ESG Management & KPI

Long-Term Vision

Becoming a Next-Generation Developer

We live in a time of profound change.
We are experiencing shifting demographics, growing diversity among personal values, ever-accelerating technological development, and more.
Amidst these uncertainties, a broad range of challenges to achieving social sustainability have emerged.

The Tokyo Tatemono Group understands that the role of developers must also change in fundamental ways.
We are committed to using our business to offer better solutions to society’s problems and bring our own growth as an enterprise to a higher level.
By doing so, we aim to be a good company for all our stakeholders.

Overview of ESG Management at the Tokyo Tatemono Group

The Tokyo Tatemono Group pursues an evolved approach to ESG management, proactively implementing sustainability measures throughout its operations. We strive to achieve a balance between solutions to social issues and corporate growth.

ESG management has grown ever-more important in recent years, amid intensifying changes in the business environment. To achieve sustained growth in this environment, the Group has come together under a Long-Term Vision and established a sustainability promotion framework.

Our Long-Term Vision covers the period from our current large-scale redevelopment projects to the year 2030, in which the completion of these projects overlaps with our targets for Sustainable Development Goals (SDGs).

Focus Factors in the External Environment

Intensified competition between cities internationally
Changes in the financial environment
Decrease in population and working-age citizens in Japan
Diversification of work styles and lifestyles
Intensification of competition to recruit human resources
Acceleration of digital technology advances and globalization
Rising ESG awareness
Greater geopolitical risks and natural disaster risks

Our Approach to the SDGs

The SDGs are international goals targeting 2030 that were adopted at the United Nations Summit. The SDGs comprise 17goals in a wide range of fields based on diverse social issues that affect developing and developed countries. Companies are expected to contribute to achieving the goals. Tokyo Tatemono Group takes this demand from society seriously. As such, we have incorporated the SDGs into our long-term vision and medium-term management plan and are actively implementing sustainability measures throughout the Group. As we operate our business as a developer, we will continue to be guided by the aim of realizing a sustainable society.

ESG Management Framework

The Tokyo Tatemono Group established the Sustainability Committee, chaired by our president and CEO, to pursue sustainability measures across the entire Group. We also established the Sustainability Promotion Committee as a subordinate organization responsible for preliminary discussions on matters for inclusion in the agenda.

The Sustainability Committee, like the Executive Committee and Internal Control Committee, is under the direct control of the president and CEO. It meets, in principle, twice a year to discuss important ESG-related issues, set targets, monitor progress, and evaluate achievements. Matters discussed by the Sustainability Committee are reported to and supervised by the Board of Directors as necessary.

The Sustainability Promotion Council conducts preliminary discussions on matters for inclusion in the agenda the Sustainability Committee, shares its decisions, and reports on the progress of sustainability measures.

ESG-related KPIs and Targets; Progress

The Tokyo Tatemono Group believes that advancing ESG management will help to maximize the medium- and long-term benefits for our stakeholders. We have set ESG-related KPIs and targets based on the material issues we identified in 2021. We have incorporated the action plans for achieving these targets into the business plans of each business division or business unit. The Sustainability Promotion Council monitors the status of these efforts, while the Sustainability Committee evaluates the achievement of the targets and manages progress using the PDCA cycle. Progress is reported to and supervised by the Board of Directors as necessary.

Material Issue KPIs and Targets

Environment-related

Material issues	Item	KPIs and Targets	Scope	Target year	Target value
Promoting a decarbonized society	Reduction in greenhouse gas emissions	Reduction in CO2 emissions	Scope 1, 2*¹	1) 2030 2) 2050	1)40% reduction compared to FY2019 2)Net zero
	Reduction in greenhouse gas emissions	Reduction in CO2 emissions	Scope 3*²	1) 2030 2) 2050	1)40% reduction compared to FY2019 2)Net zero
	Shift to renewable energy	Rate of shift to renewable energy for electricity consumed in our business activities	(1)Property owned in Commercial Properties Business (2)All business activities	(1) 2030 (2) 2050	(1) 40% (2) 100%
	Promotion of development of ZEB and ZEH*³	Rate of ZEB development in newly developed properties	Office buildings and logistics facilities	2030	In principle, 100%
	Promotion of development of ZEB and ZEH*³	Rate of ZEH development in newly developed properties	Condominiums for sale	2030	In principle, 100%
	Acquisition of Green Building Certification*⁴	Rate of acquisition of Green Building Certification in newly developed properties	Office buildings and logistics facilities	2030	In principle, 100%
Promoting a recycling-oriented society	Reduction of waste emissions	Reduction rate of waste emissions per unit	Long-term buildings*⁵	2030	20% reduction compared to FY2019
	Waste recycling promotion	Waste recycling rate	Long-term buildings*⁵	2030	90%
	Reduction of water consumption	Reduction rate of water consumption per unit	Long-term buildings*⁶	Each year	Reduction compared with previous fiscal year
	Promotion of use of recycled water	Percentage of newly developed properties with gray water*⁷treatment facilities	Office buildings with total floor area exceeding 30,000m²	2030	100%
Promoting a decarbonized society / Promoting a recycling-oriented society	Promotion of use of wood materials	Percentage of newly developed properties in which domestic timber and certified timber is used for common-area interiors and furniture	Long-term buildings*⁶and condominiums for sale or rent	2030	100%
			Residential Business	2030	100%
		Adoption of CLT for their core structural parts in newly developed properties	Residential Business	2023	-
	Collaboration and co-creation with customers	Percentage of tenants with whom we communicate about sustainability at least 4 times a year	Long-term buildings*⁶	Each year	100%
	Collaboration and co-creation with customers	Plan and implement sustainability measures through communication with residents	Residential Business	Each year	-

*1 Scope 1: Direct emissions that occur from the use of fuel by the Group, Scope 2: Indirect emissions that occur from the use of electricity and heat purchased by the Group.
*2 Scope 3: Indirect emissions from other business activities. Scope of coverage is Category 11 (use of products sold).
*3 Zero Energy Buildings (ZEB) is a building that aims to achieve an annual primary energy consumption balance of zero by maximizing energy independence through the use of advanced technologies that enable significant energy savings and the introduction of renewable energy.
Zero Energy Houses (ZEH) reduces total energy consumption through measures such as heat insulation and energy savings as well as generating energy through power generation to balance out the annual primary energy consumption to zero.
*4 Refers to (but is not limited to) DBJ Green Building certification, CASBEE building and BELS (Building Energy Saving Performance Labeling System) certification. *5 The scope is the main long-term buildings and commercial facilities for which we have substantial energy management rights and for which we have submitted plans for the reuse and reduction of waste materials.
*6 The scope is the main long-term buildings and commercial facilities for which we have substantial energy management rights.
*7 Recycled water is untreated water from rainwater and miscellaneous wastewater generated in buildings (e.g., wastewater from cooling towers and tenants' kitchens). It is reused for non-potable purposes such as toilet flushing and watering plants.

Society-related

Material issues	Item	KPIs and Targets	Scope	Target year	Target value
Improve employee growth and job satisfaction	Promotion of skills development	Average training time per employee	Tokyo Tatemono	Each year	15 hours or more
	Promotion of skills development	Career training participation rate	Tokyo Tatemono	Each year	100%
	Promotion of health management	Health checkup rate	Tokyo Tatemono	Each year	100%
		Health check reexamination rate	Tokyo Tatemono	Each year	100%
		Smoking rate	Tokyo Tatemono	2022	12% or less
Diversity & Inclusion	Respect for human rights	Dissemination of the Human Rights Policy	Tokyo Tatemono Group	Each year	-
	Work-life balance	Average annual paid leave utilization rate	Tokyo Tatemono	Each year	70% or more
	Work-life balance	Ratio of male employees taking parental leave	Tokyo Tatemono	2025	30% or more
	Promotion of diversity in our workforce	Ratio of women in management positions	Tokyo Tatemono	2030	10% or more
	Promotion of diversity in our workforce	Employment rate of persons with disabilities	Tokyo Tatemono	Each year	2.3% or more

Stakeholder Engagement

Tokyo Tatemono Group’s business activities are supportednot only by the customers who use our products and services,but also by many other stakeholders, including localcommunities, employees, shareholders, investors, and businesspartners. We believe that building long-term relationships oftrust with these stakeholders is essential to our businessactivities. By incorporating their input in various ways, we areworking to create value.

Stance on and Approach to Dialogue with Our Core Stakeholders

Stakeholders	Stance on Dialogue	Approach to Dialogue
Customers Building tenants, home buyers, users of services	We established various systems to incorporate customer feedback in our business activities. We use these systems to provide valuable products and services that offer safety and peace of mind, while continuously improving customer satisfaction.	Customer satisfaction surveys Brillia Owners Hotline (contact for home buyers) Various questionnaires Online inquiry forms, etc.
Local community Local community around properties, local governments, etc.	We work to increase local value and contribute to the local community through efforts that include community development and various community activities.	Dialogue with local residents and government bodies in the planning,development, and management of properties Volunteer activities, including clean-up activities Participation in local events and festivals Support for education and the arts Post-disaster reconstruction support, etc.
Employees	We work to create a satisfying workplace in which employees can experience personal growth. We strive to develop people who are trusted and capable of building the future.	Various training and reward systems Regular personnel interviews Dialogue with labor unions and co-hosting of events Individual consultation on child-rearing and nursing care support, etc.
Shareholders and investors	We aim to build long-term fiduciary relationships with our shareholders and investors and earn appropriate recognition through sincere and fair information disclosure and active communication.	IR information on our corporate website General Meeting of Shareholders Seminars for private investors IR meetings (Japan/overseas), etc.
Business partners Business operators related to planning, development, and property management, and service provision, etc.	We conduct fair and equal business dealings with our partners and strive for close communications to build even better relationships with these partners.	Verification of second- and third-tier subcontractors Verification via internal check sheet Regular meetings, etc.