Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by approximately 40% in Hulic Head Office Building compared to planned building.
• Achieved a reduction in waste by 11% and water consumption by 17% in 16 primary office buildings.
• Hulic Head Office Building obtained DBJ Green Building platinum certification.
• Sendai First Tower obtained DBJ Green Building gold certification.
• Hulic Asakusabashi Building obtained DBJ Green Building platinum certification.

Social Achievements

• Ranked first in the real estate/welfare/other industry of the Nikkei Environmental Management Survey for the third consecutive year.
• Increased amounts of celebration money for childbirth.
• Introduced Babysitter Program.
• Improved customer satisfaction (90% or more of corporate tenants satisfied).
• Implemented inspections toward full-scale execution of No Overtime Day.

Governance Achievements

• Established the CSR Committee.
• Introduced the executive officer system.
• Established the Management Advisory Committee.
• Established the Risk Management Committee.
• Enhanced information security management system.

Climate Goals & Targets

Environmental Challenges

• Increased paper consumption due to merger and increased personnel.
• Increased gas consumption in FY2012 due to lower outside temperature.
• Uncertainty in governmental environmental measures.
• Increased CO2 emissions forecasted with expansion of office leasing business.

Mitigation Strategies

• Promoting both-side printing and intensive printing, switching to electronic document circulation and approval system.
• Formulated a voluntary action plan to reduce power consumption at peak hours by 15%.
• Formulated medium and long-term plan aiming to reduce total CO2 emissions by 25% relative to the figure in 1990 by 2020.
• Introducing natural lighting and ventilation systems, and LED lighting system with sensors.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair trade with outsourced contractors based on “rules for real estate outsourcing management”.

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes

Transition Risks

• Uncertainty in governmental environmental measures

Opportunities

• Development of energy-efficient products and buildings

Reporting Standards

Frameworks Used: GRI

Certifications: DBJ Green Building Certification

Third-party Assurance: Smart Energy Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hulic Head Office Building with natural ventilation and lighting systems (jointly developed with MIT).

Awards & Recognition

• 9th Minato Ward Creation of Green Town Award
• Selected as “excellent website” for two consecutive years in the 2012 All Listed Company Website Ranking

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Initiatives
• Corporate Governance

Environmental Achievements

• Reduced CO₂ emissions by 2,095 t-CO₂ year over year to 13,065 t-CO₂. CO₂ emissions per unit floor area decreased by approximately 3% compared with the previous year.
• Achieved a 17% reduction in waste.
• Achieved a 26% reduction in water consumption.
• 3 or more capital investments for renewable energy per fiscal year (achieved).
• 1 or more greening projects per fiscal year (achieved).

Social Achievements

• Opened a company daycare nursery inside the Hulic head office building.
• 100% of eligible women used childcare leave.
• Employment rate of persons with disabilities maintained at over 2%.

Governance Achievements

• Appointed its first female external director.
• Internal audit functions generally conform to the international standards for internal auditing defined by the Institute of Internal Auditors (IIA).

Climate Goals & Targets

Environmental Challenges

• Reducing total CO₂ emissions from buildings owned by the Company by 25% by 2020, against 1990 levels.
• Increasing the ratio of female managers to 20% of all employees by 2020.
• Maintaining a high level of business continuity during emergencies.

Mitigation Strategies

• Implementing energy-saving renovations, introducing energy-saving technologies, and promoting energy conservation activities.
• Establishing a women's career promotion project team and conducting various activities to support women's careers.
• Implementing earthquake-resistance diagnosis and seismic reinforcement, adopting earthquake-absorbing and earthquake-damping structures, and establishing a business continuity basic plan.

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy (complying with laws, regulations, social norms, respecting human rights, promoting green procurement, building trust with business partners).

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Flooding
• Liquefaction

Opportunities

• Demands from society for eco-friendly buildings
• Rising demand for renewable energy

Reporting Standards

Frameworks Used: GRI G4

Certifications: JHEP A+, A, SEGES Urban Development

Third-party Assurance: Smart Energy Co., Ltd.

Sustainable Products & Innovation

• Longer life buildings
• Natural ventilation and lighting system

Awards & Recognition

• Good Design Award (Hospitalment Musashino)
• First place in Nikkei Inc.'s Environmental Management Survey (five consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental measures
• Strengthening the 3K businesses toward resolving social issues
• Diversity and work-life balance
• Strengthening corporate governance and risk management

Environmental Achievements

• Reduced CO₂ emissions intensity by 21% from 1990 to 2015 (per unit floor area)
• Reduced waste by 22% from 2007 to 2015 (per unit floor area)
• Reduced water consumption by 27% from 2007 to 2015 (per unit floor area)
• 9 greening projects completed in 2015

Social Achievements

• 100% of eligible women used childcare leave
• 71% usage rate of paid leave in 2015
• 100% of employees received medical checkups
• 2.31% employment ratio of the disabled (consolidated basis) in 2015
• 12 social action programs in 2015

Governance Achievements

• Established Corporate Governance Guidelines
• 8 internal audits conducted in 2015
• 98% participation rate in the Board of Directors' Meeting in 2015
• 5 compliance seminars conducted in 2015

Climate Goals & Targets

Environmental Challenges

• Market changes caused by changes in social structure
• Risk of earthquake occurring in Tokyo where our portfolio is concentrated
• Risk of deteriorating real estate market conditions due to a prolonged downturn in Japanese economy
• Risk of rising financing costs caused by turbulent financial markets

Mitigation Strategies

• Seismic reinforcement of building and facilities
• Measures against lifeline dependence through use of natural, renewable energy
• Countermeasures against Tsunami, etc.
• Preparation of risk scenarios
• BCP formulation
• BCP training

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Earthquake

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Natural ventilation and natural lighting system
• Desiccant air conditioning system

Awards & Recognition

• Nikkei Environmental Management Survey (1st place for 6 consecutive years)
• 19th Environment Communication Awards Prize of Greatness
• 25th Grand Prize for the Global Environment Award
• Minister of Land, Infrastructure, Transport and Tourism Prize
• Kids Design Award 2015
• Good Design Award 2015

Environmental Metrics

ESG Focus Areas

• Environmental measures
• Strengthening the 3K businesses toward resolving social issues
• Diversity and work-life balance
• Strengthening corporate governance and risk management

Environmental Achievements

• Reduction in average CO2 emissions intensity (kg-CO2/m²) by 5% during the period from 2012 through 2016 compared to the average during the period from 2005 through 2007.
• Reduction in the average amount of waste (t) by 15% during the period from 2013 to 2016 compared with average during period from 2005 through 2007.
• Reduction in average water consumption (m³) by 15% during the period from 2013 through 2016 compared to the average during the period from 2005 through 2007.

Social Achievements

• In addition to meetings of the women's career promotion project team, we held seminars and conferences for exchanging opinions for all female employees.
• Continued operation of daycare nursery inside Hulic's head office building.
• Promoted the use of plus-one paid leaves/consecutive paid leaves

Governance Achievements

• Established the Nominating Committee and the Remuneration Committee, each consisting of a majority of external directors, and endeavor to increase management transparency and objectivity.
• Implemented internal audits nine times in fiscal year 2016.
• Received the highest-level “Eruboshi” certification from the Minister of Health, Labour and Welfare as an excellent company taking initiatives to promote women’s participation and advancement in the workplace.

Climate Goals & Targets

Environmental Challenges

• Market changes caused by changes in social structure
• Risk of earthquake occurring in Tokyo where our portfolio is concentrated
• Risk of deteriorating real estate market conditions due to a prolonged downturn in Japanese economy
• Risk of rising financing costs caused by turbulent financial markets

Mitigation Strategies

• Prioritizing business domains based on changes in social structure
• Establishing a business continuity plan (BCP) and conducting BCP drills
• Establishing BCP based on collaborative structures with outside organizations and developing and commercializing building and facility earthquake resistance services
• Improving the earthquake resistance of company-owned buildings

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Risk of earthquake occurring in Tokyo where our portfolio is concentrated

Opportunities

• Differentiation from other companies by taking the lead in addressing environmental issues
• Improved image as a pioneering company

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) "The GRI Standards", The Japanese Ministry of the Environment “The Environmental Reporting Guidelines (2012)”

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Natural lighting system
• Photovoltaic panels

Awards & Recognition

• Ranked 1st in the Real Estate/Warehouse Industry for the Seventh Consecutive Year in the “Environmental Management Survey”

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions intensity by 80.7 kg-CO2/m2 in 2017 (assured by independent provider)
• Reduced average waste by 12% (2013-2016 compared to 2005-2007 average)
• Reduced average water consumption by 26% (2017-2019 compared to 2005-2007 average)
• Installed photovoltaic generation systems in new buildings
• Achieved near-ZEB status in Hulic Head Office Building through renewable energy and energy efficiency measures

Social Achievements

• Increased ratio of female managers to 15.6%
• Maintained employment ratio of disabled persons at or above the statutory rate (2.11% consolidated, 6.16% non-consolidated)
• Achieved 78.3% usage rate of paid leave
• Opened onsite childcare nursery
• Received Grand Prize of “Ikumen Award 2017”

Governance Achievements

• Conducted 11 internal audits
• 97% participation rate in Board of Directors' meetings
• No compliance violations in 2017

Climate Goals & Targets

Environmental Challenges

• Climate change risks: damage to buildings from natural disasters, procurement risks due to environmental changes
• Potential implementation of CO2 emissions trading system

Mitigation Strategies

• Formulated a long-term environmental vision for 2050, including a goal to reduce CO2 emissions by 45% by 2030 (relative to 2013 levels)
• Implemented energy-saving technologies (natural ventilation/lighting, high-efficiency equipment)
• Proactively adopted earthquake-absorbing and damping structures
• Implemented liquefaction countermeasures and flood control measures

Supply Chain Management

Responsible Procurement

• Hulic Green Procurement Policy (environmental conservation, fair trade, human rights)

Climate-Related Risks & Opportunities

Physical Risks

• Damage to buildings from natural disasters

Transition Risks

• CO2 emissions trading system

Opportunities

• Increased demand for energy-saving products and services
• Development of new energy-efficient technologies
• Opportunities for government collaboration on low-carbon initiatives

Reporting Standards

Frameworks Used: GRI Standards, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2012)

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Longer life building designs
• Energy-efficient technologies (natural ventilation/lighting, high-efficiency equipment)

Awards & Recognition

• Ranked 1st in Nikkei Environmental Management Survey for eight consecutive years
• Prize of Excellence for the “21st Environmental Communication Awards”
• Grand Prix for the Ikumen Company Award 2017
• 29th “Commendation for Leading Companies Where Women Shine”

Environmental Metrics

ESG Focus Areas

• Global warming
• Conservation of resources and waste reduction
• Biodiversity and greening
• Strengthening 3K businesses (Koreisha, Kanko, Kankyo)
• Diversity and work-life balance
• Corporate governance and risk management

Environmental Achievements

• Reduced CO2 emissions intensity by 17% (2017-2020) relative to 2013 levels
• Implemented 9 greening projects in 2018
• Reduced average waste by 12% (2017 compared to 2005-2007 average)
• Reduced average water consumption by 26% (2017 compared to 2005-2007 average)
• Completed 11 longer-life buildings based on Hulic Guideline for Longer Life Service

Social Achievements

• Increased ratio of female managers to 18.5%
• Maintained employment ratio of disabled persons at or above the statutory rate (2.41% consolidated, 5.74% non-consolidated)
• Maintained high usage rate of paid leave (77.0%)
• Zero workplace accidents in 2018
• Implemented 21 social contribution programs as a company and 6 by employees

Governance Achievements

• 98% participation rate in Board of Directors' meetings
• Conducted 9 internal audits
• No compliance violations in 2018
• External quality evaluation of internal audits showed general conformance (GC) to IIA standards

Climate Goals & Targets

Environmental Challenges

• Risk of implementing CO2 emissions trading system
• Increased demand for energy-saving products and services
• Damage to buildings due to natural disasters
• Procurement risk due to environmental changes
• Market changes caused by changes in social structure
• Risk of earthquake occurring in Tokyo
• Risk of deteriorating real estate market conditions

Mitigation Strategies

• CO2 emissions reduction plan with a 45% reduction target by 2030
• Adoption of energy-saving technologies
• Promotion of energy savings and utilization of renewable energy
• Prioritizing business domains based on changes in social structure
• Establishing a business continuity plan (BCP) and conducting BCP drills
• Improving the earthquake resistance of company-owned buildings
• Promoting long-term lease agreements with tenants
• Primarily long-term, fixed-rate financing

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Hulic Green Procurement Policy (energy saving, water conservation, biodiversity, pollution prevention, resource saving)

Climate-Related Risks & Opportunities

Physical Risks

• Damage to buildings due to natural disasters

Transition Risks

• Risk of implementing CO2 emissions trading system
• Procurement risk due to environmental changes

Opportunities

• Increased demand for energy-saving products and services
• Increased demand for renewable energy

Reporting Standards

Frameworks Used: GRI Standards, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2012)

Certifications: Null

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with SDGs but doesn't specify which goals.

Sustainable Products & Innovation

• Fire-resistant wooden buildings

Awards & Recognition

• 2019 Certified Health & Productivity Management Outstanding Organization (Small and Medium-sized Enterprises Category)
• Outstanding Performance Award at 2018 Environmental Human Resources Development Corporate Awards
• Ranked 1st in Nikkei Environmental Management Survey for nine consecutive years

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved targets of previous Long-term Management Plan 4 years ahead of schedule
• Reduced CO2 emissions intensity by 24%
• Achieved 100% of new buildings meeting new earthquake-resistance standards
• Reduced waste at Hulic’s properties by 15%
• Reduced water consumption at Hulic’s properties by 26%

Social Achievements

• Achieved 20.2% ratio of female managers (target 20% by 2020)
• Achieved 2.42% employment ratio of persons with disabilities (target 2.2% or over)
• Achieved 78.5% usage rate of paid leave (target 70% or over)
• Maintained 100% employee medical checkup rate
• Launched Hulic Scholarship Program for Training of Welfare Caretakers

Governance Achievements

• Achieved 99% participation rate of Directors in Board of Directors Meetings
• Established nomination committee and compensation committee
• Provided compliance trainings for all employees

Climate Goals & Targets

Environmental Challenges

• Declining population and shrinking workforce
• Natural disaster risk (potential Tokyo earthquake)
• Global uncertainties (trade friction, etc.)
• Climate change risks (extreme weather, energy consumption)
• Resource exhaustion

Mitigation Strategies

• Portfolio restructuring (focus on central Tokyo, specific asset types)
• Earthquake-resistant building designs and BCP implementation
• Investment in next-generation assets (data centers, etc.)
• Energy-efficient buildings, renewable energy investments (RE100 target by 2025)
• Longer life building designs, 3R initiatives (Reduce, Reuse, Recycle)

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy, Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, floods, typhoons)

Transition Risks

• CO2 emissions trading system enforcement
• Increased energy costs

Opportunities

• Increased demand for energy-efficient products and services
• Opportunities for renewable energy projects

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Sustainability Reporting Standards, TCFD

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Natural ventilation and natural lighting systems
• Photovoltaic panels
• Thin-layered wall greening system
• Fire-resistant wooden buildings

Awards & Recognition

• Good Design Award for HULIC SQUARE TOKYO
• Health & Productivity Management Outstanding Organization (2020)

Environmental Metrics

ESG Focus Areas

• Disaster preparedness
• Population decline
• Energy
• Climate Change
• Social contribution
• Diversity and inclusion
• Corporate governance

Environmental Achievements

• Achieved RE100 in May 2023, two years ahead of schedule
• 86% of highly earthquake-resistant buildings (95% excluding those for sale or reconstruction) as of December 31, 2023
• Reduced greenhouse gas emissions (Scope 1+2) by 70% compared to 2019

Social Achievements

• Increased number of senior living units to approximately 4,800, approaching the 5,000 target by 2025
• Customer satisfaction rate of 92.2% in 2023
• Established the Hulic Scholarship Program for Training of Welfare Caretakers
• Maintained a high employee satisfaction rate and low turnover

Governance Achievements

• Appointed an external director as chairperson of the Board of Directors in 2024
• Achieved a female ratio of 30% among directors and auditors as of April 1, 2024
• No internal compliance breaches or violations of laws in FY2023

Climate Goals & Targets

Environmental Challenges

• Earthquake risk in Japan
• Risk of Mt. Fuji eruption
• Global warming and the need for carbon neutrality
• Declining working-age population and labor shortages
• International and domestic economic uncertainties

Mitigation Strategies

• Implementing stricter earthquake resistance standards and seismic reinforcement
• Developing ashfall prevention equipment and business continuity plans for Mt. Fuji eruption
• Achieving RE100 and transitioning to 100% renewable energy
• Investing in automation and technology to address labor shortages
• Diversifying business portfolio and strengthening financial position

Supply Chain Management

Responsible Procurement

• CSR purchasing policy

Climate-Related Risks & Opportunities

Physical Risks

• Earthquakes
• Flooding
• Mt. Fuji eruption

Transition Risks

• Regulatory changes
• Increased costs of environmental compliance

Opportunities

• Increased demand for energy-efficient buildings
• New revenue streams from environmental business

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IFRS Foundation), Guidance for Collaborative Value Creation 2.0 (Ministry of Economy, Trade and Industry), GRI Standards 2021

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

Sustainable Products & Innovation

• Longer life buildings
• Fireproof wooden buildings
• Environmentally friendly building materials

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization
• Four stars in the Nikkei SDGs Management survey