The GIKEN Group defines materiality as critical issues to be worked on in the medium to long term, aiming to create both corporate and social value in a sustainable manner. We identified materiality in consultation with external experts and stakeholders as follows.
(1) Extraction of candidate megatrends and social issues
The Sustainability Committee, in consultation with external experts, listed a wide range of megatrends and social issues, referencing various guidelines such as GRI and SASB, the evaluation items of ESG rating agencies, and the materiality of other companies in the same industry.
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(2) Discussion of opportunities and risks at internal workshops
We held multiple workshops with members from across the Group and departments to discuss the list of megatrends and social issues, considering opportunities and risks for our company and stakeholders.
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(3) Dialogue with stakeholders
We exchanged opinions with stakeholders such as suppliers, customers, employees, and government agencies, and conducted interviews to identify social issues of high interest and expectations for the GIKEN Group.
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(4) Importance evaluation and materiality identification
Based on considerations at workshops and dialogue with stakeholders, the Sustainability Committee evaluated each item from the perspective of its impact on our corporate value and the level of interest and expectations of stakeholders regarding our business. Items with a significant impact on both were identified as materiality and grouped together. The materiality were then approved by the Board of Directors.
Identified materiality
We identified materiality that have a significant impact from the perspective of impact on our corporate value and the level of interest and expectations of stakeholders regarding our business. In addition, we grouped the identified materiality into defined themes in order to address them.
Recognition of opportunities and risks related to each materiality and main initiatives
Table 1 Critical issues related to materiality and recognition of opportunities and risks
| Materiality theme | Related critical issues | Recognition of major risks | Recognition of major opportunities |
|---|---|---|---|
 Environment Manufacturing and construction in harmony with the natural environment | ・Climate change ・Biodiversity ・Life cycle assessment | ・Failure to address environmental issues throughout the entire life cycle, including the supply chain and post-construction could lead to a decline in orders and increased economic costs | ・Growing customer interest in environmental issues leading to increase in orders through construction with low environmental impact and the establishment methods for evaluating environmental impact |
 Social Provision of construction that supports building a sustainable society | ・Sustainability of cities and communities ・Maintaining and renewal of social infrastructure ・Measures for Disaster prevention and mitigation ・Urbanisation in emerging countries | ・Infrastructure maintenance and renewal costs could rise, leading to plateauing or contraction in construction demand | ・Securing demand for new construction and renewal of urban infrastructure ・Growing need for disaster prevention and response |
| Social Responsible supply chain management and partnerships | ・Partnerships ・Procurement practices ・Human rights and labor practices | ・Partners could go out of business due to labor shortages ・Incidents such as human rights violations could occur at suppliers | ・Accelerating business expansion, including globally, through the establishment of partnerships |
| Social Creation of an organization where diverse human resources are able to flourish | ・D&I ・Engagement ・Realisation of diverse work styles ・Human resource development ・Development of talent that drives innovation ・Improvement of the work environment | ・As the labor shortage in the construction industry worsens, factors such as an increase in resignations and deterioration of reputation could hinder the acquisition and development of human resources | ・Improving productivity and strengthening technological competitiveness by acquiring and developing talented human resources and creating a workplace environment where each individual can demonstrate their abilities |
 Economy Pursuit of Construction Revolution through technological development | ・Innovation ・Digitalisation and DX ・Quality ・Protection of intellectual property rights | ・The emergence of new construction methods and digital transformation of the entire industry could render our press-in method obsolete or diminish our competitive advantage | ・Maintaining competitive advantage in the market through the further development of the press-in method ・Expanding into new markets and building new business models through the development of new technologies |
 Governance Sophistication of governance and thorough implementation of compliance | ・Fair trade ・Corporate governance ・Corruption prevention | ・Deviations from social norms and violations of laws and regulations could damage the trust of stakeholders | ・Gaining trust and enhancing corporate value through effective governance and legal compliance |
Table 2 Initiatives addressing materiality, management indicators, and related policies
| Materiality theme | Our initiatives (Explanation provided in separate table) | Management indicators *To be further considered and disclosed in sequence. | Related policies [Related initiative No.] *To be further considered and disclosed in sequence. |
|---|---|---|---|
Environment Manufacturing and construction in harmony with the natural environment | (1) Development of press-in machines compatible with electrification (2) Promotion of the use of renewable materials (3) Visualisation of product environmental impact | ・GIKEN Group supply chain CO2 emissions (related to initiatives (1), (2), and (3)) | Approach to TCFD Recommendations Approach to Carbon Neutrality (1)(2)(3) |
| Social Provision of construction that supports building a sustainable society | (1) Improvement of productivity at press-in construction sites (2) Development of GRIN BaseTM EC (3) Popularisation of press-in method in Japan and overseas | ・Construction method usage results (related to initiative (3)) | Development Policy (1) GRIN BaseTM EC Delivery Results (2) |
| Social Responsible supply chain management and partnerships | (1) Expansion into overseas markets (2) Promotion of industry-academia-government collaboration (3) Formulation of procurement policies and guidelines | ・Collaboration status in overseas markets (related to initiative (1)) ・Number of technologies and research frameworks created or participated in through industry-academia-government collaboration (related to initiative (2)) | Collaboration with the International Press-in Association (IPA) (2) |
| Social Creation of an organization where diverse human resources are able to flourish | (1) Creation of an environment where diverse human resources can play an active role and be promoted (2) Investment in human capital (3) Development of an environment for innovation (4) Implementation of “KENKO Investment for Health" | ・Percentage of female managers (related to initiative (1)) ・Detailed medical examination rate (related to initiative (4)) | Promotion of Active Female Participation (1) KENKO Investment for Health (4) |
Economy Pursuit of Construction Revolution through technological development | (1) Initiatives to develop elemental technologies (2) Enhancement of added value through the use of digital technologies | ・Market introduction status (related to initiative (2)) | Development Policy (1) DX at GIKEN (2) |
Governance Sophistication of governance and thorough implementation of compliance | (1) Strengthening of governance system (2) Thorough compliance among executives and employees | ・Disclosure of governance information (related to initiative (1)) ・Implementation of education and training (related to initiative (2)) | Corporate Governance (1) |
Table 3 Management indicators, targets, and current status related to materiality
| Materiality theme | Management indicators | Targets | Current status |
|---|---|---|---|
Environment Manufacturing and construction in harmony with the natural environment | ・GIKEN Group supply chain CO2 emissions | FY Aug 2031 Scope 1 and 2: 1,889 t-CO2 Scope 3: 175,763 t-CO2 | FY Aug 2023 Scope 1 and 2: 2,239 t-CO2 Scope 3: 208,479 t-CO2 ・Initiatives toward carbon neutrality : Compatibility with biofuels, modal shift and cost reduction, and introduction of renewable energy |
| Social Provision of construction that supports building a sustainable society | ・Adoption of models and ICT devices that improve productivity ・GRIN BaseTM-EC delivery results ・Construction method usage results | Undisclosed; results will be disclosed in sequence | ・GRIN BaseTM-EC delivery results ・Construction method usage results |
| Social Responsible supply chain management and partnerships | ・Collaboration status in overseas markets ・Number of technology/research frameworks created or participated in through industry-academia-government collaboration ・Formulation of supplier guidelines | Undisclosed; results will be disclosed in sequence | ・Collaboration status in overseas markets |
| Social Creation of an organization where diverse human resources are able to flourish | ・Percentage of female employees in management positions (GIKEN LTD. unconsolidated) ・Number of foreign employees (GIKEN LTD. and GIKEN SEKO CO., LTD.) ・Rate of detailed examination | FY Aug 2027 12.0% (Scope: GIKEN LTD.) FY Aug 2027 10 hires (Scope: GIKEN LTD. and GIKEN SEKO CO., LTD.) FY Aug 2027 50% (Scope: GIKEN LTD.) | FY Aug 2024 10.2% (Scope: GIKEN LTD.) FY Aug 2024 11 currently employed (Scope: GIKEN LTD.) FY Aug 2024 27.8% (Scope: GIKEN LTD.) |
Economy Pursuit of Construction Revolution through technological development | ・Market introduction status | Undisclosed; results will be disclosed in sequence | ・Introduced G-Lab™ series to the market |
Governance Sophistication of governance and thorough implementation of compliance | ・Disclosure of governance information ・Implementation of education and training | Disclosure of governance information Compliance training at least once per year | ・Disclosure of governance information ・Conducted training for all employees (yearly since 2022) |
Published on Sep 19, 2025