CTI Engineering Group’s Sustainability Initiatives

CTI Engineering Group’s Materiality

The CTI Engineering Group’s social environment presents a diverse array of issues, such as demands for greater diversity in personnel and stronger corporate governance, in addition to global problems such as climate change and energy.

In this social environment, under its Mid- to Long-Term Vision SPRONG 2030, the CTI Engineering Group aims to make great strides forward as a Global Infrastructure Solutions Group that can resolve all sorts of issues related to infrastructure in Japan and overseas, and contribute to the sustainable development of society. To ensure that we take steady steps toward making this happen, we have identified the important issues we should address as our materiality issues.

Seven Materiality Issues

Seven Materiality Issues

Materiality Determination Process

  1. Extract Social Issues

    We created a list of social issues with reference to the SDGs and ISO 26000, particularly issues that are related to contributing to a sustainable society and those related to the Company’s management foundation.

  2. Identify Social Issues Related to the CTI Engineering Group’s Businesses

    Based on the CTI Engineering Group’s Business Philosophy and Code of Corporate Conduct, we identified the issues related to the CTI Engineering Group’s businesses from among the social issues. The issues related to the CTI Engineering Group’s businesses were then organized by classifying them into issues related to contributing to a sustainable society and issues related to strengthening the management foundation.

  3. Determine Materiality Issues

    We assessed the importance of each issue from the perspectives of the importance to stakeholders and the importance to the CTI Engineering Group’s businesses and identified seven materiality issues through discussion by the Sustainability Committee, the Management Meeting and the Board of Directors. The Sustainability Committee monitors the identified materiality issues and revises them as necessary through PDCA cycles.
    With regard to important risks related to sustainability issues identified by the Risk Management Committee, the Risk Management Committee and Sustainability Committee share information and collaborate with each other and hold discussions on specific targets.
マテリアリティ特定プロセス

Reasons for selecting materiality and main initiatives

1.

Contribute to infrastructure development that supports safety and security

Reason for Selection

The increasing severity of natural disasters due to climate change and the aging of infrastructure developed during Japan’s period of high economic growth, among other challenges, have become social issues. Meanwhile, funding for infrastructure development and the lack of infrastructure developers are also challenges, requiring more efficient and effective infrastructure development.
Leveraging its accumulated expertise and experience, the CTI Engineering Group will address issues related to infrastructure development, which supports a safe and secure society.

Risks

  • Increased disaster risk from climate change and earthquakes, etc.
  • Infrastructure deterioration
  • Unchanged public works budget in the domestic market
  • Lack of infrastructure developers
  • Unchanged ODA budget in international markets

Opportunities

  • Increase in response operations due to intensification of disasters
  • Updating aging infrastructure, increased maintenance demand
  • Introduction of diverse bidding systems through amendments to the Quality Assurance Act
  • Increased competitiveness through raising engineer unit prices
  • Initiatives to expand high-quality infrastructure exports

Main Initiatives

  • Strengthen measures to address national resilience
  • Expand business to public-private partnerships and the private-sector market

Relationship to SDGs Targets

2.

Contribute to the sustained development of countries, communities and society

Reason for Selection

The stagnation of regional economies and maintenance of social infrastructure services have become social issues due to factors such as the declining birthrate and aging of society. In addition, there are certain regions of the world that are suffering from a lack of infrastructure development, which is necessary for economic development. By harnessing the initiative of revitalizing regions through next-generation mobility and its track record of developing infrastructure in Japan, the CTI Engineering Group will contribute to the sustained development of society in Japan and other parts of the world.

Risks

  • Sustaining local livelihoods in the face of population decline
  • Stagnation in local communities
  • Maintenance of social infrastructure services
  • Worsening of market environment due to international economic stagnation
  • Emergence of energy and security issues
  • Material price hikes due to worsening international conditions
  • Lack of financial resources for public works projects in many countries due to tight national finances

Opportunities

  • Growing need for solutions to population decline, stagnation of local communities, and maintenance of social infrastructure services
  • Change in logistics systems prompted by the 2024 problem

Main Initiatives

  • Expand business to municipalities
  • Promote global business expansion

Relationship to SDGs Targets

3.

Contribute to a decarbonized and recycling-oriented society and ecosystem preservation

Reason for Selection

Realizing a recycling-oriented society with a reduced environmental impact through such means as shifting to sustainable energy has become a global priority. The preservation of ecosystems and protection of biodiversity in bodies of water and on land areas have also become urgent priorities. By leveraging the CTI Engineering Group’s experience in consulting services related to environmental analysis and environmental preservation measures, the CTI Engineering Group will contribute to the creation of a recycling-oriented society and the preservation of ecosystems.

Risks

  • Increase in extreme weather and natural disasters due to climate change
  • Reputational risk related to environmental protection
  • International instability risk in energy procurement
    (geopolitical risk, market risk)

Opportunities

  • Increased demand for net zero and renewable energy due to adoption of the SDGs and Paris Agreement
  • Recycling-oriented society with lower environmental impact
  • Protection of ecosystems and diversitySDGs

Main Initiatives

  • Expand business to the energy and environmental management sectors
  • Promote the CTI Engineering Group Challenges forSustainability

Relationship to SDGs Targets

4.

Create value through digital transformation(DX)

Reason for Selection

The CTI Engineering Group aims to contribute to society through technology. Therefore, it is essential for the CTI Engineering Group to stay on top of rapidly evolving technology. The digitalization and innovation of companies are sources of competitiveness, and the use of innovative technologies also helps to solve social issues. The CTI Engineering Group will apply the outcomes of its digital transformation (DX) initiatives to solve social issues, along with putting these outcomes to good use in streamlining business production processes and increasing corporate value.

Risks

  • Intensifying competition, such as entry of other industries
  • Cybersecurity
  • Delayed response to change and new technologies, homogeneity with other companies
  • Reduced engineering capabilities from excessive automation

Opportunities

  • More efficient operations and higher productivity
  • Emergence of innovative technologies such as generative AI
  • Creation of new technology menus via DX
  • Source of innovation
  • Improved reputation

Main Initiatives

  • Expand business to the information services sector
  • Strengthen investment in technological innovation

Relationship to SDGs Targets

5.

Enhance human resources and achieve well-being

Reason for Selection

The CTI Engineering Group’s greatest management resource is its people. Therefore, it is extremely important for us to hire, train, and revitalize our people. We believe that when employees are happy, it drives their creativity and productivity, which in turn attracts more talented people. For this reason, the CTI Engineering Group regards well-being as its most important challenge, and top management will promote it as a significant issue.

Risks

  • Intensifying competition to acquire human resources
  • Insufficient project development capabilities
  • Increased working hours due to lower productivity

Opportunities

  • High level of engineering expertise
  • Accumulation of broad-ranging knowledge and experience by exceptional engineers
  • Customer base cultivated through long-term trust
  • Diversification of work styles

Main Initiatives

  • Promote well-being management
  • Strengthen recruitment and development of human resources

Relationship to SDGs Targets

6.

Strengthen corporate governance

Reason for Selection

The CTI Engineering Group believes that transparent governance is essential to promoting sustainable reforms under fair business practices. Through proper and proactive information disclosure, we will build relationships of trust with stakeholders. Concurrently, we will ensure fair decision-making and management and implement proactive and defensive governance, with the aim of sustainably increasing corporate value.

Risks

  • Stagnation in business activities
  • Loss of public trust due to fraud cases, etc.
  • Existing corporate value

Opportunities

  • Establishment of stable management base through decision-making transparency and improvement and by responding appropriately to change
  • Acquire stakeholder trust

Main Initiatives

  • Strengthen risk management
  • Implement management that considers capital efficiency
  • Conduct proper and proactive information disclosure

Relationship to SDGs Targets

7.

Assure and improve the quality of deliverables and service

Reason for Selection

The CTI Engineering Group’s deliverables and services are directly related to people’s safety and security. Therefore, assuring the quality of deliverables and services, as well as retaining the trust of customers and other stakeholders, can be described as a lifeline for the CTI Engineering Group’s corporate activities. The CTI Engineering Group will endeavor to provide high-quality final products and services as it strives to enhance customer satisfaction, its public reputation, and its technical competitiveness.

Risks

  • Occurrence of mistakes and errors
  • Loss of stakeholder trust due to errors, etc.

Opportunities

  • Improved competitiveness from higher quality
  • Acquire trust from stakeholders

Main Initiatives

  • Raise the sophistication of quality management
  • Promote reform of production systems

Relationship to SDGs Targets