DAI-DAN REPORT 2021-2022 - QUICK Money World
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DAI-DAN CO., LTD. DAI-DAN REPORT 2021–2022 DAI–DAN REPORT 2021–2022 DAI-DAN CO., LTD. https://www.daidan.co.jp/ For any feedback or inquiries relating to this report, please contact DAI-DAN CO., LTD. DAI-DAN REPORT 2021 PROJECT 1-9-25 Edobori, Nishi-ku, Osaka City 550-8520 Japan TEL. +81-6-6447-8000 E-mail: reportinfo@daidan.co.jp DAI-DAN CO., LTD. Published in November 2021
Contents Dai-Dan’s 118-year History 2012 Dai-Dan’s 118-year History ...................................................................................... A Message from Management ............................................................................... Dai-Dan Group Sustainability Policy .................................................................. Our Services ....................................................................................................................... 01 03 03 04 As a building services engineering and installation provider, Dai-Dan has continued to use Featured Interview with President Fujisawa ......................... 05 2011 its advanced technology to add comfort and vibrancy to interior spaces where people gather. Long-Term Vision Stage 2030 ........................................................................ 09 For more than a century, we have been expanding the breadth of our expertise and Mid-Term Management Plan Stage 2030 Phase 1《Preparation Stage》.... 10 securing the trust of our customers. JP Tower, Tokyo June Materiality at Dai-Dan ............................................................................................ 11 2021 At the same time, we are helping to achieve greater harmony with nature. February CREATE, Singapore 2020 Feature: Steering Our Way to Sustainable Growth ........ 13 June Material Issues and Progress of Corresponding Efforts 2019 Contributing to a carbon-free society .................................................. 13 May 1907 1923 1964 2019 Responding to changes in the business environment via DX .... 15 May Achieving high-quality medical environments .............................. 17 2017 May Enefice Hokkaido Recently Completed Noteworthy Projects ..................................................... 19 TM 2016 (new Hokkaido Dai-Dan’s Overseas Business ................................................................................ 21 Branch office building) is Sumitomo General Head Nagoya City Library, Aichi Nippon Budokan, Tokyo completed. Dai-Dan Innovation.............................................................................................. 22 Office Building, Osaka Cellab Healthcare Planning stage (planning and design) ............................................................... 23 Service Co., Ltd. is Construction stage (installation) ........................................................................... 24 1909 1931 April established. Operations stage (production activities/management/maintenance) ..... 24 2013 Technical Research Laboratory............................................................................ 25 March Singapore Branch obtains the 2003 certification of ISO 45001. August Dai-Dan Engineering ......................................................................................... 26 1993 Enefice Shikoku (new Shikoku Branch Industrial Applications ................................................................................................ 27 TM April office building) is completed. Medical Applications................................................................................................... 28 1987 October ICT Applications ............................................................................................................ 29 Bank of Japan Building, Bank of Japan Head Office The company is registered Hakodate Branch, Hokkaido Building, Tokyo 1984 New Research Center as a ZEB Planner. February is completed in Dai-Dan’s Practical Competence ....................................................... 30 1983 Technical Research Enefice Kyushu (new Kyushu Branch office building) TM Introducing Our Installations .................................................................................. 31 January Laboratory. is completed. Enhancing Our Installation Expertise and 1979 January The company celebrates Ability to Provide Design Solutions .................................................................... 34 1965 its 100th anniversary. December 1946 The company lists its stock on the first FY2020 CSR/ESG Targets and Performance ...................... 35 September section of Tokyo Stock Exchange. Environmental Contribution .................................................................................... 37 1943 Meeting Customer Expectations ......................................................................... 39 October The corporate name is changed to Initiatives with Subcontractors .............................................................................. 40 1933 DAI-DAN CO., LTD. Valuing Our Employees ............................................................................................. 43 March 1903 Technical Research Laboratory is constructed at Partnering with Hosting Communities .............................................................. 45 Miyoshimachi, Iruma-gun, Saitama Prefecture. Fair and Transparent Business Practices ....................................................... 47 The building of head office is constructed at the current place Dai-Dan’s Businesses (Edobori, Nishi-ku, Osaka City). Corporate Profile / Financial Highlights ........................................................... 51 Singapore Branch is opened. Third Party Opinion ........................................................................................................ 53 The corporate name is changed to Global Network ................................................................................................................. 54 Osaka Denki Danbo Co., Ltd. The corporate name is changed back to Osaka Denki Shokai/Osaka Danbo Shokai Co., Ltd. 1994 2010 2015 2017 Editorial Policy The corporate name is changed to Since fiscal 2008, we have been publishing our CSR report as a Osaka Denki Tekkan Kogyo Co., Ltd. means of informing our stakeholders of our business operations and CSR initiatives. In fiscal 2014, we renamed this publication the Osaka Denki Shokai/ Dai-Dan Report. Compiled as an integrated corporate report, it Osaka Danbo Shokai Co., Ltd. contains both financial and non-financial data in addition to the is incorporated. conventional content. Control Tower and Passenger Labs and Center Building, New K-1 Building, Nichia GINZA SIX, Tokyo Founded. Terminal, Kansai International Okinawa Institute of Science and Corporation, Tokushima Scope of This Report Airport, Osaka Technology Graduate University, Okinawa ・Target organization This report covers the operations of DAI-DAN CO., LTD. All financial information is reported on a consolidated basis. 1974 1996 2010 2018 ・Period This report covers the fiscal year spanning April 1, 2020, to March 31, 2021. Some data refers to activities after April 1, 2021. Report Guideline References ISO 26000 msb Tamachi Station Tower S / Ministry of the Environment Environmental Reporting Guidelines Supreme Court Office M-Wave Nagano Olympic Haneda Airport Terminal 2, Pullman Tokyo Tamachi, Tokyo (2018) Building, Tokyo Memorial Arena, Nagano Tokyo GRI Sustainability Reporting Standards 01 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 02
A Message from Management A Message from Management Our Services Inspired by Light, Air & Water Our Services At Dai-Dan, our duty has always been to provide people with safe, comfortable places in which to live and work, Electrical installations while also giving due consideration to the environment. Electricity is what brings a building to life, and it is our electrical installations This 118-year journey is one we have shared with a variety of stakeholders, not only our customers, but also the Inspired by Light, Air & Water / Dai-Dan Group Sustainability Policy that support its supply, creation, and storage. shareholders, investors, subcontractors, employees, and communities we have met along the way. Our installations are comprised of such varied elements as high-efficiency Electrical installations / Air conditioning installations / Plumbing installations power receiving and transforming equipment, solar power systems for We believe that continuing to meet their expectations will lead to raising our corporate value in a sustainable way. generating electrical power, LED lighting fixtures that help to lower power Going forward, we hope we can count on your continued understanding and support for our activities. consumption, storage batteries for optimizing power usage, and IoT-driven control systems. Dai-Dan assembles the various pieces of equipment into electrical systems that serve the intended purpose whether to build or retrofit buildings with ZEB technologies, ready buildings for disasters as part of business continuity planning, or other need. Air conditioning installations Shohei Kitano Ichiro Fujisawa It is our air conditioning installations that maintain optimal levels of temperature, humidity, and airflow to create high-quality living or working environments. Representative Director Representative Director They vary widely in size and performance from typical AC systems for office Chairman President buildings to precision models required by semiconductor manufacturing DAI-DAN CO., LTD. DAI-DAN CO., LTD. plants. Dai-Dan has advanced technologies and vast experience with planning, designing and installing air conditioning systems. In fact, the large data centers that underscore today’s internet society adopt many of our technologies—for example—to introduce cold outdoor air in order to reduce air conditioning load and to effectively direct cooled air towards IT equipment. Moreover, we can tap renewable geothermal energy as a heat source in order to efficiently manage a building’s energy balance to meet ZEB criteria. Plumbing installations Our plumbing installations both supply water that is high-quality and work to recycle it. In this field, we are putting our efforts into purification to prevent the Dai-Dan Group Sustainability Policy contamination of rivers and oceans and we also pursuing greater reuse of water, which is a limited resource. Our environmentally friendly plumbing equipment covers such processes as purifying contaminated water or wastewater from factories, or transporting supplies of water, whether hot or The management principles that guide the Dai-Dan Group explicitly challenge us to “create value for our customers while cold, or gas. contributing to the development of a better environment and stronger communities.” Those principles underscore the Corporate In addition to the above, the Plumbing Department also takes charge of firefighting equipment. As a company that is responsible for safety, we Code of Ethics on which we seek the trust of our stakeholders and the business activities through which we strive to solve the constantly strive to create installation technologies that can be relied on. problems facing society and the environment, and contribute to the realization of affluent but sustainable ways of life. In doing Water is something that we take for granted in our daily lives, and Dai-Dan what we can to help steer society towards true sustainability, we at Dai-Dan are committed to: is putting its technologies to work to ensure that does not change. 1. Finding and applying light, air and water technologies that protect the global and local environments while providing The Dai-Dan Group—centered on renovations and maintenance comfortable work and living spaces by reducing environmental loads. 2. Fostering a corporate culture that respects the human rights and individuality of all persons by welcoming diversity into the workplace. 3. Ensuring full compliance with laws, regulations and agreements by continuously improving our systems of corporate governance. 4. Maintaining an open dialog with stakeholders that allows us to meet social expectations and demands, and build strong bonds of trust with all. 5. Sharing this policy with group subsidiaries and subcontractors so that we can promote sustainability initiatives in unison. 03 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 04
Featured Interview with President Fujisawa Helping to bring about a richer, with President Fujisawa with President Fujisawa Featured Interview Featured Interview more sustainable society by refining our light, air, Mizutani: Dai-Dan announced its long-term vision in February this year and selected six areas of materiality, i.e., important Fujisawa: That’s right. In future, we will push for more analysis on the impact climate change will have on our business and and water technologies issues for management, by evaluating the impact on society disclose that information. With regards to encouraging the and the environment of your corporate activities. The first spread of ZEBs, we will go even further in our promotion concerns environmental issues, with net Zero Energy Buildings efforts than we have been. For ourselves, we are making Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies (ZEBs) as its central theme. I feel that many companies don’t progress with switching our older branch offices over to ZEBs; In 2023, Dai-Dan will reach its 120th anniversary. clearly address the question of how environmental initiatives tie so far, we have completed works in Kyushu, Shikoku, and Securities analyst Toshiya Mizutani, a Dai-Dan shareholder and investor, spoke to President Ichiro Fujisawa about the in to corporate value; how do you position environmental Hokkaido, now we’re turning our attention to Hokuriku. group’s vision and strategies for the future. issues within managing the company? Mizutani: It’s not just in the construction part either, you’re Fujisawa: This goes back to what I said a moment ago, but I verifying that energy input and output for actual operations are think carbon neutrality (CN)—moving from a low-carbon net zero, too. society to a carbon-free one—is a major theme for us as a Fujisawa: Yes. We believe that making smaller buildings ZEBs building services engineering and installation provider. On that in this way is a key way of achieving CN. That we are gaining basis, we will first go even further to achieve CN throughout experience with these construction projects at the same time our business activities, such as through energy-saving as accumulating expertise on the business operations front is measures at our offices or by introducing eco-friendly vehicles. becoming one of our strengths. Publicizing and passing these Mizutani: I saw that you have also announced your support on as we apply them to projects across the country will help to for the Task Force on Climate-related Financial Disclosures promote ZEBs even further. (TCFD) guidance. In developing environments where female employees can actively participate, DX now plays a major role Mizutani: Sticking with the theme of the environment, I’d like Fujisawa: That’s right. While the proportion of female to hear your thoughts on working environments where people employees has risen, most of that increase is in specialist jobs, want to work, and which pay due consideration to health and such as in design or as CAD operators, and in administrative safety. positions. By promoting DX, we’ve been able to connect job Ichiro Fujisawa Toshiya Mizutani Fujisawa: Last year, we formed a committee to look at ways of sites and offices remotely, and it has made it possible for Representative Director & President, DAI-DAN CO., LTD. Securities Analyst improving work-life balances within the company. Both the employees to do some job site tasks in the office. This has April 1979 Joined the company. May 2000 Joined KOKUSAI Securities (now Mitsubishi UFJ Morgan Stanley June 2009 Director, Corporate Officer, Head of Industrial Facilities Division, and Securities) where he worked corporate and industry surveys, and was committee and our change to the age of retirement to 65 are meant that female office workers have, in a way, taken Manager of Technical Department responsible for the construction industry in particular (an industry for which April 2013 Director, Senior Executive Corporate Officer, in charge of East Japan Area, and he has been responsible for more than 30 years) key examples for that topic. responsibility for certain aspects of progress made at job sites. General Manager of Tokyo Head Office 2007–2017 For 11 years in a row, he came in first place in rankings produced by an April 2018 Representative Director and President (currently) American financial magazine (in 2016, he was inducted into their Hall of Fame) Mizutani: Particularly in the case of publicly listed companies, As job sites are where the construction industry derives its April 2019 onwards Active as a workplace management consultant that those companies that have a large proportion of female profits, having female employees be part of our main business, directors or managers do well in terms of share value and has had a dramatic effect on productivity. performance is something we see all over the world. How do Mizutani: That’s fantastic. For management, using ZEBs to resolve environmental issues is the top priority you view developing environments in which female employees Fujisawa: Full-scale cooperation between our job sites and can play an active role? offices via remote communications first began in 2017. That Mizutani: During my more than 30 years following various energy consumption makes up a large proportion of the total Fujisawa: I’m aware that this is an issue in the construction was four years ago, making us one of the first in the industry to companies as a securities analyst, I get the impression that used by society as a whole. As such, we have always worked industry. In the past, women made up only 10% of this implement DX initiatives. I think that was probably one of the the past 5 years or so in particular have seen dramatic passionately to research and develop ways of saving energy and company—a woefully low figure. Of the 1,721 officers and reasons we were selected as a DX Stock. changes in the market environment. While in the past the only reducing environmental load for our equipment. In other words, employees who currently work for Dai-Dan (as of the end of Mizutani: I see. thing asked of companies was to increase profits, I feel that we have long been aware that ESG perspectives, particularly to June 2021), 14%, more than 250, are women. While most Fujisawa: At the Shareholders’ Meeting in June this year, there are now strong demands on companies to also consider do with resolving environmental issues, is something that our work in our offices, the number of female engineers working on Ikumi Sato, previously an outside auditor, was appointed as an ESG perspectives and work more for the environment and industry can make a major contribution towards. In recent years, job sites in our frontlines is also increasing. outside director, the first female to sit on the board. I like to society. though, I feel more strongly the importance of fully disclosing our Mizutani: From what I’ve heard, you’ve fully introduced a think that her accomplishment opens up a career path for our Fujisawa: The industry in which we work, building systems, is efforts and sharing them so that all stakeholders can understand digital transformation (DX) and this has been a massively female employees to aspire to. one that requires huge expenditures of energy; our industry’s what it is we do. positive major change for female employees. 05 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 06
with President Fujisawa with President Fujisawa Featured Interview Featured Interview Training excellent human resources on job sites is part of Dai-Dan’s 120-year-old heritage vital importance to us. It might sound obvious, but as evaluations of publicly listed companies are predicated on Mizutani: Moving on the S part of ESG—Social—could you Fujisawa: Then, for new employees, at least in the case of their ability to generate revenue, if we cannot achieve our give me some examples of the measures you take to invest in engineers, we carry out six months of group training. After that revenue targets, we will not be judged kindly. That could lead personnel and train younger employees? period, trainees are dispatched for three-month placements at to our market capitalization falling short of the standards set Fujisawa: As a building services installation and engineering job sites for each of the different corporate offices so that they for the Prime Market. Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies Helping to bring about a richer, more sustainable society by refining our light, air, and water technologies provider, we buy in all sorts of materials and components and get a real feel for job sites. Currently, we are incorporating Mizutani: That’s true. our job is to turn those into functioning equipment inside teleworking into the group training—through this and other Fujisawa: In terms of our status within the industry, which is a buildings. The important part to make devices and materials into means we are gradually changing our methods to meet the little easier to understand, we have set ourselves targets of a functional system is people, it is people who design layouts to needs of the times. That said, job-site training as the basis of 200 billion yen in sales and 10 billion yen in operating income fit the spaces provided and to complete the actual construction. our training is something we will never alter. in three years. If we can first achieve these targets, we will Mizutani: That makes sense. Mizutani: That’s part of the Dai-Dan corporate culture. have cemented our position as an industry leader. With a new Fujisawa: Engineers at construction job sites must have a Fujisawa: It is. March 2023 marks 120 years since Dai-Dan position will come a new perspective, and in turn new ideas broad swathe of knowledge about materials, equipment, and was founded and throughout all that time there are certain and then surely our behavior will also change. On the other technologies and they must be able to communicate with a things that have been passed down in an unbroken line, what hand, that we will contribute, however little, to resolving variety of representatives from different professions, as well as you could call Dai-Dan’s heritage. The changes we are seeing societal and environmental issues, is a fact that we must keep work moving even as they attend meeting after now are undoubtedly dramatic, but training personnel, share, and so raise the awareness of every one of our meeting—in other words, they must have the ability to create assigning them to positions, and having them challenge employees. building systems. themselves to produce results, is part of a corporate culture Mizutani: I’m not sure if they’re worried about being seen as Mizutani: Right. that remains unchanged these last 120 years. unfairly favoring their employees and business partners, but a be aware of and announce more firmly. I would have thought surprisingly large number of companies don’t expressly declare that boasting to society about your approach of working with that they value them. I think that’s something Dai-Dan should employees is something quite important, too. Aiming to make our employees happy, even as we work hard to give back to society and our shareholders Mizutani: I once attended a study seminar that discussed Mizutani: The way in which you announce information is really An approach of entrusting others to take on challenges will foster Dai-Dan’s next generation what was important for a company. The conclusion that was important. By the way, I feel that the pandemic has transformed reached was that whatever industry the company was in, the how society views companies. Mizutani: There’s one last thing I’d like to talk about. For uniforms seem very interested in them, don’t they? answer was information disclosure and dialogue. In other Fujisawa: I do, too. example, when you start to further promote DX, have you Fujisawa: Yes. The final result also applied some of the words, companies should disclose information, whether good Mizutani: In the past, if asked who a company was for, most considered appointing individuals in their thirties or forties to feedback we had from female employees who wanted or bad, and engage in dialogue with investors, shareholders, people would say shareholders. But now, the focus has take the lead or some other challenge? I think that could help distinct uniforms for men and women with different silhouettes and even ordinary people. Ultimately, I feel as though that must shifted somewhat from shareholders to stakeholders. So breathe new life into the company and lead to a new corporate and for the uniforms to be lined. What we ended up with is a be true. while shareholders are still included, the idea that companies culture. stylish design that doesn’t look like work clothing to an Fujisawa: In that respect, there are many of our initiatives that exist to benefit a range of people—society, employees, Fujisawa: Actually, only the other day, we renewed the design old-fashioned type like me! The tops come in an inner and an are well ahead of the rest of the industry that we could call business partners, the next generation, etc.—has become the for our work uniforms. To take charge of the project I picked a outer, there are three different varieties of trousers… the list society’s attention to. However, we aren’t yet able to disclose mainstream point of view. number of people I thought seemed capable from among the goes on. or publicize that information well and so people are not Fujisawa: I entirely agree. ranks of the job-site engineers and they were at its heart as it Mizutani: That’s wonderful. There was a frank and lively sufficiently aware of those; that’s something I’ve reflected on. Mizutani: As such, can you, as president of Dai-Dan, tell the went forwards. exchange of ideas. If the project had been left to just Mizutani: I see, that is definitely something I’d like to see stakeholders about the company’s aims for the future and its Mizutani: Oh, that sounds wonderful. higher-ups in the company, it probably wouldn’t have turned Dai-Dan improve on. long-term vision? Fujisawa: It really got the employees excited to tackle the out like this. Fujisawa: For instance, during the first state of emergency, Fujisawa: The company I would personally like to see Dai-Dan project independently. There’s a forum for engineers on the Fujisawa: I think that’s true. declared in response to COVID-19, we fully implemented become is one where employee happiness comes first. That’s company intranet and there’s tweet-like messages, mainly Mizutani: I think this is an excellent example of the company’s measures to prevent its spread. Moreover, we continued to because whatever kind of fantastic ideal we might set as our various questions and answers about technical matters, that corporate culture of setting challenges to get results in carry out maintenance work at medical institutions, including goal, no matter how well we outline our direction or organize engineers can write freely, from all over the country. When action. In other fields, say DX or similar, if you can appoint those that cared for those infected with the disease. Within the the company, unless employees can sympathize with that the forum asked employees what they wanted to see for the younger employees to work on it, and incorporate some company, we swore to react swiftly to any requests because a goal and work autonomously towards its achievement, we new uniform, they were soon dozens of replies. It also seems supervision from higher-ups, that could lead to even better fault in a single pump or ventilator could cause a hospital to will never see any results. Of course, our contribution to that using teleworking more they were able to make results. stop functioning, we didn’t publicize that intent outside the sustainability is not something we could step away from, and progress. Fujisawa: I agree. And I think that brings our discussion to a company for more than a brief time. our shareholders, who support our business activities, are of Mizutani: The employees at job sites who will be wearing the close, thank you for speaking with me today. 07 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 08
Long-Term Vision Stage 2030 Mid-Term Management Plan Stage 2030 Phase 1《 Preparation Stage》 Moving from building services engineering and installation to creating value in spaces (FY2021–2023) Long-Term Vision Long-Term Vision In February 2021, we announced our long-term vision, Stage 2030, which will take us through to 2030. This vision is split into three stages we wish to achieve, the first of which started in April 2021 with our three-year Mid-Term Positioning of the Mid-Term Management Plan, Preparation Stage, within Stage 2030, our long-term vision Stage 2030 Mid-Term Management Plan Stage 2030 Phase 1 《Preparation Stage》 Management Plan, entitled Preparation Stage. ■ As we move towards 2030, the end point for our long-term vision, the first three years will be the Preparation Stage, in which we strengthen our foundations in Japan and overseas. What is a “space value creator”? ■ As we try to expand consolidated sales, we will also challenge ourselves to open up new business and establish a corporate group framework. ■ We will aim to become a space value creator, and go beyond the framework of being a building services engineering and Since our founding, we have always installation provider to offer value for customers’ spaces. provided the equipment needed for living Phase Phase Phase and working spaces that the times demand as a building services engineering and installation provider. As a company involved in space value 1 2 3 Phase 1 《Preparation Stage》Strategies creation—a space value creator—it is our Preparation Refining Excellence Basic Policy Business Strategy 《Preparation Stage》Strategy role to satisfy the needs of customers and Stage Stage Stage society through the “creation” of “spaces” ・Expand industrial facility works Expand core businesses ・Strengthen renovation and maintenance that have the essential and potential services “value” they demand. Comfortable, optimal spaces In order to continue contributing to the Demonstrating ・Develop a unified foundation for overall group Strengthen overseas business overseas expansion realization of a sustainable society and to Developing Bolstering overall ・Open up new business sites capabilities continue creating value in spaces, we must foundations in group capabilities Japan and overseas go beyond the framework of being a ・Strengthen competency for construction building services engineering and Enhance technical capabilities job sites To end of FY2023 To end of FY2026 To end of FY2029 ・Expand ZEB and IoT businesses installation provider and enter a new stage Richer, more sustainable society of our evolution as a space value creator. ・Contribute to practical application of Open up new businesses regenerative medicine ・Promote environmental load reduction business ・Improve working environment Basic policies and business strategies Trustworthiness and Bolster business foundations ・Strengthen the corporate group organizational depth framework ・Promote DX Through our business activities, we will help to make a richer society and to resolve the myriad issues that face society. Phase 1 《Preparation Stage》Targets Comfortable, optimal spaces To lead daily lives or to operate businesses requires spaces with comfortable, optimal environments. Preparation Stage Year 1 Preparation Stage Target Item (FY2021 forecast) (FY2023) By refining the elements of light, air, and water through our technologies, we will continue to be a corporate group that can offer new value through spaces. 200 billion yen Sales (consolidated) 168 billion yen Increased proportion from Richer, more sustainable society consolidated subsidiaries So that people can lead safer, healthier lives with peace of mind, a more sustainable society is called for. Operating income (consolidated) 7.5 billion yen 10 billion yen Through our new technologies and advanced specialisms, we will continue to be a corporate group that can help bring about a richer, more sustainable society. ROE 8% or higher Financial indices Trustworthiness and outstanding organization Dividend payout ratio 30% or higher DX promotion (construction job For an organization to continue to provide value to society, the most important thing is to have reliable personnel. sites/work style reform) By fostering such human resources, we will raise corporate value and continue to be a corporate group that is Investment plan Corporate group reinforcement 20 billion yen over 3 years trusted by all its stakeholders. (3-year cumulative) New business, research, development, etc. 09 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 10
Materiality at Dai-Dan Selecting Areas of Materiality Materiality Mapping Long-Term Vision Long-Term Vision To promote activities aimed at fulfilling our social responsibilities as a building services engineering and installation provider, we We selected 18 issues for which both the impact on stakeholders in terms of the environment, society, and other factors, and the have long been guided by the “challenge of creating value for our customers while contributing to the development of a better importance to Dai-Dan, was high. environment and stronger communities,” as set forth in our management principles at Dai-Dan. We are conscious of the fact, By mapping the levels of both, we came up with six material issues. though, that it is more important than ever to contribute to the achievement of the UN’s Sustainable Development Goals (SDGs) and grow sustainably, hand-in-hand with society. As such, we have evaluated the impact of our business on society and the Extremely Enhancing quality and environmental management Contributing to a carbon-free society high Materiality at Dai-Dan Materiality at Dai-Dan environment, and selected specific areas of materiality (material issues) in which we should prioritize our efforts. Impact on stakeholders in terms of the environment, By addressing these issues, we aim to maximize the value we provide our stakeholders. —with special consideration for shareholder and Putting in place better corporate governance Designing working environments where people want to work with Strengthening compliance Furthering water conservation attention to health and safety society, and other factors investor perspectives— Respecting human rights and Achieving high-quality Material Issue Selection Process adhering to labor standards medical environments Promoting innovation and improving Promoting gender equality Responding to changes in the business productivity through research and and female participation environment via DX better trained human resources 1. Issue Selection 4. Board of Directors Reducing waste Building better partnerships with 2. Issue Grouping and Resolution 5. Updates (Stakeholder subcontractors and suppliers We referred to both the SDGs, Dialogue) Prioritizing The issues were considered from which are a series of international We made a list of the 18 3. Stakeholder Dialogue the standpoint of our management By deepening the level of dialogue targets to make a better, more Producing resilient local candidates to be our important Through discussions with external plan and other factors, and discussed we have with stakeholders, we plan sustainable world, and other communities with the Creating jobs and supporting Devising healthy living spaces issues and evaluated them from stakeholders, we verified the in-house. We narrowed down the list to to revise our material issues, targets, international guidelines (including participation of the community employees to learn skills two perspectives: 1) impact on importance of the issues identified. six material issues for which efforts and key performance indicators GRI Standards, ISO 26000, and stakeholders and, 2) importance are a top priority, which received (KPIs) to adapt to changes in the SASB Standards) to identify Providing optimal objects to Dai-Dan. final approval from the Board of social environment. Bolstering our risk management issues that affect our company. and spaces Directors in January 2021. High High Importance to Dai-Dan Extremely Implementation of the PDCA cycle in line with the period of the Mid-Term Management Plan high Material Issues and KPIs * In the Features over the following pages, we will introduce our efforts to tackle these material issues. Participation in the UN Global Compact No. Material issue KPI FY2020 performance Target Remarks SDGs We are onboard with the United Nations Global Compact as a signatory and responsible corporate citizen committed to Reduced 36% from FY2013 levels Long-term target: FY2030 Reduce greenhouse gas (GHG) emissions (Scopes 1 & 2) (FY2020: 3,996 t-CO2) realizing a sustainable society. We fully agree with the Ten Reduce 46% from FY2013 levels (FY2013: 6,235 t-CO2) Principles espoused in the fundamental areas of “Human Contributing to Long-term target: FY2030 Rights,” “Labour,” “Environment” and “Anti-Corruption,” and 1 Reduced 11% from FY2013 levels Reduce 46% from FY2013 levels Set mid-term reduction targets for GHG develop strategies and activities to enact these values with Feature a carbon-free Reduce GHG emissions by our offices (FY2020: 1,637 t-CO2) emissions from electricity consumption, society (FY2013: 1,842 t-CO2) Mid-term target: FY2023 particularly from offices the wholehearted commitment of top management. Reduce 24% from FY2013 levels Increase cumulative total of projects (no. of orders and gross floor 9 orders Cumulative total Disclose cumulative total for gross floor area, incl. for ZEB planning orders, as area) related to ZEBs Gross floor area: 131,405 m2 for FY2021–23: 40 one of the indicators we monitor Increase instances of job site adoption of ICT tools such as 3D Disclose the no. of instances for each recording and conversion technology 6 cases fiscal year as one of the indicators we Responding to monitor 2 changes in the Increase no. of job sites implementing job site support remote Feature business environment 217 projects FY2023: 320 projects teams via DX Teleworking implementation rate FY2021 Q1: 32.5% Set targets for FY2022 onwards Expand usage for medical development devices and systems Cumulative total 13 cases for FY2021–23: 30 (sputum collection booths and the INF Series) Achieving 3 Expand usage for regenerative medical devices and systems Cumulative total Feature high-quality medical (incl. animal racks) 3 cases for FY2021–23: 45 environments Expand collaborative relationships outside the company for Disclose the no. of relationships in 4 cases practice per fiscal year as one of the business creation (universities, start-ups, etc.) indicators we monitor Promoting innovation and Increase net sales per domestic engineer 131 million yen per person FY2021: 135 million yen per person Support for TCFD Guidance improving productivity 4 through research and better Increase no. of intellectual properties held (incl. patents and other Patent rights: 127 We have announced our agreement with the guidelines trained human resources expertise) published by the Task Force on Climate-related Financial Disclosures (TCFD). To aid in the achievement of a carbon-free Answers from employee questionnaires Improve employee satisfaction 2.54 FY2023: 2.7 or above (max score 4.0) society, we will evaluate climate-related risks and opportunities Designing working that may come up in our business and proactively disclose 5 environments where people Frequency rate of job site accidents 0.25 FY2021: 0.25 their potential impact. want to work with attention Calculate employee accidents or to health and safety illnesses resulting from work tasks that led to one day or more work missed Severity rate of accidents 0.004 FY2021: 0.01 Improve retention rate for subcontractor Meisters and Excellent FY2023: Meisters: 72% Building better partnerships Meisters: 75% or higher Foremen Excellent Foremen: 46% 6 with subcontractors and suppliers Excellent Foremen: 50% or higher No. of CSR procurement agreement forms collected from Cumulative total for FY2021–23: subcontractors and suppliers 3,600 companies 11 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 12
Steering Our Way to Sustainable Growth Construction work ends on enefice Hokkaido Feature (Hokkaido Branch Office) Material Issues and Progress of Corresponding Efforts Construction on enefice Hokkaido began in May 2020 with a design that incorporated the following concepts: Of the six issues we selected as material issues, ∙ Resilience against disaster damage here we introduce efforts to address three of them. ∙ Cold-weather ZEB that pushes forward ZEB technologies further ∙ A “wellness office” that considers ease of working Construction work on enefice Hokkaido was completed in Feature 1 Feature 1 June 2021. The building achieved our target of creating a cold-weather ZEB as it received five-star ZEB certification under the Building-Housing Energy-efficiency Labeling System (BELS) ■ BELS 5☆『ZEB』 ■ CASBEE rank S Feature as a building with energy-saving characteristics. The building was 1 Contributing to a carbon-free society also given S ranking under the CASBEE-SWO system, which Contributing to a carbon-free society Contributing to a carbon-free society evaluates a building’s environmental characteristics, the wellness it offers users, and the specifications, characteristics, and efforts With an eye on achieving carbon neutrality by 2050, the government declared a target of reducing Japan’s CO2 emissions by aimed at supporting the maintenance and improvement of comfort. 46% from fiscal 2013 levels by 2030. In terms of the building’s running, it uses a cloud-based supervisory control and data acquisition system, REMOVISTM, Of the country’s total CO2 emissions, the business category, which includes office buildings, accounts for around 17%. As and promotes further efforts towards becoming carbon-free. such, energy-saving measures for buildings to reduce emissions is an urgent issue. More than ever, ZEBs are indispensable for a carbon-free society—as their specifications that have low environmental load, they are installed with highly efficient equipment, and they use electricity derived from renewable energy sources for virtually zero energy consumption. Dai-Dan is Reducing LCCO2* effectively 4 actively working to encourage the spread of ZEBs. When considering how much a building produces in terms of CO2 emissions over the course of its whole life cycle, from Dai-Dan Hokuriku Branch Office Renewal Project construction to demolition, more than 60% of CO2 is emitted Monitoring REMOVIS center during the time the building is in active use. Carbon-free Monitoring/ initiatives, therefore, start by creating buildings with a low management Data ■ BELS * 5☆『 ZEB 』 1 environmental load, but it is more important that they are also Instructions Data PC run with a small load. Instructions Daily equipment, device, and Since operations began at enefice Shikoku in May 2019, the Data operations status verification use of REMOVIS has allowed us to monitor the building remotely Energy usage status confirmation and carry out timely eco-tuning so that it meets ZEB criteria even Timely eco-tuning when in use, which led us to receive an award at the 9th Carbon enefice Shikoku enefice Hokkaido Neutral Awards. To minimize the amount of energy used to heat or cool offices, and resolve the problem of different people feeling temperatures differently, we developed the seat-based, ■ Clima chair task-specific heating/cooling system, the Clima chairTM*5, and we have been able to verify its validity. Heating mode *1 Building-Housing Energy-efficiency Labeling System Dai-Dan pays careful attention to comfort and ease of Hamstrings warmed by built-in heater working as it applies effective energy-saving technologies. By continuously optimizing these applications, we will endeavor to We have started work on a project to renew our Hokuriku Cooling mode reduce LCCO2 effectively. Branch Office, both because of the existing building’s age Upper body cooled by air blown *4 Life Cycle CO2: refers to the total amount of carbon dioxide emitted over the from both sides and as part of our resilience*2 measures. Work is expected entire life cycle of a building (from design to construction, running, and demolition) Hamstrings cooled by air suction to continue until June 2022. The design for the new office *5 Manufactured by Okamura Corporation building is inspired by a fusion of tradition and innovation and uses wooden building materials such as CLT*3 as well as straight-eave tiles. That design results in a next-generation ■ ZEB Leading Owner ■ ZEB Planner ■ Eco-tuning Provider office building that harmonizes with the surrounding town Dai-Dan has been registered Having been registered as a ZEB No. 200144 while also considering both the environment and ease of as a ZEB Leading Owner, an Planner, we offer potential working. With the building we have achieved ZEB Ready status. advanced building owner that has customers consulting services The home of the new building, the city of Kanazawa, has constructed a net-zero building. such as proposal and planning We contribute to the adoption of for ZEB conversions as well as established a set of five courses of action for Imagine ZEB by disseminating information design, installation, and operation Kanazawa 2030 as the city’s own SDGs. through tours and by encouraging services. Dai-Dan supports Kanazawa’s initiative and through the customers to experience the renewal of its branch office will seek to help give form to a benefits of net-zero construction. more sustainable regional community. *2 Refers to the ability of a building to resist damage during an unexpected Construction record Planning record In March 2021, we were certified as crisis and remain functional, or its ability to return to normal function as quickly as possible an Eco-tuning Provider; now, we Number of ZEB assets 3 units ZEB 3 units are contributing to improvements to *3 Cross-Laminated Timber: wooden building material created by sticking Others 18 units overlapping, perpendicular wooden boards together for a thick material the ways our customers run their which better resembles natural timber buildings appropriately. 13 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 14
Feature Responding to changes in the business 3 BIM applications 2 environment via DX BIM integrates stages from design to installation, maintenance and management and to utilize it to make work tasks more efficient, our branch office buildings (in Kyushu, Shikoku, Hokkaido, and Hokuriku) are working to construct a workflow that To further promote DX, we have established a new set of IT and digital strategic policies. Since we were uses BIM as they go through their building renewals. selected as a DX Stock 2020, we have been accelerating our efforts and we are now pushing forwards with DX technologies that utilize people. Our BIM coordinators are involved in the projects from the design stage. ■ enefice Shikoku (Equipment perspective images) Their role is to make adjustments to equipment installations and positioning, and to maintenance spaces, to investigate prefabrication 1 Dai-Dan Group IT & Digital Strategic Policies for piping and modular equipment and devices, and to carry out Feature 2 Feature 2 front-loading that incorporates this into the installation drawings. After Philosophy & vision IT and digital strategic policies and measures installation work starts, their ability to quickly order materials or undertake work will hopefully allow fewer engineers or workers for Promoting DX technologies that utilize 1 Promoting building system DX construction work. people to achieve our long-term vision Responding to changes in the business environment via DX Responding to changes in the business environment via DX By promoting DX and BIM in the design and installation stages, we will increase Furthermore, in addition to ensuring an optimal building environment of becoming a space value creator the efficiency of installation processes; we will also carry out R&D towards advanced applications of ICT. through various technical calculations and simulations via BIM, we are · Use digital technologies in every stage of a working on achieving labor savings in daily management tasks (daily building’s life cycle to provide customers with 2 Improving and expanding our IT foundations better spaces We will promote reforms to work styles, make use of cloud-based operations, and cleaning, inspections, preventive and conservation efforts, etc.) in the · Bring about reforms to work styles so employees improve, and then expand, our hardware and telecommunications environment. maintenance and management stage too, by using spatial information. feel involved through digital technologies and 3 Strengthening our governance system create better human resources to raise We will enhance our information security, strengthen our IT and DX promotion organizational value framework, evaluate our performance via major results indices, and disclose information. ■ Plumbing unit shown using BIM 2 Remote Support Team initiatives using the ICT environment ■ Hokuriku Branch Office (Night lighting artist’s impression) Using the ICT environment (online meetings, cloud file servers, shared BIM*, CAD software, etc.), the Remote Support Team of CAD operators, who 1 once had to be stationed onsite, can now offer effective support remotely and are contributing to improvements in productivity. It will also allow us to cater to a variety of work styles, including limited working hours for those raising children, teleworking during the pandemic, or other situations. Remote support RTR*2 Blueprint RTR As well as splitting up individual support tasks (creation of BIM/CAD Via online meetings, the teams share BIM and CAD 3D diagrams, job-site paperwork, documents to notify government images with jobs-site employees and can carry out blueprint agencies, etc.), adjusting schedules, supporting blueprint and reviews or give advice remotely. This allows them not only to document preparation needed during verify construction quality, but also construction, and making labor-saving contribute to improvements in the changes to job-site tasks, the teams also engineering skills of less experienced offer support for organizing survey records job-site employees. and producing other types of construction completion-related documents. 4 Application of ICT installation support tools Remote job-site patrols Security patrols As part of job-site management or installation, we apply the ICT technologies that we have introduced to make tasks more Mobile web cameras allow images to be shared between offices To ensure information security, we can check the running status efficient and increase quality. and workplaces, and we are conducting progress checks and of job-site computers remotely. This reduces the number of ● Temporary installation materials ■ Temporary installation materials management system quality patrols remotely. tasks that require employees to visit sites and massively management system that uses increases efficiency. Bluetooth beacons (wireless Display and reservation transmitters) System structure management system Video transmission and calls ● Tablet-controlled building Data server Internet Patrols equipment marking system (Cloud) AP server (Cloud) ● 3D recording (3D scanners and Rx Rx Cloud Save videos/ point cloud processing software) LTE DB ∙ Displays locations of photos Phone interviews work vehicles and scaffolding, etc. Mesh ● Mixed Reality projection ∙ Manages reservations Realtime meetings alongside Rx network Rx GW Relay ∙ Monitors equipment technologies in job-site progress live video footage Video viewing management tasks and calls Rx Time required: ● Information-sharing cloud servers approx. 10 mins. and dedicated websites with subcontractors Check job-site computers remotely Tx Tx Legend Possible to manage Tx reservations or *1 Building Information Modeling: a system that creates building information models that include not only 3D computer-generated modeling information, but material Rx Receiver operational statuses and component specifications and characteristics and finishes, combined with additional, related information about the building. At every stage from design to construction and operations, the system allows blueprint preparation, estimates, various technical calculations, simulations, and other processes to be effectively Beacon Tx Transmitter by tablet or PC (Check via web browser) linked and put into practice, for higher quality. advertising *2 Remote Team Review 15 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 16
Feature Achieving high-quality medical environments 3 Initiatives in the field of regenerative medicine To provide high-quality medical treatment requires there to be a safe medical environment in place. Dai-Dan is an equipment engineering pioneer, and as such we now offer safe, easy-to-use facilities that are optimized for medical institutions that Initiatives to introduce operation support services handle cell products as part of regenerative medicine. Currently, as the number of requests we receive from customers for operation support post-installation has increased, so as to propose even better medical environments, we are working to Through joint research with universities and other companies, we are gaining the operations management expertise needed for provide services that bring together design, installation, and operation support for assistance that goes beyond just the regenerative medicine-related facilities and are giving concrete form to services our customer will find useful. installation front. Feature 3 Feature 3 ① Preparing operational procedure documentation (through joint research with the Center for Transfusion Medicine and Cell Therapy at the Keio University School of Medicine) Launch of operation support services As part of our joint research with Keio Achieving high-quality medical environments Achieving high-quality medical environments University School of Medicine’s Center for In order for Dai-Dan to develop products for use in Transfusion Medicine and Cell Therapy, regenerative medicine and offer operational support for we have installed air barrier booths in cell processing facilities (CPFs), we are utilizing joint their CPF and general-use rooms. Given research with customers as a means of establishing that work applications vary, operational operation support services that are catered to the specific procedure documentation that also takes the installation room into account is applications or scales of different facilities. As the first Planning Providing required. Keio University Hospital is stage of these efforts, we launched a maintenance service operation support operation support actually using our air barrier booths in business in the last fiscal year, and that business has been services services their work, and we are working together to taken over by our subsidiary, Cellab Healthcare Service Facility engineering formulate optimal operational procedure Co., Ltd. (CHS) from this fiscal year onwards. Going capabilities Provide feedback documentation using their results. forward, we will strengthen cooperation between Dai-Dan (Hospitals, pharmaceutical based on manufacturing, cell product Air barrier booth for installation Air barrier booth for installation and CHS on a range of projects, including preparing production) consultations when Develop methods of providing services in CPFs in general-use rooms operational procedure documentation, providing operation supporting operations support systems that utilize our cloud-based automatic control system REMOVIS. By proposing a wide array of support tasks, we will help lighten the load for medical practitioners and contribute to making medical ② Developing an operation support system using the IoT and cloud (through joint research with Cuorips) environments higher quality and easier to use. In conjunction with Cuorips Inc., we are researching methods of managing CPF remotely in an optimal manner using REMOVIS. In order to be able to also monitor the status of manufacturing sites remotely, we are incorporating customer requests into REMOVIS and We are also suggesting ways in which our products can evaluating those changes. It is expected to do well in future in the medical industry as a CPF management method focused on DX. be adapted to medical treatment processes in medical institutions. From booths in which cells are produced to the rooms where patients receive treatment, we are supporting medical procedures through medical environments by creating safe, easy-to-use facilities. Air Barrier CPF TM Product lineup Clean booths Cell processing Surgery Patient room facility (CPF) Diversification of our services business TM We will combine the facility engineering Accumulated Air Barrier CPF TM Karatto-Ope TM Hybrid operating room Room for compromised patients Investment in regenerative intellectual properties TM capabilities that we have gained at medicine-related ventures and expertise Dai-Dan with expertise we have acquired Selected Selected through joint research to create a new business, operation support service. In line with medical procedures, Moreover, as well as in investing in we provide the items needed regenerative medicine-related ventures TM from our product lineup. Hotto Cure TM (Room for compromised patients) that show future potential, we are active in expanding our business into such Joint research areas as cell production contracting. Establishment of Expansion of Facility Medical treatment in a dedicated operation support our services Cell production at the hospital Commercialize at Administer to patients engineering (not cultivation) other facilities at the hospital room for compromised patients business business 17 D A I - D A N R E P O R T 2 021 D A I - D A N R E P O R T 2 021 18
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