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External Board Members'message ESG Section External Board Members’ Message Message from four of Taisei Corporation’s External Members of the Board External Member Profile of the Board 1979 Joined the Ministry of Foreign Affairs of Japan 1999 Minister/Counsellor of Permanent Mission of Japan to the Atsuko United Nations 2001 Minister of Embassy of Japan in Belgium Nishimura 2004 Professor of Tohoku University Graduate School of Law 2008 Administrative Vice President of the Japan Foundation 2012 Adviser of Japan Oil, Gas and Metals National Corporation 2014 Ambassador Extraordinary and Plenipotentiary to Grand Duchy of Luxembourg 2016 Ambassador Extraordinary and Plenipotentiary for Women, Human Rights and Humanitarian Affairs 2017 External Member of the Board of Taisei Corporation (incumbent) Concurrent positions Outside Director of INPEX Corporation Reason for appointment A broad range of insights, international sense, and objective point of view based on many years’ experience as a diplomat One of the important responsibilities of External Members of the Board is to appropriately supervise corporate management from an independent perspective apart from internal officers who are directly involved in day-to-day business operations. Recent expansion of ESG investment and the UN-led SDGs indicate the rise of global interest in social issues. Moreover, companies that fail to fulfill their social responsibilities are criticized severely by investors and shareholders, which would have a major impact on their survival and development. I would like to contribute to the growth of Taisei Corporation as a company that is highly valued by society, making use of my experience in tackling common social issues from a global perspective, as seen in the SDGs. At our Company’s Board Meetings, directors present their opinions from various viewpoints, and carry out sincere and intense discussions. Last year, Mr. Murakami, Mr. Otsuka, and Mr. Kokubu, who have experience at companies in non- construction industries, were assigned as External Members of the Board. I believe that this has made our discussions livelier than before. We have also set up briefing sessions by the divisions in charge as good opportunities to get firsthand knowledge of the changing business environment. Based on the collaboration among External Members of the Board and the information we receive, External Members of the Board can provide expert advice. We are also working on the improve- ment of the effectiveness of the Board by reviewing agenda items for deliberation. I hope that these efforts will lead to fruitful discussions on forward-looking management strategies at the Board as well as appropriate and timely decisions, and will further ensure our Company’s sustainable development. Last year, the construction of the new Japan National Stadium was completed, and we have now many opportunities to see it on the media including TV. Every time I see its beautiful and majestic structure, which is in harmony with nature, I am proud that we have achieved this historic project by combining our outstanding technological, organizational, and comprehensive capabilities. It is wonderful that next year our message for the future will be transmitted to people all over the world through the impressive construction. I think that the stadium symbolizes our Group’s efforts to realize the Taisei Group Philosophy of “To Create a Vibrant Environment for All Members of Society.” I hope that our Company will be a leader in overcoming the various difficulties that mankind and society will face with its leading-edge technological capabilities while considering the environment and being close to all stakeholders. I hope that Taisei Corporation will continue to shine as a company that supports the future of people and society through the development of infrastructure. 51 TAISEI ANNUAL REPORT 2020 About the Taisei Group Strategy for Sustainable Growth ESG Section Business Section Explanation and Analysis of Data Section Governance Business Results External Member Profile of the Board 1969 Joined Sapporo Breweries Limited (Present: Sapporo Holdings Limited) Takao 1999 Executive Officer 2001 Managing Executive Officer Murakami 2003 Member of the Board; Senior Managing Executive Officer of Sapporo Breweries Limited (new company) 2004 Managing Executive Officer, Member of the Board of Sapporo Holdings Limited 2005 President and Chief Executive Officer, Representative Director, Group CEO 2011 Chairman of the Board, Representative Director 2018 Honorary Counsellor of Sapporo Holdings Limited (incumbent) 2019 External Member of the Board of Taisei Corporation (incumbent) Concurrent positions External Member of the Board of Television Hokkaido Broadcasting Co., Ltd. External Auditor of FUJIO FOOD SYSTEM Co., Ltd. Reason for appointment Rich experience in managing multiple companies I think a company is nothing more than its people. Taisei Corporation’s company culture consists of a group of people who make decisions and those who conduct business. I believe that it is our mission as External Members of the Board to improve and maintain a good culture. On the other hand, if our Company's common sense is not in line with society, then we should correct that. I have observed some cases in which the Board had not deepened its discussions, perhaps because the proposals of the Board are submitted after various discussions and deliberations within the Company. However, Members of the Board are exchanging various opinions and having open discussions regarding the current status of the Board and the establishment of the Management Committee. So, my evaluation is that governance reform is making progress in the right direction. I am afraid that discussions on the priority of sales and profits in the current Medium-term Business Plan were not sufficient. In addition, we have not made sufficient progress in the investment for growth and the expansion of overseas business. We should strictly analyze the current situation, including the appropriateness of the initial targets, conduct risk analysis from a global perspective, and allocate management resources efficiently and promptly to the regions and divisions where they are needed. It is important to examine our strengths and weaknesses deeply and thoroughly discuss specific measures to further develop our strengths and overcome our weaknesses in order to improve our corporate value. One of our important challenges is to eliminate serious accidents. Of course, we are taking various measures to achieve zero accidents, however, I am sorry to say that we are still observing accidents. It is necessary to thoroughly discuss construction methods to prevent accidents, such as the promotion of unmanned construction. Another important issue is diversity. In today’s society, female officers and executives are the driving force behind com- panies, so we should be more conscious and implement measures related to this. Our Company has listed a number of issues, including management issues included in the Medium-term Business Plan and important ESG tasks (Materiality), however, it has become difficult to see the level of the importance of each. As I mentioned at the beginning, a company is nothing more than its people. In other words, the company is a group of its employees. Each and every employee has his or her own character, and the sum of these values leads to the corporate culture. Therefore, I believe it is extremely important for management to identify prioritized actions and have employees focus on solving these issues. TAISEI ANNUAL REPORT 2020 52 ESG Section External Board Members’ Message External Member Profile of the Board 1973 Joined NSK Ltd. 2000 Executive Officer Norio 2002 Managing Executive Officer, Member of the Board Otsuka 2004 Senior Managing Executive Officer, Representative Director 2007 Executive Vice President, Representative Director 2009 President and Chief Executive Officer, Representative Director 2015 Chairman, Member of the Board 2018 Advisor of NSK Ltd. (incumbent) 2019 External Member of the Board of Taisei Corporation (incumbent) Concurrent positions Outside Director of Idemitsu Kosan Co., Ltd. Outside Director of Sojitz Corporation Reason for appointment Rich experience in managing multiple companies As an External Member of the Board, I would like to contribute to the enhancement of corporate value by expanding the business operations of Taisei Corporation and the entire Group. I am particularly interested in safety initiatives because I have a background in manufacturing. As for the current status with serious accidents, I believe that I can contribute to the eradication by using my own experience and examining the situation from a different perspective from that of our Company. Furthermore, with regard to “Sustainable growth of overseas business” under the Medium-term Business Plan, I have experienced difficulties in expanding the overseas business in the companies for which I have worked. I believe that the knowledge I gained at that time will undoubtedly be useful for our Company’s overseas business. The Board meetings of our Company discuss proposals that are closely related to our businesses. I think our meetings are more reliable than those that always discuss paper plans. However, I think we should be visionary and start having discus- sions from a medium to long-term viewpoint. In April 2020, we established the Management Committee, which mainly discusses business execution, and redefined the Board as a supervisory body to discuss the broad direction of corporate strategy. I hope that
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