Our group views nature-related impacts as a critical management issue, just as we do climate change. After endorsing the TNFD recommendations in February 2023, the Company has announced early adoption. as a TNFD Early Adopter in January 2024. In FY2025, as in the previous year, we selected five business areas—construction (building construction and civil engineering), real estate development, green energy development (solar power), and engineering (offshore wind power)—based on their potential financial impact on our operations.
This page is an overview of our disclosures. You can download the full text as a PDF.
TNFD Recommendations: Thematic Areas of Nature-related Information Disclosures
| General Requirements | General requirements relating to disclosures |
|---|---|
| Governance | The organization’s governance around nature-related risks and opportunities |
| Strategy | Identification of dependencies and impacts in
business, materiality issues, and our response Analysis of risks and opportunities with scenario analysis and assessment of the degree of impact Strategy to Address Nature-related Issues Identification of priority locations |
| Risk and Impact Management | Methods used by the organization to identify, manage and assess nature-related risks |
| Metrics and Targets | Disclosure of the global core metrics in the TNFD recommendations |
General Requirements Relating to Disclosures
| 1.The Application of Materiality | Concept focusing two impacts: financial impact on our company and the impact of our activities on nature |
|---|---|
| 2.The Scope of Disclosures | Our FY2026 (April, 2025 to March, 2026) disclosure covers upstream, direct operations, and downstream activities across the five domestic business areas noted above. |
| 3.The Location of Nature-Related Issues |
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| 4.Integration with Other Sustainability-Related Disclosures | Conduct TNFD scenario analysis jointly with TCFD scenario analysis members to understand the mutual impacts and then state them in their respective disclosure documents |
| 5.The Time Horizons Considered | Short-term: 3 years or less / medium-term: 10 years of less / long-term: over 10 years |
| 6.Stakeholder Engagement | Engage in business activities while emphasizing engagement with regional communities in accordance with the Shimizu Group Basic Human Rights Policy (Only in Japanese) and Code of Corporate Ethics and Conduct |
Governance
We have built a governance structure centered on the Sustainability Committee (Chairperson: President) in the same way as with climate-related issues.
Furthermore, the Group has established the Shimizu Basic Human Rights Policy. We have also established an external whistleblowing hotline for subcontractors.
To minimize nature-related risks and support conservation and restoration efforts, we engage with local communities located near construction sites and business locations.
Our engagement around business sites includes the Saisei-no-Mori biotope, which received the Grand Prize at the 2nd Tokyo-NbS Action Award (Only in Japanese), the use of green spaces at NOVARE, wood education at Tokyo Mokkoujou Arts & Crafts Furnishings, and participation in the Koto City Green Community Conference and the regional biodiversity strategy.
Shimizu Group Governance Structure for Environmental-related Issues
Strategy
(1) Identification of Dependencies and Impacts on Nature (Ecosystem Services)
To understand the relationship between our businesses and natural capital, we used ENCORE a nature-related risk analysis tool recommended by the TNFD, to analyze our principal businesses: Construction business, Real Estate Business, Green Energy Business involving solar power generation, and Engineering Business involving the construction of Offshore Wind Farms.
We have also conducted trial quantification using nature footprints and other methods, with the results presented for reference.
Summary of the Dependencies and Impacts on Nature (Ecosystem Services) in the major Businesses
(2) Identification of Important Issues in Businesses
Identification of Important Issues in the Upstream
For upstream operations, we identified priority issues by organizing procurement volumes and raw materials in combination with the results of dependency and impact analyses. These findings are summarized in the table below, “Response to Priority Procurement Items.”
In FY2025, we discussed natural rubber supply risks and sustainable procurement with suppliers of seismic isolation and vibration control devices.
We have also identified concrete formwork plywood as a key upstream issue and are continuing our initiatives in this area.
Value Chain Initiatives (Upstream)
Response to Procurement Items with a High Degree of Priority
| Item | Manufacturer and Raw Materials Flow | Size of the Supplier | Our Response |
|---|---|---|---|
| Steel Material |
| Large company | Encourage with CSR procurement questionnaires and cooperate where necessary |
| Cement |
| ||
| Glass |
| ||
| Aluminum |
| ||
| Ready-mixed concrete |
| Regional SMEs | Collaborate for improvements by supplying technologies and information |
Identification of Important Issues in Direct Operations
For direct operations, we recognize the key issue that land-use changes influence both terrestrial and marine ecosystems. For all current construction sites and upcoming planned projects, we assess natural conditions and potential nature-related risks comprehensively and implement measures to avoid or reduce impacts on the natural environment.
Value Chain Initiatives (Direct Operations)
Identification of Priority Areas
Identification of Important Issues in the Downstream
Downstream, the key issue involves construction by-products. We continue to strengthen legal compliance while reducing the generation of construction by-products and promoting further recycling.
Value Chain Initiatives (Downstream)
(3) Identification of Risks and Opportunities Based on Scenario Analysis
In addition to the TCFD working members, employees, including those in finance as well as in upstream (procurement) to downstream (by-product management) departments, conducted scenario analysis using the TNFD 2x2 scenario matrix in the TNFD recommendations.
To assess risks and opportunities through approaches other than scenario analysis, we continue to hold the GEMS Meeting for sharing environmental technologies and business information within the Company, conduct cross-divisional information exchange and problem-solving workshops through the Biodiversity Study Group, hold Environmental Vision workshops for younger employees, and operate the internal online Shimizu Environmental Community.
Scenario Analysis Results (Selection of the Scenarios with the Greatest Degree of Impact on Our Businesses)
| Business scope | Matter | R：Risks O：Opportunities |
Degree of Impact | Timing | Shimizu’s Response | |
|---|---|---|---|---|---|---|
| Upstream | Demand for traceability and environmental | R | Competition resulting from market consolidation, price increases, and quantity limitations | ↓↓ | Short to medium-term |
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| O | Securing an advantage through new technology | ↑↑↑ | Short to medium-term |
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| Difficulty and instability in obtaining construction materials (disasters and resource depletion) | R | Unclear and unstable material prices and construction delays | ↓↓ | medium to long-term |
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| O | Rebuilding and strengthening the supply chain and securing an advantage through new technology | ↑↑↑ | medium to long-term |
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| Direct operations | Tight restrictions on land modification and a fundamental review of land use | R | Decrease in new construction demand | ↓↓↓ | Long-term |
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| O | Increase in renovation and renewal work and implementation of nature-friendly and reclamation projects | ↑↑ | Long-term |
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| Tighter nature-related regulations and monitoring at construction sites | R | Reputational risk and brand damage | ↓↓ | Short to long-term |
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| Downstream | Demand for evaluation and monitoring of natural performance*5 | R | Prolonged construction responsibility, increase in post-construction work, and increase in management workload | ↓↓ | Short to medium-term |
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| O | Technology that realizes natural performance*5 for differentiation | ↑↑ | Short to medium-term |
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| Strong demand for recycling, including regulation of total emission | R | Tight restrictions from design stage | ↓↓↓ | Long-term |
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| O | Demolition technology directly ties into construction skills | ↑↑↑ | Long-term |
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- Our self-propelled SEP vessel with one of the world’s largest loading and crane capacities
- A building operating system equipped with a building operation digitalization platform function for easily linking and controlling equipment and IoT devices inside the building with various applications
- A hydrogen energy utilization system for buildings that electrolyzes water using surplus renewable energy, stores the generated hydrogen in a storage alloy, and then extracts it as needed to generate electricity
- A business concept where the blessings of nature are returned to the whole region by developing infrastructure while making wise use of the functions of nature and adding the software and technology of the Shimizu Group
- This is the ability to show how effective selected construction methods and measures are for targets when targets have been set for the state of nature and construction methods and measures have been taken to achieve them. For example, this is the ability of small animals to actually be able to move by setting up migration routes for them and the ability to achieve a lower impact than existing construction methods by selecting a construction method which reduces the impact on bird roosts.
- A system that enables efficient and integrated management of construction by-products, including forecasts of the amount of by-products generated by type, presentation of reduction options, issuance of electronic manifests, and management of company-wide by-product emissions
(4) Shimizu Corporation’s Strategy for Nature-related Issues
Toward achieving SHIMZ Beyond Zero 2050
In October 2025, we formulated a roadmap (Only in Japanese) for achieving our Environmental Vision, SHIMZ Beyond Zero 2050, which encompasses the realization of nature positive.
The roadmap establishes interim targets and KPIs for 2030 and 2040 in the three areas of zero carbon, resource recycling, and coexistence in harmony with nature. From FY2026, we plan to establish an Environmental Subcommittee under the Sustainability Committee and implement measures through sub-working groups for each area.
The sub-working group for promoting coexistence in harmony with nature will assess how our businesses relate to the GBF (Kunming-Montreal Global Biodiversity Framework) and set and manage targets as necessary.
Value Chain Initiatives (Upstream)
In the upstream value chain, we are focusing on concrete formwork plywood. Working together with manufacturers, partner companies, and other stakeholders, we are advancing efforts to achieve our goal of eliminating the use of non-certified foreign plywood at all Shimizu construction sites by 2030.
Since this initiative began, the use of non-certified imported plywood has continued to decline, falling to 30% as of February FY2025 and putting us on track to achieve our target.
Value Chain Initiatives (Direct Operations)
For our direct operations, we introduce efforts to assess the natural environment around construction sites using Environmental KY® initiatives, promote measures based on the mitigation hierarchy, and contribute to nature positive at construction sites, including an example involving house swifts (Only in Japanese). We also cover our Overseas Construction Business and new initiatives such as measures to control invasive alien species at construction sites, seaweed cultivation using scour protection works for offshore wind farm foundations, and the rain garden at the Kumamoto Sales Office (Only in Japanese).
Value Chain Initiatives (Downstream)
Downstream in the value chain, we advance initiatives to recycle construction by-products. These include recycling waste flat glass from demolition sites with AGC Inc., recycling of waste plastics ("Site-to-Site" type (Only in Japanese); recycling between our company's sites (Only in Japanese)).
Regional Initiatives
As part of our initiatives in regions connected with our businesses, at “Yatsubori no Shimizu Yatsu (Only in Japanese),” a Site Coexisting with Nature, we have begun collaborating with Wakayama Nokyo Foods Industry, which has a production base in the same watershed. We also introduce externally collaborative initiatives such as Yatsu Walk 2025 (Only in Japanese) and the Green Infrastructure Regional Co-Creation Open Study Group 2026 (Only in Japanese). Under the sustainable timber utilization project “Shimizu Meguri no Mori,” we also introduce activities at our second location, in Gujo City, Gifu Prefecture (Only in Japanese).
Developing Future Leaders
To address nature-related challenges, we believe it is essential to consider not only our business value chain and the regions surrounding our operations, but also a long-term perspective.
Specific examples include nature-based environmental education for all Company employees, nature-experience training for new employees in collaboration with the Gifu Academy of Forest Science and Culture, and the Exciting Secret Base Project 2025 (Only in Japanese), in which our construction employees prepared construction plans and procured materials to bring children’s free ideas to life. We also introduce the Shimizu Open Academy, a free public program offering lectures, facility tours, and other activities at the Institute of Technology to students from Japan and overseas.
Cooperation in research and development
Our research, development, and collaboration activities involving nature-related technologies include making patented technologies available for use, such as technologies for assessing the impacts of nighttime lighting on insects, soil purification, and fire-resistant timber. We also support Earthwatch Japan’s domestic surveys, collaborate with the National Institute for Environmental Studies, and participate in the international joint monitoring project Snapshot Japan.
(5) Identification of Priority Locations
For the current year, priority areas were identified based on 843 construction sites active during FY2025.
We have also worked to understand conditions in Sarawak, Malaysia, a production area for imported timber used in concrete formwork plywood, through discussions with timber trading companies, local manufacturers, NPOs, and NGOs. Based on these findings, we have designated the source regions for formwork plywood as priority areas and plan to conduct an on-site inspection during FY2026.
Priority locations for Construction Sites in Operation in Fiscal 2025
Risk and Impact Management
Management Process for Nature-related Issues
| Range of Business | Management Item | Management Technique |
|---|---|---|
| Upstream | Nature-related risks over the supply chain in general |
|
| Important issues (concrete formwork) |
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| Direct operations | Identification of priority locations Nature-related risks Opportunities for restoration of nature |
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| Downstream | Construction by-products |
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Metrics and Targets
(1) Metrics and Targets Relating to Dependencies and Impacts
TNFD Global Core Disclosure Metrics for Dependencies and Impacts and Our Record (Fiscal 2025)
| Measurement Metric Number | Causes of Changes in Nature | Metric [Unit] | Measurement Item | Record | Target | |
|---|---|---|---|---|---|---|
| TCFD | Climate change | Greenhouse gas emissions | CO2 emissions | Refer to TCFD | Refer to TCFD | |
| C1.0 | Changes in land, freshwater and ocean use | Total spatial footprint [km2] | Area of construction/business work range | Aggregation of the construction/business work range [See the next item] | - | |
| C1.1 | Extent of land/freshwater/ocean ecosystem use change [km2] | Area of changes in land due to construction/business work | Aggregation of the area of changes in land due to construction/business work [See the next item] | - | ||
| C2.0 | Pollution / Pollution removal | Pollutants released to soil | (compliance with the Soil Contamination Countermeasures
Act)
|
Zero environmental problems | Zero environmental problems | |
| C2.1 | Wastewater discharge | (Compliance with water contamination prevention-related
laws)
|
Zero environmental problems | Zero environmental problems | ||
| C2.2 | Generation and treatment of waste [t] | (Compliance with construction by-product-related laws)
|
FY2024 | FY2025 | Final disposal rate of less than 3.0% by 2030 | |
| 2.5% | Under calculation | |||||
| C2.3 | Plastic pollution[t] |
|
FY2024 | FY2025 | Final disposal rate for plastics of 15% or less by 2030 | |
| 16.5% | Under calculation | |||||
| C2.4 | Non-GHG air pollutants other than greenhouse gases [t] | (Compliance with air contamination prevention-related
laws)
|
Refer to Environmental Performance Data* | - | ||
| C3.0 | Use of resources | Water withdrawal and consumption from areas of water scarcity [m3] | (Compliance with water contamination prevention-related
laws)
|
Refer to Environmental Performance Data* | - | |
| C3.1 | Quantity of high-risk natural commodities sourced from land, ocean or freshwater ecosystems [t] |
|
FY2024 | FY2025 | Zero plywood produced overseas (non-certified timber) by 2030 | |
| 37.0% | 30.0% | |||||
|
Refer to Environmental Performance Data* | - | ||||
Actual figures on dependencies and impacts will be updated in the Environmental Performance Data section.
Changes in Land, Freshwater and Ocean Use
Our business activities are closely tied to land use, making this a highly important factor in management decisions. “C1.0: Total Spatial Footprint” aggregates the total area associated with our operations for the reporting year, while “C1.1: Extent of Land/Freshwater/Ocean Use Change” aggregates land areas whose condition has changed due to our activities.
For additional details and figures related to area calculations, please refer to the full report (Only in Japanese).
C1.1：Extent of Land/Ocean/Marine Use Change = Land Use Changes Resulting from Construction (Projects Completed in FY2025)
C1.1：Extent of Land/Freshwater/Ocean Use Change = Land Areas with Use Changes (Projects in Operation During FY2025)
Naturalness of the area surrounding the construction/business site = A score representing the weighted average of the extent of natural vegetation within a 2 km radius from the center of the construction site, based on area.
High: Within a legally protected area, with a naturalness score of 7 or more (containing a lot of natural vegetation and secondary forests that closely resemble natural vegetation)
Medium: Naturalness score of 4 or more (secondary forests, plantations, grasslands, etc.)
Low: Naturalness score of 2 or more (golf courses, parks, residential areas with lots of greenery, rice fields and farms, etc.)
Minimal: Naturalness score of less than 2 (includes a lot of artificial land use)
Efforts to Reduce Construction By-products
We have actively promoted 4R activities—Refuse, Reduce, Reuse, and Recycle—in the Construction business and have achieved tangible results. In the material circulation roadmap formulated in FY2025, we set a 2050 target of reducing the final disposal rate for construction by-products to 0% and introduced the “input-side circular utilization rate” as a new management indicator. For specific initiatives and targets for achieving these goals, please see “Material Circulation.”
| FY2024 Results | FY2025 Results | Target of FY2030 | |
|---|---|---|---|
| Final Disposal Rate of Construction By-products | 2.5％ | Under calculation | Less than 3.0％ |
| Final Disposal Rate of Waste Plastics | 16.5% | Under calculation | 15％ or less |
Resource Use
For formwork plywood, one of the key upstream issues in the construction business, we conducted a questionnaire survey of partner companies to identify usage volumes by plywood type.
For more information on the questionnaire results, please refer to the full report (Only in Japanese).
| Formwork Types | FY2023 Results | FY2024 Results | FY2025 Results | Target of FY2030 |
|---|---|---|---|---|
| Certified Foreign Plywood | 52% | 58% | 66% | - |
| Non-certified Foreign Plywood | 45% | 37% | 30% | Zero |
| Domestic Plywood | 3% | 4% | 2% | - |
| Non-plywood Materials | 1% | 1% | 2% | - |
(2) TNFD Global Core Disclosure Indicators on Risks and Opportunities and Shimizu’s FY2024 Results
| Indicator Number | Category | Indicator | Results |
|---|---|---|---|
| C7.0 | Risks | Assets, liabilities, revenue, and expenditures assessed as vulnerable to nature-related transition risks (total amount and percentage) | - |
| C7.1 | Assets, liabilities, revenue, and expenditures assessed as vulnerable to nature-related physical risks (total amount and percentage) | - | |
| C7.2 | Fines, penalties, or litigation incurred during the year due to negative nature-related impacts (details and amounts) | Not applicable | |
| C7.3 | Opportunities | Capital expenditures, financing, and investments executed toward nature-related opportunities (disclosed by type) | |
| ・Participation in nature-related organizations (membership fees) | 3,935,000yen | ||
| ・Forest restoration volunteer activities | 3,038,600yen | ||
| ・Technology development and research* | 554,442,647yen | ||
| ・Investment in startups and related entities* | 4,247,546yen | ||
| ・Activities supporting a resource recycling society that coexists in harmony with nature | 22,395,854yen | ||
| C7.4 | Increase and percentage of revenue from products and services that deliver demonstrable positive impacts on nature | ||
| ・Volume of contaminated soil transported off-site and treated under the Soil Contamination Countermeasures Act | 40,509m3 | ||
Related R&D themes and investments are selected with consideration for synergy across decarbonization, resource circulation, and nature coexistence.
