Aoyama Zaisan Networks’ Materiality

Vital (extremely important)

We are committed to solutions for the property-related problems of asset owners and corporate owners andfurthermore for social challenges, under two management objectives: (1) “We seek to contribute to the happiness of
our customers through the succession, operation and management of property,” and (2) “We seek to ensure both thephysical and mental well-being of the members whom we work with.” With these needs growing year after year, wecalculate our business opportunities should be expanded further down the road. On the other hand, environmental andsocial risks are increasingly escalating; we should conduct our business while incorporating non-financial issues inlight of ESG in management strategies and valuing a harmony with stakeholders, so that we can continue sustainablegrowth.

Identified materiality(categorized by E/S/G)

Importance for stakeholders

Identifying materiality (key issues)

Importance for AZNIn FY2020, as our priority issues, we identified materiality associated with business such as the “reduction ofenvironmental load of buildings” and materiality associated with business foundation such as “human resourcedevelopment” and “corporate governance.”

Environment

A process of identifying materiality
As for materiality, we identify social challenges with asignificant impact on society as well as on us, by working
through the steps shown below.
In Step 2, Ms. Emi Matsukawa (Chair/Director of Collective
Action Institute, outside Advisor for PRONEXUS Inc.,
and Worldwide Senior Manager of CDP, an international

Step 1

Step 2

Identify socialchallenges

Hold hearings
internally/
externallyand evaluate
importanceAnalyze global social
challenges/ESG trends
and identify a wide range
of environmental/social/economic issues

Eenvironmental NGO, since Feb 2020), as someone with an
external voice and expert, gave us in-house lectures andhelped us screen priority items. In Step 3 and 4, we selected
12 items as our materiality identified at the meetings ofdivision managers and Medium-Term Management Plan,
where we had discussions for approval.

Step 3

Organize social challenges
in terms of importancefor external parties(stakeholders) including
ESG investors andimpact on AZN

Step 4

Identifymateriality

Internal
discussions &approvals

Identified materiality

Vital(extremely important)

SSocietyGGovernance● Reduction of environmental● Human resource development● Corporate governanceload of buildings● Transition to decarbonizedsociety● Climate change actions andGHG reduction● Response to climate change● Water security management● Waste reduction● Human rights in labor● Anti-corruption policies &environment and humanrights due diligence● Diversity promotion● Engagement with local
community

practices<Relevance of SDGs to our business>

Discuss and identify(finalize) important
challenges based on
two axes: importancefor AZN and importancefor our stakeholders

E Environment

S Society

G Governance

HIGH materiality

Expectations from stakeholders

Corporate governance

Climate change actions and GHG reduction

Reduction of environmental load of buildings

Engagement with local community

Human rights in labor environment andhuman rights due diligence

Human resource development

Response to climate change

Transition to decarbonized society

Waste reduction

Water security management

Anti-corruption policies & practices

LOW materiality

Diversity promotion

Impact on our business

9Making contributions to the Sustainable Development Goals (SDGs)
The 17 Sustainable Development Goals (SDGs) were set
for the international community to work together for
global sustainable development, as part of the (2030)
Agenda for Sustainable Development, which was adopted
in September 2015 at the United Nations Summit. To
these goals, we will make contributions through ourbusiness activities as a member of society.

We have selected items relevant to our business fromthe 17 SDGs in the process of identifying materiality. We
recognize these items to be addressed or consideredparticularly by us through our business activities. In abid to resolve social challenges through our businessactivities, we will be further committed to SDGsconscious initiatives and management.

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Aoyama Zaisan Networks’ Materiality

Materiality policies & initiatives

Realization of society that supports(the success of) diverse talents● Human resource development

Human resource development Policies & major initiatives● Diversity promotion

As for human resource development, our policy is to make contributions to our customers
and society by making the most of our management capital, “human resources,” with a goalof “enhancing personality” and “building a strong organization adaptable to changes.”
We develop human resources through the following measures: redefining functions in therevised personnel system, visualizing management status by 360-degree assessment,
developing an industry-ready employee training framework by introducing an education
program (for consultants), instilling corporate philosophy in Hasumi-Juku (academy), andvisualizing educational training programs via online tools.

Realization of decarbonized society● Reduction of environmentalload of buildings● Transition to decarbonized society● Climate change actions andGHG reduction● Response to climate change
Making contributions to thefollowing SDGs:

Policies & major initiatives

Diversity promotion

The Group, a comprehensive property consulting firm, is engaged in business activities
utilizing energies from land and other natural resources, as part of consulting operations;
we recognize response to climate change as an important management challenge with a

Making contributions to thefollowing SDGs:

considerable impact on our business continuity. We also consider our green (eco-friendly)
initiatives to accommodate needs from both customers and tenants as well as driveimprovements in future asset value and solutions to social challenges. At the moment, wePolicies & future initiatives

The Group regards our co-workers as one of the most important aspects of management
capital. We respect each individual’s physical and mental well-being, understanding offunctions, personality and autonomy/self-reliance, while constantly providing opportunities
for self-improvement and enlightenment, in a bid to become a company with advancedpersonality. We are also makes efforts for employees to continue working with ease in theirlife events, such as setting up a satellite office, implementing a staggered work shift system,
promoting childcare leave (acquisition rate by women in FY2020: 100%), and enhancement atemporary employees program that allows employees over 65 (retirement age).

are committed to initiatives to switch to electricity using clean energy and to facilities withlower environmental load (AC with less CFC consumption, etc.).
Future initiatives

Business activities with emphasis on partnerships

We will formulate the “Group Environmental Policy” and make further eco-friendly efforts in aseries of the purchase/operation/management/sale of office buildings including ADVANTAGECLUB.

●E ngagement with localcommunity

Realization of recycling-based society● Water security management

Policies & major initiatives● Waste reduction

As a water security management initiative, we are engaged in the development/constructionof buildings/towns by considering the conservation of water environment such as effective

Making contributions to thefollowing SDGs:

water use and groundwater recharge while saving water and effectively using water

Policies & major initiatives
As a comprehensive property consulting firm, the Group recognizes our engagement in local
communities is one of the important agenda in terms of resolving social challenges andprotecting property.
We are committed to activities to support the establishment of incorporated foundations
with the primary purpose of scholarship support, nursing homes for the elderly and licensed
nursery schools to clear children on waiting lists, and the redevelopment of land in front oftrain stations as a regional revitalization project, in an effort to coexist and collaborate withlocal communities.
Future initiatives

Making contributions to thefollowing SDGs:

resources together with our customers and tenants, in an effort to protect water environment.
In our group’s view, CO2 emissions associated with our business activities including real

Under the mission, “to remain your best partner in 100 years,” the Group makes efforts
to contribute to your happiness through the succession, operation and management ofproperty, as a comprehensive property consulting firm. We regard local communities as afoundation for the life of all people including our customers, their families, and companies
and employees they treasure, as a foundation for social and economic activities, and as animportant foundation for you to lead a happy life. So that our customers can happily live andthe value of their assets can improve in local communities, we will promote our engagement
in local communities.

estate operations have a significant impact on climate change and thus are considered as amajor risk. As a waste reduction initiative, we will step up our activities to improve energy
efficiency in business operations, shift to renewable energy, reduce emissions, and so on.

Continuing improvement in governanceenvironment and humanrights due diligence
Making contributions to thefollowing SDGs:●A nti-corruption policies &Recognizing corporate governance as an important management mechanism to maketransparent/fair and speedy/decisive decisions, the Group is actively committed to it.
Compensation for officers/executives is determined through fair and highly transparent
reviews by the Compensation Council; we are engaged in proper activities including theevaluation of the effectiveness of the Board of Directors in line with the policy.

Policies & future initiatives
The Group seeks to contribute to the physical and mental well-being of people through ourmanagement objectives, core values, and action guidelines. Going forward, we will formulate

Anti-corruption Policies & future initiatives

our policy on human rights and finalize our basic concept about respect for human rights, roll

For the purpose of practicing fair and bona fide management in compliance with laws,
we establish the Compliance Committee consisting of the President, full-time Directors,
Executive Officers/General Managers of the divisions, and external legal counsels (attorneys)
as a structure to advance compliance with laws and corporate ethics.
Going forward, we will formulate and implement anti-corruption rules and prevention
guidelines from an anti-corruption point of view.

them out to all the officers and employees, and ask understanding and support from all of ourbusiness partners including suppliers.

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Corporate governance Policies & major initiatives

practices

Business activities with respect for human rights● Human rights in labor● Corporate governance

Making contributions to thefollowing SDGs:

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