Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Renovation work on air conditioner at GreenLife Moriguchi, resulting in an approximate 13% reduction in energy consumption.

Social Achievements

• Acquisition of eight healthcare facilities (acquisition price: 22.6 billion yen), expanding the portfolio to 35 healthcare facilities.
• System investment utilizing ICT (EGAO link) at two properties, improving operational efficiency and reducing the work burden for nursing care staff.

Governance Achievements

• Establishment of a management system with clear decision-making flow and compliance procedures.
• Establishment of the “Basic Policy on Customer-Oriented Business Operations” and the “Customer-Oriented Committee” to promote customer-centric practices.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population leading to labor shortages and increased demand for medical and nursing care.
• Growing demand for nursing care services exceeding the supply of facilities and personnel.
• Job separation due to nursing care, exacerbating labor shortages.
• Abuse of the elderly in nursing care.

Mitigation Strategies

• Acquisition of healthcare facilities to increase supply.
• Investment in ICT systems to improve efficiency and reduce workload.
• Collaboration with government and local initiatives to address labor shortages and improve working conditions.
• Training and manuals to prevent abuse and inappropriate care.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Introduced green lease agreement with tenant at Kobe Gakuentoshi Building, resulting in a projected 69% reduction in electricity consumption related to lighting equipment.
• Implemented high-efficiency renovation work for air conditioning equipment at GreenLife Moriguchi.

Social Achievements

• Introduced ICT system (EGAO link) at two properties, reducing staff workload and improving service quality.
• In ASHEIM Bunkyohakusan, reduced care staff by 3.9 people/month and working hours by 686 hours/month.
• In ASHEIM Hikarigaoka, reduced care staff by 1.8 people/month and working hours by 317 hours/month.
• Hydroponic vegetable cultivation project at GreenLife Moriguchi and SHIP Senri Building as job assistance for people with disabilities.

Governance Achievements

• Dissolved the concurrent role of President & CEO of HAM and executive director of HCM.
• Established an ESG Committee to deliberate and draft policies, targets, and measures regarding sustainability.
• Established a Compliance Office and appointed a Compliance Officer to supervise compliance matters.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population leading to labor shortages in the medical and nursing care industries.
• Growing demand for nursing care services and increasing difficulty in providing care within households.
• Growing demand for nursing care services exceeding the supply of facilities and personnel.
• Job separation due to nursing care responsibilities exacerbating labor shortages.
• Abuse of the elderly in nursing care.
• Low salary levels contributing to nursing care personnel shortages.

Mitigation Strategies

• Government initiatives to establish a regional comprehensive care system and regional healthcare vision.
• Government policies for upgrading and expanding healthcare facilities and securing nursing care personnel.
• Government actions to prevent abuse of the elderly.
• Nursing care fee revision in fiscal 2021 to address various issues.
• HCM's continuous investment in healthcare facilities and stable asset management.
• ICT system investments to improve business efficiency and reduce workload for nursing care staff.
• Initiatives to improve working conditions and treatment for nursing care staff.
• Actions to prevent the spread of COVID-19 infections.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 5: Gender Equality
• Other SDGs

Investments in healthcare facilities, initiatives to reduce staff workload, and support for women in the workforce.

Awards & Recognition

• Highest evaluation for social finance framework and social loans by JCR (2019)
• Award of Excellence at the 2021 Assisted-Living Home Research Summit (Nichii Carepalace Company)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 2.9% increase in GHG emission data capture rate across HCM’s real estate portfolio.
• Achieved a 3.1% increase in water consumption data capture rate across HCM’s real estate portfolio.
• Achieved a 2.6% reduction in GHG emissions intensity across HCM’s real estate portfolio.
• Maintained annual water consumption intensity across HCM’s real estate portfolio relative to the baseline year.
• Introduced green lease agreement with tenant, reducing environmental burden and providing economic benefits to both parties.
• Implemented stormwater countermeasure work and landslide prevention measures to improve resilience to disasters.
• Renovated GreenLife Moriguchi using environmentally friendly flooring materials, reducing CO2 emissions and improving sanitation.

Social Achievements

• Introduced “EGAO link” system in two properties, enhancing efficiency of nursing care services and reducing staff workload.
• Achieved a 31.9% proportion of female facility managers at HCM-owned properties.
• Implemented initiatives to prevent medication errors at facilities, improving operational efficiency and protecting residents and staff.
• Supported employment for people with disabilities through hydroponic cultivation projects.
• Held ESG workshops for operators to deepen their understanding of ESG and promote related initiatives.
• Distributed SDGs promotion leaflets to operators.
• Sponsored the Nichii Home Autumn Music Festival 2022.

Governance Achievements

• Established an ESG Committee to deliberate and draft policies, targets, and measures regarding sustainability.
• Implemented a paperless system for meeting materials, reducing paper usage by approximately 10.7% year-on-year.
• Revised personnel evaluation system to ensure fair evaluation process.
• Established a Compliance Office and appointed a Compliance Officer to supervise compliance matters.
• Formulated the Compliance Rules, Compliance Manual, and Compliance Program to promote thorough legal compliance.
• Established systems to prevent corruption, eliminate anti-social forces, and prevent money laundering and terrorist funding.

Climate Goals & Targets

Environmental Challenges

• Shortage of supply of housing for the elderly against the elderly population.
• Prevention of job separation due to nursing care.
• Improvement of business efficiency and reduction of work burden for nursing care staff.
• Prevention of abuse of residents and harassment of facility staff.
• Response to the deterioration of buildings of hospitals, promotion of earthquake resistance.
• Work-life balance, health of staff, etc.
• Growing demand for nursing care services and change in medical services.
• Personnel shortage in the nursing care industry.
• Abuse of the elderly in nursing care.

Mitigation Strategies

• Continuous investment in healthcare facilities and stable asset management.
• ICT system investments in nursing care facilities to reduce work burden.
• Introduction of a cumulative investment system for employees to improve business performance and enhance employee motivation.
• Actively encouraging employees to take paid leave.
• Accepting highly specialized employees with diverse backgrounds from sponsor companies.
• Implementing measures to improve working conditions for nursing care staff, secure and train personnel, prevent job separation, and enhance the attractiveness of the nursing care profession.

Supply Chain Management

Responsible Procurement

• Use of environmentally friendly flooring materials.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., torrential rains, landslides)

Reporting Standards

Frameworks Used: GRESB

Certifications: BELS

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 8: Decent Work and Economic Growth
• SDG 11: Sustainable Cities and Communities

Investments in healthcare facilities contribute to improved health outcomes, job creation, and sustainable community development.

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Received a “2 Stars” in GRESB Rating (improved from 1 Star last year), including a “Green Star” designation for high performance in Management and Performance Components.
• Sequentially upgraded to energy- and water-efficient equipment in resident rooms.
• Implemented high-efficiency renovation work for air conditioning equipment at GreenLife Moriguchi, utilizing national subsidies.
• Recycled recovered CFCs from air conditioning equipment renewal work at Heartland Kawaguchi Meiseien, reducing CO2 emissions.

Social Achievements

• Introduced “EGAO link” system in two properties, enhancing nursing care efficiency and reducing staff workload.
• Installed negative pressure ventilators at GreenLife Moriguchi to isolate COVID-19 cases.
• Installed in-house power generation facilities in 46 of 48 properties (about 95.8%).
• Held ESG workshops for operators to promote ESG initiatives.
• Supported employment for people with disabilities through hydroponic cultivation projects.

Governance Achievements

• Established a robust ESG promotion system with a Chief Officer of Sustainability, Executive Officers of Sustainability, and an ESG Committee.
• Implemented a revised personnel evaluation system for fair performance assessment.
• Introduced a cumulative investment system for directly hired executives and employees to purchase HCM investment units.
• Established a system for consultation and appropriate handling of reports related to violations.

Climate Goals & Targets

Environmental Challenges

• Shortage of supply of housing for the elderly.
• Shortage of nursing care personnel.
• Elder abuse in nursing care facilities.
• Climate change related risks (transition and physical risks).

Mitigation Strategies

• Continuous investment in healthcare facilities.
• ICT system investments to reduce workload for nursing care staff.
• Initiatives to prevent medication errors.
• Scenario analysis of climate change risks and opportunities.
• Implementing landslide prevention measures and stormwater countermeasure work.

Supply Chain Management

Responsible Procurement

• Requests business partners to understand and cooperate with environmental and social considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood damage
• Temperature rise
• Sea level rise

Transition Risks

• Strengthened energy conservation standards
• Introduction of carbon tax
• Changes in evaluation standards
• Tenant/resident behavior change

Opportunities

• Expansion of subsidies for environmental investments
• Reduction of water and utility costs
• High evaluation of environmental performance

Reporting Standards

Frameworks Used: TCFD

Certifications: GRESB, BELS

Third-party Assurance: Sustainability Accounting Co., Ltd.

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 11: Sustainable Cities and Communities

Investments in healthcare facilities contribute to improved health outcomes and sustainable community development.

Awards & Recognition

• GRESB 2 Stars and Green Star (2023)