Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoting solar power homes and ZEH (Net Zero Energy House) as part of ESG management.

Social Achievements

• Focusing on employee development and creating a fulfilling work environment; aiming for less than 10% employee turnover.
• Actively recruiting new graduates and mid-career employees to strengthen sales.
• Incorporating feedback from female employees and mid-career hires into specifications and designs.
• Standardizing housing performance evaluations (design and construction evaluations) from January 2023.

Governance Achievements

• Partial English translation of shareholder meeting notices and electronic voting system implementation (from January 2023 shareholder meeting).
• Partial English translation of financial statements (from December 2022 disclosure of the 24th fiscal year financial statements).
• Making financial statements available on demand to increase communication opportunities with institutional investors.
• Disclosing the first medium-term management plan to investors and analysts.

Climate Goals & Targets

Environmental Challenges

• Decreasing sales due to insufficient inventory at the beginning of the fiscal year.
• Increased costs due to wood shock, the weak yen, and rising energy prices.
• Competition from major real estate companies in the Kinki region.
• Nationwide decline in housing starts, leading to increased competition.
• Rising land prices without corresponding income growth.
• Potential industry stagnation due to rising interest rates.

Mitigation Strategies

• Securing sufficient inventory at the start of the 25th fiscal year.
• Strengthening procurement and sales through collaboration with local agents and effective campaigns.
• Focusing on providing high-quality, low-cost detached houses.
• Improving organizational capabilities through the use of monthly action plans and DX.
• Strengthening land procurement through increased visits to local agents and information gathering.
• Strengthening sales in the Kanto region (expanding the business of Aoi Construction Co., Ltd.).
• Reviewing process management to enhance early construction and sales, aiming for three annual inventory turnovers.
• Actively promoting young and motivated employees to line leaders.
• Establishing a new branch office in Nagoya (February 2023) and planning additional branch offices.
• Constructing income-generating properties (rental properties) in the Tokyo metropolitan area and Sakai branch offices to secure stable income.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Solar power homes
• ZEH (Net Zero Energy House)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Declining housing market conditions leading to decreased sales and revenue.
• Increased land and construction material costs, forcing price reductions on some properties.
• Increased competition in the Kinki region.
• Long-term stagnation in housing demand due to high housing prices and low real income.

Mitigation Strategies

• Gradually increasing the number of income-generating properties to stabilize the business.
• Acquisition of KHC Group to expand market share and leverage synergies.
• Focus on human resource development and efficiency improvements.
• Strengthening land acquisition and improving profitability and inventory turnover.
• Continuous value engineering (VE) to control costs and enhance product appeal.

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