Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resources
• Pollution Control and Effective Use of Resources
• Diversity & Inclusion
• Work-Life Balance
• Corporate Governance
• Compliance

Environmental Achievements

• Reduced GHG emissions (excluding Scope 3) from 45,059 t-CO2 in 2015 to 48,888 t-CO2 in 2018, while floor area increased.
• Reduced water usage from 22,822 thousand m3 in 2015 to 23,895 thousand m3 in 2018, while floor area increased.
• Reduced waste emissions from 4,685 tons in 2015 to 4,945 tons in 2018, while floor area increased.

Social Achievements

• Increased female full-time employee rate from 20.5% in 2015 to 23.8% in 2018.
• Increased female management rate from 21.1% in 2015 to 27.7% in 2018.
• Improved average number of paid leave days taken from 8.8 days in 2017 to 9.9 days in 2018.

Governance Achievements

• Maintained high compliance training completion rates (above 98%).
• High compliance survey return rates (above 71%).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Lloyd's Register Quality Assurance Limited (LRQA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resources
• Pollution Control and Effective Use of Resources
• Diversity & Inclusion
• Work-Life Balance
• Corporate Governance
• Compliance

Environmental Achievements

• Reduced GHG emissions (excluding Scope 3) from 45,059 t-CO2 in 2015 to 51,470 t-CO2 in 2019, while increasing floor area for reporting.
• Improved energy efficiency, as indicated by decreasing unit load of energy use (crude oil kl equivalent) per thousand m2.

Social Achievements

• Increased female full-time employee rate from 20.5% in 2015 to 24.8% in 2019.
• Increased female management rate from 24.9% in 2015 to 28.9% in 2019.
• Improved average number of paid leave days taken from 9.9 days in 2018 to 10.6 days in 2019.
• Reduced lost time injury incidents from 2 in 2016 to 0 in 2019.

Governance Achievements

• High compliance training completion rate (above 98% each year).
• High compliance survey return rate (above 71% each year).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Lloyd's Register Quality Assurance Limited (LRQA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced energy consumption and CO2 emissions through LED lighting and renovations of large-scale commercial facilities.
• Achieved a more than 16% PAL reduction rate, a more than 29% ERR, and an A-Rank in CASBEE® (self-assessment) at the Empire Building.
• Used renewable energy certificates for approximately 620,000 kWh of power.
• Six properties acquired the DBJ Green Building Certification.

Social Achievements

• Established Tokyo Tatemono Kids Co., Ltd. and opened eight Ohayo Child Care facilities, accommodating 309 children.
• Implemented Brillia Bloomoi Project to create housing that responds to the diversified needs of working women.
• Improved customer satisfaction through renovations based on customer feedback and the Human Building Competition.
• Increased female employment rate to 27%.

Governance Achievements

• Established a corporate governance system with a board of directors and an audit and supervisory board.
• Established the Group Management Meeting for efficient and sound Group management.
• Implemented a stock remuneration system to link director remuneration to long-term corporate value.

Climate Goals & Targets

Environmental Challenges

• Securing space for childcare facilities in urban areas.
• Entry into childcare business due to subsidy programs.
• Aging condominiums in need of reconstruction.
• Increasing number of home deliveries and re-deliveries causing distribution load problems.

Mitigation Strategies

• Joint venture with Global Group Corporation to operate Ohayo Child Care.
• Conducted Brillia Tama New Town condominium redevelopment project.
• Installation of delivery lockers in parking lots.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Adoption of recycle and reuse products

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood damage

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRESB

Certifications: CASBEE, DBJ Green Building Certification, SEGES, ABINC, ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 11: Sustainable Cities and Communities

Initiatives contribute to building inclusive, safe, resilient, and sustainable cities.

Sustainable Products & Innovation

• Brillia condominiums with energy-saving equipment
• Ohayo Child Care facilities

Awards & Recognition

• GRESB Green Star (two consecutive years)
• GRESB 5 stars (2016)
• Good Design Award (Brillia Disaster Prevention Guidelines)
• Good Design Award (Nakano Central Park)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Greenhouse gas emissions decreased by 4.8% over five years (despite new energy-intensive facilities).

Social Achievements

• Launched Brillia Bloomoi project for diverse customer needs; opened 14 Ohayo Child Care facilities in four years; achieved 2020 Certified Health and Productivity Management Organization Recognition Program certification.

Governance Achievements

• Established Sustainability Committee; increased Board of Directors discussions on medium-to-long-term strategies; introduced stock remuneration system linking director compensation to corporate value.

Climate Goals & Targets

Environmental Challenges

• Intensified international competition between cities; diversification of work and life styles; declining population; growing geopolitical and natural disaster risks; rising construction costs due to labor shortages; shrinking condominium market; changes in office needs associated with remote work; changes in the environment to acquire sites due to increasing competition; weak investment market.

Mitigation Strategies

• Large-scale redevelopment projects; strengthening condominium business through redevelopment and rebuilding; expanding property sales for investors; strengthening brokerage, fund, and parking lot businesses; growing overseas business; work-style innovation; investment in high-quality projects; risk management system referencing ISO31000 and JIS Q 31010; compliance training; Sustainability Committee; Green Finance initiatives.

Supply Chain Management

Responsible Procurement

• Compliance Charter prohibiting child or forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Changes in real estate investment needs

Opportunities

• Development of energy-efficient products; green finance initiatives.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: BELS, CASBEE, DBJ GB, ZEB Ready

Sustainable Products & Innovation

• ZEH-M condominiums; energy-efficient office buildings.

Awards & Recognition

• GRESB Green Star award (5 consecutive years); GRESB 5 Star Rating (3 consecutive years); Minister of the Environment ESG Finance Award Japan (Silver Award).

Environmental Metrics

ESG Focus Areas

• Strengthening Tokyo’s competitiveness as an international city
• Contributing to a safe and secure society
• Community building and revitalization
• Wellbeing
• Addressing the diverse needs of customers and society
• Value co-creation and innovation
• Social implementation of technology
• Revitalizing and utilizing real estate stock
• Promoting a decarbonized society
• Promoting a recycling-oriented society
• Improve employee growth and job satisfaction
• Diversity & inclusion
• Advancement of governance
• Strengthen risk management framework
• Realizing sustainability management

Environmental Achievements

• Hareza Tower received the highest rating of five stars in the overall building evaluation of the Building-Housing Energy efficiency Labeling System (BELS).
• Hareza Tower achieved a roughly 50% reduction in annual energy consumption.
• Hareza Tower became the first super-high-rise mixed-use building over 150 meters tall to obtain ZEB Ready certification.
• Nine offices and commercial buildings received high ratings of four or five stars in the DBJ Green Building Certification.

Social Achievements

• Launched Brillia Owners Club with approximately 36,000 members.
• Brillia Art Award open exhibition program.
• Opened 14 new Ohayo (Good Morning) Child Care centers in four years.
• Opened Sekimachi-Minami After-School, the first school-aged child care center.

Governance Achievements

• Established a Sustainability Committee.
• Formulated Sustainable Procurement Standards.
• Linked a certain percentage of director remuneration to business and stock price performance.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on earnings in hotel, retail facility, and parking businesses.
• Mounting competition between international cities and areas.
• Rising construction costs.
• Contraction in the condominium market due to population decline.
• Rising land prices.
• Diversification of working styles and office needs.
• Increasingly sophisticated needs for offices to attract/retain talented staff and provide business continuity.
• Climate change risks (severe natural disasters).

Mitigation Strategies

• Optimizing the business portfolio.
• Building a sound, stable financial base.
• Steady expansion of leasing profit.
• Strengthening the property sales business.
• Strengthening the services business.
• Developing new properties that address diversifying working styles and enhancing auxiliary services.
• Carrying out urban development to heighten the allure of areas.
• Promoting large-scale redevelopment projects.
• Formulating medium- and long-term targets for reducing greenhouse gas emissions.
• Implementing a company-wide risk management framework.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Standards (9 items)

Climate-Related Risks & Opportunities

Physical Risks

• Severe natural disasters (storm and flood damage)

Transition Risks

• Changes in the real estate investment environment

Opportunities

• Further expansion of green investment in areas such as sustainable energy

Reporting Standards

Frameworks Used: GRI, TCFD

Sustainable Products & Innovation

• ZEB and ZEH condominiums
• Environmentally friendly logistics facilities (ZEB Logistics)

Awards & Recognition

• Silver Award at the ESG Finance Award Japan (2020)
• Gold Award at the ESG Finance Award Japan (2021)
• Gold Award in the fundraiser category at the Minister of the Environment ESG Finance Awards Japan
• 5 Stars in the GRESB Real Estate Standing Investments Benchmark (four consecutive years)
• 5 Star rating in the GRESB Development Benchmark

Environmental Metrics

ESG Focus Areas

• Climate Change
• Pollution Control and Resource Recycling
• Water Resources
• Biodiversity
• Responding to Natural Disasters
• Diversity & Inclusion
• Work-Life Balance
• Human Resource Investment and Development
• Health Management / Occupational Safety and Health
• Respect for Human Rights
• Improving Quality and Customer Satisfaction
• Revitalizing and Utilizing Real Estate Stock
• Contributing to Our Communities
• Corporate Governance
• Risk Management
• Compliance
• Supply Chain Management

Governance Achievements

• Adopted an executive officer system to energize the Board of Directors and speed up decision-making.
• Established a Board of Directors and an Audit and Supervisory Board.
• Appoint external directors and external Audit and Supervisory Board members to ensure stronger management supervision and transparency.
• Established a Nomination and Remuneration Advisory Committee to select candidates for directors and recommend remuneration levels.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Recycling-oriented society
• Employee growth and job satisfaction
• Diversity & Inclusion
• Advancement of governance

Environmental Achievements

• Otemachi Forest, certified as a nature symbiosis site by Japan’s Ministry of the Environment
• 71.1% of office buildings, retail buildings, and for-rent condominiums obtained DBJ Green Building Certification and other external evaluations and certifications related to green buildings as of December 31, 2023
• Two office buildings were certified ZEB Ready and 11 T-LOGI series logistics properties were certified “ZEB” as of the end of December 2023
• Brillia Fukasawa Hatchome (to be completed in 2025) selected for the Ministry of Land, Infrastructure, Transport and Tourism’s 2023 Sustainable Building Leadership Project (Leadership in CO2 Reduction), becoming the first Brillia property to reach “ZEH-M” status.

Social Achievements

• Launched Brillia PRIDE PROJECT in July 2023 to reform the mindsets of management and employees and aligned manufacturing and sales efforts
• Tokyo Tatemono Amenity Support ranked first for the sixth consecutive year in a survey assessing condominium residents’ satisfaction with condominium management companies
• Received the FY2023 Climate Change Action Environment Minister Award for T-LOGI series’ self-consignment initiative

Governance Achievements

• Established the Management Discussion Board in 2023 to stimulate discussion of medium- to long-term issues at Board of Directors meetings
• Established the Risk Management Committee to strengthen risk management
• Increased the dividend per share for fiscal 2023 to 73 yen from the previous year’s annual dividend of 65 yen, resulting in a payout ratio of 33.8%. The annual dividend for fiscal 2024 is planned to be 79 yen (pay-out ratio 34.4%), representing an 11th consecutive year of increase.

Climate Goals & Targets

Environmental Challenges

• Soaring construction costs
• Lower profitability
• Higher demand for funding
• Rising energy costs
• Increasing vacancy rates due to the COVID-19 pandemic
• Slow growth in the overseas business due to the effects of political upheaval and the COVID-19 pandemic
• Intensifying land acquisition environment
• Falling purchase appetite amid rising home loan interest rates
• Effects of soaring construction costs

Mitigation Strategies

• Thorough study and discussion of various scenarios from the perspective of risk management
• Actions to improve profitability and meet funding demand
• Management schedules for projects for which construction is slated to begin in the near future
• Optimizing business portfolio through share transfers of consolidated subsidiaries
• Selling non-current assets
• Further enhance the added value of physical spaces
• Strengthening relationships with more than 100 lenders, including megabanks
• Maintaining credit ratings
• Diversifying financing methods, including ESG finance
• Actively sell non-current assets and cross-shareholdings
• Accelerating the use of recovered funds for growth investments
• Cost controls
• Careful selection of investments utilizing the Company’s strengths
• Further strengthening the development and sales system for high-priced products
• Investing in new asset types, such as condominiums for students and hospice facilities

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Carbon pricing
• Stricter standards for GHG emissions and energy saving
• Higher costs of introducing decarbonized building materials
• Higher unit cost of grid electricity
• Higher utility costs due to change in energy mix
• Higher utility costs due to higher demand for fossil fuels
• Burden from renewable energy procurement

Opportunities

• Efficiency improvements with ZEB and ZEH development
• Procurement of renewable energy through self-consignment
• Improved earnings from high environmental performance properties
• Improvement of energy-saving effects
• Expansion of ESG Finance

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: SBTi (Re-certified at 1.5°C level in February 2024)

Sustainable Products & Innovation

• ZEB and ZEH buildings
• Brillia ist series of for-rent condominiums

Awards & Recognition

• SUUMO AWARD 2023 (multiple categories)
• 2023 Achievement Award for the Real Estate Institute of Japan
• Minister of the Environment Award for Climate Action 2023