Sustainability Book

2023
7-3 Nihonbashi Odenmacho, Chuo-ku, Tokyo, Japan
Phone: +81-3-5623-8100
URL: https://www.hulic.co.jp/en/

We identified and selected issues of especially high materiality in terms of their importance to Hulic and to our stakeholders. We will continue
to review the materiality issues we have identified and implement effective initiatives and counteractions as well as assess opportunities andrisks. To steadily implement these initiatives, we also set KPIs and other targets so that we can quantitatively evaluate every materiality issue,
while reviewing their status every year.

To all stakeholders
We fulfill the tasks and responsibilities demanded of us through corporate activities in the real estate business, aspiring to further grow as wecreate value to share with society, customers, business partners, employees, local communities, shareholders, investors, and all other stakeholders.
We look forward to the growth and evolution of Hulic, which has continued to change with the keywords “driving innovation” and“accelerating progress” , and we sincerely ask for your continued support.

Saburo Nishiura

Takaya Maeda

Chairman, Representative Director

President, Representative Director

CONTENTS
Health and Productivity Management ･･･････････････････････････ 82
Embracing Diversity & Inclusion ････････････････････････････････ 84

Message from the Management
Corporate Philosophy and Sustainability ･････････････････････････ 2
Hulic Group’s Value Creation Process ････････････････････････････ 8Materiality Assessment ････････････････････････････････････････ 10
Opportunities and Risks related to Materiality and Our Actions ･･････ 12
Non-financial Highlights ･･････････････････････････････････････ 14
Key Performance Indicators (KPIs) /Targets and Results ･････････････ 16

Basic Policy for Environment ･･･････････････････････････････････ 18

Takaya Maeda

Chairman,
Representative Director

President, Representative Director

Initiatives for Climate Change ･･････････････････････････････････ 29
Building a Recycling-oriented Society ････････････････････････････ 41
Initiatives for Biodiversity ･･････････････････････････････････････ 51
Information Disclosure based on TCFD Recommendations ･･････････ 53

Social Initiatives
Message from the Management

The starting point of Hulic's Sustainable Management is "For therealization of a society full of safety, peace of mind and trust,and for the continuous improvement of corporate value".
For more than half a century, Hulic has been operating a real estate leasing business focusing on a portfolio of office buildings incentral Tokyo. Our strength of having a solid business foundation, based on the prime locations of properties, has allowed us tomaintain continued growth of profits and dividends since our listing in 2008, without being affected by market conditions even in theface of adversity, including difficulties associated with the Financial Crisis, the Great East Japan Earthquake and the spread ofCorporate Governance Initiatives
Corporate Governance ･･･････････････････････････････････････ 96External Directors and External Auditors ････････････････････････ 106
Auditing Mechanism ････････････････････････････････････････ 108
Internal Control System ･･････････････････････････････････････ 111
Risk Management ･･･････････････････････････････････････････ 112

Environmental Initiatives

Saburo NishiuraContribution to Local Communities and Society ･･･････････････････ 87

Initiatives for Customers ･･････････････････････････････････････ 68
Collaboration with Business Partners ････････････････････････････ 72
Respect for Human Rights ･････････････････････････････････････ 74
Human Capital Management ･･････････････････････････････････ 76

Compliance ････････････････････････････････････････････････ 115
Initiatives for Shareholders and Investors ････････････････････････ 121External Evaluation
Third-party Assurance ･･･････････････････････････････････････ 124External Evaluations ･････････････････････････････････････････ 124

Sustainability Data
Environmental Data ･････････････････････････････････････････ 128
Social Data ････････････････････････････････････････････････ 131
Corporate Governance Data ･･････････････････････････････････ 133

Work-life Balance ････････････････････････････････････････････ 78

Editorial Policy
The "Sustainability Book 2023" was created with the aim of informing stakeholders about our various sustainability initiatives that link the creation ofsocial value and corporate growth, and creating new opportunities for dialogue.
Reporting Boundary

Reference Guidelines

Hulic Co., Ltd. and its Group companies

GRI (Global Reporting Initiative)

COVID-19. Hulic’s sustainable growth is supported by sustainability-conscious business operations and value creation to solve social"The GRI Sustainability Reporting Standards"

issues and pursue initiatives that combine social value creation with corporate growth. In our corporate philosophy, we uphold theTime of Issuance"The Environmental Reporting Guidelines (2018)"

following values: “For the realization of a society full of safety, peace of mind and trust, and for the continuous improvement ofNovember 2023

TCFD (Task Force on Climate-related Financial Disclosures) Final Report

corporate value”. As part of our management strategy, we consider that taking initiatives to address social issues will create businessCorporate Governance

Our Approach to Sustainability

Our Approach to Sustainability

Materiality in sustainability and progress

Environmental Initiatives

In the Medium- and Long-Term Management Plan (2020 -2029), which began in FY2020, we aim to implement management that emphasizes
sustainable co-creation and co-existence with society as one of the basic strategies. With “driving innovation and accelerating progress” as ourmotto, we are focusing on executing sustainability-conscious business operations and value creation to help resolve social issues and to pursue
initiatives that synchronize social value creation with corporate growth by evolving flexibly in response to changes in the macro environment.

External Evaluation

For the realization of a society full of safety, peace of mind and trust,and for the continuous improvement of corporate value

Social Initiatives

Medium- and Long-Term Management Plan (2020 to 2029) and Sustainability

Sustainability Data

Sustainability Initiatives“Recommendations of the Task Force on Climate-related Financial
Disclosures”

opportunities. We will further increase Hulic’s purpose by implementing management that emphasizes sustainability.

Hulic Co., Ltd. Sustainability Book 2023

1

Corporate Philosophy

For the realization of a society full of safety,
peace of mind and trust,and for the continuous improvement of corporate value
Basic Stance
Ideal
Company

We aim to be a company that grows each day by utilizing stable corporate
infrastructures.

Corporate
CultureWe always conduct business from a new viewpoint in an effort to increase ourcorporate value.

Stance to
Customers

We are committed to providing optimal products and services to customers,
placing customer satisfaction as our top priority.

Ideal
Employees

Each of Hulic's employees strives to provide high quality value as a professional.

Basic Principles of Corporate Conduct
The Basic Principles of Corporate Conduct, which concretely describes our Basic Stance in an easy-to-understand mannerfrom a company viewpoint, underlies our decision-making in business.

1. Respect human rights and prohibit discrimination andharassment
2. Comply with laws and rules
3. Conduct business in a faithful and fair manner
4. Manage information appropriately
5. Adhere to insider trading regulations
6. Avoid involvement with anti-social forces

7. Be considerate of environmental conservation
8. Maintain and encourage the best communication
possible
9. Respect intellectual property rights
10. Prohibit bribery, and rules concerning gifts andentertainments
11. Ensure transparency and reasonableness of transactions

Sustainability Vision
We aim to pursue realization of a sustainable society and continued growth of Hulic by putting our Corporate
Philosophy into practice. We commit to take a faithful approach to all of stakeholders.
To this end, we pursue initiatives based on a three-point Vision.
◦ We create shared value with our society by actively engaging with the environmental issues through our corporate

activities.
◦
We lay the foundation for the future by providing peace of mind to our customers through offering our highvalueadded products and services.
◦ We take compliance seriously, respect human rights and strive to perform transparent corporate activities based on

our high ethical standards.

Social Initiatives

Corporate Philosophy and Basic StanceOur Approach to Sustainability

Our Code of Conduct, which concretely describes our Basic Stance in an easy-to-understand manner from the viewpointof each employee, underlies actions our directors and employees should take.

Environmental Initiatives

Our Code of Conduct

Relationships between the Philosophical Framework and Medium- and Long-term Management Plan
Our corporate philosophy “For the realization of a society full of safety, peace of mind and trust,” means the purpose we
exist is to create shared value with society through our corporate activities. Accordingly, our corporate philosophy andour sustainability vision are on both aspects of social relationships. Based on our corporate philosophy and sustainability
vision, we formulated our corporate strategies as well as the Medium- and Long-term Management Plans.
Corporate Philosophy

Corporate GovernanceCorporate Philosophy and Sustainability

Clarifying what we value and why we exist as a company

1. Awareness of Corporate Social Responsibility
Basic StanceShowing who we need to be to realize our corporate philosophy

Sustainability Vision

Basic Principles of Corporate Conduct

Creating shared value
with society through practicing
our corporate philosophy

2. Practice of Customer-first Policy
Treat customers faithfully and kindly, listen to their requests with sincerity and provide sophisticated, efficient and highquality services.

3. Faithful and Fair Conducts
Always act with sincerity and fairness in compliance with laws and regulations, their spirits, as well as social norms.
Decisively confront anti-social forces threatening the order and stability of a civil society.

Ethical standards to realize our corporate philosophy and basic stance

External Evaluation

Contribute to domestic and overseas economies and stable development of society by devoting ourselves to soundbusiness based on self-responsibility and fulfilling our social missions.

Our Code of Conduct
A code of conduct for all to adhere

Contribute to social development and improvement through the appropriate use of our fundamental functions. While
being aware of responsibilities as good corporate citizens, commit ourselves to corporate conducts in accordance withthe social common sense and expectations through close communication with society.

5. Respect for Humanity
Build an organizational culture full of respect for humanity and that values comfort and well-being, such that people
can work with high motivation and an open-heart.

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Hulic Co., Ltd. Sustainability Book 2023

Management Foundation

Corporate Strategies

Applicable Laws and Regulations

Medium－and Long－term Management Plan
(2020-2029)

Company Rules

Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

4. Contribution to and Harmony with the Society

3Target Profile
in 10 years“Driving innovation and accelerating progress” as our motto, we continue to
steadily increase our corporate value through evolving ourselves flexibly inresponse to changes in macro environment

Basic Policy

Strike a balance between P/L growth, B/S soundness, profitability, andproductivity (efficiency) at a high level and achieve further growth throughdynamic transformation backed by overwhelming speedy decision-making

Basic
Strategies

Business
1

F urther evolve the businessmodel and restructure theleasing portfolio

2

Strengthen development

3

and value-added
businessesC reate unique new
business domains andimprove Group strengths

Management Infrastructure4 S trengthen the management5 Implement management that emphasizes

foundation and implement stringent risk
managementWEB

sustainable co-creation and co-existencewith society

New Medium- and Long-term Management Plan (2020-2029)
https://www.hulic.co.jp/en/ir/strategy/medium_term.html

Hulic takes part in a range of global and domestic initiatives aimed at creating a sustainable society as well as
increasing our purpose as a real estate company.

Sustainable Development Goals (SDGs)
In September 2015, the United Nations Summit unanimously adopted the SDGs as
goals to be achieved by 2030. The SDGs consist of 17 goals in such areas as sustainableenergy, the creation of a robust infrastructure, climate change countermeasures, andhigh-quality education.
Through our corporate activities, we address social issues and seek to find solutions. In concrete terms, we identify issues of great importance to us andour stakeholders as materiality issues, then implement measures to navigate relevant opportunities and risks.

WEB

Value Creation Process
https://www.hulic.co.jp/en/sustainability/about/process/material_issues.html#anc1

WEB

Opportunities and Risks related to Materiality and Our Actions
https://www.hulic.co.jp/en/sustainability/about/process/initiative.html

Paris Agreement and SBT
We intend to reduce greenhouse gas emissions in line with the 2015 Paris Agreement adopted
at the 21st Conference of the Parties to the United Nations Framework Convention on Climate
Change (COP21). To achieve this goal, we work to introduce environmentally-friendly equipment
to Company-owned buildings, to use only renewable energy as the source of electricity used in all
Company-owned properties*1 by Company-owned solar photovoltaic equipment that does not use
the FIT system, and to reduce greenhouse gas emissions throughout the supply chain.
Hulic has had its near-term (by 2030) greenhouse gas emissions reduction targets approved by SBTi(the Science Based Target initiative*2) as consistent with levels required to meet the goals of the Paris Agreement.
*1 Excludes single-tenant lease properties, residential properties, unmanaged shared properties for which we do not manage energy, and real estate for sale, etc.

Environmental Initiatives

Participation in Initiatives

Social Initiatives

Outline of Medium- and Long-term Management Plan (2020-2029)

Our Approach to Sustainability

Our Approach to Sustainability*2 An international initiative that promotes companies to develop greenhouse gas emission reduction targets in line with Paris Agreement goals (limiting the global temperaturerise above pre-industrial levels to well below 2˚C and limiting below 1.5˚C).

● I nitiatives aims for achieving RE100 in 2023
●S tarted disclosing information in line with TCFD recommendations●F ormulated greenhouse gas emissions reduction targets in conformance with Science Based Target initiative (SBTi). Our near-term (by 2030) emissions reduction targets were approved by SBTi as consistent with levels required to meet the goals of theParis Agreement● I mplement the reduction of waste disposal by applying longer-life designs as standard specifications* Excludes single-tenant lease properties, residential properties and unmanaged shared properties for which the Company does not manage energy, and real estate for sale, etc.

Society: providing value to the stakeholders●P romote initiatives to secure the strength to withstand in the event of an earthquake with a seismic intensity of 7 level in all

Company-owned buildings by 2029
●R evise human rights policy and continue to promote initiatives to respect human rights●S trengthen relationships with local communities and other stakeholders● I mplement a wide range of social contribution activities (managing Shogi championships for women (Hulic Cup Hakurei

Championships and women's rank-deciding competition), supporting Japan Para-Badminton Federation, supporting singleparent households, donating of emergency food stockpiles, etc.)

Corporate governance: Promotion of balanced management●M aintain sound corporate governance based on our Corporate Governance Guidelines●C hanged the position of the chairperson of the Board of Directors, which was previously held by the President and Representative Director,

to a system in which a non-executive director is responsible. Strengthened governance by increasing the number of external directors by
two, with the Board of Directors now consisting of five executive directors and seven non-executive directors* TCFD (Task Force on Climate-related Financial Disclosures) was established by the Financial Stability Board (FSB), an international organization that includes the central banks ofmajor countries as well as financial regulators. The TCFD proposes a framework for disclosing climate-related information to investors.

WEB

Information Disclosure based on TCFD Recommendations
https://www.hulic.co.jp/en/sustainability/ecology/tcfd/

External Evaluation

Environment: To realize a “carbon-free and recycling-oriented society”● Invest in renewable energy sources to achieve 100% energy use from renewables in all company-owned buildings* by 2030

Mindful of the importance of disclosing climate-related financial information, we
announced our support for the information disclosure framework recommended by
the Task Force on Climate-related Financial Disclosures (TCFD*) in 2020 and started
disclosing information in line with the recommendations after completing analysis
and responses on the recommended framework.
We will continue providing to our stakeholders information regarding our initiatives on creating a sustainable society in an easy-to-understandway and will work to further improve information disclosure.

RE100
In 2019, we participated in RE100, an international initiative for member
companies to aim using 100% renewable energy for the electric power
required for business activities. We have developed our own solar power
generation facilities that don't apply the feed-in tariff (FIT*) system (contributeto a decarbonized society through “additionality**”), and have supplied all ofthem from our own PPS. We achieved RE100 in 2023.
* A feed-in tariff (FIT) system for electricity that requires utility companies to purchase electricity generated using renewable sources for a certain period of time at a price specified
by the national government.
FIT electricity is not considered renewable energy as a portion of the cost of the electricity purchased by a utility company is added to the consumer’s bill so the tax payer mustbear some of the costs. Therefore, achieving the 100% goal with FIT electricity is not considered RE100 by definition.
** Additionality is the promotion of the reduction of CO2 emissions by installing new renewable energy facilities to replace existing thermal power generation.

●E nsure diversity and inclusion in the Board of Directors and Audit & Supervisory Board by increasing the ratio of female directors

and Audit & Supervisory Board members to 30%

Sustainability Data

Recent Results of Initiatives Related Our Sustainability

Corporate Governance

Task Force on Climate-related Financial Disclosures (TCFD*)●D isclosed directors skill matrix●t rengthened the Nominating Committee’s and the Remuneration Committee’s functions by appointing all six of our external

directors to the committees

4

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

5

Challenge Zero

Keidanren Biodiversity Declaration Initiative
Biodiversity conservation, along with efforts to address climate change and realize a recycling-oriented
society, constitute the main pillar of Hulic environmental materiality issue. With the United Nations Decadeon Biodiversity ended in 2020, Keidanren (Japan Business Federation) made a proposal to continue thisinitiative in the Japanese business community with the Keidanren Biodiversity Declaration (revised edition)
announced in June 2020. Hulic endorses and participates in this Keidanren initiative, and as a member ofthe international community, we will collaborate and cooperate with various stakeholders to resolve social
issues.

Support of the Japan Business Federation’s One Percent Club Initiative
Hulic supports the One Percent Club initiative, a move advocated by Keidanren (Japan Business Federation). The Club, as asuborganization of Keidanren’s Committee on Responsible Business Conduct & SDGs Promotion, provides information on social
contribution activities to companies and coordinates networking with NPOs and other organizations with the aim of enabling more
effective social responsibility activities.

Establishment of the Sustainability Committee
We have established “Sustainability Committee” (the Committee). The Committee will discuss and coordinate material management mattersrelating to strengthening of our long-term competitiveness and risk management reflecting discussions and developments associated with ESG
and SDGs in Japan and around the world.
The President chairs the Committee as commitment of top management is of upmost importance in successful medium and long-term
engagements. Other members of the Committee include Vice Presidents, General Managers of Corporate Sustainability Department, General
Managers of Business Planning and Management Department, General Managers of the Real Estate Planning Department, and Group company
executives.
Further, based on TCFD recommendations, we established a governance mechanism under which the Sustainability Committee deliberates
and coordinates matters related to climate change. The Committee evaluates the impact of climate change on business at least once a year,
formulates policies and strategies for mitigating identified risks and seizing opportunities, and discusses how to adapt to climate change,
including reflecting its impact in plans, budgets and targets. The Committee also sets KPIs related to sustainability, including climate change,and evaluates progress by reviewing performance. The Sustainability Committee submits reports on the deliberation of matters related toclimate change at least once a year to the Board of Directors, which oversees the committee.

Organizational Structure

Board of Directors
ReportOversight

Sustainability Committee
Discuss and coordinate sustainability including the policy for sustainability activities
reflecting ESG/SDGs related developments both at home and around the world

Social Initiatives

Challenge Zero (Challenge Net Zero Carbon Innovation), originated by the Japan
Business Federation, is an initiative that views the creation of a decarbonized society
as an important management issue. Companies participate if they are looking todevelop innovative technologies early on and to implement them in society. The
goal is to realize a net zero greenhouse gas emission society as soon as possible,
in line with the Paris Agreement. In cooperation with partner companies, Hulic plans developing power generation and heat supply
systems that use food waste from commercial facilities and hotels. The system will be used in Company-owned properties to convert
waste to energy, to achieve zero emissions, and to increase efficiency of operations.

Environmental Initiatives

Organizational Structure

Our Approach to Sustainability

Our Approach to Sustainability

Chairperson: President, Members: Vice President, GM of Corporate Sustainability Department,
GM of Business Planning and Management Department,
GM of Real Estate Planning Department and Group company executives

Keidanren’s Challenge Initiatives for 30% of Executives to Be Women by 2030
Corporate Sustainability Department
・Management ofsustainability- related matters

Corporate Governance・Planning and promotion ofsustainability- related matters

Sustainability Supporters
Environment

SocialCSR

GX League
Communication

Stakeholders
Shareholders,
Investors

Employees

Customers

Business
Partners

Government andPublic Administration

Local
Communities

GlobalEnvironment

Issuance of Integrated Report and the Sustainability Book

Activities of Sustainability Supporters

We have been issuing the Integrated Report since 2020. In the Integrated Report, we describe how our strengths havebeen used to create value for customers, society, and the Company. We also present financial information and outline thesustainability initiatives which support our corporate growth in an easy-to-understand way for our stakeholders. The aimof the Integrated Report is to create the opportunity for a new dialogue. The Integrated Report is reviewed by the Boardof Directors prior to being issued. Further, Hulic compiles sustainability initiatives aimed at realizing a society full of safety,
peace of mind and trust, and for the continuous improvement of corporate value in the Sustainability Book as well as on
the Hulic website.

Approximately 20 employees are appointed from Hulic Group companies as sustainability supporters. During a one-year
term as sustainability supporters, they play a central role in social contribution activities that include hosting a summer
festival, conducting satoyama conservation activities, considering where to donate employee match gift program andsorting used stamps. Additionally,sustainability supporters assist the
Corporate Sustainability Departmentin the promulgation and inculcation of
the Hulic Sustainability Vision into theentire Group. At sustainability supporter
meetings, opinions are proactively
exchanged and proposals submitted that
contribute to sustainability initiatives andSorting used stamps
the formulation of action plans.

WEB

6

Information disclosure

Integrated Reporthttps://www.hulic.co.jp/en/ir/library/annual/

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

External Evaluation

Green Transformation (GX) is intended to bring about a shift from an industrial structure centered on fossil fuels to one centered onclean energy, ushering in a comprehensive restructuring of economic and social systems. The GX League is a platform of like-minded
companies that discusses GX and launches initiatives to create new markets in cooperation with industry, government, academia, andfinance. Hulic supports the basic concept of this movement and is working together with others to discuss, promote, and practice
GX.

Sustainability Data

In 2021, Hulic endorses Challenge Initiatives for 30% of Executives to Be Women by 2030 from Keidanren (Japan
Business Federation). And we have already achieved in 30% of executives on the board being female as of April 2023.
Hulic actively manages diversity and believes in the importance of providing equal opportunities regardless of gender. We
will continue to create an organizational environment where women and diverse individuals can thrive.

7

For the realization of a society full of safety,
peace of mind and trust,and for the continuous improvement ofcorporate value

Materiality identified from social issues
E Environment-related issues

S Social issues

G C
 orporate governance-related issues

Actions for climate change
Efficient use of resources
Promotion of the ecosystem
protection and restoration
Enhancement of environmental
management system

Provision of safe and secure buildings
Provision of healthy and comfortable lifestyles
Coexistence with business partners / local communities
Response to aging society
Response to increasing number of tourists
Striking a work-life balance and advancement of talent development
Advancement of diversity and inclusion and respect for human rights
Practicing sustainable agriculture

Corporate governance and compliance
Response to changes in financial and real estatemarkets
Business continuity plans (BCPs)

Growth Strategies and Business Activities

Strengths Created from Selection and Concentration*1

Achievements of Business Activities

Properties in prime locations(Manufactured capital)• Approx. 260 rental properties (excluding real estate for sales)• Focus areas: Ginza, Shinjuku East Side, Shibuya / Aoyama, Asakusa• Approx. 73% of Hulic’s properties are in Tokyo 23 wards“Driving Innovation” and “Accelerating Progress”•Approx. 74% of properties are within a 5-minute walk

Balanced Management
Strike a balance between P/L Growth, B/S Soundness, Profitability, andProductivity (efficiency) at a high level

A small group of elite professionals(Human capital)• Employees (consolidated basis): 1,347

Business Activities(of which, 317 are in the real estate business)• High ordinary income per employee
Initiatives in advanced technology development• O rdinary Income

JPY123.2 Bln

Average rate of growth of Ordinary Income: 20.6%(excluding residential and related properties)

of a station (excluding residential and related property)

Financial achievements*2

Leasing Business

Development Business• ROE

11.9%• Dividend Payout Ratio

40.3%• Dividends per Share

JPY42.0• Net D/ E Ratio

1.3 times*3• Debt /EBITDA

8.5 times*3

Value Created for Society
Peace of mind and trust for society as a whole

SDGs contributed toSocial Initiatives

and for the continual improvement of corporate value

 onverting to 100% renewable energy sourced electricity for■Celectricity consumption at all company-owned buildings*4 andachieving RE100*5.
 eveloping environmentally conscious and energy-saving■Dbuildings
 rotecting the global environment by introducing environmental■P
technology

Peace of mind and trust for customers

Corporate GovernanceFor the realization of a society full of safety, peace of mind, and trust,

 igh environmental performance buildings with particular■Hemphasis on earthquake and water damage
 xtending the lifespan of buildings■E ctive development of businesses in response to demographic■Achange (aging) and social dynamics (increasing tourists)(Intellectual capital and natural capital)

Peace of mind and trust for employees

Guidelines for Longer Life Building• Introduction of natural ventilation and natural lighting systems
that were developed with MIT

New and Other
Businesses

Value-added BusinessStable financial baseAA- (stable)

 roviding career development support■P

development and reconstruction projects

 orkplace with work-life balance■W

construction companies• Corporate culture that fosters robust social contribution

monitored by the Sustainability Committee andreported to the Board of Directors

to support business

Peace of mind and trust for investors
 chieving stable financial growth■A■ I ncreased dividends every fiscal year since TSE listing roviding diverse forms of mutual communication■P• Percentage of highly earthquake resistant

E

S

G

E (environmental)
initiatives

S (social) initiatives

G (governance)
initiatives

activities

Continue evolving for further progressbuildings*6• Usage rate of paid leave• Ratio of female managers• Employment ratio of persons with disabilities• Number of BCP drills, inspections of stockpiled

Peace of mind and trust for local
communities and business partners

Sustainability Data

• Public-private coordination in PPP business• Coordination and cooperation with management and• Number of times climate change risks are

Sustainability Initiatives

37.1%*3(Social capital)

Hulic Co., Ltd. Sustainability Book 2023

• Greenhouse Gas Emissions Reduction• RE100*5 progress rate
• Percentage of technical measures applied to• N umber of renewable energy systems installed in

JPY686.7 Bln

Strong relationships with local communities, business
partners8

 orkplace rich in diversity and inclusion■W

reduce construction waste(Financial capital)*1 As of December 31, 2022

Non-financial achivements

External Evaluation• Formulation and thorough implementation of the Hulic• Credit rating:• Equity:• Equity ratio:

Environmental Initiatives

Hulic Group’s Value Creation Process

Our Approach to Sustainability

Our Approach to Sustainability

 ontributing to positive long-term relationships■C ontributing to resolution of issues in local communities■C roviding broader social contribution activities■P

food and suppliers*2 FY2022 results*3 50% (JPY175 Bln) of hybrid finance (JPY350 Bln) was calculated as nominal equity.
*4 Excludes properties for which we do not have energy management authority including master lease properties,
residential properties and non-managerial co-ownership properties, and real estate for sale,etc.
*5 An abbreviation of “Renewable Electricity 100%”, or sourcing 100% of electricity needed for business activities fromrenewable energy sources*6 Highly earthquake resistant buildings are those that can safeguard human life and enable continued use of thebuilding with post-earthquake repairs when an earthquake occurs with a seismic intensity of 7 level.
Hulic Co., Ltd. Sustainability Book 2023

9

Materiality Assessment
Our major stakeholders and related materiality

and society.

We are committed to realizing a sustainable society by delivering environmental, social and economic value through interactive communication with

As social issues and stakeholders’ interests diversify, we will continue to address issues in society through assessing opportunities andall stakeholders. Stakeholders who are particularly important for our sustainable growth and relevant materiality issues are indicated below.

risks in our businesses to achieve sustainable growth.

Step1

Step2

Identification of social
issuesAnalyze global social
issues (SDGs, etc.)
and ESG trends toidentify a wide range ofenvironmental, social,and economic issues

Evaluation of materiality
Quantify and evaluatesocial issues fromthe viewpoint of
their impact on
stakeholders and Hulic’s
management, thenprioritize

Step3

Step4

Identification ofmateriality

Discussion and confirmationby the management

Assess and identify
materiality based on thetwo criteria: importanceto Hulic and to its
stakeholders

Identified materiality
are to be examined
and confirmed at
Sustainability Committee(Chairperson: President)
and Board of Directors(when appropriate)• Tenants• Facility users• Customer satisfaction survey (annually)• Disclosure of information in our Integrated
Report and on our website (whenappropriate)• Establishment of a contact point forinquiries (permanent)• Provision of safe and secure buildings• Provision of healthy and comfortable
lifestyles• Coexistence with business partners /local communities• Response to aging society• Response to increasing number oftourists• Practicing sustainable agriculture• Building managementcompanies• Construction companies• Building maintenancecontractors• Real estate agents• Financial Institutions• Regular meetings and business interaction(as required)• Disclosure of information in our Integrated
Report and on our website (whenappropriate)• Coexistence with business partners /local communities• Response to changes in financial and realestate markets• Employees of the Hulic
Group• President’s message (monthly)• Career development interviews (twice ayear or more)• Interviews by Human Resources
Department• President’s survey (twice a year)• Disclosure of information through theCompany intranet (when appropriate)• Striking a work-life balance andadvancement of talent development• Advancement of diversity and inclusion
and respect for human rights• Local communities• NPOs and NGOs

• Social contribution activities and volunteer
activities (when appropriate)• Participation in neighborhood associations(when appropriate)• Engagement with communities in thevicinity of our projects (when appropriate)• Engagement with NPOs and NGOs (whenappropriate)• Coexistence with business partners /local communities• National and local publicbodies• Promoting PPP business (whenappropriate)• Initiatives for various awards andevaluations (when appropriate)• Payment of appropriate taxes (whenappropriate)• Coexistence with business partners /local communities• Advancement of diversity and inclusion
and respect for human rights• Individual investors• Buy-and-hold investors• Briefings for individual investors andfor analysts and institutional investors(including overseas) (when appropriate)• Timely disclosure of information on our
website (when appropriate)• Establishment of a contact point forinquiries (permanent)• Issuing a shareholder newsletter (twice ayear)• Corporate governance and compliance

Customers

Business
Partners

We will continue to review the identified materiality issues and implement effective initiatives and actions.

Materiality Matrix

Employees

We identified and selected issues of especially high materiality in terms of

Identified materiality

their importance to Hulic and to our stakeholders.

Actions for climate change

Materiality for our stakeholders

Relevance (high)Identified
materiality

E

Efficient use of resources
Promotion of the ecosystem protection and restoration
Enhancement of environmental management system(classified by ESG)

Provision of safe and secure buildings

Local
Communities

Response to aging society
Relevance (high)Materiality for Hulic

S

Response to increasing number of tourists
Striking a work-life balance and advancement of talentdevelopment

Administrative
Organizations

Advancement of diversity and inclusion and respect forhuman rights
Practicing sustainable agriculture
Corporate governance and complianceG

Response to changes in financial and real estatemarkets
Business continuity plans (BCPs)

10

Hulic Co., Ltd. Sustainability Book 2023

Shareholders,
Investors

Materiality
relevant to all
stakeholders
Actions for climatechange• Efficient use ofresources• Promotion of theecosystem protection
and restoration• Enhancement ofenvironmental
management system• Business continuity
plans (BCPs)•* We are actively working on
environment-related issues
and business continuity plans(BCPs), as they are materiality
issues that affect society as awhole.

Provision of healthy and comfortable lifestyles
Coexistence with business partners / local communities

Environmental Initiatives

Materiality Assessment

Materiality of high relevanceSocial Initiatives

Major engagements(frequency in parentheses)

Corporate GovernanceKey stakeholders

Sustainability DataClassification

External Evaluation

Hulic has been providing properties with excellent safety, environmental features, and convenience that match the needs of the times

Our Approach to Sustainability

Our Approach to Sustainability

Hulic Co., Ltd. Sustainability Book 2023

11

Opportunities and Risks related to Materiality and Our Actions〇 Heightened need for buildings and properties equipped with higher energy efficiency and renewable energy● Need for additional measures to comply with environmental regulations. Increase of utility expenses due to a rise inenergy consumption for air conditioning

Promote efficient use ofresources〇 Heightened need for facilities utilizing resources effectively and recycling technologies● Risk that business activity may wane if resources were exhausted• Adoption of longer life building design• 3R (Reduce/Reuse/Recycle) initiative (adoption of PC construction method, reuse of construction materials, reduction of plastic
waste)• Development and adoption of technologies to make effective use of resources

Enhance environmental
management system〇 Creation of new business opportunities through taking actions against environmental issues as our core business● Risk of delayed action on environmental issues due to lack of environmental management system• Further enhancing a corporate governance mechanism with a focus on oversight of the Board of Directors and Sustainability
Committee• Establishment and implementation of long-term vision for environment with targets for 2050

Deliver safe and securebuildings〇 Heightened need for properties that are safe and secure from natural disasters including earthquakes and flood damage● Rise of vacancy rate and decline of real estate value due to delayed actions on earthquake resistance techniques and BCP
preparedness• Reach a 100% ratio of highly earthquake-resistant buildings*2 by 2029 (excluding properties scheduled for reconstruction, which
will be achieved by 2025)• Comprehensive assessment of natural disaster risks at all company-owned buildings

Deliver healthy andcomfortable lifestyles〇 Heightened need for comfortable, healthy and productive indoor environments● Reputational risk if health damage occurred in one of Hulic’s buildings• (Initiatives in business) Delivering a healthy and comfortable indoor environment, confirming specifications of facilities andinterior materials in existing properties and those under development (use of interior finishes and equipment containing nohazardous substances)• (Initiatives for employees) Promotion of health and productivity management (introduction of no-smoking hours, medical
checkups on par with examinations that exceed legal requirements, etc.)

Coexistence withbusiness partners / local
communities〇 Better results are expected through synergies brought by aiming for mutual sustainable growth with our business
partners and local communities● Our reputation may suffer and relationships may deteriorate if we neglected local connections• Establish strong, long-lasting relationships through close and continual mutual communications ((Tenants) Implement
customer satisfaction surveys, delivering careful responses to tenant needs (Business partners) Establish close communications
with management and construction companies (Local communities) Hold summer festivals at the Hulic head office building,neighborhood cleanup drives, etc.)

Respond to aging society〇 Heightened need for nursing homes and hospitals with the aging of society and increase in number of healthier seniorcitizens● Hiring-related costs may rise and shortage of care workers may materialize as the population of young generation declines• (Initiatives in business) Promotion of senior citizen-related businesses (development of and investment in nursing homes)• (Initiatives for talent acquisition) To secure a stable workforce, improve fringe benefits and rehire seniors who want to work
• (Social contribution) Operation of Hulic Scholarship Program for Training of Welfare Caretakers

Respond to increasing
number of tourists〇 Expected rise in need for accommodation over the medium- to long-term● Risk of losing hotel guests if we failed to respond to diverse tourist needs• Promotion of tourism-related business (owned/leased, or managed by the Company)• Responses to the diverse needs of tourists by offering a wide range of lodging options (owned/leased: a wide range of businessoriented and luxury hotels in selected locations; Hulic-managed: primarily upscale hotels and luxury hot spring inns)

Strike a work-life balance
and advance talentdevelopment〇 Improvement of employee motivation and brand value in talent acquisition by enhancing workplace wellness featuresand enriching talent development program● Turnover rate may rise if support programs were insufficient for various workstyles• Provision of supporting framework for employees during pregnancy, childcare and caring for the elderly, and raising awarenesson related programs• Initiatives to create a highly productive organization (promotion of a thorough understanding of suitable working hours andworkstyle restructuring)• Assure effective human resource management, including support for career development (improve support program forobtaining qualifications and inhouse training program)

Advance diversity andinclusion and respect forhuman rights〇 Improvement of operational quality and productivity can be achieved by respecting diversity and inclusion● Reputational risk may rise if we failed to respond to the need for diversity and inclusion• Raising awareness of diversity and inclusion, as well as developing various programs and systems• Initiatives to establish a talent management system that recognizes various workstyles including work from home
• Assure that all business operations comply with the Hulic Human Rights Policy

Practice sustainableagriculture〇 Heightened need for low-cost, high-quality agricultural products at developing countries due to decline in Japan’s
farming population● Increase of investment costs in response to climate change and changing market conditions• Promotion of agricultural business with a company in Vietnam• Strengthening of cooperation with and introduction of new technologies with domestic agricultural companies throughinvestments• Information gathering on new crop varieties through joint ventures and implementation of trial cultivation of multiple varieties
throughout the year

Further strengthen
corporate governanceand compliance〇 The effectiveness of operations is ensured and confidence in management improves when internal controls and corporate
governance work
● Non-compliance issue and deterioration of public confidence may occur due to lack of appropriate compliance culture
and system• Greater diversity in the composition of the Board of Directors and Audit & Supervisory Board (a non-executive director serves aschairperson of the Board of Directors/two external directors were added, resulting in an equal number of internal and external
directors/the ratio of executive to non-executive directors is five to seven/ the ratio of females on the Board of Directors andAudit & Supervisory Board: 30%.)• Established a nominating committee and a remuneration committee (all members are independent external directors)• Provision of compliance trainings for all employees / establishment of compliance hotlines

Respond to changes infinancial and real estatemarkets〇 The Company’s prompt response to market changes differentiates itself from competitors● Decline of real estate leasing revenue, rise of vacancy rate
● Higher funding costs(Real estate markets) • Maintenance and improvement of competitiveness through adding value to our properties by
redevelopments, renovations, etc. • Careful selection of investment projects / flexible rebalancing of portfolio mix(Financial markets) • Establishment of cooperative relationships with financial institutions, procurement policy (raise long-term
funds at fixed rates) • Periodic analysis of market conditions, implementation of rigorous risk management through careful
deliberation and reporting at in-house meetings

Enhance business
continuity plans (BCPs)〇 A sense of security for employees and their families may be delivered through taking stronger measures to ensure safety
in case of a disaster● Delayed resumption of business due to prolonged restoration of head office functions• Formulation of BCP, implementation of drills once or more each year
• Establishment of cooperative program with external parties to examine situations and implement response measures on
Company properties in times of disasterSocial Initiatives• Use of labelling systems including JHEP certification, etc.
• Promotion of greening in development projects

Corporate GovernanceSocialSDGs contributed toEnvironmental Initiatives

Take actions for climatechangePromote the ecosystem〇 Heightened need for real estate development that is mindful of conserving local ecosystems
protection and restoration ● Residential environment may deteriorate if ecosystem in vicinity of property was damaged

Corporate Governance

Hulic’s Major Initiatives and Actions• Achieving RE100 in 2023
• Invest in renewable energy sources to convert to 100% renewable energy sourced electricity for electricity consumption at allcompany-owned buildings*1 by 2029.
• Information disclosure in line with TCFD recommendations, Formulation greenhouse gas emission reduction target in line with a
1.5 trajectory (Approved science-based target by the SBT initiative).
• Reducing CO2 emissions and promoting forest circulation by developing fireproof wooden buildings• Active adoption of environmentally friendly technologies (natural ventilation and natural lighting systems developed jointly with MIT, etc.)

External Evaluation

Major Opportunities and Risks (〇: opportunities, ●: risks)

Sustainability Data

Environment

Materiality

Our Approach to Sustainability

Our Approach to Sustainability*1 Excludes properties for which we do not have energy management authority including master lease properties, residential properties and non-managerial co-ownership properties, and real estate for sale,etc.
*2 H
 ighly earthquake resistant buildings are those that can safeguard human life and enable continued use of the building with post-earthquake repairs when an earthquake occurs with a seismic intensity of 7 level.

12

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

13

Our Approach to Sustainability

Our Approach to Sustainability

Non-financial Highlights
Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

269
300

15

Scope 2
299
10
19

25

100

0

229

270

274

Category 2
31
Category 3
6

13 †

239

21 †

Category 5
3thousand t-CO2e

Category 6
0.2

239 †

Category 7
0.3

211

2019

2020

2021

2022

(FY)

Category 12

(t)
1,200

1,855 †
1,487

1,500
1,000

1,166
904

900
600

502

502

539 †

300
0

0.7

% Properties Meeting Hulic’s
S Earthquake-resistance Standards*4

1,855 thousand m3(thousand m3)
2,000

Waste Disposal*2

539 metric tons

Category 11
33

Water Intake (Water Consumption)*3

E

Category 1
33

Category 13
132

17

200

E

239 thousand metric t–CO2e

Scope 3240
11

G Governance

Environmental Initiatives(thousand metric t-CO2e)
Scope 1
400

Greenhouse Gas Emissions Scope 3E

274 thousand metric t–CO2e

S Social

S

9
blds

7
blds

6
blds

6
blds

7
blds

2018

2019

2020

2021

2022 (FY)

Ratio of Highly Earthquake-resistant Buildings*5

100 %82.1 %

Target 100% (Achieved in 2022)
(%)
100

100

100

100

100

100

80

82.1%

60

As of December 31,
2022

This page is intentionally left blank.
The Key Performance Indicators (KPIs) /Targets and Results start from the next page.
Corporate GovernanceGreenhouse Gas Emissions*1

E

E Environment

Social Initiatives

Major Non-Financial Information

40
437

58
blds
2018

59
blds

346
55
blds

220
blds

207
blds

2019

2020

2021

2022 (FY)

Usage Rate of Paid Leave

S

20
0

S

2018

2019

2020

80

Target 70% or higher (Achieved in 2022)

77.0

78.5

75.5

81.5

(%)
3

77.7 †

2022 (FY)G in Board of Directors Meetings

2.68 %

99.6 %

Target 2.3% or higher*6 (Achieved in 2022)
2.41

2.42

2.34

2.54

2.68 †(%)
100

Target 80% or higher (Achieved in 2022)
98.0

99.1

98.7

99.6

99.6

2018

2019

2020

2021

2022 (FY)

80
2

60

60

40

40

1

20
0

Participation Rate of Directors

Employment Ratio of Persons with Disabilities

77.7 %
(%)
100

2021

External Evaluation

0

420

20
2018

2019

2020

2021

2022 (FY)

0

2018

2019

2020

2021

2022 (FY)0

Sustainability Data500

*1 The greenhouse gas emissions are calculated based on the GHG Protocol. Calculations for Scopes 1 and 2 are based on the properties where the Hulic Group has control of energy management (30 properties
in FY2019, 36 properties in FY2020, 41 properties in FY2021, and 44 properties in FY2022). In addition, properties held at the end of term are subject to the calculation. (Properties acquired during the reporting
year for the period from the acquisition date to the end of the term are included).The unit calorific values and the emission factors are based on values in the Act on the Rational Use of Energy and the Act on
Promotion of Global Warming Countermeasures. Until FY2020, greenhouse gas emissions from one hotel operated by a subsidiary were calculated based on our ownership ratio in that property, but startingin FY2021, emissions are calculated based on operational control. The boundary and calculation method for Scope3 are disclosed on our website: https://www.hulic.co.jp/en/sustainability/ecology/*2 Beginning in FY2020, we are calculating total waste disposal at specific properties within the boundary by using weight conversion factors based on actual measurements.
*3 Beginning in FY2021, Hulic’s fixed assets are covered, excluding properties under development and land for lease (220 properties in FY2021, 207 properties in FY2022) . Note that the amount of hot
spring water used at hot spring inns is not included.
*4 Hulic’s earthquake-resistance standards are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of an earthquakewith a seismic intensity of 7 level.
*5 Highly earthquake resistant buildings are those that can safeguard human life and enable continued use of the building with post-earthquake repairs when an earthquake occurs with a seismic intensity of 7 level.
*6 Our target for the employment ratio of persons with disabilities is to be at the statutory employment ratio or higher: 2.2% or higher from 2018 to 2020, and 2.3% or higher from 2021 onward.

14

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

15

Initiatives in theMedium- and LongTerm Management
Plan, by ESG

Hulic’s Materiality

Greenhouse gas emission reduction targets*1:
2024 Scope1+2 70%; 2030 Scope1+2 70%, and Scope3 30%;2050 Scope1+2 and 3 substantially zero (base year: 2019)

RE100 progress rate*2: 10% in 2021, 30% in 2022, 65% in 2023, 100% in 2024

Environment
SocialCorporate
Governance

FY2022—

Scope1
13,151†
Scope2
20,966†
Scope3
239,397†

metric t-CO2e

○

54-61

Electricity used in Hulic Groupbusiness activities

—

—

0.5%

13.5%

47.0%

%

◎

56

Number of renewable energy systems installed in development and reconstruction projects: at least 3 every year

All completed properties each year64

3 (4 properties inboundary)

property◎

56-57

Waste disposal: No numerical target (follow-up item)*3

7 buildings occupied by the head
offices of Hulic and its Group
companies*4

1,166

904

539†

metric ton—

25, 60Percentage of technical measures (such as longer life design, etc.) *5 applied to reduce construction waste: 100% each year

All completed fixed assets each
year

—

—

%

◎

60

420

437

346

1,487

1,855†

thousand m3—

25, 60

9

3

5

6

3

property

◎

61

—

—

1/—

1/2

1/3

time

◎

54, 59

1

time

◎

54

%

◎

25, 62-63

Water intake (water consumption): No numerical target (follow-up item) *3

207 major properties*6
All completed properties each year

Enhance environmental management system

Number of times climate change risks are monitored by the Sustainability Committee and reported to the Board of Directors: 1 or
Hulic Co., Ltd.
more each year
Hulic Co., Ltd.

Percentage of properties meeting Hulic’s earthquake-resistance standards*8: 100% each year

All completed properties each year

Progress toward a 100% highly earthquake resistant buildings*9 in 2029

Hulic-owned fixed assets—
100% (11 properties
in boundary)—

1
100% (4 properties
in boundary)—

3 (8 properties inboundary)
502
100% (8 properties
in boundary)

1
100% (8 properties
in boundary)—

8 (8 properties inboundary)
502
100% (8 properties
in boundary)

1
100% (8 properties
in boundary)

100% (4 properties
in boundary)

100% (4 properties
in boundary)

81.1%

82.1%

%

○

25, 62-63

%

◎

66

Deliver healthy and comfortable lifestyles

Percentage of employees who received medical checkups*10: 100% each year

Hulic Co., Ltd.

100%

100%

100%

100%

100%†

Coexistence with business partners / local
communities

Number of customer satisfaction surveys: 1 or more each year

Hulic Group

1

1

1

1

1

time

◎

63-64

Respond to aging society

Nursing homes Number of units: 5,000 by 2025

Hulic Group (including properties
sold/trusted to REIT)

Strike a work-life balance and advance talentdevelopment

Practice sustainable agriculture

Further strengthen corporate governance andcompliance

—

3,400

3,600

3,700

4,000

room

○

48

100%/
1 people100%/
7 people100%/
3 people100%/
5 people

100%/
11 people%/people◎

66

Usage rate of childcare leaves / Number of people: 100% of eligible female employees /1 male employee or more each year

Hulic Co., Ltd.

Ratio of employees returning to work after childcare leave: 100% per year

Hulic Co., Ltd.

100%

100%

100%

100%

100%

%

◎

66

Usage rate of paid leave*11: 70% or higher each year

Hulic Co., Ltd.

77.0%

78.5%

75.5%

81.5%

77.7%†%◎

66

Percentage of career development interviews conducted: 100% in every year (conducted twice a year)

Hulic Co., Ltd.

—

—

—

100%

100%

%

◎

65

Ratio of female managers: 2020; 20%, 2024; 25%, 2029; 30%

Hulic Co., Ltd.

18.5%

20.2%

23.9%

22.4%

21.5%

%

○

67

Number of seminars provided by the Diversity Promotion Project Team: once each year

Hulic Co., Ltd.

1

1

1

1

time

◎

67

Employment ratio of persons with disabilities: Maintaining the statutory employment ratio or higher (The statutory employment
ratio was 2.2% or higher between 2018 to 2020, and is 2.3% or higher from 2021 onward.)

Hulic Group*13

2.41%

2.42%

2.54%

2.68%†%◎

25, 67

Production area: 15ha by 2025

Hulic Group

—

11

10

13

14

hectare○51

Participation rate in Board of Directors meetings: 80% or higher each year

Hulic Co., Ltd.

98.0%

99.1%

98.7%

99.6%

99.6%

%

◎

25, 73

Number of effectiveness assessment of the Board of Directors: once each year

Hulic Co., Ltd.

1—
5 (4 employees,
1 officer)

—

1*12
2.34%

1

5 (4 employees,
1 officer)

5 (4 employees,
1 officer)

1
5 (4 employees,
1 officer)

time

◎

74

5 (4 employees,
1 officer)

time

◎

78

Number of compliance training conducted: 5 times each year (4 times for employees and once for officers)

Hulic Co., Ltd.

Respond to changes in financial and real estate markets

Number of Risk Management Committee and Fund and ALM Committee meetings: 4 times each year, respectively

Hulic Co., Ltd.

—

4/13

4/22

4/16

4/17

time

◎

76-77

Enhance business continuity plans (BCPs)

Number of BCP drills, inspections of stockpiled food and suppliers: 1 or more each year

Hulic Group

1

1

1

3/4/1*14

3/4/1

time

◎

77

*1 The greenhouse gas emissions are calculated based on the GHG Protocol. The boundary for Scope1 and 2 is the properties where the Hulic Group has control of energy management (30 properties in
FY2019, 36 properties in FY2020, and 41 properties in FY2021). The boundary and calculation method for Scope3 are disclosed on our website: https://www.hulic.co.jp/sustainability/ecology/warming/pdf/
scope3.pdf.
*2 The RE100 progress rate is calculated by dividing the total amount of power generated by Hulic-owned solar photovoltaic equipment in the year by the projected total amount of electricity used at the
Hulic head office building and on the floors occupied by Group companies in 2024.
*3 To be comprehensive when making calculations for waste disposal and water intake (water consumption), we are preparing basic data to change the boundaries for aggregation of this data. As 2020 to2022 are the transition period for this change, we have not set any quantitative targets.
*4 The boundary is Hulic’s head office building and buildings where the head offices of Group companies are located. Beginning in FY2020, we are calculating total waste disposal at specific properties within
the boundary by using weight conversion factors based on actual measurements.
*5 The percentage of properties completed in the given year that used technologies and measures that contributed to a reduction in waste as well as raw materials and other resources based on the Hulic
Guidelines for Longer Life.
*6 Beginning in FY2021,Hulic’s fixed assets are covered, excluding properties under development and land for lease (220 properties in FY2021, 207 properties in FY2022). Note that the amount of hot springwater used at hot spring inns is not included.

Hulic Co., Ltd. Sustainability Book 2023

FY2021
Scope1
11,369
Scope2
17,473
Scope3
210,703

Number of greening projects*7: 1 or more each year

Advance diversity andinclusion and respect for human rights

16

FY2020
Scope1
10,490
Scope2
18,529
Scope3270,066

Number of Environmental Advisory Council meetings held: 1 or more each year

Implement balanced
management withattention to group
governance

FY2019Relevant
Page

Scope1
14,931
Scope225,067
Scope3229,006

Promote the ecosystem protection and restoration

Deliver safe and secure buildings(◎:achieved,○:progressed, △:notprogressed, ―:notsubject to assessment)

Unit
FY2018

Scope1 and 2
Properties where the Hulic Grouphas control of energy management*1
Scope3
Indirect emissions other than
Scope1 and 2 related to Hulic
Group’s business activities*1

Promote efficient use of resources

Promote business
operations with particularemphasis on improving
earthquake resistanceto build a more resilient
society

Coverage(If no fiscal year is given for a target, the target remains effective every year)

Take actions for climate change

Promote carbon-freesociety initiatives throughbuilding operations

Assessment

Results

KPIs / Short-term Targets, Medium- to Long-Term Targets*7 The number of completed properties in each year among those imposed with greening obligation (excludes real estate for sale).
*8 Hulic’s earthquake-resistance standards are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of an earthquake witha seismic intensity of 7 level.
*9 Highly earthquake resistant buildings are those that can safeguard human life and enable continued use of the building with post-earthquake repairs when an earthquake occurs with a seismic intensity of
7 level.
*10 The executive officers, employees (including seconded staff ) and full-time contract staff who were with the Company at the time of application of medical checkup and as of December 31, were counted(excluding personnel who were on leave).
*11 The usage rate of paid leave is calculated by dividing the number of days of paid leave used in the year by the number of days of paid leave granted in the year. The number of days carried over in the year
are excluded.
*12 In FY2020, a video training session was held in lieu of an in-person seminar session to prevent the spread of COVID-19.
*13 Limited to Hulic Co., Ltd. and subsidiary companies that have been certified as special subsidiary companies under the Act on Employment Promotion etc. of Persons with Disabilities. The employment ratio
for persons with disabilities is as of June 1st of each year.
*14 Beginning in FY2021, the number of BCP drills, inspections of stockpiled food and suppliers are disclosed, respectively.

Hulic Co., Ltd. Sustainability Book 2023

Environmental Initiatives

Classified
by ESG

Social Initiatives

Non-financial information KPIs / targets and results, classified by ESG, were shown below.

Corporate Governancetargets, we are addressing to achieve both financial and non-financial aspects with the same amount of importance.

Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report. For FY2022 results, we received assurance froman independent assurance provider for the following values listed in Integrated Report: greenhouse gas emissions Scope1, greenhouse gas emissions Scope2, greenhouse gas emissions
Scope3; waste disposal; water intake (water consumption); percentage of employees who received medical checkups; usage rate of paid leave; and employment ratio of persons withdisabilities. We will continue to disclose information on the progress of our sustainability initiatives to the stakeholders while strive to improve disclosure quality using PDCA cycle.
   Results for KPIs in the years before KPIs were set are indicated with a — (dash).

External Evaluation

We aim to increase our corporate value and solve social issues simultaneously. Therefore, with respect to key performance indicators (KPIs) /Sustainability Data

Key Performance Indicators (KPIs) /Targets and Results

Our Approach to Sustainability

Our Approach to Sustainability

17Our Approach to Sustainability

Environmental Initiatives
Collaboration with External Organizations
Hulic contributes to achieving a sustainable society by
executing environmentally friendly management aswell as by addressing global environmental issues.

Hulic implements environmental initiatives focused on climate change
while actively collaborating with relevant government agencies andindustry groups and engaging in partnerships with NPOs and otherprivate organizations.
There are no discrepancies or conflicts between each industry group

The Real Estate Companies Associationof Japan

The Real Estate Companies Association of Japan (RECAJ) is an organization comprising
companies engaged in urban development and the creation of appealing cityscapes. RECAJ
contributes to the SDGs and is engaged in environmental initiatives for the real estate industry.
As a member of the RECAJ Environmental Committee, Hulic regularly participates in initiatives
related to eliminating environmental degradation.

Fuyo Kondankai Environmental
Business Council

The Fuyo Kondankai Business Council holds regular meetings to introduce environmental
technologies, presents lectures by experts and engages in other efforts aimed at creating andexpanding environmental business opportunities.

Wood Change Council

Hulic engages in ongoing lumber promotion activities through participation in Wood Change
Council, a networking gathering sponsored by Japan’s Forestry Agency to promote the use oflumber in residential and other construction projects.

Japan Economic Research InstituteThis private research institute publishes data and makes recommendations based on proprietary
research into economics and management issues. Hulic participates in the Carbon Neutral
Committee, where we engage in pragmatic discussions regarding private-sector support for therealization of carbon neutrality in 2050 and requests for the government.

Japan Climate Leaders’ Partnership(JCLP)

Viewing preparations for the transition to a carbon-free society as an opportunity for corporate
development, this voluntary organization shares information on the latest trends in Japan andoverseas while recommending government policy proposals and disseminating information
throughout society from a corporate perspective.

Japan Climate Initiative (JCI)The Japan Climate Initiative (JCI) is a network of many entities, such as companies, local
governments, and NGOs, who are working on climate change countermeasures. As a memberof this initiative, Hulic strives to stay updated on the latest information on climate change trends
and developments in Japan and overseas. We then reflect this information in our initiatives.

GX League

Green Transformation (GX) is intended to bring about a shift from an industrial structure
centered on fossil fuels to one centered on clean energy, ushering in a comprehensive
restructuring of economic and social systems. The GX League is a platform of like-minded
companies that discusses GX and launches initiatives to create new markets in cooperation
with industry, government, academia, and finance. Hulic supports the basic concept of thismovement and is working together with others to discuss, promote, and practice GX.

TCFD Consortium

Hulic announced support for the TCFD recommendations and began disclosing informationin line with them. We also participate in the TCFD Consortium to promote the unified
efforts of companies, financial institutions and other organizations that endorse the TCFD
recommendations.

Keidanren Biodiversity Declaration
Initiative

Biodiversity conservation, along with efforts to address climate change and realize a recyclingoriented society, constitute the main pillar of Hulic environmental materiality issue. With theUnited Nations Decade on Biodiversity ended in 2020, Keidanren (Japan Business Federation)
made a proposal to continue this initiative in the Japanese business community with the
Keidanren Biodiversity Declaration (revised edition) announced in June 2020. Hulic endorses
and participates in this Keidanren initiative, and as a member of the international community.

Hulic Environmental Policy
Hulic has formulated the Environmental Policy embodied in our Sustainability Vision and is executing environmentally friendly management towork towards solving various issues in the global environment. The following items are clearly stated in our Environmental Policy.

❶ Environmental Compliance
We strive to create a sustainable society while adhering
to environmental laws and regulations.

❷ Environmental Management System
We contribute to the conservation of global environment
by setting environmental targets and making continous
efforts for improving them.

❸ Environmental Performance
We reduce as much of our environmental footprint as
possible by introducing eco-friendly designs from theplanning stage of development in order to increase
environmental efficiency.

❹ Recycling-oriented Society
We contribute to the creation of a recycling-oriented,
zero waste society, by executing the 3Rs, reduce, reuse,recycle, throughout the life cycle of buildings.

 nvironmental Awareness and Education for❺E
Employees
We provide environmental education and awarenessraising activities to employees so that everyone
can proactively work toward the improvement ofenvironmental performance.

❻ Environmental Communication
We extensively disclose information on environmental
contribution activities, and communicate withstakeholders including local communities to expand thecircle of global environmental conservation.

Consideration for Sustainability in Real Estate Development and Investment
Hulic is committed not only to sustainable real estate investment

impact on the surrounding living environment so that we can gainin accordance with the Corporate Philosophy and Sustainability

their understanding.

Vision, but has also formulated regulations on managing real estate

When outsourcing design and project management or orderingpurchases and development.

construction work, we generally hire companies with the solid

When conducting an investigation of the acquisition of real estate,technologies, credibility, and track records. In addition, when

Hulic always carries out statutory investigations and conduct

developing and reconstructing real estate, we issue instructions

studies on natural environment, specified hazardous substances,on environmentally friendly designs and check whether

and the presence of underground obstacles. In negotiations withenvironmentally friendly designs are adopted at the basic designingcommunities, we provide explanations to those who live nearby

stage, implemental designing stage, and completion stage.

after conducting sufficient investigations and simulations on the18

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

Social Initiatives

Activity Details

Corporate GovernanceGroup Name

External Evaluation

Fundamental
Approach

Hulic will implement environmentally friendly management based on the Hulic
Environmental Policy and work to resolve issues associated with conservation of the global
environment.

Sustainability Data

Basic Policy for Environment

Environmental Initiatives

and policies or the direction of our environmental efforts.

19

Hulic has formulated the Environmental Policy embodied in our

2050.

Sustainability Vision and is executing environmentally friendly

We have decided to set the long-term vision for environment at the

management. We aim to continue sustainable growth throughcenter of our environment related initiatives considering the timebusiness activities, with analyzing and evaluating climate change

frame referred to in the Paris Agreement which was adopted in

mitigation and adaptation, and we are also implementing initiatives

2015 at COP21 (The 21st Session of the Conference of the Parties

to realize a carbon-free, recycling-oriented society envisioned into the United Nations (UN) Framework Convention on Climate

Hulic's Long-term Vision for the Environment with targets for

Change).

Example of Specific Initiatives● Converting to 100% renewable energy forelectricity consumption at all Company-owned
Buildings and achieving RE100 : we have beendeveloping solar photovoltaic equipment that does
not use the FIT system.
● Longer life design buildings : we are reducing

waste by making our longer life design ofLong-term Vision for the Environmentbuildings that can accommodate tenant needs

Natural ventilation(HULIC Head Office Building)Nutural lighting louvers and LED lighting (HULICHead Office Building)flexibly and can be used safely over a 100 years

Hulic executes environmentally friendly management to realize an ideal society ofcarbon-free and recycling-oriented society in 2050.
As a real estate developer, we believe that Hulic can offer value to society by putting our environmental effort into reducing greenhouse gas
emissions, using resources efficiently, and reducing waste.

Roadmap of Long-term Vision for the Environment

as standard specifications in all developments andreconstructions.
● Fireproof hybrid wooden buildings : we havebeen developing and spreading fireproof woodenbuildings using timber that requires less energy for

Environmental Initiatives

Long-term Vision for the Environment

Our Approach to Sustainability

Environmental Initiatives

manufacturing and processing as the construction
Photovoltaic panels (HULIC Head Office Building)material than steel and concrete as well as

Social Initiatives

contributes in fixing carbon.
● Environmentally friendly technologies : we havedeveloped unique natural ventilation and naturallighting systems (louvers) in collaboration with the
Massachusetts Institute of Technology. We havealso obtained patents for and are commercializing
photovoltaic panels, which were jointly developed
The solar photovoltaic equipment that does not
use the FIT system (Saitama Pref.)Japan's first 12-story wooden fireproof commercial
building (Ginza, Tokyo)

Environmental Compliancesubsequent formulation of environmental policies.

related to the environment, including waste and soil pollution,

There were no

the Hulic Group communicates to all employees information on

violations of

the latest trends in environmental laws and regulations and legal

environmental laws

systems, as well as our sustainability-related initiatives and actions

and regulations inincluding environment through the intranet.

the last seven years

We use opinions raised during the compliance training in the(2016 ~ 2022).

External Evaluation*1 E xcludes properties for which we do not have energy management authority including master lease properties, residential properties and non-managerial co-ownership properties, andreal estate for sale, etc.
*2 Base year: 2019*3 S BT-approved near-term targets. Combined Scope1 and Scope2 target is consistent with reductions required to keep the global warming to 1.5 ˚C, the most ambitious goal of the Paris
Agreement.
Scope3 target meets the SBTi’s criteria for ambitious value chain goals, meaning they are in line with current best practice.

With the aim of thoroughly complying with laws and regulations

Compliance training

Major Environmental Laws and Regulations
・Basic Environment Act

Corporate Governancegreening system, natural lighting films etc.

・Act on the Promotion of Sorted Collection and Recycling of・Act on Promotion of Global Warming Countermeasures

Containers and Packaging (Containers/Packaging Recycling Act)・Act on the Rational Use of Energy (Energy Conservation Act)・Construction Waste Recycling Act

・Air Pollution Control Act

・Act on Confirmation, etc. of Release Amounts of Specific Chemical・Noise Regulation Act

Substances in the Environment and Promotion of Improvements to・Vibration Regulation Act

the Management Thereof・Soil Contamination Countermeasures Act

・Basic Law for Establishing the Recycling-based Society・Waste Management and Public Cleaning Act

・Industrial Safety and Health Act

・Act on the Promotion of Effective Utilization of Resources

・Act on Special Measures concerning the Proper Treatment of

Sustainability Datawith another company, and a thin-layered wall

Polychlorinated Biphenyl Waste, etc.

20

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

21

system (EMS)* based on the Hulic Environmental Policy and isconstantly improving it through a PDCA cycle. We have recently

Measures to Enhance the Effectiveness of Energy Conservation Promotion Activities

Environmental Management System (EMS)

Act

Plan

strengthened our governance mechanism centered on Board of

Board of Directors

Director oversight and the Sustainability Committee with regard to・Oversee initiatives
・Instruct reviews andimprovements

climate change based on TCFD recommendations.

Corporate Sustainability
Department* There is no office that has obtained certification for an environmental management
system such as ISO 14001 or EMAS in the Group.

・Analyze and evaluate thecurrent status
・Formulate environmental
policies and measures
・Manage climate changerisks and opportunities
・Set KPIs

Hulic prepares a basic unit chart on the amount of energy usedconsumption for each individual year. The basic unit chart alsoannually per square meter at each of its Company-owned leasecalculates and evaluates electricity, gas, heat (steam, hot water,buildings in order to analyze and understand energy sourced fromcold water) and water usage for each tenant and facility. Going

outside each building is being used. The basic unit chart contains

forward, measures will be considered for how to utilize this data

data for each year from fiscal year 2010, which makes it possible

in more energy efficiency renovations and improved building

to evaluate current conditions and carry out more evaluates the

management practices.

supply of electricity conservation efforts by measuring energy

Introduction of Energy-saving Measures in Cooperation with TenantsContinual Improvement• Environmental risk mitigation and adaptation• Compliance with applicable laws and regulations• Energy and resource conservation• KPI management• Environmental reporting and communications

Based on the building’s electricity consumption for one year,

through more efficient operations, and implement small-scale

adjustments will be made with each tenant, then we examine

renovations as needed.

equipment settings and propose utility cost reduction measures

Check

Do

Sustainability Committee
Risk Management
Committee
Environmental
Advisory Council

Real Estate BusinessGroup companies Division

・Review and evaluate
initiatives regularly
・Evaluate climate change’s
impact on business andreflect in strategies
・Evaluate progress andperformance of KPIs

● Promoting the Visualization of Energy

・Implement business plans
with consideration for the
global environment
・Adopt environmentallyfriendly and energy-saving
technologies
・Develop and use renewableenergy・Collaborate with business
partners, etc.
・Respond to environmental
emergencies (BCPs)

Efforts to Reduce the Amount of Paper Use in Offices
To reduce paper consumption at the Company, we are callingon employees through the company intranet to reduce paper

Paper consumption per person (Hulic nonconsolidated)consumption, promoting both-side printing and intensive printing,and implementing the electronic circulation of documents and an

Social Initiatives

The Group has established a unique environmental management

Environmental Initiatives

Environmental Management System (EMS)

Our Approach to Sustainability

Environmental Initiatives

electronic approval system as required.
Additionally, we are promoting digitalization to improve work
efficiency, while transitioning to a paperless business flows in all
operations and meetings.

Corporate Governance

PLAN：Planning and Promotion of Environmental Issues
We will formulate response policies and measures based on our recognition of current environmental conditions, including the impact ofclimate change on Hulic's businesses. Further, we will set KPIs including but not limited to greenhouse gas emissions reduction targets andmanage the results.

CHECK：Confirmation and Inspection
Confirmation and inspection of initiatives through monitoring andExecute business plans in line with CSR Procurement Policy in collaboration with the Group companies, business partners, etc.

assessment by both in-house parties and external advisors in orderfor constant improvement of EMS.

Energy Conservation Promotion Activities for Our Leased BuildingsWEB

Sustainability Committee
https://www.hulic.co.jp/en/sustainability/about/philosophy.html#anc9
Risk Management Committee
https://www.hulic.co.jp/en/sustainability/governance/risk_management.
html#anc1

Activities to Promote Energy-saving Cooperation with

Adoption of Energy-saving Technologies

Building Management Companies

Hulic has actively worked on the promotion of energy savings,

Hulic has created an energy management standard, which it shares

use of renewable or unused energies, and greening promotion,with property management companies in charge of its properties,

etc. as part of measures for climate change in engaging in new

in order to rigorously manage the progress of energy conservation

development and managing

activities. The energy management standard was created toexisting buildings owned bypromote more efficient energy saving activities at buildings, and it

Hulic. In addition, we will

Continual improvements and oversight by the Board of Directors on environmental initiatives reflecting the results of in-house as well asserves as a guideline for management, measurement, recording,proactively introduce newexternal advisor's confirmation and inspection.

maintenance, and inspections related to the rationalization ofenergy-saving technologies

energy use based on building type and size. This standard applies

and improvements of existing

to all forms of energy, including electricity, gas, and water (water

performance. In addition, Hulicand sewerage).

will conduct its own research

Environmental Advisory Council
https://www.hulic.co.jp/en/sustainability/ecology/tcfd/governance.
html#anc5

Sustainability Data

ACTION：Review and Improveand development on energyWEB

Initiatives for Energy Conservation
https://www.hulic.co.jp/en/sustainability/ecology/warming/efficiency.html

External Evaluation

DO：Operations

saving technologies.

Effective Use of Unused Energies
https://www.hulic.co.jp/en/sustainability/ecology/warming/unused.html

22

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23

Sustainability-Linked Bonds

We work on environmental education and awareness activities in order to enable each employee to voluntarily act toward the improvement

Hulic has issued Japan’s first Sustainability-Linked Bonds (“theThe Bonds are the world’s first publicly offered Sustainability-Linkedof environmental performance.

Bonds”) in October 15,2020.

Bonds that align with the “Sustainability Linked Bond Principles”

For the issuance of the Bonds, the Company applied for “the(“SLB Principles”) published by The International Capital Market

Public Offering for Model Cases in the Model Creation Projects on

Association (“ICMA”) (as of the date of this announcement).

Sustainability Linked Loans 2020” launched by the Ministry of the

In February 2021, we received the silver prize as well as theEnvironment (the “Public Offering”) and the Bonds were highly

Minister of the Environment award in the issuer category of theEnvironmental Education
Satoyama Conservation Activities
The Hulic Group participates every year in the Tokyo Green Shipand trimming weeds and shrubs at the foots of mountains.

evaluated for the modeling and pioneering features and selected

second ESG Finance Award Japan hosted by the Ministry of the

Action, organized by the Bureau of Environment of the Tokyo

Participants in 2023 planted rice. These activities, with participation

as the first model case in the Public Offering.

Environment for this bond issuance.

Metropolitan Government, to raise environmental awareness, andby many employees every year, provide them good opportunities toengages in volunteer activities such as rice planting, rice harvestinglearn about biodiversity.

Third-party verification
The compliance of the bonds with the Ministry of Environment
Guidelines and SLB Principles has been confirmed by the Ministryof Environment and its contractors (JCR, E&ES).
Progress against the targets is reviewed annually by JCR.

WEB

Pre-issuance report (Japanese).
https://www.hulic.co.jp/sustainability/ecology/management/pdf/
report_202008.pdf
Post-Issuance Verification Report (Japansese, issued in August 2021)
https://www.hulic.co.jp/sustainability/ecology/management/pdf/
report_202108.pdf

Environmental Initiatives

Environmental Awareness and Education for Employees

Our Approach to Sustainability

Environmental Initiatives

Post-Issuance Verification Report (Japanese, issued in September 2023)
https://www.hulic.co.jp/sustainability/ecology/management/pdf/
report_202309.pdf

Satoyama Conservation Activities: rice planting, nature observation

New Hire Training
joining the company includes detailed explanations regarding theconstruction initiatives, all in an effort to inculcate awareness ofdevelopment of renewable energy equipment, the introduction

the environment as soon as new employees are hired.

of longer life designs and eco-friendly technologies into building

Overview of the Bonds
10th series unsecured subordinated bonds (with an inter-bond pari passu clause, Sustainability-Linked Bonds)
Maturity

Afforestation Training
Hulic's policy is to plant trees used for fireproof wooden buildings
as an initiative promoting forest regeneration to realize a recyclingoriented society and reductions in greenhouse gas emissions
targeting a carbon-free society. To this end, Hulic conducts

Issue amount

10 billion yen

SPTs linked with
the issue terms①Achievement of RE100 by 2025
②Completion of Japan's first 12-story fire-resistant wooden commercial facility in the Ginza 8-chome Development
Plan by 2025
*The Bonds set out additional SPTs subject to monitoring

afforestation training so that employees experience the forest
Interest rate

An interest rate of 0.44% per annum will be applied during the period from the day immediately following October
15, 2020 through October 15, 2026.
A coupon step-up of 0.10% is triggered if any of the SPTs linked with the issue terms has not been achieved as ofAugust 31, 2026

Pricing date

October 9, 2020

Issue date

October 15, 2020

Maturity date

October 15, 2030

Credit rating

A+ (Japan Credit Rating Agency Ltd., “JCR”)

lifecycle. This activity provides opportunities to think about
environmental protection and communicate across the entire
Company.
(In FY2021 and FY2022, afforestation training was cancelled due

Sustainability Data

to COVID-19.)

10 years

Corporate Governancedevelopment and environmental efforts such as fireproof wooden

External Evaluation

Training for newly hired recently graduated employees uponSocial Initiatives

Post-Issuance Verification Report (Japanese, issued in August 2022)
https://www.hulic.co.jp/sustainability/ecology/management/pdf/
report_202208.pdf

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25

Solar power generation results and RE100 rate of progress

SPTs&Progress against targets
1. Achieve RE100 goals by the end of FY2025
In 2020, Hulic began RE100 initiatives to convert to 100%

2023, two years ahead of schedule.

electricity sourced from renewable energy for the electricity

This is the first time in Japan that a company has achieved theconsumed across the Group, including subsidiaries. The aim was toRE100 goals by developing new solar photovoltaic equipment

achieve the RE100 goals by the end of FY2025.

without relying on existing renewable energy plants andAs a result of efforts to promote the development of new solar

equipment.

Solar power generation results(as of the end of December 2022)

RE100 rate of progress(as of the end of December 2022)*

28,177MWh59.8％* RE100 rate of progress is reported to CDP, and the calculation method is as follows.
the amount of power generated by Hulic-owned solar photovoltaic equipment for one year ÷ the total amount of electricity used at the Hulic head office building and on the floors
occupied by Group companies in one year

Our Approach to Sustainability

Environmental Initiatives

Progress against the target

2. Completion of Japan's first 12-story fire-resistant wooden commercial facility in the Ginza 8-chome
Development Plan

List of solar photovoltaic equipment developed by the Company

Since 2018, Hulic has been developing fire-resistant wooden

to maintain a certain number of young, CO₂ absorbing trees bybuildings using timber that requires less energy for manufacturing

planting new trees after cutting down old trees to use as building

and processing, in response to Japan Forestry Agency’s effort tomaterials. This initiative for fire-resistant wooden buildings helps

expand use of wood under a series of initiatives to reduce overallpromote forest circulation, which in turn leads to reduction in CO₂.

CO₂ emissions. Trees absorb CO₂ in the air and provide a carbon

Hulic is developing Japan’s first 12-story, fire-resistant wooden

January 2021

Omiya Town 1, Wakaba Ward, Chiba
Prefecture

February 2021

Meishizawa, Tamura City, Fukushima
Prefecture

May 2022

Kazo City 4, Saitama Prefecture

May 2022

Fujimimachi, Suwa District, Nagano
Prefecture

dioxide fixing solution as they grow, so an abundance of trees incommercial facility (hybrid construction combining mainly domestic

May 2022

Higashinoda, Oyama City, Tochigi Prefecture

the nation’s land can help cut down CO₂ levels. Considering trees

wooden and steel structures) in Ginza, one of its focus areas.

May 2022

Shimoishibashi, Shimotsuke City, Tochigi
Prefecture

are losing ability to absorb CO₂ as they get older, it is possible

Construction was completed in October 2021.

May 2022

Koganei, Shimotsuke City, Tochigi Prefecture

Progress against the target

May 2022

Kaminokawamachi, Kawachi District, Tochigi
Prefecture

Completed in October 2021.
Forest Circulation

March 2021

Gotomaki, Tamura City, Fukushima Prefecture

April 2021

Kikutamachi, Koriyama City, Fukushima
Prefecture

May 2021

Kazo City 2, Saitama Prefecture

May 2021

Kakeuma,Amimachi, Inashiki District, Ibaraki
Prefecture

May 2022

Fujii 1, Mibumachi, Shimotsuga District,Tochigi Prefecture

September 2021

Hiwadamachi, Koriyama City, Fukushima
Prefecture

May 2022

Fujii 2, Mibumachi, Shimotsuga District,Tochigi Prefecture

October 2021

Mihotamachi, Koriyama City, Fukushima
Prefecture

Atamimachi 1, Koriyama City, Fukushima
November 2021
Prefecture
November 2021 Wakakodama, Gyoda City, Saitama Prefecture

Social Initiatives

Kazo City 1, Saitama Prefecture

Location

September 2022 Narisawa, Kumagaya City, Saitama Prefecture
October 2022

Ojimacho, Ota City, Gunma Prefecture

October 2022

Nakagawara, Inawashiro Town, Fukushima
Prefecture

Corporate GovernanceOctober 2020

Completion

November 2022 Sakai 2, Fujimicho, Nagano Prefecture

December 2021

Omiya Town 2, Wakaba Ward, Chiba
Prefecture

November 2022 Nakane, Inzai City, Chiba Prefecture

December 2021

Koumimachi, Minamisaku District, Nagano
Prefecture

November 2022 Ushibukuro, Kisarazu City, Chiba Prefecture

December 2021

Matate, Bandou City, Ibaraki Prefecture

December 2022

Sekishinden, Konosu City, Saitama Prefecture

December 2021

Kazo City 3, Saitama Prefecture

December 2022

Shirakawado, Gyoda City, Saitama Prefecture

December 2021

Oppara,Amimachi, Inashiki District, Ibaraki
Prefecture

January 2023

Omiya Town 3, Wakaba Ward, Chiba
Prefecture

April 2022

Atamimachi 2, Koriyama City, Fukushima
Prefecture

January 2023

Fujimi 1, Fujimi Town, Nagano Prefecture

January 2023

Fujimi 2, Fujimi Town, Nagano Prefecture

April 2022

No, Gyoda City, Saitama Prefecture

January 2023

Umezawa, Honjo City, Saitama Prefecture

April 2022

Mibukou, Mibumachi, Shimotsuga District,Tochigi Prefecture

April 2023

Kokubunji, Shimotsuke City, Tochigi
Prefecture

April 2022

Kaiharatsukamachi, Ryugasaki City, Ibaraki
Prefecture

May 2023

Kinuita, Shimotsuke City, Tochigi Prefecture

May 2022

Ozatomutsuai Town, Tsu City, Mie Prefecture

May 2023

Geino Town, Tsu City, Mie Prefecture

May 2022

Taki Town, Taki District, Mie Prefecture

May 2023

Tokiwa Town, Tamura City, Fukushima
Prefecture

May 2022

Kizawa, Oyama City, Tochigi Prefecture

June 2023

Kanoko, Ishioka City, Ibaraki Prefecture

November 2022 Kamimuzata, Togane City, Chiba Prefecture

External Evaluation

Location

Sustainability Data

Completion

Environmental Initiatives

photovoltaic equipment, we achieved the RE100 goals as of May

Total power generation capacity of solar photovoltaic equipment completed in FY2022:35.8MW

26

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27

Initiatives for Climate Change
Ginza 8-chome Development Plan (HULIC &New GINZA 8) (fire-resistant commercial building)

Location

Structure
No. of floors

Commercial facility
Ginza 8-chome(four-minute walk from
Shinbashi Station)
Hybrid construction combining wooden andsteel structure

Greenhouse Gas Emissions Reduction Targets
In November 2021, Hulic formulated new greenhouse gas emissions reduction targets.

12 floors above ground, 1 below

Site area

251.98m2

Total floor area

2,459.55m2

GHG Emissions Reduction Targets (Absolute contraction targets, Base Year: 2019)

Design and construction

Takenaka Corporation

Exterior design supervisor

Kengo Kuma and Associates

Completion

Targeting the realization of the carbon-free society envisioned in Hulic’s Long-Term Vision
for the Environment, we are combatting climate change through environmental initiatives,
including achieving RE100 in 2023 and converting to 100% renewable energy
sourced electricity for electricity consumption at all company-owned buildings by 2029.

Fundamental
Approach

October 2021

Scope 1 and 2*
Scope 3*

1

2

2024

2030

2050

Reduced by △70%

Reduced by △70%

Sustaintially zeron.a.

Reduced by △30%

Sustaintially zero

*1 Emissions from energy consumptions by the reporting company.
Scope 1: emissions from operations that are owned or controlled by the reporting company.
Scope 2: emissions from the generation of purchased or acquired electricity, steam, heating, or cooling consumed by the reporting company.
*2 Greenhouse gas emissions from external companies affiliated with internal business activities (in the supply chain). Targets were set for Categories 11 and 13, which cover approximately
80% of Scope3.

Social Initiatives

Hulic has had its near-term (by 2030) emissions reduction

Environmental Initiatives

Asset type

Our Approach to Sustainability

Environmental Initiatives

targets approved by the Science Based Target initiative*3(SBTi)as consistent with levels required to meet the goals of the Paris
Agreement. The targets covering greenhouse gas emissions fromthe Company’s operations are consistent with reductions required
to keep the global warming to 1.5℃, the most ambitious goal of
the Paris Agreement. In addition, the Company’s target for the

The list of investors that have committed to investing in the Bonds
is included in the press release.

WEB

Press release (English)
https://www.hulic.co.jp/en/sustainability/ecology/management/pdf/
release_en_20201009.pdf

Received the silver prize in the second ESG Finance Award Japanfor ambitious value chain goals, meaning they are in line withcurrent best practice.
*3: S cience Based Targets initiative (SBTi)
A collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), and is an international initiative that
promote private sector to develop GHG emissions reduction targets in line with Paris Agreement (long-term temperature goal is to keep the rise in mean global temperature to well
below 2°C and limiting below 1.5˚C above pre-industrial levels), then validate and approve targets submitted to them. For approval, GHG emissions need to comply with GHG Protocol
accounting and reporting standards, and near-term reduction targets need to be set between 5 and 15 years from the date of target submission to SBTi.

In February 2021, we received the silver prize as well as the Minister of the Environment award in the issuer category of the second ESG
WEB

Long-term Vision for the Environment
https://www.hulic.co.jp/en/sustainability/ecology/management/vision.html

Sustainability Data

External Evaluation

Finance Award Japan hosted by the Ministry of the Environment for this bond issuance.

Corporate Governance

List of investors that have committed to investing in the Bonds

emissions from its value chain (Scope 3) meets the SBTi’s criteria

28

Hulic Co., Ltd. Sustainability Book 2023

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29

2019

• Downstream Scope 3 emissions: implementing measures to

2020

2021

2022

plants that will generate 310 GWh of electricity which isincrease energy efficiency of properties including introduction

Scope1 Direct Emissions

14,931

10,49011,36913,151†equivalent of estimated annual electricity consumption at allof environmentally friendly technologies, energy conservation

Scope2 Indirect Emissions(Market based)

25,067

18,52917,473

20,966†2Company-owned properties* in 2029. The renewable energy-

renovations, use of unused energies, improvement of energy

Subtotal Scope 1 and Scope 2

39,99729,01928,842

34,118based electricity generated will be supplied to all Company-

efficiency by reconstruction, and making efforts to pursue

owned properties.

reduction of total energy consumption of leasing properties in

1 Purshased goods and services

18,30324,72324,497

33,1222 Capital goods

20,73039,142

19,63830,727

3 Fuel and energy related activities

6,597

5,132

5,238

6,112

—

—

—

—

in 2023 by using 100% renewable sources forthe energy required for Hulic Group's business activities.
● Invest in developing small hydroelectric plants in addition to non-FIT solar power plants in order to secure resilience of renewableenergy sources*4.
● Implementing value chain (Scope 3) engagements:• Upstream Scope 3 emissions: in cooperation with architecturaldesign companies and contractors, implement ways to reduce
GHG emissions from construction including switching theelectricity sources used at construction sites to renewableenergy; adding items that are adoptable to design guidelines

cooperation with tenants.
*1:non-FIT
Does not use a feed-in tariff (FIT) system for electricity that requires utility companies
to purchase electricity generated using renewable sources for a certain period of time
at a price specified by the national government.
*2:All Company-owned properties
Excludes single-tenant lease properties, residential properties and unmanaged sharedproperties for which the Company does not manage energy, and real estate for sale.
*3:RE100 (Renewable Electricity 100%)
An international initiative in which member companies aim to use 100% renewablesources for the energy required for their business activities.
*4:Secure resilience of renewable energy sources
Supply electricity stably by using multiple energy sources.

WEB

and standards; utilizing a calculation sheet for estimating theamount of carbon stored in timber, and promoting wooden
construction and conversion initiatives.

Effective Use of Renewable Energy
https://www.hulic.co.jp/en/sustainability/ecology/warming/energy.html

Initiatives for Energy Conservation
https://www.hulic.co.jp/en/sustainability/ecology/warming/efficiency.html

Effective Use of Unused Energies
https://www.hulic.co.jp/en/sustainability/ecology/warming/unused.html

Status of Greenhouse Gas Emissions
Greenhouse Gas Emissions and Total Energy Consumption
Greenhouse Gas Emissions and Total Energy Consumption are shown below.

4 Transportation and delivery (upstream)
5 Waste generated in operations

2,276

2,296

1,419

3,016

6 Business travel

244

251

194

176

7 Employee commuting

455

430

283

307

8 Upstream leased assets

—

—

—

—

9 Downstream transportation and distribution

—

—

—

—

10 Processing of sold products

—

—

—

—

36,98488,28043,31533,033

193

484

1,005

712

143,225

109,328

115,114132,191

14 Franchises

—

—

—

—

15 Investments

—

—

—

—

Subtotal Scope 3

229,006

270,066

210,703239,397†

Total Scope 1, 2 and 3

269,004

299,085

239,545

273,514

11 Use of sold products
12 End-of-life treatment of sold products
13 Downstream leased assets—: Not applicable.
Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
Hulic manages the amount of permissible leaks as an administrator based on the Act on Rational Use and Proper Management of Fluorocarbons and they are included in thecalculations of greenhouse gas emissions. Note that we do not report or disclose this data as the amount of leaks is below the reporting standards.

WEB

Calculations of Greenhouse Gas Scope 3 Emissions
https://www.hulic.co.jp/en/sustainability/ecology/warming/pdf/CalculationsofGreen
houseGasScope3Emissions.pdf

Total Energy Consumption

Scope1

(MJ)

2019

2020

2021

2022

262,247,523

204,332,023

212,257,609

251,171,730

Scope2507,869,906

395,386,960

391,691,676

442,998,170

Total

770,117,429

599,718,983

603,949,285

694,169,900

External Evaluation3● Achieved RE100*

Scope 3

Environmental Initiatives

solar powerSocial Initiatives

1● Invest JPY66 billion in developing new non-FIT*(t-CO2e)Corporate GovernanceGreenhouse Gas Emissions

Hulic’s Actions for Achieving the Targets

Our Approach to Sustainability

Environmental Initiatives

Green Procurement Initiatives
Hulic is working to reduce environmental impacts throughout all of our operations, and we ask our business partners, including suppliers, tocooperate with the following green procurement policy:
Sustainability Data

Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
*1 The greenhouse gas emissions are calculated based on the GHG Protocol. The boundary for Scope1 and 2 is the properties where the Hulic Group has control of energy management (30properties in FY2019, 36 properties in FY2020, and 41 properties in FY2021, and 44 properties in FY2022). In addition, properties held at the end of term are subject to the calculation(Properties acquired during the reporting year for the period from the acquisition date to the end of the term are included). The unit calorific values and the emission factors are basedon values in the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures. Until FY2020, greenhouse gas emissions from one hotel operated bya subsidiary were calculated based on our ownership ratio in that property, but starting in FY2021, emissions are calculated based on operational control.
*2 Thousand metric tons

1. To engage in energy-saving activities and reduce GHG emissions;
2. To reduce the amount of water consumption as much as possible;
3. To carry out a biodiversity-friendly business;
4. To fully prevent environmental pollution; and5. To make efforts to save resources and reduce the amount of waste.

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31

Initiatives for Environmentally Friendly Technologies
Introducing CO2 Reduction Technologies at the Hulic Head Office Building
Photovoltaic power generation panels are installed on the rooftop,

is adjusted with motion and brightness sensors. To improve heatand rainwater is used for flush toilets. LED lighting systems are

insulation performance of exterior walls, Low-E pair glasses andadopted in the entire building including office rooms. Brightness

wood blinds are used.

Natural Lighting System

Our Approach to Sustainability

Environmental Initiatives

Image of natural lighting

Our natural lighting system uses speciallyshaped natural lighting anidolic louvers codeveloped with MIT to capture constantly
changing sunlight on the ceiling of rooms
during changing seasons and times (elevationand orientation) without the use of power.
Highly reflective metal panels are used forEnvironmental Initiatives

interior ceilings, which supply a consistentamount of pleasant natural light to the topof office desks. This system has been installedat the Hulic Head Office Building as well as atthe Hulic Shinjuku Building, Hulic Annex, andother buildings.

Calculations at the Hulic Head Office Building
CO2 can be effectively reduced by introducing such top-level environmental technologies. In CASBEE (Comprehensive Assessment System for
Built Environment Efficiency), BEE scored 3.3, corresponding to rank S.

ERR*

CO2
emissions
reduction

natural ventilation system, jointly researched

Cross-Sectional View of Natural Ventilation

External Evaluation

Natural Ventilation System
Hulic Head Office building introduced an unique* PAL=An assessment indicator for the energy efficiency of building plans andenvelope (exterior walls and roof, etc.)* ERR= Shows the percentage by which primary energy consumption has been
reduced in facilities and systems

Commercialization of Environmental Technologies

and developed with MIT in which air flows andNatural Lighting System (patent awarded)

other factors in the office area were meticulously

The natural lighting system was developed as a result of a three-[Summary of patent]

simulated. This system automatically take inyear research/development project that Hulic engaged in with theName of invention: Lighting louver unit

confortable cooler air from outside during

Massachusetts Institute of Technology. With a specially designed

Registration No.: 6021103

seasonable intervals so that favorable conditions

natural lighting louver(anidolic louvers), it can take in a certain

Registration date: October 14, 2016of office can be maintained even if the air

amount of sunlight to the ceiling surface of a room without

conditioning is shut. In addition, annual energy

using electricity in accordance with different seasons and times

consumption of the Head Office building isof day. The greatest features of this system are that it realizes areduced by the introduction of this system.

comfortable level of illuminance with natural light, which was

Furthermore, in order to realize the use of apreviously unattainable, and also that it has a simple, maintenance-

natural ventilation system in a dense urban area, afree structure even though it comes with a fixed type.

Sustainability Data

Natural Ventilation and Natural Lighting System Developed through Joint Research with the
Massachusetts Institute of Technology (MIT)=225 MJ/year ㎡ … Standard value of officebuildings minus 25%=35% … The highest class in the energysaving performance standard of Tokyo
metropolitan government=40% reduction compared to an average
office building in the Tokyo Metropolitan
Government's energy efficiency
performance standards.
=CO2 emissions throughout the building's
entire life cycle were reduced by 30％

Corporate Governance

PAL*

Social Initiatives

Effects of CO2 Reduction

silencer chamber is attached in the intake opening
to minimize outside noise affecting inside work space.

32

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33

Photovoltaic Panels (patent awarded)

Our Approach to Sustainability

Environmental Initiatives

Introduction of LED Lighting System

The special feature of Hulic’s photovoltaic panels co-developedwith Taiyo Kogyo Corporation and Gifu Plastic Industry Co., Ltd.

Hulic has realized a lighting conditions

is that they are lightweight, freely designable, and easy to install.

preferable for customer work style as well as a

We realized a lightweight photovoltaic panel with high strength

significant level of greenhouse gas emissions

by using aluminum board and plastic-based honeycomb-panel

reduction through energy saving by adjustingmaterial. Its weight is about half that of a conventional solar panel.

the level of LED lighting automatically with

The panel can be freely designed through customization and candaylight and motion sensors.

be made in various shapes. Equipped with a sliding mechanism
Environmental Initiatives

using a special metal fitting, it can be relatively easily installed.
Thus, it can be installed even in a building with strict loading
conditions such as in repairing works.
[Summary of patent]
Name of invention: Photovoltaic generation system and assembly

Photovoltaic panels (patent awarded)

methodRegistration No.: 6018856
Registration date: October 7, 2016

As a part of environmental business, Hulic jointly has developed

Introducing Low Energy Consumption Facilities to Nursing Homes

with TOHO LEO CO., Ltd. and Daito Techno Green CO., Ltd. a wall

We have an environmentally friendly plan for aiming to help

greening system (thin-layer wall greening system) that can be easily

realize a sustainable society including but not limited to LED

installed in existing buildings. We completed development of thelighting, highly efficient water heater, equipping with photovoltaic

product and obtained a joint patent for it with three companies.

panels on their rooftops to provide electric power to the common

Social Initiatives

Commercialization of Thin-layer Wall Greening System (patent awarded)materials, adopting roof greening, keeping natural lighting, natural

Name of invention: Greening device and its method

drafting by a natural ventilation system and installing panel heating

Registration No.: 6460942

and cooling system, to name a few.

Registration date: January 11, 2019

Initiatives for Energy Conservation
Introduction of LED Lighting
Use of LED lighting, which is brighter than incandescent lamps andreduce waste and effectively use resources. In princple, all Hulic’s

fluorescents and uses less electricity, helps to significantly reduce

development projects use LED lighting. We are also sequentiallypower consumption and greenhouse gas emissions. Furthermore,

switching over to high-efficiency lighting and LED lighting at ouras LED lighting is long lasting, it is possible to not only save

existing buildings as part of energy efficiency renovation work.

Photovoltaic panels on the rooftop(Sonare Meguro Fudomae)

Customer OutreachIn 2022, as part of our initiatives for decarbonization acrosscommitment to the environment as building owners. Going

the entire value chain, we conducted explanatory sessions withforward, we will continue outreach to customers and work toward

our customers—focusing on office tenants—to discuss ourmore energy efficiency.
External Evaluation

Commercialization of thin-layer wall greening system

Atrium which installed natural ventilation
system(Hospitalment Musashino)

Sustainability Data

the trouble of maintenance such as changing bulbs, but also

Space with LED lighting system (Hulic Ginza Sukiyabashi Building)34

Hulic Co., Ltd. Sustainability Book 2023

Corporate Governanceareas and others. Additionally, we are keen on using of wood in[Summary of patent]

Hulic Co., Ltd. Sustainability Book 2023

35

on renewable energy systems at three investments or more in eachequipment through proprietary development and ownership, as

year. Results in FY2022 were three.

an alternative main power source for reducing greenhouse gas
emissions.
Additionally, we are installing various renewable energy systems at

Long-term Vision for the Environment
https://www.hulic.co.jp/en/sustainability/ecology/management/vision.
html

WEB

our properties, and have set a non-financial target for the number

Greenhouse Gas Emissions Targets
https://www.hulic.co.jp/en/sustainability/ecology/warming/roadmap.html

of capital investments in development and reconstruction projects

Converting to 100% Renewable Energy Sourced Electricity for Electricity Consumption at All
Company-owned Buildings
In accordance with Hulic's Long-term Vision for the Environment,

our renewable energy procurement targets by developing andwe established the climate change goals of achieving RE100*1 byretaining our own renewable energy facilities that do not use the2024 and converting to 100% renewable energy sourced electricity

FIT system*3 (non-FIT), rather than by entering into renewable2

In recognition of our efforts in achieving RE100*1 by 2024 andconverting to 100% renewable energy for electric consumption at
all Company-owned buildings*2 by 2030, which we are promoting
to realize a decarbonized society, we received the New Energy
Foundation Chairman's Award at the 2021 New Energy Awards,
along with Hulic Property Solutions Co., Ltd. and ADVANCE CO.,LTD.
The New Energy Awards, organized by the New Energy Foundationand supported by Japan’s Ministry of Economy, Trade and Industry,

looks widely for the application of
products related to new energy as
well as activities to adopt and raiseawareness of new energy. The
goals are to further promote theadoption, spread, and awarenessof new energy, along with therecognition for our outstandingachievement.

Evaluated points
In this initiative, Hulic develops and owns non-FIT solar power
generation and small hydropower generation with Advance as adevelopment partner, and promotes renewable energy. As a retailelectric supplier, Hulic Property Solutions is building a "corporate
PPA mechanism" that purchases all of the electricity generated andsupplies it to Hulic's buildings*. At the New Energy Foundation
Chairman's Award, we received high praise for the "additionality"of new development of renewable energy, the uniqueness ofcorporate PPA mechanism, and the advancedness of making ourown buildings into ZEB (zero energy building).

for electricity consumption at all Company-owned buildings*

energy contracts with electric power companies. We aim to use

by 2030. We have achieved RE100 in 2023. In addition, we haveelectricity derived from renewable energy sources at all Company-

moved forward one year to 2029 to convert to 100% renewable

owned properties, supplied from our solar photovoltaic equipment

energy sourced electricity for electricity consumption at allthat do not use the FIT system. In addition, we have established a

Company-owned buildings.

corporate PPA*4 mechanism whereby Hulic Property Solutions, a

To achieve these goals, we plan to invest JPY66 billion in newly

Group company, acts as a retail electricity supplier (power producer

developing non-FIT*3 solar power plants. The level of greenhouseand supplier, or PPS), purchasing electricity derived from Company-

gas emissions reduction is approximately 26,000 t-CO2e (equivalentowned renewable energy sources and selling it to Company-owned

As solar power does not generate electricity at night and thedeveloping energy resilience (a stable power supply from varied

to 15,000 household annual emissions) when RE100 is achieved,

properties. This will ensure stable sourcing of renewable energy-

amount of power generated fluctuates depending on the weather,power sources).

and is approximately 135,000 t-CO2e (equivalent to 75,000

derived electricity over the long term.

we are developing and operating our own small hydroelectric

Note that small hydroelectric plants will not be used as renewable

plants*1 that can generate electricity both day and night regardless

power sources as at 2029 since they use the FIT system.

household annual emissions) when converting to a 100%
renewable energy sourced electricity for electricity consumption at
all Company-owned buildings is realized.
What makes Hulic's approach unique is that we aim to achieve

As of June 2023, completed• 49 solar power plants with 63MW plant capacity• 2 small hydroelectric plants with 400kW plant capacity*1 Target years at the time of award. Achieved RE100 in 2023.
*2 Target years at the time of award. Excludes properties for which we do not have energy management authority including master lease properties, residential properties andnon-managerial coownership properties, and real estate for sale, etc.

Small Hydroelectric Plantsof the weather from long-term perspective with the goal of

Mechanism Facilitating Stable Energy Supplies Utilizing Multiple Power Sources (image)

External Evaluation*1 An abbreviation of “Renewable Electricity 100%”, or sourcing 100% of electricity
needed for business activities from renewable energy sources*2 Excludes properties for which we do not have energy management authority
including master lease properties, residential properties and non-managerial
coownership properties, and real estate for sale, etc.
*3 Feed-in tariff (FIT): A system for electricity that requires utility companies topurchase electricity generated using renewable sources for a certain period oftime at a price specified by the national government.
*4 An agreement in which corporations, municipalities and other legal entities
purchase renewable electricity from power providers on a long-term basis.
Solar photovoltaic equipment that do not use the FIT system

Fully Internal Group Corporate PPA Model● Long-term stable supply of renewable energy
from Hulic-owned power sources

Environmental Initiatives

Hulic promotes the use of renewable energy power generation

Social Initiatives

Received New Energy Foundation Chairman’s Award at the Fiscal Year 2021 New Energy Awards

Initiatives for Utilizing Renewable Energy

Corporate Governance

TOPICS

Effective Use of Renewable Energy

Our Approach to Sustainability

Environmental Initiatives● Secured profitability in power generation andlow-cost supply of renewable electricity
Hulic-owned buildings

Developer

100% ofrenewableenergy purchased

Retail electricity supplier

Hulic Property Solution Co., Ltd.

Renewable energy certificates
Non-FIT solar + post-FIT small hydroelectricNon-fossil fuel market

Renewableenergy supply

100% renewableenergyUnique traits of Hulic's renewable energy sources
・New development and 100% in-house ownership of renewable energy facilities ▶ New development contributes to reduced greenhouse gas emissions (additionality)
・Non-FIT solar photovoltaic equipment ▶ No market purchase of renewable energy certificates36

Hulic Co., Ltd. Sustainability Book 2023

In May 2021, Hulic’s first small hydroelectric was completed andhydroelectric power plants.

began operations in Kawabamura, Tone-gun, Gunma Prefecture.

And its second small hydroelectric began operations in Takashima-

Mindful of the location and conditions, a range of autonomous,

city, Shiga Prefecture in May 2023.

electrification, and remote technologies were introduced. These

From the perspective of the energy mix, Hulic plans to continue

initiatives have resulted in a state-of-the-art power plant expecteddeveloping and using small hydroelectric power generators.

Sustainability Data

Advance, Co., Ltd.
Owner of power
generation facilities

to operate at higher operating rates than conventional small*1 Small-scale hydroelectric power generation with an output of 1,000 kW or less. As it generates electricity stably day and night, it is considered to be a stable power supply with relatively
high operating rates among renewable energy facilities.

Hulic Co., Ltd. Sustainability Book 2023

37

Installing Solar Photovoltaic Panels on the Rooftop for Onsite Consumption

・Overall length: 1.4 km

We have been making effort to reduce GHG emissions by installing・Height difference: Approximately 91 m

photovoltaic cell modules on the rooftop of buildings and use

・Power generation scale: 199 kW

solar power as a supplemental energy source. A solar photovoltaic

・Estimated annual power generation: Approximately 1.1 GWh

array was installed on the roof at Hulic Logistics Kasai, a logistics・H ulic plans to supply electricity to its owned properties after thecenter completed in May 2022. The renewable energy (electricity)

FIT period has ended (20 years hence)

generated is being used onsite.

Environmental Initiatives

Kamogawa small hydroelectric plant overview
・Water source: Usune River in Kamogawa, Shiga Prefecture

Our Approach to Sustainability

Environmental Initiatives

Hulic Logistics Kasai(power generation capacity 0.6MW)
Kamogawa small hydroelectric plant water intake

Installation of Solar Heat Panels
Small Hydroelectric Plant Construction (Image)

Hulic's hotels, multi-unit apartments and buildings that requirelarge amounts of hot water adopt a solar water heating system,
Social Initiatives

which uses solar panels to collect the sun's heat. Hot water createdusing this system is supplied to residential units, dormitories andkitchens, among other facilities inside a building.
At HULIC SQUARE TOKYO, the solar heat collection panels arelocated on the rooftop as a supplemental heating source for hot
water system of THE GATE HOTEL TOKYO by HULIC and has been

Solar heat collection panels (HULIC SQUARE TOKYO)

Installation of Photovoltaic Panels on an Exterior Wall
The Hulic Ogikubo Building is open to a major arterial road on

The exterior wall withphotovoltaic panels (Hulic
Ogikubo Building)its south side, providing ideal conditions for sunlight exposure.

Corporate Governancecontributing in decreasing CO2 emissions.

Capitalizing on this, we used a unique and extremely thinphotovoltaic panel that is sandwiched between glass panes to create
External Evaluationa building material for the facade (front of the building). The panels
form part of a 4.8 kW system capable of generating 2,600 kWh ofelectricity annually.
HULIC SQUARE SAPPORO I installs solar panels on vertical surfacesthat was less affected by snow and produce energy from low altitude
sunlight and snow glare. HULIC SQUARE SAPPORO II is scheduled
for completion in June 2025. In addition, we expect to generate

Sustainability Data

approximately 5,400 kWh per year with the 12.6 kW system.

HULIC SQUARE SAPPORO I

38

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39

Environmental Initiatives

Realization of a Recycling-oriented Society

Effective Use of Unused Energies
Unused energies are generic term of energies that have not beenwater. As a way to efficiently utilize energy for the reduction ofused in the past despite the fact that they could be used effectively

environmental load, we are working on the advanced utilization

which include heat disposed from buildings and factories, andof unused energy according to location conditions, asset type, anddifference in temperature of river water, ground water, or sewage

the characteristics of development projects.

Fundamental
ApproachCase Study1
Use of exhaust heat of hot springs at FUFU Kawaguchiko
At FUFU Kawaguchiko, our ryokan (a Japanese style luxuryinn), the exhaust heat of flowing hot spring water which had
been disposed in the past is collected by highly efficient heatpump and introduced as a hot spring exhaust heat utilization
system which is used as a supplemental heating source for thewater heater of ryokan. The effect of introducing this system
resulted in an approximately 30% decline in water heatingenergy consumption. The system received subsidy from the
Ministry of Economy, Trade and Industry as the FY2017 andFY2018 subsidy on business that promote local production for
local consumption by making use of local features.

We formulated our Long-term Vision for the Environment which states that we executeenvironmentally friendly management to realize an ideal society of carbon-free and recyclingoriented society in 2050. As a real estate developer, we believe that Hulic can offer value tosociety by putting our environmental effort into reducing greenhouse gas emissions, using
resources efficiently, and reducing waste.
We are actively working to reduce waste disposal and water consumption in cooperation
with our customers (tenants) and business partners for realization of recycling society. Whendeveloping and reconstructing buildings, we endeavor to reduce environmental impacts bypromoting the 3R (reduce, reuse, and recycle) through the adoption of Longer Life Building
designs that enable to reduce waste significantly and use resources effectively.

《Results in FY2022》 P ercentage of technical measures (such as longer life design, etc.)* applied to reduce constructionwaste: 100% each year
* The percentage of properties completed in the given year that used technologies and measures that contributed to a reduction in waste as well as raw materials and other resources
based on the Hulic Guidelines for Longer Life.

Long-term Vision for the Environment and the Roadmap
https://www.hulic.co.jp/en/sustainability/ecology/management/vision.html#anc3

Social Initiatives

WEB

Longer Life Buildings

FUFU KawaguchikoStandardization of 100 Year Buildings

Case Study 2

Environmental Initiatives

Effective Use of Unused Energies

Our Approach to Sustainability

Building a Recycling-oriented Society

The Company formulated the Hulic Guidelines for Longer Lifein all development and reconstruction completed or under

Building (the Guidelines) in 2011 to standardize specifications

development since formulating the Guidelines in 2011.

for development and reconstruction projects. The Guidelines

facility by extracting heat from or releasing heat to the riverwater, within a range that does not affect the environment, as
the temperature of the river water is cooler than the outside
air in summer and warmer in winter. Compared with air-source
heat pumps that transfer heat absorbed from the outside
air to an indoor space, such as household air conditioners,
this enables facilities to be air conditioned with less energy
consumption. It is estimated that this project will reduce theannual energy consumption for air conditioning in the target
area by approximately 12%.

Corporate GovernanceIn the HULIC RYOGOKU RIVER CENTER (a PPP project),which was completed in 2020, we focused on the Sumida
River adjacent to the site of the property and installed an airconditioning system that utilizes energy from the differencein temperature with the river water. Praised for its advanced
nature, the project was selected by Cool Net Tokyo (Tokyo
Metropolitan Center for Climate Change Actions) as a “projectto expand the introduction of renewable energy on a local
production for local consumption basis.” The River Water
Temperature Difference Energy Utilization Equipment uses a
purpose-built heat pump to provide air conditioning in theare composed of three ideas, 1) high earthquake resistance andhigh durability; 2) smoother updating and renewal; and 3) highserviceability. We use only high-grade building frames that ensure
the buildings are durable and used safely for over 100 years aswell as make it possible to modify layout or change of intended
use to fit with diversifying work styles in the future and reformbuilding exteriors. Furthermore, longer life buildings reduce waste
generation and resources used for reconstruction by 50% or more,
and reduce life cycle CO2 by 6% compared to the cases wherebuildings are conventionally reconstructed every 40 years (standard
plans).

External Evaluation

An air-conditioning system that utilizes energy from the difference in temperature with the river water inthe HULIC RYOGOKU RIVER CENTER

We have introduced longer life designs as standard specifications

Environmental Advantages of Longer Life Buildings

Sustainability Data

Air conditioning system making use of river water (image)Riverwater utilization heat pump40

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41

Hulic Guidelines for Longer Life Building

Wooden Construction and Conversion Initiatives
We have been developing fireproof wooden buildings using timber

CO2, so while we cut down trees as building materials, we also

1 High earthquake-resistance and high durability

that requires less energy for manufacturing and processing withplant new trees to replace them. In this way, we are contributing

Structural frames shall be strong and solid so they can be safely used over 100 years.

lower CO2 emissions.

to maintaining the proportion of young trees that absorb CO2● We apply our internal earthquake-resistance standards where building performance can safeguard human life and enable continued use of

We are also planting trees based on the idea of planting to replace

well at a certain level. Through this initiative for fireproof wooden

the building with post-earthquake repair in the event of an earthquake with a seismic intensity of 7 level to all asset types of properties wewhat we use. Trees absorb CO2 in the air and provide a carbon

buildings, we are promoting forest circulation by using, planting,develop or constructdioxide fixing solution as they grow, so an abundance of trees ingrowing, and cutting down trees, which in turn reduces CO2

the nation’s land can help cut down CO2 levels. Furthermore, trees

emissions and leads to efforts to conserve biodiversity.

● Thoroughly control the quality of works by designating details of design conditions for concrete and construction materials

Our Approach to Sustainability

Environmental Initiatives

that are ready to be cut for timber have a reduced ability to absorb
Environmental Initiatives

2 Smoother updating and renewal
We adopt a design capable of responding flexibly to future needs, and establish plans of updating and renewal without the need to maketenants move out.
● Flexibly respond to future changes in use purposes and layout, with spare ceiling height room and floor loading capacity, as well as aflexible partition wall and a system ceiling.
● Ensure the space to install spare pipes and equipment, etc. so as to continue business even during the period of works for updating andrenewal.
● In commercial buildings, adopt the interchangeable facade system capable to meet the needs of the time, in order to avoid the building

exterior to become obsolete, if the conditions are met.

Social Initiatives

3 Ease of maintenanceWe formulate plans enabling timely and meticulous maintenance in order to keep sophisticated building specifications and optimal building
functions constantly● Use gondola for maintenance, including inspections of the building exterior.
● Install an elevator reaching the rooftop to carry in materials there.

Ceiling height:

Basic Policy for Promoting Wooden Buildings

To Spread

2.8m or higher

Loading capacity: 500kg/m in general, 800kg/m ～1t/m in heavy duty zone
2

System ceiling:2

2

A system ceiling responding to needs for smoother maintenance, updating of facilities,
and changeability of partitions between tenants.

Completion of HULIC &New GINZA 8
Construction of HULIC &New Ginza 8 was completed in October 2021, Japan’s first 12-story fireproof wooden (hybrid
construction combining wood and steel) commercial building.

To Plant

Execution of environmental afforestation
We execute planting trees in addition to use them in building construction so that we can promote circulation offorests.

Replaceable facade systems

42

Hulic Co., Ltd. Sustainability Book 2023

Participate in the Wood Change Council
We are a member of the Wood Change Council, a networking gathering sponsored by the Forestry Agency which aims
to promote the use of timber in the private sector buildings.

To UsePOINT2For commercial buildings, the exterior appearance is important. This is because a stylish appearance at the forefront of the age would
attract customers. Therefore, if site conditions and other factors are met, we adopt a system where the facade (front exterior of thebuilding) can be separated from the main structure, without any legal constraints,
to update the exterior design. Hulic Ginza Sukiyabashi Building located in Ginza,
a major commercial area in Japan, has adopted the characteristic facade design
expressing the scenery of a waterfront with willow trees. The two-tier facade withcasted aluminum in curved shape installed on the curtain wall is separate from themain body of the building.
As for office buildings, we intend to adopt a simple and calm design with an
exterior appearance that can become harmonious with the surrounding landscapeas time passes.

Organized Wooden Architecture Symposium 2019
We held the Wooden Architecture Symposium 2019 with the aim of raising awareness on the possibilities of woodenbuildings and to increase demand for timber in urban areas.

External Evaluation

From a viewpoint of a long-term use for 100 years, it can be expected that the use of building
will largely change, for example, from an office building to a store or from a store to arestaurant. By providing spare ceiling height room and floor loading capacity in advance, it ispossible to respond easily to future changes in use purposes and layout, as well as for renewal.

Sustainability Data

Responding to future changes in purpose of use and layout

Corporate Governance

POINT1

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43

Many wooden buildings have been constructed in Japan in the

1993, this award has recognized and acknowledged the excellence

10 years since the enactment of the Act for Promotion of Use ofof the owners, designers, and builders of structures that contribute

We developed Japan’s first 12-story wooden fireproof commercial building (hybrid construction combining wooden and steel structures) in

Wood in Public Buildings etc. aimed at bolstering the use of wood.

to the growth of wood use and the unique application of wood.

Ginza, one of our focus areas, in October 2021.

Recently, we have seen the development of many new wooden
Received the Grand Prize (Minister of Land, Infrastructure,materials as well as technology and construction methods, while theDevelopment and Design Concept
With the objectives of contributing to both the growth of the forest

structure combining wooden and steel frame construction takes

industry and regional revitalization, Hulic used domestic timber foradvantage of several wood-related technologies, such as crosslaws related to wooden structures have been relaxed. More wooden

Transport and Tourism Award) at the Wood Design Award

construction is expected. Given this background, the competition[Comment from judges]

recognizes excellent works that broadly convey the benefits of wood

This building is located in an urban area where symbolic wooden

and contributes to more use of wood.

architecture is highly visible, making it a fitting place to showcase

the structure—mostly sugi (cedar) from Fukushima Prefecture—basedlaminated timber (CLT), and vibration-damping walls and pillars

on the design concept of creating a “forest” in the middle of Ginza.

made from glued laminated wood. The project which also used

Won Minister of the Environment Award in the Contest

While building with steel and concrete was used in places, we replaced

wood for exteriors shows the future of cities and structures, with

Recognizing Outstanding Facilities for Timber Utilization

construction and this project was rated highly as a model for

to wood in all sections of the structure where this was possible toGinza serving as the model. Inside the building, the fireproofed[Comment from judges]

promoting carbon fixation through wood use in urban settings. This

create a building with a highly economic and coherent structure.

wooden pillars and beams, as well as the ceiling using CLT, are

The main structural components of this building use cedarwood

project effectively targets a socially and environmentally conscious

exposed effectively to carry the feeling of warmth that wood brings

sourced from Shirakawa City, Fukushima Prefecture, establishingcustomer base unique to the area, offering a comfortable andto the interior which is also aesthetically pleasing.

collaboration between the Tokyo-based real estate company andinviting space that harnesses the soothing qualities of wood. The

local forestry. Materials sourced from the Tama area of Tokyo areproject successfully maximizes the benefits of using wood andSpecial Features
New technologies

moisture absorbency, as well as the sensory appeal of its warmth

the metropolis. This project is an advanced example of accelerating

and softness.

the trend toward urban wooden construction by achieving Japan’sJapan’s first 12-story wooden fireproof commercial building. The tallest[Wood Design Award]

first 12-story high-rise wooden hybrid construction with a wooden

among leasing buildings, as of the time of completion of this property.

Environmental benefits•

conveys wood’s exceptional properties, such as insulation andurban construction and enabling local production for consumption inframe, in this way providing the option of building with wood when

Japan Wood Design Association, established to conduct research

designing high-rise buildings.

and development, create business, and raise awareness in all fields
related to wood design, has defined their initiatives as aimed at

Promotes fixation of CO2
Reduces CO2 by increasing the amount of wood used, leading to forest[Contest Recognizing Outstanding Facilities for Timber

regeneration (forest health)Utilization]

Wood Design Award, now in its eighth year since being introduced

Approximately 310 m of wood was used in the construction of HULICThe Japan Council for Advancement of Timber Utilization works within 2015, recognizes projects and structures that enrich living and&New GINZA 8, with the amount of carbon stored in the lumber (CO2

local councils in each prefecture and was established in 1984 with thesociety through wood, showcasing these achievements to Japan andequivalent) totaling 217 t-CO2.*

aim of promoting use and increasing the demand for wood. Since

the world.

3

helping to resolve social challenges through the use of wood. The* Calculated based on the Forestry Agency’s “Guidelines for calculating carbon stored in woodused in buildings” (October 1, 2019) (for all wooden parts)•

Reinvigorates forestry (regional revitalization)•

Reduces CO2 emissions from construction
Eliminates CO2 emissions during structural material manufacturing process

Example of Use 2: Promoting Conversion to Wood(eliminates CO2 that would have been emitted during iron manufacturing,•iron processing, concrete manufacturing and other processes)

Along with the development of fireproof wooden buildings, Hulic

arranged in a spacious 3.8 meter-high entrance hall complete

Facilitates simplified foundations

is actively promoting the use of wood for exteriors and interiors

with a full wooden ceiling. Praised for our initiatives, we received

Lightweight superstructure (above-ground frame section) compared to steel structures and reinforced concrete structures simplifies thedepending on the application and location of the developed

highest rank of “S” in CASBEE-Wellness Office* certification (issued

foundation structure of the building.

property.

by Institute for Building Environment and Energy Conservation).

In Hulic JP Akasaka Building, based on the concept of “a wellness

HULIC &New GINZA 8 has received these awards: the Grand Prize (Minister of Land, Infrastructure, Transport
and Tourism Award) at the 25th Wood Utilization Competition (sponsored by Japan Association of Timber
Youth Groups); the Minister of the Environment Award in the Outstanding Facilities Category in the FY2022
Contest Recognizing Outstanding Facilities for Timber Utilization (sponsored by the Japan Council for
Advancement of Timber Utilization); and the Grand Prize (Minister of Land, Infrastructure, Transport andTourism Award) at the Wood Design Award (sponsored by the Japan Wood Design Association).
Awarded the Grand Prize at the 25th Wood Utilization

contribute significantly to more use of timber in buildings in theCompetition (Minister of Land, Infrastructure, Transport andfuture.

working environment for office workers. The building uses plentiful* Comprehensive Assessment System for Built Environment Efficiency (CASBEE) assesses
the specifications, performance, and initiatives of buildings that support the healthand comfort of building users, factors that contribute to intellectual productivity
improvement, and the performance of safety and security.

natural materials and wooden benches and wooden shelves

Sustainability Data

TOPICS

space for working people,” we focused on creating a better

Tourism Award)[Comment from judges]

44[Wood Utilization Competition]

The HULIC &New GINZA 8 project has been highly rated for tackling

Started in 1997, this year marked the 25th occasion for the Woodthe challenge of using wood in high-rise buildings in urban areas.

Utilization Competition. The goal is to contribute to the revitalization

The use of timber from all over Japan for a high-rise structure inof the forest industry by exploring new uses for wood and its

Ginza, one of the country’s premier commercial districts, will likely

expanded use.

Hulic Co., Ltd. Sustainability Book 2023

Social Initiatives•

also used, contributing to the promotion of local forestry throughCorporate Governancebeams made from timber with a fireproof coating. The hybrid

employed is expected to contribute to the growth of wooden

External Evaluation

This 12-story wooden building was created with columns andits value and appeal. The diverse range of wooden techniques
Environmental Initiatives

Example of Use 1: HULIC &New GINZA 8 (fireproof commercial building)

Our Approach to Sustainability

Environmental Initiatives

Entrance Hall(Charmsweet Yotsuya)

Wooden louvers(Hulic Ryogoku River Center)

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45

Environmental Initiatives

We held the Wooden Architecture Symposium 2019 with the aim

than 800 participated the event and deepened understanding onof raising awareness on the possibilities of wooden buildings,

possibilities and challenges of wooden buildings through listening

helping to reduce CO2 emissions and protecting forests. Moreto the key note speech and panel discussions.

Key Note Speech

Kengo KUMA
(Architect·Professor at The University of Tokyo)

From concrete to wood
Japan could be the front runner in the century of wood.
● A shift from concrete to wood has been observed as oppose to the 20th century which
was a time of concrete.
● Japan’s wood-related technologies are number one in the world.

(Senior Executive Advisor, Tokio Marine &Nichido Fire Insurance Co., Ltd.)

Resource-saving and Reduction of Waste in Buildings Owned by Hulic and Reconstruction of Buildings
Hulic Group has worked on reduction in the amount of wastethat reuse water and various water conservation systems. Water

disposal and water intake (water consumption) in cooperation withsaving toilets and wash basins are standardized.

tenants and building management companies. We install toilets

Panel Discussions
Kengo KUMA
Shuzo SUMI

Fundamental
Approach

We are proactively working to reduce waste and water intake (water consumption) incooperation with tenants and building management companies toward realization of recycling
society.
For developing and reconstructing buildings, we endeavor to reduce environmental impacts
by promoting the 3R (reduce, reuse, and recycle) through the adoption of Longer Life Building
designs that enable to reduce waste significantly and use resources effectively.

Aiming to increase demand for timber in urban areas

Amount of Waste Disposal at Hulic Group● Increase in middle-to-high-story wooden buildings will promote community vitalization

We are constantly making efforts at buildings which our group company head offices occupy including hotels to reduce waste in order for●W ooden buildings will improve global and human environmental issues

building a material-recycling society.

K. KUMA:
S. Sumi:- Wooden construction is the area that Japan can make the world to seek after.
Tadao KAMEI- E ffective use of Japan’s ample forestry resources will be the key to regional(President and CEO, Nikken Sekkei Ltd.)
revitalization.
Masahiro MIYASHITA
T. Kamei:- Optimization of timber is the key in planning of high-story wooden buildings.
(Chairman of the Board, Takenaka Corporation)
M. Miyashita: - T echnological innovation of wood engineering will support high-story
Atsuko FUKUSHIMA
wooden construction.
(Journalist)		
A. Fukushima: - W ood is the ideal future material of sustainable society.

Environmental Initiatives

Example of Spread 1: Organized Wooden Architecture Symposium 2019

Our Approach to Sustainability

Our Group-wide Initiatives

Social Initiatives

Waste that Can and Cannot Be Recycled

Note:Occupation, affiliation, title, etc., when symposium was held.

* Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
* The boundary is Hulic’s headquarter building and buildings where the head offices of Group companies are located. Beginning in FY2020, we are calculating total waste disposal at
specific properties within the boundary by using weight conversion factors based on actual measurements. The results increased from FY2018 as Porte Kanazawa, a large commercial
building, has become subject to aggregation since.

The Wood Change Council (the Council) is a networking gatheringsponsored by the Forestry Agency which aims to promote the useof timber in the private sector buildings. The Council discusses
and considers matters related to spreading timber use including
identification of issues, direction of solutions and popularization,
and aims to create an environment that timber is more easily used

Corporate Governance

Example of Spread 2: Participate in the Wood Change Council

as well as to create a platform of spreading the use of timbermovement throughout Japan. We participate in the Council with

Example of Planting 1: Planting the Same Amount of Trees Used
Hulic outsources logging, planting, and weeding activities toand steel frame construction) commercial building completed inforestry cooperatives in an effort to plant the same amount of

October 2021. At the same time, approximately 12,000 cedar

trees as the standing trees used as building materials for fireproof

saplings were planted (new plantings) across an area of about

Efforts to Reduce

wooden construction. In May 2021, approximately 310m of

4.3 hectares. Over the next five years, we will continue cutting

Reduction of plastic waste at head office building

lumber was used in the construction of HULIC &New GINZA 8, aundergrowth so that the planted cedar saplings will grow healthy.

In consideration of the seriousness of marine pollution caused bycontainers, straws, spoons and shopping bags. We are also actively

disposable plastic waste, the in-house canteen at the Hulic headencouraging employees to bring their own cups.

3

12 story fireproof wooden (hybrid structure combining wooden

Promotion of the 3R

office building has stopped use of disposable plastic beverage

Sustainability Data

External Evaluation

an intent to continuously promote the use of timber.

Cedar sapling newly planted and a mountain (Fukushima Prefecture)46

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Initiatives for Water

Recycling parts of underground building frames during reconstruction
In reconstruction works, we make various efforts for reducing

Initiatives to Reduce Water Intake (Water Consumption)

Examples of buildings that have used recycled

wastes generated in demolition works including concrete debris.

underground frames

For example, underground building frames of existing buildings are● Hulic Ginza Sukiyabashi Building

used as retaining walls for the new building with new underground● Hulic Head Office Buildingbuilding frames installed inside. We make sure that adequate● Ochanomizu Sola City

inspections are conducted to confirm the strength when building● Hulic Shinjuku Building

frames of existing buildings are recycled.
After considering impacts on neighboring areas of property, we
introduced the PC method (described later) into the following

Hulic Guidelines for Longer Life Building
https://www.hulic.co.jp/en/sustainability/ecology/waste/initiatives/long_life.html#anc2

WEB

projects:

Almost all water intaken and consumed in the Group are from

In addition, we are gradually upgrading the toilets in the buildings

the buildings owned or the buildings that we have offices, andwe own to ensure better plumbing while also changing to water-

the water flow starts from tap water and discharge it into sewers.

saving flush toilets and hand washers. The Company is also

To reduce the amount of water intake (water consumption) inworking to ensure the effective use of water resources by usingbuildings owned by the Company, we have taken the initiative

rainwater to water the greenery and flush toilets for certainof introducing water-saving devices on water taps installed in thebuildings. Note that Hulic does not operate business activities inplumbing of existing buildings (saves water by approximately 40%

high water stress area where demand for water is tight.

per tap) to preserve water resource.

Efforts to Recycle
As recycling efforts through daily business activities, we started to recycle used paper and printer toner cartridges. We will continue to workon those efforts to support achieving a recycling society.

Amount of paper recycled *(Unit: kg)

FY201913,125

FY202014,540

FY2021

15,600

FY2022

13,880Social Initiatives

FY2018Recycled amount

13,000* The scope is Hulic Head Office Building.

Prevention of Pollution

Rainwater filtration equipment

The Company considers that the minimization of environmental

cooperation with design and construction companies. In addition,

pollution due to business activities is indispensable to realize awe aggregate data on SOx, NOx, VOC, and hazardous waste

recycling society. When planning buildings, we adopt construction

generated in the development business to monitor the amounts

methods to reduce pollutant emissions to the extent possible ingenerated, and we disclose the actual results .

* Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
* Beginning in FY2021, Hulic’s fixed assets are covered, excluding properties under development and land for lease (220 properties in FY2021, 207 properties in FY2022). Note thatthe amount of hot spring water used at hot spring inns is not included.

Use of Paper Substitute Materials
Amount of emission of SOx, NOx and VOC from hazardous wastes
FY2019FY2020

FY2021

primarily from limestone, for the production of this integrated

FY2022

Number of properties

10

4

7

9

6

SOx emissions (kg)

1,620

60

142

826

770

NOx emissions (kg)11,527

1,334

1,649

6,778

5,132

VOC emissions (kg)

157

124

0

0

0

* Figures are for developed and constructed buildings for which data were collected in each year.

report as well as shareholder newsletter and our business cards.
When making LIMEX, which uses almost no forest or water
resources, the amount of water used in manufacturing was
reduced by approximately 530,000 liters, the equivalent of roughly
1.07 million 500ml bottles of water, compared with the sameamount of ordinary paper.

External Evaluation

FY2018From 2022 we began using LIMEX, a paper substitute madeCorporate GovernanceFiscal year

Environmental Initiatives

Efforts to Reuse

Our Approach to Sustainability

Environmental Initiatives

In addition, LIMEX used in place of paper in such products as
integrated reports can be collected and recycled into alternative
plastic products, in this way helping to realize highly efficient
resource recycling. We will continue to consider the possibilities of

Sustainability Data

replacing to LIMEX with a focus on our own publications.

48

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Initiatives for Biodiversity

Construction
Adoption of the PC Method
From the standpoint of a business owner, we proactively adopt theenvironments during construction, is highly rated in terms of longer

PC method*, which can significantly reduce the amount of waste

life service of buildings.

generated during construction. This method, which can shorten
a construction period and minimize impacts on surrounding* PC (Precast Concrete) method: Precast panels produced at a plant under consistentquality control are carried to a worksite and assembled.

Fundamental
Approach

Hulic is carrying out initiatives that increase biodiversity in order to create urban
spaces that are in harmony with nature.

《Results in FY2022》 Number of greening properties: 3 (Coverage: all completed properties each year)

Our Approach to Sustainability

Environmental Initiatives

Environmental Initiatives

Effect of the PC Method

Biodiversity Guideline
Hulic recognizes the importance of biodiversity's impact for theliving environment, and in order to contribute to biodiversity, we
have created the Declaration of Biodiversity Conservation (Hulic's
Biodiversity Guidelines) which has been well communicated within
our Group.
Furthermore, we have been considerate of and cautiously
executing our businesses that our business should not create any

Social Initiatives

negative impacts on biodiversity and endangered species.

Approaches to JHEP Certification
We are also working to ensure that we consider ways to conserve

Society-Japan to quantitatively evaluate and promote biodiversity

and restore local vegetation during reconstruction of properties

conservation initiatives. The number of properties certified totalingfrom the standpoint of preserving biodiversity. We adopted the

12 as of December 31, 2022.

(Reducing environmental burdens)(Benefits within construction activities)● Reduced-weight materials● Highly accurate pre-cut processing (machining) contributes tosmooth assembly worktransportation and construction operations● Convenience when fixing to other building materials with screws-Reduction of CO2 emissions from transportation● Since structure is finished material, interior finishing costs are● Factory production reduces the amount of onsite work andeliminates onsite waste materials

Hospitalment Hongo: exterior and garden

reduced* Hybrid structure combining wooden and steel framework

Sustainability Data

-Rationalization of vehicles and heavy machinery inExternal Evaluation

Benefits of Hybrid Fireproof Wooden Construction*

Corporate Governance

JHEP certification system issued by Ecosystem Conservation● Adoption of floor CLT eliminates need for scaffolding

WEB

50

Example of Use 1: HULIC &New GINZA 8 (fireproof commercial building)https://www.hulic.co.jp/en/sustainability/ecology/waste/initiatives/special_feature.html#anc4

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Environmental Initiatives

ease the heat-island phenomenon as well as making buildings more energy efficient.

Information Disclosure based on TCFD Recommendations
Hulic has formulated Hulic Environmental Policy which embodied

Promotion of Greening of Surrounds, Rooftops and Walls

our Sustainability Vision and is executing environmentally friendly

Our greening projects aim to create lush green urban spacesof a building with plants serves as a countermeasure against the

management. Aiming to continue sustainable growth while

as well as to harmonize with nature with much consideration

heat island effect as well as comforting for passersby. Hulic has

mitigating and adapting to climate change through our businessto biodiversity. When greening surrounds, we primarily selectjointly developed with otheractivities, we announced our long-term vision for the environment,

financial information disclosure, we expressed our support forplants that are easy to care and resistant to strong winds socompanies a thin-layered wallwith 2050 as the target achievement year and are proceeding with

the TCFD* recommendations in 2020 and started disclosing

as to improve the scenery and appropriate for location. Roof

greening system that is easy toefforts toward the realization of a carbon-free and a recycling-

information in line with the recommendations after completing

greening makes it possible to save energy in buildings by blocking

introduce to existing buildings.

oriented society. Recognizing the importance of climate-related

analysis and responses on the recommended framework.

Miyazaki Prefecture Tokyo Building
Redevelopment (PPP)WEB

Hulic JP Akasaka Building (completed in November 2020)
This property is a medium-sized office building facing Sotobori-contributing to the formation of an ecological network in the citydori, jointly developed by the Company and Japan Post Real Estate

and the promotion of biodiversity in the heart of Tokyo.

Co., Ltd. It is located in the middle of a lush area comprising theThis building received highest rank of “S” in CASBEE-Wellness

Imperial Palace, Akasaka Imperial Palace and Hibiya Park, all of

Office* certification (issued by Institute for Built Environment andwhich are home to living creatures in the center of Tokyo. By

Carbon Neutral for SDGs). Greening the rooftop and walls willgreening the rooftop and walls, the JP Akasaka Building will serve

enable office workers to sense the four seasons even while in theas a relay point for living creatures to move between habitats,center of the city.

* Comprehensive Assessment System for Built Environment Efficiency (CASBEE) assesses the specifications, performance, and initiatives of buildings that support the health and comfort ofbuilding users, factors that contribute to intellectual productivity improvement, and the performance of safety and security.

Long-term Vision for the Environment and Roadmap of Initiatives for Achieving the Visionhttps://www.hulic.co.jp/en/sustainability/ecology/management/vision.html

TCFD Disclosure Recommendations and Hulic Initiatives (Summary)
TCFD Disclosure Recommendations

Hulic Initiatives (Summary)Corporate Governancea) Board of Directors oversight of climate-related risks and opportunitiesb) M anagement's role in assessing and managing climate-related risks andopportunities● Establish Board of Directors oversight and monitoring structure● Matters related to climate change are deliberated by the

Sustainability Committee, which is chaired by the President andRepresentative Director, who is responsible for climate change

Strategya) S hort, medium, and long term climate-related risks and opportunities
identified by the organizationb) T he impact of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planningc) D escribe the resilience of the organization’s strategy, taking into accountdifferent climate-related scenarios, including a 2°C or lower scenario● Analyze and evaluate climate change mitigation and adaptations

relating to climate change risks and opportunities, based on a 2°C
or lower scenario and a business as usual scenario● Examine validity of current strategies based on evaluation results

Risk Managementa) O rganizational process for identifying and assessing climate-related risks

Green walls and wooden conversion of entranceb) O rganizational process for managing climate-related risks● T he Sustainability Committee centrally deliberates climate change

matters including risk management and reports to the Board of Directors● The Risk Management Committee evaluates and deliberates climatechange risks from a Group-wide risk management perspective andreports to the Board of Directorsc) D escribe how processes for identifying, assessing and managing climate● The Board of Directors receives reports from the Sustainability andrelated risks are integrated into the organization’s overall risk management
Risk Management Committees and oversees climate change risks

Rooftop garden

Initiatives at the Hulic Head Office Building
On the rooftop garden of Hulic Head Office Building, seven kinds

nature while working in Tokyo.

of plants including Canarian ivy and evergold are used to cover the

Various trees such as European privet, Japanese boxwood,

wall surface, surrounding terrace benches for approximately 20

agapanthus, fuiriyaburan, and gazania have been planted on thepeople, and provide a transpiration effect to ease the heat-island

rooftop of the expanded building of the Hulic Head Office. In

effect. With this green wall over approximately 106m2, the rooftop

addition, we have placed wooden decks and grown a lawn on thegarden is a space where employees can relax and rest, and feelingsurface.

Metrics and Targets● S et climate change KPIs (non-financial key performance indicators)a) Disclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process

and related indicators, disclose progress toward achieving targets
on Hulic website, etc.
•R
 eductions in greenhouse gas emissions*1 (compared to 2019 base year)2024b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks

Scope1+2*2

2030

Reduce by 70% Reduce by 70%

Scope3*3－

Reduce by 30%

2050
Substantiallyzero emissions
Substantiallyzero emissions• Achieved RE100 in 2023c) D escribe the targets used by the organization to manage climate-relatedrisks and opportunities and performance against targets• Number of times the Sustainability Committee engaged in climatechange monitoring• Number of times climate change risks are monitored by the

Sustainability Committee and reported to the Board of Directors

Rooftop garden

52

Hulic Co., Ltd. Sustainability Book 2023

Wall greening

Rooftop greening

External Evaluation

conditioning loads on the top floor. Covering the exterior walls*1 Absolute contraction targets, Base year: 2019. Hulic has had its near-term (by 2030) emissions reduction targets approved by the Science Based Target initiative as consistent with levels
required to meet the goals of the Paris Agreement.
*2 Greenhouse gas emissions from directly owned or controlled sources plus indirect purchased energy for business activities.
Scope1: Direct emissions (e.g., emissions from natural gas and other fuel combustion)
Scope2: Indirect emissions (e.g., emissions from the use of purchased electricity, heat and steam)*3 Greenhouse gas emissions from external companies affiliated with internal business activities (in the supply chain). Targets were set for Categories 11 and 13, which cover approximately
80% of Scope3.

Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

sunlight and preventing heat accumulation, thereby reducing air* TCFD is an abbreviation for “Task Force on Climate-related Financial Disclosures”, which was established by the Financial Stability Board and has proposed a framework for disclosing
climate-related information to investors.

Social Initiatives

As a part of our measures against global warming, we have put emphasis on greening of surrounds, rooftops, and walls which can effectively

Environmental Initiatives

Hulic Initiatives (Summary)Corporate GovernanceGreening Initiatives

Our Approach to Sustainability

Information Disclosure based on TCFD Recommendations

53

Department in Charge of Climate Change-related Matters
Corporate Sustainability Department is in charge of climate change-on Climate Change.

related matters and is responsible for the planning, proposal
and management of climate change-related items as well as the

Examples of discussions and decisions made under our climate change-related governance structure:● Supporting RE100 initiative and achieving by 2025 (Achieved in 2023, two years ahead of schedule)● Developing Japan's first fireproof wooden 12-story commercial facility (Completed in October 2021)● Supporting TCFD recommendations and disclosing information in line with the recommendations● Achieving converting to 100% renewable energy for electricity consumption at all Company-owned Buildings*● Formulating greenhouse gas (“GHG”) emissions reduction targets in conformance with SBTi (Science Based Targets initiative) criteria,

developing solar photovoltaic equipment that does not use the FIT system● Reducing greenhouse gas emissions in the supply chain*Excludes properties for which we do not have energy management authority including master lease properties, residential properties and non-managerial coownership properties,
and reals estate for sale, etc.

promotion of climate change responses throughout the Group.

of climate change, and set goals, tracking performance andreporting progress to the Sustainability Committee at least once a

conjunction with related departments within Hulic and Group
companies, understanding status and submitting reports andManagement Committee regarding identified climate change

Committee at least once a year.

impacts, and integrating them into Group-wide risk management.

Environmental Advisory Council

been holding regular Environmental Advisory Council meetings

The Board of Directors receives reports on climate change risks andstrategies, management plans, annual budgets and profit targets

comprising external advisors and top management once a year

opportunities from the Sustainability Committee at least once a

are decided after consideration of climate change risks andsince 2010.

year, and monitors and oversees the resolution of issues and setting

opportunities when needed.

We also receive advice and suggestions from external advisors on
matters related to climate change that are discussed directly by top
management, which is leveraged for management decision-making
regarding the planning of climate change-related measures.

Matters concerning climate change are deliberated andCommittee also sets KPIs related to sustainability, including climate

coordinated by the Sustainability Committee.

change, and evaluates progress by reviewing performance.

year.
• Submitting reports and recommendations as needed to the Risk

recommendations on appropriate measures to the Sustainability

viewpoints. To promote efforts to create value for society, we have

Sustainability Committee

risk management across the organization.
• Developing indicators used to measure and manage the impact

Specific items include:issues from specialized and technical knowledge and objectiveof targets. In addition, important matters such as managementchange, managing identified impacts and integrating them into

• Leading the monitoring of climate change impacts in

Hulic receives advice and recommendations on environmental

Board of Directors Oversight• Designing processes to identify and assess the impact of climate

External Advisors
Toshiharu Ikaga: Professor, Keio University
Yoshihiro Fujii: Representative Board Chairman, Research Institutefor Environmental Finance (RIEF)
Takao Kashiwagi: Specially Appointed Professor & Emeritus
Professor, Tokyo Institute of Technology
Keisuke Takegahara: Executive Fellow and Deputy Director,
Research Institute of Capital Formation, Development Bank ofJapan Inc.
Management Members from Hulic
Chairman, President, Vice Presidents, GM of Corporate
Sustainability Department, Group company executives

Climate Change-related Corporate Governance Diagram

The Sustainability Committee, which is chaired by the President
is composed of the Vice Presidents, the General Manager of theBusiness Planning and Management Department, the General
Manager of the Real Estate Planning Department and Group
company executives. The Committee evaluates the impact ofclimate change on business at least once a year, formulates
policies and strategies for mitigating identified risks and seizing
opportunities, and discusses how to adapt to climate change,
including reflecting its impact in plans, budgets and targets. The

Members
President, Vice Presidents, GM of Corporate Sustainability
Department, General Manager of Business Planning andManagement Department, General Manager of Real Estate
Planning Department
Observers
Group company executives, Full-time Audit & Supervisory
Board members
Secretariat
Corporate Sustainability Department

External Evaluation

and Representative Director, who is responsible for climate change,

Management Responsible for Climate Change
the impact of climate change on Hulic business and manages

the matters related to climate change. The President andappropriate responses. The Basic Regulations on Climate Change,

Representative Director serves as the Chairman of the Sustainability

which stipulate items related to climate change, are a matter forCommittee, and is ultimately responsible for assessments ofapproval by the President.
Sustainability Data

The President and Representative Director is responsible forEnvironmental Initiatives

centered on Board of Director oversight and the Sustainability Committee. This governance mechanism is stipulated in the Basic Regulations

Social Initiatives

Recognizing Hulic’s climate change response as an important management issue, we have established a corporate governance mechanism

Corporate GovernanceCorporate Governance

Our Approach to Sustainability

Environmental Initiatives

54

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55

Financial impact matrix

Hulic aims to maintain sustainable growth, while mitigating andphysical risks in the scenarios we examined, and have found that ouradapting to climate change, through business activities, andbusiness is sustainable and our strategy is suitably resilient.

we recognize that our climate change response is an important

Based on our motto of “driving innovation” and “accelerating

management issue. The effects of climate change are expected toprogress”, we are going ahead with a business model that is able

become more apparent over time, so we analyzed the impact of

to flexibly respond to changes in external environment. Goingrisks and opportunities on our strategy using multiple climate change

forward, we plan to mitigate climate change related risks by flexibly

scenarios and examined resilience of our current strategies including

evolving our business model against social transformation towards

Impact Classification

Ratio to Consolidated Ordinary Income

Amount / YearLarge

30% or higher

JPY 30 billion or more

Medium15% or higher, less than 30%

JPY 15 billion or more, less than JPY 30 billion

Small

5% or higher, less than 15%

JPY 5 billion or more, less than JPY 15 billion

MinimalLess than 5%Less than JPY 5 billion

the need to change management plans and basic strategies.

decarbonization. We concluded that we will be able to continue

At Hulic, we have been taking actions on strengthening earthquake

improving our corporate value by building a competitive advantage

resistance and disaster prevention measures of our properties,

in the leasing and development businesses as valuations increase for

For each Hulic business, we assessed the impact of climate change

event. By integrating the results of these assessments, we selected

as well as implementing environmental initiatives including

environmentally friendly technologies adopted in our properties andaccording to the type of climate change risks and opportunities asbusinesses that could have a large impact from climate change.

decarbonization. As a result, we have found no potential financial

seizing opportunities in providing new products and services in theoutlined by TCFD. Regarding risks, departments within the RealAs a result, real estate and the environment-related businesses

impacts that were deemed large related to both transition andenvironment-related business field.

Estate Business Division, the Planning and Administration Division,

were deemed to have large impacts from climate change, we

and the department responsible for environmental technologies

selected these businesses for a scenario analysis. We may consider

first evaluate the inherent risks for each risk type based on theto add other businesses to the climate change scenario analysis

Time Horizon for the Short, Medium, and Long-term

Businesses Largely Impacted by Climate Change

when these become significantly impacted by climate change andclimate change effects in conformity with timeline of our long-term

was then determined by considering the control effectiveness.

important.

years into the future, the effects of climate change will likely

vision for the environment, as well as the target years set by theOpportunities were also evaluated based on the likelihood of

become apparent over a far longer period. We have established

Paris Agreement and Japanese government.

short-, medium- and long-term time horizons when analyzing theBusinesses subjected to climate change scenario analysis

Hulic's climate change time horizon: confirming with Hulic long-term vision for the environment andgreenhouse gas emissions reduction targets• Real estate leasing business

Short-termLong-term

2025

2030

2050

5 years

10 years

30 years

Scope3*3

n.a.

2030
Reduce by 30%• New and other businesses

Process for Identifying Businesses with Large Impact from Climate Change

Hulic's management and businesstime horizons

GHG Emissions Reduction Targets*1
2024• Tourism-related business

2050

Long-term Vision for the Environment

Scope 1 and 2*2 Reduce by 70% Reduce by 70%• Environment-related businessBusinesses excluded from scenario analysis

Corporate Governance

Climate Change

Medium-term• Real estate development business, Value-added businessSocial Initiatives

likelihood of event and the degree of impact. The residual risk

While the real estate industry makes business plans looking 10

2050
Substantially zero emissions

Medium- and Long-Term Management
Plan (2020-2029)

Substantially zero emissions

Phase I

Phase II

Phase III

3 years

3 years

4 years

By 2022

By 2025

By 2029*1:Absolute contraction targets, Base Year: 2019. Hulic has had its near-term (by 2030) emissions
reduction targets approved by the Science Based Target initiative (SBTi) as consistent with levels

Environmental Initiatives

Strategy

Our Approach to Sustainability

Environmental Initiatives

required to meet the goals of the Paris Agreement.

External Evaluation*2:Greenhouse gas emissions from directly owned or controlled sources plus indirect purchased energy for business activities.
Scope1: direct emissions (e.g., emissions from natural gas and other fuel combustion).
Scope2: indirect emissions (e.g., emissions from the use of purchased electricity, heat and steam).
*3:Greenhouse gas emissions from external companies affiliated with internal business activities (in the supply chain). Targets were set for Categories 11 and13, which cover approximately 80% of Scope 3.

56

In assessing the financial impact of climate change, we used

FY2020 and a forecasted JPY 100 billion in FY2021. For classifying

consolidated ordinary income among other earning indicators

impact, we referenced criteria for revising earnings forecasts, aincluding net sales, operating income, ordinary income, and profit

30% increase or decrease in the consolidated ordinary income

attributable to owners of parent as it is especially important key

forecast among the "important matters" of the timely disclosure

earning indicator for us. We have set the following criteria based

standards of financial instruments exchanges and set such impact

on the results of consolidated ordinary income: JPY 95.6 billion inas “large”

Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

Financial Impact of Climate Change

Hulic Co., Ltd. Sustainability Book 2023

57

Our Approach to Sustainability

Environmental Initiatives

Overview of Two Scenarios

Evaluation of Climate Change-related Risks and Opportunities
1. Identifying Key Drivers of Material Risks and Opportunities
As a pre-process for selecting a group of climate change scenarios,(factors that could have a significant impact on our business). At

for each type of climate change risk and opportunity according to

the same time, we excluded risks and opportunities that were

TCFD, we identified the key drivers of risks and opportunities that

deemed less impactful and relevant. Identified key drivers of risks

could be important to our business and our major stakeholders

and opportunities were as below:

Key Drivers of Identified Risk
Environmental Initiatives

Key driver: Factors that are likely to have a large impact on Hulic business and as such parameters were collected when creating
scenarios・Strengthened CO2 emission regulations
・Increased CO2 emission pricing
・Strengthened energy saving standards
・Increased subsidies to promote zero CO2emissions from buildings

・Primary energy reductions
・Carbon pricing
・Negative emission policies
・CO2 emission control regulations on buildings
・Disclosure of energy-saving performance
・ZEB/renewable energy subsidies

・Advances in building equipment
technologies
・Advances in clean energy supply
technologies

・Advances in fireproof wooden construction technologies
and cost fluctuations
・Advances in ZEB technologies and cost fluctuations
・Advances in renewable energy and cost fluctuations
・Advances in storage battery technologies and cost
fluctuations

・Increased awareness of environmental
issues・Changes in company or tenant behavior

Acute・Increase in natural disasters

・Increase in torrential rains
・Increase in typhoons
・Increase in flooding

Chronic

・Chronic climate change

・Increase in average temperature・Rise of sea level

Policy and Legal

Transition Risks
Technology

Society (Market,
Reputation)

Physical Risks

Social Initiatives

Identified Key Drivers

Key Drivers of Identified Opportunities		
Opportunity Type

Resource Efficiency

Energy Source

Products and Services

Markets

Drivers

Identified Key Drivers
・Advances in renewable energy and cost fluctuations
・Adapting to the possibility of increase in expense due to theintroduction of carbon taxes
・Advances in fireproof wooden construction technologies andcost fluctuations
・Advances in ZEB technologies and cost fluctuations
・Advances in storage battery technologies and cost fluctuations

・Advances in clean energy supply technologies
・Reduced CO2 emissions
・Advances in building equipment technologies

・Development and use of renewable energy

・Advances in renewable energy and cost fluctuations

・Rise in asset value and rents of environmentally friendly
・Increasing demand for products and services thatbuildings
support disaster prevention and energy conservation
・Growing need for renewable energy and increasing ・Advances in ZEB technologies and cost fluctuations
revenue opportunities from selling electricity
・Energy conservation and renewable energy cost fluctuations
・Creation of new markets that contribute to theresolution of climate change
・Increased opportunities for collaborative projects
with governments, municipalities, and privateorganizations to realize a carbon-free society

・Improved competitive advantage of environmentally friendly
buildings
・Increased profits from new market entry
・Profit opportunities through collaborative projects

2. Formulation of Climate Change Scenarios
The TCFD recommendations propose explaining the resilience of

scenario by referring multiple climate change scenarios that include

our company strategies in light of an analysis based on different

key drivers for the material risks and opportunities that wereclimate-related scenarios including a 2°C or lower scenario.

identified.

We formulated a 2°C or lower scenario and a business as usual

58

Hulic Co., Ltd. Sustainability Book 2023

*1:For scenarios where the global average temperature rise is limited to 2°C or lower with at least 50% rate by 2100, the TCFD recommended it is imperative that one of the climatechange scenarios be a 2°C or lower scenario*2:Temperature rises from 3.8°C to 6.8°C between 2081 and 2100 in scenarios without additional measures/responses for climate change mitigation and adaptation

The following is a group of climate change scenarios for which

values when the parameters for the exact length of time were notparameters for the identified key drivers were collected whenfound in a scenario group.

External Evaluation

Type according to TCFD

formulating climate change scenarios. We also used estimated

Referenced Major Climate Change Scenarios[Transition Risks] Policy and legal, technology, market, society, reputation
Organization Name
International Energy
Agency (IEA)

Document NameBusiness as Usual Scenario

Corporate Governance

Drivers

Risk Type

2°C or Lower Scenario

World Energy Outlook 2019

CPS (Current Policies Scenario),
STEP(Stated Policies Scenario)

SDS (Sustainable Development
Scenario)

IEA

Perspectives for the Clean Energy
Transition, The Critical Role of
Buildings (2019)

NPS (New Policies Scenario)

FTS (Faster Transition Scenario)

2 Degrees Investing

The Transition Risk-O-Meter:
Reference Scenarios for Financial
Analysis (2017)

LCT (limited climate transition with
3-4°C decarbonation range) Scenario

ACT (ambitious climate transition
with 2°C transition) Scenario

Institute for Global
Environmental Strategies(IGES)The “net zero world” in 2050 Japan
Lock-in scenario(tentative plan)(2020)

Sustainability Data

Type according to TCFD
Risk Category

Transition scenario

Hulic Co., Ltd. Sustainability Book 2023

59

[Physical risks] Temperature rise, sea level rise, natural disasters (typhoons, floods, wind damage)The Intergovernmental Panel on
Climate Change (IPCC)

Document Name
Representative Concentration
Pathways (RCP) Scenario of Fifth
Assessment Report (AR5)Business as Usual Scenario■Hulic’s Basic Strategies

2°C or Lower Scenario

RCP8.5

RCP2.6

Climate Change Observation,
Ministry of the Environment, Japan
Forecast and Evaluation Integrated
Meteorological Agency, etc.
Report 2018

Forecast for annual averagetemperatures across Japan basedon IPCC AR5 RCP8.5

Forecast for annual averagetemperature across Japan
based on IPCC AR5 RCP2.6

Climate Change Adaptation
Information Platform (A-PLAT)

Observations by meteorologicaloffices, etc.

RCP8.5

RCP2.6IPCC

The Ocean and Cryosphere in a
Changing Climate (2019)

RCP8.5

RCP2.6

Aqueduct

Aqueduct Flood (2020)

Business as usual, RCP8.5, SSP2

Optimistic, RCP4.5, SSP2

Ministry of Land, Infrastructure,
Transport and Tourism, TechnicalStudy Group on Hydraulic Control
Plans Based on Climate Change

Hydraulic control plan based on
climate change (2019)

RCP8.5

RCP2.6

Environmental Initiatives

Organization Name

Our Approach to Sustainability

Environmental Initiatives

3. Risk and Opportunity Assessment
To examine the impact of climate change risks and opportunities on Hulic’s strategy, we evaluated transition risks and opportunities

Corporate GovernanceSocial Initiatives

in the 2°C or lower scenario and physical risks and opportunities in the business as usual scenario.

The financial impact of climate change risk was assessed greatest

evolving our business model based on current Medium-and Long-in the “medium-term” on the time horizon with the degreeterm Management Plan against social transformation towardsof impact at that time was assessed “medium.” On the otherdecarbonization by leveraging our motto of “driving innovation”

hand, the financial impact of climate change opportunities

and “accelerating progress”. In addition, as valuations increase

was assessed greatest over the “long-term” and the financial

for environmental initiatives for owned properties, we will build a

impact at that time was assessed “large.” Under the 2°C orcompetitive advantage in the leasing and development businesses.

lower scenario, we concluded that we will be able to continue

Furthermore, for the environment-related business field, we will

improving our corporate value through risk mitigation by flexibly

seize opportunities in providing new products and services.

External Evaluation

2°C or Lower Scenario Transition Risks and Opportunities■Continue on the basic strategies of current Medium-and Long-term Management Plan (further develop and evolve ourbusiness model based on the real estate leasing business)[Opportunity]:・ Environmental measures implemented at Company-owned
properties become highly valued as social transformation
occurs・O pportunities to entering new markets that help mitigate
climate change will be createdSustainability Data

[Risk]:・ Ability to promptly respond to a wide range of policies andregulations introduced as climate change countermeasures* Stages I, II, and III: displays progress in stages.

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61

Business as Usual Scenario Physical Risks and Opportunities

 e plan to mitigate climate change related risks by flexibly evolving our business model based on current Medium-and Long-term
・WManagement Plan against social transformation towards decarbonization by leveraging our motto of “driving innovation” and “accelerating
progress”. against social transformation towards decarbonization.
 e concluded that we will be able to continue improving our corporate value by building a competitive advantage in the leasing and・Wdevelopment businesses as valuations increase for environmentally friendly technologies adopted in our properties and seizing opportunities
in providing new products and services in the environment-related business field.

Physical risks become apparent as greenhouse gas emissionsacquired, as well as the mitigation of physical risks through designcontinue to climb and climate change remains unmitigated.

standards and disaster prevention measures in Hulic properties.

However, the financial impact of climate change has been

Looking at our opportunities, we believe that there will be no

estimated as “minimal” on the back of a detailed examination offinancial impact as we do not expect any additional opportunities

natural disaster risks conducted when properties are developed orfrom climate change.

■Maintain current priority area, location policy and portfolio composition by use as described in the current Mediumand Long-term Management Plan
[Risks]:・Physical risks, such as natural disasters due to climate change,
will become apparent[Opportunities]:
・Opportunities up to 2030 have already been incorporated
into the Medium-and Long-term Management Plan・N
 o additional opportunities pertaining to climate change
after 2030 and therefore no financial impact■Conclusion:1• Sea level rise: The assumption that average global sea levels will rise 0.45 to 0.82 m*

Environmental Initiatives■Conclusion:

Our Approach to Sustainability

Environmental Initiatives

after 2081 is out of scope• Temperature rise: The increase in air-conditioning-related costs (costs for improving air-conditioning equipment and utility costs due to rising• W ind damage (typhoons): Considering past typhoon damage experiences, the impact was determined to be minimal

Basis for Financial Impact
Assessment

Risk Scenario

Sea level
rise

Average global sea levels rise 0.45 to
0.82 m*1 (comparison with the 1986–
2005 average in 2081–2100)

Flooded/submerged

Japan's temperature rises 1.1 to 3.1
degrees Celsius (2031–2050)-Increased cost of
air-conditioning
equipment
expansion-Increased energy
costs

MinimalIf temperature rises +3.1°C in
2030:
・Increase in costs related toair-conditioning equipment
expansion: Minimal
・Energy cost increases: Minimal

Flood damage

MinimalDamage caused by pasttyphoons: Minimal

Not applicable to the time
horizon (up to 2050)

Number of typhoons approaching Japandecreases or pattern changes
Typhoons

Acute
Risk

Financial impact matrix

62

Impact Classification

Ratio to Consolidated Ordinary Income

Amount / YearLarge

30% or higher

JPY 30 billion or more

Medium15% or higher, less than 30%

JPY 15 billion or more, less than JPY 30 billion

Small

5% or higher, less than 15%

JPY 5 billion or more, less than JPY 15 billion

MinimalLess than 5%Less than JPY 5 billion

Hulic Co., Ltd. Sustainability Book 2023

There is a strong possibility that thefrequency of severe typhoons (category
4 or higher, maximum wind speed 59
m/s or higher) will increase over thesouthern seas of Japan

Storm surgeHigh tides with a recurrence period of
100 years occurs every year (2050–2070)

Flood damage

Torrential
rain

Increased frequency of short-term heavy
rainfall in all regions and seasons

Flood damage

Implementing countermeasures
for flood damage

FloodsFrequency of flooding quadruples (2100)

Flood damage

Implementing countermeasures
for flood damage

Inlandwaters

The frequency of inland flooding
increases in proportion to increase intorrential rains

MinimalMinimalFlood damage

Implementing countermeasures
for flood damage

Implementing countermeasures
for flood damage*1.Compared wirh 1986 –2005 average. Shown as highly likely in the IPCC RCP8.5 scenario

Hulic Co., Ltd. Sustainability Book 2023

Corporate GovernanceTemperaturerise

Out of scope ofanalysis

External Evaluation

Chronic
Risk

Occurrence

Evaluation on
Financial Impactof Climate Change

Risk Event

Sustainability Data

Types of
Risk

Social Initiatives

temperatures) is minimal• Flood damage (typhoons, torrential rain, floods, inland water, storm surges): Minimal due to measures already taken

63which is chaired by the President and Representative Director, under the oversight of the Board of Directors.

Mechanism for Identifying and Assessing Climate Change Risks and Opportunities

Mechanism for Managing Climate Change Risks
Corporate Sustainability Department, which is in charge of mattersstrategies for minimizing the identified risks and reflecting them

related to climate change, engages in planning, proposals andin planning, budgets and targets. The status and response to risk

management related to climate change, including the process

management deliberated and coordinated by the Sustainabilityof identifying and assessing the impact of climate change, theCommittee is reported, along with other agenda items, at least

Corporate Sustainability Department, which is in charge ofchange. Risk assessments are reported at least once a year or

mechanism for managing identified impacts and the mechanism

once a year or as needed to the Board of Directors.

matters related to climate change, leads the identification of risks

as needed to the Board of Directors, along with other climate

for their integration into Group-wide risk management. The

The Risk Management Committee meets regularly to evaluate

and opportunities and monitors the effects of climate change inchange matters deliberated and coordinated by the Sustainability

Department also submits reports and recommendations to thereports and recommendations from each risk management

conjunction with related departments within Hulic and Group

Committee.

Sustainability Committee and promotes Group-wide responses

department, discuss Group-wide risks and take appropriatecompanies. In addition, appropriate measures are considered and

The Board of Directors receives reports from the Sustainability

to climate change. It also plays a role in integrating the impact

measures, and reports to the Board of Directors. When there arereports and recommendations are submitted to the Sustainability

Committee on climate change matters, including the riskof climate change into Group-wide risks by submitting reports

reports or recommendations regarding the impact of climate change,

Committee at least once a year.

management status and response, and oversees the efforts toand recommendations when necessary to the Risk Management

the Risk Management Committee will determine appropriate

The Sustainability Committee deliberates and evaluates theaddress issues and the targets set.

Committee regarding the identified impacts of climate change.

measures from the perspective of Group-wide risk management.

The Sustainability Committee deliberates and evaluates the

The Board of Directors receives reports on climate change risk

reported impacts of and recommended responses to climate

management and responses from the Sustainability and Riskchange. In addition, deliberations and coordination are made toManagement Committees, and oversees such risk management

adapt to climate change, including the formulation of policies andand responses.

reported impacts of and recommended responses to climate

Organization/
Department
Board of Directors

Function• Receives reports on climate change risk management and responses from Sustainability and Risk Management

Committees, and oversees such risk management and responses• Deliberates and evaluates the reported impacts of and recommended responses to climate change

Environmental Initiatives

Matters related to climate change, including risk management, are centrally deliberated and coordinated by the Sustainability Committee,

Social Initiatives

Risk Management

Our Approach to Sustainability

Environmental Initiatives• Deliberates and coordinates in order to adapt to climate change, including the formulation of policies andSustainability Committee

strategies for minimizing the identified risks and reflecting them in planning, budgets and targets• The status and response to risk management deliberated and coordinated by the Sustainability Committee is

Corporate Sustainability
Department (Department
in charge of climate

Board of Directors• Engages in planning, proposals and management related to climate change, including the process ofidentifying and assessing the impact of climate change, the mechanism for managing identified impacts andthe mechanism for their integration into Group-wide risk management• Promotes Group-wide responses to climate change• Submits reports and recommendations to the Sustainability Committee and Risk Management Committee

Sustainability Data

External Evaluation

change-related matters)• Determines appropriate measures from the perspective of Group-wide risk management and reports to the

Corporate Governancereported regularly and as needed to the Board of Directors
Risk Management
Committee

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65

Rationale for each KPI

Hulic identifies materiality and the Sustainability Committee sets

Climate change KPIs, results and progress assessments are asGreenhouse Gas Emissions Reduction Targets

key performance indicators (KPIs) for each materiality and evaluates

follows.

In accordance with Hulic’s long-term vision for the environment,

our proprietary solar photovoltaic equipment. Hulic believes that it

we established medium- to long-term targets for climate change tois important to take actions to combat climate change by reducing

reduce greenhouse gas emissions. We plan to achieve these targets

greenhouse gas emissions in Scope 1 and 2 as well as throughout

Assessment

by converting electricity consumption of all Company-owned

the value chain (Scope3).

◎: achieved〇: progressedbuildings* to renewable energy sourced electricity generated byprogress by reviewing results.

Greenhouse gas emissions
reduction targets*1

Specific Targets

Coverage

Scope 1+2*2
2024 reduced by △70%;2030 reduced by △70%;
2050 substantially zero(base year: 2019)

Scope1 and 2: Properties
where the Hulic Grouphas control of energy
management

Scope3*32030 reduced by △30%;
2050 substantially zero(base year: 2019)

Scope3: Indirect emissions
other than Scope1 and 2
related to Hulic Group’sbusiness activities

2022*Excludes single-tenant lease properties, residential properties, unmanaged shared properties for which we do not manage energy, and real estate for sale, etc.

RE100 Progress Rate
〇

-15%

〇

5%

10% in 2021
30% in 2022
65% in 2023
100% in 2024

Electricity used in Hulic
Group business activities

47%〇

Number of times the Sustainability
Committee engaged in climatechange monitoring

One or more times
annually

Hulic Co., Ltd.

1 time◎Number of Environmental
Advisory Council held

One or more times
annually

The RE100 progress rate*4

Major related SDGs

RE100 stands for “Renewable Electricity 100%,” an international

retail electricity supplier (PPS), Hulic Property Solutions, to buildings

initiative aimed at using only renewable energy as the source ofoccupied by Group companies. We plan to provide all of theelectricity used in business activities.

approximately 60 GWh of electricity used annually by Group

Hulic joined RE100 in 2019, and in 2020, started to develop

companies from Hulic-owned renewable energy sources, and inphotovoltaic equipment that does not use the FIT system (non-order to achieve that goal we set progress target for each fiscal

FIT). Electricity derived from non-FIT renewable energy generated

year as a milestone. Achieving RE100 in 2023 reduces our Group's

by Hulic-owned power sources will be supplied by Group company

electricity-derived greenhouse gas emissions to zero.

Number of Times the Sustainability Committee Engaged in Climate Change Monitoring and Number
of Environmental Advisory Council Held
We have set the above as KPIs with the aim of confirming the operational status of corporate governance related to climate change.
Organization

Hulic Co., Ltd.

◎

1 timeConfirmation of Operational Status• Evaluates the impacts of climate change on business, and takes steps to mitigate identified risks andSustainability Committee

generate opportunities• Sets KPIs for sustainability, including climate change, reviews performance and manages progress

Related Indicators

Annual generation of renewableenergyAmount of investment in solar photovoltaic equipment that does not use
the FIT system

Related KPISpecific Numerical
Values and Targets

ResultAssessment

2021

2022

◎: achieved〇: progressed

RE100 progress
rate*4

Approximately 60
GWh(annually)

8,076,601kWh

28,177,586kWh〇

Greenhouse gas
emissions reduction
targets*1

Approximately JPY
66 billion (cumulative
amount by 2030)*5

JPY 4.7 billion

JPY 12.1 billion〇

Environmental Advisory
Council• Top management directly discuss and receive advice and suggestions from external advisors on our

initiatives related to environment including climate change

External Evaluation

The following are managed as other related indicators.

Corporate Governance

KPIs(non-financial key performanceindicators)

Environmental Initiatives

Key Performance Indicators (KPIs)

Social Initiatives

Metrics and Targets

Our Approach to Sustainability

Environmental Initiatives

Sustainability Data

*1:Absolute contraction targets, Base year: 2019. Hulic has had its near-term (by 2030) emissions reduction targets approved by the Science Based Target initiative as consistent with levels
required to meet the goals of the Paris Agreement.
*2:Greenhouse gas emissions from directly owned or controlled sources plus indirect purchased energy for business activities.
Scope 1: direct emissions (e.g., emissions from natural gas and other fuel combustion).
Scope 2: indirect emissions (e.g., emissions from the use of purchased electricity, heat and steam).
*3:Greenhouse gas emissions from external companies affiliated with internal business activities (in the supply chain). Targets were set for Categories 11 and 13, which cover approximately
80% of Scope 3.
*4:Targets are set according to the amount of power generated by Company-owned non-FIT solar photovoltaic equipment during the target year divided by the total amount of electricity
used at the Hulic head office building and on the floors occupied by Group companies in one year (an estimate of final target year).
*5:Initial target term. It was then moved forward by one year to 2029.

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67

Hulic places emphasis on dialogues with our
stakeholders and aims to achieve a society where
people live safely, securely, and comfortably.

Earthquake-absorbing Structures

Earthquake-damping Structures

By isolating the building from the ground with a mechanism called

With earthquake-damping materials installed inside the building,

an isolator, seismic energy is absorbed to reduce the intensity ofinternal seismic energy is absorbed to reduce the intensity ofshaking to 10%-50% compared to other general earthquake-shaking from half to one thirds compared with other general

resistant structures as a general building structure.

earthquake-resistant structures.

Fundamental
Approach

Environmental Initiatives

Initiatives for Customers

Our Approach to Sustainability

Social Initiatives

We are constantly working to generate new added value by offering properties that are superior
in terms of safety, environmental performance, and convenience.
In addition, we have established various emergency and disaster scenarios, for which we havecreated measures to improve the structural performance of our buildings, as well as operationaland management aspects of buildings.

《Results in FY2022》 100% Properties Meeting Hulic's Earthquake-resistance Standards
Customer satisfaction: 94.6%

the time of acquisition. We are working to ensure that by 2029 allpriorities for a real estate developer in Japan as it is one of theof our buildings*2 (excluding buildings scheduled for reconstruction

countries where earthquakes most frequently occur. We believeby the end of 2025) can withstand earthquakes with a seismic

If Mt. Fuji erupted, the transportation infrastructure could betenants to return home early and organize

it is our responsibility to provide earthquake-resistant building

intensity of 7 level.

shut down and electricity and other utilities could be disrupted.

a system and install the necessary

safety in order for the tenants to conduct social activities with

*1 Earthquake-resistance standards as specified by Hulic are where building performancecan safeguard human life and enable continued use of the building with postearthquake repair in the event of an earthquake with a seismic intensity of 7 level.

Consequently, we are taking tangible action by developing

equipment for quick recovery work after

equipment that prevents volcanic ash from entering pipes inan ashfall.

*2 Excludes properties for which we do not have energy management authority including
master lease properties, residential properties and non-managerial co-ownershipproperties, and real estate for sale,etc.

storm drains and by installing this equipment in company-owned

peace of mind. We have therefore established our own earthquake
resistance standards*1 that are stricter than the Building Standards
Act, and we apply these standards to all the buildings that we

Measures Against Ashfallbuildings. In a less tangible way, we have a policy to promote

Drain cap with filter

develop or reconstruct, and we conduct a seismic assessment at

Liquefaction Countermeasures

Earthquake Resistance Diagnosis, Reinforcement
Works, and Confirmation of Validity of Structural
Calculation

After the Great East Japan Earthquake, extensive regions including

located on ground with possible liquefaction. However wecoastal areas in Tokyo suffered from liquefaction, which caused

concluded that these buildings were not significantly affected

We diagnosed the earthquake resistance of all Company-owned

damage such as buildings leaning over and sinking.

by liquefaction due to the fact that the planning of appropriate

buildings* that were built before the new earthquake resistanceAccording to the liquefaction map issued by the government,

building foundations befitting the sites.

standards were established in the Building Standards Act revised

it was found that four buildings owned by the Company were

Corporate Governance

Hulic considers earthquake countermeasures as one of the top

Social Initiatives

Thorough Implementation of an Earthquake Resistance Diagnosis and Seismic Reinforcement

seismically reinforced.
* Excludes buildings with box frame type reinforced concrete construction and buildingsthat will be demolished for reconstruction.

Measures against Water Damage
Seismic reinforcement using steel brace (LICOPA Tsurumi)

Proactive Adoption of Earthquake-absorbing and Earthquake-damping Structures

When electric facilities are damaged by floodwater, the supply of

in a flood, and examine application of flood control measures topower, which is essential for the use of a building, can stop fortake necessary measures as needed in supposition for localized

an extended period. We investigate the status of buildings withheavy rains caused by climate change and tsunamis caused bypower receiving and transforming equipment and private power

earthquakes.

External Evaluationin 1981, and all buildings that did not meet the standards weregenerators that are installed in floors expected to be submerged

In order to protect human life and functions of facilities from large
newly constructed buildings. With the aim of protecting customers'

Efforts toward the Improvement of Customer Satisfaction

lives and contributing to business continuity, we have proactively
adopted an earthquake-absorbing or earthquake-damping

As office buildings, stores, and residences owned by Hulic serve as

In order to satisfy all customers using buildings including tenants

structure which is effective at ensuring a high seismic capacity, in

the infrastructure for customer's social activities, we are aiming toand visitors to the buildings, we thoroughly stick to meticulous

addition to other methods to improve the seismic capacity.

constantly improve their quality under the philosophy of providing

quality control, careful maintenance, and security to protect assets.

customers safety, peace of mind and convenience.

Sustainability Data

scale earthquakes, we have imposed high seismic capacity on

Earthquake-absorbing equipment

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69

We conduct an annual customer satisfaction survey for tenants

has mainly reflects our planned

Each year, Hulic evaluates the implementation status of＜Primary evaluation items＞

of Hulic’s properties. Survey items include matters concerningfacility reinforcement and quick

management work and provides property management companies-Confirm to check if maintenance work for buildings and facilities,building hardware and software, and things customers have

response to the matters requested bywith feedback to improve and standardize the quality of their

including complying with legal requirements applicable tonoticed while using our buildings on a daily basis. We carefully

customers. Furthermore, the persons

work.

buildings, has been performed systematically and thoroughly

go over the customer responses, and then take steps to identify

in charge responded or replied to

We use the results of evaluations as information to decide whether

without omissions as stipulated in the contract.

customer needs and make improvements accordingly. In the survey

customers' opinions and requests

to continue to entrust management work with the current property-Confirm the status of legal compliance, including the status of

conducted in 2022, we continued to receive high ratings with aafter the survey.

management companies in accordance with the rules for real

renewing the verification due date of measuring instruments, etc.

estate outsourcing management.

and submission of mandatory inspection results reports to thesatisfaction level of 94.6% (in 2021, 92.2%). We believe the results

relevant regulatory authorities.
-Confirm that defects occurring unexpectedly, including those pointed

Initiatives for Providing Healthy and Comfortable Spacesout during the legal inspection, have been fixed without delay.

Hulic is undertaking the following initiatives to provide healthy and comfortable properties to our stakeholders.

not contain toxic substances)● Greening of building surroundings, introduction of naturalventilation and lighting systems● Introduction of an indoor air quality improvement system using

composite ceramic functional materials

measurement after completion● Active upgrading to energy-saving equipment and otheradvanced equipment

Initiatives for Energy Savings in Existing Buildings
In 2022, as part of our initiatives for decarbonization acrosscommitment to the environment as building owners. Going

the entire value chain, we conducted explanatory sessions withforward, we will continue outreach to customers and work toward

our customers—focusing on office tenants—to discuss ourmore energy efficiency.

● Conducting of preventive maintenance before issues arise inbuilding or equipment● Many of the properties owned are located near stations,providing easy access to transportation

Responsible Marketing
Hulic has set out the principle of “treating clients faithfully andWith regard to important company information, we aim to disclose● Acquisition of CASBEE Wellness Office certification for developed

kindly, listening to their requests with sincerity and providing

information with accuracy based on the facts, and in a way that

office buildings as verifications for buildings that support thesophisticated, efficient, and high-quality services” in the Basicis easy to understand in accordance with the rules for disclosure

maintenance and improvement of the health and comfort of the

Principles of Corporate Conduct and endeavors to build positive

control. Furthermore, we disseminate information through various

people in the buildings

relationships with clients. In addition, we obtain the necessary

media by creating a company website, publishing press releases

permits and licenses for conducting business operations andin a timely manner, and setting up signboards at train stations,

Collaborating and Cooperating with Business Partners during and after Disasters

comply with matters stipulated by various business laws andwith the aim of fostering a feeling of familiarity with our company

In the event of a disaster, we have introduced an Internet- based

We concluded contingency agreements with the construction

regulations.

widely among the public.

safety confirmation system for swift confirmation of the state andcompany of building concerning restoration and recovery, enabling

to share information with building management companies.

collaboration and cooperation in the event of a disaster.

Promoting Future Growth Businesses

Introduction of an Indoor Air Quality Improvement System using Composite Ceramic Functional
Materials

Hulic views social issues as business opportunities. We work

society, in addition to businesses related to senior citizens, tourism,

together with stakeholders to resolve them and to realize theand the environment, we are engaged in agribusiness, children’s

Hulic is working to improve indoor air environments and toindoor air improvement system that can be installed in ceilings,

creation of new value. As to be a Company that grows witheducation, and Bizflex (flexible office spaces).

promote the adoption of technologies from Shinshu Ceramics

which we have introduced in nursing homes we construct.

Co., Ltd., a company with unique technologies. HEPA filters

In addition, we jointly developed a small air purifier called

incorporating Shinshu Ceramics' proprietary earthplus™ material

earthmirage2 with a manufacturer that incorporates a HEPA filter

adsorb 99.9% of and decompose bacteria and virus particles

using earthplus™ material and started sales in 2021. As a measure

floating in indoor air. To prevent the spread of infectious diseases

against infectious diseases during face-to-face meetings, Hulic has

in facilities for seniors, we have combined HEPA filter units using

installed this small air purifier in conference rooms at the Hulic

earthplus™ material with humidifiers that optimally maintain

Headquarters and the Hulic Annex to ensure the safety and security

indoor humidity when using indoor heating. We developed a newof our customers.

Holding Regular Management Status Reporting Meetings with Property Management Companies
Hulic regularly holds property management status reportingWEB

3 future growth businesses (senior citizen-, tourism-, and environment- related businesses)
https://www.hulic.co.jp/en/business/index.html#anc3

TOPICSFUFU Nikko received a Good Design Award 2022 (issued
by the Japan Institute of Design Promotion)
FUFU Nikko is located in a very attractive place, adjacent to the World
Heritage "Shrines and Temples of Nikko" area including Nikko Toshogu
Shrine, and next to Nikko Tamozawa Imperial Villa Memorial Park. There are
24 guest rooms with different designs, all with natural hot spring baths. It

meetings with property management companies to check thework that contributes to the preservation of the local landscape and culture.

with laws and regulations, and receive reports on various problems

Sustainability Data

wins a Good Design Award 2022 in recognition of the designer's careful

implementation status of management work, including complying

Exterior

related to buildings, including the results of measures to fix defects
that have occurred in buildings. In this way, we are promoting themaintenance and improvement of quality, as well as unifying thequality of overall property management and operation services.

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Hulic Co., Ltd. Sustainability Book 2023

Social Initiatives

developed (Use of interior finishing materials and fittings that do● Measurement of indoor environment at and periodic

Corporate Governancematerials, etc. for existing properties and properties being

External Evaluation● Verification of specifications of facilities introduced and interior

Environmental Initiatives

Quality Evaluation for Management Companies

Customer Satisfaction Survey

Our Approach to Sustainability

Social Initiatives

Management status reporting meeting with property
management companies

Hulic Co., Ltd. Sustainability Book 2023

71

Fair Trades with Outsourced Contractors

procurement and purchasing to further develop our sustainability initiatives. In addition, we promote sustainability activities across the entire
value chain by applying this policy to business partners as well.
1.We will comply with laws, regulations and social norms,⑥Reduction of excessive working hours

and undertake business activities based on a set of

In addition to ensuring compliance with labor-management

corporate ethics.

agreements, including the 36 Agreement and laws and2.We will respect the fundamental human rights of all

regulations of relevant countries and regions, we adopt basic

Considering long-term business relationships with outsourced

outsourcing management, respecting related laws and regulations

people.

contractors, we work to ensure fair trade with them as a partner on

as well as guidances from administrative organizations. We select①Prohibition of discrimination

an equal footing. Regarding outsourcing by the real estate businessan outsourcing contractor that is most appropriate for each project

We prohibit any discrimination against any person on

In accordance with laws and regulations of relevant countries

division, we ensure fair trade based on the rules for real estateby checking track record and abilities to execute operations.

the ground of his or her belief, religion, age, sex, sexualand regions, including the Labor Standards Act, we endeavororientation, race, nationality, origin, physical or mental

to offer a workplace where workers can work healthily anddisability, etc.

safely.

Cooperation with Building Management Companies②Prohibition of harassment

Hulic Building Management Co., Ltd. inspects and evaluates
management conditions once a year based on the rules for real

WEB

Initiatives for Providing Healthy and Comfortable Spaces
https://www.hulic.co.jp/en/sustainability/social/customers/#anc2

estate outsourcing management and makes a round to provides

We prohibit any act, including sexual harassment or abuse

Educational Activities through Compliance Training⑧Payment of wages over minimum wage
We pay wages over minimum wages prescribed in various local

of authority, to inflict emotional distress on any person bylaws and regulations as well as the Minimum Wage Act.

language or behavior that damages his or her character or

3.We will take consideration of environmental conservation

dignity.

guidance to each company based on the assessment results.

policies to reduce overtime work and limit excessive work.
⑦Securing of health and safety of workers

and will strive to promote green procurement.

③Prohibition of child labor

We will endeavor to conduct procurement in accordance

We prohibit any child labor.

with the Hulic Green Procurement Policy in order to realize④Prohibition of forced labora sustainable society.

Our compliance manual (the code of conduct) specifies businessAll employees are reminded through these efforts that providing

We prohibit any forced labor carried out through violent acts

entertainment/gift and prohibition of bribery. We implementbusiness entertainment or gifts for business partners in an improperor intimidation.

internal compliance training in a timely manner to raise awarenessmanner may impair appropriate business relationships and theamong our employees of rules such as prohibiting giving

soundness of business, and that such conducts violate our internalof collective bargaining

donations, offering business entertainment, and giving gifts torules and regulations and the compliance manual. Our employees

In line with international labor standards, we respect the right

6.We will strive to provide safety, peace of mind and highpublic servants or other interested parties. Furthermore, twice aare encouraged to report directly to the compliance hotline whenof freedom of association and right of collective bargaining.

quality.

year, our Legal & Compliance Department monitors whether eachthey notice any problematic doings including violation of laws or

department properly manages the entertainment of interested

code of conduct.

parties and the acceptance or offering of gifts or other articles.

Framework for Collaboration and Cooperation with Business Partners⑤Respect for the right of freedom of association and right

4.We will build an information management system andmanage information appropriately.
5.We will carry out fair and equitable business transactions
and build trusting relationships with business partners.

Initiatives for PPP project
Hulic promotes the creation of social and economic values throughabundant development track record and a stable business base as

Public Private Partnership (PPP) projects from the viewpoint of not

one of the leading companies of PPP projects. Taking into accountonly real the estate business but also addressing social needs andchallenges and needs of administrative agencies and communities[Framework for collaboration and cooperation with building[Framework for collaboration and cooperation withchallenges.

through exchanges of information with them, we aim to contribute

management companies]

construction companies]

PPP projects intend to efficiently utilize and operate real estate

to the regional economy by realizing business to improve the value● The emergency contact network for emergencies during night

We have concluded contingency agreements with major

owned by national or local governments (public real estate)of public real estate through collaboration between the public andtime or on holidays has been established between Hulic andconstruction companies under which they agree to cooperate

through collaboration and cooperation between the public andprivate sectors by settling the issues of the communities.

building management companies. With this network, weto assess destruction status and damages of Hulic’s buildings

private sectors. We are actively engaged in PPP projects by utilizing

maintain a framework for responding promptly to emergencies.

immediately following a large-scale disaster, and offer full● We have introduced a safety confirmation system with realestate management companies through the Internet for swiftlyWEB

PPP project
https://www.hulic.co.jp/en/business/other/develop/#anc1

putting the highest priority on ensuring safety.

Cooperative Structure with Business Partners
Sustainability Datasharing information and verifying the extent of damage.

cooperation for the restoration and recovery of our buildings while

Environmental Initiatives《Results in FY2022》 Evaluated the status of work implementation of outsourced property management companies

Hulic actively engages in sustainability activities as a company involved in the real estate industry. We have formulated a policy on

Social Initiatives

We aim for close mutual communication with our business partners, and build relationshipsthat mutually enhance the corporate value of both parties. Additionally, Hulic strives to createshared value with stakeholders by resolving various social issues through PPP business.

Corporate GovernanceFundamental
Approach

CSR Procurement Policy

External Evaluation

Collaboration with Business Partners

Our Approach to Sustainability

Social Initiatives

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73

Priority Themes Related to Human Rights
We prohibit any discrimination against any person on
the ground of his or her belief, religion, age, sex, sexual
orientation, race, nationality, origin, physical or mental
disability, etc.

focused on companies and human rights

2. Prohibition of harassment

Respect for Human Rights
The Company has established the Hulic Human Rights Policy,

human rights encompasses all fundamental human rights found inwhich proclaims respect for human rights so that all employees

the Constitution, Labor Standards Act, and Universal Declaration

can maximize their abilities and contribute to the realization ofof Human Rights, as well as human rights related to equala society full of peace of mind and trust. In our Human Rights

employment, prohibition of forced labor and child labor, freedom

Policy, we declare that we prohibit any acts of discrimination andof association, and collective bargaining stipulated in the ILO's

harassment, as well as any discrimination against any person on theinternational labor standards.

ground of his or her beliefs, religion, age, sex, sexual orientation,

In FY2021, we used our intranet to share information for all Group

race, nationality, origin, physical or mental disorder, etc. We also

companies on the Hulic Human Rights Policy. In FY2022, we posted

prohibit any act, including sexual harassment or abuse of authority,

information about companies and human rights on the intranet for

to inflict emotional distress on any person through language or

all Group companies.

behavior that damages his or her character or dignity. Respect for

Based on the United Nations’ Guiding Principles on Businessand Human Rights, we have established the Hulic Human
Rights Policy (hereafter “the Policy”) so that all employees canmaximize their abilities and contribute to the realization of asociety full of safety, peace of mind and trust.

3. Implementation of Human Rights Due Diligence

3. Prohibition of child labor
We prohibit any child labor.

4. Prohibition of forced labor

In addition to ensuring compliance with labor-managementagreements, including the 36 Agreement and laws andregulations of relevant countries and regions, we adopt basic
policies to reduce overtime work and limit excessive work.

7. Securing of health and safety of workers
In accordance with laws and regulations of relevant countries
and regions, including the Labor Standards Act, we endeavor
to offer a workplace where workers can work healthily andsafely.

8. Payment of wages over minimum wage
We pay wages over minimum wages prescribed in various
local laws and regulations as well as the Minimum WageAct.

We prohibit any forced labor carried out through violent acts
or intimidation.

5. Respect for the right of freedom of association
and right of collective bargaining

Revised April 2023

Takaya Maeda

In line with international labor standards, we respect theright of freedom of association and right of collective
bargaining.

President, Representative Director
Hulic Co., Ltd.

Through dialogue with stakeholders and other means, we
assess in advance any negative impacts on human rights
and take both preventive and improvement measures. In

Communicating the Hulic Human Rights Policy and Labor Standards to All Employees

addition, we evaluate the performance and effectiveness of

We communicate the Hulic Human Rights Policy and labor standards, including employment regulations and labor contracts, to allthese measures and disclose relevant information.

employees* through compliance training and in other ways to ensure understanding and full assimilation.
* All employees are engaged in business in Japan.

1. Adherence to International Human Rights
Standards
We uphold and respect international standards related tohuman rights. These include the International Bill of Human
Rights and ILO Declaration on Fundamental Principles andRights at Work.

2. Scope of Application
The Policy applies to our all officers and employees, andwe strive to raise their awareness through training andother means. In addition, we expect our customers andbusiness partners to support the Policy and cooperate with
us in promoting efforts to respect human rights throughIf it becomes clear that we have had a negative impact onhuman rights due to its business activities, or that it has been

Management of Risks regarding Labor and Human Rights Issues

complicit in such impact, we work to correct and remedy

We endeavor to prevent violation of laws related to labor andBoard of Directors is also regularly kept aware of the content

the situation using appropriate procedures. In addition, we

occurrence of accidents. Although risks of child labor and forcedof these reports. As a result, there have been no situations thatmaintain a system for reporting and consulting about any

labor are low at Hulic as we have developed a highly specialized

threaten such risks as freedom of association, collective bargaining

acts that have a negative impact on human rights.

business mainly in Tokyo, we declare that we do not permit

rights, child labor, forced labor, security practices, or indigenous

any form of child labor or forced labor. In order to prevent suchrights.

labor, we regularly audit compliance with laws in employment

Recently, as part of compliance training for all employees, we held

5. R
 eview of Priority Themes Related to Human
Rightsmanagement and also provide compliance education, including

training sessions on preventing power harassment. We also invitedPriority themes related to human rights are listed below. As

regarding the prevention of child labor and forced labor, toan outside lecturer and provided training for preventing the abuse

these priority themes may change in response to evolving

employees.

of power for officers and general department managers. For all

business and social conditions, we revise them as needed.

For managing human risk, the department in charge determines

Group companies, using our intranet we distributed informationand evaluates the situation before reporting to the Riskon the Hulic Human Rights Policy and posted information on such

Management Committee and making recommendations. The

themes as LGBT lifestyles and harassment.
Sustainability Data

compliance with the Policy.

4. C orrections and remedies

Corporate Governance

The Hulic Human Rights Policy

We prohibit any act, including sexual harassment or abuseof power, to inflict emotional distress on any person bylanguage or behavior that damages his or her character or
dignity.

6. Reduction of excessive working hours

Environmental Initiatives《Results in FY2022》 Implemented an awareness-raising campaign across all Group companies using our intranet that

1. Prohibition of discrimination

Social Initiatives

We respect human rights and strive to perform transparent corporate activities based on ourhigh ethical standards.

External Evaluation

Fundamental
Approach

Our Approach to Sustainability

Respect for Human Rights

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75

Social Initiatives

Promoting Internal Communication / Sharing Corporate Philosophy《Results in FY2022》 ●Number of additionally obtained qualifications by employees in total：25

Hulic has a small workforce, which enables a distinctively close

management and employees, making it easy to communicate

distance between each employee, as well as between top

within the Company.

Specific methods for communication include:●C areer Development Interviews●P resident's Message

The president communicates companywide developments in a

Initiatives to Create a Highly Productive Organization

message sent out to all employees every month. This allows us tounderstand company philosophy and developments throughout
the Company.

Hulic is made up of a small group of elite professionals and thisclass architects, real estate appraisers, lawyers, certified accountant

is one of our strengths. Our Ordinary Income per employee isand others.

approximately JPY560 million. We believe that this figure reflected

In order to create a highly productive organization, we place

our status as top-notch among the listed companies in Japanpriority to unbiased talent acquisition, enhance next-generation

boasting excellent productivity. To ensure we remain a group of

nurturing support systems and welfare programs, embrace diversity

professionals, we place particular emphasis on human resources

and work style reform, and advance health and productivity

We conduct a survey twice a year that allows all employees todevelopment. We have been encouraging employees to obtain

management in addition to talent development.

share their thoughts directly with the president.

●T op Seminar

Supervisors regularly conduct interviews with employees
to confirm their goals and expected roles, and to evaluate
performance.
● Interviews with the Human Resources Department:

A member of the Human Resources Department conducts
interviews so that both the employee and the Company canSocial gatherings with the president are held twice a month forgain a deeper understanding of individual career paths, among

approx. 8 employees under the age of 40.

others. From these interviews, a framework is developed that●P
 resident Survey

allows every employee to work independently on their own
career development.
● Infomation is provided on the Company intranet, as needed.

Environmental Initiatives

Fundamental
Approach

Hulic aims to create a vibrant and highly productive organization by drawing up the righthuman resource strategies, such as securing and developing human resources and improving theorganizational framework.

Our Approach to Sustainability

Human Capital Management

qualifications, and the list of our professional staff included first-

Initiatives to Create a Small Group of Elite Professionals
Improving Talent Development Programs
Overview of Talent Development Programs

a five-point scale and to provide feedback on suggestions forclasses and new graduates to improve the content of our training.

improvement. We are also working to improve the content of the

At the end of each training session, participants are asked totraining based on the opinions of the participants gathered.

rate the content of the training and instructor satisfaction on

be approached with a long-term perspective in a planned manner.
The managers and the Company strongly support employees intheir efforts in obtaining qualifications and further developing skill

Providing Internship Programsets by sharing the common view on professional development.
In addition, we create highly motivating jobs by developing a

We provide an internship program for undergraduate and graduate

our identity through acquiring knowledge of real estate developer’s

work environment where employees can continually develop

students at the Head Office Building (or online), intended for

affairs and verifying projects. Approximately 80 students

new business ideas and take on challenges. Our Initiatives in thisunderstanding of the real estate industry. We offer a program

participated in FY2022.

area include introducing optional training programs that allow

where the participants can learn about the real estate business andemployees in their second or third years to take training programs

External Evaluationof their choice as well as on-the-job training for new employees.

Providing High Level of Fringe Benefits
Since Hulic maintains a small workforce of elite professionals, weback to employees drives further growth for the Company in what

believe that it is important to give back to stakeholders, including

we see as a positive cycle.

Corporate Governance

Hulic considers talent development to be a top priority that should

We are conducting a survey of participants in English conversation

Social Initiatives

Survey of Participant Satisfaction with Internal Training Programs

Sustainability Data

employees, as the Company grows. This commitment to giving

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77

Work-life Balance

employees can easily take paid time-offs and to avoid long work hours.
《Results in FY2022》 Usage rate of paid leave: 77.7％†* Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

Initiatives for Striking a Work-life Balance
Hulic is pouring effort into enhancing our next-generation

Advancement of Measures to Support Raising Next-Generation

nurturing support programs and a program ensuring a balanceChildren, set targets for the development and thoroughbetween work and nursing in the aim of supporting employees

notification, etc. of the work-life balance support system, and are

and their families. With regard to support for the next generation,

conducting activities to these ends. In January 2021, we introduced

Hulic aims to achieve a higher level than the legal standard anda new hourly childcare and nursing care leave system. As a result of

has established various systems in this regard. In addition, wethese initiatives, over the past ten years (2013-2022), the ratio ofare working to create employee-friendly environments where all

women returning to work following childcare leave has increased

employees can make the most of their abilities. Accordingly, weto 100%. Elsewhere, the turnover rate due to nursing care has

have established an action plan in accordance with the Act on

been maintained at 0%.

SystemSpecial childcare leave/
Childcare leave• In case of taking a short-term childcare leave, it is possible to use the first month as a "paid special childcare leave".

Reduced working hours/
Limits on overtime work

• Employees who have reared a child in or younger than the third grade of elementary school can reduce work hours not

Exemption of overtimework• Employees who have reared a child in or younger than the third grade of elementary school can be exempt from overtime

Staggered work hours• Employees can ask to change the time that they start work (standard working hour starts at 9 am) to either 8 am or 10 am.

Job-return system
Celebration money on
auspicious occasions(marriage, childbirth)Childcare Center Subsidy
Systemthe intention of contributing

friendly work environment in which our employees can raise

to reducing the number ofchildren while working. To make this childcare nursery morechildren on nursery waiting

accessible, employees using this service are allowed to drive theirlists in the local community.

cars to work and park them in the Head Office Building’s parking
lot free of charge. In addition, this childcare nursery is not only
available for the employees but also for certain children* ofWEBwork, if they wish.

• An employee who retired due to marriage, childbirth, childrearing, and nursing care, etc. can return to work under thesame working conditions as at the time of retirement.
• A special payment for marriage of 100,000 yen is given to employees regardless of their service years.
• A special payment for childbirth is given to employees: 100,000 yen for the first child, 200,000 yen for the second child,and 1,000,000 yen for the third child and thereafter.
• Subsidize part of the childcare center fee until a child enters elementary school. A monthly payment is up to 30,000 yen

for one child. (This amount applies not only to the first child, but also the second child and thereafter.)• Subsidy for extended daycare nursery hours.
• Up to 5,000 yen is paid per day per child, for a maximum of 5 days per month, until the child reaches the end of the third

Company daycare nursery
inside the Hulic head officebuilding• Hulic has established nursery facilities at its Head Office for employees. Both monthly and temporary childcare services areyear of elementary school.
available at the facilities.
• Employees using these services may drive to work and park their cars at the Head Office Building.
• When an employee use services of a babysitting business operator which has a corporate contract with Hulic Group, theEstablishment of Hulic’s Onsite Childcare Nursery Facility
the Hulic Head Office Building to promote a more employee-

exceeding two hours per day in units of 30 minutes, if they wish.

Subsidy for costs associatedwith caring for a sick child

Babysitter Program

neighboring residents, with

• A male employee who took a childcare leave once within 8 weeks after childbirth is allowed to take the leave again within

the period when childcare leave is still available.

Support Raising Next-Generation Children Initiatives
In 2014, we opened the Odenma Fureai Childcare Nursery inside

Details• Possible to take leave until a child becomes 4 years old.

Subsidy for the cost of Kids’
Club

entire enrollment fee of 21,000 yen, the annual fee of 10,500 yen, as well as the monthly fee up to 15,000 yen per childare subsidized, in addition to the provision of discount tickets and coupons.
• Up to 50,000 yen is paid per month for a child until the end of his/her third year of elementary school.
• It is applicable during the period from when a female employee found out her pregnancy to when she takes maternity

Child care leave (Previous
nursing care leave wasincorporated in child careleave.)

leave in the case it is difficult to work due to pregnancy complications, etc.
• It is applicable when it is necessary for an employee (regardless of gender) to nurse a sick child younger than fourth graders

or to participate in the events of nursery school or elementary school.
• Child care leave is available for up to 10 days (in case of one child) or up to 15 days (in case of two children or more) a year

and can be taken in one-hour increments.
* Conditions for use applied toneighboring children differ fromthose applied to employees.

Odenma Fureai Childcare Nursery website (in Japanese only)
https://www.hulic.co.jp/sustainability/social/employee/nursery/

Environmental Initiatives

them to strike a work-life balance. We take measures to facilitate environment where

Social Initiatives

Fundamental
Approach

Details of Next Generation Nurturing Support Program

Work from home system• Possible to work from home for the purpose of childrearing or nursing care and this system can be used in full days or half days.

Leave for childbirth of spouse• Possible to take a day off in the case of childbirth of spouse (paid).

Next-Generation Support(Infertility Treatment)• 50% subsidy for out-of-pocket expenses for medical treatment (after insurance coverage).

Childcare mentor program

Diagram of Hulic's Next Generation Nurturing Support Program• 10-day special leave (paid) can be taken for treatment in addition to paid leave in one-hour increments.
• With this program, support from human resources and other mentoring staff is available (for all employees) following

Corporate GovernanceIn order for employees to be healthy and fully exercise their abilities, we encourage

Our Approach to Sustainability

Social Initiatives

pregnancy and childcare leave for one year after returning to work.

Platinum Kurumin Certification
Based on the Act on Advancement of Measures to Support

raising the next generation at a distinctive

Raising Next-Generation Children, we have received Platinum

level. We also received Kurumin

Kurumin certification in 2020 from the Minister of Health,certification for the third time (in 2010,

Labour and Welfare as a Company that supports employees in2017 and 2020).

Diverse Work Styles
We promote the development of an environment aimed at creating

systems that prevent long working hours by encouraging

diverse workstyles, including working from home, staggered office

employees to take paid leave and to accurately manage working

hours, and online conferencing systems, so that every employee

hours by logging the length of time they spend on computers.

can make the most of their abilities. We are also implementing

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Sustainability Data

External Evaluation

TOPICS79

Diverse Work Styles

Hulic Head Office Tour for Families● Work from home*● Staggered office hours

Every year since 2013, we have held the Hulic head office tour forfamily. In the tour conducted in 2022, employees served as a tour

● Online conferencing

our employees and their families. The purpose of the tour is to haveconductor to the onsite workplace, also explaining environmental* It was originally intended for employees providing childcare and nursing care, but we expanded eligibility in 2020 to help preventing the spread of COVID-19.

employees’ families understand the Company by providing themtechnologies installed in the Hulic Head Office Building. Afteran opportunity to visit the workplace. We also aim to promote

the tour, participants had be divided and had lunch at THE GATE

creating comfortable workplaces which values families by having

HOTEL TOKYO by HULIC and THE GATE HOTEL KAMINARIMON by

the entire company rediscover that each employee has a cherished

HULIC.

Work Style Reform● Improving the Efficiency of Business Processes and Internal

holidays once a year respectively.

Our Approach to Sustainability

Social Initiatives

Promotion
We check the usage status of paid leave and implementation

Employees (including managers) can start work one hour earlier

status of No Overtime Day as appropriate, in addition to createor later if they want to.

Environmental Initiatives● Introduction of staggered workdays

a holiday calendar for each employee, and hold discussions on
working style at each department. In addition to accurate time
management using computer logs, etc., we work to reduce long
working hours and promote the systematic use of paid leave bymonitoring working hours, etc. through the Risk Management
Committee and internal promotion according to guidance andTour at our Head Office

At our Head Office Reception

remained high.

Supporting Employees in Striking Balance between Nursing Care and Work● Implementation of No Overtime Day

Hulic helps prevent health problems due to overwork, including
by introducing “no overtime days” and encouraging employees
throughout the Company to go home early.
● Promoting the Use of “Plus-one” Paid Leave and Consecutive

Paid Leave
Promoting the use of paid leave before and/or after Saturdays,
Sundays, or holidays, and the use of 3 day holiday and one-week* Figures marked with “ † ” have been guaranteed by an independent assurance
provider for the values included in our Integrated Report.
* The usage rate of paid leave is calculated by dividing the number of days of paid leaveused in the year by the number of days of paid leave granted in the year. The numberof days carried over in the year are excluded.

Efforts to Support the Security of Employees and their Families
There is nothing better than for all employees to be healthy

through the systems shown below. We wish that such preparations

every day. However, If something unexpected happens to one offor this possibility will lead to the creation of a secure andour employees, we will support the employee and his/her family

comfortable company for employees.

SystemWe provide various types of support for our employees to allow

workers is easily available to employees managing both work andthem to manage both work and nursing care when a family

nursing care. Furthermore, we have established the Regulations formember of the employee is in need of care. The time required for

Supporting the Combination of Nursing Care and Work.

nursing care and the degree of seriousness vary depending on

As part of these initiatives, the nursing care paid leave wasindividual cases. Therefore, we believe that improving environmentchanged in 2021 to enable paid time off in one-hour incrementsof the whole workplace is indispensable. Based on this notion,from the beginning of work hour and throughout the day until thewe raise awareness in the workplace so that support from the co-end of work hour.

Summary of Program to Support Employees in Striking Balance between Nursing Care and Work

Details
External Evaluation• When an employee who died while in office or retired due to disability has children, and his/her unemployed spouseSupport for the
bereaved, etc.

who rears the children wants to work at Hulic Co., Ltd. or its group companies, the job opportunity is offered.
• When an employee who died while in office or retired due to a disability has children younger than 22 years old, ascholarship of 150,000 yen a month is paid per child. (According to the application for extension, it is possible to pay
for up to one year.)• When an employee dies or becomes disabled while in office, condolence money or a special solatium is paid to the

Condolencemoney

Social Initiatives

Participants exchange children’s name cards with
President Maeda

As a result of various initiatives, the usage rate of paid leave

Corporate Governanceadvice through the Health Committee.

bereaved family or the employee.
• In the case of a death, condolence money up to 10 million yen is paid.
• In the case of a disability, a special solatium equal to the amount of condolence money is paid. This payment is

Congratulatory
or condolence
payments
Special solatium
for injuries anddiseases

80

Sustainability Data

different from condolence money according to the contents of the "accident compensation rules".
• If, while in office, an employee or his/her spouse, child, or parents dies, 20,000 yen - 200,000 yen is paid.
• If, while in office, a house in which an employee lives is damaged by natural or accidental disasters, 100,000 yen - 1

million yen is paid to an employee who owns his/her house, and 50,000 yen - 500,000 yen to an employee who does
not have his/her own house, depending on the scale of damage.
• When an employee, while in office, is hospitalized for five consecutive days or longer due to disease and injury froma freak accident, special solatium for hospitalization is paid for up to 120 days.
• When an employee dies while in office, condolence money of 100,000 yen is paid to a recipient designated by the* A family member who is in need of care is defined as a spouse, father/mother, child, spouse’s father/mother, grandfather/grandmother, brother/sister, or grandchild who requires constantnursing care for over two weeks due to a reason such as injury, disease, or physical or mental disorder.

employee in advance.

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Health and Productivity Management
Conducting Health Checkups that Exceed Legal Requirements·W e implement an annual health checkup that is fully paid by the company and equivalent to a comprehensive medical examination, with awide lineup of optional examinations such as neck ultrasonography, colonoscopies, and gynecological checkups.
The time required for each health checkup is regarded as working hours.
·1 00% medical checkup rate is our target, which is continuously achieved. From 2018, new targets that 100% medical re-checkup rate andparticipation rate of specific health guidance were added.

《Results in FY2022》 ●Medical checkup rate on employees: 100％†

Message from management to recommend the participation of such checkup and follow-up by HR member in charge of health* Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

management were delivered.

Hulic is creating a workplace environment that enables all employees to stay healthy and make the most of their abilities,
and aims to achieve sustainable growth by encouraging each employee to deliver high quality and value with professional
competence.
Based on this philosophy, Hulic regards maintaining and promoting the health of employees as a management issue, andimplements health management to remain “a highly productive organization,” while furthering measures it has taken for
promoting employees’ health.

Takaya Maeda

President, Representative Director
Hulic Co., Ltd.

TOPICS
2023 Certified Health & Productivity Management Outstanding Organization (Small and Medium-sizedEnterprises Category)

Mental Healthcare

Non-smoking Initiative

We implement mental health care in cooperation with medical

For health promotion and stopping passive smoking of employees,

institutions. We help employees, who are diagnozed as requiring

we implement enlightenment activities including complete

special medical examinations and treatment, find specialists or

separation of smoking area from non-smoking rooms, delivering

specialized medical institution partners. In 2016, we started tomessage from health insurance association and post a notice about

perform stress check tests on all employees to prevent them fromno smoking. From 2019, we started to bear full cost of smoking

suffering from mental disorders.

cessation clinics for employees who try to quit smoking andPercentage of employees who took stress check tests
2018

2019

2020

2021

2022

95.7%

94.7%

94.7%

94.0%

95.3%

introducing the non-smoking hours in the office. Furthermore, in
2020, the range of no-smoking hour settings has been expanded.

Health Promotion Programand body composition monitors in common areas, and we areComplimentary breakfast, lunch and beverages(health-oriented diet)promoting employee health by providing partial subsidies for sports

In order to publicize the importance of regular dietary intake, we

To improve health awareness, we installed both blood pressure

clubs and company-approved club activities. In 2022, we supported

support healthy food habits at cafeteria (providing healthy lunch

Hulic was certified as a Health & Productivity Management Outstanding Organization in

the health and wellness of our employees by implementing the in-and calorie display of food & drink menu) .

2023 for the fifth consecutive year from 2019 in recognition of our health and productivity

house walking event and participating in the BOOST Running Festamanagement initiatives. The award has been promoted by the Ministry of Economy, Tradein the Japan National Stadium.

and Industry in conjunction with the Nippon Kenko Kaigi to advance health and productivity.

Health and Productivity Management Training
Hulic provides ongoing occupational safety and healthcare
promotion training to raise awareness of safety and health among
The followings are Hulic’s major measures for maintaining and promoting employees’ health.

all employees In 2022, we conducted in-house training (by video)
to improve health literacy.

・Attendance: Mandatory for managers or higher (however, allemployees can attend)
・Number of participants: 139 (the number of respondents toquestionnaires by managers or higher)

Health and Productivity Management Promotion System
Health and Productivity Management
Promotion System
・Health Committee
・Health and Productivity Management Follow-up Meeting

safety. Our industrial doctor attends all Committee meetings toprovide advice and guidance on healthcare. The Health Committee

Corporate Governance

Hulic Health Management Declaration

Social Initiatives

and provide health guidance for specific employees. In addition, consultation system about health issues is established.
·A s infection control measure, employees can take flu vaccination before epidemic, antibody test and vaccination of rubella.

Hulic formulated the Hulic Health Management Declaration described below to implement comprehensive health management.

Environmental Initiatives· In order to promote health management of employees, occupational health physician looks through the results of all employees, interview

Promoting Health and Productivity

Occupational Safety and Healthand The Health and Productivity Management Follow-up Meeting

In promoting the creation of comfortable workplaces, we give

occupational safety and health in the workplace.

members discuss the status of use of paid leave and overtime

first priority to the securing of safety and health and endeavor to

Further, no fatal accidents have occurred in the past four years

work of employees, and the matters discussed by the Committee

secure employees' health and safety by engaging in various efforts.

among contractors or at other companies involved in our real

While we have not obtained certifications such as OHSAS 18001,

estate development. No employees are engaged in work with a

improving internal systems and goal setting. Also, important

we secure occupational safety under our own system by regularlyhigh risk for illness and no legal proceedings have been broughtmanager and general manager of each department are designatedmatters reported to the Health Committee such as the status of

conducting risk assessment and improving issues.

against us in this regard.

as a leader in health promoted activity.

use of paid leave, overtime work of employee and status of taking

We will continuously promote the improvement of the level of

The Health Committee and The Health and Productivity

medical checkups are reported to the Risk Management Committee

Management Follow-up Meeting, which consist of the HR manager

which is headed by the president and the Risk Management

and the members elected from among employees every year, holdCommittee will discuss the matters.

Sustainability Data

are reported to the board members. The matters are utilized for
President is a chief executive in charge of health management, HR

External Evaluation

Fundamental
Approach

Based on the philosophy that employees’ good health is essential for improving the
productivity and growth of the company, Hulic is promoting the creation of employee-friendly
work environments in which employees can continue to work with enthusiasm and energy ingood health.

Our Approach to Sustainability

Social Initiatives

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83

Fundamental
Approach

We proactively take advantage of diversity in our business. We aim to foster aworkplace in which all employees can make the best use of their abilities.

 Ratio of female managers: 21.5%《Results in FY2022》●●Number of seminars provided by the Diversity Promotion Project Team: 1time●Employment ratio of persons with disabilities: 7.36 % (Hulic) 2.68 %† (Hulic and its Group companies)* Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

Hulic's basic approach is for the employees to be aligned with theirwork-life balance and career development. In addition, meetings

skill-sets, aptitudes, and personalities that enables individuals toare held once a year with the President, who is responsible for

perform at a maximum level and as a result of that the Company

the team, providing an opportunity for employees to directly

to operate a high value-added business with smaller workforce. To

communicate their thoughts and opinions.

achieve this, we believe that it is essential to raise awareness on

In 2022, the Diversity Promotion Project Team hosted a lecture

diversity & inclusion and enhance related frameworks. In 2010, we

meeting, apart from holding discussion meetings on work-lifeestablished the Diversity Promotion Project Team, which continues

balance and other topics.

to engage in regular activities based on such themes as improving

Diversity: Message from the President
Promoting Female Empowerment

Ever since being listed on the Tokyo Stock Exchange, Hulic has

We believe that it is essential for management to disseminate

consistently recorded all-time high profits.

information actively so that Hulic employees work together to

Hulic promotes diversity management because we believe diversity

Hulic has set target ratios of female managers with the aim of

Now that a decline in the working population is unavoidable, we

promote these initiatives. We communicate the importance ofis essential for providing opportunities regardless of gender, andbecoming a company in which women take on active roles. We

believe it is essential for diverse human assets to reach their full

diversity management through the dissemination of the Message

to this end, we are strengthening efforts to develop careers forprovide follow-up trainings to all employees to raise awarenesspotential in order for Hulic to continue plotting and achieving its

from the President once a month, the implementation of thewomen in particular. The Diversity Promotion Project Team hasof our approach. In FY2022, the ratio of female managers wasstory of steady growth into the future.

President’s Questionnaire Survey every six months, and periodic

been conducting activities regularly since 2010. In 2016, we

21.5%. Further, the percentage of female directors and Audit &To this end, based on a commitment to diversity and inclusion, ourdinner meetings with employees. We are raising internal awarenessreceived the highest certification as an “Eruboshi” company underSupervisory Board members was at a high level: 30% (as of April 1,

only job grades are career-track positions to enable our employees

in collaboration with the diversity promotion project team launched

the Act on Promotion of Women's Participation and Advancement2023).

to work without any gender distinctions, and our new graduate

in 2010 under the direct supervision of the President.

in the Workplace.

recruitment is now almost half male and half female. Nevertheless,Our employees will work together to achieve diversity andsometimes employees need to leave their jobs for a certain period

inclusion, without any complacency about efforts to date.

of time due to life events and sometimes they struggle to balance

Formulation of Action Plan Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace (3rd period)

work and home life when they return to their jobs. Hulic has

This Action Plan was formulated in order to enable female employees to strike a balance between their careers and child-raising, and to allow

focused efforts on improving the systems such as establishingthem to exert their capabilities and develop their careers in various divisions of the company.

Environmental Initiatives

Execution of Diversity Management

Social Initiatives

Embracing Diversity & Inclusion

Our Approach to Sustainability

Social Initiatives

We also make active efforts aimed at career development for
women and we have been enhancing the training and follow up
required to achieve the new target of increasing the ratio of female

Duration of the Plan

January 1, 2022 - December 31, 2024

Quantitative Goals

Target 1: To achieve a ratio of female managers of 25% or higher
Target 2: H ave 100% of eligible female employees take childcare leave*1
Have 100% of eligible male employees take childcare leave*2

managers to 25% by 2024 and 30% by 2029 every year.

● Foster awareness of career development and provide skills training.

We also put efforts into employment for persons with severe
disabilities, who have limited employment opportunities. We haveestablished the Hulic Suginami Office, a dedicated work space atHulic Ogikubo Building, where persons with disabilities carry out
operations as our employees.
With an emphasis on supporting independence, activities include

Initiatives● To encourage their use, the availability of work-life balance systems will be made more widely known among

employees.
● Measures will be promoted among managers for raising awareness of diversity management.

*1 Percentage of female employees who began their childcare leave compared with all female employees who gave birth within the year.
*2 Percentage of male employees who began their childcare leave before their child turned one year old compared with all male employees eligible within the year.

working steadily from 9:15 – 16:15, learning how to use PCs inwork breaks, and taking part in family tours at our head office. I
myself also visit Suginami Office each year to exchange opinionswith everyone in the office.

In FY2016, Hulic affirmed the Declaration on action by a group of male leaders who will create a Society in which
women shine and received the highest-level “Eruboshi” certification from the Minister of Health, Labour andWelfare as an excellent company taking initiatives to promote women’s participation and advancement in theworkplace.

External Evaluation

this struggle does not form a barrier.

Corporate Governance

nursery facilities located in our office and childcare leave so that

Participating in the joint declaration on the charter of corporate

employees hired in 2022 (the total number of new graduates andethics concerning employment issued by Keidanren (Japan Businessmid-career talent acquisitions) was 23 (males: 17; females: 6); theFederation), we proactively employ new graduates in accordance

proportion of women was 26.1%. The ratio of female managers

with the purpose of the charter. When performing pre-employment

has been on the rise—reaching 21.5% in 2022—as a result of hard

screening, we respect the basic human rights of applicants andwork to promote female employee empowerment in the workplacemake efforts to secure diverse human resources based on theirthrough further expanding system to support the development ofaptitudes and abilities, regardless of backgrounds such as race,

the next generation.

Sustainability Data

Employment of Diverse Human Resources

religion, or nationality, and regardless of gender. The number of84

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85

Social Initiatives

Social Contribution as a Company

Our Code of Conduct and Hulic Human Rights Policy stipulate

directly with the President, in an effort to establish good labor

respect for human rights in association with equal employment

management relations.

opportunities, freedom of association, and collective bargaining.

A range of opinions and requests were received from employees

we conduct interviews between employees and their supervisors

in response to the President’s questionnaire survey and we arewhen necessary and carry out the President Questionnaire Survey,

working on ways to provide a more comfortable workplace,through which employees can share their views and opinions

including installing a bicycle parking lot at the head office.

Fundamental
Approach

We value environmental aspects such as environmental consideration and social aspects such asbuilding good relationships with our stakeholders in addition to the economic aspects of earning
profits and growing as a company. We work to resolve social challenges and make contribution
to the sustainable development of society.

Policy for Social Contribution Activities
Basic Philosophy

Efforts Regarding Compensation

Activity Guidelines

Hulic actively and broadly engages in・ Actively engage in activities with particular emphasis on the three major fields of global

The Hulic Human Rights Policy prescribes that we pay wages

companies for the fiscal year ended April 2022 - March 2023 andvarious social contribution activities

environment protection, sharing value with local communities, and responses to social

over minimum wage prescribed in various applicable laws andthe same of JPY6,851,000* in the real estate industry for the same

including but not limited to our businessregulations as well as the Minimum Wage Act.

period. In this way, we provide employees with compensation thatfields as a good corporate citizen. Through・ Strongly support social contribution activities of employees.

The average annual salary in 2022 was JPY19,042,394 (including

exceeds their living wages, which is competitive when comparedthese activities we wish to contribute to・ Place an emphasis on securing transparency in implementing activities and facilitate

bonuses and nonstandard wages). This was significantly higher

with the domestic and industry labor markets.

the sustainable development of the entire

than the average annual salary of JPY6,204,000* at 3,235 listed* Source: TOKYO SHOKO RESEARCH, LTD.

society.

mainly for sending out direct mail, together with experienced

our businesses.
* Figures marked with “ † ” have been guaranteed by an independent assurance provider
for the values included in our Integrated Report.
* The Data covers Hulic Co., Ltd. and subsidiary companies that have been certified as
special subsidiary companies under the Act on Employment Promotion etc. of Persons
with Disabilities.

supervisors. As of June 2022, the employment

Support of the Japan Business Federation’s One Percent Club Initiative
The One Percent Club, as a sub-organization of KEIDANREN’s Committee on Responsible Business Conduct & SDGs Promotion, provides
information on social contribution activities to companies and coordinates networking with NPOs and other organizations with the aim

ratio of persons with disabilities was 2.68%† on

Social Initiatives

established the Hulic Suginami Office, a dedicated workplace,communications and cooperation with the society.

In line with this Basic Philosophy and Policy for Activities, we make social contributions that provide support in areas that are compatible with

Promoting Employment of Persons with Disabilities
Hulic employs some people with severe disabilities and has

needs.

Environmental Initiatives

Establishing Good Labor-Management Relations

Our Approach to Sustainability

Contribution to Local Communities and Societyof enabling more effective social responsibility activities.

a Group basis (7.36% on a non-consolidated

List of Major Social Contribution Activities

We have introduced a reemployment program for seniors in

We expect abundant knowledge and expertise that the senioraccordance with the Act on Stabilization of Employment of Elderly

rehires possess to be inherited through communication and● Afforestation Activities

Support of Culture and the Arts
● Sponsorship of the Hulic Cup Hakurei
Championships and Women's Rankdeciding Shogi Competition● Donated to Keidanren Nature Conservation● Supported Kishikai Shogi Festival (GreatFund● Donated to the General Incorporated

Association Yoyogi National Gymnasium
Steering Committee for World Heritage
Nomination

Persons. Under this program, we rehire any employee that has

interchange with younger employees. We also set up a special

reached the retirement age but who wishes to continue working

shortterm contract system in 2021 that extends the period of

until the age of 65. We offer staggered commuting and half-continuous employment until the age of 70 so that we haveSocial Welfare

day leave for rehired employees and have facilitated environment

motivated and capable employees between the ages of 65 and 70.

● Managing Hulic Scholarship Program forcomparable to active employees with leave and absence systems.

Training of Welfare Caretakers● Supported orphans of cancer andchildhood cancer patients and their families● Employee Match Gift Program

Job Return System
Hulic has instituted a job return system that allows employees● Supported Single-parent Households

to support a balance between work and childcare as advocated in

who left the Company due to marriage, giving birth, childcare,

the Act on Advancement of Measures to Support Raising the Next

caring for a family member, or other unavoidable reasons, toGeneration and to secure human resources that have wide-ranging

return to their same job within a five year period with the same

experience and a depth of professional knowledge.

compensation and benefits as before. The purpose of this system is

East Japan earthquake reconstruction
support event)● Special Sponsorship of the Hulic Cup Kisei

Championships● Supported Kishikai Christmas Festival● Special Sponsorship of Minister of

Education, Culture, Sports, Science andTechnology Cup Elementary and JuniorHigh School Shogi Team Competition● Relocation of Shogi Hall
● Supported New National Theatre Tokyo● Supported Naruto Sumo Stable Supporters’

Association● Donated to Japanese Red Cross Society● Donated Used Postal Stamps● Supported Japan Service Dog Association● Donated Emergency Food Stockpiles● Sponsorship of Kodomono Tame no charity

concert for children

Health, Medicine and Sports● Support for Japan Para-Badminton
Federation● Support for All Japan Private High School

Volleyball Federation● Support for the Japan Professional Tennis

Association

86

Hulic Co., Ltd. Sustainability Book 2023

Connection with the Local Communities● Opened Onsite Childcare Nursery Facilities toLocal Community Members● Hosting Summer Festivals/Donated a portableshrine● Donating Books to a Nearby Elementary School

Education and Social Education● Supported Scholarship Program of Kyoto
University● Supported AgriFuture Japan● Established Collaborative Social Courses with

the University of Tokyo● Supported agricultural engineers● Supported Nezu Foundation

External Evaluation

Employment System for Seniors

Global Environment Protection● Organized Wooden Architecture
Symposium

Academic and Research Support● Organized an Idea Competition for Students● Supporting Environmental Studies at Kyoto

University
Others● Sponsorship to Support Fukushima Relief
Efforts● Subsidized the Cost of employees’ Disaster

Recovery Activities● Donated to Ashinaga Scholarship

Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

The Hulic Suginami Office

Corporate Governancebasis).*

87

Contributions and Community Investments in Registered NPOs
Hulic makes contributions to authorized NPOs. In FY2022, we made the following contributions.

in nursing care for the elderly and thus contributing to resolution

3,000,000

Keidanren Nature Conservation Fund (a public trust)

1,000,000

Chance for Children, nonprofit incorporated association

2,000,000

labor shortage in nursing care.
We have doubled the number of scholarship students from 2020.

Hulic makes wooden constructions as a business. In addition, we

helping to reduce CO2 emissions and protect forests as part of ourheld the Wooden Architecture Symposium 2019 with the aim ofsocial contribution activities.

raising awareness on the possibilities of wooden buildings andFuture of cities made of wooden structures
Aiming to increase demands for timber in urban areas
Challenge of timber for medium- and high-rise buildings
Kengo Kuma (Architect・Professor at The University of Tokyo)

Panelists

Kengo Kuma (Architect・Professor at The University of Tokyo)
Shuzo Sumi (Senior Executive Advisor, Tokio Marine & Nichido
Fire Insurance Co., Ltd.)
Tadao Kamei (President and CEO, Nikken Sekkei Ltd.)
Masahiro Miyashita (Chairman of the Board, Takenaka
Corporation)
Atsuko Fukushima (Journalist)

Scholarship granting ceremony

Donation to the Tokyo branch of Japanese Red Cross Society

Organized Wooden Architecture Symposium 2019

Keynote speech

Practical training

We make donations to the Japanese Red Cross Society, an

to donations from the Company, those employees and executive

organization that responds to disasters through a wide range of

officers electing to participate also donate a fixed amount every

activities in Japan. In 2023, JPY6 million was donated. In addition

month.

Environmental Initiatives

Japan Service Dog Association, a social welfare organization

nonrepayable (free) scholarship that aims for an improvement ofDonation of Used Postal Stamps for Support Activities in Developing Countries
The Hulic Group generates a large number of used postage stamps

women and women in general. The money exchanged from theand has set up stamp collection boxes at Group company locations.

stamps is used to support vaccines for children in supporting

We donate these stamps every year. In 2023, we donatedcountries, mainly in Southeast Asia.

approximately 2 kirograms of used stamps that we collected during
the year to the Japan Committee, Vaccines for theSocial Initiatives

6,000,000

World's Children, a certified NPO. Every year, wecollect a large volume of used stamps, and we sortthem with the cooperation of our sustainability
supporters. It takes almost two hours. After

Corporate Governance

The Japanese Red Cross Society (a specified juridical person)of social issues related to the advancing aging society. This is aconverting the stamps into money, JOICFP applies
it to activities that they promote in developing
Note: Occupation, affiliation, title, etc., when symposium was held.

countries to protect the life and health of pregnant
Sorting of used stamps by the sustainability supporters

Afforestation Activities
Hulic outsources logging, planting, and weeding activities to

we will continue cutting undergrowth so that the planted cedar

forestry cooperatives in an effort to plant the same amount of trees

saplings will grow healthy.

Support for Japan Service Dog Association
Since 2022, Hulic has been supporting a social welfare organization,

guide dogs and hearing dogs. A major issue, however, is that there

as the standing trees used as building materials for construction.

the Japan Service Dog Association, to increase support for people

are very few working service dogs in Japan, while awareness ofApproximately 310 m3 of lumber is used in the construction ofwith disabilities, one of the focuses of our social contribution

their existence is extremely low, even among disabled people. Also,a fireproof wooden construction (hybrid structure combining

activities. One aim of the Japan Service Dog Association is to help

it is both expensive and time consuming to train a disabled people

wooden and steel frame construction) commercial facility (HULIC

build a society that is kind and enjoyable for both people andtogether with

&New GINZA 8) which completed in October 2021. In May 2021

animals. Based on this philosophy, the organization (1) raises top-

a service dog,

approximately 12,000 cedar saplings were planted (new plantings)

quality service dogs; (2) develops trainers; (3) collaborates with local

which is why Hulic

across an area of about 4.3 hectares. Over the next five years,

rehabilitation centers and organizations for disabled people, andhopes to makeprovides consultations and information on using service dogs; anda difference by(4) raises awareness of service dogs to encourage independence

lending support.

Donated to the Keidanren Nature Conservation Fund
Hulic values activities that seek to conserve nature and biodiversity.

preserving Japan’s natural environment and projects related to

We have been donating to the Keidanren Nature Conservation

sustainability.

and social participation of disabled people. A service dog is a typeof assistance dog (specifically for the physically disabled) just like

Sustainability Data

Cedar sapling newly planted and a mountain where they were planted (Fukushima Prefecture)

External Evaluation

10,000,000

Coordinator

We established the Hulic Scholarship Program for Training of
to be welfare caretakers, and develop human resources engaging

Amount (JPY)

Single Mothers Forum (SMF, an approved specified NPO)

Theme

Managing Hulic Scholarship Program for Training of Welfare Caretakers
Welfare Caretakers in 2017 in order to support students aiming

Result of Social Donation Activities in FY2022
Organization name

Our Approach to Sustainability

Social Initiatives

Fund every year since 2012. The funds we donate are used for
projects by private non-profit organizations, including someoverseas. These projects work to conserve the natural environment
in developing regions, mainly in the Asia-Pacific area, as well as

88

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

89Special Sponsorship of the Hulic Cup Kisei Championships

In the course of inspecting and replacing the emergency foodSince April 2018, Hulic has been a special sponsor of the Kisei

his title yet again

stockpile at our headquarters building, we donated foodChampionships (organized by the Japan Shogi Association andto win his fourth

approaching its expiration date, previously disposed of as waste,

Sankei Shimbun Co., Ltd.) The Kisei Championship is an official

consecutive title.

to Second Harvest Japan, an authorized nonprofit organization.

championship with a history, established in 1962. Players compete

We will continue to donate our emergency food stockpiles in thefor the title of “Kisei.”future.

In the 94th Hulic Cup Kisei Championship, Mr. Sota Fujii defended

Emergency food stockpile at Hulic headquarters building

The 94th Hulic Cup Kisei championshipSupport for Orphans of Cancer and Childhood Cancer Patients and Their Families
Hulic Insurance Service is a member of the Aflac National

Aflac Parents Houses initiatives promoted by the association. In

Association of Agencies, which is a network of medical and life

addition, we have donated to the Gold Ribbon Network, an NPO

insurance agencies. We donate to the Aflac Scholarship Fund forthat supports children with cancer.

Childhood Cancer Survivors and Children of Cancer Victims andSpecial Sponsorship of Minister of Education, Culture, Sports, Science and Technology Cup
Elementary and Junior High School Shogi Team Competition
Since 2017, Hulic has been a special sponsor of the Minister of
Education, Culture, Sports, Science and Technology Cup Elementary

Environmental Initiatives

Donation of Emergency Food Stockpiles

Our Approach to Sustainability

Social Initiatives

and Junior High School Shogi Team Competition (organized byGold Ribbon Network
Gold Ribbon Network is a non-profit organization dedicated to three key areas: supporting children with cancer to raise their qualityof life; supporting research and development to increase the survival rate of children with cancer; and providing information andpromoting understanding of childhood cancer.

competition is for teams of three students belonging to the sameelementary or junior high school, and the trophy and letter ofSocial Initiatives

Aflac Parents Houses
These general support centers help reduce the economic and emotional burden of pediatric patients and their families as they take onchildhood cancer and other serious diseases with long-term hospitalization or outpatient care at specialist hospitals in urban areas.

the Japan Shogi Association and Sankei Shimbun Co., Ltd.). This

commendation presented to the winning team by the Ministerof Education, Culture, Sports, Science and Technology give thecompetition significant prestige.

Support for Kishikai Shogi Festival (Great East Japan Earthquake Reconstruction Support Event)
We sponsor the Kishikai Shogi Festival as part of our support forIn 2022, we sponsored the Kishikai Shogi Festival in Fukushima. (Thereconstruction efforts related to the Great East Japan Earthquake

event was canceled in 2020,2021 due to the COVID-19 pandemic.)and Shogi culture.

Support for Single-parent Households
Support for Kishikai Christmas Festival

To support single-parent households, we have been making

or no income due

donations since 2020 to the Single Mothers Forum, an approved

to the COVID-19

We sponsor the Kishikai Christmas Festival to spread the popularity

specified nonprofit organization. In 2023, we donated JPY10

pandemic.

of Shogi and contribute to the growth of Japanese culture. In

Corporate GovernanceAflac Scholarship Fund for Childhood Cancer Survivors and Children of Cancer Victims
This scholarship program is for high school students whose opportunities for pursuing a higher education have narrowed due to losing
their household’s main provider to cancer. Up to now, more than 3,400 students have received scholarships, and the total amountawarded exceeds JPY2.1 billion (as of June 30, 2023).

2019, it was held at our Asakusabashi Hulic Hall, and over 200

million in food support to single-parent households left with little

people participated. (The event was canceled in 2021 and 2022

Sponsorship of the Hulic Cup Hakurei Championships and Women's Rank-deciding Shogi Competition

External Evaluation

due to the COVID-19 pandemic.)2019 Christmas Festival

In 2020, Hulic together with the Japan Shogi Association

ceremony to award

established a new rank-deciding Shogi competition for women,

her with the Hakurei

the Hulic Cup Hakurei Championships, with the aim of expanding

title took place at

In 2021, we concluded a basic agreement with the Japan Shogi

Association. We will continue to collaborate closely with the Japan

opportunities for female professional Shogi players. Beyond

the Grand Nikko

Association to relocate the Tokyo Shogi Hall to the first floor of

Shogi Association and Shibuya Ward to contribute to the urban

supporting the arts and culture, we decided to support professional

Tokyo Daiba in

Hulic’s Sendagaya Center Building, as part of the reconstruction

development of Shibuya's Sendagaya district, known as Shogi

female Shogi players from the perspective of empowering women.

December 2022.

project. We are developing, aiming for completion in 2024,

Town.

In the second Hulic Cup Hakurei Championships, the title was

Sustainability Data

Relocation of Tokyo Shogi Hall

preparations for the 100th anniversary of the Japan Shogi

contested in a seven-match series between Ms. Tomoka Nishiyama,
who won the first Hakurei Championships, and Ms. Kana Satomi,
who won the preliminary ranking tournament. Ms. Satomi was
victorious, becoming the second Hakurei titleholder. The prize

90

Hulic Co., Ltd. Sustainability Book 2023

A ceremony honoring Ms. Kana Satomi with thesecond Hakurei title In the second Hulic Cup Hakurei
Championships

Hulic Co., Ltd. Sustainability Book 2023

91

We have concluded an Official Gold Partner Agreement with theAdditionally, we have been supporting the world

In April 2023, Hulic, together with the University of Tokyo,

in the Metaverse space and experienced the sensation of stone by

Japan Para-Badminton Federation and have provided support for

championships andinitiated a course for creating an inclusive nature experience

using a body-sharing device.

para-badminton since 2016. For the purpose of supporting the stableinternational games whenlearning system. By harnessing information and communication

operations of the federation, since 2017, we have lent the gym of

they are held in Japan. This

technologies, this course aims to enable children to experience

Nishi Kasai Center Building owned by Hulic (Hulic Nishikasai Gym) toyear, we are sponsoring

and learn nature with a sense of independence, even remotely,

the federation at no charge as a practice gym dedicated for players

the HULIC DAIHATSU BWF

regardless of their environmental or personal circumstances. In

from the Japan Para-Badminton Federation. In 2022, we were thePara-Badminton World

August 2023, a nature-based learning session was held in Myoko

special sponsors for the BWF Para-Badminton World Championships,

Championships 2022.

Kogen, Niigata Prefecture. Online participants watched the activity

held in Japan for the first time.

A body-sharing device

Hulic has set up a daycare center inside the headquarters, making

see the following linked page.

some space available to local children to help reduce the numberWEBof children waiting to get into daycare centers. For details, please

Establishment of Hulic’s Onsite Childcare Nursery Facility
https://www.hulic.co.jp/en/sustainability/social/employee/balance.
html#anc2

Hosting Summer Festivals and Donating of a Portable Shrine

Holding the 10th Hulic Student Idea Competition on the Theme of Unknown Ginza
We planned this competition as a real estate company with theaim of providing students with opportunities to propose urban
development and construction ideas. We received 106 entries forthe 10th Hulic Student Idea Competition in 2022. At the second
public review, students enthusiastically presented their ideas,
followed by a question and answer session with judges. After

In October 2012, the head office of Hulic was moved toof our community contribution activities, we donated a portableconsultations among the judges, one winner of the grand prize,

Nihonbashi, Odenma-cho. As part of our efforts to introduce

shrine, etc. to the Odenma-cho Ninobu Neighborhood Association

three winners of the excellence award, and six winners of theourselves to the community, we held the Hulic Odenma Summer

to which we belong in 2017. We hope that carrying this portable

honorable mention award were selected.

Festival at our head office building in July 2013. The event was

shrine at the festival will lead to further revitalization and prosperity

very well-received, so we have continued to hold it every summer

in the area.

since then. The Odenma-cho Ninobu Neighborhood Association

Social Initiatives

Making the Company's Nursery Facilities Available to Local Community

Collecting insects

A poster of the event, calling for entries

Supporting Environmental Studies at Kyoto University

is cooperating with us on the day of the event, and many people

Hulic supports studies that have an environmental theme.

Furthermore, we are promoting discussions on more ways to use

come, from children living in the area to office workers fromCurrently, we are supporting research at Kyoto University related towood through opinion exchanges between the laboratory and ournearby buildings. We hope that activities such as this will lead tothe use of wood in construction. This research is closely related todepartment in charge of environmental technology.

deeper bonds between local residents. The proceeds from theour efforts to build fireproof and other wooden structures.

festival has been added to the matching gift program, and the giftmoney has been provided to authorized NPOs. Moreover, as partSponsorship to Support Fukushima Relief Efforts
We have been supporting the Ganbappe, Fukushima! event held at

We are active in contributing to the local community. Whileissues to encourage

efforts in Fukushima, which was struck by the Great East Japanconsidering more ways to further deepen our connection with thechildren to give attention

Earthquake. On the day of the event, people from supporting

local community, we learned that classroom libraries were worn

and thoughts to building

companies support Fukushima's reconstruction.

out at Nihonbashi Elementary School, which is near our head

がんばっぺ福島！
応援の集い vol.6

Belle Salle Tokyo Nihonbashi as an activity to support reconstruction

東日本大震災から来春で丸１２年を迎えます。

協賛企業団体のCSRコーナー、福島物産
即売コーナーもお楽しみに

復興はいまだ道半ばですが、加えて、
東京電力福島第一原子力発電所のALPS処理水の海洋放出を控え、さらなる風評被害が懸念されます。
コロナ禍を乗り越え、「福島酒援・食援」の心、
福島愛をみなさんと共有し、さらに高めることが必要な時期を迎えています。

３４

2023年

月

External Evaluation

Donating Books to a Nearby Elementary School

日（土）

午後４時開演（午後３時開場、午後７時終了予定）

a sustainable society.

ベルサール東京日本橋（東京都中央区日本橋２-７-1 東京日本橋タワー）

全席指定／着席スタイル

料金 5,000円

office building, and in need of replacement. As such, we donated

デーモン閣下寺田恵子

サンプラザ中野くん・パッパラー河合

牛来美佳

消費税込み、福島県産食材中心のお料理、福島の地酒飲み放題

第１部 「福島の未来は私たちが支えます」
高校生対象のプレゼンテーション講座「ふくしまナラティブ・スコラ」の修了生が、福島の未来について語ります。

approximately 1,000 new books. We asked the school to choose

第２部

books that include content related to SDGs and environmental

Environmental Initiatives

Established Collaborative Social Courses with the University of Tokyo

Book donation ceremony

Corporate GovernanceSupport for Japan Para-Badminton Federation

Our Approach to Sustainability

Social Initiatives

応援の集い

ご らい みか①浪江町出身のシンガーソングライター・牛来美佳②スパリゾートハワイアンズダンシングチーム③ふくしまスペシャルバンド
（ゲストボーカル）
デーモン閣下 寺田恵子
サンプラザ中野くん・パッパラー河合

お問い合せは無洲まで ☎ 03-5157- 0100

スパリゾートハワイアンズダンシングチーム

主催：無洲、がんばっぺ企画、日本橋ふくしま館MIDETTE

The Ganbappe, Fukushima! event

Support for Scholarship Program of Kyoto University
the next generation.

Support for AgriFuture Japan

92

Donation to Ashinaga Scholarship Society
The Hulic Group made a monthly donation of 500,000 yen to thechildren left as orphans following the Great East Japan Earthquake.

Ashinaga Scholarship Society from June 2011 to May 2019, andSince the outset, approximately JPY65,000,000 in total has beena certain amount of money has also been donated every month

donated by the Company and individuals as of May 2019. In orderto this Scholarship Society from the Company's directors andto provide wider support for domestic disaster, we changed the

Hulic views the promotion of sustainable agriculture as one of

we have been supporting AgriFuture Japan, an organization that

employees who wish to participate in this initiative in an effort

donation destination from the Ashinaga Scholarship Society to the

our most important sustainable management issues, so we arehelps develop the next generation of farmers, as part of our social

to provide continuous support for the living and schooling of theTokyo branch of Japanese Red Cross Society in August 2019.

promoting an agri-business project. In this project, since 2014

contribution.

children who will forge the future of this country by supporting

Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

We provide grant scholarships to Kyoto University students through the Kyoto University Fund with the aim of supporting the education of93

Social Initiatives

in volunteer activities, in order to support and nurture their efforts
to give back to the community and help to foster an attitude ofwanting to address issues facing society. The volunteer paid leave

Social contribution by employees

program is designed to support employees who participate insocial contribution activities. Employees are eligible to take up to● Matching gift program● Support activities in disaster-struck areas

20 consecutive days of special paid leave (employees who take part

● Satoyama conservation activities● Monthly community cleanup activities

in volunteer activities in disaster-hit areas can take paid leave more● Donation to the Tokyo branch of Japanese Red Cross Society

than once within 20 days) under the volunteer paid leave program
to take part in philanthropic activities that give back to society. To

Summary of Satoyama Conservation Activities

encourage employees to use the volunteer paid leave program,but also raise awareness about such activities among employees

Launching the match gift program in June 2008, we establishedneeds. These are the main fields under Hulic’s policy for social

by disseminating the volunteer experiences of employees with

the Hulic Fureai Fund, which deducts 100 yen every month fromcontribution. The Company matches donations with an equal

the entire Company through our intranet system. In 2023 wethe salary of employees who want to take part in the program (300

amount. At present, nine Hulic Group companies are working

continued satoyama conservation activities, which we have

yen for executive officers). The money collected is then donated

together on this activity. We will continue the donation activities,

conducted annually since 2009 as a participatory volunteer activity

to organizations selected by majority vote of all employees thatproviding opportunities of social contribution to employees who

involving our employees, and a total of 30 employees and their

are involved in activities related to local environment protection,cannot make the first step despite being interested in it.

family members from Hulic, Hulic Insurance Service, Hulic Building

coexistence with local communities, and responses to social

As Hulic holds many properties in Tokyo, we came up with
the idea to protect the precious natural environment leftin Tokyo and participated in the Satoyama Conservation
Activities.

Summary

The company participates in the Tokyo Greenship Action
hosted by the Bureau of Environment, Tokyo Metropolitan
Government, every year, and engages in various
volunteering activities in Yokosawairi in Akiruno City suchas the rice planting experience and nature observation
activities to deepen understanding of satoyama
conservation activities under the supervision of the NPO
called “Yokozawairi tanbo no kai.”Management, Hulic Reit Management and Hulic Proserve haveparticipated in this activity.

The 14th Donations to the Chance for Children, nonprofit incorporated association

The event was canceled in 2020,2021 due to the COVID-19

In 2022, JPY2 million was donated to Chance for Children,intergenerational

pandemic.

nonprofit incorporated association in Japan. Chance for Children

chain of poverty.
WEB

is engaged in support activities for children and their families withthe aim of eliminating educational disparities among children
due to economic disparities within families and breaking the

Number ofparticipants

May 31, 2023
30

Satoyama Conservation Activities by its Employees
https://www.hulic.co.jp/en/sustainability/ecology/management/
education.html

we will continue to promote to all employees through our intranet

60,000 yen of the cost of employees’ volunteer activities to support

information on volunteer activities. This information includes

reconstruction in disaster-stricken areas following the Great East

the results of volunteer activities as well as the thoughts of theJapan Earthquake. One person was subsidized in FY2019, while

participants, the situation on the ground, and information on

25 have received assistance since 2011. We hope that this systemreconstruction support tours.

Year

1st

2009

WWF Japan

800,000

will be a catalyst for greater understanding of conditions in the(These have not been used in 2021 and 2022 reflecting the spread

2nd

2010

Aladdin Caregiver Support Network Center

620,000

disaster zone and will increase interest in the area. Going forward,of COVID-19.)

3rd

2011

Doctors of the World Japan (MEDECINS DU MONDE JAPON)

620,000

4th

2012

Nonprofit Organization Kokkyo naki Kodomotachi (KnK)

800,000

5th

2013

Florence

1,000,000

We participate in the Machikado (street corner)

6th

2014

Kid's Door

1,200,000

Clean Day project run by Chuo Ward, where

7th

2015

Civic Force

1,300,000

8th

2016

NPO After School

1,200,000

9th

2017

NPO Second Harvest Japan

1,300,000

Through these activities, we are also promoting

10th

2018

OISCA, nonprofit incorporated association

1,400,000

communication between local people and

11th

2019

NPO Japan Committee, Vaccines for the World’s Children

1,500,000

12th

2020

Musubie (an NPO who supports providing meals to children)

1,400,000

13rd

2021

NPO Kiko Network

1,800,000

External Evaluation

Time

Hulic Co., Ltd. Sustainability Book 2023

Amount (JPY)The Hulic Group has established a framework for subsidizing up to

Community Cleanup Activities/Flowerbed Maintenance Activities

our headquarters is located. Once a month, weclean up around our head office with the aim ofcreating a clean and comfortable environment.
Sustainability Data

Name of Organization

Date

Stipend Program for Disaster Recovery Volunteers

Past Donations

94

Objective

we provide not only information on social contribution activities,

Matching Gift Program

Environmental Initiatives

The Hulic Group has established paid leave for employees involved

Social Initiatives

Paid Leave for Employees Involved in Volunteer Activities

Corporate GovernanceFundamental
Approach

We work to resolve social challenges and make contribution to the sustainable developmentof society. Further, we strongly support each employee to participate in social contribution
activities.

Our Approach to Sustainability

Supporting Employees to Participate in Social Contribution Activities

employees.

Hulic Co., Ltd. Sustainability Book 2023

95

General Meeting of Shareholders
Appointment

Deliberation/
Decision

Deliberation/
ReportAudit

Board of Directors
Chairperson: Chairperson of the Boardof Directors(non-executive director)

Audit &
Supervisory Board
Coordination &Audit & Supervisory Collaboration

Accounting audit

President and Representative Director

Hulic Group recognizes that it is an important business issue to build a corporate governancesystem with fully functioning internal control, risk management, compliance, and disclosure
control.
We intend to sincerely execute business, fulfilling accountability to stakeholders.

Internal control functions of head
office and affiliated companies

system. We disclose all information required by the Corporate

WEB

Corporate Governance Guidelines
https://www.hulic.co.jp/en/sustainability/governance/governance/pdf/cgg.pdf

96

that adopting the managing officer system, appointing external
officers, and establishing various committees have enabled us

Nominating Committee, Remuneration Committee, Accounting

to build a corporate governance system that is sound and highly

Auditor, and the internal control system. The Company believes

efficient, as well as one that has an optimal structure for us.

Hulic Co., Ltd. Sustainability Book 2023

Risk Management Committee
Fund ALM Committee
Operations management
Business management
Internal controls over financial reporting
Disclosure Working Group

Board of Directors

The Board of Directors resolves issues specified in laws and the Articles of Incorporation as well as importantmatters related to business execution based on the Board of Directors Rules. The Board also oversees the overall
execution of duties by directors and managing officers. In 2023, the number of external directors increased by
two; the Board now has five executive directors and seven non-executive directors. In addition, a non-executive
director serves as the chairperson of the Board of Directors (as of March 23, 2023).
The Board holds regular meetings (once a month, in principle), and special meetings of the Board of Directors areheld when necessary. The Company is strengthening the oversight role of the Board on overall business execution
by directors and managing officers to ensure sound management, such as by adopting the managing officer
system. The managing officers are appointed by the Board and are responsible for business execution. In addition,
the Company believes effective corporate governance is ensured by reinforcing the structure of the internal audit
function and by improving the internal control system. The Company’s Articles of Incorporation stipulate that theBoard should consist of no more than 12 members in order to facilitate its functioning.

Audit &
Supervisory
Board

Hulic is a company with an Audit & Supervisory Board, which includes five Audit & Supervisory Board members(two are full-time auditors and three are External Auditors, following the Companies Act and Ordinance for
Enforcement of the Companies Act).
In audit conducted by the Audit & Supervisory Board members, auditors monitor the operations of the internal
control system and the status of its implementation through audit of the execution of duties by directors,
managing officers and each division in accordance with the audit basic policy and the audit basic plan formulatedby the Audit & Supervisory Board. These audits include attending the Board of Directors meetings as well asother meetings and committees when required, interviews on the execution of duties by directors and managing
officers, and reviewing important documents, approval documents and accounting records, etc. The Audit &Supervisory Board Office has been established to support the duties of the Auditor & Supervisory Board members.

Nominating
Committee

The Nominating Committee, consists solely of independent external directors, deliberates on the appointment ofcandidates for director and the Audit & Supervisory Board membership.

Remuneration
Committee

Specific amounts for the remuneration of directors are deliberated on and determined by the Remuneration
Committee, which consists solely of independent external directors, within the limits of the amounts approved at
the General Meeting of Shareholders.

Accounting
Auditor

The Company has an audit contract with Ernst & Young ShinNihon LLC to conduct audits.

Overview of Corporate Governance System and Reason for Adopting Current Systembodies such as the Board of Directors, Audit & Supervisory Board,Internal Controls

Compliance Committee

The Company Organization

Corporate Governance Mechanism
The corporate governance structure of the Company includes

Risk Management

Disclosure Control

Governance Code.

promote the effective functioning of our corporate governanceCompliance

Social Initiatives

Real Estate
Planning and
AffiliatedBusiness Division Administration Division Companies

Corporate Governance Guidelines
We adopted "Corporate Governance Guidelines" as principles toInternal audit

Sustainability Committee Participation rate in the Board of Directors' Meeting: 99%《Results in FY2022》●●Number of effectiveness assessment of the Board of Directors: 1 time
●Number of compliance training sessions: 5 times (4 times for employees and once for officers)●Number of Risk Management Committee meetings: 4 times●Number of Fund and ALM Committee meetings: 17 times (12 regular meetings and 5 special meetings)●Number of BCP drills: 3 times●Number of inspections of stockpiled food: 4 times●Number of inspections of stockpiled goods: 1 time

Coordination &Collaboration

Board Office

ReportCorporate GovernanceFundamental
ApproachCorporate Audit
Department

Accounting Auditor

Environmental Initiatives

Nominating
Committee

Appointment
Coordination & Collaboration

Hulic Co., Ltd. Sustainability Book 2023

Corporate Governance

Remuneration
Committee

Appointment

External Evaluation

Hulic works to strengthen corporate governance with the aimof improving the transparency and efficiency of management
and continue to be trusted by society.

Our Approach to Sustainability

Diagram of Hulic’s Corporate Governance (as of March 23, 2023)

Sustainability Data

Corporate GovernanceInitiatives

97Committees

The Company's Board of Directors, Audit & Supervisory Board, Nominating Committee and Remuneration Committee include the following

We established four committees to ensure cross-departmental deliberation and coordination on company-wide matters.

members:
As of April 1, 2023, the Board of Directors and Audit & Supervisory Board included 12 male and 5 female members.(The percentage ofCommittee Name
Compliance Committee

Purpose, Matters Deliberated and Coordinated・Formulation and revision of compliance program.
・Matters related to information security management.

female officers was 30%.)
Name

Board ofDirectors

Audit &
Supervisory
Board

Nominating
Committee

Remuneration
Committee

Saburo Nishiura

〇

―

―

―

President, Representative Director

Takaya Maeda

〇

―

―

―

Vice President, Representative Director

Hidehiro Shiga

〇

―

―

―

Vice President, Director

Hajime Kobayashi

〇

―

―

―

Director, Senior Executive Managing Officer

Tadashi Nakajima

〇

―

―

―

Chairperson (non-execution) of the board
meetings, Director

Manabu Yoshidome

◎

―

―

―

Nominating Committee and Remuneration Committee

External Director

Tsukasa Miyajima

〇

―

◎

〇

We have established “discretionary committees” following the

1, 2015. All members of each committee are independent external

External Director

Hideo Yamada

〇

―

〇

◎

directors from 2019.

External Director

Atsuko Fukushima

〇

―

〇

〇

External Director

Shinji Tsuji

〇

―

〇

〇

Kiyomi Akita

〇

―

―

―

Risk Management Committee

・Timely manage and respond to overall risk in accordance with the Basic Rules of Risk Management.
・Respond to facts occurred.

Fund ALM Committee

・The basic matters related to ALM.
・Procurement and investment of funds.
・Sale, purchase and investment of securities.
・Matters pertaining to the market risk management and liquidity risk, etc.

Sustainability Committee

・Initiatives on sustainability and implementation of related activities.
・Formulation and revision of materiality and related KPIs.

enactment of the Corporate Governance Code, effected on June

Title
Chairman, Representative Director

Nominating Committee

Remuneration Committee

External Director

The Nominating Committee serves the function of reporting to

The Remuneration Committee is appointed by the Board, andExternal Director

the Board on the nomination of officers, and deliberates on the

deliberates and makes decisions on the matters outlined below.

Full-Time Audit & Supervisory Board Member

following matters:

1.Remuneration standards and other matters pertaining to the

Full-Time Audit & Supervisory Board Member

1.Selection of director and auditor candidates, changes to directors(promotion, etc.) and dismissals of directors
2.Other items concerning succession plans and matters concerning
the abovementioned items, as deemed necessary by the Board

remuneration of directors
2.Matters concerning the remuneration of directors, as deemednecessary by the Board
The committee consists of 4 members that are all independent

The committee consists of 4 members that are all independent

external directors. In principle, the committee is held at a request

external directors. In principle, the committee is held at a requestof chairperson of the committee twice a year. In addition, otherof chairperson of the committee at least once a year. In addition,committee members can convene the committee if deemedother committee members can convene the committee if deemednecessary.

The Board of Directors implements an annual self-assessment torevisions to Board management based on these evaluations.

continuously ensure its effectiveness, implementing pertinent

Assessment Details
The result of FY2022 assessment was concluded that corporate
governance was functioning effectively as the analysis andassessment showed that 1) External Directors with diverse expertisecomprise 40% of the total, 2) The Board is fostering a culture inwhich directors can express their opinions, and 3) appropriate risktaking and risk management in being carried out.
However, the following points were confirmed as ongoingchallenges for the Board to work on.
• Ensure that the meetings are proceeded more efficiently by

98

requesting materials that articulate discussion points, andpractice more extensive deliberation and discussion for importantresolutions including medium- and long-term management policy.
• Indicate a wide range of risks involved in business and further
enhance the appropriate level of risk evaluation.
• Deepen discussion on ESG-related topics referencing objective
indicators with a view to the private sector's role in relation toachieving the SDGs.
• Consider the composition of the Board of Directors from theperspective of diversity on an ongoing basis.

Feedback from directors include, “My impression is that thegeneral are all very well balanced,” and “The number of female

explanations of the agenda, the key points, and meetings indirectors and auditors has been further improved.”

Hulic Co., Ltd. Sustainability Book 2023

〇

―

―

―

―

◎

―

―

Mie Tanaka

―

〇

―

―

External Auditor

Nobuyuki Kobayashi

―

〇

―

―

Auditor*External
The chairpersons
are indicated with ◎.

Kenichi Sekiguchi

―

〇

―

―

Noriko Koike

―

〇

―

―

External Auditor

Attendance rate at Board of Directors’ meetings, Audit & Supervisory Board meetings, and discretionary
committee meetings in FY2022
Title

necessary.

Assessment of the Effectiveness of the Board of Directors

Yuko Takahashi
Masahiro Okamoto

Name

Board ofDirectors

Audit &
Supervisory
Board

Nominating
Committee

Remuneration
Committee

Chairman, Representative Director

Saburo Nishiura

100%

―

―

―

President, Representative Director

Takaya Maeda

100%

―

―

―

Vice President, Representative Director

Hidehiro Shiga

100%

―

―

―

Vice President,Director

Hajime Kobayashi

100%

―

―

―

Director, Senior Executive Managing Officer

Tadashi Nakajima

100%

―

―

―

Chairperson of the Board of Directors,
Director (non-executive)

ManabuYoshidome

100%

―

―

―

External Director

Tsukasa Miyajima

100%

―

100%

100%

External Director

Hideo Yamada

100%

―

100%

100%

External Director

Atsuko Fukushima

100%

―

100%

100%

External Director

Shinji Tsuji

100%

―

100%

100%

External Director

Kaoru Takahashi

100%

―

―

―

Full-Time Audit & Supervisory Board Member

Shigeo Nakane

100%

100%

―

―

Full-Time Audit & Supervisory Board Member

Masahiro Okamoto

100%

100%

―

―

External Auditor

Koichi Nezu

94%

86%

―

―

External Auditor

Nobuyuki Kobayashi

100%

100%

―

―

External Auditor

Kenichi Sekiguchi

100%

100%

―

―

Environmental Initiatives

Attendance Rate at Board of Directors’ Meetings, Audit & Supervisory Board Meetings, andDiscretionary Committee Meetings

Social Initiatives

ensure soundness and efficiency of business management.

Corporate Governance

The Board of Directors, Audit & Supervisory Board, and Committees

External Evaluation

We separate oversight of management by the Board of Directors and business execution by introducing the managing officer system to

Sustainability DataManaging Officer System

Our Approach to Sustainability

Corporate Governance Initiatives* Attendance rates are calculated based on the meetings held in January to December 2022. Attendance rates of Kaoru Takahashi is calculated based on the meetings held inJanuary to March 2022, and that of Shinji Tsuji is calculated based on the meetings held in March to December 2022. Mr. Koichi Nezu resigned from his position as External
Audit & Supervisory Board member on December 31, 2022.

Hulic Co., Ltd. Sustainability Book 2023

99

management, (6) personnel and labor affairs and human resources

Outline of Limited Liability Agreements

have defined the skills we consider necessary for directors as thosedevelopment, and (7) the real estate business.

Pursuant to Article 427, Paragraph 1 of the Companies Act, theand each Audit & Supervisory Board Member, to limit their liability

related to (1) corporate management, (2) sustainability and ESG,

We appoint directors with the right skills in accordance with theseCompany has entered into an agreement with each Director

for damages under Article 423, Paragraph 1 of the Companies Act(3) finance and accounting, (4) legal affairs and compliance, (5) risk

requirements, and their skills are shown in the table below.

(excluding Directors with executive authority over operations, etc.)

to the maximum amount stipulated by law.

Corporate
management

SaburoNishiura

Chairman,
Representative
Director

TakayaMaeda

President,
Representative
Director◎

Hidehiro
Shiga

Vice President,
Representative
Director〇

HajimeKobayashi

Vice President,
Director〇

TadashiNakajima

Director, Senior
Executive
Managing Officer

ManabuYoshidome

Chairperson of theBoard of Directors,
Director (nonexecutive)

Tsukasa
Miyajima
Hideo
Yamada◎Sustainability
and ESG〇

Finance andaccounting

〇

〇

〇

〇
〇

Shinji Tsuji

External Director

Kiyomi Akita

External Director

Yuko
Takahashi

External Director

〇

〇

〇

〇

◎

〇

◎

his or her duties as a Director or Officer of the Company.

agency that covers Director and Officer liability for damages (D&O

・In addition, the policy also covers any costs incurred by the insured

insurance), as stipulated in Article 430-3, Paragraph 1 of the

Directors or Officers that may be required to respond to a potential

Companies Act. The details of the policy are as follows.

claim for damages, even if no such claim was being made.

ⅰS cope of insured persons

As a measure to ensure that the appropriateness of the execution

The Company’s Directors and Audit & Supervisory Board Membersof duties by the Directors and Officers is not compromised, theunder the Companies Act.

D&O insurance adopted by the Company exempts from liability

ⅱ Percentage of premiums paid by Directors and Officers◎〇

policy concluded by the Company.
ⅲ Outline of the insurance policy

〇

〇

〇

〇

◎

〇

〇

〇

〇

◎

〇

illegally obtained personal benefits or favors－ Criminal acts committed by Directors or Officers, or acts
committed by Directors or Officers while aware of theirFebruary 1, 2023 to February 1, 2024.

illegality

・T he policy covers damages (legal damages and litigation expenses)
incurred by a Director or an Officer, in the event of a claim by ashareholder or third party during the insurance period, arising〇

the following acts that are offensive to public order and morals.
－ Claims for damages arising due to a Director or Officer having

The coverage area is worldwide, and the insurance period is fromThe following is an outline of the events insured by the policy.

from an act (including an omission) conducted in the course of－ Claims for damages arising from the illegal payment of
remuneration or bonuses, etc. to Directors or Officers－ Claims for damages arising from insider trading by Directors
or Officers－ Claims for damages arising from the provision of illegal benefits

Decision-making Body for Exemptions by Directors and Others〇◎◎

External Director
External Director〇

Real estatebusiness

The Company pays all annual premiums for the D&O insurance

External Director

AtsukoFukushima

Risk
management

Outline of the Insurance Policy that Covers Director and Officer Liability for Damages
The Company has concluded an insurance policy with an insurance

〇

◎

〇

◎

〇

◎
◎

*1 A ◎ in a director's skill matrix means the director in question has particularly outstanding skills in that particular area.
*2 The above list is not intended to be an exhaustive list of the knowledge and experience possessed by each director.

be exempted from liability for damages to the Company to theCompany stipulates in its Articles of Incorporation that Directors

extent permitted by law, by resolution of the Board of Directors.

(including former Directors), Audit & Supervisory Board Members

The purpose of this provision is to ensure that Directors, Audit &(including former Audit & Supervisory Board Members), andSupervisory Board Members, and Accounting Auditors fully fulfill

Accounting Auditors (including former Accounting Auditors) may

their expected roles.

Executive Officer Nominations〇〇

Pursuant to Article 426, Paragraph 1 of the Companies Act, the

The Company’s Articles of Incorporation stipulate that resolutions

Shareholders, by relaxing the quorum for the election of Directorsof the General Meeting of Shareholders concerning the election ofand Audit & Supervisory Board Members at the General Meeting

Directors and Audit & Supervisory Board Members shall be adoptedof Shareholders. The Articles of Incorporation also stipulate thatby a majority of the voting rights of the shareholders present at

resolutions for the election of the Board of Directors shall not be

the meeting, at which shareholders holding one-third or more

made by cumulative voting.

of the voting rights of shareholders who are entitled to exercise

While Directors and Audit & Supervisory Board Members are

their voting rights are present. The purpose of this provisionelected at the General Meeting of Shareholders, the following

is to ensure the smooth operation of the General Meeting ofpolicies and procedures have been established for their nomination.

Corporate Governance

Title

Personnel andlabor affairs
and human
resourcesdevelopment

External Evaluation

Name

Legal
affairs andcompliance

Environmental Initiatives

Liability of Directors and Others

To achieve our Medium- and Long-Term Management Plan, we

Social Initiatives

Director Skill Matrix

Our Approach to Sustainability

Corporate Governance Initiatives

When nominating candidates for the Board of Directors or

make on improvements to the corporate value from an unbiased

the Audit & Supervisory Board, in addition to having excellent

perspective. Efforts are made with regard to Audit & Supervisory

character and insight and appropriately fulfilling the duty of care,

Board candidates in particular, to appoint at least one candidate

candidates are selected based on their professional experience

with extensive accounting knowledge.

and expertise as well as the contribution they are expected toProcedures for Nominating Board of Director and Audit & Supervisory Board Member Candidates

100 Hulic Co., Ltd. Sustainability Book 2023

When nominating candidates for the Board of Directors or thewhich is comprised entirely of independent external directors. The

Audit & Supervisory Board, reports are submitted to the Board

reasons for nominating each candidate are included in Referenceof Directors after deliberation by the Nominating Committee,

Documents for General Meeting of Shareholder notices.

Sustainability Data

Policy on Nominating Board of Director and Audit & Supervisory Board Member Candidates

Hulic Co., Ltd. Sustainability Book 2023 101

for directors will not change if the percentage change in thepayments and stock compensation, and basic compensation,

preceding fiscal year's consolidated ordinary income falls below a

Policy for Determining Executive Officer Compensation, etc.

which is in addition to performance-linked compensation.

certain level. The ratio of performance-based compensation in the

The compensation for directors (excluding non-executive directors)

sustainable growth of the Company and to enhance corporate

Performance-linked compensation accounts for 40 to 50% andform of bonuses (monetary portion) to share-based compensationconsists of basic fixed compensation, based on their position

value from the shareholders’ perspective.

basic compensation accounts for 50 to 60% of total director(BBT) is 1:1, and a clawback mechanism is in place that will revoke

within the Hulic Group and the weight of their responsibilities,

Furthermore, compensation for non-executive directors and Audit

remuneration. Basic compensation is paid monthly, while

share-based compensation granted in the past if any misconduct

as well as performance-based compensation, which is linked to& Supervisory Board members consists solely of basic compensation

performance-based compensation is paid at a certain time, based

occurs. With regard to the actual results of the indicators related

earnings performance of the Company and their contribution

in light of their roles and responsibilities.

on the results of each fiscal year.

to performance-based compensation, actual consolidated ordinary

to those earnings. In accordance with a resolution at the 86th

Moreover, a resolution pertaining to the method for determining

Hulic uses the percentage of change in preceding fiscal year

income was JPY123,222 million (up 12.4% year-on-year),

General Meeting of Shareholders, a portion of performance-based

executive officer compensation was passed at a Board of Directors

consolidated ordinary income as an indicator for performance-compared to the consolidated earnings forecast of ordinary incomecompensation is allocated to a share-based payment plan designed

meeting held on February 18, 2021.

based compensation. Our business performance is concisely

at JPY120,000 million for FY2022, as announced in the Notice ofrepresented by consolidated ordinary income as it takes into

Revisions to Annual Performance and Dividend Forecast released

account interest expenses and other nonoperating income, thus weon October 28, 2022. As a result, despite the spread of COVID-19,

General Meeting of Shareholders Resolution Details Related to Executive Officer Compensation, etc.

decided to use the percentage of change in consolidated ordinary

the Company’s performance was on track to meet the goals of

At the 92nd General Meeting of Shareholders it was resolved thatfor directors (excluding non-executive directors).

income as it is considered to represent a medium- to long-term

both its Medium-Term Management Plan, which ends in FY2022

the annual amount for Board of Director monetary compensation

When determining specific compensation, the Remuneration

sustainable increase in shareholder value.

and its Long-Term Management Plan, which ends in FY2029.

is up to JPY1,000 million. (Of this amount, up to JPY120 million

Committee, which consists entirely of independent external

can be paid to external directors.) Additionally, a resolution at thedirectors authorized by the Board of Directors, deliberates and85th General Meeting of Shareholders stipulates an annual amountmakes decisions within the scope of compensation determined byof up to JPY150 million for Audit & Supervisory Board member

the General Meeting of Shareholders. Further, Audit & Supervisory

monetary compensation.

Board member compensation is determined as a separate system

A resolution at the 92nd General Meeting of Shareholders

from director compensation within the scope of compensation

stipulates a change in Board Benefit Trust (BBT) to a maximum of

determined by the General Meeting of Shareholders, in

300,000 points per fiscal year with regard to share-based payments

consultation with the Audit & Supervisory Board.

Persons Authorized to Determine the Amount of Remuneration, etc. for Each Individual Executive Officer and Their Authority,and the Procedures of Voluntary Committees

Directors/Auditors’ Compensation

Post

Total
amount ofcompensation(JPY million)

Total amount by type of compensation (JPY million)
Fixedcompensation

Performancelinked variable
compensation(in stock)

Performancelinked variable
compensation(bonus)Of theseamounts, nonmonetarycompensation

Number of
directors/
auditors

Directors (excluding External
Directors)

1,045

521

262

262

262

6

Auditors (excluding External
Auditors)

72

72

―

―

―

2

External Directors /Auditors

126

126

―

―

―

8

The Company has established a Remuneration Committee,

at the same General Meeting of Shareholders). The Committee

which consists solely of independent external directors (fourdetermines the details of remuneration, etc. for each individual

members). The decision on the amount of remuneration, etc.

Director for the fiscal 2022 under review, after a multifacetedfor each individual Director is entrusted to the Remuneration

review, including consistency with the policy for determining theCommittee, within the amount resolved at the General Meeting

details of remuneration, etc. for each individual Director. The Boardof Shareholders. This is to ensure that the evaluation andof Directors believes that the process of such review, and thedetermination of Directors’ remuneration, etc. is conducted fromdetails of the determination are reasonable, and judges that the

an objective perspective.

details are in line with such determination policy.

Corporate Governance Report

The Remuneration Committee is composed of Independent

In addition, retirement benefits for Directors have been abolished.

The Company prepares and submits the Corporate Governancegovernance to the Tokyo Stock Exchange as part of timely

External Directors Tsukasa Miyajima, Hideo Yamada, Atsuko

Remuneration for Audit & Supervisory Board Members is structured

Report (in Japanese only) outlining the status of corporate

disclosure based on the regulations of the Tokyo Stock Exchange.

Fukushima, Kaoru Takahashi (until the conclusion of the Generalseparately from that for Directors, and is determined by discussion

Meeting of Shareholders on March 23, 2022 when he resigned

among the Audit & Supervisory Board Members, within theas Director) and Shinji Tsuji (since his appointment as Director

amount resolved at the General Meeting of Shareholders.

*1 The amount of stock compensation is provision to reserves for stock benefits posted as the portion for the current fiscal year, for performance-linked variable compensation system.
*2 The total non-monetary compensation to directors (excluding external directors) consists of JPY262 million in performance-linked variable compensation (in stock).

Corporate Governance Report

Sustainability Data

External Evaluation

to give incentives for performing duties, in order to achieve theEnvironmental Initiatives

Moreover, the total amount of performance-based compensation

performance-based compensation, which consists of bonus

Social Initiatives

Director compensation (excluding non-executive directors) includes

Matters Pertaining to Policies for Determining the Amount and Means of Calculating Executive Officer
Compensation, etc.

Corporate Governance

Performance-based Compensation

Executive Officer Remuneration, etc.

Our Approach to Sustainability

Corporate Governance Initiatives

102 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 103

Corporate Governance Initiatives

April

1971 Joined The Fuji Bank, Limited

April1984 Joined Taisei Corporation

April

2004 The University of Tokyo Graduate School of Education, Professor

October

1992 Joined Century Audit Corporation (currently KPMG AZSA LLC)

August2000 The Fuji Bank, Limited, Managing Executive Officer, Headof Corporate Group and General Manager of Corporate
Development Division

October

2007 Joined Hulic Co., Ltd., Deputy General Manager of Real Estate
Development Department 2

April

2005 The Open University of Japan, Visiting Professor

April1996 Registered as a certified public accountant

June2008 Hulic Co., Ltd., General Manager of Real Estate Development Department 2

July

February

2001 Joined Dentsu Inc.

April

2002 Mizuho Bank Ltd., Managing Executive Officer

March

April

April

2004 Mizuho Bank, Ltd., Deputy President

2009 Hulic Co., Ltd., Director, Managing Officer, General Manager ofReal Estate Development Department 22015 The University of Tokyo Graduate School of Education, Founding
President of The Center for Early Childhood Development, Education,
and Policy Research2010 Dentsu Inc., General Manager of Business Administration
Department of Global Business Management Division

April

March

2006 Joined Hulic Co., Ltd., Representative Director, President

2010 Hulic Co., Ltd., Director, Managing Officer, General Manager ofBusiness Planning Department

2018 The University of Tokyo, Dean of Graduate School of Education
and Faculty of Education

August2014 Dentsu Inc., General Manager of Global Finance Department ofCorporate Strategy Division

April

2013 Hulic Co., Ltd., Director, Managing Officer, General Manager ofReal Estate Planning Department

2021 Gakushuin University, Professor of Department of Education in
Faculty of Letters (to date)

January

2017 Dentsu Inc., Managing Director of Finance & Accounting Office
DivisionJune

2021 The University of Tokyo, Professor Emeritus (to date)

January

2020 Dentsu Group Inc., Executive Officer

March2023 Hulic Co., Ltd., External Director (to date)July2021 Established Yuko Takahashi Certified Public Accountants Office

January2022 17LIVE Inc., External Auditor (to date)March2022 Dentsu Group Inc., Director (Non-executive)

March2023 Hulic Co., Ltd., External Director (to date)

April

Representative Director,
Chairman

Representative Director,
President

April

2014 Hulic Co., Ltd., Director, Executive Managing Officer, General
Manager of Real Estate Planning Department

SaburoNishiura

Takaya Maeda

January

2015 Hulic Co., Ltd., Director, Executive Managing Officer, General
Manager of Real Estate Development Department 1

2022 Hulic Co., Ltd., Representative Director, President (to date)April

1980 Joined The Fuji Bank, LimitedMay

2003 Mizuho Bank Ltd., General Manager of Hamamatsu Branch

April

2004 Mizuho Bank Ltd., General Manager of Gotanda Station Branch

March

2006 Joined Hulic Co., Ltd., Representative Director, Senior Executive
Managing Director

August2006 Joined Hulic Co., Ltd., Managing Officer, General Manager ofCorporate Planning Department

July

2006 Hulic Co., Ltd., Representative Director, Senior Executive
Managing Officer

April2010 Hulic Co., Ltd., Executive Managing Officer, General Manager ofCorporate Planning Department

April

1985 Joined The Fuji Bank, Limited

December 2010 Registered as a lawyer

2020 Hulic Co., Ltd., Representative Director, Vice President (to date)April

2008 Mizuho Bank, Ltd., General Manager of Iwaki Branch

January

February

2013 Hulic Co., Ltd., Senior Executive Managing Officer, General Manager
of Corporate Planning Department

October

2013 Mizuho Financial Group, Inc., General Manager of Legal Division
Mizuho Bank, Ltd., General Manager of Legal Division

September 2011 Joined Tamuracho Sogo Law OfficeMarch2013 Hulic Co., Ltd., Director, Senior Executive Managing Officer, andGeneral Manager of Corporate Planning Department

July

2016 Nippon View Hotel Co., Ltd., Full-time Statutory External Auditor

March2021 Hulic Co., Ltd., Senior Corporate Auditor, Full-Time Audit &Supervisory Board Member (to date)
Nippon View Hotel Co., Ltd., Auditor (to date)
TOKYO SOIR CO., LTD., External Director and Audit and Supervisory
Committee member (to date)

HajimeKobayashi

April

2022 Hulic Co., Ltd., Director, Vice President, General Manager of Human
Resources Department

January2023 Hulic Co., Ltd., Director, Vice President (to date)April

1980 Joined Nomura Real Estate Development Co., Ltd.

April

1977 Joined The Fuji Bank, Limited

April2012 Nomura Real Estate Development Co., Ltd., Director, Managing
Executive Officer

April2005 Mizuho Bank Ltd., Executive Officer, General Manager of the
Human Resources DivisionMay

2012 Nomura Real Estate Holdings, Inc., Executive Officer

March2006 Mizuho Bank, Ltd., Managing Executive Officer

April2013 Nomura Real Estate Development Co., Ltd., Director, Senior
Managing Executive Officer, General Manager of Commercial
Property Development & Management Division

April2009 Mizuho Bank, Ltd., Deputy President

March2012 Joined Hulic Co., Ltd., Full-Time Audit & Supervisory Board
Member2014 Nomura Real Estate Development Co., Ltd., Representative
Director, Senior Managing Executive Officer, General Manager
of Commercial Property Development & Management Division

April

2016 Nomura Real Estate Development Co., Ltd., Advisor

August2016 Joined Hulic Co., Ltd., Executive Managing Officer, General
Manager of Real Estate Development Department 3

April

2017 Hulic Co., Ltd., Executive Managing Officer, General Manager
of Value-add Business Department, General Manager ofDevelopment Solution Department

January

2019 Hulic Co., Ltd., Executive Managing Officer

March2020 Hulic Co., Ltd., Director, Executive Managing Officer

April2021 Hulic Co., Ltd., Director, Senior Executive Managing Officer (to date)March2015 Hulic Co., Ltd., Representative Director, Executive Vice President

March2016 Hulic Co., Ltd., Representative Director, President

Director (Non-executive), March
Chairperson of the Boardof Directors■ Audit & Supervisory Board Members

MasahiroOkamotoMie Tanaka

ManabuYoshidome

2001 Yasuda Mutual Life Insurance Company, Executive Director,
Deputy Senior Manager of Asset Management Division andGeneral Manager of Operational Policy Division

April

2002 Yasuda Life Direct General Insurance Company, Director andPresident

January

2004 Meiji Yasuda Life Insurance Company, Managing Director, General
Manager of New Market Sales Division

April

2007 National Institute for Environmental Studies, Japan, Auditor

March2009 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board
Member (to date)April

2010 Nagoya University of Commerce & Business (graduate school),
Professor (to date)

October

2011 Japan Arts Council, Auditor

External Auditor, Audit& Supervisory Board
MemberJuly

2017 The Japan Institute for Labour Policy and Training, Auditor

October

2017 Tokyo District Court, Adviser (to date)

June

Nobuyuki
Kobayashi

2019 The Japanese Institute of Certified Public Accountants Tokyo
Chapter, Deputy Chairman (to date)July2022 The Japanese Institute of Certified Public Accountants, Director(to date)

April

2004 General Insurance Rating Organization of Japan, Director

June

2004

SATO CORPORATION, External DirectorJune2007 Meiji Yasuda Life Insurance Company, Councilor

March

2006

Lion Corporation, External Director

June

2007

Ishii Food Co., Ltd., External Auditor
MIKUNI CORPORATION, External Auditor

March

2009

Hulic Co., Ltd., External Director (to date)

March

2011

Seibu Lions, Inc., External Auditor

April

2014

Daini Tokyo Bar Association, President
Japan Federation of Bar Associations, Vice President

October

1989 Joined Aoyama Audit Corporation (currently
PricewaterhouseCoopers Aarata LLC)

June

2015

SATO HOLDINGS CORPORATION, External Director (to date)
Akiko Tachibana Memorial Foundation, Chairman of the Board of
Directors (to date)April

1993 Registered as a certified public accountant

June2015 Mitsui Sumitomo Insurance Company, Limited, External Director
2015 Den-en Chofu Gakuen, Councilor

April2016 Keio University, Emeritus Professor (to date)
Asahi University, Professor of School of Law / Graduate School of
Law (to date)June

2018 Daifuku Co., Ltd., External Auditor (to date)July2021 Japan Cooperative Insurance Association Incorporated,
Committee Member of Examination Committee (to date)Hideo Yamada

June

2016

April

1985 Joined CHUBU-NIPPON BROADCASTING CO., LTD.

April

1979 Joined The Yasuda Fire & Marine Insurance Co., Ltd.

April

2008 Sompo Japan Insurance Inc., Executive Officer, General
Manager of Customer Service Department

April

1988 NHK contract presenter

October

1993 TBS contract presenter

April

2005 TV Tokyo economics program regular presenter

April

2009 Sompo Japan Insurance Inc., Managing Executive Officer

April2006 Shimane University, Management Council Member (to date)June

2011 NKSJ Holdings, Inc., Director, Managing Executive Officer

December

2006 Panasonic Corporation (currently Panasonic Holdings
Corporation), Management Advisor

April2012 NKSJ Holdings, Inc., Director, Senior Managing Executive Officer

April2014 NKSJ Holdings, Inc., Representative Director, Deputy President
and Senior Managing Executive Officer

April2016 Sompo Japan Nipponkoa Himawari Life Insurance, Inc.
(currently Sompo Himawari Life Insurance Inc.), Director

April2017 Sompo Holdings, Inc., Group CFO, Representative Director,
Deputy President and Senior Executive Officer

January

2019 Sompo Holdings, Inc., Group COO, Representative Director,
Deputy President and Senior Executive Officer

June2019 Sompo Holdings, Inc., Group COO, Director, Deputy President
and Representative Executive Officer

June2021 Sompo Care Inc., Director

March2022 Hulic Co., Ltd., External Director (to date)

April

2022 Sompo Holdings, Inc., Director

June2022 Sompo Holdings, Inc., Advisor(to date)

June

External Director

2012 Hulic Co., Ltd., External Director (to date)2015 Nagoya Railroad Co., Ltd., External Director (to date)
Calbee, Inc., External Director (to date)

October

2017 The Resona Foundation for Future, Director (to date)March2020 Councilor of Forestry Policy Council, Ministry of Agriculture,
Forestry and Fisheries (to date)February2022 Kewpie Corporation, External Director (to date)104 Hulic Co., Ltd. Sustainability Book 2023

External Director

Shinji Tsuji

September 1994 Joined Yamada & Partners Accounting Office (currently Grant
Thornton Yamada & Partners)

MIKUNI CORPORATION, External Director (to date)

External Auditor, Audit& Supervisory Board
MemberNoriko Koike

2023 Hulic Co., Ltd., Senior Corporate Auditor, Full-Time Audit &Supervisory Board Member (to date）

2005 Registered as a tax accountant

TAIYO CHEMICAL INDUSTRY CO., LTD., External Auditor (to date)

October

March

March

1998

External Director

2020 Hulic Co., Ltd., Deputy General Manager of Legal & ComplianceDepartment

November 2020 Hulic Co., Ltd., Deputy General Manager of Business Planningand Management Department

1972 Joined Yasuda Mutual Life Insurance Company

May2014 Dai Nippon Printing Co., Ltd., External Director (to date)
MIKUNI CORPORATION, External Auditor (to date)

April

April

2003 Registered as a lawyer

June2018 Hulic Co., Ltd., Deputy General Manager of Corporate Planning
Department

April

April

2013 Japan Railway Construction, Transport and Technology Agency,
Asset Disposal Committee Chairman (to date)July

1991 Registered as a certified public accountant

Registered as a lawyer

2010 Japan Association of Private Law, Director

2017 Hulic Co., Ltd., Assistant Manager of Corporate Planning
Department

1995 Established the Kobayashi Certified Public Accountants Office

1984

October

2016 Joined Hulic Co., Ltd.

October

March

April

2009 Hulic Co., Ltd., External Director (to date)

October

December1990 Keio University Faculty of Law, Professor and Doctor of Law

October

December 2015 Joined Tairaka Law Offices

Senior Corporate
Auditor, Full-Time Audit& Supervisory Board
Member

April

March

December 2011 Registered as a tax accountant

Senior Corporate
Auditor, Full-Time Audit& Supervisory Board
Member2022 Hulic Co., Ltd., Director (Non-executive), Chairperson of theBoard of Directors (to date)2011 Joined Akamatsu & Yonezu Law Office

January

1997 Established Koike Certified Public Accountants OfficeJune2015 The Higashi-Nippon Bank, Limited, External Auditor (to date)June2020 Matsumotokiyoshi Holdings Co., Ltd. (currently
MatsukiyoCocokara & Co.), Outside Auditor (to date)March2023 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board
Member (to date)

External Auditor, Audit& Supervisory Board
MemberKenichiSekiguchi

December2005 Meiji Yasuda Life Insurance Company, Chairman of the Board

July

2006 Meiji Yasuda Life Insurance Company, Chairman of the Board andExecutive Officer

July2013 Meiji Yasuda Life Insurance Company, Special Advisor

March2014 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board
Member (to date)

October

2015 Kyushu Financial Group, Inc., External Auditor (to date)June

2018 Okuhiei Sankei Driveway Co., Ltd., Director (to date)
Shinjuku Subnade Co., Ltd., Director (to date)

April

2022 Meiji Yasuda Life Insurance Company, Honorary Advisor(to date)■ Managing Officers
Vice President

Executive Managing Officer

Yasuki Yakabi

Kazuhiro Noguchi
Yasushi Umeda

Hiroshi Hara
Mikio Morikawa

Managing Officer

Yoshikazu Nagatsuka
Yoshito Nishikawa
Yuuji Mutagamihigashi Hiroyuki Iijima
Miki Kurobe
Keiko Yoshinaga

Ken Ohta
Mayumi Naruse
Sustainability Data

Director, Vice President

March

AtsukoFukushima

March

1978 Joined The Fuji Bank, Limited

April

Tsukasa
Miyajima

2021 Hulic Co., Ltd., Representative Director, Vice President

2005 Mizuho Bank Ltd., General Manager of the Subsidiaries andAffiliates Management Division

Hidehiro Shiga

External Director

April

Yuko Takahashi

January

Representative Director,
Vice President

TadashiNakajima

2020 Hulic Co., Ltd., Director, Senior Executive Managing Officer

Kiyomi Akita

External Director

April

April

Director, Senior
Executive Managing
Officer

April

External Director

Social Initiatives

2022 Riso Kyoiku Co., Ltd., Director (Non-executive) (to date)

Corporate Governance2016 Hulic Co., Ltd., Representative Director, Chairman (to date)

May

External Evaluation

March

October

Environmental Initiatives■ Board of Directors

Our Approach to Sustainability

Directors, Auditors and Managing Officers (as of April 1, 2023)

Hulic Co., Ltd. Sustainability Book 2023 105

The expertise and reasons for selection of the External Directors and External Audit & Supervisory Board Members are as follows.

and fulfill management oversight and check functions.

Supervisory Board members provide comments at Board ofExternal Directors*1
Name

Independent External Directors and Independent External Auditors Nominations
External Directors and External Audit & Supervisory Board

The Company pays donations to the Akiko Tachibana Memorial

members meet the criteria in the guidelines on the independence

Foundation, where External Director Hideo Yamada serves as theof independent executive officer(s) set out in Article 436-2 of the

Chairman of the Board of Directors, for the purpose of promoting

Securities Listing Regulations of the Tokyo Stock Exchange and theand disseminating the arts. However, in light of the nature and“Criteria for assessing the independence of independent external

scale of the transactions, the Company believes that there is no risk

directors” in Hulic's Corporate Governance Guidelines.

of influencing the judgment of shareholders or investors.

We appoint suitable independent external directors and auditors

External Director Shinji Tsuji served as a Director of Sompo

with excellent backgrounds, experience, and knowledge that fulfill

Holdings, Inc.’s subsidiary, Sompo Japan Insurance Inc., until

our corporate governance requirements, using the criteria shown

June 2022. Sompo Japan Insurance is a shareholder of Hulic that

below. Furthermore, we maintain the number of independent

lends business funds to Hulic and engages in real estate businessdirectors more than one-third of all directors.

transactions with Hulic. These transactions are also undertaken with(1) Achieving the sustainable growth of the Company and

Hulic’s subsidiaries. Such relationship is permitted in the criteria

improving corporate value over the medium- and long-term

established by the Company for determining the independence of(2) Strengthening management oversight

independent external officers.

(3) Overseeing any conflict of interest among the Company,

External Audit & Supervisory Board member Kenichi Sekiguchi

management, and shareholders

served as Chairman of the Board and Executive Officer of Meiji(4) Effectively relaying, from an independent position, the opinions

Yasuda Life Insurance Company until July 2013. Meiji Yasuda Lifeof shareholders, including minority shareholders, to the Board

Insurance Company is a shareholder of Hulic that lends businessof Directors

funds to Hulic and engages in real estate business transactions with

Please visit the Company's Corporate Governance Guidelines

Hulic. Such relationship is permitted in the criteria established byon our website for our criteria for assessing the objectivity of

the Company for determining the independence of independent

independent external directors/auditors.

external officers.

Note:Hulic has designated and registered directors Tsukasa Miyajima, Hideo Yamada, Atsuko Fukushima, Shinji Tsuji, Kiyomi Akita, Yuko Takahashi and Audit & Supervisory Board members
Nobuyuki Kobayashi, Kenichi Sekiguchi and Noriko Koike as independent external officers with the Tokyo Stock Exchange based on the Tokyo Stock Exchange’s rules and regulations.

Tsukasa
Miyajima

Hideo
YamadaAtsukoFukushima

Attendance atBoard of Directors
meetings in FY2022

Occupation/affiliation, etc.

Reason for appointment

Independent
Director

16 of 16 (100%)

Professor Emeritus of Keio
University, Lawyer, Professor of
School of Law and Graduate,
School of Law of Asahi University

Mr. Miyajima has extensive experience and insight as aperson of academic standing and the Company believes
that he leverages this expertise in the management of theGroup.

○

16 of 16 (100%)

President of Yamada Ozaki Law
OfficeMr. Yamada has been active as a lawyer for years andhas refined views as a legal expert as well as experience
as an external director of other companies, and theCompany believes that he leverages this expertise in the
management of the Group.

○

16 of 16 (100%)

Journalist, Councillor ofForestry Policy Council,
Ministry of Agriculture, Forestry
and Fisheries

Ms. Fukushima has been active in the media industry
for years and has extensive experience, so the Company
believes she can reflect her wide range of perspectives inareas including socio-economics, environment, culture
and diversity in the management of the Group.

○○

ShinjiTsuji*2

12 of 12 (100%)

Director, Sompo Holdings, Inc.

Mr. Tsuji has extensive experience and broad insight as the
top management of a major non-life insurance company,
and the Company believes that he leverages this expertisein the management of the Group.

Kiyomi
Akita*3―

Professor Emeritus of the
University of Tokyo, Professorof Gakushuin University,

Ms. Akita provides her advice based on her experience ineducational research for the benefit of the managementof the Group.

○―

Yuko Takahashi Certified Public
Accountants Office

Ms. Takahashi has expertise in corporate accounting anda wealth of experience as a member of management at amajor advertising agency, and the Company believes sheleverages this expertise in the management of the Group.

○

Occupation/affiliation, etc.

Reason for appointment

Independent
Director

Yuko
Takahashi*3

External Auditor and Audit & Supervisory Board members*1
Attendance at meetings in FY2022
Name

Nobuyuki
Kobayashi

KenichiSekiguchi

NorikoKoike*3

Board ofDirectors

Audit &
Supervisory Board

16 of 16
(100%)

14 of 14
(100%)

Director of
Kobayashi
Certified Public
Accountants
OfficeMr. Kobayashi has specialized knowledge in accounting
and taxation as a certified public accountant and tax
accountant, so the Company expects him to be able to audit
management objectively and from a neutral position as anExternal Auditor and Audit & Supervisory Board member.

○

14 of 14
(100%)

Honorary
Advisor of
Meiji Yasuda
Life Insurance
Company

Over the years, Mr. Sekiguchi has accumulated extensive
business management experience and broad insight aschairman, so the Company expects that he will be able toaudit management objectively and from a neutral position as
an External Auditor and Audit & Supervisory Board member.

○

Koike Certified
PublicAccountants
OfficeMs. Koike has extensive experience and specialized
knowledge in accounting, so the Company expects that
she will be able to audit management objectively andfrom a neutral position as an External Auditor and Audit &Supervisory Board member.

○16 of 16
(100%)―

Environmental Initiatives

Directors from a position independent from the execution of businessSupervisory Board members. External directors and Audit &Social Initiatives

Hulic has six external directors and three external Audit &Corporate GovernanceExpertise of External Directors and External Audit & Supervisory Board Members

External Evaluation

External Directors and External Auditors

Our Approach to Sustainability

Corporate Governance Initiatives

Relationship between Supervision and Audits by External Directors or External Audit & Supervisory
Board Members and Internal Audits, Mutual Cooperation between Audit & Supervisory Board
Member Audits and Accounting Audits and Relationship with the Internal Control Department

106 Hulic Co., Ltd. Sustainability Book 2023

External directors receive reports on internal audits, Audit &Supervisory Board members regularly receive reports on audits fromSupervisory Board audits, accounting audits and internal controls

the accounting auditor and the corporate audit department, attend

at meetings of the Board of Directors. In addition, external Audit &meetings of the Board of Directors and express opinions as necessary.

Sustainability Data

*1 Information about external directors and external auditors who retired in 2022 is not be included in this list.
*2 Appointed on March 23, 2022
*3 Appointed on March 23, 2023

Hulic Co., Ltd. Sustainability Book 2023 107

Auditing Mechanism

Status of Accounting Audit

Auditing Mechanism

Name of Accounting Auditor

The Company enhances the effectiveness and efficiency of audits through mutual cooperation and regular exchange of information among

Ernst & Young ShinNihon LLC

the Audit & Supervisory Board members, the Accounting Auditor, and the Corporate Audit Department.

The Company enters into an agreement with the Accounting

Incorporation. The maximum amount of liability under the

Auditor that limits liability for damages resulting from the neglectagreement is the higher of an amount predetermined by theof duties based on Article 427, Paragraph 1 of the Companies

Company and the amount stipulated by law.

Status of Audits by the Audit & Supervisory Board Members

Act and Article 41, Paragraph 2 of the Company’s Articles of

Our Approach to Sustainability

Corporate Governance Initiatives

Continuous Audit Period

issues pointed out by the Accounting Auditor after receiving a

From 2003 onwards

operations changes regularly based on the Certified Public

full-time auditors and three are External Auditor pursuant toreport from an Audit & Supervisory Board member. The Audit &Due to significant research difficulties prior to 2002, the period of

Accountants Act, and auditors are engaged to conduct audits for

the Companies Act and Ordinance for Enforcement of theSupervisory Board Office has been established to support the duties

continuous audits may exceed such period.

no more than seven consecutive years.

Companies Act). In audit conducted by the Audit & Supervisoryof Audit & Supervisory Board members.

The certified public accountants engage in Hulic accounting

Board members, auditors monitor the operations of the internal

Furthermore, the Audit & Supervisory Board members receive

control system and the status of its implementation through audit

reports on the results of audits performed by the Corporate Audit

Policy and Reason for Selecting the Accounting Auditorof the execution of duties by directors, managing officers andDepartment and exchange information regularly to enhance

When it is necessary to select a certified public accountant to・Appropriateness of audit fees

each division in accordance with the audit basic policy and thethe effectiveness and efficiency of audits by both the Audit &perform audits, the Audit & Supervisory Board examines and

The Accounting Auditor will be dismissed based on agreement

audit basic plan formulated by the Audit & Supervisory Board.

Supervisory Board members and Corporate Audit Department,

confirms the following items through interviews and questions

among all Audit & Supervisory Board members when they have

These audits consist of attendance at the Board meetings as wellwhich performs internal audits.

with the certified public accountant and an exchange of opinions

judged that there is a reason for dismissal as provided for in Article

as other meetings and committees when required, interviews

Note that External Audit & Supervisory Board member Nobuyuki

with business execution divisions before making a comprehensive

340, Paragraph 1 of the Companies Act. The Audit & Supervisoryon the execution of duties by directors and managing officers,

Kobayashi and Noriko Koike are registered as a certified publicjudgment.

Board determines the proposal for dismissal or non-reappointment

and reviewing important documents, approval documents andaccountant. Both members have considerable knowledge of・Status of quality controlof the current Accounting Auditor when it concluded that they areaccounting documents, etc. In addition, the Board responds

finance and accounting.

・Independence

not appropriate due to such reasons as violation of the Certified

・Expertise

Public Accountants Act, etc., and based on that decision, the Board

Status of Activities by Audit & Supervisory Board Members and the Audit & Supervisory Board

・Appropriate member configurationof Directors will submit the proposal at the general meeting ofFrequency of Audit & Supervisory Board Meeting

・Audit plan considering risk

shareholders.

The Audit & Supervisory Board meets at an appropriate frequency and actively exchanges opinions on management issues of the Company
and important risks pertaining to accounting audits.

Evaluation of the Accounting Auditor by the Audit & Supervisory Board and Its Members
The Audit & Supervisory Board performed an evaluation of theof Group audits and fraud risk, after receiving a report on the

Priority Audit Items of FY2022

Accounting Auditor from the perspectives of quality control,

status of the audit quality from Ernst & Young ShinNihon LLC. As

・Achievement of priority issues at each department in the first year of the Medium- and Long-Term Management Plan

independence of the audit team, exercise of professional distance,a result, it was determined appropriate to reappoint Ernst & Young・Risk management mechanism for business diversification and internal control of the Groupappropriateness of audit fees, effectiveness of communication with

ShinNihon LLC as the Accounting Auditor.

・Sustainability Initiatives to achieve net zero CO2 emissions

management and the Audit & Supervisory Board, and handlingSocial Initiatives

promptly to any wrongdoing identified as well as deficiencies andcomprises five Audit & Supervisory Board members (two are

Corporate Governance

Hulic is a company with an Audit & Supervisory Board, which

Environmental Initiatives

Organization, Personnel and Procedures

Major Activities of Audit & Supervisory Board Members

discussions at the Audit & Supervisory Board meetings through information sharing with full-time Audit & Supervisory Board members who
attend important meetings other than the Board of Director meetings and mutual confirmation based on interviews with key officers.)
・Review important approval documents, etc.
・Verify the effectiveness of the Group internal control system (full-time Hulic Audit & Supervisory Board members concurrently serve as Audit

External Evaluation

・Regular meetings with the representative directors (approximately four times each year)
・Attendance at important meetings such as the meetings of the Board of Directors (External Audit & Supervisory Board members hold& Supervisory Board members at most of the affiliated companies, and in addition to conducting effective audits during the term, Group
Audit & Supervisory Board Liaison Meetings are held every three months. The Audit & Supervisory Board Members of affiliated companies
that have full-time Audit & Supervisory Board Members share information on the status of risk management and issues at each company.)
・Exchange information with accounting auditors (approximately 10 times a year; receive reports on the status of audit quality from the audit
firm, and address the independence of the accounting auditor, the status of quality control, the appropriateness of the job execution system,and the risk of fraud, and confirm the state of implementation of accounting audits of the auditing fiscal year.)・Cooperate with three-way audits (twice annually)
・Evaluate the effectiveness of the Audit & Supervisory Board (annually)

108 Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

・Collaborate with external directors (twice annually to exchange information on recent audits and topics.)

Hulic Co., Ltd. Sustainability Book 2023 109

Internal Control System
System to Ensure the Appropriateness of the Company’s Operations and Operational Status of the System(JPY million, consolidated basis)

Compensation based onCompensation based onCompensation based onCompensation based on

audit and attestation services

non-audit services

audit and attestation services

non-audit services

Hulic

62

36

59

7

Consolidated subsidiaries

50

―

51

―

Total

112

36

110

7

The Board resolves matters concerning the basic design and

the Companies Act, as a system to ensure appropriate business

operation of the internal control system specified in the provisions

operations of the Company, and promoting sound managementof the Companies Act and the Ordinance for Enforcement ofand business operations by enhancing internal controls.

System to Ensure the Appropriateness of the Company’s Operations① System for ensuring that the directors, managing officers, andemployees of our company and subsidiaries execute their duties while
they comply with laws and regulations, and the Articles of Incorporation② System for storing and managing the information related to the(FY2021)
Non-audit services provided to the Company include tasks such as drafting comfort letters related to new stock issuances.

execution of duties of our directors③ System for the rules, etc. that are related to the management of(FY2022)
Non-audit services provided to the Company include tasks such as drafting comfort letters related to corporate bonds issuances.

the risk of losses of our company and subsidiaries④ System for ensuring that the directors of our company andCompensation for Ernst & Young Member Firms(JPY million, consolidated basis)

FY2021Category

FY2022Compensation based onCompensation based onCompensation based onCompensation based on

audit and attestation services

non-audit services

audit and attestation services

non-audit services

Hulic

―

5

―

6

Consolidated subsidiaries

―

3

―

3

Total

―

8

―

10

subsidiaries effectively execute their duties⑤ System for reporting to our company about the execution ofduties of the directors, etc. of subsidiaries⑥ System for relating to the employees who are asked to support⑦ Matters relating to the guarantee of the independence of theabovementioned employees from the directors and of theeffectiveness of the orders given by the auditors⑧ System for having the directors, managing officers, as wellas employees of our company, and the directors, auditors,
managing officers, as well as employees of subsidiaries, or the
persons receiving a report from any of the abovementioned
persons report to our Audit & Supervisory Board and its
members and other systems for reporting to auditors⑨ Matters relating to payment for auditors for executing theirduties and other systems for ensuring that audits are effectively
carried out by the auditors

auditors' duties by the auditors

Operational Status of the System to Ensure the Appropriateness of the Company’s Operations
Compliance Initiatives(FY2021)

The Company established an annual compliance program（"theInitiatives for Ensuring Appropriate and Efficient
Business Execution

Non-audit services at the Company involved tax-related outsourcing and others.

program") and confirms the status of progress through the

In addition to regular Board of Directors meetings held each month,Non-audit services at consolidated subsidiaries involved tax-related outsourcing and others.

Compliance Committee, which convenes four times a year. In

the Company also holds extraordinary Board of Directors meetings

the program, regular compliance training for employees andas required to ensure effective decision-making and the oversightNon-audit services at the Company involved tax-related outsourcing and others.

the distribution of compliance-related news ensure thoroughof business execution. We are also striving to ensure efficiency, for

Non-audit services at consolidated subsidiaries involved tax-related outsourcing and others.

compliance, including severing any ties with anti-social forces.

example by consolidating common operations in the Group to aCompliance training is also separately provided for officers.

shared service company.

(FY2022)Compensation for Other Important Audit Attestation Services
None.

Policy for Determining Audit Fees

In addition, the internal reporting system or Compliance Hotline
ensures prompt detection and resolution of issues as well as toInitiatives to Ensure Appropriate Group Operations

protect the whistleblower. Reports are regularly made to the Board

The Company’s subsidiaries apply for approval and make reports

of Directors concerning the status of operations and reporting.

on important issues based on the Regulations for Business

Moreover, since FY2018, we added an independent outside contact,

Management of Affiliated Companies. Furthermore, the Corporate

the consent of the Audit & Supervisory Board in accordance with

Reasons the Audit & Supervisory Board Gave
Consent to Compensation of the Accounting
Auditoras well as one female manager as an internal contact, with the aim

Audit Department conducts audits with appropriate intervals andlaws and regulations and in consideration of such factors as the

The Audit & Supervisory Board performs necessary checksof improving the effectiveness of the internal reporting system.

Business Planning and Management Department regularly provides

size and characteristics of the Company and the number of days

regarding the details of the audit plan of the Accounting Auditor,

In FY2022, we provided training related to the Act on the Protection

guidance to the subsidiaries.

spent for the audit.

the performance status of accounting audit duties and the basis forof Personal Information and the Whistleblower Protection Act,

Companies that have recently become subsidiaries receive

calculating compensation estimates, and has given consent for theamong other laws and regulations.

individual guidance on areas including risk management based on

Audit fees for the certified public accountant are determined withcompensation paid to the Accounting Auditor.

Environmental Initiatives

Category

FY2022Social Initiatives

FY2021

Corporate GovernanceCompensation for Audit by a Certified Public Accountant, etc.

External Evaluation

Details of Audit Fees, etc.

Our Approach to Sustainability

Corporate Governance Initiatives

the Company regulations.

quarter and conducts appropriate risk management in response

Initiatives to Ensure the Effectiveness of Audits
by the Audit & Supervisory Board Members

The Company’s Risk Management Committee convenes every

Status of Internal Audit
The Corporate Audit Department which reports directly to thesubjected to the audit.

to fluctuations in risk by assessing the predetermined monitoring

The Company has an Audit & Supervisory Board, which meets once

President conducts internal audit from a position independent

Additionally, the Corporate Audit Department strives to enhance

items. We also conducted two Business Continuity Plan (BCP) drills

a month in principle, to make decisions on, make reports, andfrom other business activities. It formulates internal audit basic

audits and improve the effectiveness of internal controls by

in FY2022 as part of our BCP preparedness. In order to establish a

discuss important issues related to auditing. In addition, the Audit

plan based on the Corporate Audit Regulations for the Board

reporting audit results to Audit & Supervisory Board members

system enabling more effective response procedures within our BCP,

& Supervisory Board members ensure the effectiveness of audits byof Directors' resolution. Then the Corporate Audit Department

and accounting auditors, as well as exchanging opinions withmembers of the emergency response headquarters as well as some ofattending various meetings and reviewing the minutes of meetings.

systematically conducts internal audits in accordance with theeach other. The President, who oversees the Corporate Audit

their substitutes took part in the training.

The Audit & Supervisory Board Office was established to create

internal audit basic plan and the results including findings are

Department, reports important matters related to the internala system for promptly responding to requests from Audit &reported to the President. The feedbacks are also provided to those

audits regularly to the Board of Directors.

Supervisory Board members.

110 Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

Efforts to Manage the Risk of Losses

Hulic Co., Ltd. Sustainability Book 2023 111

Corporate Governance Initiatives

Business Continuity Initiatives for Disasters●Number of Fund ALM Committee meetings: 17 meetings (12 regular meetings, 5 special meetings)●Number of BCP drills: 3 times●Number of inspections of stockpiled food: 4 times●Number of inspections of stockpiled goods: 1 time

Risk Management Structure

Hulic is a real estate company that engages in development,

safety, environmental performance, and convenience. We havereconstruction, and operation of office buildings etc. primarily

established various emergency and disaster scenarios for which wein Tokyo 23 wards. We are constantly working to generate newhave created measures to improve the structural performance ofadded value by offering properties that are superior in terms ofour buildings as well as operational and management aspects.

Establishment of the Basic Plan for Business Continuity
Our Basic Plan for Business Continuity defines the framework

working with industrial physicians

and method for continuing important business functions

to formulate response policies andwhile minimizing damage to business assets in the event of an

encouraging employees to work from

Environmental Initiatives《Results in FY2022》 ●Number of Risk Management Committee meetings: 4 times

Business Continuity Approach for Disasters

emergency, such as a metropolitan epicentral earthquake. We havehome (we expanded eligibility for

Hulic recognizes that appropriately managing risks of the Company

overall risks and discuss appropriate responses before reporting toalso created the BCP Manual outlining specific execution plansconventional work-from-home systems

and its affiliates is one of its most important management

the Board of Directors. The Board of Directors resolves importantand have thoroughly communicated the contents of the manual towhich were previously open only tochallenges, and has set up a structure with the Board of Directors

matters related to risk management upon receiving reports fromofficers and employees.

employees providing childcare or nursing

at the top while working to make improvements. The department

the Committees. We also verify that our affiliated companies are

Further, a portable Disaster Response Manual was prepared andcare). We also made efforts to reduce

responsible for a particular risk stripe formulates risk management

implementing appropriate risk management by requiring them to

distributed to all employees. This manual contains information

the risk of infection during commuting

method, then appropriately monitor and control risk. The

submit accurate and pertinent reports. In these ways, the Board ofon preparedness for disasters, procedures for using emergency

by staggering work hours and promoting

status of risk management is reported to the Risk Management

Directors has an oversight of risk management of our Group.

messaging service and safety confirmation system, as well as

web conferencing, implemented thoroughCommittee and Fund ALM Committee regularly and as required

In 2022, the Fund ALM Committee held 5 special meetings ina flowchart showing how to act when a disaster occurs while

infection prevention measures for eachby the department in charge with its recommendations. The

addition to regular monthly meetings in order to closely monitor

commuting or during holidays.

employee and implemented a workplace

Risk Management Committee and Fund ALM Committee, whichinterest rates, securities and other market risks, in an effort to

Hulic implemented a variety of responses to COVID-19, including

vaccination program.

convene regularly, examine the reports and recommendations

flexibly respond to each risk scenario.

As of March 23, 2023

Chairperson: Chairpersonof the Board of Directors(non-executive director)

Chairman: President
Secretariat: Business Planning andManagement Department

Operational risk
System risk
Administrative risk
Legal risk
Human resources risk
Market risk

Chairman: President
Secretariat: Finance Department

Credit risk

Sustainability Committee(Deliberation / coordination only)
Chairman: President
Secretariat: Corporate Sustainability
Department(real estate market conditions)

Overseas investment risk
Market risk

Matters related to climate change

Coordination & Collaboration

Audit & Supervisory Board

112 Hulic Co., Ltd. Sustainability Book 2023

Internal audit

Corporate Audit Department

in disaster prevention visited the Company and held a disastersystem, and provides training on communication and information

preparedness seminar, which focused on ways to reduce thegathering among other things. This serves to reaffirm theimpact of disasters inside and outside the home. The seminar

importance of business continuity for executives and employees astaught practical skills such as how to stop bleeding and immobilize

well as standards of behavior related to disaster countermeasures.

an injury, among other first aid techniques.

drill, and work to build a more practical
BCP system by reflecting these issues

sectional cooperation with externalorganizations including design
companies, construction companies,
BCP drill

Disaster preparedness seminar

An exhibit of emergency supplies

Facilities and Stockpiles for Sustaining Business Operations
capabilities of our head office functions during an emergency. The following measures(assessment and management of risks and opportunities)
Audit

headquarters, verifies operation of the safety confirmation

We are proactively carrying out measures to strengthen the business continuity

Liquidity risk
(related to financial institutions)

In 2022, instructors from the Japan Red Cross Society specializing

We also established a cross-(interest rates, foreign exchange, securities)

Credit risk

continuity of real estate business.

drill tests processes of establishing an emergency response

in a revised BCP manual.

Tangible fixed assets risk

Fund ALM Committee

management companies as well as elevator companies to ensure

BCP drill based on the Basic Plan for Business Continuity. The

Furthermore, we analyze and evaluate the issues identified in the

Affiliated companies

Board ofDirectors

President, Representative Director

ReportRisk Management
Committee

Verification

Oversight

Managed by Finance
Department

Report/Recommendations

ReportDeliberation/coordination anddecision/report on risk
management

Management/reporting/recommendations related to risk
management conducted bydepartments in charge

Hulic reconfirms basic responses against disaster through annual

have been taken at the Hulic Head Office Building.
1.Adopts earthquake-absorbing structures that enable building functions to operate
even during an earthquake with a seismic intensity of 7 level
2.Features emergency generators that can operate continuously for up to six days
3.Secures food and drinking water to last more than seven days

Sustainability Data

Risk Management Structure Chart

Corporate Governance

Review and Improvement of the Basic Plan for Business Continuity

provided by the departments in charge of risk management, assess

Resolution of importantmatters related to risk
management

Social Initiatives

Pursuant to the Basic Rules of Risk Management, we manage various risks related to the Hulic
Group's businesses, which include operational, market, liquidity, and credit risk, among others.

External Evaluation

Fundamental
Approach

Our Approach to Sustainability

Risk Management

Emergency generator

Hulic Co., Ltd. Sustainability Book 2023 113

Fundamental
Approach

Hulic has established Basic Stance outlining its approach for achieving Corporate Philosophy
and the Basic Principles of Corporate Conduct, which clarifies the Basic Stance. Additionally, theCompliance Manual, which reflects changes in business environment and social trends, stipulates
actions that must be followed commonly in the Hulic Group in everyday business execution. As
the basis for promoting compliance, we are inculcating Compliance Manual to all employees.
Each and every employee will strive to fulfill the trust of every stakeholder and fulfill Hulic's
social responsibilities by complying with applicable laws and regulations, and company rules aswell as engaging in business activities based on a high standard of ethics.

《Results in FY2022》 ●Compliance trainings for all officers and employees
Number of trainings conducted: 5 times
Number of dissemination of compliance news: 12 times

Compliance Promotion Mechanism

Earthquake Resistance Performance of Buildings
As an earthquake-resistant initiative, Hulic is working on

resistance standards by equipping them with the most suitabledevelopment, reconstruction, new acquisition and seismic

structure type we adopted for the various conditions of thereinforcement of buildings which aim to build a leasing portfolio

In accordance with the Compliance Rules, we have built away to build an effective compliance system that matches theCompany-wide system composed of the Board of Directors at theCompliance Rules set by each company. Hulic receives applications

top, the Compliance Committee, the senior executive managing

and reports on a regular basis and, as required, on the status of

officer in charge of compliance, and compliance officers of eachcompliance at each company, which improves our understanding

department. In addition, affiliated companies under managementof the situation and enables an appropriate response, whenby the Company are monitored and managed in a centralized

necessary.

Board of Directors

Compliance Program

The Board of Directors makes decisions on the issues discussed at the

The Compliance Committee formulates a compliance program as anCompliance Committee and receives reports from the Committee regarding

implementation plan to promote compliance, on a Company-wide basis. The

important matters for compliance.

results of the program are reported to the Compliance Committee. Moreover,affiliated companies create compliance programs in the same manner andCompliance Committee

report progress and achievements to the Company. Moreover, the contents

Headed by the President, the Compliance Committee convenes four times aof “Basic Principles of Corporate Conduct” and “Our Code of Conduct” aredevelopment building from earthquake-absorbing, earthquake-

year, in principle.

reviewed as necessary.

of 100% highly earthquake-resistant buildings. Our earthquake

damping and earthquake-resistant structures. Additionally, we also

The Committee deliberates on important matters related to compliance, such as

resistance standards, stricter than those in the Building Standards

stockpile water, set up a drainage system, and install emergency

Act, are adopted for all the buildings we develop and reconstruct,back-up generators that can generate power continuously forincluding offices, commercial facilities, hotels, Japanese-style inns,

three days in our buildings. On the other hand, we also conduct

residential homes, and others. Our standards ensure building

the necessary seismic reinforcement and screening to maintain theperformance that can safeguard human life and enable continued

earthquake resistance of its buildings other than we develop anduse of the building with post-earthquake repair in the event ofreconstruct to a level that can withstand earthquakes of seismic

an earthquake with a seismic intensity of 7 level. In addition, we

intensity 7 level.

revisions to the Compliance Rules and the Compliance Manual, and formulationof a compliance program. The Committee also identifies and makes decisions
to improve compliance, including information management.

External Evaluation

Compliance Promotion Frameworkensure that its new office buildings meet the highest earthquakeWEB

Environmental Initiatives

Compliance

Social Initiatives

Diagram of Hybrid Structure Model

Corporate Governance

Maintaining Functions during a Disaster(Hulic Head Office Building)

Our Approach to Sustainability

Corporate Governance Initiatives

Framework for Collaboration and Cooperation with Related Parties and Business Partners
https://www.hulic.co.jp/en/sustainability/social/dealings/#anc4

In November 2013, Hulic's business continuity framework

and business continuity programs. At the same time, Hulic received(highlighted above) was recognized with a DBJ BCM rating froma favorable loan based on this rating. This marks the first time thatthe Development Bank of Japan. The decision for the rating, thea company from the real estate industry has received the highest

highest from the Bank, praised Hulic for our disaster prevention

rating from Development Bank of Japan.

Sustainability Data

Hulic was the First in the Real Estate Industry to Receive the Highest Rating of DBJ BCM

Summary of the DBJ BCM Rating:
The DBJ BCM rating was established by the Development Bank of Japan (DBJ) and recognizes companies with particularly noteworthy business continuity management(BCM). The rating is based on a comprehensive evaluation using tangible and intangible aspects of a company's BCM initiatives, including its ability to quickly restore
operations following a natural disaster.
*1 Assigned to each department to promote compliance*2 Assigned to each department to assist the Compliance Officer

114 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 115

Conduct, the Compliance Manual stipulates the following items

1.Respect human rights and prohibit

Our employees are encouraged to report directly to the internal

discrimination and harassment

or external Compliance Hotline when they consider it unlikely

Targets

that appropriate corrective actions will be implemented after

Officers and employees (including temporary and/or part-time staff,

as rules for promoting compliance by all officers and employees of

2.Comply with laws and rules

the Group.

3.Conduct business in a faithful and fair manner

In addition, we make sure that everyone understands the

4.Manage information appropriately

Compliance Manual and actively puts the principles into practice

5.Adhere to insider trading regulations

by providing compliance training and disseminating compliancerelated information.

they consult with the compliance officers of their departments
on matters involving compliance issues, or when they are

7.Be considerate of environmental conservation

nature of the issues involved.

by the Whistleblower Protection Act, human rights violations, bribery

8.Maintain and encourage the best communication possible

The direct report to the Compliance Hotline can be made onor other forms of corruption, non-compliance with labor issues,

9.Respect intellectual property rights

issues including human rights violation, corruption, bribery andviolations of applicable laws and regulations related to the various

harassments, etc. Compliance Hotline is made known to all Group
employees through compliance training.
Reports received by the Hotline internal contacts will trigger a fact-

Increasing Compliance Awareness Through Training

finding investigation and provide feedback to the whistleblower

We regularly provide compliance training on themes thata month on our intranet to supplement the training. Other related

correspond with the Compliance Manual, including prohibiting

training include training for new hires and mid-career employees asbribery and handling gifts and entertainment, preventing

well as Group-wide training for newly appointed executive officers.

corruption such as ensuring transparency and rationality intransactions, intellectual property rights, insider trading, andneeded. We also provide compliance-related news and Q&As once

types of harassment and violations of the Company code of conduct,
are suspected.
Whistleblower protection
Reports can be made anonymously. The whistleblower’s privacy isrespected, and they will not be treated unfavorably because of thereport.

by the external contacts (designated lawyers) will be handled by

Response when a report is madethe lawyer-in-charge, who informs the internal contacts of the

When a report is made, we investigate the facts and respondwhistleblower’s report, with the in-house contact conducting

promptly while giving due consideration to the privacy of the

any necessary fact-finding investigations, the results of which arereporter.

reported to the lawyer-in-charge. Based on the findings of thisFrequency:	Conducted 5 sessions (four times for all

investigation, the lawyer-in-charge will provide the whistleblower

employees, once for officers), dissemination of

In the event that violations of compliance, including cases covered

about the process details and related matters. Reports received

Compliance Training Sessions in FY2022

in the Compliance Manual, we also provide real estate industryspecific training on important themes and hold discussions, as

Target matters

uncomfortable consulting with compliance officers due to the

11.Ensure transparency and reasonableness of transactions

compliance among all employees. In addition to training on themes

business partners.

6.Avoid involvement with anti-social forces

10.Prohibit bribery, and rules concerning gifts and entertainments

severing all relations with anti-social forces, to raise awareness ofetc.) and retirees who have retired within one year and employees ofwith feedback.

When a report is made in writing or by e-mail, the Hotline willpromptly notify the reporter that the report has been received.
Subsequently, the whistleblower’s point of contact will consider thenecessity of an investigation in fairness and sincerity, and in principle,

Environmental Initiatives

Pursuant to Basic Principles of Corporate Conduct and Code ofCompliance Hotline

Social Initiatives

Compliance Manual

Our Approach to Sustainability

Corporate Governance Initiatives

notifies the whistleblower of future measures.

compliance-related news 12 times
No. of participants: All employees (including temporary staff)

General Manager of Human Resources Department, Joint General Manager of Human Resources Department, General Manager of Legal &measures and report to the Company.

violation of applicable laws and regulations or Hulic’s code of● Compliance violations regarding Hulic businesses andconduct, the issue is immediately reported to a complianceservices and means of transaction (FY2022): 0 incidents

officer or to the department in charge of compliance and the・N umber of violations of laws and regulations and payment ofsenior executive managing officer in charge of compliance by afines: 0 incidents

compliance manager. The facts are investigated as necessary and・N umber of violations or suspected violations of Hulic Company

necessary measures are taken to determine the causes and prevent

rules: 0 incidents

recurrence. Hulic Group companies also implement the similar

Compliance Department (Chief Compliance Officer); a female manager contact is installed
External contacts:
Attorney’s offices; legal farm is installed aside from our legal counsel
All Group companies have established report reception systems similar to the Company.

Compliance through Outsourcing Contractors
As for outsourcing by the real estate business division, we have

performance and their ability to execute operations, themade fair trades based on “rules for real estate outsourcing

effectiveness of their business execution system and the clarity ofmanagement,” respecting relevant laws and regulations as well as

the procedures, the appropriateness of the operation management

instructions by administrative organizations.

system, possible relationships with anti-social forces, and other

When selecting an outsourcing contractor, we make aitems.

comprehensive decision by carefully checking their past

External Evaluation

When a compliance issue (or suspected) is detected, such as

Corporate GovernanceInternal contacts:

Treatment of Compliance Violations

The Compliance Manual states that no anti-social activities will

implementation at the organizational level, and a range of

be tolerated and that all relationships with anti-social forces

measures have been introduced to severing any ties with anti-social

must be severed. As a concrete measure to promote severing

forces, including creating inhouse procedures, effective ways to

any transactions with anti-social forces, we established Rules for

ensure employee safety, and coordination with specialist externalCounteracting Anti-social Forces, which we are now practicing.

organizations.

In addition, the Legal & Compliance Department promote

116 Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

Severing Ties with Anti-Social Forces

Hulic Co., Ltd. Sustainability Book 2023 117

Corporate Governance Initiatives

Our Approach to Sustainability

partners, including public agencies such as the government and local government.

Hulic considers compliance to be one of its most important management matters. Hulic
Fundamental
Approachensures transparency, complies with applicable laws and the spirit of the law, and pays
taxes appropriately and fairly in all countries where we do business.

《FY2022 Results》 ●Political contributions: none

●Expenses for corruption related fines, penalties or legal settlements: none
●Number of employee reprimands or dismissals due to actual or suspected corruption: none

Tax Payment Policy
Hulic considers compliance to be one of its most important

ensures the transparency of transactions, including tax affairs,

We also strictly prohibit any bribery and clearly define prohibited

corruption and bribery.

management matters, complies with applicable laws andand in accordance with the spirit of law, pays taxes appropriately

activities specifically that lead to corruption and bribery in

Moreover, twice a year, we monitor whether each department

regulations and the spirit of the law, and engages in sincere andand fairly in all countries where we do business. Further, we will

the section prohibit bribery, and rules concerning gifts andis appropriately receiving business entertainment and gifts, andfair corporate activities that do not go against social norms. In

build relationships of trust with tax authorities in each country

entertainments of the Compliance Manual. In addition, we

confirm no bribery is accepted or received, and then identifies andline with our Compliance Manual based on the “Basic Principles

by increasing tax transparency without using tax planning or tax

conduct compliance training for all employees as appropriate toassesses the associated risks. In case of doubt, anyone can makeof Corporate Conduct” and “Our Code of Conduct,” Hulic

havens intended to avoid taxes.

build their awareness on prohibited activities such as giving gifts toa report to the Compliance Hotline. Once received, all reports are

public officials and excessive entertainment and make sure that ourhandled swiftly and appropriately.

employees are communicated of Hulic's policy on prohibition of

Policy for High-Risk Areas
prevention of money laundering, and prohibition of insider trading.

Board of Director Oversight
Financial reports such as the Company's consolidated financial

accounting auditor. Additionally, Audit & Supervisory Board

statements are submitted to the Board of Directors for approval inmembers receive reports and the Board of Directors responds

accordance with laws and regulations and the Company's Articles

promptly when the accounting auditor discovers fraud, or points

of Incorporation after they have been audited by an external

out inadequacies or issues including our tax affair.

including the prohibition of bribery, exclusion of anti-social forces,

Audit
Ernst & Young ShinNihon LLC conducts audits of the financial statements and internal controls as an Independent Accounting Auditor.

Initiatives for Fair Competition
We are thoroughly committed to our initiatives to ensure the transparency and rationality
Fundamental
Approachof transactions to make sure they are appropriate and fair so that no transaction harms
the interests of the Company or shareholders, or provokes any concern.

The Hulic Compliance Manual stipulates the following specific matters regarding the establishment of a fair competitive order.
●C ompliance with all applicable laws and regulations and internal

rules

Currently, our business and investment activities in countries otherand the United States. The Group's business bases are located only

than Japan are extremely limited, thus tax payments by Hulic Co.,in Japan. The amount of taxes paid by country was as follows.

Ltd. (non-consolidated), by country in FY2022 was 100% in Japan

Hulic Co., Ltd. (non-consolidated)●C ompliance to the arm's length transaction principles●R espect for intellectual property rights●P rohibition of bribery, and excessive entertainment and gifts●A ppropriate information management(JPY million)

FY2020●P rohibition of the provisions of benefits to shareholders●C ompliance with antitrust laws and related regulations●P rohibition of conflicts of interest

Tax Payments by Country

FY2021

FY2022

Japan

31,271

23,956

24,417

The U.S.

3

7

3

31,27423,96324,420Total

Corporate GovernanceWe conduct comprehensive checks in areas considered high risk,

Environmental Initiatives

Hulic prohibits any act or all suspicious act that leads to corruption with business

Sustainability Data

* Total current income taxes and deferred income taxes were counted.

External Evaluation

Fundamental
Approach

Tax Transparency

Social Initiatives

Initiatives for Anti-corruption

118 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 119

Corporate Governance Initiatives

Fundamental
Approach

We recognize that it is our social responsibility to effectively protect our information assets.
To protect these assets from various threats, we have established an information security
management system, and are ensuring that we operate and manage information assets
carefully based on information management rules that include rules on handling information.
Specifically, considering the expansion of cloud use, comprehensive measures including
connection control of devices and network, and monitoring of use logs are promoted at both
inside and outside of the company.

Fundamental
Approach

We strive to ensure appropriate and timely disclosure of information, and actively conduct
briefing sessions on financial results as well as investor meetings for individual investors. These
represent our efforts to achieve diverse forms of mutual communication.

Information Disclosure Policy
In accordance with the Disclosure Policy, we are aiming at fair,so that investors are able to understand more of our businesstimely and accurate information disclosure for shareholders andactivities. We also promptly disclose information which we believe

investors in order for them to make investment decisions.

to be helpful for the investors to make investment decisions on theand usage, managing them appropriately to ensure confidentiality,

Not only to comply with relevant laws and regulations, we actively

Company’s website, although they are not applicable to the timely

integrity and availability.

disclose management strategies and financial information, etc.

disclosure rules and relevant laws, etc.

Hulic categorizes information assets according to their importance

Information Security Management System

Specifically:● Organizational security control measures to appropriately implement andShareholders Return

regular inspections and audits, etc.
● Physical security control measures such as appropriate access control● Technical security control measures to ensure the appropriate management of

information assets
Confidentiality:Ensures only authorized persons can access information assets
Integrity:Protects the accuracy and completeness of information and processing
methods
Availability:Ensures authorized users have access to information assets when needed

We consider appropriately returning to our shareholders as apayout ratio in FY 2022 was 40.3%, we are targeting a dividend

management matter. Our basic policy is to provide stable dividends

payout ratio 40% or higher during the New Medium-Termpayment based on our business performance trend. The dividendManagement Plan (2023-2025).

WEB

Dividend Payments and Payout Ratio
https://www.hulic.co.jp/en/ir/stock/dividend.html

Social Initiatives

promote information management● Human security control measures such as education and training for employees,

Shareholder Incentives
Privacy Policy
to any claims or concerns regarding the handling of personal

support, we annually present the gift of a gourmet catalog to

we properly handle personal information in compliance with theinformation, and review and improve, as necessary, our provisions

shareholders with 300 shares or more from which they can choose

Personal Information Protection Law (the "Privacy Law") and otherfor the handling and safeguarding of personal information.

an item equivalent to JPY3,000. For those with more than three

relevant laws and guidelines, and take appropriate measures to

We did not identify any substantiated complaints concerning

years holding, we double the gift to two items worth JPY6,000 inensure that personal information is secure. We make efforts tobreaches of customer privacy and there were no significant

total from a catalog.

conduct training and education for our employees so that personal

incidents or cases regarding leakage of personal data in FY2022.

Corporate Governance

To show our appreciation to shareholders for their continued

In full respect of the importance of protecting personal information

information is appropriately handled. We immediately respondWEB

Environmental Initiatives

Information Security Management

Our Approach to Sustainability

Initiatives for Shareholders and Investors

Privacy Policy
https://www.hulic.co.jp/en/siteinfo/privacy.html

In addition to correspondences to shareholders issued semiannually,and English) are also

we post the latest topics through the Investor Relations site of ouravailable either live or on
recordings on our website.

We strive to disclose material corporate information that may

subsidiaries’ material information is consolidated by the Businesswebsite in a timely manner. E-mails are also sent to allow investors

affect investors’ investment decisions in a timely, accurate, andPlanning and Management Department, which makes a judgment

to receive information in more timely manner. Every time news

fair manner, in accordance with the Timely Disclosure Rules

as to whether the relevant information is subject to timely

about the Company is released, we send registrants by E-mail.

stipulated by the Tokyo Stock Exchange, as well as related laws anddisclosure. In such cases, the Legal & Compliance Department,(Only in Japanese) In the financial results briefing session, we

regulations. In this regard, to promote an accurate understanding

as the department in charge of management, strictly manages

make efforts to provide easy-to-understand presentations by using

and evaluation of the Company by all stakeholders, including

the information until disclosure. The Business Planning andPowerPoint visual materials. These briefing sessions (in Japaneseshareholders and investors, we have established Rules for DisclosureManagement Department serves as the secretariat for the Board

Control, as well as Rules for Insider Trading Management andof Directors and as the department in charge of affiliate company

Information Disclosure Management. In addition, while operating

management and works with Group departments to gather

in a manner that clarifies where responsibility lies, the Company’s

information. If such information is determined to be material,

officer in charge of disclosure centrally manages material

the Corporate Communications & Investor Relations Department

information regarding internal controls and financial information,

promptly handles the procedures for disclosure following approvalto ensure the comprehensiveness of information, as well as thefrom the Board of Directors.

timeliness and the appropriateness of disclosure.

In the case of emerging facts, procedures for disclosure are initiatedSpecifically, in the case of determined facts, material corporate

swiftly.

Sustainability Data

Disclosure Controls

External Evaluation

Enhancement of Various IR Tools

information pertaining to resolutions of the Board of Directors and120 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 121

Approaches at General Shareholders’ Meetings

Disclaimer:

The 93rd ordinary general meeting of shareholders was held atunderstand way, using image materials, etc. The childcare nursery

Hulic Head Office on March 23, 2023 with attendance of a lot

in the Head Office was opened to shareholders in order to enableof shareholders. In an effort to enliven the general meeting of

those with children to take part in the meeting without worry. We

shareholders, invitations to the meeting were sent out early, andwill strive to have shareholders more understand Hulic throughwe set up an electromagnetic voting method. In this meeting,communication with them.

we tried to explain about our business activities in an easy-to-

The inclusion of Hulic Co., Ltd. in any MSCI index, and the use

Morningstar, Inc., and/or one of its affiliated companiesof MSCI logos, trademarks, service marks or index names herein,(individually and collectively, “Morningstar”) has authorized

do not constitute a sponsorship, endorsement or promotion of

Hulic Co., Ltd. to use of the Morningstar Japan ex-REIT Gender

Hulic Co., Ltd. by MSCI or any of its affiliates. The MSCI indexes

Diversity Tilt Logo (“Logo”) to reflect the fact that, for theare the exclusive property of MSCI. MSCI and the MSCI index

designated ranking year, Hulic Co., Ltd. ranks in the top quintile

names and logos are trademarks or service marks of MSCI or itsof companies comprising the Morningstar® Japan ex- REIT

affiliates.

Gender Diversity Tilt IndexSM (“Index”) on the issue of gender

Our Approach to Sustainability

Corporate Governance Initiatives

and fiscal year) are held semiannually by Hulic's top management

investors.

mainly for institutional investors. We also conduct many one-on-one

Considering COVID-19,

meetings in Japan, through which we visit individual institutionalin 2022 we provided

investors to explain Hulic's business activities. Furthermore,

online IR meetings to ourwe have proactively rolled out IR activities overseas, visiting

overseas investors instead

institutional investors in Europe, the U.S., and Asia, etc. Throughof visiting them in person.

these activities, we endeavor to foster a deep understanding of

purposes. Hulic Co., Ltd. use of the Logo should not bebeen independently assessed according to the FTSE Blossom

construed as an endorsement by Morningstar of Hulic Co., Ltd.

Japan Index, and has satisfied the requirements to become aor as a recommendation, offer or solicitation to purchase, sell or

constituent of the FTSE Blossom Japan Index. Created by theunderwrite any security associated with Hulic Co., Ltd. The Index

global index provider FTSE Russell, the FTSE Blossom Japan Index

is designed to reflect gender diversity in the workplace in Japan,

is designed to measure the performance of Japanese companies

but Morningstar does not guarantee the accuracy, completenessdemonstrating strong Environmental, Social and Governanceor timeliness of the Index or any data included in it. Morningstar(ESG) practices. The FTSE Blossom Japan Index is used by a wide

makes no express or implied warranties regarding the Index orvariety of market participants to create and assess responsible

the Logo, and expressly disclaim all warranties of merchantability

investment funds and other products.

or fitness for a particular purpose or use with respect to theBriefing Session for Private Investors

Index, any data included in it or the Logo. Without limiting any

We are proactively working on IR activities to make ourselves better

activities that provide

understood by individual investors. We participate in seminars

us with opportunities toand fairs, etc. for individual investors to create opportunities forcommunicate directly

more individual investors to learn about us. We will promote IRwith individual investors.

FTSE Russell (the trading name of FTSE International Limitedof the foregoing, in no event shall Morningstar or any of its

and Frank Russell Company) confirms that Hulic Co., Ltd. has

third party content providers have any liability for any damages

been independently assessed according to the FTSE Blossom(whether direct or indirect), arising from any party’s use or

Japan Index, and has satisfied the requirements to become areliance on the Index or the Logo, even if Morningstar is notified

constituent of the FTSE Blossom Japan Sector Relative Index.

of the possibility of such damages. The Morningstar name,

The FTSE Blossom Japan Sector Relative Index is used by a wide

Index name and the Logo are the trademarks or services marks

variety of market participants to create and assess responsibleof Morningstar, Inc. Past performance is no guarantee of future

investment funds and other products.

results.

Selected as Indices on ESG Efforts
Hulic has continuously been selected in five indices as a company

governance (ESG). The Government Pension Investment Fund (GPIF)

who took excellent initiatives on environment, social anduses these five indices as benchmarks of ESG investments.

External Evaluation of IR Activities

Social Initiatives

Hulic among institutional

available for use by Hulic Co., Ltd. solely for informational

and Frank Russell Company) confirms that Hulic Co., Ltd. has

Corporate Governance

Briefing sessions on financial results (at the end of the 2nd quarter

FTSE Russell (the trading name of FTSE International Limited

Environmental Initiatives

diversity in the workplace. Morningstar is making the Logo

Briefing Sessions for Institutional Investors and Analysts

Hulic's website discloses timely and detailed information on
our various activities. In 2022, our website was selected as theRelations Co., Ltd.'s All Japanese Listed Company Website Ranking
2022. In addition, our website won the silver prize in Gómez IR Site
Ranking, and also won the Commendation Award in Internet IR

Sustainability Data

Award 2022 by Daiwa Investor Relations Co., Ltd.

External Evaluation“excellent website in all markets ranking” in Nikko Investor

122 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 123

Hulic has been selected for a constituent of the MSCI Japan ESG

each of the global industry classification standards (GICS®).

Taking proactive actions against sustainability- related risks such

independent assurance provider for the values included in our

Select Leaders Index and the MSCI Japan Empowering Women

The MSCI Japan Empowering Women Index (WIN) is comprised

as environmental issues including climate change, working

Integrated Report.

Index (WIN) by MSCI Inc.

of Japanese companies, chosen from the largest 700 Japaneseenvironment and human rights and contributing to SDGs are one

We will continue to disclose information on the progress of our

The MSCI Japan ESG Select Leaders Index is constructed bycompanies by market capitalization, with a high level of genderof Hulic's material management matters. We believe it is importantsustainability-related activities to the stakeholders while strive toselecting companies assessed as outstanding in terms of ESG

diversity in their workforces compared to sector peers classified by

to provide reliable information concerning our sustainability-related

improve quality of disclosure using PDCA cycle.

evaluations from companies that comprise the parent index (MSCI(GICS®).

activities. Figures marked with “ † ” have been guaranteed by an

Japan IMI Index), aiming to achieve market capitalization of 50% inExternal Evaluations
Included in FTSE4Good Index Series
Hulic has been a constituent company in the FTSE4Good Index

FTSE4Good Index Series
https://www.ftserussell.com/products/
indices/ftse4good

performance of companies demonstrating strong Environmental,

Disclaimer: The inclusion of Hulic Co., Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names
herein, do not constitute a sponsorship, endorsement or promotion of Hulic Co., Ltd. by MSCI or any of its affiliates. The
MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service

Disclaimer: FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hulic Co., Ltd.

Included in S&P/JPX Carbon Efficient Index

constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series

Hulic has been selected as a constituent of the S&P/JPX Carbon

while overweighting or underweighting

is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance

Efficient Index, which was jointly developed and released in 2018

those companies that have lower or higher(ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible

by S&P Dow Jones Indices and Japan Exchange Group (JPG).

levels of carbon emissions to the revenue

The S&P/JPX Carbon Efficient Index is designed to measure theand actively disclose information of carbon

performance of companies in the Tokyo Stock Price Index (TOPIX),

emissions.

investment funds and other products.

Corporate Governancehas been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a

Included in Blossom Japan Index Series
Hulic has been a constituent company in two indexes of theSR) focuses on companies selected by

Included in Morningstar Japan ex-REIT Gender Diversity Tilt Index

FTSE Blossom Japan Index Series. Created by the global index

FTSE Russell that have outstanding ESG

Hulic has been selected as a constituent of the Morningstar Japan

ensure equal opportunities

company FTSE Russell, the FTSE Blossom Japan Index is designed

initiatives, which includes outstanding

ex-REIT Gender Diversity Tilt Index (GenDi J). GenDi J is designed

to employees, irrespective ofas an industry neutral benchmark that reflects the performance

management attitudes toward risks andto emphasize the stocks of companies that have strong gendertheir gender.

of companies demonstrating strong environmental, social andopportunities of climate change.

diversity policies embedded in their corporate culture and thatgovernance (ESG) practices in Japan.
In addition, FTSE Blossom Japan Sector Relative Index (FTSE Blossom

WEB

FTSE Blossom Japan Index Series
https://www.ftserussell.com/ftse-blossomjapan-index-series-spotlight

Disclaimer: Morningstar, Inc., and/or one of its affiliated companies (individually and collectively, “Morningstar”) has authorized Hulic
Co., Ltd. to use of the Morningstar Japan ex-REIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for thedesignated ranking year, Hulic Co., Ltd. ranks in the top quintile of companies comprising the Morningstar® Japan ex-REIT

Disclaimer: FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hulic Co., Ltd. has

Social Initiatives

marks of MSCI or its affiliates.

Social and Governance (ESG) practices.

Gender Diversity Tilt IndexSM (“Index”) on the issue of gender diversity in the workplace. Morningstar is making the Logo

been independently assessed according to the FTSE Blossom Japan Index, and has satisfied the requirements to become aavailable for use by Hulic Co., Ltd. solely for informational purposes. Hulic Co., Ltd. use of the Logo should not be construed

constituent of the FTSE Blossom Japan Index. Created by the global index provider FTSE Russell, the FTSE Blossom Japanas an endorsement by Morningstar of Hulic Co., Ltd. or as a recommendation, offer or solicitation to purchase, sell orIndex is designed to measure the performance of Japanese companies demonstrating strong Environmental, Social andunderwrite any security associated with Hulic Co., Ltd. The Index is designed to reflect gender diversity in the workplace inGovernance (ESG) practices. The FTSE Blossom Japan Index is used by a wide variety of market participants to create andJapan, but Morningstar does not guarantee the accuracy, completeness or timeliness of the Index or any data included in it.

assess responsible investment funds and other products.

Morningstar makes no express or implied warranties regarding the Index or the Logo, and expressly disclaim all warranties

External Evaluation

Series. The FTSE4Good Index Series is designed to measure theWEB

Our Approach to Sustainability

Included in MSCI Japan ESG Select Leaders Index and MSCI Japan Empowering Women Index (WIN)Third-party Assurance

Environmental Initiatives

External Evaluationof merchantability or fitness for a particular purpose or use with respect to the Index, any data included in it or the Logo.
liability for any damages (whether direct or indirect), arising from any party’s use or reliance on the Index or the Logo, evenhas been independently assessed according to the FTSE Blossom Japan Sector Relative Index criteria, and has satisfied theif Morningstar is notified of the possibility of such damages. The Morningstar name, Index name and the Logo are therequirements to become a constituent of the FTSE Blossom Japan Index Series. The FTSE Blossom Japan Sector Relative index

trademarks or services marks of Morningstar, Inc. Past performance is no guarantee of future results.

is used by a wide variety of market participants to create and assess responsible investment funds and other products.

124 Hulic Co., Ltd. Sustainability Book 2023

Accordingly, Hulic has been continuously included in all six indicesJapan Sector Relative Index, MSCI Japan ESG Select Leaders Index,

selected by the Government Pension Investment Fund (GPIF) for

MSCI Japan Empowering Women Index, S&P/JPX Carbon Efficient

ESG investment indices: FTSE Blossom Japan Index, FTSE Blossom

Index and Morningstar Japan ex-REIT Gender Diversity Tilt Index.

Sustainability Data

Without limiting any of the foregoing, in no event shall Morningstar or any of its third party content providers have any
Disclaimer: FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Hulic Co., Ltd.

Hulic Co., Ltd. Sustainability Book 2023 125

Survey replaced their Environmental Management Survey in which

DBJ Green Building certification system is a program to comprehensively assess the building’s environmental

conducted annually by the Nikkei, is designed to rate companies

we have been ranked 1st in the real estate/warehouse industry

performance, crime and fire prevention, user comfort and convenience, cooperation with stakeholders, etc. by thethat are aligning the Sustainable Development Goals of thefor nine consecutive years until 2019. The survey addresses from

Development Bank of Japan Inc. Hulic obtained the highest certification of “5 Stars” for Hulic Head Office Building andUnited Nations to management of the companies and pursuingfour themes, i.e., SDGs strategy/economic value, social value,

three buildings in reconstruction projects including Hulic Shinjuku Building, and one building was granted “4 Stars.”

corporate value increase by solving environmental, economic andenvironmental value and governancesocial issues through business activities. We have participated inand gather information by sending

the survey conducted in 2022 with the rest of approx. 890 listed

questionnaires to the participant

Approaches to JHEP Certificationand non-listed Japanese companies and have received a 4-starcompanies and from publicly available

JHEP is a program to evaluate and certify activities that contribute to conservation and restoration of biodiversity, whichrating (deviation value of 60 to 65). The Nikkei SDGs Management

data sources.

was established and is operated by Ecosystem Conservation Society-Japan. Hulic carries out efforts to conserve and restore
local vegetation as part of its development and reconstruction projects for Company-owned properties from the standpointof safeguarding biodiversity. Our approach to biodiversity and many projects have received the JHEP certification.

Recognized as an A List Company in the CDP Climate Change Assessment
Hulic has been recognized as an A List Company in the Climate

voluntary responses to the CDP Climate

Change 2022 Questionnaire conducted by CDP, a not-for-profit

Change Questionnaire are assessed andReceived "Platinum Kurumin" and "Kurumin" Certificationsorganization that evaluates environmental disclosure. An A-listscored, with A representing the highest

In regard to the support for raising the next generation, Hulic aims at a higher level than the legal

company actively and effectively works to mitigate the risks caused

score, at four levels: disclosure, awareness,requirements and has established various in-house measures. We are working to develop a workby climate change. In the climate change assessment, companies'

management, and leadership.

environment in which employees can take childcare leave more easily in addition to providing economic
support to employees who take the leave. In recognition of our efforts, Hulic has received a certification of“Platinum Kurumin” from the Minister of Health, Labour and Welfare as the Company supports employees

Approved by The SBT Initiativein raising the next generation at a distinctive level. We also received “Kurumin” certification (in 2010, 2017 and 2020).

initiative)* as consistent with levels required to meet the goals of
the Paris Agreement.

WEB

Certified as Health & Productivity Management Outstanding Organization(Small and Mediumsized Enterprises Category)* Science Based Targets initiative (SBTi)
A collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), and is an international initiative that
promote private sector to develop GHG emissions reduction targets in line with Paris Agreement (long-term temperature goal is to keep the rise in mean global temperature to well
below 2°C and limiting below 1.5°C above pre-industrial levels), then validate and approve targets submitted to them. For approval, GHG emissions need to comply with GHG Protocol
accounting and reporting standards, and near-term reduction targets need to be set between 5 and 15 years from the date of target submission to SBTi.

Hulic was certified as a Health & Productivity Management Outstanding Organization in 2021 (Small andMedium-sized Enterprises Category) for the fifth consecutive year from 2019 in recognition of our healthand productivity management initiatives. The award has been promoted by the Ministry of Economy, Tradeand Industry in conjunction with the Nippon Kenko Kaigi to advance health and productivity.

ZEB Ready buildings have an envelope with advanced thermal

Hulic Co., Ltd. obtained ZEB

Corporate Certification for Eruboshi Based on the Act on Promotion of Women’s Participation
and Advancement in the Workplace Obtained

insulation, highly efficient energy-saving equipment, and have a

Ready certification for the

As a result of the formulation of the Action Plan based on thesystem/ onsite childcare and nursery

50% or higher reduction in primary energy consumption compared

Sendagaya Center Building

Act on Promotion of Women’s Participation and Advancement infacilities), with the aim of ensuring thatwith the benchmark standard.

Reconstruction Project in 2023.

the Workplace, Hulic attained the highest rank in the “Eruboshi”

female employees will be able to continue

certification presented by the Minister of Health, Labor andplaying an active role in the company after

Welfare in 2016, in recognition of the Company as an outstanding

childbirth and while parenting.

company in the implementation of initiatives to promote female

Since we have been facilitating in creating a corporate culture

Acquired ZEB Ready Certification

Sendagaya Center Building Reconstruction

CASBEE Assessments“S,” in the CASBEE Real Estate Evaluations,empowerment at the workplace. We have put effort into creatingwhere employees respect the diversity among them and can(CASBEE) is a method—researched and developed by the Japan

which assesses environmental performance inan environment where diverse human resources can performperform best, we were able to meet the criteria for the certification

Sustainable Building Consortium—for extensively evaluating andbuildings that have been in operation for at(diversity management), especially into establishing a top-classestablished by the Ministry of Health, Labour and Welfare andrating the environmental performance of buildings, districts, andleast one year since being completed.

system for nurturing the next generations (a childcare support

obtain the highest rank certification.

cities, etc. from diverse perspectives. A certification (rating) is

Two of our office buildings, the Hulic

provided based on the results of these evaluations.

Headquarter Building and Hulic JP Akasaka Building, also acquired

Hulic Logistics Kasai, our first logistics center proprietary developed“S” ratings, the highest for the CASBEE Wellness Office Evaluation,

Recognized for Inclusion in Diversity Management Selection 100

and completed in May 2022, received an “A” rating in the CASBEE

recognizing the performance of these building and the hard work

Diversity Management Selection 100 is a commendation system

From the standpoint of empowering

Buildings (New Construction) Evaluation in recognition of ourneeded to maintain and improve employee health and comfort andrun by the Ministry of Economy, Trade and Industry since 2012, tofemale employees and helping employees

comprehensive environmental performance. Hulic Kasai Rinkai

to improve intellectual productivity when working, as well as safety

recognize companies of various sizes and from different sectors

improve their professional skills, Hulic is

Building, located on the same site, attained the highest rating,and security.

for their proactive initiatives towards diversity management asworking to transform our organizationala contributing factor behind the economic growth of Japan. By

structure, develop an employee-friendly work environment, andcommunicating best practices, this aims to broaden the fields thatfurther enhance our benefit programs. We believe the achievement

encourage diversity.

was the result of our collective efforts.

126 Hulic Co., Ltd. Sustainability Book 2023

Sustainability Data

Comprehensive Assessment System for Built Environment Efficiency

Corporate Governancereduction targets approved by SBTi (the Science Based Target

Greenhouse Gas Emissions
Reduction Targets
https://www.hulic.co.jp/en/
sustainability/ecology/warming/roadmap.html

External Evaluation

Hulic has had its near-term (by 2030) greenhouse gas emissions

Environmental Initiatives

Approaches to DBJ Green Building Certification

The Nikkei SDGs Management Survey, a survey that has beenSocial Initiatives

Received a 4-star Rating in the Nikkei SDGs Management Survey

Our Approach to Sustainability

External Evaluation

Hulic Co., Ltd. Sustainability Book 2023 127

guaranteed by an independent assurance provider for the values included in our Integrated Report.

Number of properties
Water Intake (Water Consumption)*

2017

2018

2019

2020

2021

2022

property

51

55

58

59

55

220

207

3

401

436

420

437

346

1,487

1,855†

m3/m2

0.83

0.80

0.78

0.65

0.61

0.86

1.00

thousand m

Water Intake (Water Consumption) intensity

Greenhouse gas emissions(t-CO2e)

2019

2020

2021

2022

Scope 1

14,931

10,49011,36913,151†

Scope 2 (Market based)

25,067

18,52917,473

20,966†

Subtotal Scope 1 and Scope 2

39,99729,01928,842

34,118

1 Purshased goods and services

18,30324,72324,497

33,1222 Capital goods

20,73039,142

19,63830,727

3 Fuel and energy related activities

6,597

5,132

5,238

6,112

—

—

—

—

2,276

2,296

1,419

3,016

6 Business travel

244

251

194

176

7 Employee commuting

455

430

283

307

8 Upstream leased assets

—

—

—

—

9 Downstream transportation and distribution

—

—

—

—

10 Processing of sold products

—

—

—

—

36,98488,28043,31533,033

193

484

1,005

712

143,225

109,328

115,114132,191

14 Franchises

—

—

—

—

15 Investments

—

—

—

—

Subtotal Scope 3

229,006

270,066

210,703239,397 †Total Scope 1, 2 and 3

269,004

299,085

239,545

273,514

Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
* Beginning in FY2021, Hulic’s fixed assets are covered, excluding properties under development and land for for lease (220 properties in FY2021, 207 properties in FY2022). Note that theamount of hot spring water used at hot spring inns is not included.
The boundary from FY2016 to FY2020 is properties with a total floor area of 3,000 m2 or more, excluding buildings where bank branch is the sole tenant, as well as sectional and sharedownership properties and real estate for sale.

Waste disposal(t)

Scope 32016

4 Transportation and delivery (upstream)
5 Waste generated in operations

11 Use of sold products
12 End-of-life treatment of sold products
13 Downstream leased assets

Number of properties (property)

2017

2018

2019

2020

2021

2022

7

8

9

7

6

6

7

Paper

240

296

348

102

52

61

47

Bottles, cans, plastic bottles

28

29

80

76

37

36

39

Total

268

325

428

179

89

97

85

Other general waste

195

218

629

576

309

302

357

Industrial waste

61

68

109

149

104

103

96

Total

256

286

738

725

414

405

454

Total of waste that can be recycled and wastethat cannot be recycled

524

611

1,166

904

502

502

539 †

Waste disposal intensity (kg/m2)

8.42

7.46

8.11

6.98

3.97

3.97

4.12

Waste thatCan beRecycled
Waste that
Cannot be
Recycled

Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.
The boundary is Hulic’s head office building and buildings where the head offices of Group companies are located.
From FY2020, we calculated total waste disposal at certain properties in the boundary by using weight conversion factors based on actual measurements.
The results increased from FY2018 as Porte Kanazawa, a large commercial building, has become subject to aggregation since.

Corporate Governancebelieve it is important to provide reliable information concerning our sustainability-related activities. Figures marked with “ † ” have been

2016

Technical measures (such as longer life design, etc.) applied to reduce construction waste(property)—：Not applicable.
Note: Figures marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

Total energy consumption

2020

2021

2022

Number of properties

8

8

4

Implementation rate

100%

100%

100%

The percentage of properties completed in the given year that used technologies and measures that contributed to a reduction in waste as well as raw materials and other resources basedon the Hulic Guidelines for Longer Life.
We monitor this figure from FY2020 as KPIs.
(MJ)

Number of greening properties

2019

2020

2021

2022

Scope1

262,247,523

204,332,023

212,257,609

251,171,730

Scope2507,869,906

395,386,960

391,691,676

442,998,170

Number of properties

2

6

11

4

8

8

4

Total

770,117,429

599,718,983

603,949,285

694,169,900

Number of greening properties

1

5

9

3

5

6

3

(property)

2016

2017

2018

2019

2020

Environmental Initiatives

Unit

We will appropriately manage environment-related data and disclose information while executing environmentally friendly management. We

Social Initiatives

Water Intake (Water Consumption)

2021

2022

External Evaluation

Environmental Data

Our Approach to Sustainability

Sustainability Data

RE100 progress rate
2020
0.5%

2021
13.5%

2022
47.0%

Note: T he RE100 progress rate is calculated by dividing the total amount of power generated by Hulic-owned solar photovoltaic equipment in the year by the projected total amount of electricity usedat the Hulic head office building and on the floors occupied by Group companies in 2024.

Number of renewable energy systems installed in development and reconstruction projects
2016

2017

2018

2019

2020

(property)

2021

2022

Number of properties

2

6

11

4

8

8

4

Number of renewable energy
systems installed in development
and reconstruction projects

3

4

6

4

3

8

3

Sustainability Data

The number of completed properties in each year among those imposed with greening obligation (excludes real estate for sale).

The number of propaties installed renewable energy facilities completed each year.

128 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 129

Sustainability Data2022

We appropriately manage social-related data and disclose information. With the aim of enhancing the credibility of our disclosure, figuresproperty

10

4

7

9

6

SOx emissions

kg

1,620

60

142

826

770

NOx emissionskg

11,527

1,334

1,649

6,778

5,132

VOC emissions

kg

157

124

0

0

0

marked with “ † ” have been guaranteed by an independent assurance provider for the values included in our Integrated Report.

Human Capital-related Data
Male/Female*Figures are for developed and constructed buildings for which data were collected in each year.

Number of employees (person)(nonconsolidated)

Raw material purchase amount

Number of employees (person)(consolidated)
Unit

Number of properties

2018

2019

2020

2021

Average annual salary (JPY million)

2022

property

10

4

7

9

6

t

12,971

1,660

5,507

5,112

9,669

Steel purchased amount
Concrete purchased amount

Total

t

—

—

—

38,26940,711

Pier purchase amount

m3

353

58

106

261

163

Plywood purchase amount

m3

1,397

270

204

552

415

Timber purchase amount

m3

1,146

299

335

375

174

Average service period (years)
Average age (years)

Male/Female
Average
Male/Female
Average

Average overtime (hours/per month)

2017

2018

2019

2020

2021

2022

112/44

114/52

124/57

122/62

128/61140/62

156

166

181

184

189

202

862

936

1,878

1,934

1,496

1,347

15.3

16.3

17.6

17.0

18.0

19.0

4.8/5.3

5.1/5.4

5.6/5.8

5.8/6.3

5.9/6.7

6.2/7.2

4.9

5.2

5.7

6.0

6.2

6.5

41.9/34.7

42.1/34.9

42.1/35.3

41.3/35.6

41.4/35.4

41.3/35.9

39.8

39.8

39.9

39.4

39.5

39.7
30.6

25.2

25.4

25.4

25.2

29.6

New graduates hired (people)

Male/Female

5/3

4/4

4/4

4/4

8/4

4/3

Mid-career personnel hired (people)

Male/Female

15/3

8/4

8/1

9/2

10/1

13/3

Retention rate 10 years after hiring (％)*1

Male/Female

—

—

—

97.2/96.9

90.9/91.2

71.4/80.0

Figures are for developed and constructed buildings for which data were collected in each year.

Retention rate new employees (％)*2

Male/Female

100/100

100/100

100/100

100/100

100/100

100/90

We monitor concrete purchased amount from FY2021.

Number of voluntarily resigned employees (person)

2

3

2

3

10

9

Ratio of voluntarily resigned employees (％)

1.3

1.8

1.1

1.6

5.3

4.4

Number of employees in managerial
positions (person)(excluding executive
officers)

Male/Female

57/8

65/12

71/18

70/22

76/22

84/23

Percentage of female directors and Audit & Supervisory
Board members

7

7

7

7

7

7

Percentage of female directors*4

—

—

—

—

—

-*5

The scope is Hulic Head Office Building.

Percentage of female managers

15.6

18.5

20.2

23.9

22.4

21.5

The operational status of corporate governance related to climate change

Employment ratio of persons with disabilities (％)(nonconsolidated)

6.16

5.74

6.09

6.71

7.38

7.36

Employment ratio of persons with disabilities (％)(Hulicand Group companies)*6

2.11

2.41

2.42

2.34

2.54

2.68†

Paper consumption
Unit

2016

2017

2018

2019

2020

2021

2022

Amount of paper recycled

kg

9,400

11,365

13,125

14,54015,60013,88013,000Paper consumption perperson (Hulic Head Office)thousand

16

18

20

20

21

18

16

(times)2020
Number of times the Sustainability Committee engaged in climate change monitoring

2021
1

2022
1

1

Training expenses per employee (JPY million)

—

—

—

—

0.15

0.17

Number of participants for training sessions that
included health and safety standards*7

—

—

—

—

124

139

Percentage of career development interviews conducted
(%)

—

—

—

—

100

100

Number of seminars provided by the Diversity
Promotion Project Team

—

1

1

1*8

1

1

Frequency rate (accidents resulting in lost workdays) (％)

—

—

—

0

0

0

Percentage of employees who received medical
checkup(％)

100

100

100

100

100

100†

Rate of paid leaves (％)

78.3

77.0

78.5

75.5

81.5

77.7†

2

6

6

4

2

4

Male/Female

0/2

1/5

6/5

2/4

5/2

8/5

Rate of male employees who took childcare leave (％)*10

0.0

100.0

100.0

50.0

83.3

80.0

Number of reported times by the Sustainability Committee to the Board of Directors

—

2

3

Number of Environmental Advisory Council held

1

1

1

In 2020, we announced our support for the TCFD recommendations and have strengthened our governance mechanism related to climate change.

Violations of environmental laws and regulations·payment of fines
2016
Violations of environmental laws andregulations · payment of fines

n.a.

2017
n.a.

2018
n.a.

(unit)

2019
n.a.

2020
n.a.

2021
n.a.

2022

n.a.

Number of employees who took childbirth leave(person)Number of employees who tookchildcare leave (person)*9130 Hulic Co., Ltd. Sustainability Book 2023

Environmental Initiatives

2021

Social Initiatives

2020

Corporate Governance

2019

External Evaluation

Number of properties

2018

Sustainability Data

Unit

Our Approach to Sustainability

Social Data

Amount of emission of SOx, NOx and VOC from hazardous wastes

Hulic Co., Ltd. Sustainability Book 2023 131

Corporate Governance Data

2022

Rate of female employees who took childcare leave (％)–Not adjusted for leaves carried over to the next fiscal
year–*11

100

Rate of female employees who took childcare leave (％)–Adjusted for leaves carried over to the next fiscal
year–*12100

Ratio of employees returning to work after childcare
leaves (％)

100

100

100

100

100

100

Number of employees with shorter working hours(person)

6

3

6

5

9

9

Number of employees who took day off for family care(person)*13

1

5

4

7

11

17

Number of employees who took family care leave(person)

0

0

0

0

0

1

Number of users of the subsidy system for daycare
nursery fees (person)

31

31

23

34

38

45

Number of employees who took leave to take part involunteer activities (person)*13

13

100

83.3

100

100

125

We manage corporate governance-related data appropriately and disclose information.

Corporate Governance
100

100

100

100

100

The Board of Directors’ Meetings, Audit & Supervisory Board Meetings, and Discretionary Committee Meetings
The Company's Board of Directors, Audit & Supervisory Board, Nominating Committee and Remuneration Committee include the following

Number of stress checks conducted (people) /Percentage of employees who received stress checks (%)—

Number of additionally obtained qualifications by
employees in total

12
135/95.7

31

0*14

12
164/94.722

0*14

177/94.7

23

171/94.029

2
181/95.3

38

25(note)Data covers Hulic Co., Ltd. only (excluding the number of employees (consolidated) and the employment ratio of persons with diabilities (Hulic and Group companies)).

members: As of April 1, 2023, the Board of Directors and Audit & Supervisory Board included 12 male and 5 female members. (Thepercentage of female officers was 30%.)
Name

Board ofDirectors

Audit &
Supervisory Board

Nominating
Committee

Remuneration
Committee

Chairman, Representative Director

Saburo Nishiura

President, Representative Director

Takaya Maeda

〇

-

-

-

〇

-

-

-

Vice President, Representative Director
Vice President, Director

Hidehiro Shiga

〇

-

-

-

Hajime Kobayashi

〇

-

-

-

Director, Senior Executive Managing Officer
Chairperson of the Board of Directors,
Director (non-execution)

Tadashi Nakajima

〇

-

-

-

Manabu Yoshidome

◎

-

-

-

External Director

Tsukasa Miyajima

〇

-

◎

〇

External Director

Hideo Yamada

〇

-

〇

◎

External Director

Atsuko Fukushima

〇

-

〇

〇

External Director

Shinji Tsuji

〇

-

〇

〇

External Director

Kiyomi Akita

〇

-

-

-

Yuko Takahashi

〇

-

-

-

Masahiro Okamoto

-

◎

-

-

Title

External Director(note)Figures exclude transfers between Group companies. Seconded staff are included in figures for the number of employees who took childbirth leave, childcare leave, employees withshorter working hours, and the number of employees who took leave to take part in volunteer activities.

Full-Time Audit & Supervisory Board Member*1 The retention rate for 10 years after hiring are for personnel who joined the company 9 to 11 business years ago.
*2 The retention rate of new employees are actual results for the most recent three years.

Full-Time Audit & Supervisory Board Member

Mie Tanaka

-

〇

-

-

*3 30% as of April 1, 2023

External Auditor

Nobuyuki Kobayashi

-

〇

-

-

*5 23.5% as of April 1, 2023

External Auditor

Kenichi Sekiguchi

-

〇

-

-

*6 The data covers Hulic Co., Ltd. and subsidiary companies that have been certified as affiliated subsidiary companies under the Act on Employment Promotion etc. of Persons with Disabilities.

External Auditor

Noriko Koike

-

〇

-

-

*4 Percentage of women who serve as board of directors, auditors, executive officers*7 Number of participants for training sessions in health and productivity management

The chairpersons are indicated with ◎.

*8 In FY2020, a video training session was held in lieu of an in-person seminar session to prevent the spread of COVID-19.
*9 N
 umber of employees who took childcare leave; Male: Number of employees who began taking childcare leave, etc. during the fiscal year; Female: Number of employees who began taking
childcare leave during the fiscal year
· If the acquisition period crosses fiscal years, include the figures for the fiscal year in which the acquisition start date occurs.
*10 R ate of employees who took childcare leave: (Number of employees who began taking childcare leave, etc. during the fiscal year) ÷ (Number of employees whose spouses gave birthduring the fiscal year) ×100

Attendance rate at Board of Directors’ meetings, Audit & Supervisory Board meetings, and discretionary
committee meetings in FY2022
Title*11 R ate of employees who took childcare leave-Not adjusted for leaves carried over to the next fiscal year-: (Number of employees who began taking childcare leave during the fiscal year) ÷(Number of employees (or their spouses) who gave birth during the fiscal year) ×100

Name

Board ofDirectors

Audit &
Supervisory Board

Nominating
Committee

Remuneration
Committee*12 R ate of employees who took childcare leave-Adjusted for leaves carried over to the next fiscal year-: (Number of employees who began taking childcare leave during the fiscal year) ÷ (Numberof employees who entered the period for childcare leave during the fiscal year) ×100

Chairman, Representative Director

Saburo Nishiura

100%

-

-

-

*13 Per month totals are given for the number of employees who took days off for nursing care and employees who took leave to take part in volunteer activities.

President, Representative Director

Takaya Maeda

100%

-

-

-

*14 T he number of employees who took leave to take part in volunteer activities was nil during FY2020 · 2021, as participation in volunteer activities was halted to prevent the spread of
COVID-19.

Vice President, Representative Director

Hidehiro Shiga

100%

-

-

-

Vice President,Director

Hajime Kobayashi

100%

-

-

-

Director, Senior Executive Managing Officer

Tadashi Nakajima

100%

-

-

-

Chairperson of the Board of Directors,
Director (non-executive)

Manabu Yoshidome

100%

-

-

-

Human Capital-related Data
2018

2019

2020

2021

2022

100
(11 properties
in boundary)100(4 properties
in boundary)100(8 properties
in boundary)100(8 properties
in boundary)100(4 properties
in boundary)

Progress toward a 100% highly earthquake
resistant buildings*2 in 2029 (%)

—

—

—

81.1

82.1

Number of customer satisfaction surveys

1

1

1

1

1

Nursing homes Number of units

—

3,400

3,600

3,700

4,000

Production area in agriculture (ha)

—

11

10

13

14

Percentage of properties meeting Hulic's
earthquake-resistance standards*1(%)*1 H
 ulic’s earthquake-resistance standards are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of anearthquake with a seismic intensity of 7 level. Data covers the all completed properties each year.
*2 H
 ighly earthquake resistant buildings are those that can safeguard human life and enable continued use of the building with post-earthquake repairs when an earthquake occurs with aseismic intensity of 7 level. Data covers Hulic's fixed assets.

External Director

Tsukasa Miyajima

100%

-

100%

100%

External Director

Hideo Yamada

100%

-

100%

100%

External Director

Atsuko Fukushima

100%

-

100%

100%

External Director

Shinji Tsuji

100%

-

100%

100%

External Director

Kaoru Takahashi

100%

-

-

-

Full-Time Audit & Supervisory Board Member

Shigeo Nakane

100%

100%

-

-

Full-Time Audit & Supervisory Board Member

Masahiro Okamoto

100%

100%

-

-

External Auditor

Koichi Nezu

94%

86%

-

-

External Auditor

Nobuyuki Kobayashi

100%

100%

-

-

External Auditor

Kenichi Sekiguchi

100%

100%

-

-

Environmental Initiatives

2021

Social Initiatives

2020

Corporate Governance

2019

External Evaluation2018

Sustainability Data

2017

Our Approach to Sustainability

Sustainability Data*A
 ttendance rates are calculated based on the meetings held in January to December 2022. Attendance rates of Kaoru Takahashi is calculated based on the meetings held in January to March
2022, and that of Shinji Tsuji is calculated based on the meetings held in March to December 2022. Mr. Koichi Nezu resigned from his position as External Audit & Supervisory Board member
on December 31, 2022.

132 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 133

personnel and labor affairs and human resources development, and (7) the real estate business.

Attendance at Board of
Directors meetings in
FY2022

Occupation/affiliation, etc.

Reason for appointment

Independent
Director

16 of 16 (100%)

Professor Emeritus of
Keio University, Lawyer,
Professor of School of
Law and Graduate,
School of Law of Asahi
University

Mr. Miyajima has extensive experience and insight as aperson of academic standing and the Company believes
that he leverages this expertise in the management of
the Group.

○

16 of 16 (100%)

President of Yamada
Ozaki Law Office

Mr. Yamada has been active as a lawyer for years andhas refined views as a legal expert as well as experience
as an external director of other companies, and theCompany believes that he leverages this expertise in
the management of the Group.

○

16 of 16 (100%)

Ms. Fukushima has been active in the media industry
Journalist, Councillor offor years and has extensive experience, so the Company
Forestry Policy Council,
believes she can reflect her wide range of perspectives
Ministry of Agriculture,in areas including socio-economics, environment,
Forestry and Fisheries
culture and diversity in the management of the Group.

○

12 of 12 (100%)

Director, Sompo
Holdings, Inc.

Mr. Tsuji has extensive experience and broad insightas the top management of a major non-life insurancecompany, and the Company believes that he leverages
this expertise in the management of the Group.

○-

Professor Emeritus of
Ms. Akita provides her advice based on her experience
the University of Tokyo,
in educational research for the benefit of theProfessor of Gakushuin
management of the Group.
University,○-

Yuko Takahashi
Certified Public
Accountants Office

We appoint directors with the right skills in accordance with these requirements, and their skills are shown in the table below.

Name

Personnel andLegallabor affairs
Real
Corporate Sustainability Finance andRisk
affairs andand humanestatemanagementand ESGaccounting
management
complianceresourcesbusinessdevelopment

Title

SaburoNishiura

Chairman,
Representative Director◎〇

TakayaMaeda

President,
Representative Director◎〇

Hidehiro
Shiga

Vice President,
Representative Director〇

HajimeKobayashi

Vice President, Director〇〇

TadashiNakajima

Director, Senior
Executive Managing
Officer〇〇

ManabuYoshidome

Chairperson of theBoard of Directors,
Director (nonexecutive)〇〇

Tsukasa
Miyajima

External Director

Hideo
YamadaExternal Director

AtsukoFukushima

External Director

Shinji Tsuji

External Director

〇

〇

〇

〇

〇

〇

◎

〇

◎

〇

◎

〇

〇

〇

〇

◎

〇

◎

〇

AtsukoFukushima

ShinjiTsuji*2

Kiyomi
Akita*3

◎
◎

〇

◎

Yuko
Takahashi*3

〇

◎

〇
〇

Attendance at meetings
in FY2022◎
Name*1 A ◎ in a director's skill matrix means the director in question has particularly outstanding skills in that particular area.
*2 The above list is not intended to be an exhaustive list of the knowledge and experience possessed by each director.

Board ofDirectors

Post

Total
amount ofcompensation(JPY million)

Nobuyuki
Kobayashi

Fixedcompensation

Performancelinked variable
compensation(in stock)

Performancelinked variable
compensation(bonus)Of theseamounts, nonmonetarycompensation

Reason for appointment

Independent
Director

14 of 14
(100%)

Director of Kobayashi
Certified Public
Accountants Office

Mr. Kobayashi has specialized knowledge in accounting
and taxation as a certified public accountant and tax
accountant, so the Company expects him to be able
to audit management objectively and from a neutral
position as an External Auditor and Audit & Supervisory
Board member.

16 of 16
(100%)○

14 of 14
(100%)

Honorary Advisorof Meiji Yasuda Life
Insurance Company

Over the years, Mr. Sekiguchi has accumulated
extensive business management experience and broad
insight as chairman, so the Company expects that hewill be able to audit management objectively and froma neutral position as an External Auditor and Audit &Supervisory Board member.

○

Koike Certified Public
Accountants Office

Ms. Koike has extensive experience and specialized
knowledge in accounting, so the Company expects
that she will be able to audit management objectively
and from a neutral position as an External Auditor and
Audit & Supervisory Board member.

○

Number of
directors/
auditors

Directors(excluding External Directors)

1,045

521

262

262

262

6

Auditors(excluding External Auditors)

72

72

-

-

-

2

External Directors/Auditors

126

126

-

-

-

8

*1 The amount of stock compensation is provision to reserves for stock benefits posted as the portion for the current fiscal year, for performance-linked variable compensation system.

KenichiSekiguchi

16 of 16
(100%)

NorikoKoike*3*2 The total non-monetary compensation to directors (excluding external directors) consists of JPY262 million in performance-linked variable compensation (in stock).

―*1 Information about external directors and external auditors who retired in 2022 is not be included in this list.
*2 Appointed on March 23, 2022
*3 Appointed on March 23, 2023

134 Hulic Co., Ltd. Sustainability Book 2023○

Occupation/affiliation, etc.

Audit &
Supervisory
Board

Directors/Auditors’ Compensation
Total amount by type of compensation(JPY million)

Ms. Takahashi has expertise in corporate accounting
and a wealth of experience as a member ofmanagement at a major advertising agency, and theCompany believes she leverages this expertise in the
management of the Group.

External Auditor and Audit & Supervisory Board members*1◎〇

External Director

Hideo
Yamada〇〇Kiyomi Akita External Director
Yuko
Takahashi〇

Tsukasa
Miyajima

Environmental Initiatives

Name

Corporate Governance(1) corporate management, (2) sustainability and ESG, (3) finance and accounting, (4) legal affairs and compliance, (5) risk management, (6)External Evaluation

To achieve our Medium- and Long-Term Management Plan, we have defined the skills we consider necessary for directors as those related toSocial Initiatives

External Directors*1

Sustainability Data

Director Skill Matrix

Our Approach to Sustainability

Sustainability Data

Hulic Co., Ltd. Sustainability Book 2023 135

FY2018

FY2019FY2020

FY2021

FY2022

Participation rate in Board of Directors meetings (%)

98.0

99.1

98.7

99.6

99.6

Number of effectiveness assessment of the Board of
Directors (time)

-

-

1

1

1

Compensation for Audit by a Certified Public Accountant, etc.

Compensation basedon audit and attestation
services

FY2022Compensation basedon audit and attestation
services

Compensation based on
non-audit services

Compensation based on
non-audit services

Hulic

62

36

59

7

Consolidated
subsidiaries

50

-

51

-

Total

112

36

110

7

FY2021

FY20225 (4 employees,
1 officer)

5 (4 employees,
1 officer)

5 (4 employees,
1 officer)

5 (4 employees,
1 officer)

5 (4 employees,
1 officer)

Political contributions

none

none

none

none

none

Expenses for corruption related fines,
penalties or legal settlements

none

none

none

none

none

Number of employee reprimands or
dismissals due to actual or suspected
corruption (time)

0

0

0

0

0

Compliance violations regarding Hulic
businesses and services and means oftransaction (time)

0

0

0

0

0

Responses and BCP to fluctuations in the financial and real estate markets

Non-audit services provided to the Company include tasks such as drafting comfort letters related to new stock issuances.
(FY2022)
Non-audit services provided to the Company include tasks such as drafting comfort letters related to corporate bonds issuances.

FY2019FY2020

FY2021

FY2022

Number of Risk Management Committee andFund and ALM Committee meetings (time)

-

4/13

4/22

4/16

4/17

Number of BCP drills, inspections of stockpiled
food and suppliers (time)

1

1

1

3/4/1*

3/4/1*Beginning in FY2021, the number of BCP drills, inspections of stockpiled food and suppliers are disclosed, respectively.

Compensation for Ernst & Young Member Firms
FY2022Compensation basedon audit and attestation
services

Compensation based on
non-audit services

Hulic Co., Ltd. (non-consolidated)

Compensation based on
non-audit services

FY2020

Hulic

-

5

-

6

Consolidated
subsidiaries

-

3

-

3

Total

-

8

-

10

(FY2021)
Non-audit services at the Company involved tax-related outsourcing and others.
Non-audit services at consolidated subsidiaries involved tax-related outsourcing and others.

(JPY million)

FY2021

FY2022

Japan

31,271

23,956

24,417

The U.S.

3

7

3

31,27423,96324,420Total

Corporate GovernanceTax Payments by Country

FY2021Compensation basedon audit and attestation
services

FY2018Social Initiatives(FY2021)

Category

FY2020* Total current income taxes and deferred income taxes were counted.

External Evaluation

Category

FY2019Number of compliance training
conducted (time)(JPY million, consolidated basis)

FY2021FY2018Environmental Initiatives

Compliance

Other Data

Our Approach to Sustainability

Sustainability Data

(FY2022)
Non-audit services at the Company involved tax-related outsourcing and others.

Sustainability Data

Non-audit services at consolidated subsidiaries involved tax-related outsourcing and others.

136 Hulic Co., Ltd. Sustainability Book 2023

Hulic Co., Ltd. Sustainability Book 2023 137