Data of Environmental Management Activities

1. Business Activities, Material Balance, and Environmental Accounting

We aim to continuously reduce our environmental impact and promote environmental management by measuring resources and energy input in our business activities and understanding our environmental impact.

INPUT - Main Resources and Energy Inputs

Energy Consumption
Energy Consumption		unit	FY2020	FY2021	FY2022
Office	electricity	MWh	2,903	3,018	2,632
Construction sites	electricity	MWh	26,779	19,301	18,810
	kerosene	kL	197	65	350
	diesel	kL	20,328	19,380	20,244
	fuel oil	kL	183	0	0

Construction Materials Input
Construction Materials Input	unit	FY2020	FY2021	FY2022
Ready-mixed concrete	thousand tonnes	1,026.0	843.0	1,127.0
Rebar	thousand tonnes	98.0	50.0	70.0
Steel frame	thousand tonnes	7.0	5.0	26.5
Cement	thousand tonnes	38.0	18.0	27.2

Main Recycled Materials Input
Main Recycled Materials Input	unit	FY2020	FY2021	FY2022
Blast furnace ready-mixed concrete	thousand tonnes	225.0	96.0	200.4
Electric arc furnace rebar	thousand tonnes	98.0	50.0	70.0
Electric arc furnace steel	thousand tonnes	7.0	5.0	17.0
Blast furnace cement	thousand tonnes	9.0	13.0	2.4
Recycled crushed stone	thousand tonnes	90.0	41.0	72.8
Asphalt mixture	thousand tonnes	22.0	25.0	9.3
Soil generated from construction	Soil generated from construction	2,963.0	141.0	550.9

Activities of Each Sector

OUTPUT - Main Emissions

CO₂ Emissions
Scope 1 and Scope 2	unit	FY2020	FY2021	FY2022
CO₂ Emissions	thousand t-CO₂	62.9	53.6	62.7
Office activities	thousand t-CO₂	1.0	1.5	1.2
Construction stage	thousand t-CO₂	61.9	52.1	61.5
Emission Intensity	t-CO₂/100 million yen	22.2	20.7	21.9

Disposal of soil generated from construction
Disposal of soil generated from construction	unit	FY2020	FY2021	FY2022
Disposal of soil generated from construction	thousand m³	300.4	911.0	1085.0
Use of recycled resources	thousand m³	289.8	347.0	765.8
On-site	thousand m³	252.7	122.0	518.3
Off-site delivery	thousand m³	37.1	225.0	247.5
Other Processes	thousand m³	10.6	564.0	319.2

Disposal of construction waste
Disposal of construction waste	unit	FY2020	FY2021	FY2022
Disposal of construction waste	thousand tonnes	408.0	431.0	551.3
Intermediate treatment	thousand tonnes	397.0	395.0	520.6
Final disposal	thousand tonnes	11.0	36.0	30.7
Disposal Intensity	t-CO₂/100 million yen	126.6	141.6	163.3

Environmental Accounting

We calculate environmental conservation cost in order to clarify the costs and benefits for environmental conservation in our business activities.

Environmental Conservation Cost	unit	FY2020	FY2021	FY2022
Environmental Conservation Cost	million yen	4,599	4,825	5,389
A) Cost within our business area	million yen	3,622	3,605	4,392
(Pollution prevention cost)	million yen	1,546	1,168	1,513
(Global environmental conservation cost)	million yen	35	86	30
(Resource circulation cost)	million yen	2,041	2,351	2,849
B) Upstream, downstream cost	million yen	305	344	380
C) Administrative activity cost	million yen	429	506	409
D) R&D cost	million yen	204	337	175
E) Social activity cost	million yen	11	7	3
F) Environmental remediation cost	million yen	28	26	30

Calculation method of environmental accounting；
- The period covered : 1 April 2022 to 31 March 2023
- Boundary: Domestic head office, branch offices, three PC factories, and construction sites. (As for the construction sites, 24 sites for building construction work were selected, which accounted for 26% of net sales of completed construction contracts. For civil engineering work, 49 construction sites were selected which accounted for 39% of net sales of completed construction contracts.)
- Internal personnel expenses: Calculated by multiplying the number of hours required by a uniform unit price calculated from the average annual salary.

2. Contribution for Decarbonized Society

In November 2021, we set forth the "Roadmap to Carbon Neutrality by 2050" and are working to achieve a 50% reduction (from 2020) of CO₂ emissions for Scope 1 + Scope 2 and a 25% reduction (from 2020) of CO₂ emissions for Scope 3 by 2030.

*The boundary of calculation on a non-consolidated basis includes domestic construction sites, offices and factories, and overseas construction sites and offices of Sumitomo Mitsui Construction Co., Ltd. Overseas CO₂ emissions in fiscal 2020 are calculated based on the ratio of domestic and overseas sales, and the figures in fiscal 2021 are calculated based on available energy usage fee payment records. The figures in fiscal 2022 are based on a 2-month survey of the types of heavy construction equipment, the number of units in operation, and the operating hours, and estimated using the percentage of net sales of completed construction contracts. The boundary of calculation on a consolidated basis includes the construction sites, offices, and factories of domestic affiliates, and the construction sites and offices of overseas subsidiaries.
* Emission factors used in the calculation of CO₂ emissions (Scope 1 and Scope 2) are those provided by Keidanren (Japan Business Federation) for kerosene, diesel oil, and heavy oil A, and the default values under the Act on Promotion of Global Warming Countermeasures for the others.
Emission factors for domestic electricity in fiscal 2020 and 2021 are provided by Keidanren (Japan Business Federation), and those in fiscal 2022 are based on each contract.
Emission factors for overseas electricity are the country-specific emission factors described in "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)", and the default values under the Act on Promotion of Global Warming Countermeasures for the others.
* The amount of diesel oil used in heavy construction equipment at construction sites is calculated based on the total number of heavy construction equipment in operation for each type of equipment, in accordance with the "Environmental Information Disclosure Guidelines" of the Japan Federation of Construction Contractors (Nikkenren), using JFCC's survey sheet.

CO₂ Emissions by Scope (Construction Sites and Offices)
CO₂ Emissions by Scope (Construction Sites and Offices)	unit	FY2020 (base year)	FY2021	FY2022
Total Emissions	t-CO₂	70,766	105,705	112,113
Scope 1 (domestic)	t-CO₂	50,328	45,606	54,844
Scope 1 (overseas)	t-CO₂	6,251	50,661	45,732
Scope 2 (domestic)	t-CO₂	12,491	8,041	7,855
Scope 2 (overseas)	t-CO₂	1,696	1,397	3,682
Intensity	t-CO₂	22.0	34.8	33.2
% of base year	%	0.0	49.4	58.4

Reduction of CO₂ Emissions due to emission reduction activities at construction sites
CO₂ Emissions by Scope (Construction Sites and Offices)	unit	FY2020 (base year)	FY2021	FY2022
Scope 1	t-CO₂	2,261	2,197	2,105

*Reduction through activities to reduce the use of diesel fuel, such as stopping the idling of heavy construction equipment, ensuring proper maintenance, and actively using fuel-efficient equipment and vehicles, according to a survey form provided by JFCC.

CO₂ Emissions including emission reduction activities at construction sites
CO₂ Emissions by Scope (Construction Sites and Offices)	unit	FY2020 (base year)	FY2021	FY2022
Total Emissions	t-CO₂	68,505	103,508	110,008
Scope 1 (domestic)	t-CO₂	48,067	43,409	52,739
Scope 1 (overseas)	t-CO₂	6,251	50,661	45,732
Scope 2 (domestic)	t-CO₂	12,491	8,041	7,855
Scope 2 (overseas)	t-CO₂	1,696	1,397	3,682
Intensity	t-CO₂/100 million yen	21.3	34.0	32.6
% of base year	%	0.0%	51.1%	60.6%

Consolidated CO₂ Emissions excluding emission reduction activities at construction sites
Consolidated CO₂ Emissions	unit	FY2020 (base year)	FY2021	FY2022
SMC Group	t-CO₂	120,719	157,823	169,077
Scope 1	t-CO₂	99,667	140,666	147,973★
Scope 2	t-CO₂	21,052	17,157	21,104★
SMC (Non-consolidated)	t-CO₂	70,766	105,705	112,113
Scope 1 (domestic)	t-CO₂	50,328	45,606	54,844
Scope 1 (overseas)	t-CO₂	6,251	50,661	45,732
Scope 2 (domestic)	t-CO₂	12,491	8,041	7,855
Scope 2 (overseas)	t-CO₂	1,696	1,397	3,682
Affiliated companies	t-CO₂	49,953	52,118	56,964
Scope 1 (domestic)	t-CO₂	43,088	40,562	42,311
Scope 1 (overseas)	t-CO₂	－	3,837	5,086
Scope 2 (domestic)	t-CO₂	6,865	7,182	8,413
Scope 2 (overseas)	t-CO₂	－	537	1,154

※
Consolidated CO₂ emissions for FY2022 have been externally assured.
The values assured by an assurer are indicated with an asterisk (★).

Consolidated Green Electricity Consumption
	unit	FY2020	FY2021	FY2022
Green Electricity　Consumption	Kwh	37,498	564,147	5,385,022

Scope 3 CO₂ Emissions
Scope 3 Emissions	unit	FY2020 (base year)	FY2021	FY2022
Total Emissions	t-CO₂	1,630,641	1,390,221	1,477,583
Category 1　Purchased goods and services	t-CO₂	242,618	166,448	283,290
Category 2　Capital goods	t-CO₂	333	44,296	5,545
Category 3　Fuel- and energy-related activities	t-CO₂	9,014	8,364	15,542
Category 4　Upstream transportation and distribution	t-CO₂	1,417	2,420	9,594
Category 5　Waste generated in operations	t-CO₂	36,722	27,740	44,282
Category 6　Business travel	t-CO₂	1,225	1,179	2,239
Category 7　Employee commuting	t-CO₂	247	235	267
Category 8　Upstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable
Category 9　Downstream transportation and distribution	t-CO₂	Not applicable	Not applicable	Not applicable
Category 10　Processing of sold products	t-CO₂	Not applicable	Not applicable	Not applicable
Category 11　Use of sold products	t-CO₂	1,147,446	1,019,795	954,105★
Category 12　End-of-life treatment of sold products	t-CO₂	169,957	119,774	162,719
Category 13　Downstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable
Category 14　Franchises	t-CO₂	Not applicable	Not applicable	Not applicable
Category 15　Investments	t-CO₂	21,662	0	0

※
Non-consolidated Scope 3 Category 11 CO₂ emissions for FY2022 have been externally assured.
The value assured by an assurer is indicated with an asterisk (★).

Calculation Method of Scope 3 Emissions by Category
category	Caculation method
1	Calculated by multiplying the quantity of each material procured in the reporting year by the CO₂ emission intensity of each material. CO₂ emission intensity is calculated by the Ministry of the Environment "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."
2	Calculated by multiplying the change in property, plant and equipment (Buildings, structures, machinery and equipment, vehicle carriers, tools, appliances and fixtures) from the previous year by the CO₂ emission intensity of capital goods. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."
3	Calculated by multiplying fuel consumption (excluding electricity from renewable energy sources) in the reporting year by the CO₂ emissions intensity of fuel procurement; CO₂ emissions intensity is based on the "Emissions Intensity Database for Calculating Greenhouse Gas Emissions of organizations through supply chains (Ver. 3.3)" (March 2023) and "IDEA (ver. 2.3)".
4	Calculated using the ton-kilometer method based on the weight and average transportation distance of materials procured in the reporting year. emissions intensity is based on "IDEA (ver. 2.3)" and CO₂ emissions intensity is based on "Emissions intensity database for calculating greenhouse gas emissions of organizations through the supply chain (ver. 3.3) (March 2023)".
5	Calculated by multiplying the weight of construction waste disposal in the reporting year by the CO₂ emission intensity (including transportation) for each type of waste. CO₂ emission intensity is based on the "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."
6	Calculated by multiplying the amount by means of transportation used for business trips (Railways, aircraft, buses and taxis) by the CO₂ emission intensity by means of transportation. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."
7	Calculated by multiplying the amount of commuting expenses by means of transportation (Railways, buses and private cars) by the CO₂ emission intensity by means of transportation. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."
11	For domestic buildings completed in the reporting year, annual CO₂ emissions are calculated based on BEI values, standard primary energy consumption, and primary energy composition ratio in the energy conservation statement, and then multiplied by the duration of use of the building. For overseas buildings completed in the reporting year, annual CO₂ emissions are calculated by multiplying the total floor area by the emission intensity per unit area for each building use, and then multiplied by the duration of use of the building. CO₂ emission intensity of the investment is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023).
12	CO₂ emissions generated when disposing of materials from projects completed in the reporting year (subject to Category 11 calculation) were calculated based on Category 1 emissions and sales of the project. The amount of CO₂ emissions generated during the relative disposal of the same project was estimated based on the actual number of construction demolition projects carried out by the Company. The sum of the above values was used as Category 12.
15	Calculated by multiplying the amount of investment made in the reporting year and the CO₂ emission intensity of the investment. CO₂ emission intensity of the investment is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.3) (March 2023)."

3. Contribution to Recycling-Oriented Society

To achieve zero emissions at our construction sites, we have set a KPI of 100% recycling (*1) of construction waste by FY2030. To achieve this target, we are implementing thorough waste separation and outsourcing proper disposal.

We also aim to create a recycling-oriented society that enables sustainable development by prioritizing the procurement of materials, equipment and office supplies with less environmental impact (green procurement) and adopting construction methods and technologies with less environmental impact.

Construction Waste Recycled (%)
onstruction Waste Recycled (%)	FY2020			FY2021			FY2022			FY2023	FY2030
onstruction Waste Recycled (%)	Target	Performance	Achievement	Target	Performance	Achievement	Target	Performance	Achievement	Target	Long-Term Goal
Civil Engineering Construction	99.0	99.7	◯	99.1	99.1	◯	99.2	99.3	◯	99.3	100.0%
Building Construction	98.4	98.9	◯	98.6	98.6	◯	98.9	97.8	✕	99.0	100.0%

*1The recycling rate excludes hazardous wastes and other wastes that cannot be treated with intermediate processing.

Disposal of construction waste and landfill
(Including hazardous wastes and other wastes that cannot be processed with intermediate treatments)
	unit	FY2020	FY2021	FY2022
Disposal	thousand tonnes	408	431	551.3
Landfill	thousand tonnes	37	36	30.7
(%) of final disposal	%	92.7	91.2	94.4

Disposal of construction waste by item
	unit	FY2020	FY2021	FY2022
Total	thousand tonnes	408.0	431.0	551.3
Concrete mass	thousand tonnes	138.0	182.0	240.4
Asphalt and concrete mass	thousand tonnes	34.0	40.0	45.9
Waste timber	thousand tonnes	13.0	12.0	14.6
Construction Sludge	thousand tonnes	161.0	100.0	170.5
Plastic waste	thousand tonnes	2.0	2.0	1.6
Mixed waste	thousand tonnes	10.0	23.0	17.6
Others	thousand tonnes	50.0	72.0	60.7

Green Procurement Items (FY2022)
	Priority items and remarks
Civil engineering construction division Construction sector/Design sector	Number of priority items: 40 items
Building construction division Construction sector	Number of priority items: 43 items
Design sector	Number of priority items: 28 items
Office operation sector (office supplies)	Office supplies compliant with the Act on Promoting Green Procurement and Eco Mark products
Office operation sector (OA equipment)	Copiers, computers, printers, facsimiles, displays

Use of Green Procurement Products (Main materials)
	unit	FY2020	FY2021	FY2022
Blast furnace ready-mixed concrete	thousand tonnes	225.0	96.0	200.4
Electric arc furnace rebar	thousand tonnes	93.0	50.0	70.0
Electric arc furnace steel	thousand tonnes	68.0	5.0	17.0
Blast furnace cement	thousand tonnes	9.0	13.0	2.4
Recycled crushed stone	thousand tonnes	90.0	41.0	72.8
Asphalt mixture	thousand tonnes	22.0	25.0	9.3

Water consumption
	unit	FY2020	FY2021	FY2022
Total	thousand m³	334.0	292.0	372.9
Construction sites	thousand m³	322.0	281.0	359.2
Offices	thousand m³	12.0	11.0	13.7

*Water consumption was calculated from water usage charges.

Hazardous Substance Management
	unit	FY2020	FY2021	FY2022
Asbestos-containing waste	t	679.0	46.0	59.1
Waste asbestos	t	121.0	267.0	214.3
Mercury usage (fluorescent light)	t	14.0	3.0	37.1
Waste oil	t	60.0	8.0	18.4
Hazardous sludge (Pb): lead	t	325.0	126.0	141.6
Disposal of other hazardous substances	t	102.0	192.0	17.2

4. Contribution to a Society in Harmony with Nature

We are implementing activities to protect rare plants and animals and to preserve biodiversity at our construction sites.

For the protection of rare plants and animals, in FY2022, we conducted activities at four sites in the civil engineering construction sites and three in the building construction sites, which are, the activities to protect rare plants such as Japanese knotweed, and water hyacinth, as well as rare animals such as green sea turtle, glass eel, and northern killifish (fish), the water scorpion, the Japanese firefly, and the Kinobori-totate spider (insects).

5. Certification Test for Environmental Specialists (Eco Test)

We are promoting the certification of Eco Test to raise the environmental awareness and knowledge of our employees. 1,838 employees had been certificated as of April 2023, which is 62% of the total number of employees.