Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased sales in real estate sales business.
• Decreased number of new houses and condominiums delivered.
• Increased operating expenses in real estate management business.
• Decreased orders for office renovation and detached house construction in other businesses.
• High dependence on interest-bearing debt.
• Potential for defects in construction and resulting liability.
• Dependence on cooperating companies.
• Risk of system failures.
• Risk of personal information leakage.
• Impact of legal regulations.
• Impact of economic conditions in Australia on overseas business.
• Potential impact of changes in the valuation of deferred tax assets.
• Potential impact of the expiration of tax loss carryforwards.
• Potential impact of impairment accounting.
• Potential impact of conversion of preferred stock.
• Impact of stock ownership by Unizon Capital-managed fund.

Mitigation Strategies

• Increased profit margin in new condominium sales.
• Efforts to secure high profit margins in investment condominium sales and renovation projects.
• Sale of development land.
• Efforts to secure new management contracts in real estate management business.
• Cash management service (CMS) contracts with major group companies.
• Commitment lines for working capital and real estate development funds.
• Diversification of funding methods using real estate securitization.
• Strict quality control (QIT) activities.
• Comprehensive after-sales service.
• Good communication and regular sharing of technology and know-how with cooperating companies.
• Strengthening of information management systems.
• Acquisition of Privacy Mark certification by subsidiaries.
• Efforts to improve business efficiency and profitability.
• Redemption of all remaining preferred stock in fiscal year 2009.
• Precise marketing to capture customer needs.
• Utilization of intellectual assets in land acquisition, product planning, and sales strategies.
• Strengthening of CSR and corporate governance, and internal control systems.

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: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Long-term recyclable housing (200-year housing).

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs (Sustainable Development Goals)
• ESG (Environment, Social, and Governance)

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented Work Style Innovation (WSI), resulting in a 208% increase in operating profit, a 42% decrease in overtime hours, a 99% decrease in holiday work, and a 44% increase in paid leave acquisition between 2015 and 2019.
• Launched and successfully operated the MIMARU apartment hotel series, targeting inbound tourists.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased profitability in the residential business due to lower-than-expected sales of new buildings and land.
• Significant decrease in revenue and profit from the overseas hotel and resort business due to its sale.

Mitigation Strategies

• Successfully divested from the non-synergistic overseas hotel and resort business.
• Expanded the solution business, including the successful launch of the MIMARU apartment hotel series.
• Improved profitability in the residential business through increased sales of new single-family homes and renovated apartments.

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: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• MIMARU apartment hotel series

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs
• ESG

Social Achievements

• Work Style Innovation program resulting in a 259% increase in operating profit from FY2015 to FY2020, a 47% decrease in average monthly overtime hours, and an increase in paid leave rate from 44% to 79%. Increased female employee ratio to 57%, nearly all employees on parental leave returned to work, and 9% of employees work reduced hours due to childcare/eldercare.
• Ranked 2nd in OpenWork's "Best Companies to Join as a New Graduate 2019" ranking.

Governance Achievements

• Established a Corporate Governance system including a Board of Directors, Audit Committee, Nomination and Remuneration Committee, Executive Committee, Management Meeting, and Strategic Policy Confirmation Meeting.
• Implemented a restricted stock compensation plan for directors (excluding audit committee members and outside directors).

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on the economy, employment, consumer sentiment, and real estate market conditions.
• Potential for decreased customer purchasing power due to significant interest rate increases, decreased sales prices due to new large-scale supply, increased vacancy rates and decreased profitability in the solution business, and valuation losses on assets and properties for sale.
• Fluctuations in performance due to the timing of property deliveries.
• Significant interest rate fluctuations impacting the company's financial performance and condition due to high reliance on debt financing.
• Potential for liability for defects in design and construction, leading to compensation costs and loss of customer trust.
• Potential risks associated with the performance of partner companies.
• Risks related to personal information and information system management, including data breaches.
• Potential impact of changes in legal regulations.
• Potential impact of the actions of the majority shareholder, Daiwa House Industry Co., Ltd.
• Potential impact of natural disasters.
• Potential impact of changes in global political and economic conditions on the hospitality business.
• Potential impact of currency fluctuations.
• Potential impact of changes in assumptions regarding the recoverability of deferred tax assets.

Mitigation Strategies

• Regularly monitoring market trends and conducting risk assessments.
• Increasing the proportion of non-real estate sales businesses.
• Increasing equity and expanding financing methods.
• Implementing a consistent quality management system.
• Diversifying partner companies and maintaining good relationships.
• Strengthening information management systems and employee training.
• Maintaining sufficient liquidity and improving investment efficiency.
• Implementing infection control measures in response to the COVID-19 pandemic.
• Implementing cost-cutting measures and reviewing investment timing.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Renovation of existing properties
• Incorporation of shared facilities in new buildings (co-working spaces, laundry, delivery storage)

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs (Sustainable Development Goals)
• ESG (Environment, Social & Governance)

Social Achievements

• 独自の品質管理体制「QIT」による品質へのこだわり
• アクティブシニア向けマンションの開発
• 働き方やライフスタイルの変化に対応した空間設計

Governance Achievements

• 情報管理に関する規程などの整備や個人情報保護方針（プライバシーポリシー）の制定
• 社員教育システムの運用、オフィス入退館システムの導入

Climate Goals & Targets

Environmental Challenges

• コロナ禍による宿泊事業の苦戦（MIMARUの稼働率低下、一部施設休業）
• 新築マンション等の収益性の低下

Mitigation Strategies

• ホテル開発物件の販売時期変更
• 国内需要獲得に向けたプロモーション強化
• デザイナーなどとのコラボレーションによる付加価値の創出
• 日本人向け販売促進強化

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 19 年連続グッドデザイン賞

Environmental Metrics

ESG Focus Areas

• SDGs
• ESG

Social Achievements

• Certified as a Health & Wellbeing Management Excellent Company 2021 by the Japan Health Conference.
• Work Style Innovation initiatives resulted in a 52% increase in operating profit (compared to FY2015), a 33% decrease in average monthly overtime hours, and a 20-point increase in paid leave rate to 65%.

Governance Achievements

• Established a compliance department and a compliance box (compliance consultation window).

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on various socio-economic activities, leading to a significant decline in personal consumption and impacting the hospitality and tourism industries.
• Potential risks to the real estate market due to long-term economic impacts of COVID-19, including decreased willingness to purchase homes.
• Risks associated with fluctuations in interest rates and exchange rates.
• Risks related to contract non-conformities and potential liabilities.
• Risks associated with the performance of collaborating companies.
• Risks related to the management of personal information and information systems.
• Risks associated with legal regulations and potential changes in regulations.
• Risks related to the influence of the company's major shareholder, Daiwa House Industry Co., Ltd.
• Risks associated with natural disasters and unforeseen events.
• Risks related to the impact of COVID-19 on business activities, including employee infections and potential disruptions.
• Risks related to overseas situations, particularly the impact on the hospitality sector.
• Risks related to the recoverability of deferred tax assets.

Mitigation Strategies

• Regularly conducts market trend observations and risk assessments, including scenarios for real estate market deterioration.
• Increasing the ratio of businesses other than real estate sales to minimize the impact of risks.
• Further expansion of equity capital and diversification of funding methods to mitigate interest rate risks.
• Implementation of a consistent quality management system, including the establishment of standard specifications and quality control standards.
• Careful monitoring of material and component prices, avoiding over-reliance on specific companies, and maintaining good relationships with collaborating companies.
• Continuous strengthening and expansion of regulations and security measures to minimize the risk of personal information leakage.
• Continuous monitoring of legal and regulatory changes and adapting business activities accordingly.
• Careful consideration of the potential impact of the major shareholder's interests on business operations and performance.
• Thorough implementation of infection control measures and adapting business activities to the situation.
• Regularly conducts risk assessments and develops mitigation strategies for various risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Health & Wellbeing Management Excellent Company 2021

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Realizing ZEH (net Zero Energy House) for all newly built condominiums
• Revitalizing pre-owned stock in sales of renovated condominiums and investment properties
• Developing products and services with a low environmental burden

Social Achievements

• Developing products and services that support community formation and child raising
• Implementing company workstyle reforms to build urban lifestyles with warm connections between people

Governance Achievements

• Continuously strengthening risk management functions and corporate governance to build a foundation for sustainable growth compliant with a diverse business lineup

Climate Goals & Targets

Environmental Challenges

• COVID-19 impact on Accommodation business, leading to decreased occupancy rates and suspended operations of some facilities
• Declining demand for newly built condominiums and single-family homes due to declining birthrate and aging population

Mitigation Strategies

• Developing a menu for domestic demand in the Accommodation business and preparing for the recovery of inbound demand
• Focusing on sales of renovated condominiums and investment properties as growth drivers
• Improving profitability through a value-added strategy and digitalization
• Deepening the condominium residential development business in Australia

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ZEH condominiums
• Renovated condominiums and investment properties with low environmental burden

Awards & Recognition

• Good Design Award for 20 consecutive years (FY02 to FY21)
• iF DESIGN AWARD 2022

Environmental Metrics

ESG Focus Areas

• ESG経営の実践

Environmental Achievements

• 新築マンション全住戸へのZEH採用
• リノベーションマンション販売や収益不動産等販売における中古ストック再生の取り組み
• 環境負荷の低い商品・サービスの開発

Social Achievements

• コミュニティ形成や子育てを支援する商品・サービスの開発
• 同社独自の働き方改革

Governance Achievements

• リスク管理機能とコーポレートガバナンスの継続的な強化

Climate Goals & Targets

Environmental Challenges

• コロナ禍による宿泊事業の低迷
• コロナ禍による工事事業の受注機会減少
• アクティブシニア向け分譲マンションの販売遅延

Mitigation Strategies

• 国内需要向けのメニュー開発
• ホテル施設販売の推進
• 受注環境の回復への期待
• デジタルマーケティングの強化
• 高付加価値商品・サービスの提供

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ZEH対応マンション
• リノベーションマンション
• 環境配慮型オフィス空間

Awards & Recognition

• 20年連続グッドデザイン賞
• iF DESIGN AWARD2022

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved ZEH-M Oriented specifications in all new condominium construction.
• Further strengthened initiatives for the reuse of existing stock in the sales of renovated condominiums and income-generating properties.
• Creation of products and services that contribute to environmentally friendly urban living.

Social Achievements

• Continued and evolved initiatives to support community building, the growth of children, and childcare.
• Further promoted the company's unique work style reform (WSI).
• Implemented risk management functions and corporate governance to support continuous business growth across diverse business lines.

Governance Achievements

• Continued strengthening of risk management functions and corporate governance to support sustainable business growth.

Climate Goals & Targets

Environmental Challenges

• Increased energy and raw material prices due to the prolonged war in Ukraine.
• Monetary tightening in Europe and the continued uncertainty of the future.
• Decrease in the number of new condominium deliveries.

Mitigation Strategies

• Implemented “Medium-term Management Plan 2026” focusing on strengthening business and financial foundations, creating new businesses, and practicing ESG management.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Upcycled materials in renovation projects

Awards & Recognition

• Excellent Award, 11th Healthy Lifespan Extension Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved ZEH (Net Zero Energy House) for all units in new condominium projects
• Strengthened initiatives for recycling and reuse of existing properties in renovation and investment property sales
• Creation of environmentally friendly products and services contributing to low-environmental-impact urban living

Social Achievements

• Creation of products and services that support community building, children's growth, and childcare
• Further promotion of the company's unique work style reform (WSI)
• Initiatives such as resident and neighborhood association collaboration for disaster prevention in new condominium projects

Governance Achievements

• Continuous strengthening of risk management functions and corporate governance to support sustainable business growth across diverse business lines

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on the hospitality business, leading to a revision of financial targets in the previous medium-term management plan

Mitigation Strategies

• Strengthening business and financial foundations, creating new businesses, and implementing ESG management to recover and improve performance

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ZEH (Net Zero Energy House) condominiums
• Renovated properties
• Environmentally friendly products and services

Awards & Recognition

• Health Management Excellent Company 2022

Environmental Metrics

ESG Focus Areas

• Health and well-being
• Community engagement
• Disaster preparedness
• Sustainable building practices
• Next generation support

Environmental Achievements

• ZEH-M Oriented specifications for new construction, aiming for a 20% reduction in primary energy consumption compared to the standard value.

Social Achievements

• Received the Excellent Award in the Corporate Sector of the 11th Health Longevity Award for initiatives related to health promotion in condominiums for active seniors.
• Implemented disaster prevention initiatives connecting condominium residents with the local community, including holding disaster prevention seminars and creating a condominium disaster prevention manual.
• Certified as a Health Management Excellent Company 2023 by the Japan Health Conference.
• Sponsored the U-12 Junior Soccer World Challenge.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Uncertainty in the business environment due to international political situations and financial trends.
• Decreasing domestic population and household numbers, and accelerating aging population.
• Changes in urban living needs accelerated by the novel coronavirus infection.
• Staff shortages and rising prices of utilities in the hospitality business.
• Fluctuations in interest rates, construction costs, and material prices.

Mitigation Strategies

• Strengthening business and financial foundations.
• Creating new businesses.
• Implementing ESG management.

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: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZEH-M Oriented new construction aiming for 20% reduction in primary energy consumption.

Awards & Recognition

• Excellent Award in the Corporate Sector of the 11th Health Longevity Award
• Health Management Excellent Company 2023

Environmental Metrics

ESG Focus Areas

• ESG経営の実践

Climate Goals & Targets

Environmental Challenges

• 世界的な金利上昇トレンドや物価上昇等を背景とした住宅購入意欲の低下、収益不動産価格の下落リスク、資材・労務費高騰を背景としたコスト増による影響

Mitigation Strategies

• 「中期経営計画2026」の重点テーマである「事業・財務基盤の強化」「新たな事業創造」「ESG経営の実践」を通じて、企業価値の更なる向上に努める

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity & Inclusion
• Human Capital
• Sustainability

Social Achievements

• Women account for 55.9% of total employees (as of September 2024) and 48.6% of new hires (as of April 2024). Cosmos Hotel Management subsidiary has a 61.2% foreign employee ratio (as of September 2024).
• Implementation of WSI (Work Style Innovation) for improved work-life balance.
• Initiation of "Cosmos Initia's Gender-Free Project" to promote gender equality.

Governance Achievements

• Establishment of a Nomination and Remuneration Committee composed of the Chairman, President, independent outside directors, and audit committee members.
• Implementation of a performance-based compensation system for directors.
• Introduction of a restricted stock compensation plan for directors.

Climate Goals & Targets

Environmental Challenges

• Improving the representation of women in management positions (currently at 16.2% as of September 2024).
• Developing a comprehensive diversity and inclusion policy.
• Addressing the low percentage of foreign investors (less than 10%).

Mitigation Strategies

• Setting targets for increasing the percentage of women in management and board positions (30% by the end of fiscal year 2029).
• Setting a target for 100% male parental leave usage by the end of fiscal year 2026.
• Considering the implementation of an electronic voting platform and English translation of meeting notices in the future.
• Reviewing the attendance of beneficial owners at shareholder meetings.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 3 properties received CASBEE Real Estate environmental certification (2 S-rank, 1 A-rank)
• Initia Nippori incorporates sustainability initiatives, including ZEH Oriented and ZEH-M Oriented certifications, long-term repair plan, and eco-friendly waste disposal design.
• Continued beach cleaning activities in Shonan, using recycled ocean plastic in renovations.

Social Achievements

• Launched "KURO-GO" service for convenient baggage delivery for international travelers.
• Improved accessibility for people with disabilities and families with medically fragile children in MIMARU hotels.
• Implemented "Next Generation Challenge 2024" investing approximately 2% of net income in ESG initiatives, including collaboration with local community groups and support for young carers.

Governance Achievements

• Introduced electronic contract system for fractional real estate products and developed a regular inspection system for condominiums to improve efficiency and customer convenience.
• Implemented digital initiatives such as Web3-based travel experiences using NFT membership cards in MIMARU hotels.
• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Rising construction costs and interest rates impacting profitability.
• Delays in Australian development projects and inventory valuation losses.
• Labor shortages in the tourism industry and geopolitical risks affecting inbound tourism.
• Not disclosed

Mitigation Strategies

• Monitoring construction costs and interest rates.
• Addressing delays and losses in Australian projects.
• Focusing on new store openings in Tokyo and Osaka, and exploring expansion into regional areas.
• 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: CASBEE Real Estate

Certifications: ZEH Oriented, ZEH-M Oriented

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 3 Good Design Awards in 2024

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs (Sustainable Development Goals)
• ESG (Environment, Social, Governance)

Social Achievements

• Work style innovation (WSI) resulting in increased operating income, decreased overtime, and increased paid leave usage.

Climate Goals & Targets

Environmental Challenges

• Decline in sales of newly-built condominiums due to external environmental factors.
• Lack of synergy in the overseas hotel resort business.

Mitigation Strategies

• Sold overseas hotel resort business.
• Expanded Solutions business (including new Lodging business).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• MIMARU apartment hotels

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs (Sustainable Development Goals)
• ESG (Environment, Social, Governance)

Social Achievements

• Enhanced WSI (Work Style Innovation), resulting in increased operating income, decreased overtime hours, and increased paid leave usage.

Climate Goals & Targets

Environmental Challenges

• Significant negative impact from the COVID-19 outbreak, particularly affecting the Accommodation business.

Mitigation Strategies

• Implemented self-restraint measures for sales activities, temporarily closed some work sites and hotels, reduced new investment in systems and R&D, and reviewed implementation periods to maintain liquidity.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• CSV (Creating Shared Value)
• SDGs (Sustainable Development Goals)
• ESG (Environment, Social, Governance)

Environmental Achievements

• INITIA Wako acquired ABINC certifications as a “building in harmony with nature”, featuring a common garden and clubhouse promoting “harmony with the local ecosystem and regeneration”.

Social Achievements

• Work Style Innovation (WSI) initiative: In a comparison of before WSI to after (FY3/19 to FY3/15), operating profit increased by 208%, overtime hours decreased by 42%, holiday work attendance decreased by 99%, and paid leave usage increased by 44%. In FY3/19, the Company promoted the company-wide use of remote work and also expanded support for balancing work with childcare and family care.
• RENOA Kita-akabane project: large-scale renovation from a company dormitory to condominiums, involving design and building a common area to encourage communication and customization of space in individual units.
• Construction of an outdoor sports facility and museum with inclusive designs.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 significantly impacted the Accommodation business, leading to a decline in occupancy rates at “MIMARU” apartment hotels and delays in selling hotel development properties.
• Diminished profitability of new condominiums and other properties in the Residential business.

Mitigation Strategies

• Revised numerical goals in the medium-term business plan 2021 to reflect COVID-19 conditions.
• Continued longer-term management policy and strategic policies, adding a focus on responding to changes in living styles and workstyles driven by COVID-19.
• Strengthening promotions aimed at acquiring domestic demand for MIMARU apartment hotels.
• Creating added value and raising awareness through collaboration with designers and others for MIMARU.

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: ABINC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• INITIA Wako (environmentally friendly building)

Awards & Recognition

• Good Design Award (19 consecutive years)