Climate Change Data

LIFULL Co., Ltd.

Climate Impact & Sustainability Data (2017, 2020, 2021/9 (October 2020 to September 2021))

Reporting Period: 2017

Environmental Metrics

ESG Focus Areas

  • Altruism
  • Will-Centric Public Interest Capitalism
  • Stakeholder engagement (consumers, clients, employees, partners, shareholders, society, and the global environment)

Social Achievements

  • Launched “One P’s,” a social contribution activity support program, with 178 participants contributing 1,046 hours in its first year.

Governance Achievements

  • Established a corporate governance system designed to accelerate decision-making, ensure proper business execution, and increase efficiency and transparency.
  • Implemented a corporate officer system to enhance management soundness and efficiency.

Climate Goals & Targets

Long-term Goals:
  • Become the best life-event database and solution company in the world.
Medium-term Goals:
  • Achieve ¥50.0 billion in revenue by the fiscal year ending March 2020.
  • Achieve an EBITDA ratio of around 20% by the fiscal year ending March 2020.

Environmental Challenges

  • Creating services that resonate with people worldwide.
  • Establishing a globally trusted brand image.
  • Creating systems to support 100 LIFULL companies.
  • Accelerating development toward 100 LIFULL companies.
  • Using LIFULL HOME’S counter to build an omni-channel presence.
  • Handling new technology.
  • Handling cyber security.
  • Cultivating human resources.
Mitigation Strategies
  • Expanding the network of affiliated offices to 40,000.
  • Switching to a pay-per-inquiry pricing model.
  • Implementing detailed follow-ups with affiliates.
  • Incorporating overseas development companies into the Group (e.g., Vietnam Creative Consulting Co., Ltd.).
  • Establishing LIFULL Lab (formerly Littel Laboratory) for R&D.
  • Developing a robust security system.
  • Cultivating 100 presidents for 100 subsidiaries.
  • Improving hiring processes to ensure alignment with company values.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • 16th in the “Great Workplace in Japan” rankings (2017)
  • 4th place in Great Place to Work® Institute Japan’s Best Workplaces ranking (2017)
  • 3rd place in Great Place to Work® Institute Japan’s Best Workplaces ranking for women (2017)
  • Grand prize in 2017 from the Best Motivation Company Awards
  • Selected as a Competitive IT Strategy Company 2017
  • Selected as a Health and Productivity Management Organization 2017 (2 years running)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Sustainable development of society
  • Regional revitalization
  • Aging society
  • Employee well-being

Environmental Achievements

  • Initiatives to reduce water waste through partnerships with WOTA Co., Ltd.

Social Achievements

  • Launched LIFULL HOME’S ACTION FOR ALL to support individuals with limited housing choices
  • Implemented remote work options, resulting in reduced commuting and office costs and a 10% salary raise for full-time employees
  • Partnerships with local governments for regional revitalization, repurposing abandoned properties (Akiya)

Governance Achievements

  • Established a corporate governance system designed to accelerate decision-making and ensure proper execution of business while increasing efficiency and transparency
  • Implemented LIFULL Group Vision Achievement Score (LVAS) for performance-based remuneration of directors

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic impacting sales revenue across segments
  • Predicting the long-term effects of the pandemic on overseas business
  • Need to maintain profitability while managing costs
Mitigation Strategies
  • Provided discounts for realtors and free online tools during the state of emergency
  • Implemented cost controls and flexible spending measures
  • Revised forecasts and reorganized internal structure for post-pandemic operations
  • Adjusted dividend policy to account for fluctuating profits

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: PricewaterhouseCoopers Aarata LLC

Reporting Period: 2021/9 (October 2020 to September 2021)

Environmental Metrics

ESG Focus Areas

  • Residential Life
  • Regional Revitalization
  • Rapidly Aging Society
  • Promotion of Human Rights & DEI
  • Actions on Global Issues
  • Reducing our Effects on the Environment
  • Governance
  • Information Security

Environmental Achievements

  • Supporting companies and organizations working to resolve environmental issues through investments and donations (e.g., WOTA CORP. for water recycling, JEPLAN, INC. for chemical recycling).

Social Achievements

  • Launched FRIENDLY DOOR to help underprivileged groups find housing.
  • Added "Flood, Landslide and Earthquake Hazard Maps" to new detached house listings.
  • Established the "One P's Program" to support employee participation in social contribution activities.
  • Implemented unconscious bias training and international lunch initiatives to promote DEI.
  • Expanded services for seniors through LIFULL Jinsei Sekkei and Kaimono Connect.

Governance Achievements

  • Established a Risk Management Committee chaired by the Representative Director.
  • Implemented an Internal System DX Plan for 2025.
  • Regularly analyzes and evaluates the effectiveness of the Board of Directors.

Climate Goals & Targets

Long-term Goals:
  • Construction of a global platform.
Medium-term Goals:
  • Total number of registered properties in LIFULL HOME'S Akiya Bank: 100,000 by September 2025.
  • Expansion of total investments and loans through LIFULL Group financial products and services for regional revitalization by September 2025.
  • Involved Individuals in regional revitalization: 300,000 people by September 2025.
  • Achieve 15% CAGR and 20% operating income margin by September 2025.
Short-term Goals:
  • Expand property database to 30 million properties by September 2025.
  • Increase participation in FRIENDLY DOOR to 6,000 offices by September 2025.
  • 1 million monthly visits to "LIFULL Jinsei Sekkei" by September 2025.

Environmental Challenges

  • COVID-19 pandemic impacting sales revenue and leading to impairment losses.
  • Decreasing available properties in the Japanese real estate market.
  • Competition for IT personnel.
  • Risks associated with global expansion (laws, regulations, cultural differences).
  • Reliance on search engines for user acquisition.
  • Risks associated with M&A and investment.
  • Economic fluctuations impacting advertising strategies.
  • Risks from natural disasters.
  • Foreign exchange fluctuations.
  • Competition in the internet-based services market.
  • Rapid technological advancements.
Mitigation Strategies
  • Implemented remote work and support measures for clients.
  • Investing in core businesses and strengthening competitiveness.
  • Actively investing in recruitment, service development, and brand promotion.
  • Prioritizing business continuity while balancing investments overseas.
  • Strengthening unique customer attraction through branding and SEO.
  • Conducting extensive due diligence on acquisition targets.
  • Formulating a business continuity plan (BCP).
  • Continuously monitoring exchange rates.
  • Investing to strengthen service competitiveness and differentiation.
  • Actively utilizing advanced technology.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) International Integrated Reporting Framework