Contents

Message fromthe President

Sustainabillity
Sustainability

FeatureEnvironment

SocialGovernanceTokyo Tatemono Materialities(Critical Issues)
Materiality Identification Process

The Tokyo Tatemono Group has identified nine materialities(critical issues) as social issues to be solved through ourbusinesses. We provide three desirable social values throughTo meet society’s needs and achieve sustained development,

solving these issues.

the Tokyo Tatemono Group believes we must create value

To move forward with our sustainability measures acrossfor society continually through our businesses. Of all thethe group, we are also engaged in raising the level of ESG

social issues we solve through our businesses, we havemanagement and have set key themes for E (Environment), S

identified those of particular focus as materialities (critical(Society), and G (Governance).

issues). In the process of identifying materialities, werepeatedly examine various social issues in light of related
information resources, scrutinizing issues based on internaland external opinions.

▶ Information Resources Related to Social Issues

SDGs:
International goals for the years 2016–2030 as listed in the 2030
Agenda for Sustainable Development (adopted at the United
Nations Summit in September 2015)
Future Investment Strategy:

Future Investment Strategy 2018: Transforming into Society 5.0

and a Data-Driven Society. A summary of the strategic fields andmeasures on which the Japanese government will focus its efforts
Basic Policy on Urban Renaissance:
A summary of the Japanese government’s basic policy forrevitalizing cities
National Strategic Special Zones Policy:
A summary of the Japanese government’s zoning policy for national
strategic special zones▶ The 17 SDGs7

ContentsMessage fromthe PresidentSustainabillity
Sustainability

FeatureEnvironment

SocialGovernance▶Process for Identifying Materiality

Step 1
Examine and identify
social issues

Step 2
Evaluate identified
issues

To obtain a broad grasp get a broad grasp of the social issues relevant to our business, the Tokyo TatemonoGroup listed 35 social issues to study. Our list was influenced by international issues (the SDGs), issues uniqueto Japan (Future Investment Strategy), and issues unique to our industry (Basic Policy on Urban Renaissance,
National Strategic Special Zones Policy).

We evaluated 35 social issues and measured their relative importance. In making this evaluation, we
incorporated two perspectives: the scale of the social need (whether the issue requires a solution) and theaffinity of the issue with our business (whether the issue is closely concerned with our current business orsomething we may wish to deal with as a business in the future). To further clarify the relative importance ofissues, we assigned points based on four aspects.

・Evaluation perspectives

Scale of social need

Affinity with our business・Assigning point valuesto indicators

1Relationship With the Real EstateIndustry

2 Relationship With Our Businesses
3 Relationship With Our MediumTerm Business Plan
4 Director questionnaire results

Step 3these issues into three categories
based on their content andidentified them as Tokyo Tatemonomaterialities.

Affinity with our business

Map issues based on
evaluations

We mapped the issues to narrow
them down to those of relatively
great importance. We organized

Criticalissues(materialities)

Determining materialities(see P.9)

Scale of social need

Step 4
Establish and review
materiality-related
KPIs

We established KPIs to evaluate results and make concrete progress, ensuring we engage with and achieve ourmaterialities going forward. We also plan to review materialities every three to five years to respond to changes
in the business environment, etc.

8Contents

Message fromthe President

Sustainabillity
Sustainability

FeatureEnvironment

SocialGovernanceTokyo Tatemono Group Materialities
Critical Issues (Materialities)

Taget Social ValueContribution to SDGs

Strengthen and enhance city functions

Community developmentthat contributes to Tokyo as
an international city
attractive to all• P romote urban redevelopment, establish facilities for the public good,
create lively scenes through area management

Respond to globalization• Attract global enterprises, establish an environment that is welcoming toforeign visitors in Japan

Promote innovation• Promote open innovation, use data and information technology

Use and rebuild real estate stock• Promote reconstruction/redevelopment projects

Urban development
so all can live the lives
they pleaseRespond to a growing diversity of values and lifestyles• C reate and offer spaces that keep pace with changing times (changesin work styles, family structure, etc.)

Respond to declining birthrate and aging population• E stablish an environment that facilitates child rearing and environments
suitable for seniors

Harmonize with nature• Establish environments with greenery, maintain and protect ecosystems

Sustainable community
development considerate ofnature and the environment

Reduce environmental impact• U se resources such as energy and water efficiently, reduce waste,
promote recycling

Engage in natural disaster emergency response• R espond to natural disasters stemming from climate change, engage inearthquake countermeasures▶ Key themes to be addressed to raise ESG management

E: Environment

S: Society

G: Governance

Strengthen environmental
measures through our business

Secure and develop human resources
to support sustained growth•Reduce emissions of greenhousegases•Raise productivity by promoting work stylereformIncrease profitability and managementtransparency by strengthening
governance•Strengthen response to climatechange• Promote diversity•Strengthen supply chain management• Actively invest in and develop humanresources to expand the scope of ourbusiness•Bolster group synergies•Promote development of eco-friendly
real estate

Maintain and strengthen relationships
with stakeholders• Strengthen response to human rights issues• Offer products and services that respond tosocial change9•Strengthen risk management framework•Review cross-shareholdings policy•Increase transparency and effectiveness ofmanagement