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
Long-Term Vision

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
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%
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%
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
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
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
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.