Supply Chains
Sustainability-Conscious Procurement Activities
We conduct procurement activities in line with our Procurement Policy and Procurement Guidelines formulated in March 2023. We are working to realize a sustainable society by considering sustainability throughout our supply chain in our procurement activities and seeking our supplier partner companies¡¯ understanding of our policies.
Initiatives for Securing and Training a Labor Force and Establishing a Sustainable Supply Chain
We formulated rules regarding the negotiation of prices that reflect costs in line with the Guidelines Concerning Price Negotiation for Appropriate Shifting of Labor Costs published in November 2023. In FY2024, we negotiated with our partner companies in nearly 500 subcontracting agreements regarding the setting of prices that reflect costs. We do not intend to conduct this initiative in one single fiscal year. We will be conducting it steadily every fiscal year.
In FY2024, we conducted a survey of around 400 major partner companies to learn information to strengthen our collaboration with the supply chain and advance mutual growth and prosperity. Based on the results of the survey, we will make improvements and reinforce our relationships of trust with our partner companies to continue our mutual growth. We will continue to conduct surveys to introduce various perspectives in the improvement and development of our business.
Concrete Initiatives

Co-Creation with the Supply Chain
Both the Company and our partner companies as one of our supply chains are struggling to secure a labor force due to a declining working age population and harsh working conditions. In particular, we recognize securing skilled workers as a critical issue involving the continued existence of the construction industry itself, and are therefore working together with partner companies on a solution.
- Provision of a comfortable working environment (Fan-Cooled Apparel , subsidies for assistive suit purchase costs)
- Training and support of skilled construction workers(Promotion of CCUS)
- Collaborative Activities with the Nishimatsu Subcontractor¡¯s Network (N-NET)

Strengthening Client and ForemanEducation
Since 2017, we have been focusing on educating clients and foremen, who play an important role in preventing accidents at worksites.
We provide training for all partner companies twice a year under the title ¡°Responsibilities of clients¡± at safety meetings for regional headquarters and branches, and accident prevention meetings atworksites.
In addition, regarding education to improve foreman skills, we mandate that foremen undergo training within five years from their previoustraining.
Safetymanagementisgraduallychangingfrombeingledby the prime contractor to a framework of safety management carried out by the subcontractors (partner companies) themselves, in cooperation with the primecontractor.

- Clienteducation
- Under the basic philosophy that prime contractors, as well as clients, are the leaders of worksite safety management, we offer seminars twice a year to educate clients on topics they need to understand. COVID-19 made group gatherings challenging in FY2020 and we were only able to accommodate 776 participants (approximately 1/4 the number from the previous fiscal year).

- Skill improvement training forforemen
- Foremen are the key personnel for protecting the safety and health of skilled laborers. Focusing on the foremen¡¯s association, which is composed of these professionals, we mandate attendance at one skill improvement class every five years. The objectives are: worksites with good communication, worksites that are always tidy and organized, and worksites that are meticulous about order. In fiscal 2020, we held 26 classes nationwide and 482 foremen attended.

- Checks of physical condition
- As workers age, there is an increasing number of employees with chronic and other health issues on our worksites. If an employee were to lose consciousness on the scaffolding or a staircase, it would be a major issue. Before work starts in the morning and afternoon on worksites, workers gather together by work group, and foremen check the health of those working under them.

- Initiatives to establish the ¡°point-and-call¡±routine
- Because there are overwhelmingly more accidents from unsafe practices as opposed to unsafe equipment in recent times, we started seven initiatives five years ago to prevent human errors. To make ¡°pointing & calling¡± more entrenched, which had been an elusive goal, we rolled out another activity in fiscal 2020. This was appointing ¡°pointing & calling masters¡± who are central figures for practicing vocal safety and spreading the habit across the entire worksite. The effort has only just got off the ground, though we will continue it going forward to ensure that ¡°pointing and calling¡± takes place throughout our worksites.
