Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental initiatives
• Community programs
• Governance initiatives

Environmental Achievements

• Use of eco-friendly materials in Gotanda Project; waste materials recycled to reduce environmental load
• Environmental certification obtained for Daimyo 2-chome Office Project

Social Achievements

• Housing development business for local customers in Los Angeles started in cooperation with local partners
• Rental housing development business in Hawaii began, focusing on housing conditions and local laws (Bill 7)

Governance Achievements

• Established Sustainability Committee and CG committee

Climate Goals & Targets

Environmental Challenges

• Concerns about unpaid rent during the pandemic in Los Angeles

Mitigation Strategies

• Use of the state’s rent subsidy program in Los Angeles

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: METI’s Guidance for Collaborative Value Creation framework, TCFD Guidance

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Issuance of free and paid stock options to increase commitment to the Medium-term Management Plan, with a higher weight given to young employees.

Climate Goals & Targets

Environmental Challenges

• Uncertain business environment for income-earning properties due to the COVID-19 outbreak.

Mitigation Strategies

• Successfully navigated the challenges and achieved increased net sales and income.

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Revitalization
• Employee Well-being

Environmental Achievements

• Renovated residences with water-saving and energy-saving fixtures at the Musashi Urawa Project.
• Calculated and disclosed greenhouse gas emissions in line with TCFD.

Social Achievements

• Introduced Peer Bonus® system to boost employee engagement.
• Implemented diversity and wellbeing initiatives.
• Held regular internal lectures on sustainability for employees.

Governance Achievements

• Established a new Vision and Values statement.
• Strengthened information security measures.
• Enhanced disclosure, including non-financial information.
• Actively engaged in dialogue with stakeholders.

Climate Goals & Targets

Environmental Challenges

• Impairment of corporate value due to delayed response to social and environmental changes.
• Lower real estate value due to incompatibility with social needs.
• Subdued performance due to loss of credit and diminished product value.
• Devastating disasters and accidents due to inadequate property maintenance.
• Intensifying competition for talent.
• Decreased employee engagement and productivity.
• Human rights issues leading to a decline in reputation and business stagnation.
• Business stagnation and loss of credit due to compliance violations and internal control failures.

Mitigation Strategies

• Real estate planning to meet social and environmental needs.
• Proactively acquiring real estate environmental certification.
• Promoting real estate planning that contributes to community revitalization.
• Introducing and using renewable energy and energy-saving equipment, and using building materials with low environmental impact.
• Strengthening information security measures.
• Maintaining real estate functions through appropriate repair planning and response.
• Ensuring legal compliance and thorough corrective action for properties.
• Developing disaster preparedness functions and responding quickly to emergencies.
• Establishing a work environment and work style that is consistent with the times and needs, and promoting employee health and wellness.
• Fostering an organizational culture rooted in psychological safety and respect for diversity.
• Enhancing training, education, and awareness-raising opportunities.
• Co-creating new value through the CVC business.
• Promoting cross-company DX.
• Executing and overseeing operations based on multi-faceted risk management.
• Optimizing business portfolio in response to changes.
• Securing product planning budget for ESG and contributing to the SDGs through our business.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Received an A rank in the CASBEE Certification for Real Estate for Orchid Residence Nerima Kitamachi in September 2024 for energy efficiency and conservation of natural resources.
• Actively promoting sustainable renovations using degradation-resistant and recycled materials.

Social Achievements

• Implementation of the Peer Bonus® System to foster a challenging corporate culture.
• Introduction of PivottA Sustainability in August 2024 for employee learning on sustainability topics.
• Issuance of SDGs private placement bonds with Aichi Bank and signing sustainability-linked loan agreements with Hyakujushi Bank and Chiba Bank.

Governance Achievements

• Strengthening information security measures.
• Thoroughly instilling compliance awareness among executives and employees.
• Actively engaging in dialogue with stakeholders.
• Enhance disclosure, including non-financial information.

Climate Goals & Targets

Environmental Challenges

• Impairment of corporate value due to delayed response to social and environmental changes.
• Lower real estate value due to incompatibility with social needs.
• Intensifying competition for talent.
• Decreased employee engagement and productivity.
• Human rights issues leading to a decline in reputation and business stagnation.
• Business stagnation and loss of credit due to compliance violations and internal control failures.

Mitigation Strategies

• Increased market value of real estate with social and environmental considerations.
• Enhanced community presence through community creation and revitalization.
• Transubstantiation of ideas through diversity and inclusion.
• Creation of new business opportunities by exploring and utilizing innovative technologies.
• Creation of business opportunities and sustainable growth through improved adaptability to changes.
• Diversification of financing methods by expanding ESG investments.

Supply Chain Management

Responsible Procurement

• Using degradation-resistant materials and recycled materials in sustainable renovations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: CASBEE, BELS, LEED