Sustainable Supply Chain

At Penta-Ocean Construction Group, we will conduct fair and equal transactions with our business partners on an equal footing and promote partnerships aiming for cooperation, coexistence and co-prosperity.
Together with our business partners, we will strive to comply with laws and regulations, respect human rights, and incorporate environmental consideration to build a sustainable supply chain.

Click here to view the full Sustainable Supply Chain Policy and Guidelines.

POC practices ESG-oriented CSR management, believing that the greatest contribution to society is the construction of high-quality infrastructure. Through sincere corporate activities, we aim to be an attractive company in the eye of all stakeholders, including clients, society and partner companies. In order to support our partner companies with their Work Style Reform and secure future workers, we promote initiatives such as implementing the Declaration of Adherence to Price Quotations, paying 100% of construction costs in cash, providing incentives for achieving two days off per week and applying for the Construction Career Development System on behalf of our partner companies.

To ensure quality and safety together with subcontracting companies, we have established the "Penta-Ocean Construction Labor Safety Council" which has 1,084 members. The Labor Safety Council works to improve knowledge levels and skills regarding labor safety and carries out various activities to prevent accidents and create a foundation for smooth cooperation between the company and subcontracting companies.

Examples of the Penta-Ocean Construction Labor Safety Council's Activity

Excellent Foreman Certification System

In FY3/14 we introduced an Excellent Foreman Certification System to “secure and train future leaders” and to “improve the treatment given to construction engineers.” Certified foremen are paid an excellent foreman allowance of 2,000 yen per day depending on the number of days they have worked at our company’s site. Additionally, excellent foremen who work for more than 100 days a year are paid an additional 1,000 yen per day. In addition, the employer's share of social insurance premiums for allowances is paid separately. In FY3/23, 431 foremen including 142 newly certified foremen were certified as excellent foremen.

The Foreman Committee

We organize foreman's associations (organizations consisting of foremen and safety and health managers of multiple subcontracting companies) at each site to raise awareness of safety and health among all workers.

We support the work style reforms of subcontractors and skilled workers, for example, by promoting the provision of incentives for skilled workers who achieve two days off per week (increasing the labor costs when the holiday acquisition target is achieved).
We also improve payment conditions for subcontractors (payment in 100% cash), promote and support enrollment in the Construction Career Up System (CCUS*), and provide allowances under the Excellent Foreman System (for CCUS members).

*Construction Career Up System
The system registers working record and qualifications of each skilled worker, enabling fair evaluation, quality improvement as well as productivity improvement at construction sites.

Labor Cost Correction in Shift-type Holiday Acquisition of Skilled Workers

For the skilled workers whose salaries may fluctuate depending on the number of working days, we implemented an initiative to stabilize their income and raise their awareness, as well as for subcontracting companies. Starting with new orders received by POC from July 2019, we provide a premium compensation for labor costs of skilled workers who take more days off than the site-closure targets set at each site.
We also revised the correction factors used for calculation for projects newly received in July 2020 onwards. The improved system is easier to use and covers a wider range of contents.

Cash Only Payment to Subcontracting Companies

In order to strengthen the management base of subcontracting companies, promote social insurance coverage, and encourage Work Style Reforms at sites, we make all payments to subcontracting companies in cash. Starting with new contracts from July 2017, payments to subcontracting companies (including for construction materials) were changed from bill payments (including electronically recorded credit payments and due date payments) to cash only payments. The transition to cash payments was completed in FY2018.

Aiming at 100% Enrollment in Social Insurance Policy

In 2015, we created an "Internal Guideline for the Promotion of Social Insurance Subscription by Subcontracting Companies" and are making company-wide efforts to ensure that all subcontracting companies are covered by social insurance. Regardless of project criteria (public or private), we require primary subcontracting companies to submit quotations that clearly indicate the breakdown of benefit and welfare expenses designated by law, to ensure workers' 100% social insurance coverage. By rule, we do not contract with companies that do not subscribe to social insurance unless there are special circumstances.
As of FY3/23, the social insurance coverage rate for primary subcontracting companies is 100%, and the social insurance coverage rate for workers of primary subcontractors is over 99%.

Promotion of Construction Career-Up System (CCUS) Registration

The Construction Career Upgrade System (CCUS) is an important tool for improving compensation structure of skilled workers. In order to promote its implementation, we made it mandatory for workers to register for CCUS onsite and installed card readers for construction projects worth 100 million JPY or more. Our CCUS operation is linked to the Green Site, which significantly reduces the registration task for POC and for the subcontracting companies. In order to promote CCUS registration of primary and secondary subcontractors. We extended the free-of-charge registration service for unregistered companies until March 2025, and conduct the service throughout the year. In addition, in 2020, we established an "Inquiry Support Team" at the headquarter office and for subcontracting companies to provide support by responding to questions and consultations by phone and email, and by providing guidance on registration.

CCUS registration rate as of March 31, 2024