Our Sustainability Sustainable management
Message from the Sustainability Committee

Three areas of materiality and initiatives of the Group
Committee manages and evaluates the progress of targets
set by the Board of Directors, while at the same timeoverseeing and monitoring sustainability policies, strategies,and actions. Its members are made up of the President andManaging Executive Officers of the Company.
The Sustainability Committee has five subcommittees
including Promotion of TCFD, Instilling Management
Philosophy and Strengthening Human Resources,
Creating A Rewarding Workplace, Social Contribution, andStrengthening Governance. It is responsible for proposing
and promoting specific activities for improvement, basedon various themes and perspectives. The members ofeach subcommittee are selected by the Executive Director
from among personnel at related departments. Each
subcommittee sets goals and plans for achieving thesegoals, and undertakes activities through a process of
repeated discussion and verification.

AZN aims to address ESG issues by realizing thestrategies outlined in its Third Medium-Term Management
Plan, which commenced in 2022. As a comprehensive
property consulting company that supports the enduring
development of our clients' valuable assets and businesses,
we are committed to realizing our management objectiveof "Contributing to the happiness of our clients through thesuccession, operation, and management of property" byproviding environmentally friendly products and services toresolve property-related concerns, as well as our efforts toreduce environmental impact in response to climate change.
As an advocate of 100-year property consulting,
AZN needs to build on the foundation of human resource
development, the source of our consulting services, toensure its own sustainable growth. Led by the Sustainability
Committee, we are committed to company-wide efforts
to realize a more sustainable society. The Sustainability

EEnvironment

Realizing adecarbonized,
recycling-basedsocietyS⚫ System for promoting sustainability
Board of Directors

SocialSustainability Committee

Promoting TCFD

Instilling management philosophy
and strengthening human resources

Creating a company
worth working forContributing to society

Stronger governance

SDGs

Quality of interpersonal skills

Quality of work styles

Quality of social contribution

Quality of protection

Realizing a societythat supports (thesuccess of) diversetalents

A process of identifying materiality
resource development and corporate governance. In
identifying materialities, we identify social issues likely toexert significant impact on our company and on society,based on the steps shown in the diagram below.

In 2020, the Group identified as high-priority issues
both project-related materialities such as reducing
the environmental impact of buildings, and business
infrastructure-related materialities such as human

Step 1

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Step 2

Step 3

Identify socialchallenges

Hold hearings
internally/externally andevaluate importanceAnalyze global social challenges/

Organize social challenges in terms

ESG trends and identify a wideof importance for external parties

range of environmental/social/economic issues(stakeholders) including ESG
investors and impact on AZNAoyama Zaisan Networks ｜ Integrated Report 2023

Internal
discussions &approvals

Business activities
with emphasis onpartnerships

Step 4
Identify materiality

Relevance tothe SDGs

2022–2023 Initiatives

GDiscuss and identify (finalize)
important challenges along twoGovernancespectrums: importance for theGroup and importance for ourstakeholders

Continuingimprovement ingovernanceWe recognize that addressing climate change is an important management issue that affects business
continuity. In particular, we view CO2 emissions from real estate-related business activities as a major risk
impacting climate change. To this end, we prioritize environmentally friendly initiatives for their ability tocontribute to enhancing asset value and resolving social issues.

Current initiatives⚫Switching to environmentally friendly facilities andclean energy-based electricity for Advantage Club⚫Endorsement and disclosure of therecommendations of the Task Force on Climaterelated Financial Disclosures (TCFD)

Future initiatives⚫Promoting water conservation and waste
reduction in conjunction with Advantage Clubtenants⚫Promoting the use of environmentallyfriendly materials, paints, equipment,
etc. by incorporating ESG perspectives
into our analysis of current situations
and recommendations for land use andconstruction support⚫Promoting buildings and urban developmentthat are considerate of water environment
conservation⚫Reducing waste and greenhouse gas
emissions

In addition to reinforcing employees’ own efforts to improve their interpersonal skills throughsocial contribution, the Group is committed to promoting diversity and establishing a pleasantwork environment for women and other diverse human resources, which is crucial to accepting
the diverse values of customers and resolving property issues.

Current initiatives⚫Instilling our management philosophy throughmorning meetings and corporate philosophy
training conducted by President Hasumi himself⚫Enhancing consultant training programs such as
ART system training and the Consulting EducationCenter⚫Promoting the use of parental leave⚫Expanding the contract employee system toallow employees to continue working after themandatory retirement age of 65⚫Donating a portion of profits to organizations
dedicated to eradicating pet euthanasia, promoting
subsidized meals for children, etc., and offering
support through volunteer activities by employees⚫Strengthening management training through theuse of external educational institutions⚫Implementing a health management declarationand 100% health checkup rate

Future initiatives⚫Expanding support for organizations dedicatedto eradicating pet euthanasia, promoting
subsidized meals for children, etc.
⚫Promoting advancement of women (increasing
the percentage of female employees
from approximately 30% to 40%, andthe percentage of female managers fromapproximately 19% to 30%)
⚫Maintaining the work environment⚫Enhance consultant training by using external
educational institutions⚫Training up management personnel⚫Further health management, including
promoting opportunities to exercise andoffering dietary guidance⚫Implementing volunteer activities for clean-ups
in the Minato City area

We regard local communities as a foundation for the life of all people including our clients, their families,
and the companies and employees they value, as well as a foundation for social and economic activities
and for leading happy lives. To ensure that our customers can live happily and that the value of their assets
in local communities continues to increase, we are committed to engaging with local communities.

Current initiatives⚫Not only contributing to welfare through land utilization for childcare facilities, seniors facilities, hospitals,
clinics, and other facilities of high public benefit, but also contributing to the revitalization of local
communities through real estate utilization, such as attracting commercial facilities.
⚫Creating mechanisms to give back to society by supporting the establishment of foundations⚫Contributing to urban development and regional job creation by collaborating with partners such as
public organizations, financial institutions, and companies on regional development projects
The Group recognizes corporate governance as an important management mechanism to maketransparent, fair, rapid, and decisive decisions. Director candidates are determined by the Nominating
Committee, executive compensation is deliberated upon by the Compensation Council, and theeffectiveness of the Board of Directors is evaluated. We have also established the Compliance Committee
consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, andexternal legal counsels (attorneys) as a structure to further compliance with laws and corporate ethics.

Current initiatives⚫Establishing appropriate managerial structures for the Group by instituting a Nominating Committee andCompensation Council to determine director candidates, as well as succession planning, etc.
⚫Operating the Compliance Committee and a fair and transparent Compensation Council to advancelegal complianceAoyama Zaisan Networks ｜ Integrated Report 2023

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