Obayashi Corporation: Advancing Sustainable Growth In The Global Construction And Infrastructure Industry

Kenji Hasuwa, CEO, Obayashi Corporation

The global construction industry is undergoing rapid transformation, driven by urbanization, technological innovation, and the urgent need for sustainability. Rising infrastructure demands, coupled with challenges such as labor shortages, carbon reduction pressures, and supply chain disruptions, are reshaping market dynamics. Organizations are increasingly implementing digital technologies, renewable energy options, and sustainable building practices to ensure they remain competitive. As these changes take place, the industry's ability to grow is predicated on balancing productivity, environmental stewardship, and resilience throughout a global economy that is rapidly changing.

Obayashi Corporation offers a variety of buildings, including offices, condominiums, commercial buildings, factories, hospitals, and schools, to meet various customer and societal needs. Over the years, the company has completed many projects that reflect the culture of the time. With the increased focus on carbon neutrality, the company has advocated for responsible practices in the construction industry, including wooden structure and interiors, Zero Energy Buildings (ZEB), and sustainable construction with low carbon materials and fuels.

Domestic and Overseas Construction Business

By building essential infrastructures including tunnels, bridges, dams, river works, urban civil engineering struc­tures, railroads, and expressways, Obayashi Corporation helps to develop a safer, more secure, and prosperous soci­ety. It has also opened its business scope to include mainte­nance, rehabilitation, and repairs in recent years, actively contributing to the durability and usability of existing in­frastructures. Additionally, the company plans to increase productivity and safety and promote work style reform through construction DX by developing and utilizing auto­mating and autotomizing technologies in construction.

The firm is growing these construction businesses in Southeast Asia, North America, and Oceania, with Group companies which are deeply embedded in local regions. These efforts support the livelihoods of local communities by developing diverse buildings and social infrastructure. Leveraging business foundations established over more than fifty years, Obayashi Group in Japan and overseas work together to share and enhance each other's strengths in technology and human resources. This organic and bidirectional collaboration drives innovation in construction technologies and global business development, enabling the company to capture new sources of revenue.

Engineering Business

By integrating advanced engineering technologies and specialized technical expertise with the strengths of a general construction business, the company delivers com­prehensive solutions to social challenges, offering “Build + extra” as a new form of added value. In addition to focusing on semiconductor and pharmaceutical manufacturing fa­cilities, renewable energy projects, information and com­munication technology (ICT) solutions for buildings, and soil and water pollution counter measures, Obayashi Cor­poration also promotes consulting and solution proposals that deepen carbon neutrality and overall well-being.

Implementing Decarbonization Initiatives

The company continues to develop and hold prime prop­erties for lease in strategic urban locations while flexibly creating capital gains via private-fund use and an efficient building operations management model. Along with imple­menting decarbonization initiatives as a business operator and providing safe and dependable spaces that allow for uninterrupted tenant businesses, the company is also ad­vancing large scale urban development as a business part­ner and designated agent in redevelopment projects.

Green Energy Business

In accordance with the 2050 Carbon Neutral Declaration, Obayashi Corporation is promoting its renewable energy power generation business, specifically solar, wind, biomass, and geothermal energy. It is also undertaking demonstration projects aimed at creating supply chains that support the social implementation of carbon-free green hydrogen, both domestically and internationally.

New Businesses Initiatives

Obayashi Corporation utilizes its core technologies to respond to social challenges and enter emerging growth markets while enhancing efforts in public-private partnership (PPP) and concession projects. By leveraging technological strengths across the four core businesses of Obayashi Group - domestic construction, overseas construction, real estate, and green energy, with innovative business model, the company aims to drive new commercialization opportunities.