Sustainability

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Sustainability Policy

SUSTAINABILITY POLICY

Since its founding in 1950, KYODO KY-TEC has contributed to its customers and society by developing a variety of products that help achieve sustainability, based on its philosophy of "providing technology that makes people and society more comfortable."
In today's world, various global issues are becoming more serious, such as climate change, resource depletion, etc. In the construction industry, which is closely related to our company, labor shortages, aging social infrastructure, increasing natural disasters, and human rights issues are particularly major issues.
In order to address these social issues and work together as a company to achieve sustainability, we formulated our Sustainability Policy in June 2024.

This sustainability policy consists of the vision we want to achieve through our sustainability activities and guidelines 1 to 4 for realizing that vision.
We reaffirmed the values ​​that our company has always held dear, and organized the important ways of thinking that will enable us to contribute to society and continue to grow in the coming era.When considering this, we conducted a survey of employees, collected and reflected their opinions, and then formulated it after confirmation and refinement by management and key people.
This policy serves as a guide for the thinking and actions of all executives and employees in promoting our sustainability activities.

Sustainability Key Themes

SUSTAINABILITY MATERIALITY

In order to promote company-wide activities toward realizing our sustainability policy, in June 2024 we identified the key sustainability themes that we should address.
While sustainability themes are diverse, we will focus on key sustainability themes. By addressing these themes, we hope to improve society, even if only little by little. We will act with this determination, aiming for sustainable management.

The seven sustainability material themes we have identified are not only in line with growing demands from society and customers in recent years, but addressing them will also strengthen our existing strengths and characteristics. The process of identifying these themes was thoroughly discussed and approved by the Executive Committee.
Of the seven key themes, we place the greatest emphasis on "① Strengthening the development of original products that contribute to solving social issues," and aim to create social value that is unique to our company through our business. Furthermore, key themes ② to ⑦ are comprised of key themes related to strengthening the management foundation that supports business activities such as ①.

Process for identifying important sustainability themes

In considering our key sustainability themes, we took the following steps to inventory our strengths and past activities, and evaluated and identified them from the perspectives of CSR and the SDGs. We then formulated medium-term goals and KPIs to address the key themes. Going forward, we plan to roll out these key themes and goals throughout the company and across related departments, and continue to work on them.

Step 1

Recognition of social issues
We are committed to complying with international standards and initiatives such as ISO26000*, SDGs (Sustainable Development Goals), the Paris Agreement, and the United Nations Guiding Principles on Human Rights.
We have extracted candidates for key sustainability themes based on social issues specific to the relevant industry.

■	Guidance on Social Responsibility issued by the International Organization for Standardization (ISO)

Step 2

Understanding internal and external opinions and examining important sustainability themes
The extracted sustainability key theme candidates were reviewed by 22 representatives from each department and three external experts in terms of "importance to society" and "our company."
and "importance to sustainable growth." We then created a materiality matrix and identified the key themes to be addressed.
We have given this matter considerable consideration.

Step 3

Deciding on important sustainability themes
Based on the results of the exchange of opinions with external experts and discussions with the heads of major internal departments, the Management Committee held repeated discussions and ultimately identified the key sustainability themes.

KYODO KY-TEC's Initiatives

ACTION

We have responded to the demands of our customers and society by developing and selling unique products that excel in "labor-saving, resource-saving, and recycling-promoting construction" and "building safety, longevity, and disaster prevention," thereby contributing widely to society. Furthermore, in the processes of product development, manufacturing, and sales, we are committed to creating productive and rewarding workplaces that take labor and the environment into consideration. These efforts particularly contribute to SDGs Goals 8, 9, and 11.

Bus duct division products

Major sustainability initiatives

Supports large-capacity power

Bus duct is suitable not only for buildings and factories, but also for large-scale power generation facilities such as mega solar, geothermal, biomass, and wind power generation facilities, making it an essential product for supplying clean energy.

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An earth-friendly, recyclable mains system

Unnecessary Bus ducts are separated into steel plates, conductors (aluminum or copper), and insulators (PETP), and can be recycled as individual resources.

Reduced LCC (life cycle cost)

BIM (Building Information Modeling) has contributed to the efficiency of design and construction, shortening the lead time from design to manufacturing arrangements (32% reduction), and various
This improves productivity. Bus duct can also be prefabricated to suit the construction process, contributing to the distribution of labor input during construction and shortening of construction time, leading to an improvement in the working environment for employees and construction companies.

• BIM image

• Prefabricated construction image

Galvalume steel sheet recommendation

Galvalume steel sheet specifications allow the omission of the painting process, which reduces paint and the electricity used in drying ovens, making it an environmentally friendly specification that contributes to reducing CO2 emissions.

• Galvalume steel sheet specifications

• Galvalume steel sheet specifications Installation example

Floor System Division Products

Major sustainability initiatives

Reducing environmental impact from materials to transportation

We are promoting the selection of materials with a low environmental impact, the reuse of waste materials, the use of domestically produced main components, and a modal shift to rail and ship transport to reduce environmental impact and improve efficiency.

Health Product Declaration (HPD) published

To meet the needs of users to create a good working environment, Network Floor publishes the chemical content on the HPD.
The adoption of HPD publicly disclosed products leads to LEED certification points and enhances the reputation of the building.

Maintenance-free products

High-strength, long-lasting network floors are environmentally friendly as they reduce energy and resource consumption and waste generation during maintenance and renewal, and also contribute to resolving labor shortages.

Low-profile products save resources

Starting from the network floor, we propose compressing floor height to ensure high ceilings while keeping floor height low, thereby preventing the waste of limited resources.

Responsible construction and craftsman education

We are constantly training our construction partners and improving the working environment. By developing a responsible construction system, we are able to provide high-quality construction work nationwide.

Reuse and recycling

Network Floor's reuse and recycling collection is environmentally friendly, reduces costs, and reduces industrial waste. Over 99% of the collected products are reused or recycled by weight.

Environmental Division Products

Major sustainability initiatives

CO2 Reduction

In order to shorten the CO₂ payback time* of our products as much as possible, we are considering and implementing measures such as reviewing raw materials and using biochar.

■	The period of equipment operation required to reduce CO₂ emissions from manufacturing to disposal to ±2 through the CO₂ reduction effect of introducing greening equipment products.

Recycled products

The soil container of the Square Turf Light is made from 100% recycled materials, and the water storage tray is made from 50% recycled materials.
It is a recyclable product.

Disaster prevention/mitigation products

The "Square Turf KOZUIMUYO" rooftop greening system for preventing rainwater runoff is able to temporarily store rainwater, which helps prevent and mitigate disasters and contributes to sustainable urban development. To accommodate the volume of rainwater storage and infiltration facilities, the system adds a capacity of 60 liters/m² (600m²/ha) to the existing "Square Turf Rain96" rooftop greening system.

Consideration for biodiversity

We offer a range of greening systems with high water retention capacity, and also utilize native species. We promote biodiversity-conscious rooftop greening as a habitat for insects, birds, and various plants. We are also working on rooftop greening using "local seeds and seedlings" with the aim of restoring grasslands that will be lost due to construction.

Environmental Initiatives

Initiatives to reduce GHG (greenhouse gas) emissions

Notice of Scope 3 calculation completion

As various global issues, such as climate change and resource depletion, become more serious, we will begin calculating our greenhouse gas (GHG) emissions in October 2023 in order to simultaneously solve social issues and achieve profitable growth. We are pleased to report that we have completed the calculation of Scope 3 in addition to Scope 1 and 2 calculations. (Actual results for the 74th fiscal year (FY2024))

Please refer to the file for calculated figures, etc.
・GHG emissions_74th period (FY2024)_202603JP
・GHG emissions_74th period (FY2024)_202603EN

Going forward, we will continue to calculate GHG emissions (actual results for the 75th fiscal year (FY2025)) in order to identify sources of large emissions that require priority reduction efforts and to set medium- to long-term reduction targets. We will continue to work on calculating and disclosing GHG emissions in order to contribute to the visualization of environmental impact and the realization of a sustainable society.

Human resource development and creating a pleasant workplace

We have established a variety of support systems to accommodate the diversity of each employee (dreams, hopes, characteristics, etc.).

Training system

We offer a wide range of training programs, including comprehensive training for new employees, that allow employees to learn and grow throughout their lives.

Level-based, self-selection, and selection training

We offer a variety of training programs, including hierarchical training for each level, from new employees to managers, as well as self-development training in English conversation, specialized fields, and qualification acquisition, which can be self-reported and attended at the company's expense.

new employee training

After joining the company, employees will receive training for approximately 6 to 18 months on business etiquette, CAD training, OJT, etc. Follow-up training is also provided, allowing employees to review what they have learned.

President's Training

At the President's Seminar, employees who have been with the company for three to five years gather for a two-day, one-night training session. The president himself takes the stage and gives direct training to young employees on how he wants them to grow.

Harassment training

We conduct these activities repeatedly to eradicate harassment in the workplace.

In-house System

We have established a wide range of support systems to ensure that our employees can continue to work with enthusiasm and high motivation.

Employee Satisfaction Survey

We are continually surveying employees to find out what their awareness and values ​​are, with the aim of utilizing this information in management policies.

Survey item examples:Overall evaluation Q: "Overall, I am satisfied with being an employee of this company."
Survey results:The average for the 918 companies most recently surveyed by a research company was 9.8% "strongly agree" and 48.7% "agree", for a total of 58.5% positive results. At our company, however, 14.1% "strongly agree" and 56.5% "agree", for a total of 70.6%, responded that they were "satisfied as a KYODO KY-TEC employee", a high figure.
Survey participants:All employees (2023 respondents in fiscal year 283)

Activities using "san"

In order to foster an open organizational culture, we encourage employees, including executives, to address each other using the honorific "-san."

Childcare and family care leave system

This is an employee support system designed to prevent employees from leaving their jobs due to childcare or nursing care and to create a comfortable working environment.

Childcare leave:In principle, this leave is available to employees who are raising children under the age of one.
Nursing care leave:Employees can take this leave to care for eligible family members who require nursing care. 93 days per eligible family member (can be divided into up to three installments).
Return rate after childcare leave:100%
Rate of male employees taking childcare leave:70%

*From October 2024, 10 to September 1, 2025

Mentor system

This is a system where senior employees of a similar age can talk to and give advice to new employees who have just entered the workforce, to alleviate their anxieties.Once a month, we meet for a meal outside of the company and answer any questions you may have.

Self-reporting system

This system allows each employee to declare their growth goals, future aspirations, desired job type, desired department, and even their opinions about the company, helping them to achieve their desired career advancement.

Challenge Training System

As a system for investing in employee growth, we dispatch personnel to "MOT" and "Globis Management School."

- MOT
To develop future executive candidates,Tokyo University of Science Graduate School (Graduate School of Innovation, Technology Management)We recruit employees through an open recruitment system, and the company covers all tuition fees for two years.

- Globis Management School
For employees who have strict conditions for being dispatched to MOT (long term, weekly commute to Tokyo, university degree or above, etc.),Globis Management SchoolLike MOT, the aim is to develop future executive candidates, and all expenses are borne by the company.

ONE on ONE interview

Every three years, the president meets with all employees one-on-one. This is a unique system that was started by the president's desire to hear the opinions of all employees.

Shuffle Lunch

The president and several employees from each department get together for lunch. This system was started to convey the president's thoughts and ideas to employees, and also to promote socializing between employees from each department. It is held every month, and employees are invited in turn.

Improvement suggestion system

This is a system that allows employees to make suggestions directly to the president to improve the company environment and work procedures. Employees who make suggestions are given a bonus, regardless of whether the suggestion is adopted or not. This system has given each employee an opportunity to think about the future of the company. So far, this system has led to the creation of a greening project, as well as the introduction of summer workwear, improvements to the sales management system, and many other systems related to work comfort.

Thanks of the Month/Year system

This system was started with the aim of giving a concrete expression of "thank you" in small, everyday ways. Employees can give thank-you gifts (a message, snacks, or drinks) to employees who have helped them outside of work. Monthly and annual awards are given based on the number of gifts received. A total of 2024 people took advantage of this system between October 10, 1 and September 2025, 9.