Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• Governance
• Compliance

Social Achievements

• Increased employee training and development (implied by focus on 'Reborn Engagement' and personnel strengthening)

Governance Achievements

• Strengthened internal audit department and oversight to address past compliance issues
• Implemented 'Reborn Engagement' initiative focusing on customer benefit and compliance

Climate Goals & Targets

Environmental Challenges

• High land prices in Fukuoka due to construction boom
• Subpar performance in 2019 due to a subsidiary's misconduct and market conditions
• Increasing construction costs
• Inadequate internal controls leading to subsidiary misconduct
• Economic slowdown due to COVID-19 pandemic
• Decreasing housing demand due to price increases
• Increased competition from major developers

Mitigation Strategies

• Avoided high-priced land purchases in Fukuoka, focusing on areas with appropriate pricing
• Expanded search for land in Saitama, Chiba, and Kanagawa prefectures
• Purchased completed properties with high sales potential
• Strengthened internal controls, including increased personnel and authority in internal audit
• Implemented 'Reborn Engagement' initiative focusing on customer benefit and compliance
• Reviewed business processes and enhanced check systems
• Considered increasing capital through additional funding
• Focused on cost reduction through measures like optimizing model room usage
• Planned for organizational restructuring to improve governance

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 1 (No Poverty)

The company discloses its initiatives related to SDG 1.

Environmental Metrics

ESG Focus Areas

• SDGs

Governance Achievements

• Implemented measures to prevent recurrence of inappropriate conduct at subsidiary (Kose Asset Plan), including organizational restructuring, internal audits, risk review committee, internal reporting system improvements, communication improvements, and personnel system reforms.

Climate Goals & Targets

Environmental Challenges

• Inappropriate conduct (alteration of loan application documents) at subsidiary (Kose Asset Plan).

Mitigation Strategies

• Organizational restructuring (dissolution of Kose Asset Plan), enhanced internal audits, continued effective risk review committee, improved internal reporting system, better communication, improved corporate culture, prevention of personnel rigidity, organizational revisions, regulation revisions, enhanced compliance awareness, and revised personnel evaluation system.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• DX (Digital Transformation)
• Corporate Governance

Environmental Achievements

• Obtained energy efficiency rating of Level 4, indicating significant energy reduction measures.
• Acquired design performance evaluation and construction performance evaluation for housing defect liability insurance.

Social Achievements

• Not disclosed

Governance Achievements

• Published Corporate Governance Report
• Transitioned from TSE Second Section to First Section

Climate Goals & Targets

Environmental Challenges

• Increased procurement costs leading to higher selling prices.
• Securing land and products due to intensified competition for land acquisition.
• Maintaining business profit

Mitigation Strategies

• Refining specifications and plans to match customer needs, absorbing procurement costs while maintaining customer appeal.
• Effective utilization of equity capital to enhance shareholder value.
• Strengthening sales capabilities to adapt to the diversification of sales products.
• Prioritizing customer interests for long-term customer growth.
• Expanding and strengthening stock businesses for stable earnings.

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

• Sustainable Development Goals (SDGs)
• Corporate Governance
• Human Capital Management

Environmental Achievements

• Obtained energy efficiency rating of level 4, indicating significant energy reduction measures.
• Acquired design performance evaluation and construction performance evaluation.

Social Achievements

• Focus on enhancing employee education and training to foster a challenging corporate culture.
• Prioritizing customer interests for long-term customer growth.

Governance Achievements

• Aiming for flexible and sustainable corporate management for steady growth.
• Implementation of IT initiatives such as VR technology for property viewing and electronic contracts.

Climate Goals & Targets

Environmental Challenges

• Increased procurement costs leading to higher selling prices in family apartment sales.
• Expansion of development areas.
• Securing business profits.
• Sustained high real estate investment enthusiasm.
• Intensified competition in land acquisition.
• Securing land and products.

Mitigation Strategies

• Developing high value-added properties that absorb procurement costs while appealing to customers.
• Strengthening sales capabilities to adapt to diverse sales products.
• Focusing on customer profits for long-term customer expansion.
• Expanding and strengthening stock businesses and securing stable earnings.
• Effective use of equity capital to improve shareholder value.
• Implementing selection and concentration of management resources for steady growth.

Supply Chain Management

Climate-Related Risks & Opportunities