|ISO||6.2.3 Decision-making processes and structures|
Promoting Corporate Governance that Exhibits the Good Relationship between Sustainability of Companies and Society
Chief Executive Officer, Sustainability Forum Japan
Corporate governance efforts by Japanese companies tend to be focused on organizational frameworks, such as Board of Directors' meetings and the general meeting of shareholders. However, I believe what is important is the content of corporate governance and, in particular, the content of the corporate governance policies.
With today's rapidly changing society, there will possibly be significant differences in thinking as to how a general contractor should be run going forward, compared to that up to now.
In dramatically changing environments, companies need to have policies and long-term goals that clearly show how they are going to respond to changes in social situations and maintain sustainability.
In this respect, corporate governance demonstrates the good relationship between corporate sustainability and society. Corporate governance is also extremely important for companies from the viewpoint of making a commitment to medium- and long-term targets, and strategies and directions.
Taisei Corporation has established long-term targets for 2050 to adapt to climate change. In addition to these, I expect the Company to formulate broad long-term targets, including responses to climate change, and contribute to the building of a sustainable society.
Looking ahead ten years from now, it would be expected that Taisei Corporation start working proactively on risks related to human rights risks in supply chain.
CCaSS Leader and Managing Director, EY Japan
In the construction industry, where vast numbers of skilled workers are employed via many layers of subcontractors, companies will be held responsible for understanding the actual working conditions of those workers throughout their entire supply chain, even at the subcontractor levels.
NPOs both in Japan and abroad are stepping up their oversight on human rights issues to prepare for the Tokyo 2020 Olympic and Paralympic Games. Therefore, it is important that companies demonstrate their understanding of these issues, and take steps to address them. One of the first actions a company can take is to check whether there are any human rights abuse cases or potential risks in their supply chains, as these would attract negative international attention. For example, the heavy use of migrant workers or foreign intern programs would raise concerns about fair labor and wages. Procuring wood products from overseas would also raise concerns about illegal logging and land rights issues in developing nations.
Taisei Corporation's human-centric philosophy of, "Putting my work on the map", is a driver for its employees' engagement to make concerted efforts in creating legacies together in Japan and overseas. My suggestion would be that Taisei make the most of this philosophy, and share this human-centric core value to expand business in a way that advances a social mission all can take pride in.
Making Contributions by Leveraging the Strengths and Technologies in the Environmental Field
Chief Researcher, Daiwa Institute of Research
Following the introduction of the Stewardship Code, ESG investment has been increasing rapidly. As a result, investors, such as pension funds and asset managers, are more actively engaged in dialogue with companies than before. Of the environmental (E), social (S) and governance (G) criteria, I think the urgent task for Taisei Corporation, operating in the construction industry, is to address environmental issues.
In conducting dialogue with investors, companies need to proactively disclose what kind of value they can deliver to society, and with what kind of technologies. Technologies for preserving natural capital, in particular, lead to earning high marks from investors. Preserving forests, securing water, and building infrastructure resistant to extreme weather conditions, such as floods caused by climate change, are becoming increasingly important challenges with a view to the global environment going forward, and it is expected that there will be increasing cases where Taisei Corporation, with its many environment-related technologies, will need to play active roles. I expect that Taisei will formulate long-term targets and lead the way in the industry in efforts to solve social challenges including environmental issues through the construction business and build a sustainable society.
Expecting a Contribution to the Achievement of the UN's Goal for "Building Resilient Infrastructure"
Executive Director, CSO Network Japan
In 2015, the United Nations adopted the Paris Agreement and the sustainable development goals (SDGs) to be achieved by 2030, providing the major directions and course of action for human society. SDGs have set 17 goals and 169 targets, and many of the challenges are interrelated. "Build a resilient infrastructure", one of the goals, involves not only building of infrastructure but also a wide range of challenges, such as poverty, climate change, and biodiversity. Therefore, it is important to contribute to the achievement of goals by taking a comprehensive view of two or more goals. For areas that often experience abnormal weather conditions due to climate change, for instance, disaster-prevention measures and regional community support will also be important tasks. SDGs have set a slogan: "Leave no one behind." I expect Taisei Corporation to work to contribute to the achievement of SDGs with an eye on "transforming the world," a common idea underlying SDG's 17 goals.