Sustainability-Related Innovation

Policy and Approach
Linking Sustainability Strategy and Innovation
Innovation Sources and Promotion Structure
Initiatives

Policy and Approach

The ID&E Group has positioned innovation at the core of our corporate culture, guided by our management philosophy: "Act with integrity and contribute to society through technology and engineering." This philosophy drives our passion for technological innovation and our committed approach to addressing social challenges. To respond to rapidly changing social environments and increasingly complex challenges, we regard innovation as the key to sustainable growth. We aim to realise our mission of "Making the World a Better Place" by creating distinctive value that meets evolving societal needs and expectations. Whilst our Consulting, Urban and Spatial Development, and Energy business domains operate autonomously, we maximise synergies across the Group and strengthen integration between sustainability and innovation. In our medium-term management plan, we have positioned Further Advancement of Sustainability Management as one of the key pillars of our Group management policy, pursuing the resolution of social challenges and creation of new business opportunities through innovative technologies and solutions. Through these efforts, we aim to achieve sustained enhancement of corporate value whilst contributing to the sustainability of society as a whole.

Sustainability-Related Innovation Policy

Linking Sustainability Strategy and Innovation

Contribution to Material Topics

The ID&E Group applies innovation in a targeted and systematic way to address key sustainability issues, aiming to build a more sustainable society and strengthen corporate value. Working towards the materiality "Cultivating a Beautiful and Habitable Planet and Leadership Based on Integrity and Technology", we are driving innovation by harnessing our Group's integrated strengths to meet needs of society and clients:
➡ Technology development for disaster prevention and mitigation
➡ Expansion of renewable energy business
➡ Research and development of renewable energy and next-generation energy
➡ Sustainable urban design through "The Good City Project"
➡ Provision of smart solutions contributing to decarbonisation and ecosystem recovery etc.
Furthermore, in the materiality "innovating to address the challenges of the modern world," we are advancing value creation leveraging our Group's comprehensive capabilities through cross-industry collaboration and AI-powered advanced research and development.

Risk Response and Opportunity Creation Through Innovation

Our Group enhances response capabilities through forward-looking, strategic innovation to address risks including regulatory changes, resource depletion, climate change impacts, quality risks arising from the loss of technical expertise and operational know-how, and intellectual property infringement. Simultaneously, we regard innovative technology as an essential driving force for capturing new social and market opportunities in decarbonisation, circular economy, and disaster response. The Sustainability Management Framework formulated in 2024 clearly positions innovation as a core element.

Innovation Sources and Promotion Structure

We integrate innovation into our core business practices to address material sustainability challenges, contributing to a sustainable society and enhancing long-term corporate value.

Management Resources Supporting Innovation

The ID&E Group supports innovation creation through strategic investment in research and development, human capital development, utilisation of cutting-edge technologies, robust research infrastructure, and the strategic protection and utilisation of intellectual property. In our R&D investment, we position disaster prevention and mitigation, renewable and next-generation energy, urban and spatial development, and advanced technologies such as AI as priority focus areas, and make investments at target levels aligned with our materialities. We regard the development of innovation talent as a critical management resource. By fostering specialised professionals capable of active global engagement, and through initiatives such as Group-wide business competitions and training programmes delivered by the Global Academy, we connect innovative ideas to business implementation. Furthermore, with the AI Technology Centre and the Nippon Koei Central Research Institute at the core, we promote the integrated development and application of digital technologies, as well as the seamless advancement of basic and applied research across the Group. In addition, we strengthen the protection and utilisation of intellectual property, enhancing sustainable competitiveness by elevating the value of technology through invention review committees and employee education.

Innovation Promotion Structure

In addition to initiatives to promote innovation at each Group company, the Co-Creation Strategy Council, one of ID&E's important meeting bodies, examines and promotes collaboration strategies to optimise our Group's business based on the business and technology strategies of each Group company, demonstrating synergistic effects.

Protection and Utilisation of Intellectual Property

Our Group recognises that the protection and utilisation of intellectual property supporting innovation is of critical importance. In the ID&E Group Code of Conduct, we have established provisions for contributing to society's sustainable development through the protection, management, and utilisation of intellectual property. We also stipulate the importance of respecting and not infringing upon the intellectual property rights of others.

Structure

Our Group has established intellectual property contact points at major main group companies and executes activities necessary for intellectual property protection and utilisation, including acquisition and management of intellectual property rights, licensing to others, and prevention of intellectual property rights infringement. Overall coordination of intellectual property rights acquisition and management across our Group is handled by the Legal and Compliance Department of Nippon Koei Business Partners.
Establishment of Invention Review Committees
To promote innovation within the ID&E Group, we have established invention review committees at major main group companies. These committees are responsible for evaluating employee inventions, determining the necessity of patent filings and subsequent continuation applications, and calculating performance-based rewards. Each committee consists of a chairperson, internal members, and external experts such as lawyers or patent attorneys. These committees comprise a chairperson, committee members, and external experts (lawyers or patent attorneys).
Employee Education
Within our Group, we believe that enhancing intellectual property literacy amongst employees through intellectual property education contributes to sustainable corporate growth, and various programmes are implemented.

Patent Acquisitions

Currently held patents: 48 cases
Nippon Koei, Nippon Koei Urban Space, and Nippon Koei Energy Solutions operate a system to pay rewards to inventors when employee inventions are filed, registered, and when registered patents are used in business to generate profit, in order to encourage inventions made by employees as part of their duties (employee inventions). In FY2024/06, 12 patents were subject to rewards.

Initiatives

Our Group connects innovation to realising a sustainable society through specific services, products and other solutions. The following introduces major example of our innovation.

Next-Generation Agricultural Models Realised Through Technology and Collaboration—Smart Agriculture Package Challenge

Nippon Koei Energy Solutions is developing a Smart Agriculture Package to address labour shortages and climate change challenges facing Japan’s agricultural sector. Centred on the integrated environmental control system “a‑MAC,” and combined with greenhouse cultivation technologies developed in collaboration with universities, a demonstration project for strawberry cultivation is currently underway in Kakegawa City, Shizuoka Prefecture. The package supports reduced operational burdens for farm managers and stable production through the visualisation of environmental data and remote control of cultivation conditions. In addition, it is expected to promote the effective reuse of underutilised agricultural facilities and encourage new entrants into farming, thereby contributing to the sustainable development of regional agriculture.