Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switching to environmentally friendly facilities and clean energy-based electricity for Advantage Club
• Promoting water conservation and waste reduction in conjunction with Advantage Club tenants
• Promoting the use of environmentally friendly materials, paints, equipment, etc. by incorporating ESG perspectives into our analysis of current situations and recommendations for land use and construction support
• Promoting buildings and urban development that are considerate of water environment conservation
• Reducing waste and greenhouse gas emissions

Social Achievements

• Instilling our management philosophy through corporate philosophy training and morning meetings conducted by President Hasumi himself
• Enhancing consultant training programs such as ART system training and the Consulting Education Center
• Supporting the establishment and operation of foundations
• Achieving construction of a senior citizen’s facility through subsidies

Governance Achievements

• Establishing appropriate managerial structures for AZN Group by instituting a Nominating Committee and Compensation Council to determine director candidates, as well as succession planning, etc.
• Operating the Compliance Committee and a fair and transparent Compensation Council to advance legal compliance
• Instituting the Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on property consulting sales (fewer face-to-face seminars and client interactions)
• Increasingly complex issues faced by clients requiring broader consultant expertise
• Need to improve productivity and profitability

Mitigation Strategies

• Promoting DX (Digital Transformation) initiatives, including online seminars and web conferencing
• Developing the ART system to improve consulting efficiency
• Aggressive investment in human resources and systems
• Implementing the ability to make Advantage Club purchases via a smartphone app
• Strengthening partnerships with financial institutions and other organizations

Supply Chain Management

Responsible Procurement

• Promoting the use of environmentally friendly materials

Climate-Related Risks & Opportunities

Physical Risks

• Climate change

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 27001

Sustainable Products & Innovation

• Advantage Club

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Capital Development
• Community Contribution

Environmental Achievements

• Reduced CO2 emissions per square meter (CO2 emission intensity) through the introduction of energy-saving equipment and switching to carbon-free electricity plans.

Social Achievements

• Implemented initiatives to promote diversity and inclusion, aiming to increase the percentage of female employees and female managers.
• Supported community initiatives such as pet euthanasia prevention and children's food banks.
• Promoted employee well-being through health management programs and work-life balance initiatives.

Governance Achievements

• Established a Nomination Committee and a Remuneration Advisory Committee to ensure appropriate corporate governance.
• Established a Compliance Committee to promote compliance with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Increasing CO2 emissions due to business expansion and increased employee numbers.

Mitigation Strategies

• Implementing energy-saving measures and switching to carbon-free electricity plans to reduce CO2 emissions per square meter.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Human Capital
• Climate Change
• Governance
• Diversity

Environmental Achievements

• Reduced CO2 emission intensity (tCO2/m2) despite business expansion. Specific figures are shown in the report but not easily quantifiable without further data extraction.

Social Achievements

• Increased ratio of female employees to 30% (target 40%), increased ratio of female managers to 19% (target 30%).
• 100% health checkup rate (consolidated), 71.8% utilization rate of paid leave (non-consolidated).

Governance Achievements

• Endorsement of TCFD recommendations.
• Sustainability Committee oversees climate change risks and opportunities.

Climate Goals & Targets

Environmental Challenges

• Increasing total CO2 emissions due to business expansion and increased employees.

Mitigation Strategies

• Introduction of energy-saving equipment.
• Switching power contracts to a carbon-free plan.
• Ongoing TCFD disclosures and further emission reduction measures under consideration for 2030 and 2050.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance
• Information Security
• Risk Management
• Sustainability

Governance Achievements

• Established Compensation Council and Nominating Committee with at least two outside directors to strengthen Board of Directors' supervisory function.
• Obtained ISO 27001 certification for information security management.
• Established a Compliance Committee to address risk management and legal compliance.

Climate Goals & Targets

Environmental Challenges

• Potential risks of losing trust from the securities market and clients.
• Potential compliance issues with specified joint real estate venture operations.

Mitigation Strategies

• Developed countermeasures to address potential risks of losing trust.
• Established a Compliance Committee to review and approve joint real estate venture operations and prevent serious compliance violations.

Supply Chain Management

Climate-Related Risks & Opportunities