Climate Change Data

Environmental Metrics

ESG Focus Areas

• Value Creation through Lifestyle
• High-Quality and Comfortable Spaces
• Environmental Cultivation and Culture
• Community Formation

Environmental Achievements

• Introduced solar power generation systems in 37 facilities, totaling approximately 103 MW of generation capacity by March 2018. Aiming for 200 MW by March 2020.
• Obtained ISO 14001 certification (Nikko Takara Corporation).

Social Achievements

• Launched various projects through "Leben Labo Ethical Action," including the "Personal Disaster Prevention Kit" and "More if you want it" projects.
• Obtained the "Omotenashi Standard Certification (Gold Certification)" in 2017.
• Implemented various employee training programs, including compliance and harassment training.

Governance Achievements

• Established a compliance and risk management committee.
• Implemented an internal whistleblowing system.
• All outside directors are independent.

Climate Goals & Targets

Environmental Challenges

• Increased construction costs leading to higher housing prices and longer sales cycles in 2017.
• Changing lifestyles impacting customer preferences in housing choices.

Mitigation Strategies

• Adapting to changing customer needs and market trends.
• Developing new business models and value propositions.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Expansion of renewable energy business

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Solar power generation systems in buildings

Awards & Recognition

• Various Good Design Awards for Leben Labo Ethical Action projects

Environmental Metrics

ESG Focus Areas

• Lifestyle Creating Lifestyles with Value
• Community Forming Communities
• Quality Providing Comfortable Spaces of High Quality & Comfort
• Environment & Culture Developing Environments and Cultures

Environmental Achievements

• Developed mega-solar power plants, generating approximately 119 MW of power by March 2019. Aiming for 200 MW by FY2020.
• Provided condominiums equipped with solar power generation systems.
• Implemented measures to reduce general waste and industrial waste material.

Social Achievements

• Launched LEBEN CRAFT project, linking urban condominium residents with regional communities to support regional revitalization.
• Implemented Good Working Project, collecting and implementing ideas on work styles from employees.
• Established Leben Village, a farm employing persons with disabilities.
• Sponsored and participated in Tour de Tohoku, a cycling event supporting Tohoku recovery.

Governance Achievements

• Established a Compliance & Risk Management Committee to manage business-related risks.
• Established an internal whistle-blowing system.
• Revised personnel system to nurture talent and improve employee motivation.
• Implemented a dividend policy considering factors such as dividend on equity and dividend yield.

Climate Goals & Targets

Environmental Challenges

• Responding to changes in business models brought by an aging society and depopulation.
• Addressing global warming and promoting renewable energy.
• Effective use of resources.
• Responding to disasters.

Mitigation Strategies

• Actively acquiring housing lots and supplying condominiums in regional cities.
• Developing mega-solar power plants and providing condominiums with solar power generation systems.
• Implementing measures to reduce waste and improve resource efficiency.
• Providing seismic-resistant and fire-resistant housing.

Supply Chain Management

Responsible Procurement

• Collaboration with local craft associations for joint planning of condominiums.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: GRI, SDGs, SASB

Certifications: ISO 14001 (Nikko Takara Corporation), Omotenashi Standard (two-star certification for SALON DE NEBEL)

Sustainable Products & Innovation

• Condominiums with solar power generation systems
• Condominiums with ENE-FARM and unit-specific solar power generating facilities

Awards & Recognition

• Good Design Awards (several initiatives)
• Good Design Best 100 award (LEBEN LABO ETHICAL ACTION program)
• Good Design Award (Working Point Project)
• Yokohama Good Balance Award (Nikko Takara Corporation)

Environmental Metrics

ESG Focus Areas

• Community Engagement
• Employee Well-being
• Disaster Preparedness
• Customer Satisfaction
• Shareholder Relations

Environmental Achievements

• Not disclosed

Social Achievements

• Yokohama Model Regional Contribution Company Certification for Nikko Takara Corporation (2018)
• Installation of child-friendly emergency shelter guidance signs ('Yajirushi') awarded the Encouragement Prize in a Kids Design Award 2019
• Development of a tsunami evacuation facility (400 m2, capacity 660 people) on the roof of Brillia Shonan Tsujido Kaihin Koen condominium, awarded a Good Design Award 2019
• Implementation of customer satisfaction surveys
• Holding of corporate briefings for individual investors
• Support for community building in condominiums (resident get-togethers, summer festivals)
• Exciting Family Day event for employees' families
• Participation in regional sports events (Shimanto River Swimming Marathon, Matsuyama Ojoka Relay Marathon)

Governance Achievements

• Established internal regulations to prevent insider trading
• Implementation of shareholder questionnaires
• Disclosure of investor information on websites
• Acquisition of external certification (unspecified)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• 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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Encouragement Prize in a Kids Design Award 2019
• Good Design Award 2019

Environmental Metrics

ESG Focus Areas

• Creating Lifestyles with Value
• Forming Communities
• Providing Comfortable Spaces of High Quality
• Developing Environments and Cultures

Environmental Achievements

• Reached 125 MW of solar power generation capacity (equivalent to the electrical power consumed by roughly 40,000 households) by the end of March 2020.
• Completed construction of the LS Hiroshima Mihara Power Generation Facility with a generating capacity of 11,216.7 kW.
• Launched the LS Tottori Daisen Power Generation Facility and LS Miyagi Matsushima power generation facility projects.

Social Achievements

• Opened the fifth My Reha location, a day care service specializing in rehabilitation for seniors.
• Held Premium Markets, connecting condominium residents with producers of agricultural products and crafts from outlying areas.
• Implemented the “SMART GARBAGE STORAGE” 6M Project to improve garbage pickup areas in condominiums.
• Provided the “10 for All” safety assurance service and “KIT+” personal disaster kits.
• Supported the creation of communities of condominium residents through resident get-togethers and summer festivals.
• Donated to TABLE FOR TWO International.
• Participated in Tour de Tohoku 2019 and sponsored the Jingu Gaien Fireworks Festival.

Governance Achievements

• Established Nomination and Remuneration Committees as voluntary advisory bodies of the Board of Directors.
• Established an internal whistle-blowing system (help line) and reinforced the protection of reporting individuals.
• Administered compliance education to employees on various themes.
• Established a management system for appropriately protecting personal information.

Climate Goals & Targets

Environmental Challenges

• Aging society
• Depletion of energy resources
• Decline of rural populations
• Hollowing out of city centers in regional cities
• Abandoned homes
• Natural disasters
• Changes in customer lifestyles
• COVID-19 pandemic

Mitigation Strategies

• Developing condominiums that promote regional development and revitalization
• Providing condominiums with solar power generation systems
• Supplying the NEBEL series of compact, urban condominiums
• Providing leaseback services
• Implementing comprehensive risk management throughout the Group
• Establishing crisis management structures
• Adopting a preventive approach to risk management
• Formulating its next Medium-Term Management Plan (starting from fiscal 2021)

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters such as earthquakes

Opportunities

• Development of energy-efficient products
• Renewable energy generation

Reporting Standards

Frameworks Used: GRI, SDGs, SASB

Certifications: ISO 9001 (Leben Community and Nikko Takara Corporation), Privacy Mark (Leben Community)

Sustainable Products & Innovation

• Condominiums with solar power generation systems
• LUIC Project water system
• NEBEL series of compact, urban condominiums

Awards & Recognition

• Good Design Award (multiple projects)
• Kids Design Award
• GRESB Green Star (Takara Leben Real Estate Investment Corporation)

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• Environmental Issues
• Corporate Governance
• Employee Well-being
• Customer Satisfaction
• Community Engagement
• Responses to an aging society and depopulation
• Responses to natural disasters

Environmental Achievements

• GRESB Takara Leben Infrastructure Fund received a four out of five stars rating for both asset and fund assessments. It was the first Japanese infrastructure fund to be selected as a Sector Leader in Asia.
• Takara Leben Real Estate Investment Corporation received a Green Star in the FY2019 GRESB real estate assessment.

Social Achievements

• Improved customer satisfaction levels through the use of our proprietary Service Quality Management System (SQMS®).
• Providing opportunities and environments where a diverse range of people can work energetically.
• Corporate activities that can respond to social needs with an emphasis on dialogues with our stakeholders.

Governance Achievements

• Construction and maintenance of a corporate governance system
• Promoting compliance
• Regular Executive Committee meetings for decision-making and progress confirmation.

Climate Goals & Targets

Environmental Challenges

• Aging population
• Depopulation
• Natural disasters
• Changes to business models
• Environmental issues
• Economic inequality

Mitigation Strategies

• Providing seismic-resistant and fire-resistant housing
• Improving ability to respond to risk through thorough risk assessment and management
• Engaging in dialogue with stakeholders
• Promoting CSR measures to sustain steady growth
• Evolving to meet the changes of our times and environment

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Reporting Standards

Frameworks Used: GRI, SDGs, SASB

Environmental Metrics

ESG Focus Areas

• Creating Lifestyles with Value
• Forming Communities
• Providing Comfortable Spaces of High Quality
• Developing Environments and Cultures

Environmental Achievements

• Acquired our first wind power plant, Leben Wind Plant Nagasaki Tsushima Power Generation Facility
• Total power generation from renewable energy sources is approximately 310 MW as of the end of March 2022
• Reduced CO₂ emissions by approximately 77,328 tons annually (compared to fossil fuel-fired thermal power plants)
• 100% of detached houses certified for energy efficiency rating (Flat 35)
• Acquisition of ZEH condominium certification (1)

Social Achievements

• Introduced a “discount system for babysitters” to support work-life balance
• Opened the fifth My Reha location, My Reha Misato Rehabilitation Center
• Leben Village employs three persons with a disability
• Introduced a telework system, supporting more diverse employee work styles
• Conducted training on “Case Studies of Personal Information Leakage Accidents in Condominium Management” and “Overview of New PMS Standards”

Governance Achievements

• Established a Sustainability Committee chaired by the Representative Director
• Endorsed the TCFD recommendations (Takara Leben Co., Ltd., Takara Leben Real Estate Investment Corporation and Takara Leben Infrastructure Fund)
• Implemented compliance training
• Conducted board effectiveness assessments
• Established guidelines on internal audits and an Internal Audit Office

Climate Goals & Targets

Environmental Challenges

• Spread of COVID-19 impacting events and operations
• Need to set more effective KPIs for sustainability
• Addressing climate change impacts on business
• Managing risks associated with an aging society and depopulation
• Responding to changes in business models

Mitigation Strategies

• Implemented COVID-19 response measures including telework, flexible work schedules, and safety protocols
• Established a Sustainability Committee to review and improve sustainability activities
• Established a governance structure to address climate-related risks and opportunities, aligned with TCFD recommendations
• Developed new personnel system to attract and retain talent
• Engaging in regional revitalization projects to address depopulation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and evenhanded transactions
• Collaboration and coordination in operations

Climate-Related Risks & Opportunities

Physical Risks

• More intense typhoons and torrential rains
• More frequent heat waves and droughts
• Progressive rise in global sea levels

Transition Risks

• Shift toward decarbonization of the social economy
• Stricter emission regulations

Opportunities

• Development and operation of renewable energy generation facilities

Reporting Standards

Frameworks Used: GRI, SDGs, SASB, TCFD

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy projects, sustainable urban development, and climate change mitigation efforts.

Sustainable Products & Innovation

• ZEH condominiums
• Condominiums with clean air and spaces
• LUIC water system

Awards & Recognition

• GRESB 4-star rating (Takara Leben)
• GRESB 5-star rating (Takara Leben Infrastructure Fund)
• GRESB Green Star rating (Takara Leben Real Estate Investment Corporation)
• Good Design Awards (various projects)

Environmental Metrics

ESG Focus Areas

• Creating Lifestyles with Value
• Providing Comfortable Spaces of High Quality
• Forming Communities
• Developing Environments and Cultures

Environmental Achievements

• Developed environmentally friendly properties, such as "L.Biz NIHOMBASHI", the first office building to receive CASBEE certification A rank.
• Developed a number of mega solar power plants across Japan, promoting solar power generation and other renewable energy projects with a total generation capacity of approximately 360 MW as of March 31, 2023.
• Entered the biomass power generation business.
• Achieved a 10MW increase in renewable energy power generation capacity in FY2023.

Social Achievements

• Made "human resource development and the creation of a rewarding work environment" a pillar of its medium-term management plan.
• Established a Regional Strategy Department to accelerate efforts in regional development nationwide.
• Increased the number of outside directors to at least a majority and actively appointed female directors.
• Implemented a base salary increase of 2.5% on average in FY2023.
• Introduced the Babysitter Usage Discount System.
• Introduced the Middle Career Track System.

Governance Achievements

• Increased the number of outside directors to at least a majority and actively appointed female directors.
• Established the Nominating Committee and the Compensation Committee as voluntary advisory bodies.
• Endorsed the TCFD recommendations and are expanding information disclosure.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Impact of new coronavirus infections
• Rising conflicts and tensions in the international community
• Declining domestic population due to falling birthrate and aging population
• Depopulation of rural areas
• Surge in land prices as well as raw material and construction costs
• Difficulty in recruiting human resources, shortage of labor, and decline in employee quality
• Incidence of natural disasters, accidents, and other incidents
• Spread of infectious diseases
• Incidence of unauthorized access and cyberattacks

Mitigation Strategies

• Developing and operating renewable energy generation facilities
• Reducing greenhouse gas emissions
• Formulating climate change policy
• Building an internal system in compliance with external evaluation organization standards
• Acquiring green certifications
• Promoting earthquake-proofing of buildings and facilities, implementing countermeasures for tsunamis, torrential rain, and floods
• Stockpiling emergency supplies necessary for disasters
• Conducting disaster preparation drills
• Introducing a safety confirmation system
• Strengthening insurance contracts and information security systems
• Ensuring confidentiality
• Establishing internal regulations, conducting training
• Identifying issues and promoting resolutions via Compliance & Risk Management Committee
• Implementing activities designed to improve employee loyalty
• Personnel system reform, enhancement and upgrading of various training systems
• Implementation of branding penetration measures
• Stabilize procurement prices mainly by diversifying suppliers, decentralizing on a regional basis, and using long-term contracts

Supply Chain Management

Responsible Procurement

• Diversifying suppliers
• Decentralizing procurement on a regional basis
• Using long-term contracts

Climate-Related Risks & Opportunities

Physical Risks

• Incidence of natural disasters

Transition Risks

• Changes in FIT
• Stricter regulations for greenhouse gas usage/emissions and energy conservation

Opportunities

• Invigoration of renewable energy market
• Development of renewable energy generation facilities
• Reduction of carbon dioxide emissions

Reporting Standards

Frameworks Used: GRI, SDGs, SASB, TCFD

Certifications: ISO 14001, ISO 9001, CASBEE A rank, BELS 5 stars

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 11: Sustainable Cities and Communities

The Group contributes to solving social issues and achieving the SDGs by engaging in sustainability activities through its business, such as the supply of housing and the introduction of natural energy.

Sustainable Products & Innovation

• ZEH condominiums
• Compact urban condominiums ("NEBEL" series)
• LUIC water system
• THROUGH TAKU delivery box

Awards & Recognition

• GRESB 3-star rating
• GRESB Asia Sector Leader
• GRESB Green Star rating
• Good Design Awards
• Yokohama Good Balance Award
• SUUMO Award