments. We have also participated in research and development related to CCS (Carbon Capture and Storage) technology.

From now on, we will strengthen our efforts in renewable energy-related businesses and their research and development. Leveraging our expertise in geology, groundwater, energy, resource recycling, disaster prevention and mitigation, and regional transportation, we aim to create sustainable regional circular symbiotic communities.

4) Realization of a society in harmony with nature:

Our corporate philosophy is to 'Engineer a harmony between human society and the natural environment, sustain safety and security of society from an engineering approach and achieve social contributions through development of the Company's business,' and realizing a society in harmony with nature is our goal.

Our Group has conducted impact assessments related to biodiversity, including natural environmental surveys and assessments of building structures. We have recently begun strengthening our efforts in matters relating to green infrastructure, such as forest disaster prevention.

In 1999, we established the "OYO Bionomical Engineering Institute" in Miharu, Fukushima Prefecture, where we work together with local residents to observe changes in the natural environment following dam construction, and we will be continuing our efforts to achieve a society that is increasingly in harmony with nature.

5)  Endeavors on decarbonization:

We will advance our efforts towards "decarbonization" across the entire Group in our daily organizational activities. Starting from 2022, we will calculate and disclose the carbon dioxide emissions for our company (by itself, not as a Group) as environmental data.

• Realizing a Decarbonized Society

6) Diversity & Inclusion (D&I)

Under the framework of sustainability management, we believe it is essential to embrace a diverse range of talents and leverage the unique attributes of each employee to foster innovation. Our goal is not only diversity in terms of employee demographics but also diversity in knowledge and experiences. We will work towards creating a work environment where diverse individuals can thrive.

• Diversity & Inclusion

7) Respect for Human Rights, Human Resources Development, Safety, and Health and Productivity Management:

In the fiscal year 2021, our Group established human rights policies, human resource development policies, a manifesto in health management, and safety policies. Going forward, we will develop and implement measures in line with these policies and disclose the relevant information when necessary.

• Respect for Human Rights
• Human Resource Development
• Occupational Safety and Health
• Health and Productivity Management

8) Compliance

Compliance adherence forms the foundation of our management, and in June 2021, we distributed a compliance handbook to all employees, including those in the domestic Group. We will continue to provide compliance education regularly and work to instill awareness among our employees. We are also establishing a system to prevent organizational misconduct.

• Compliance