Organization Governance

Corporate Governance

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Risk Management

At Taisei Corporation, we have formulated a Risk Management Policy and built systems to implement risk management across the entire Company in order to respond to risk escalation following changes in the business environment. In terms of handling risk management, we set forth the Basic Risk Management Rules and we identify and select risks associated with our business activities, such as quality and technology, laws and regulations, compliance, information, safety, labor and employment, the environment, natural disasters and others, to reflect these risks in the operational plans of each division. We work on risk management through the PDCA cycle of reviewing, implementing, evaluating, and improving risk countermeasures.
In particular, in the event of an incident or accident that could have a serious impact on corporate management, information is centrally handled by the CRO (Chief Risk Management Officer) Secretariat, and reports are made to the President, who are the chief executives of risk management, and the Board. These risks include elements related to environmental, social and governance (ESG) such as infectious diseases, safety risks, and bribery.
We share this information with the Risk Management Committee and the Risk Management Council in order to prevent recurrence of such risks, and implement effective risk management across the whole company.

Company-Wide Risk Management System

Risk Management System

Promotion of Company-Wide Risk Management System

At Taisei Corporation, we work to continuously operate the risk management system to appropriately identify and manage risks associated with business operations. Under the risk management system, the President is the Chief Executive Officer of Risk Management and the Chief of the Business Administration Division serves as the Chief Risk Management Officer (CRO). Each year, we take into account the risks that became apparent during the current fiscal year to review the risk management for the following fiscal year through the PDCA cycle and verify the effectiveness of the risk management system.
Based on the Basic Risk Management Rules, each division of the Head Office, in cooperation with the branches, reviews and identifies all risks associated with their business activities and selects the “Head Office-governed risks.” The “Head Office-governed risks” are then narrowed down to risks that can possibly have a material impact especially on corporate management. Such risks are selected as “key company-wide risks” and are subject to risk management across the entire company. The “key company-wide risks” are determined by the CRO after deliberation by the Risk Management Committee headed by the CRO. The President and the Board receive reports on the risks and confirm the operating status of the risk management system and maintain the effectiveness of the system.

Business and Other Risks

Taisei Corporation has in place a system to prevent and evade risks and pursue corrective actions.
Risks that may possibly have a material impact on corporate management are reported to the Management Committee and the Board for comprehensively examining and determining the policy to handle such risks and reporting the policy under “Business and Other Risks” in the Securities Report.

Climate Change-Related Risks

In terms of climate change-related risks, we specify and assess risks based on various scenarios created and promote initiatives in response to the TCFD Recommendations.

Initiatives for Business Continuity Planning (BCP)

To meet its responsibilities as a general construction company supporting the infrastructure for social and economic activities even in the event of a major disaster or accident, Taisei Corporation has established the Policy on Business Continuity in Times of Disaster in 2005 and aims to become a company that gains the trust of society. Based on this policy, we formulate the BCP to be implemented in times of disaster, conduct disaster training at least once a year, in which all officers and employees of the Company and the Group companies take part, and fully review and update the BCP based on the results of the training and other factors each time.
In recognition of our efforts to improve business continuity on a continuous and regular basis, we obtained certifications such as a “BCM rating.” In addition, since 2015 we have conducted annual joint training with the Japan Federation of Construction Contractors and other organizations to establish a company-wide recovery support system that can immediately respond to requests for assistance.

[ PICK UP ] Verifying Problems relating to COVID-19 or in Preparation for an Earthquake that Occurs During Business Hours

The Taisei Group has revised its BCP to deal with new risks not anticipated in its previous Business Continuity Plan (BCP). In November 2020, we conducted the FY 2020 Major Disaster Countermeasure Training Exercise based on the revised BCP. This training exercise had the participation of a total of approximately 18,000 employees at its head office and all 13 branch offices and 25 group companies (participation rate 100%).
The theme of the training exercise was “Identifying issues in the BCP organization, considering the COVID-19 pandemic and assuming that a major earthquake occurs during business hours.” The exercise was conducted using the “scenario-blind” method and assumed severe conditions, including that no more than 30% of employees would be able to come to work due to COVID-19.

large-scale disaster countermeasure training being held
(6th floor of Head Office building ;Disaster Response Main;Headquarters)

Information Security Measures

In the construction industry, sharing information with a large number of stakeholders, such as clients and contractors (specialized contractors, etc.), is essential in the construction process. Therefore, the Taisei Group has set forth “Management of information and intellectual property rights” under the Action Guidelines for Taisei Personnel and the Taisei Group as a Whole, and has implemented various measures related to information security. We have also established the “Policy on the Protection of Personal Information” and the “Code of Conduct on the Use of Social Media.”
At Taisei Corporation, we have compiled a booklet containing minimum rules to be observed and have been providing education and guidance to all officers and employees as well as business partners. Since fiscal 2016, we have been working to strengthen the information security environment at our overseas sales offices and worksites. We also work to strengthen measures against the risk of information leaks associated with telecommuting (working from home).
In addition, in order to prevent and mitigate intellectual property risks such as infringements of rights and technology leaks that have a serious impact on corporate manage- ment, we implement thorough risk management in all business processes. To respond to the increasingly serious risk of cyber attacks, we established the Taisei-Security Incident Response Team (SIRT) and work to collect the latest information on cyber attacks and take measures to prevent cyber attacks in cooperation with external organizations through the Nippon CSIRT Association, which we joined in March 2013.

Response to Risks Related to Infectious Diseases and Pandemics

New coronavirus (COVID-19) infections have been spreading widely throughout the world since 2020 year. In response, we have a system in place where the CRO Secretariat leads the effort of centralizing information on the infection situation, etc. at worksites in Japan and overseas and having the entire Company take a crisis response in a comprehensive and prompt manner. Furthermore, in November 2020, we realigned the contents of the conventional COVID-19 Response Guidelines and other guidelines so that they could be adopted for COVID-19 and any new infectious diseases and formulated the “BCP to be Implemented in the Advent of Infectious Disease.” Specific countermeasures against infectious diseases are implemented as needed in line with the policies of the state and local governments and the guidelines of the Japan Federation of Construction Contractors and others. At the same time, we promote telecommuting, split onsite working, staggered commuting and other such measures on a company-wide basis from the perspective of constraining the flow of people and reducing the frequency of contact among people.
In addition, from June 2021, with a view to smoothly implementing vaccinations and contributing to the curtailment of the COVID-19 pandemic, we began workplace vaccination for a total of approximately 30,000 workers wishing to be vaccinated. They included all officers and employees (including contract workers and dispatched workers) of the Taisei Group and their families and employees of cooperating companies entering our worksites nationwide.

Major Infection-Prevention Measures at Taisei Corporation's Office Work Departments and Worksites

  1. Ensuring handwashing, mask wearing, physical distancing with others and avoiding 3Cs (closed spaces, crowded places, close-contact settings)
  2. Temperature measurement and hand disinfection at entrances
  3. Installation of acrylic partitions between seats
  4. Prohibition of non-urgent business trips and travel across prefectures
  5. Avoidance of holding and attending non-urgent gatherings (large meetings, etc.)
  6. Continuing to implement telecommuting, split onsite working, staggered commuting, etc.
  7. Active use of online meetings and ICT tools (avoiding business trips and face-to-face meetings)
  8. Prohibition of eating and drinking among employees for social gathering purposes