CSR Concepts and Key Performance Indicators

Basic CSR Concepts

Shimizu has adopted the Analects and the Abacus (Ethics and Economics) as its basic management principles. As we consider these basic principles, we believe it is important to practice corporate social responsibility (CSR) in a manner that utilizes the special characteristics of the construction industry to meet the needs of society in the future, amid changes in the social environment in which our company and the construction industry exist.

Shimizu pursues CSR as an integral part of our business and continually pursues innovation to meet the needs of a changing society. The company has adopted the following three concepts as the cornerstones that provide a stable foundation for working to resolve the problems of society as a good corporate citizen.

  • Fairness and Transparency in Business
  • Creating Value Surpassing the Expectations of Customers and Society
  • The Pursuit of Business Activities that Coexist with Society

Conceptual Diagram of CSR

Conceptual Diagram of CSR

CSR Promotion Structure

Shimizu carries out CSR activities through business activities to meet the needs and expectations of the community.

Matters Explored in Working Groups

Shimizu has four working groups (WG) comprised of members from divisions involved with the CSR Promotion Subcommittee. These working groups consider and make proposals on the following matters in regard to CSR activities. These are then deliberated decided on by the CSR & Global Environment Committee.

  • Decisions on importance
  • Key strategies
  • Medium- and long-term plans
  • Fiscal year plans
  • Indicators (quantitative and qualitative) and goals
  • Corporate Report
Working Group on Planning

Key CSR Topics & KPI

Process for Selecting Key CSR Topics and Determining KPI

Shimizu specifies key CSR topics and establishes KPI (Key Performance Indicators) that align with our business policies as we continually assess the changing needs and expectations of society. We implement these through our business activities. We disclose information on the degree to which we have attained our goals and solicit input from a broad range of stakeholders and reflect their feedback in our business activities. This enables us to make ongoing contributions to the sustainable development of society.

Step 1:Key CSR Topics
Key CSR topics are selected from the social issues and the Midterm Management Plan 2014 currently in progress. An analysis of materiality is simultaneously performed based on GRI standards, and the response on Key CSR Topics and Material Topics is coordinated. ISO 26000 (Guidance on Social Responsibility) and the general principles of the United Nations Global Compact (Shimizu joined in 2013) are referenced in the course of selection.
Step 2:Selecting KPIs and other Performance Indicators
KPIs and other quantifiable performance indicators are then chosen for the Key CSR Topics selected in Step 1. Internal cross-organizational working groups are formed for the selection process. They hold workshops with relevant divisions to verify the appropriateness of the indicators.
Step 3:Approval by the CSR & Global Environment Committee
The KPIs and other performance indicators are selected and approved in the CSR & Global Environment Committee, which is chaired by the president, and the committee also discusses indicators that the company should evaluate in the future.
Step 4:Implementation of and Revisions to CSR Activities
The company carries out its CSR activities while considering the results from analysis of KPIs and other performance indicators approved by the CSR & Global Environment Committee.
Step 5:Ongoing Revisions
The Key CSR Topics and performance indicators are revised as social conditions and the business environment change. New KPIs are also considered.

The Three Cornerstones of CSR Activities

For Fair and Transparent Business Activities

Midterm Management Plan 2014 Social Issues Key CSR Topics KPI
(Key Performance Indicators)
Other Performance Indicators
  • Strengthening the corporate culture
  • Increasing shareholder value
  • Corporate Governance
  • Human rights issues & eradication of poverty
  • Preventing corruption & collusion
  • Fair marketing
  • Corporate Governance
  • Risk Management
  • Compliance
  • Number of serious information security incidents
  • Number of serious violations of laws, regulations, and government notifications
  • Number of serious environmental deficiencies
  • Attendance rate for information security training
  • Participation rate in BCP drills
  • Attendance rate for compliance training
  • Corporate Ethics Help-Line

For Creating Value that Surpasses the Expectations of Society and Customers

Midterm Management Plan 2014 Social Issues Key CSR Topics KPI
(Key Performance Indicators)
Other Performance Indicators
  • Enhancing sales and solutions
  • Technological innovation
  • Innovations in frontline management
  • Steady growth in three key businesses
  • Support for disaster-stricken areas
  • Disaster/accident risk mitigation
  • Extending life span of infrastructure
  • Customer satisfaction
  • Sustainable society
  • Renewable energy
  • Building stock management
  • Regional revitalization
  • Global warming
  • Preserving biodiversity
  • Resource depletion
  • Water problems
  • Safe, secure construction and social infrastructure
  • Optimal quality and customer satisfaction
  • Health & safety in the construction process
  • Energy conservation and renewable energy
  • Global warming countermeasures
  • Biodiversity
  • Waste reduction and recycling and preventing environmental pollution
  • Amount invested in R&D
  • Number of patent applications
  • Number of people obtaining new qualifications (Ph.D.s, engineers, First Class architects, First Class construction management engineers, First Class civil management engineers)
  • LTI (Lost Time Injury) frequency rate
  • Reduction in CO2 emissions compared to 1990 levels (during construction, home offices, energy-saving design)
  • Final disposal rate of construction byproducts
  • Total construction byproducts per unit
  • Number of comprehensive disaster prevention assessments
  • Number of key external awards (BCS, BELCA, Japan Society of Civil Engineers)
  • Number of media announcements about R&D
  • Number of Rank A or higher CASBBE certifications
  • Number of LEED certifications acquired
  • Volume of power generated from renewable energy
  • Amount offset by carbon credits
  • CDP performance score
  • CDP disclosure score

For Co-existence with Society

Midterm Management Plan 2014 Social Issues Key CSR Topics KPI
(Key Performance Indicators)
Other Performance Indicators
  • Advancement of human resources
  • Human resource management
  • Contribution to creating value for society and customers
  • Diversity
  • Aging society with fewer children
  • Regional revitalization
  • Corporate citizenship
  • Sports sponsorship
  • Diversity
  • Work-life balance
  • Human resource development
  • Securing future leaders
  • Social contributions
  • Number of women in management
  • Number of people with disabilities employed
  • Percentage of annual vacation taken
  • Amount spent on social contribution activities as a percentage of ordinary income
  • Percentage of women taking childcare leave
  • Number of women engineers

GRI Materiality Analysis

Shimizu performed an analysis of materiality based on GRI standards to extract key CSR topics. The analysis was performed from two perspectives: The impact on stakeholder evaluation and decision-making, and the degree of economic, environmental, and social impact the organization has.

Results of materiality analysis as follows:

Results of materiality analysis

The impact on stakeholder evaluation and decision-making on the vertical axis shows the impact on shareholders and investors, recruits, and customers. The degree of economic, environmental, and social impact the organization has on the horizontal axis shows the impact on employee motivation (corporate culture), economic aspects, and medium- to long-term risks.

Management Approach

At Shimizu, the initiatives on each key CSR topic are undertaken by the division in charge of each of the functions. The contents of the policies, goals, responsibilities, specific measures, and other information for each key CSR topic is provided at the respective link destinations in  the Corporate Report and on the website. These divisions also implement the activities aimed at achieving the specific numerical goals of the KPI (Key Performance Indicators) and other performance indicators for each respective topic.

Economy and Regional Economies

Key CSR Topics
GRI Topics
Management Elements Description of Response
Economic Impact
201: Economic Performance
203: Indirect Economic Impacts
Policies and commitment Management strategy
Goals and targets Midterm Management Plan 2014,
Smart Vision 2010,the long-term Vision
Responsibility and management resources Corporate Governance
Complaint handling process Internal whistleblowing system
Specific measures Midterm Management Plan 2014
Smart Vision 2010,the long-term Vision
Safe, Secure Construction &
Social Infrastructure
416: Customer Health & Safety
Policies and commitment Management strategies,
CSR procurement initiatives
Goals and targets Midterm Management Plan 2014
Smart Vision 2010,the long-term Vision
Responsibility and management resources Corporate Governance
Complaint handling process Internal whistleblowing system
Specific measures Midterm Management Plan 2014
Smart Vision 2010,the long-term Vision

Environment

Key CSR Topics
GRI Topics
Management Elements Description of Response
Global Warming Countermeasures
305: Emissions
Policies and commitment Ecological Mission 2030-2050
Goals and targets Environmental performance data
Responsibility and management resources Environmental management/Organizational structure
Complaint handling process Internal whistleblowing system
Specific measures Environmental management/Participation in groups and initiatives
Energy Saving & Renewable Energy
302: Energy
Policies and commitment Ecological Mission 2030-2050
Goals and targets Environmental performance data
Responsibility and management resources Environmental management/Organizational structure
Complaint handling process Internal whistleblowing system
Specific measures Environmental management
Participation in groups and initiatives
Waste Reduction & Recycling, Prevention of Environmental Pollution, and Effective Use of Resources
305: Emissions
301: Materials
306: Effluents and Waste
307: Environmental Compliance
303: Water
308: Supplier Environmental Assessment
Policies and commitment Resource recycling, pollution prevention and water use,
Environmental management system,
CSR procurement initiatives
Goals and targets Environmental performance data
Responsibility and management resources Environmental management system/Organizational structure,
CSR procurement initiatives
Complaint handling process Internal whistleblowing system
Specific measures Environmental management/Participation in groups and initiatives
Biodiversity
304: Biodiversity
Policies and commitment Biodiversity initiatives
Goals and targets Biodiversity initiatives
Responsibility and management resources Environmental management system/Organizational structure
Complaint handling process Internal whistleblowing system
Specific measures Environmental management/Participation in groups and initiatives

Society

Key CSR Topics
GRI Topics
Management Elements Description of Response
Human Resource Development
404: Training & Education
Policies and commitment Human resource development policies,
Educational promotion structure and human resource development program
Goals and targets Labor and training performance data
Responsibility and management resources Human rights education promotion structure
Complaint handling process Internal whistleblowing system
Specific measures Human resource development policies,
Educational promotion structure and human resource development program
Health & Safety in the Construction Process
403: Occupational Health & Safety
Policies and commitment Basic Health and Safety Policy
Goals and targets Performance on health and safety
Responsibility and management resources Occupational Health & Safety Committee
Complaint handling process Internal whistleblowing system
Specific measures Employee health promotion initiatives
Strategies aimed at achieving goals
Diversity &
Work-life Balance
401: Employment
405: Diversity and Equal Opportunity
406: Non-discrimination
Policies and commitment Policy on Promotion of Diversity & Inclusion
Goals and targets Databook on the advancement of women
Responsibility and management resources CSR promotion structure
Complaint handling process Internal whistleblowing system
Specific measures Creating an environment that makes it easy to work
Promoting diversity
Participation in United Nations Global Compact
Human Rights Initiatives
406: Non-discrimination
408: Child Labor
409: Forced or Compulsory Labor
Policies and commitment Basic Human Rights Policy
Goals and targets Human rights education & training
Responsibility and management resources System for promoting awareness of human rights
Complaint handling process Internal whistleblowing system
Specific measures Initiatives implemented/creating an environment that makes it easy to work
Promoting diversity
Risk assessment of overseas civil engineering projects
Participation in United Nations Global Compact
Social Contributions
413: Local Communities
Policies and commitment Social contribution activities
Goals and targets Key areas for initiatives
Responsibility and management resources CSR Promotion Structure
Complaint handling process Internal whistleblowing system
Specific measures Key areas for initiatives
Securing Future Leaders (Strengthening the supply chain)
414: Supplier Social Assessment
Policies and commitment CSR procurement
Goals and targets CSR procurement
Responsibility and management resources CSR Promotion Structure
Complaint handling process Internal whistleblowing system
Specific measures CSR procurement
Optimal Quality & Customer Satisfaction
416: Customer Health & safety
Policies and commitment Initiatives in safety & security
(only in Japanese)
Goals and targets Initiatives in safety & security
(only in Japanese)
Responsibility and management resources CSR Promotion Structure
Complaint handling process Internal whistleblowing system
Specific measures Initiatives in safety & security
(only in Japanese)
Compliance
205: Anti-corruption
206: Anti-competitive Behavior
415: Public Policy
418: Customer Privacy
419: Socioeconomic Compliance
Policies and commitment Compliance with laws & regulations and corporate ethics
Corporate governance
Privacy Policy
Goals and targets Midterm Management Plan 2014
Long-term Vision
Responsibility and management resources Corporate Governance
CSR Promotion Structure
Complaint handling process Internal whistleblowing system
Specific measures Midterm Management Plan 2014
Long-term Vision

Stakeholder Relations

Shimizu believes that it is important to engage in dialog with customers and all other stakeholders and build a relationship of trust in order to ensure high standards in ESG (Economic, Social, and Governance) performance in our business. We work to ascertain the problems of the company through customer feedback, shareholder and investor engagement, dialog with subcontractors, and communication with employees. We also take care to communicate key information to shareholders and stakeholders and issue press releases to disclose sufficient information to all stakeholders in a timely manner.

Stakeholder Main Activities Description
Customers Business activities Provide value that exceeds the customer's expectations, rather than simply accurately assessing the customer's needs
Customer satisfaction survey Meet directly with the customer three months and again two years after construction has been completed and listen to what they have to say
Website Provide information on a timely basis
Shareholders and Investors General Meeting of Shareholders Held annually in June
Financial results meetings Future forecasts, etc. explained to analysts
IR events Offer tours of job sites, the Institute of Technology, and other locations in Japan and overseas
Meetings for overseas institutional investors Hold meetings with institutional investors in Europe, U.S., and Asia (23 times in 2016)
Employees Internal reports Published monthly
Informal social gatherings with the president Direct dialog between the president and employees nationwide every year
Union activities Discuss labor relations and work environment
Family Day event An event held for the family members of employees
Subcontractors Kaneki-kai A conference for Shimizu subcontractors in 12 regions nationwide
Successor education & training An initiative to develop the next generation of leaders
Members of the Local Community Briefings to explain construction projects to local residents Held to explain construction projects before construction begins
Job site tours To report the status of progress on construction
Social contribution activities Local events and active volunteer participation
Government and Administrative Agencies BCP response Rapid response to government requests during an emergency
External Organizations Activities in collaboration with NPOs and NGOs Work together to solve social problems

Participation in the United Nations Global Compact

Shimizu became a member of the United Nations Global Compact in March 2013.
Simizu Corporetion is a member of the Global Compact Network Japan and is actively involved in the Human Rights Education Subcommittee (as Administrative Agent) and the Women's Empowerment Principles (WEPs) Subcommittee.
See the United Nations website for further details.

the United Nations Global Compact

10 Principles of the United Nations Global Compact

Reference for the ISO 26000(Guidance on Social Responsibility)

This index lists the main requirements of the ISO 26000 (Guidance on Social Responsibility) Standard and the initiatives of Shimizu Corporation that relate to these requirements.

Main Requirements Topics Activities (Web links)
Organizational Governance Corporate Governance
Establishing a business environment
Human Rights Due diligence Management Principles
Corporate Governance
Being a Company that Values People
Things We Request of Our Suppliers
Critical situation on human rights
Avoidance of complicity
Resolving complaints
Discrimination and the socially vulnerable
Civil and political rights
Economic, social, and cultural rights
Basic labor principles and rights
Labor Practices Employment and employment relationships Being a company that Values People
Promoting Diversity
Initiatives in Health and Safety
Labor conditions and social protection
Social dialog
Labor safety and health
Human resource development and training in the workplace
Environment Pollution prevention Resource Recycling, Pollution Prevention, and Water Use
Ecological Mission 2030-2050
Biodiversity
Use of sustainable resources
Mitigating and adapting to climate change
Environmental protection, biodiversity, and restoration of natural habitats
Fair Business Practices Anti-corruption Corporate Governance
CSR Procurement
Responsible political involvement
Fair competitio
Promoting social responsibility in the value chain
Respect for property rights
Consumer Issues Fair marketing; factual, unbiased information and fair contract practices Delivering Customer Satisfaction through Optimal Quality
(only in Japanese)

Initiatives in Safety and Reliability
(only in Japanese)
Protecting consumer health and safety
Sustainable consumption
Consumer service, support, and complaint and dispute resolution
Consumer data protection and privacy
Access to necessary and indispensable services
Improving education and awareness
Community Participation and Development Community participation Contributing to Society
Education and culture
Job creation and skills development
Development of and access to technolog
Wealth and income creation
Health
Social investment

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