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Implementation Framework

With regard to chemical substances used by relevant departments and subject to pollution prevention measures, the Environmental Subcommittee confirms their usefulness and risks and when necessary, instructs improvements, thereby ensuring proper monitoring and supervision of their use.

Preventing pollution from chemical substances

Throughout the lifecycle of our homes, we strive to minimize risks of chemical substance use through proper EVABAT (Economically Viable Application of Best Available Technology) procedures to prevent and stop pollution in excess of legal regulations. We formulated our Chemical Substance Guidelines in 2007 as a standard for managing chemical substances and have enforced this management system of chemical substances ever since. However, in August 2024, we transitioned to a more robust framework by aligning each phase of the product lifecycle with departmental procedures and integrating these with internal rules (such as product design reviews) and the content of the aforementioned Chemical Substance Guidelines. Following this integration, the Chemical Substance Guidelines were discontinued in the same month.

Policy for proper disposal of hazardous waste

The hazardous waste this report refers to is waste generated during operations, which, according to the Wastes Disposal and Public Cleansing Act, the Group regulates as specially controlled industrial waste (including specific types of hazardous waste regulated in the Basel Convention, etc.). All types of hazardous waste are properly handled throughout storage, transport, and disposal based on legal, governmental, and industry guidelines.
　　Hazardous waste mainly originates from building materials used in construction and demolition (including restorations) and leftover chemical substances produced as byproducts in material manufacturing. For building materials used in the above-mentioned operations, this may include asbestos in heat-retaining, thermal insulation, and fire-resistant coating materials, slag, sludge above base amounts, and other hazardous waste connected to construction work that may be generated depending on site conditions.
　　As a rule, hazardous waste is disposed of in controlled landfills which have measures to prevent leakage into the natural environment. Leftover chemical substances produced as factory byproducts of material manufacturing are, with regard to their various characteristics and properties, recycled in their entirety through processes such as neutralization, reduction treatment, and thermal recovery conducted through incineration.
　　Because hazardous waste generated by factories presents a large potential environmental impact, procedures have been established by these factories to prevent and mitigate pollution in emergencies such as accidents, earthquakes, and other disasters. Through repeatedly conducting appropriate tests, they are working to ensure there are zero emissions to the natural environment even during emergencies.

Addressing risks of contamination by hazardous chemicals

In addressing risks of contamination by hazardous chemicals, it is essential to always strive to balance corporate activities with preventive measures by such means as setting management levels according to the risks of using the chemical substances in products. We set a variety of standards and procedures for handling our products at each lifecycle phase.

Addressing risks related to soil and groundwater pollution

We work to minimize risks, including the prevention of secondary pollution, by conducting surveys and implementing countermeasures not only for the land of Company facilities, but also for land we have engaged in transactions. Prior to engaging in land purchase or sales contracts, we identify risks related to soil and groundwater contamination by means of a pre-screening system using our own soil contamination checklist (including a survey of historical land use; surveys of topography, geology, and groundwater; a data survey on surrounding environmental measurements by local governments; a site inspection survey; and legal compliance check).
　　In the case of land that may contain contaminated soil, such as former factory sites, sellers are increasingly conducting their own voluntary surveys. When purchasing land, a specialized department of the Company scrutinizes all such survey reports. If a problem is identified regarding the completeness of the information, we ask the seller to conduct additional surveys.
　　Properties that are determined to be at risk of contamination are analyzed by designated research institutions to evaluate the appropriateness of the transaction. Where soil contamination has been discovered as a result of the investigation, land with minor concentrations and distributions of contamination (land contaminated mainly with heavy metals where complete remediation can be guaranteed) undergoes remediation by soil replacement before the sale. In such cases, we explain the measures that have been taken as a material matter. Land with more serious contamination is not purchased.
　At domestic factories on our own sites where contamination could be a risk if no action is taken, we have set up measures and procedures for investigation, prevention, ongoing management, and emergency response (prevention and mitigation of contamination), and are implementing contamination risk management.

Initiatives for proper processing of hazardous waste

Approximately 95% of the hazardous waste that we handle is asbestos (Levels 1 and 2) from existing structures, which is strictly treated as specially controlled industrial waste. The remainder is mainly residual substances left over from the use of chemical raw materials handled in domestic production facilities.
　　For specially controlled industrial waste generated at domestic factories, we comply with the Wastes Disposal and Public Cleansing Act, as well as all related laws and regulations (such as the Ordinance on Prevention of Hazards due to Specified Chemical Substances) and industry guidelines. Procedures are also in place to identify potential accidents and emergencies that could lead to significant environmental impact, to prevent any adverse environmental impact, and to conduct mitigation to minimize the escalation of impact. At the same time, the effectiveness of emergency preparedness and response procedures is maintained through annual testing and internal audits.

Pollution, waste, and resource use costs (including shadow costs) and investment in R&D on reducing or avoiding their impacts

The Resource Recycling Centers at our factories handle waste from construction sites, sorting plastic products for recycling, and collecting metals and other valuables. In FY2025, the costs arising from waste-related issues—including external economic costs—associated with operations ranging from collection point management to the operation of resource circulation centers totaled ¥1,702 million.
　　In addition, Group company Konoike Construction invested ¥105 million for experimental research aimed at developing technologies for processing organic fluorine and automation technologies for the demolishing of facilities and equipment.

Evidence of urban brownfield redevelopment

Risk assessments of all properties based on a soil contamination checklist in accordance with Company standards are conducted when purchasing real estate. Should soil contamination risks be discovered, we consult with a specialized department, survey the soil and implement contamination countermeasures before selling the property to the customer. MiraMachi, a 27-hectare former factory site in Toyohashi City, Aichi Prefecture, is being developed as a mixed-use project that aims to solve local issues and realize a compact city. In addition, for the redevelopment of former factory sites and similar sites, Group company Konoike Construction draws on its wealth of experience and technologies to plan and propose optimal countermeasures to implement them based on surveying results, for dealing with soil contamination, including that caused by leaks of hazardous substances, heavy metals, and volatile organic compounds. For example, on a former factory site where soil contamination from mercury was identified, we installed a temporary on-site soil washing facility and conducted operations to clean the contaminated soil. Soil washing generally involves the use of water. However, as removing mercury that is firmly adsorbed onto minute soil particles is difficult with water washing alone, a dedicated solvent is used to separate and remove the mercury from soil particles. In a single day, 150 ㎥ of contaminated soil can be treated, resulting in an average of 3,000 ㎥ being treated a month.