Tokyo Tatemono Group

Guidelines for Sustainable
Procurement Standards

0Introduction

We would like to take this opportunity to thank everyone for supporting our business activities
over the years.
We have established a long-term vision in which we commit to becoming a next-generation
developer by around 2030. Guided by this vision, we commit to sustainable corporate
development, balancing engagement in socioenvironmental issues with business growth.
Since we work with numerous business partners in our business activities, we must also workwith these partners in building a sustainable supply chain. In May 2021, we establishedSustainable Procurement Standards and started engaging with our business partners in promoting
sustainable procurement especially in terms of complying with laws and regulations, respecting
human rights, ensuring occupational health and safety, preventing corruption, and protecting theenvironment.
We have published these guidelines so that every business partner may have a clear idea of thespirit and content of the Sustainable Procurement Standards. These guidelines describe thebroader social context of why each standard of the Sustainable Procurement Standards must be
applied. It also outlines specific examples of how the standard can be applied in practice. We hopethat these guidelines will help you take the actions necessary for ensuring sustainableprocurement.

September 2023
Tokyo Tatemono Co., Ltd.

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Guidelines Structure
These guidelines provide the following information for each sustainable procurement standard:

Sustainable procurement standard

Explanation of the standard
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
Practical examples
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・“Explanation of the standard” provides the broader social context of why application of thestandard in question is requested. “Practical examples” outlines specific examples of ways to apply
the standard in practice. Remember, these examples are suggestive only. The actual actions you
should take will depend on the nature of your business and how you operate, along with the societal
trends of the time. Be sure to consider these factors when planning and implementing your actions.

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Sustainable Procurement Standards
Listed below are the individual standards making up the Sustainable Procurement Standards.

１． Observance of Laws and Regulations ............................................................................ 5
1-1． We will comply with the laws and regulations of the countries and regions (including countries'
regional laws and international laws) in which we engage in business activities. .............................5

２． Respect for Human Rights............................................................................................... 6
2-1． We will comply with and respect international standards concerning human rights and will
respect basic human rights. ............................................................................................................................6
2-2． We will not engage in discrimination or harassment on the basis of race, nationality, creed,gender, sexual orientation, age, social status, origin, etc. ........................................................................7

３． Assurance of Sound Labor Practices and Working Environments .............................. 8
3-1． We will assure freedom of association and collective bargaining rights. ............................................8
3-2． We will prevent and eliminate forced labor and child labor....................................................................8
3-3． We will not engage in discrimination in labor conditions on the basis of race, nationality, creed,gender, sexual orientation, age, social status, origin, etc. ..................................................................... 10
3-4． We will comply with laws and regulations that apply to minimum wages, overtime pay, employee
benefits, etc..................................................................................................................................................... 10
3-5． We will not allow long working hours or overwork in violation of law. .............................................. 11
3-6． We will strive to create a physically and mentally safe and healthy working environment for
employees. ....................................................................................................................................................... 12

４． Fair Business Activities ................................................................................................. 14
4-1． We will not engage in bribery or other acts of corruption. ................................................................... 14
4-2． We will comply with antimonopoly law and subcontracting law, and will not engage in unfair oranticompetitive business. ............................................................................................................................. 14
4-3． We will take a firm stance against antisocial influences and will never respond to illegal
demands........................................................................................................................................................... 15
4-4． We will not commit infringement of the intellectual property rights (patent rights, copyrights,
design rights, etc.) or the trade secrets of third parties. ....................................................................... 163

4-5． We will comply with laws concerning personal information, will properly handle personal
information, and will perform appropriate management to ensure that confidential information
obtained in the course of business is not leaked outside the company............................................. 16
4-6． We will protect the confidentiality of information related to whistleblower reports, will protect theanonymity of whistleblowers, and will eliminate any retaliation against whistleblowers. .............. 17

５． Assurance and Improvement of Safety and Quality ................................................... 19
5-1． We will establish appropriate quality control and quality assurance systems for the products andservices that we provide to customers, will endeavor to ensure and improve quality, and will
disclose accurate information without falsehood. .................................................................................. 19
5-2． Putting the standpoint of customers first, we will respond with sincerity to requests andcomplaints regarding the products and services we provide. ............................................................... 19

６． Environmental Considerations ...................................................................................... 20
6-1． We will promote energy conservation and will work to reduce emissions of greenhouse gases. 20
6-2． We will promote the 3Rs (Reduce, Reuse, Recycle), will work to effectively use natural resources
such as water and raw materials, and will strive to reduce, reuse, and recycle wastes. ............... 21
6-3． We will prevent atmospheric, water, soil, and other pollution, and will properly manage and treat
chemical substances (including those contained in our products). .................................................... 22
6-4． We will work toward the conservation of biodiversity and the reduction of impact on ecosystems.
........................................................................................................................................................................... 22
6-5． In the procurement of raw materials, we will strive to eliminate those that are collected or
produced through illegal means. ................................................................................................................. 23

７． Co-existing with Local Communities............................................................................ 25
7-1． We will strive to build, maintain, and improve positive relationships with local communities. .... 25
7-2． We will work to fully understand and respect the cultures and customs of local communities, andwill strive for coexistence and mutual prosperity with local communities. ....................................... 25

８． Formulation and Creation of BCP ................................................................................. 26
8-1． In preparation for disasters and unforeseen circumstances, we will formulate a business
continuity plan (BCP) and will work to create systems for its execution. .......................................... 26

９． Collaboration in the Supply Chain ................................................................................ 27
9-1． We will encourage our suppliers to understand and comply with the aims of these procurement
standards, and will urge necessary improvements so that business activities are carried out incompliance with these procurement standards. ..................................................................................... 27

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１． Observance of Laws and Regulations
1-1． We will comply with the laws and regulations of the countries and regions (including
countries' regional laws and international laws) in which we engage in businessactivities.

Explanation of the standard“Laws and regulations” include those that apply only in the territories where you operate. They
also include generally applicable laws and regulations that are relevant to your business regardlessof the country in which they usually apply. In conducting business, you must have identified andunderstood the relevant laws and regulations. Complying with relevant laws and regulations alsomeans respecting local cultural practices and norms.
This standard requires that you must adopt specific measures for ensuring compliance with therelevant laws and regulations.
Practical examples
・Develop structures and procedures for preventing violations of relevant laws and regulations(such as providing manuals and checklists for confirming compliance with laws and regulations,or involving your legal team check in your internal decision-making process).

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２． Respect for Human Rights
2-1． We will comply with and respect international standards concerning human rights andwill respect basic human rights.

Explanation of the standard
A company's business activities can potentially affect human rights. Companies therefore have a
responsibility to respect internationally recognized human rights in accordance with the UN’s
Guiding Principles on Business and Human Rights. This responsibility includes the responsibility torespect the rights set out in the International Bill of Human Rights(*1) as well as the principles
concerning the fundamental rights set out in the International Labor Organization's Declaration on
Fundamental Principles and Rights at Work.
The Guiding Principles on Business and Human Rights specifies measures that companies shouldtake to ensure that they respect human rights. These include complying with international humanrights standards, setting policies on human rights,(*2) carrying out human rights due diligence,(*3)
having a grievance mechanism,(*4) and engaging in dialogue with relevant stakeholders over thecompany’s human rights measures as a whole.
Tokyo Tatemono Group commits to such measures, as we are keenly aware of the importance ofrespecting the human rights of all our stakeholders and we believe that these measures should
underpin all our business activities. We request you to do the same.
*1 The International Bill of Human Rights comprises the Universal Declaration of Human
Rights, the International Covenant on Civil and Political Rights, and the International
Covenant on Economic, Social and Cultural Rights.
*2 Setting policies for human rights means that the company commits, both to internal andexternal stakeholders, to uphold its responsibility to respect human rights.
*3 Human rights due diligence is a process that includes identifying and assessing actual or
potential negative impacts on human rights that may occur within business activities,
preventing or mitigating these impacts, making decisions on the basis of impact
evaluations, incorporating impact evaluations into work processes, evaluating theeffectiveness of implemented measures, and explaining said initiatives to external
stakeholders.
*4 Companies are required to provide mechanisms for remedying the grievances ofindividuals or others who have been negatively impacted by the company’s businessactivities. The grievance mechanisms should meet criteria for ensuring their effectivenessin practice, including standards of impartiality and transparency. Alternatively, companies
can participate in external grievance mechanisms.
Practical examples
・Set policies regarding human rights through human rights policy.
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・Uncover human rights risks so that you understand how your business activities may negatively
affect human rights.
・Identify your human rights risks by evaluating the impact based on probability, importance, andother factors of each risk.
・Take the actions necessary to mitigate or prevent the negative impacts you have identified.
・To evaluate the effectiveness of these mitigating or preventive actions in practice, track theirperformance using metrics such as number of calls made through the hotline or hours of overtime
worked, and survey or interview stakeholders that may be impacted. Based on the findings, make
improvements as necessary.
・Assess the status in your supply chain by surveying or interviewing stakeholders who's humanrights might be negatively impacted by business activities.
・Publicly disclose the above activities on your corporate website, sustainability reports, or othermedia.
・Provide a mechanism for remediating negative impacts on human rights (for example, provide awhistleblower hotline).
・Once an negative impact on human rights is confirmed, remediate the negative impacts on humanrights.

2-2． We will not engage in discrimination or harassment on the basis of race, nationality,
creed, gender, sexual orientation, age, social status, origin, etc.

Explanation of the standard
The Universal Declaration of Human Rights states that all human beings are born free and equalin dignity and rights. To discriminate or harass because of the person’s race, nationality, creed,gender, sexual orientation, age, social status, or origin is to attack their individuality or inherent
dignity, and as such must never be tolerated.
Tokyo Tatemono Group is toughening its actions for preventing discrimination and harassment,
having identified this task as a human rights priority issue.
This standard requires that you never engage in, encourage, or abet discrimination andharassment in the course of your business activities, and that you adopt specific measures to ensurethat the ban on discrimination and harassment is complied with.
Practical examples
・Set internal rules clarifying that you forbid discrimination and harassment.
・Provide employees with training for preventing discrimination and harassment.
・Provide a means by which employees and stakeholders involved in your business activities canreport or raise concerns about discrimination or harassment (for example, provide a whistleblower
hotline).

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３． Assurance of Sound Labor Practices and Working Environments
3-1． We will assure freedom of association and collective bargaining rights.

Explanation of the standard
Working people have the right to form and join trade unions (freedom of association) and tonegotiate contracts and terms of employment with their employers through their unions (right tocollective bargaining), as well as the right not to do so. By exercising their freedom of association
and right to collective bargaining, employees create opportunities for constructive dialogue with
employers regarding the working environment and wage levels. One of the ILO's Core Labor
Standards (*1) is “freedom of association and the effective recognition of the right to collective
bargaining”.
This standard requires you to assure your employees’ freedom of association and right tocollective bargaining so that appropriate dialogue can occur between employees and employer.
*1 The ILO's Core Labor Standards are the most fundamental standards among theinternational labor standards (conventions and recommendations regarding labor)
adopted by the ILO (the International Labor Organization).
Practical examples
・Set internal rules clarifying that you assure freedom of association and the right to collective
bargaining. Alternatively, publish a statement affirming that your company endorses the ILO’s Core
Labor Standards, or equivalent international norms, regarding these matters in a policy, etc.
・Provide opportunities for employer–employee dialogue about wages, other terms of employment,
working environment, working practices, and similar topics.

3-2． We will prevent and eliminate forced labor and child labor.

Explanation of the standard
Forced labor
Forced labor refers to work or service which is exacted from any person under the menace of any
penalty (*1) and for which the person has not offered himself or herself voluntarily. Forcing a person
to work constitutes a violation of fundamental human rights in that it deprives that person of their
free will to work and their ability to choose their occupation.
Child laborChild labor refers to work performed by children younger than the minimum age for admission toemployment or work.(*2) It also refers to work that requires young persons under 18 years of age to8

work at night or to perform employment or work that is physically, mentally, or morally dangerous
and harmful. Child labor interferes with the children’s schooling opportunities and impedes theirhealthy development.
Both forced labor and child labor are banned internationally under two of the ILO’s Core Labor
Standards: the elimination of all forms of forced or compulsory labor, and the effective abolition ofchild labor.
This standard requires you to both eschew the use of forced labor and child labor and to avoid
encouraging or abetting them. As part of your human rights due diligence, you should audit the
products or materials you handle to make sure that no forced labor or child labor occurs in yourprocurement process.
*1 “Menace of any penalty” can mean a menace of confinement, a menace of physicalviolence, a menace to harm family members, or withhold wages.
*2 The ILO’s Convention Concerning Minimum Age for Admission to Employment (No. 138)
defines the minimum age as no less than the age of completion of compulsory schoolingand, in any case, no less than 15 years (although an exception is provided for developing
countries). In line with this convention, each country has specified in law a minimum age
for admission to employment within its territory.
Practical examples
・Set internal rules regarding prevention and elimination of forced labor and child labor. Alternatively,
publish a statement affirming that your company endorses the ILO’s Core Labor Standards, or
equivalent international norms, regarding these matters in a policy, etc.
・Never hold the original copy of an employee's personal ID, passport, or other official
documentation.
・Do not constrain, to an unreasonable extent, employees' behavior outside of work hours.
・If any of your suppliers employ individuals under Technical Intern Training Program, audit these
suppliers regularly to ascertain the terms of employment and working environment in which theinterns work.
・To avoid child labor, check the candidate's official documentation to determine the person's age
before hiring the person.
・When employing a young person under 18 years of age, safeguard each of those employees asappropriate in accordance with laws and regulations (for example, restrict their exposure todangerous and harmful work and forbid them from working late night).

93-3． We will not engage in discrimination in labor conditions on the basis of race, nationality,
creed, gender, sexual orientation, age, social status, origin, etc.

Explanation of the standard“Discrimination in labor conditions” means disadvantaging an employee in terms of recruitment
or hiring, redeployment or assignment of work, promotion or demotion, training, employee benefits,changes to job role or form of employment, encouragement to resign, mandatory retirement age,layoff, employment contract renewal, or other matters, on the grounds of the employee’s race,
nationality, creed, gender, sexual orientation, age, social status, origin, or any other attribute thathas no bearing upon the work or service the employee is required to perform. Such discrimination
is banned internationally under one of the ILO’s Core Labor Standards: the elimination of
discrimination in respect of employment and occupation.
This standard requires that you never discriminate in labor conditions on reasons that have no
bearing upon the work or service the employee is required to perform.
Practical examples
・Set internal rules clarifying that you forbid all forms of discrimination in labor conditions.
Alternatively, publish a statement affirming that your company endorses the ILO’s Core Labor
Standard, or equivalent international norm, regarding this matter in a policy, etc.
・Provide HR staff and department managers involved in recruitment, reassignment, andperformance appraisal with training for preventing all forms of discrimination in labor conditions.

3-4． We will comply with laws and regulations that apply to minimum wages, overtime pay,
employee benefits, etc.

Explanation of the standard
Minimum wage
Complying with laws and regulations concerning minimum wage is necessary to ensure that
employees enjoy the security of a living wage. Regarding minimum wage, because of the ILO’s
Convention Concerning Minimum Wage Fixing, with Special Reference to Developing Countries (No.
131), an international labor standard, it has become internationally standard to establish a system
whereby minimum wages can be fixed and adjusted from time to time; minimum wages specified ineach country’s law must be obeyed. Japan’s Minimum Wage Act specifies regionally specificminimum wages.
Overtime pay
Unpaid overtime (known in Japanese English as “service overtime”) is a hotbed for long working
hours and overwork, so companies should keep track of employees’ work hours, days off, and latenight work and ensure that overtime is compensated. It goes without saying that you must10

compensate employees for the hours they work in excess of the working hours specified in youremployment rules. Besides this, you must pay extra compensation to employees whose work hours
exceed the mandatory limit specified by labor laws.
Employee benefits
A system of mandatory employee benefits (known as “legal welfare” in Japan) is crucial inensuring a sound working environment and keeping employees working with peace of mind.
Employers are required employers to provide employees with health insurance, welfare pension
insurance, worker’s accident insurance, nursing care insurance, and child and childcare
contributions.
This standard requires that you provide your employees with an adequate workplace incompliance with laws and regulations.
Practical examples
・Set internal rules clarifying the details about employees’ wages, overtime pay, and employee
benefits, and make sure employees understand them.
・Check the minimum wage for your region and confirm that the wages you pay your employees are
no less than this amount.
・Conduct an internal audit or other means to confirm that employees are being compensatedproperly (including for overtime).

3-5． We will not allow long working hours or overwork in violation of law.

Explanation of the standard
When employees work too long or too hard, they can become exhausted and damage their physicaland mental health. Fatigue makes employees less productive in their work. It also increases the risk
for occupational accidents and other dangers.
Japan’s Labor Standards Act specifies a limit on working hours, prohibiting work hours fromexceeding this limit. It also requires employers to provide adequate rest times in proportion to
working hours.
This standard requires that you never let your employees work in excess of the legal limit for theircountry or region and that you provide adequate rest times. It also requires that you manage youremployees’ working time and rest time properly and provide employees with paid leave as required
under the law applicable in their country to provide measures to prevent adverse health effects fromoverwork and care for employees’ mental health, etc.
Practical examples
・Set internal rules clarifying the details about employees’ working time and leave.
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・Provide a system for precise and accurate monitoring of employees’ work time (for example, equip
your office with an access control system that automatically records work time, use a login/logout
monitoring for work computers, or use a time card system).
・Use login/logout monitoring program for work computers to issue alerts when an employee has
exceeded their weekly working time limit (the alerts should be issued to the employee in question
and to his or her manager) or take similar actions to prevent employees from working too long or
too hard.
・Provide HR staff and department managers involved in managing employees’ working time withtraining for preventing employees working too long or too hard.
・Depending on the size of the company, make it a requirement that employees who have worked
in excess of the specified working time limit must see an occupational physician.
・Continuously communicate to employees the importance of taking paid leave in order to cultivatea climate in which employees feel uninhibited about taking paid leave.

3-6． We will strive to create a physically and mentally safe and healthy working environment
for employees.

Explanation of the standard
Employees constitute a vital type of capital for a company. Employees are more likely to stayphysically and mentally healthy and fulfill their potential if the company creates a physically andmentally safe and healthy working environment.
ILO’s Core Labor Standards ask for “a safe and healthy working environment”. Japan’s Industrial
Safety and Health Act stipulates that employers have a duty to provide a physically and mentallysafe and healthy working environment and to provide employee health screenings.
This standard requires that you create a physically and mentally safe and healthy working
environment in compliance with laws and regulations related to occupational health and safety.
Practical examples
・Set internal rules clarifying that your organization provides a physically and mentally safe andhealthy working environment. Alternatively, publish a statement affirming that your company
endorses the ILO’s Core Labor Standard, or an equivalent international norm, regarding this matterin a policy, etc.
・Appoint a health and safety supervisor in accordance with the Industrial Safety and Health Act.
・Adopt an occupational health and safety management system verified to standards such as ISO
45001, COHSMS, or OSHMS,(*1) or adopt your own health and safety management system.
・Use a risk assessment(*2) to guide your efforts to provide a healthy and safe working environment
in your offices and construction sites.
・Alert employees to the dangers and hazards identified in your risk assessment and to your risk
mitigation measures.
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・Require all employees to attend health screenings and notify employees of the results of thesescreenings.
*1 An occupational health and safety management system refers to voluntarily establishedsystem for integrating legislation on occupational safety and safety into businesspractices. This system uses a PDCA cycle to ensure that the legislation is integrated in asystematic manner, with continuous improvement.
*2 A risk assessment involves a series of processes. First, you identify dangers and hazards
in your offices or construction sites. You then evaluate the risk of occupational accidents
and arrange these risks in order of priority. Finally, you develop and implement actions for
mitigating the identified risks.

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４． Fair Business Activities
4-1． We will not engage in bribery or other acts of corruption.

Explanation of the standard
It is unacceptable to bribe public officials or other, in the expectation of gaining an unfair businessadvantage. It is also unacceptable to give or receive hospitality or gifts in excess of what is
considered sound business practice or what is broadly accepted, regardless of whether the otherparty represents a public-sector organization or private-sector organization. Such actions preventthe continuation of fair business activities, impede free competition, and betray the expectations
and trust of consumers.
Combating bribery and other forms of corruption falls under one of the four areas of the UN Global
Compact (these areas are human rights, labor, environment, and anti-corruption). Companies are
therefore expected to make sustained efforts to prevent corruption.
Japan‘s Penal Code criminalizes the act of bribing public officials or other, in the expectation ofgaining an unfair business advantage. Japan’s Unfair Competition Prevention Act bans the bribingof foreign public officials or other. Japan’s Political Funds Control Act imposes restrictions onpolitical donations. Besides this, many companies, as part of their corporate governance, have set
rules prohibiting the giving and receiving of hospitality and gifts in excess of what is consideredsound business practice or what is broadly accepted, regardless of whether the other party
represents a public-sector organization or private-sector organization.
This standard requires that you adopt specific measures to ensure that you never engage inbribery or other forms of corruption, and that you never encourage or abet such practices.
Practical examples
・Set internal rules clarifying that you forbid bribery and other forms of corruption.
・Develop structures and procedures for preventing bribery and other forms of corruption (forexample, as part of your internal decision-making process, manage expenditure on hospitality andgifts for public officials).
・Provide employees with training for preventing bribery and other forms of corruption.

4-2． We will comply with antimonopoly law and subcontracting law, and will not engage inunfair or anticompetitive business.

Explanation of the standard
Companies compete with one another in developing and marketing innovative products andservices to attract customers. Customers, for their part, choose the products and services that meettheir needs in order to feel satisfied or to make a profit. Fair and free competition in such a market
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fosters a sound market system. By contrast, when companies engage in, or when they participate
or encourage unfair or anti-competitive business practices, they hinder the market system fromoperating effectively.
In Japan, legislation such as the Antimonopoly Act and The Subcontract Act prohibit privatemonopoly, unfair trade restrictions (such as engaging in cartels or bid-rigging), and illicit trading
practices (such as dumping and abusing of a dominant bargaining position).
This standard requires that you adopt specific measures to prevent unfair or anti-competitive
business.
Practical examples
・Set internal rules clarifying that you forbid unfair or anti-competitive business practices.
・Develop structures and procedures for preventing unfair or anti-competitive business practices(for example, involve your legal team in your internal decision-making process).
・Provide employees with training for preventing unfair or anti-competitive business practices.

4-3． We will take a firm stance against antisocial influences and will never respond to illegal
demands.

Explanation of the standard
Organized crime groups or other, known in Japan as “antisocial influences” (or antisocial forces),threaten public safety and public order. They also impede the healthy development of commerce byengaging in activities such as extorting companies or employees of the targeted companies. If yourcompany has any ties, direct or indirect, with antisocial forces, you might be deemed to be part ofthat antisocial force or to be complicit in their activities.
In Japan, local governments have established ordinances requiring civic and private organizations
to affirm that they shun all ties with antisocial influences. At a national level, the Act on Preventionof Transfer of Criminal Proceeds stipulates the prevention of involvement in money laundering bycompanies dealing financial instruments or real estate, etc.
This standard requires that you adopt specific measures to shun all ties with antisocial influences.
Practical examples
・Set internal rules clarifying that you shun all ties with antisocial forces.
・Develop structures and procedures for shunning all ties with antisocial influences (for example,
as part of your internal decision-making process, you should ensure that the party you will
potentially trade with does not represent an antisocial influence).
・Include a clause in your contractual terms and contract templates for business activities
stipulating the requirement to shun all ties with antisocial influences(*1).
・Provide employees with training for shunning all ties with antisocial influences.

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*1 Clause stipulating the requirement to shun all ties with antisocial influences. This meansa clause whereby the counterparty affirms that it does not represent and has no ties withan antisocial influence, and whereby the contract may be canceled if the counterparty isfound to have violated the clause.

4-4． We will not commit infringement of the intellectual property rights (patent rights,
copyrights, design rights, etc.) or the trade secrets of third parties.

Explanation of the standardIntellectual property rights (including patent rights, copyrights, and design rights) and trade
secrets are rights or property belonging to the creator or acquirer. Using or acquiring them without
the proper authorization would therefore constitute an infringement of the party’s rights or property.
In Japan, intellectual property rights such as patent rights, copyrights, and design rights areprotected by legislation such as the Patent Act, Copyright Act, and Design Act. Trade secrets areprotected by legislation such as the Unfair Competition Prevention Act.
This standard requires that you adopt specific measures to avoid any action that infringes
intellectual property rights or trade secrets of third parties.
Practical examples
・Set internal rules clarifying that you forbid any action that infringes intellectual property rights ortrade secrets of third parties.
・Develop structures and procedures for preventing any action that infringes intellectual property
rights or trade secrets of third parties (for example, as part of your internal decision-making
process, confirm that the business activity in question would never infringe intellectual property
rights, and create a department dedicated to managing risks related to intellectual property rights
and trade secrets).
・Provide employees with training designed to prevent any action that infringes intellectual property
rights or trade secrets of third parties.

4-5． We will comply with laws concerning personal information, will properly handle
personal information, and will perform appropriate management to ensure that
confidential information obtained in the course of business is not leaked outside thecompany.

Explanation of the standard
Customers’ personal information and business partners’ confidential information can provide
valuable insights for guiding business activities. However, data breaches can violate the rights andinterests of the customer or business partner in question; the individual or company might be16

exposed to danger or sustain damage as a result of the breach. When customers provide theirpersonal information, or when business partners provide their confidential information, they are
trusting the company to adequately safeguard that information. A company that fails to do so willlose the trust of the customer or business partner.
In Japan, the use and handling of personal information is provided for in the Act on the Protectionof Personal Information.
The standard requires that you adopt specific measures to safeguard personal information andconfidential information obtained in the course of business and prevent data breaches in compliancewith the Act on the Protection of Personal Information.
Practical examples
・Develop structures and procedures for preventing breaches of personal information andconfidential information. For example, create a department dedicated to managing information
security.
・Set internal rules clarifying the proper procedures for obtaining and handling personal informationand confidential information.
・Develop structures and procedures for regularly monitoring whether personal information andconfidential information is being obtained and handled properly (for example, include
management of personal information and confidential information in the scope of internal audits).
・Provide employees with training to inform them of the Act on the Protection of Personal
Information and ensure that they obtain and handle personal information and confidential
information properly.

4-6． We will protect the confidentiality of information related to whistleblower reports, willprotect the anonymity of whistleblowers, and will eliminate any retaliation against
whistleblowers.

Explanation of the standard
Corporate misconduct (illegal acts, human rights violations, discrimination or harassment, bribery
or other forms of corruption), as well as damaging the company’s credibility, can also endanger
customers and threaten their psychological security. To ensure that misconduct is detected early or
prevent it from happening in the first place, companies should provide employees with awhistleblowing system through which they can report suspected misconduct to internal or external
contacts. Companies should also ensure that employees feel uninhibited about using the system.
In Japan, the Whistleblower Protection Act requires companies employing at least 301 employees
to provide an internal whistleblowing hotline, and companies employing fewer than 301 employees
to pursue efforts to provide one.
This standard requires that you adopt specific measures for the prevention or early detection oflegal violations and other misconduct, including providing an internal whistleblower hotline that17

employees can use with the assurance that their anonymity will be safeguarded.
Practical examples
・Provide an internal whistleblowing hotline that employees can use to report suspected
misconduct in the company or to raise concerns or seek advice and inform employees about thesystem.
・Set internal rules clarifying that the information employees share on the hotline will be treated inconfidence, that whistleblowers’ anonymity will be safeguarded, and there will never be retribution
for whistleblowing.

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５． Assurance and Improvement of Safety and Quality
5-1． We will establish appropriate quality control and quality assurance systems for the
products and services that we provide to customers, will endeavor to ensure andimprove quality, and will disclose accurate information without falsehood.
5-2． Putting the standpoint of customers first, we will respond with sincerity to requests
and complaints regarding the products and services we provide.

Explanation of the standard
Companies should always strive to ensure the safety and quality of their products and services
and to improve their quality standards, so that customers have the choice to choose a better productor service in confidence. Companies should also be able to communicate accurate information about
their products and services when necessary, and handle customer inquiries and grievances sincerely.
If companies neglect to do so, customers may lose confidence in the product or service in question
or in the company itself, or even sustain unexpected damage.
Tokyo Tatemono Group strives to communicate accurate information about its products andservices. To improve customer satisfaction, we have introduced procedures for incorporating
customer feedback into our business activities and we continually strive to raise the bar on quality
from a customer standpoint.
This standard requires you to adopt specific measures to maintain or improve quality standards,
to ensure that the information you communicate is accurate (free of any false or inaccurate
information), and to handle all customer inquiries and complaints sincerely.
Practical examples
・Adopt a quality management system verified to standards such as ISO 9001, or adopt your own
quality management system.
・Provide a means by a customer contact system whereby customers can bring inquiries orcomplaints about a product or service.
・Regularly monitor customer evaluations of products and services and incorporate the findings into
your business activities.
・Educate and train employees in maintaining and improving the safety and quality of products andservices, in disclose accurate information, and in handling customer inquiries and complaints
sincerely.

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６． Environmental Considerations
6-1． We will promote energy conservation and will work to reduce emissions of greenhousegases.

Explanation of the standard
Business activities are energy-intensive, and as such emit high levels of greenhouse gases.
Greenhouse gases cause global warming. Global warming increases the frequency and intensity ofabnormal weather, severely impacting people’s lives and the business activities of companies. To
combat global warming, companies must make sustained efforts to reduce their greenhouse gas
emissions, such as saving energy and switching to renewable sources of energy.
International agreements have specified targets for reducing greenhouse gas emissions based onnational and international commitments. These include the Paris Agreement adopted at the 2015
UN Climate Change Conference (COP21), (*1) the Glasgow Climate Pact adopted at the 2021 UN
Climate Change Conference (COP26), (*2) and Japan’s 2050 carbon neutrality pledge. (*3)
As with other industries, the real-estate industry also has a responsibility to reduce greenhousegas emissions from its business activities. Tokyo Tatemono Group takes this responsibility seriously
and prioritizes action to reduce its greenhouse gas emissions.
To reduce greenhouse gas emissions across our supply chain, we require you to adopt specificmeasures and make sustained efforts to save energy and reduce their greenhouse gas emissions.
*1 The Paris Agreement adopted at the 2015 UN Climate Change Conference (COP21) is aninternational framework for combating climate change. The agreement committed toholding the increase in the global average temperature to well below 2°C above preindustrial levels (the 2°C goal) and to pursuing efforts to limit the temperature increase
to 1.5°C above pre-industrial levels.
*2 The Glasgow Climate Pact is the final document adopted by at the 2021 UN Climate
Change Conference (COP26). The agreement committed the parties to making additional
efforts to limit temperature increase to 1.5°C.
*3 In 2020, the Government of Japan announced its 2050 Carbon Neutral Goal, committing toachieve carbon neutrality (net-zero greenhouse gas emissions) by 2050. In 2021, theGovernment of Japan has also set a medium-term emissions target for the year ending
March 2031. By that year, it aims to have reduced greenhouse gas emissions by 46% fromthe level in the year ended March 2014. The government subsequently committed to aneven higher target of a 50% reduction.
Practical examples
・Adopt specific measures to reduce your greenhouse gas emissions (for example, equip yourworkplaces with energy-efficient equipment and switch to renewable energy sources).
・Regularly monitor greenhouse gas emissions from sources you own or control (Scopes 1 and
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2).(*1)
・Regularly monitor greenhouse gas emissions from your supply chain (Scope 3).(*1)
・Set medium-term targets for reducing your greenhouse gas emissions from sources you own orcontrol (Scopes 1 and 2).
・Set medium-term targets for reducing greenhouse gas emissions at all three scopes (i.e. fromyour supply chain as well as from sources you own or control).
・Commit to achieving net-zero emissions at all three scopes by 2050 (this will be your long-termtarget).
・As a means to minimize your negative environmental impact, adopt an environmental
management system verified to standards such as ISO 14001 or adopt your own environmental
management system and make continuous improvement through a PDCA cycle.
*1 Scope 1 emissions are greenhouse gas emissions generated by fuel consumption in assets
you own or control. Scope 2 emissions are those generated by consuming purchased
electricity, or heat at assets you own or control. Scope 3 emissions are those generated in
assets that you do not own or control but that you indirectly affect.

6-2． We will promote the 3Rs (Reduce, Reuse, Recycle), will work to effectively use natural
resources such as water and raw materials, and will strive to reduce, reuse, and recycle
wastes.

Explanation of the standard
Resources used in business activities are limited and are exhaustible. Under a linear economy,
one that is based on mass production, mass consumption, and mass disposal, such resources may
eventually run out. It is therefore essential to transition from a linear economy to a circular economy,
one that practices the 3Rs (Reduce, Reuse, Recycle) to reduce wasteful use of resources and ensurethat the limited resources are used effectively.
Tokyo Tatemono Group places priority on integrating the 3Rs across the building lifecycle, fromplanning and design to construction, operation, management, and demolition, and on using water,materials, and other natural resources effectively.
We require you to integrate the 3Rs in your business activities—to reduce waste, reuse and recycle
resources, and use natural resources effectively.
Practical examples
・Promote the 3Rs in your business activities (for example, consider the 3Rs as part of your criteria
when purchasing products and developing your own products and services).
・Save water and use recycled water.
・Quantify the amount of waste you generate, the amount of waste you recycle, the amount of water
you use, and the amount of water you recycle in business activities.
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・Set quantitative targets for reducing waste generated by business activities and recycling waste.
・Set quantitative targets for reducing water used in business activities and using recycled water.

6-3． We will prevent atmospheric, water, soil, and other pollution, and will properly manage
and treat chemical substances (including those contained in our products).

Explanation of the standard
When business activities pollute the air, water, or soil, or generate hazardous chemicals, they can
endanger human health, living environments, and ecosystems. Under Japan's Basic Act on theEnvironment, the government sets environmental quality standards that should be satisfied in orderto safeguard human health and living environments. Japan also has a range of legislation designed
to prevent atmospheric, water, and soil pollution, and to limit the generation of hazardous chemicals
and ensure that such chemicals are managed and treated properly.
Tokyo Tatemono Group recognizes the need to prevent atmospheric, water, and soil pollution, andto restrict the generation of, and ensure the proper management and treatment of, hazardous
chemicals across the building lifecycle, from planning and design to construction, operation,
management, and demolition.
We require you to adopt specific measures to prevent atmospheric, water, and soil pollution, torestrict the generation of hazardous chemicals, and to ensure that such chemicals are properly
managed and treated.
Practical examples
・Set internal rules clarifying the need to prevent atmospheric, water, and soil pollution in yourbusiness activities.
・Identify contaminants that you may generate in your business activities, quantify the amounts
that are generated, and restrict their generation.
・Set internal rules clarifying how to properly manage and treat hazardous chemicals (including
chemicals in products).
・Identify all of the hazardous chemicals generated in your business activities (including chemicals
in products), quantify the category-specific amounts, and restrict their generation.

6-4． We will work toward the conservation of biodiversity and the reduction of impact on
ecosystems.

Explanation of the standard
Business activities can affect biodiversity and ecosystems. The impacts can occur around offices,plants, and the sites of development projects. They can also occur in the process of procuring

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materials and transporting them. When biodiversity and ecosystems are lost, we can no longer enjoy
the benefits they brought us (such as providing sources of food, materials, and fuel, regulatingclimate, and mitigating natural disasters).
Tokyo Tatemono Group’s property development activities are closely interwoven with local
ecosystems and habitats. As such, we place importance on monitoring the direct impacts aroundour offices, plants, and the sites of our development projects, monitoring the indirect impacts fromprocurement and transportation of materials, and taking the necessary action to protect biodiversity
and reduce our impacts on ecosystems.
We require you to pursue efforts to avoid or mitigate the negative impacts of their businessactivities on biodiversity and ecosystems.
Practical examples
・Think about how you can contribute, through your business activities, to the protection of
biodiversity and ecosystems, and then put your ideas into action.
・Evaluate the negative impacts of your business activities upon biodiversity and ecosystems andincorporate the findings into your business activities.
・Endorse or join initiatives for protecting biodiversity and ecosystems (such as the Declaration of
Biodiversity by Keidanren and the Taskforce on Nature-related Financial Disclosures) and takeaction aligned with these initiatives.

6-5． In the procurement of raw materials, we will strive to eliminate those that are collectedor produced through illegal means.

Explanation of the standard
When companies use raw materials that were made with forced or child labor or that wereextracted or produced by illegal means, they are abetting human rights violations and may also becontributing to environmental destruction such as deforestation or depletion of other natural
resources.
Tokyo Tatemono Group recognizes the importance of preventing human rights violation and of
reducing negative environmental impacts. As such, we use materials that have been certified by acertifying body (for example, timber certified by the Forest Stewardship Council) and use recycledmaterials.
We want to prevent human rights violations in the procurement of raw materials and reduce
negative environmental impacts right across our entire supply chain. To that end, we require you to
avoid the use of raw materials extracted or produced by illegal means and to be conscious oftraceability in your business activities.
Practical examples
・In your procurement activities, give preference to environmentally-friendly raw materials such as
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materials that have been certified by a certifying body (for example, timber certified by the Forest
Stewardship Council) and recycled materials.
・Ensure the traceability of the raw materials you use.
・Place a rule to include in your specifications and contract template stipulations on the non-use of
raw materials that were extracted or produced by illegal means.

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７． Co-existing with Local Communities
7-1． We will strive to build, maintain, and improve positive relationships with local
communities.
7-2． We will work to fully understand and respect the cultures and customs of local
communities, and will strive for coexistence and mutual prosperity with local
communities.

Explanation of the standard
A company can only conduct business with the cooperation and understanding of communities
affected by business activities, including those around offices, plants, and project sites. If
companies want to contribute to local economic development and increase the value of a local
community, they must communicate with local stakeholders in an effort to understand thecommunity’s cultural values and customs the needs specific to the area, and must conduct businessin a way that is respectful toward the same.
Tokyo Tatemono Group, as a member of the local communities in which we operate, works withlocal residents, NPOs, public officials, and other stakeholders to contribute toward creating aprosperous community.
We require you to work toward mutual prosperity with local stakeholders by building mutual
understanding and good relationship with local communities affected by your business activities
and by adopting specific measures to aid local development and improve the value of the area.
Practical examples
・Evaluate how your business activities might be negatively affecting local communities (negativeenvironmental impacts, noise, vibration, destruction or loss of scenic vistas, destruction ofcultures and communities, increase in traffic, increase in crime) and take necessary action toaddress these impacts.
・In order to incorporate the feedback into your business activities, provide opportunities for
dialogue with local communities, government administration, NPOs, NGOs, and research
institutes, or provide a means for local communities to communicate their opinions or grievances
to gather feedback from local communities.
・Conduct activities in collaboration with local communities or participate in community-led
activities.

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８． Formulation and Creation of BCP
8-1． In preparation for disasters and unforeseen circumstances, we will formulate abusiness continuity plan (BCP) and will work to create systems for its execution.

Explanation of the standard
Unforeseen emergencies such as natural hazards, mega-disasters, and terror attacks can severely
affect a company’s assets and labor force. Companies should prepare, in advance of any emergency,
a business continuity plan (BCP) outlining emergency protocols and other actions to take when an
emergency does occur in order to minimize damage to company assets and labor force and enable
the continuity or early recovery of its core business operations. To ensure the BCP works effectively,
companies should conduct regular emergency drills and continuously improve the BCP.
Tokyo Tatemono Group, as a real-estate company, provides services that are closely interwoven
with the businesses and lives of numerous customers. As such, we have an important responsibility
to build strong disaster readiness and disaster resilience across our supply chain.
This standard requires you to formulate a BCP and take measures to ensure business continuity
in case of disaster or an unexpected emergency.
Practical examples
・Formulate a BCP in preparation for unexpected emergencies.
・Conduct regular drills based on your BCP.
・Evaluate your BCP based on drill performance and other factors and make improvements asnecessary.

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９． Collaboration in the Supply Chain
9-1． We will encourage our suppliers to understand and comply with the aims of theseprocurement standards, and will urge necessary improvements so that businessactivities are carried out in compliance with these procurement standards.

Explanation of the standard
In conducting their business, companies work with numerous business partners. Both thecompany and its business partners create socio-economic impacts through their business activities.
Though the company might comply with its sustainable procurement standards, if any of its business
partners fail to do so, activities of the company could be adversely affected. For example, businessactivities might be discontinued or suspended, or negatively affect the reputation of products orservices.
Tokyo Tatemono Group recognizes the need to build a sustainable supply chain. We work to ensuresustainable procurement, especially in terms of complying with laws and regulations, respecting
human rights, ensuring occupational health and safety, preventing corruption, and protecting theenvironment.
We want our sustainable procurement standards to be observed across our supply chain. To that
end, we require you to communicate and engage with your own business partners so they
understand and comply with the standards.
Practical examples
・Engage with your suppliers as necessary to ensure that they understand and comply with thesestandards.
・Identify issues in your suppliers' sustainability initiatives and, if necessary, take action to improvethem.
・Applying the above initiative to your tier 2 suppliers and downstream.

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