Society
Page 2 — Contribution to Local Communities
Page 9 — Disaster Prevention
Page 14 — Respect for Human Rights
Page 17 — Utilization of Human Capital
Page 22 — Working Environments
Page 25 — Product Safety & Quality

Updated on August 30, 2024

Society
Contribution to Local Communities
Issue Awareness and Action Plans
The business of developing and operating real estate
properties can only be possible through cooperation withpeople in the local community. In order to build solid, lasting
relationships with local communities and contribute to thedevelopment of regions, the Sumitomo Realty Group engages
in a variety of activities that contribute to local communities
and society in cooperation with each stakeholder through its
business activities.

Initiatives
Redevelopment Business and Community Investment
With the fundamental mission of “Create even better social
assets for the next generation,” the Sumitomo Realty Group
places creating high quality assets and holding them for along-term at the core of its business strategies. In particular,
we focus on redevelopment, and actively invest in local
communities to address local issues such as disasterprevention, the environment and the liveliness of thecommunity. As our current Medium-term Management Plan
targets to advance the development of office buildings of over

700 thousand tsubo in gross floor area, we will work on
achieving sustainable development for the Company and local
communities by building solid relationships with the membersof the community.
IZUMI GARDEN redevelopment project, which comprises
two redevelopment areas, one surrounding Izumi Garden
Tower and the other surrounding Sumitomo Fudosan
Roppongi Grand Tower, is a typical example of such projects.

IZUMI GARDEN (left: Sumitomo Fudosan Roppongi Grand Tower, right: Izumi Garden Tower) Izumi Garden Tower Redevelopment

The western area of Roppongi 1-chome was not used as abusiness district because of a lack of geographical continuity
due to differences in elevation reaching up to 20 meters. The
area used to be a densely built-up area with old wooden
houses on slope and step-like ground, and required
improvement from the aspect of living environment anddisaster prevention.
Key points of the redevelopment

This project realized flexible land use that takes account ofcharacteristics of each urban block and harmony with thesurrounding areas under the concept of an “Open Town
Development,” achieved through discussions with about 100
landowners and administrative officials from Tokyo
metropolitan and Minato Ward governments.

Providing spaces for community members to encounter greenery and culture in central Tokyo
Creating a spacious square, underground but full of light, connected to the subway station by developing the area together
with the Roppongi-itchome station
Creating a terrace square by utilizing the difference in elevation and placing characteristic shops, where people can feel
liveliness of the city2Society
Contribution to Local Communities
Initiatives
Redevelopment Business and Community Investment
 Sumitomo Fudosan Roppongi Grand Tower Redevelopment
The urban block centered around Sumitomo Fudosan
Roppongi Grand Tower, which is adjacent to previous urban
redevelopment of “Izumi Garden Tower” across the Roppongiitchome station, had been inconveniently situated without atrain station exit directly connected to it and had pedestriansafety concern due to narrow roads.
The Sumitomo Fudosan Roppongi Grand Tower
Redevelopment project solved these issues by redeveloping
the district to make it a station front hub that is highly
convenient with disaster-prevention features.

Solution for the challenges facing the community
A lack of good access to the
Roppongi-itchome station
making the area inconvenient・Improving pedestrian flows in the area by redeveloping the district and the areain front of the station together, and creating a west exit to the station*
・Enhancing convenience through a new station square measuring 1,280m² andintroducing a commercial complex
・Installing multiple elevators to address differences in elevation and as abarrier-free measure

Little surrounding greenery・Creating a new 2,400m² square rich in greenery with a walkway allowing
pedestrians to enjoy greenery even in central Tokyo

Had pedestrian safetyconcern due to narrow roads

・Widening the sidewalks from 6m to 12m, and underground installation of powertransmission cables, to ensure that pedestrians can walk safely and comfortably*As seen above, Sumitomo Realty considers access to public transportation at all developments it undertakes.

 Town Management of the IZUMI GARDEN District
Sumitomo Realty manages “IZUMI GARDEN,” anapproximately 6 hectare large urban block consisting of two
redevelopment areas; "Izumi Garden Tower" and "Sumitomo
Fudosan Roppongi Grand Tower” at their core respectively.
We are working on town management to make the district

attractive to workers, residents and visitors in each season toincrease the value of the district and give it a lively atmosphere.
The initiatives include events held jointly with operators of
nearby buildings and those held with TV Tokyo and BS Japan,
which are our tenants.

Example of past events
Cherry Blossom Festival

Christmas Illumination

Disaster-Prevention Fair

Summer Festival

Marché Event3

Society
Contribution to Local Communities
Initiatives
Revitalization of Nishi-shinjuku Area
 “Sankaku Biru” — Adding to the Liveliness of Nishi-shinjuku
Since its completion in 1974, Shinjuku Sumitomo Building,nicknamed “Sankaku Biru” (triangular building) for its shape, hasbeen a familiar symbol of the Nishi-shinjuku area, creating a lively
atmosphere in the district that is one of Japan’s leading businesshubs. Sankaku Biru was a harbinger of a commercial complex —a property that is designed not only for office-use but also
incorporating multifaceted functions, such as restaurants, retailshops, culture and sports. Since its opening, it has been a centerof liveliness visited by many people of the area and tourists.
A variety of events have been held in the open space of the site,which provides a bright and lively social space for people to visit,
walk around and engage in conversation.
In June 2010, the Shinjuku Subcenter Area Environmental
Improvement Commission was created. As a member of thecommission, Sumitomo Realty has been contributing to therevitalization of the Nishi-shinjuku area by holding cross-sectional
events at the buildings we own in the vicinity.
Events held in the area surrounding Shinjuku Sumitomo Building The All-Weather Atrium Event Space “Sankaku Hiroba” — Adding to the Liveliness of the Area
Sankaku Biru, which has long added to the liveliness of thearea, underwent a major renovation and was reborn in June
2020 with the new “Sankaku Hiroba” (triangular plaza).
Sankaku Hiroba is a large space with a capacity of about
2,000 people. Its all-weather atrium has the feel of an outdoor
venue while protecting the plaza from the effects of theweather and temperature. Taking advantage of its ceilingheight, which is level with the sixth floor of the building,Sankaku Hiroba can accommodate various activities, such as
sports and large-scale events. It also contributes to urban

disaster prevention by serving as a facility for stranded
commuters and as a disaster prevention base in the event of
the disaster. In addition to Sankaku Hiroba, the international
conference center has been newly developed, and it provides
new venues for business exchanges and large-scaleinternational events in the area around Shinjuku Station, theworld’s busiest station.
Through this project, we continue to promote Sankaku Biru
as a vibrant hub of the town, contributing to the further
revitalization of Shinjuku.

* In August 2017, this project received certification from the Ministry of Land, Infrastructure, Transport and Tourism as a private-sector city revitalization project plan
as well as from the Prime Minister of Japan as a specific project under the national strategic special zone plan. It has been commended as a project that
contributes to enhancing the city’s attractiveness as an international business center and tourist destination while also strengthening its urban disaster prevention
capabilities.

Shinjuku Sumitomo Building after renovation

Dinosaur exhibition held in Sankaku Hiroba

4Society
Contribution to Local Communities
Initiatives
Revitalization of Ariake Area
 Ariake Garden — A Large-scale Mixed-use Development in Tokyo Waterfront Area
The bayside Ariake area, where Ariake Garden is located, has flourished as abustling site for events, with a growing supply of high-rise residences and anotably high level of population growth in Tokyo. In order to further increase thevalue of this bayside area, we developed Ariake Garden, a large-scale complex
that helps address the area’s housing shortage and the lack of convenience forvisitors during their stay, and leverages the area’s features to provide it witheven greater liveliness and energy.
Featuring a large retail facility with about 200 shops at its core, it includes atheater-style hall with a maximum capacity of 8,000 people, equipped withfacilities to host international conventions, an exclusive theater for the Shiki
Theatre Company, a high-grade hotel with a large spa, and a triple-tower
condominium with over 1,500 units. This complex contributes to adding new
vibrancy to the Tokyo Bay area.
As a facility positioned in the area central to bayside vitalization, we will
promote continuous urban development so that it will become the heart of community building for local residents, and contributeto the further advancement of the entire waterfront and bayside area.

 Town Management of the Ariake Garden District

Sumitomo Realty Group is striving to establish Ariake Garden as a new hub in Ariake district with both liveliness andconvenience. In order to achieve this, we are holding various events in collaboration with the community members and ourtenants, utilizing the vast open spaces within the district.
Example of past events
Date

Name

OutlineApr 2023

A special dance showcase by D.LEAGUECHAMPIONSHIP "Ariake Garden Stage"

Admission free dance stage by a professional dance league launched inJapan

Jun 2023

Ariake Garden 3rd anniversary event“DeepRiverMarket”

Popular shops and performers in the Fukagawa area showcased the charmof Fukagawa

Aug 2023

Ariake Festival 2023

Festival stalls, bon dancing, and instrument performances by elementary andjunior high schools in Ariake area

Dec 2023

Ariake Garden Christmas

Illuminations and Christmas market

Jul 2024

Minna-no Summer Art Workshop (art class foreveryone)A hands-on art event organized by KOMOGOMO Exhibition (see below)
where young artists and visitors could interact

Collaboration with the KOMOGOMO Exhibition
The KOMOGOMO Exhibition is an art event organized by young graduatesfrom Tokyo University of the Arts. The event aims to provide a place of
creative expression for young artists with their art works and musicalperformances. These activities also aim to create a forum for lifelong
learning in which artists and visitors can interact and learn from each other.
In August 2020, the KOMOGOMO Exhibition held a spin-off event at
Ariake Garden. It provided an opportunity for a wide range of visitors, fromadults to children, to experience artwork and music.
In addition, the Ariake Minna-no KOMOGOMO Concert 2021 (concert foreveryone) took place in June 2021, in cooperation with the KOMOGOMO
Exhibition Activity Committee. Aimed to convey the joy and inspiration ofclassical music to children, the concert was free and open for the wholefamily to enjoy, including children from the age of zero. Its two
performances were attended by people from a wide area, reaching a total
audience of about 4,200 people.

5

The Great East Japan Earthquake Disaster
Reconstruction Support Event
In March 2021, Sumitomo Realty Group heldan event entitled “Ten Years after the Great
East Japan Earthquake: How each of us can
support recovery effort.” The event featured a
symposium screening and photo exhibition
with the support of the Reconstruction Agency,
as well as lectures and panel discussions by
disaster victims. The event
saw a large attendance,
thanks to the cooperation of
the broadcasting stations in
Tohoku, as well as companies
and organizations that kindly
supported the event’s purpose.

Society
Contribution to Local Communities
Initiatives
Together with the Stakeholders
 Promotion of Education, Research, Culture and the Arts
Sumitomo Realty, together with its various stakeholders, is committed to supporting activities promoting education, research,
culture and the arts.

Donations through the Sumitomo Foundation

The Sumitomo Foundation was established in 1991 to mark the 300th Anniversary of the opening of the Besshi Copper Mine,
which became the cornerstone of Sumitomo’s various businesses.
In the area of academic research, the Foundation provides funding mainly for basic scientific research that faces inadequate
funds, research by new and promising researchers, research that contributes to solving environmental issues and Japan-related
research by Asian researchers.
In the field of culture and the arts, the Foundation provides funding for the maintenance and restoration of cultural properties
in Japan and abroad, thereby contributing to the passing down of unique culture and mutual cultural understanding between
nations.
As a founding member, Sumitomo Realty has worked with the Foundation in various ways, including participation in its
management and contributing funds.

 Resolving Local Issues through Dialogue with Local Communities and Tenants
Sumitomo Realty goes beyond pursuing its own initiatives and engages incollaboration with local communities and tenants by creating opportunities for
dialogue so that all stakeholders can work together to solve local issues.
One example of this is in the area of disaster prevention, a common concern ofthe community. Rather than limiting disaster drills to building managers, weperiodically conduct large-scale drills together with tenants and members of the local
community.
In addition, in order to create liveliness in the community, our employees
participate in various activities, such as festivals and volunteer cleanup activities, inthe communities where our office buildings are located. This provides opportunities
for interaction and dialogue and helps foster a lively local atmosphere.
A disaster drill using the plaza in Ariake Garden

 Providing Development Support and Relationship-building Assistance to Next Generation
Companies
Since January 2023, Sumitomo Realty has been hosting the Toranomon Summits, an event that matches more than 1,500 of
the tenant companies in our buildings with start-up companies to help create next-generation unicorn companies. Each of thesesummits has a theme, such as real estate, construction, the environment, or finance, and 10 start-ups in these fields givepresentations to the audience, which comprises roughly 200 representatives from major corporations and venture capitalcompanies. The summits also provide opportunities for interacting with other participants through social gatherings.
In addition, we are opening and managing a total of 12 startup-friendly 'GROWTH' series offices, designed to be affordable
with low initial costs. This includes 10 offices in central Tokyo and one each in Kyoto and Osaka, including those planned. We
offer a wide lineup of buildings and diverse offices to match the business growth of tenants. Through these efforts, we aresupporting the growth of next generation companies, and establishing new and stronger relationships.

Growth Tranomon entrance hall

The reception at Toranomon Summit

6Society
Contribution to Local Communities
Initiatives
Together with the Stakeholders
 Cooperation with Local Enterprise, and Local Hiring Activity
The Sumitomo Realty Group is actively hiring employees
locally. Especially in the Shinchiku Sokkurisan remodelingbusiness, our offices across the country hire many local
residents, as well as use business partners who understandthe characteristics of their respective regions so that they can
improve customer satisfaction by offering products andservices best suited to the region.

 Participating in Supply Chain Initiatives
In order to contribute to solving social issues, Sumitomo Realty
participates in GREEN×GLOBE Partners, a group made up ofcompanies that work together to solve environmental andsocial issues. It promotes co-creation among member
companies and spreads awareness and opportunities forsolving environmental and social issues. In this manner, theinitiative aims to create a starting point for the entire supply
chain to tackle major issues that cannot be solved by individualcompanies. The Sumitomo Realty Group will continue tocontribute to solving environmental and social issues throughcollaboration with stakeholders in the supply chain.
GREEN×GLOBE Partners website

Creating Opportunities to Appreciate Art and Culture
The Sumitomo Realty Group is engaged in a variety of activities aimed at supporting artistic and cultural activities and creating
opportunities to appreciate art and culture.

 Shinjuku Creators’ Festa
Shinjuku Creators’ Festa is an initiative by the Shinjuku Ward office with thegoal of making the ward more attractive through art, adding liveliness andrevitalizing it.
In support of this goal, the Company has supported the event as a member
of its executive committee since 2016. In this event, many artists put their workon show in wide-ranging art events held in public spaces and facilities, as wellas privately owned facilities, surrounding Shinjuku Station.

©Yoichiro Kawaguchi Art Exhibition Using Temporary Enclosure for Construction Site
In July 2021, Sumitomo Realty participated in the Higashi-Ginza Area
Management Project, which has been promoted by Shochiku Co., Ltd. since 2020.
As its first initiative, an art exhibition using temporary enclosure for construction
site was held at the Tsukiji 1-chome demolition site.
Higashi-Ginza is richly steeped in Japanese tradition and history, which ispalpable even in the modern lifestyles of the people. The art exhibition presented
the area in an “iki (chic)” style, with designs associated with each of its local
communities.
In March 2022, as the second initiative, we held the "HIGASHIGINZA Art
Gallery,” displaying traffic-safety posters painted by elementary school students.
In January 2023, as the third initiative, we held the “HIGASHIGINZA Art Gellery 2”,
with the theme of fire and disaster prevention campaign.

7

Society
Contribution to Local Communities
Initiatives
Creating Opportunities to Appreciate Art and Culture
The Sumitomo Realty Group is engaged in a variety of activities aimed at supporting artistic and cultural activities and creating
opportunities to appreciate art and culture.

 Charity Concert
Since 1987, we have been hosting Step Concert, a seriesof classical concerts for families, as part of ourcharity/volunteer activities. The concert, which has inviteda cumulative total of over 260,000 people, has been
designated a child welfare cultural asset recommended
by the Social Security Council of the Ministry of Health,Labour and Welfare since 1996, which recognized it asparticularly outstanding as a series of concerts for
improving children’s welfare.
The concert also runs fundraising drives at its venues
from which donations have been made to the Japanese
Red Cross Society to support earthquake-affected
regions across Japan and the Japan Service Dog
Association to raise service dogs. Since starting
donations in 1995, we have donated a cumulative total ofmore than 18 million yen to NPOs and otherorganizations.

Number of invitees
Total amount of
donations (thousand yen)

FY2021

FY2022

FY2023

4.541

7,512

6,956

664

680

870

* In fiscal 2021, we held the event by limiting the number of people to prevent the spread of COVID-19.

Certified as Mecenat Activity
The STEP Concert held each year by Sumitomo Realty Group has beencertified as an outstanding mécénat activity since its initial certification in“This is MECENAT” in 2021, which is run by Association for Corporate
Support of the Arts.
“This is MECENAT” is certification system founded in 2014 by
Association for Corporate Support of the Arts in order to demonstrate thesocial significance and presence of diverse activities implemented in all
regions around the country by corporations for the purpose of promotingsocial creativity through arts and culture.

Social Contribution Activities
The Sumitomo Realty Group continues to contribute to local
communities and society through various activities.
Social contribution
activity expense(thousand yen)

8

FY2021

FY2022

FY2023

68,767

98,286

151,616

Society
Disaster Prevention
Issue Awareness and Action Plans
The Sumitomo Realty Group considers that creating social
assets, such as office buildings and condominiums, and firmly
handing them over to the next generation are central to thefulfillment of our mission. In recent years, awareness of
disaster prevention has increased amid concerns about therisk of an earthquake occurring directly under the Tokyo
metropolitan area, as well as the effects of climate change. We
aspire to develop safe and secure communities, not only forthe residents but also for everyone in the neighborhood,through our focus on buildings that can prevent or withstanddamage in the event of disaster, including a fire and anearthquake, as well as on regional disaster preparedness as acommunal function. In office buildings and condominiums, weare actively working to introduce advanced earthquake
resistance performance through technologies such as seismic
isolation and damping systems. We are also working toenhance our BCP. In addition, we are contributing to disasterprevention in detached wooden houses with our Shinchiku
Sokkurisan remodeling and custom homes.
The Sumitomo Realty Group actively continues working tobuild safe and secure communities.

Initiatives
Disaster Prevention for Office Buildings
 Contribution to Regional Disaster Preparedness
Sumitomo Realty has contributed to disaster prevention in
local communities through its redevelopment projects, which
are mainly in central Tokyo.
Sumitomo Fudosan Iidabashi First Building and Sumitomo
Fudosan Iidabashi First Tower are located in the Koraku 2chome district in Bunkyo Ward. This area used to haveextremely brittle ground and its streets were lined with oldwooden houses, causing concern that the area would beseverely damaged in the event of an earthquake or fire.
Through our redevelopment projects, these areas have beenrebuilt with robust, fire-resistant buildings. At the same time,they have been transformed into disaster-resistant areas
through the construction of roads and public open spaces.
Disaster prevention in the community does not stop at
development, but continues afterwards from the perspective ofbuilding management.
Sumitomo Fudosan Iidabashi First Tower jointly holds
annual disaster drills with the Koraku Community Association,a certified organization of the Tokyo Disaster Prevention
Neighborhood Association. On March 19, 2019, a total of
approximately 1,500 people participated in an evacuation drillthat simulated an earthquake directly under Tokyo with aseismic intensity of 6 upper on the Japanese scale and withresulting fires. In addition, the Koishikawa Fire Station andlocal fire brigade conducted a fire hose demonstration drill, andthe Tomisaka Police Station cooperated in a disasterprevention demonstration drill. Tenant companies andmembers of the local community were able to experience avariety of demonstration drills, such as an earthquake
simulation vehicle, a smoke house, a machikado (street
corner) disaster drill vehicle, emergency first aid exercises, aswell as a demonstration of serving pork miso soup by
members of the Koraku Community Women’s Association.
Through its redevelopment projects, the Sumitomo Realty
Group will work together with tenants and local communities tocontribute to disaster prevention in the community.

Earthquake simulation vehicle

Fire hose demonstrations with a machikado
disaster drill vehicle

Smoke house

AED practice area

9

Society
Disaster Prevention
Initiatives
Disaster Prevention for Office Buildings
 Support for Commuters Stranded after Disasters
Sumitomo Realty has collaboration agreements with wards ofTokyo to accommodate approximately 10,000 stranded
commuters at 18 facilities in seven wards of central Tokyo.
In the event of a major disaster, it is anticipated that people
may remain in those facilities for up to three days. All 18
facilities have prepared systems for accommodating stranded
commuters by stockpiling not only drinking water, portable
food, simple toilets, and other supplies, but also hygiene andhealthcare products to reduce the anxiety and stress after adisaster as much as possible.
In Shinjuku, where our head office is located, as a memberof an association for disaster prevention in Shinjuku Station
area (secretariat: SOMPO Risk Management Inc., Kogakuin
University, Sumitomo Realty & Development Co., Ltd. andShinjuku Ward), we conducted a disaster drill to practice
operation of temporary site for accommodating stranded
commuters in January 2023. It was held at the Sankaku
Hiroba (triangular plaza) at Shinjuku Sumitomo Building, and63 people from 29 organizations participated. In the following
week, a meeting was held to review the drill and improve thesystem for the future. We sorted out issues, and improvements
were made to the manuals and tools prepared by the Council.

A disaster drill for operation of temporary evacuation facility Disaster Prevention Structure and Equipment
Enhanced BCP (Business Continuity Planning)
An earthquake-resistant structure providing safety andpeace of mind

Uninterrupted power supply

Sumitomo Realty was an early adopter of earthquake-resistantfeatures, promptly introducing the seismic isolation structure in its
office buildings after the Great Hanshin Awaji Earthquake of 1995.
Approximately 80% of the buildings we own are structured with aseismic isolation system and/or a damping system. Highly safe
structures, which can protect people working in offices and assets
by reducing tremors, increase the feeling of safety among tenants.

Risk of power outages is mitigated by the use of a 2-line powerreceiving system where an auxiliary line continues to supply power
when the main line is disrupted. The Company further strengthensmeasures for uninterrupted power supply, such as installing
emergency power generators not only for common areas but also
for tenant areas. Currently, about 70% of the buildings owned by theCompany, and 100% of those that have been completed since 2001,
have emergency power generators.

 Other Disaster Countermeasures
Example of disaster countermeasures
Monitoring by Sumitomo Realty’s employees around the clock throughout the year
Spaces for installing additional emergency power generators serving tenant-occupied areas
Elevators that automatically assess the situation after an earthquake and temporarily return to operation
All new buildings in areas of flooding risk equipped with tide boards

10Society
Disaster Prevention
Initiatives
Disaster Prevention for Condominiums
Sumitomo Realty’s condominiums feature various disaster countermeasures in order to realize safe and secure living.

 Disaster Prevention Structure and Equipment
Example of disaster countermeasures
Structural frame with excellent durability

Water-cement ratio

For buildings with residential units, in order to increase thedurability of the structural frame, we have set a design
standard strength (Fc) that meets a certain level for major
structural parts such as columns, beams, and floors.

In order to increase the durability of concrete, the ratio of
the weight of water to cement is set at 50% or less for
major structural parts. Generally the lower the watercement ratio is, the greater the durability tends to be.

Welded closed hoops

Seismic isolation/damping structures

Adopting welded closed type ofhoops, in which the connectionsof the hoops are welded to themain column sections, ensuresconsistent strength.
This prevents the main rebar
from buckling during an earthquake and increases the
restraining force of the concrete.

■Welded closed hoops

Hoop
Main
rebar
Seams arewelded* Excluding columns and beam joints(Conceptual diagram)

Sumitomo Realty’s condominiums feature seismic
isolation and/or damping structures depending on thescale of the building, to prevent deformation and alleviate
shaking during an earthquake.
Seismic isolation structure: By absorbing the shaking andreducing the transmission of seismic energy to the upper
floors, it reduces the risk of furniture being overturned.
Seismic damping structure: The use of damping devices
to absorb seismic energy reduces the deformation of thebuilding overall and mitigate damage to the building
structure.

Elevator safety device

Earthquake-resistant door frame

If the earthquake control system detects a preliminary
tremor (P-wave) or secondary tremor (S-wave) of anearthquake that exceeds a certain value during elevator
operation, the elevator will stop immediately at the closest
floor. In the event of a power failure, the elevator will stop
once and then automatically stop at the closest floor byusing the automatic elevator landing device.

We adopt earthquake- ■ Regular door ■ Earthquakeresistant door frame
frame
resistant door frames
to ensure that even if
the frame of the front
door becomes distorted
in the event of an earthquake, a wider gap
between the frame and Deformation of door frames Deformation of door frames
tends to occur
tends not to occur
the door will allow the(Conceptual diagram)door to be easily opened.

 Disaster Prevention in Property Management
Sumitomo Realty distributes a disaster prevention handbook and an emergency
backpack to all units to prepare for emergencies.
The handbook includes emergency contact information and evacuation routes.
The emergency backpack contains drinking water, canned bread, dust masks
and work gloves.
These preparations help ensure the safety and security of residents in theevent of a disaster.

Disaster prevention
handbook

11

Emergency
backpack(Image photo)Society
Disaster Prevention
Initiatives
Disaster Prevention for Shinchiku Sokkurisan
 Products Developed in Response to the Great Hanshin Awaji Earthquake
In response to the Great Hanshin Awaji Earthquake, Sumitomo
Realty developed its own unique system of Shinchiku
Sokkurisan remodeling in 1996 as a new construction method,which is alternative to rebuilding with reliable seismic
reinforcement. Now it boasts the industry’s foremost trackrecord for large-scale remodeling.
In 2018, we announced a proprietary method, which uses
damping reinforcement for further safety. We introduced thistechnology after observing that even relatively new houses
that had met conventional earthquake resistance standards
had collapsed in the Kumamoto Earthquakes of 2016. In
addition, in 2019 we developed a damping reinforcement
method for three-story wooden houses and platform woodframe construction houses, making it possible to convert
almost all of Japan’s wooden houses to an earthquakeresistant structure with damping.

Shinchiku Sokkurisan Example

BeforeAfter Damping Reinforcement Method for Houses with New Earthquake Resistance Standards after 2000
Houses built to the new earthquake resistance standards thattook effect from 2000 have load-bearing features installed in
the walls, thus eliminating installation space for a seismic
control device. This was an obstacle to additional damping
reinforcement. However, the new method enables theinstallation of MAMORY, a compact seismic control device forwooden homes, on the dead spaces such as hanging walls
above windows and doors, while leaving the load-bearing walls
intact. This reduces shaking by approximately 40% comparedwith buildings that only have seismic reinforcement.

Construction method using MAMORY

MAMORY is a seismic control device forwooden houses, developed by Sumitomo
Rubber Industries, Ltd. Using special highdamping rubber, it absorbs seismic energy
instantly and prevent deformation of thebuilding. In particular, it has proven effective ina series of powerful tremors such as the
Kumamoto Earthquakes. It has been
demonstrated that buildings do not collapse
even after three consecutive shocks withthree-dimensional shaking.
When this device is installed on thecolumns of existing houses using the
Shinchiku Sokkurisan Bar* with a method
jointly developed by Sumitomo Realty and
Sumitomo Rubber Industries, Ltd., it ispossible to obtain seismic control functions
without damaging the columns.

Ordinary rubber

Special highdamping rubber

Radiation↑ MAMORY Seismic Control
DeviceMounting part(steel plate)Special highdamping rubber
protects a housefrom earthquakes.
MAMORYextends andshortens

Special highdamping rubber

Earthquake
energy* A special metal reinforcement bar developed by Sumitomo
Realty that prevents column breakage↑ MAMORY structure

12

Society
Disaster Prevention
Initiatives
Disaster Prevention for Custom Homes
 “SUMICA” － A House that Protects the Environment and Living
The "SUMICA" is a custom home package product with equipment
Solar
that protects the environment and supports daily living.
power
generation
By leveraging SUMIFU×ENEKARI (please refer to page 9 of
Use in thehome
Off-peak
Off-peakour Environment Report), it installs solar power generation
Store or sellenergyenergysurplus power
hours
hours
equipment and storage batteries at a "zero initial cost,” andprovides support including equipment repairs and upgrades for theentire period of residency. In addition, with IoT utilizing AI-HEMS,
which analyzes the data such as living patterns and the next day’s
forecast for solar radiation, it realizes efficient use of electricity andenergy saving. Moreover, by combining the “potable water storage
system” and the “rainwater storage tank,” it secures electricity,
This system storesCollecting water fromFor always clean water
100L
potable water in thethe rain gutter:
drinking water and water for daily use for about three days even
Potable water storagewater
24L under-floor
Rainwater storage tanksupply route andsystemwhen the lifeline is suspended in the event of a disaster.
allows easy access to Storing rainwater secures water forwater in the event of an daily use, such as for laundry andtoilets, when the water supply is cut
outage. Since theThrough offering these facilities as a package, we contribute notoff in earthquakes and othersystem is installed inemergency circumstances. Its
the piping space
beneath the floor, there capacity is a reliable 100 liters. It can
only to realization of carbon-neutral society but also to securing
also be used in the initial extinguishingis no need to secure an installationof fires, giving residents a great sense
location
withinthelivingspaceitself.
Itispeople’s living in face of the increase in natural disasters due toalso hygienic as it is constantly replaced of security through the availability ofwater.
with fresh tap water through daily watersupply use.
climate change.
Intelligent
use

CreateStore

Charg- Standby
ing

Discharging

Purchase

Stand-by*1

Discharging

Self-generatedPower
generation* Does not discharge when charging.

(Note: This is not potable water.) Earthquake Resistance Performance for Custom Homes
Sumitomo Realty’s custom homes are built to a standard specification that uses platform wood-frame construction that
qualifies for earthquake resistance grade 3, which satisfies the long-life quality housing standard. We ensure a high level ofsafety by employing following earthquake-resistant technologies according to customer needs.
Earthquake-resistant technologies
New Power Column
This construction method increases the earthquake resistance of platform wood-frame construction by about
30% by installing a column in each of the four corners of a structure to reinforce them. The method wasdeveloped by Sumitomo Realty with cooperation from Kogakuin University professor emeritus Kenji Miyazawa,Dr. Eng., and Arup, a comprehensive engineering consultancy. (Patent No.4875721)
Super Power Wall StructureThis construction method adds single-ply walls to platform wood-frame structures to increase earthquake
resistance performance of outer walls by about 30%.
Seismic Damping System
The system reduces tremor by about 50% by using rubber that has unique viscoelasticity in dumpers to absorb
seismic energy without resisting it. It also makes homes sturdy against aftershocks.

Disaster Prevention for Hotels
Sumitomo Fudosan Villa Fontaine Co., Ltd., managing hotel operations, hasestablished a system to respond swiftly to minimize damage in the event of adisaster, in collaboration with the central management center for Sumitomo
Realty's office buildings that can respond 24 hours a day, 365 days a year.
For our foreign guests, we have prepared emergency broadcasts in four
languages to ensure a safe and secure stay.
In addition, Sumitomo Fudosan Villa Fontaine Co., Ltd. conducts fire andearthquake drills at all their hotels every month, not just the twice a year thatis legally required, to ensure practical implementation. The company also
holds its own contests to improve each staff member's awareness,knowledge and skills, and provides evaluations and guidance. These efforts
are part of our commitment, and we are working daily to create anenvironment where our guests can feel safe and secure.

13

Charging

PurchasePower
consumption

Society
Respect for Human Rights
Issue Awareness and Action Plans
The Sumitomo Realty Group recognizes that respect forhuman rights is one of the most important issues in conducting
its businesses. We protect the universality and inviolability ofliberty rights, social rights and related rights under theInternational Bill of Human Rights and other human rights
covenants. We also promote our business activities together
with our suppliers and other stakeholders while ensuring

compliance with labor standards and realizing diversity.
Moreover, we have established the policy above as a basic
policy that applies to all employees of the Group and arethoroughly implementing it. For our suppliers, we request
cooperation with our policy through our Sustainable
Procurement Guidelines.

Basic Policy on Human Rights
The Sumitomo Realty Group has established a basic policy regarding human right that applies
to all officers and employees of the Group.
The policy is based on UN Guiding Principles on Business & Human Rights.
1. Compliance with norms and decrees related to human rights

・We endorse and respect international norms regarding human rights, including the International Bill of
Human Rights.
・We comply with laws and regulations of the regions in which we conduct our business activities,
prohibiting child labor, forced labor, and human trafficking, and paying proper wages above the minimum
standard.
・We pursue methods that respect international principles in the event a conflict regarding human rights
arises between international standards and local laws and regulations.

2. Respect for human rights in the whole business・Through education and enlightenment, we prohibit discrimination and harassment for any reason,
including race, nationality, religion, gender, sexual orientation and gender identity, disability, social status,
age or medical history.
・We take measures such as improving working environment, to prevent overwork and occupational
accidents.

3. Scope of application

・The policy is applied to all officers and employees of the Sumitomo Realty Group.
・We expect our business partners to endorse this policy and our Sustainable Procurement Guidelines, andto promote the respect for human rights.

4. Implementation of human rights due diligence・We conduct human rights due diligence to prevent and mitigate negative impacts on human rights.
・We conduct continuous monitoring, and will take appropriate measures for improvement should any
issues arise within the system.

5. Education and training

・We conduct appropriate education and awareness building for all officers and employees, to ensure that
this policy is reflected in all of our business activities.

6. Remedial and corrective action

・In the event we detect a negative impact on human rights, we will take appropriate remedial and corrective
measures for the victims.

7. Dialogue with our stakeholders

・We review human rights risks and issues as appropriate, through dialogue with our stakeholders.

14Society
Respect for Human Rights
Management Structure
In order to promote sustainability across the Group, Sumitomo
Realty Group has established the Sustainability Committee
chaired by the Company's President to manage status ofprogress towards the targets regarding sustainability. Its
subordinate organization, the Sustainability Promotion Council
chaired by the Head of Corporate Planning Division, works to
identify and solve issues related to human rights.
Important issues are conferred with the Sustainability
Committee, and reported to the Board of Directors asnecessary.

In addition, the Internal Control Meeting (hosted by theCompany’s Internal Audit Department), which is also asubordinate organization of the Sustainability Committee,
monitors compliance promotion activities of the Group, such as
human rights, labor standards, etc. The Board of Directors
oversees the risk management in a system in which each risk
is monitored and addressed by the respective departments
and subsidiaries properly, and important matters are discussed
and determined at important meetings such as meetings of theBoard of Directors.

Initiatives
Human Rights
 Implementation of Human Rights Due Diligence
Sumitomo Realty Group is implementing its basic policy on human rights described on the previous page and conducts humanrights due diligence to prevent negative impacts on human rights through our business activities.
By assessing the human rights risks that exist in the value chain of its business activities, the Group has identified thefollowing human rights issues on which we need to focus our effort. We will conduct appropriate reviews regarding these issues
as necessary, through continuous monitoring.
1. Working environment for employees

2. Prohibition of discrimination and harassment inworkplaces

We maintain an environment where employees can work ina healthy and safe condition, under strict standards thatexceed legal requirements.

We thoroughly implement measures to prevent any kind of
discrimination and harassment in workplace.

3. Working environment for suppliers

4. Customers’ health and safety

We protect the health and safety of our suppliers’ employees
through training and other means, and request that our
suppliers maintain an appropriate working environment.

We conduct thorough quality control of the products andservices we provide, so that customers can use them in ahealthy and safe condition.

 Stakeholders and Human Rights
The Sumitomo Realty Group is committed to respecting thehuman rights of all stakeholders involved in its businessactivities. We not only educate our employees, but also
request all our stakeholders, including business partners, torespect human rights through our Sustainable Procurement
Guidelines and other means.

In all office buildings we manage, our employees directly
monitor the operations of suppliers to prevent human rights
violations. In addition, as part of an ongoing assessment of thehuman rights impact of our business activities, the Internal
Audit Department periodically checks the legal compliancestatus of each business department.

 Engagement with Business Partners
The Sumitomo Realty Group is committed to promoting
respect for human rights in collaboration with our various
business partners, and we regularly engage with them to thisend.
In December 2022, we once again requested cooperation of
our major business partners with the “Sustainable
Procurement Guidelines” established in 2020. Additionally, we
conducted a survey on each company's status of investigating

and assessing their human rights risks.
We found that many business partners were promoting
sustainable management in accordance with our guidelines,
and we confirmed their intent to make even greater efforts toinvestigate and assess human rights risks.
We continue engaging with our business partners, andpromote respect for human rights throughout the supply chain.

15

Society
Respect for Human Rights
Initiatives
Human Rights
 Initiatives for Foreign Technical Interns
The Sumitomo Realty Group recognizes the importance ofprotecting the human rights of foreign technical interns.
At Sumitomo Fudosan Villa Fontaine, a number of technicalinterns are engaged in work such as hotel room maintenance.

We have confirmed that the contractors who are their direct
employers pay appropriate wages and maintain a goodworking environment. In addition, we have been engaged in
the following initiatives.

Holding family briefings and gatherings in Vietnam

Consultation desk

In collaboration with the agency that places interns with us,
we regularly hold briefings and gatherings in Vietnam for ourinterns’ families and prospective interns. This initiative,
which involves direct interaction and briefings about workand life in Japan, is a unique approach not seen in othercompanies and has been highlighted by local media. Our
November 2023 briefing and gathering were highly praisedby the officers of the Department of Overseas Labor of
Vietnam and the Japanese Embassy in Vietnam, describing
it as a 'very rare and reassuring initiative’.

At the request of Sumitomo Fudosan Villa Fontaine, thecontractors have set up a consultation desk as aprecautionary measure, in case harassment or
discrimination incidents against foreign technical interns
arise. The desk caters to specific needs of the technicalinterns by offering consultation in their native languages. In
addition to accessing the whistleblowing desks available toall employees of the Sumitomo Realty Group, this allows
them to seek advice on various concerns without having toworry about the language barrier.

 LGBT Considerations
In its Basic Policy of Human Rights, the Sumitomo Realty Group prohibits any discrimination based on sexual orientation orgender identity. In order to prepare for potential incidents of discrimination, we have built a system that enables prompt action by
establishing an anonymous harassment consultation desk.

 Human Rights Training
The Sumitomo Realty Group works to raise awareness of human rights as it carries out its business activities. We provide all
employees with training on human rights and other issues when they join the Group and then once every year. Human rights
training including harassment prevention is provided separately for managerial personnel who require this for roles overseeing
business operations.
In addition, in order to be thoroughly acquainted with legal compliance and respect to human rights, a compliance handbook,which summarizes a set of procedures for dealing with each situation in a Q&A format, is posted on the Intranet at all times for
employees to check anytime.

 Whistleblowing System for Employee and Stakeholder
The Sumitomo Realty Group has established a whistleblowing system for the entire Group, business partners, and customers,
etc., which aims to enable early detection of compliance violations and appropriate response. In order to encourage active
consultation and reporting, we have designed the system to provide strict legal protection for those who report violations as wellas to allow them the option of anonymous reporting. In this system, we respond to not only clear compliance violations but also
potential violations. When a report is received, we have a system in place where the relevant departments and the Internal Audit
Department work together to respond towards resolution.
We have established a compliance system by preparing two points of contact for reporting; the Internal Audit Department,
which is independent of business divisions or other internal organizations, serves as the internal point of contact, and an
external law firm, which is independent of the management, serves as the external point of contact.
In addition, we have established consultation hotlines in each Group company’s Human Resources Department to provide
consultation on harassment and other issues related to the working environment.
The personal information of whistleblowers is kept confidential with strict legal protections, so they do not suffer any negative
consequences by contacting the consultation hotlines.
Should a compliance violation be identified, we take appropriate action and then work to prevent a similar situation fromreoccurring by alerting our employees through the intranet and other means. In addition, remedial measures are provided forvictims.

 Participation in “UN Global Compact”
The Sumitomo Realty Group signed the “UN Global Compact” on October 2020. It is working to ensure
human rights, endorsing and respecting the 10 principles of the UN Global Compact such as “Human
Rights,” “Labour,” etc.

16

Society
Utilization of Human Capital
Initiatives
Human Capital Our Unique Human Resource Investment Strategy that Underpinning the Sustainable Growth
The Company puts into practice the corporate slogan “Integrity
and Innovation” and is aiming for “employee-firstmanagement,” as well as “integrated group management,” toreturn the fruits of sustainable growth to employees first, basedon the ideas that employees are the source of enhancing thecorporate value through sustainable growth. For some time,
we have been actively promoting diversity based on therecognition that the presence of diverse perspectives andvalues reflecting a variety of experiences, skills and attributes

within the Company is an advantage that ensures thesustainable growth of the Company. Through efforts such as
securing personnel through career hires, implementing
evaluation systems based solely on ability and achievements
rather than seniority, and creating a salary system withmultiple job-specific wage structures, we have created aunique personnel system in Japan for realizing a highly diverse
and resilient organization.

 Reforming Our Personnel System to Transform Our Business Structure during the Business
Reconstruction Period
We launched our First Medium-term Management Plan (1997to 2001) as a reconstruction plan following the bursting ofJapan’s bubble economy. At that time, we faced a majordecline in profitability along with bad debts and excessiveinterest-bearing debt.
In that reconstruction plan, we sought to diversify our
financing, such as real estate securitization, and worked todevelop land that was not in active use, which represents raw
material for the real estate industry, into products. At the sametime, we discovered business channels such as our new builtto-order Shinchiku Sokkurisan remodeling business, whererevenue was generated by people without requiring up-front
investment. Through these efforts, we aimed to restore our
profitability.
During this transformation of our business structure, we
needed to bring in a large number of skilled experts (careerhires) from outside. We abolished the former seniority-based
personnel system and reformed our personnel system so that
it is focused on ability and achievements, such as by instituting
a commission-based payment system with high commissions.
These initiatives contributed significantly to the growth ofrevenue in our Shinchiku Sokkurisan remodeling and custom
home businesses.

We later expanded the application of this personnel system
to other businesses, such as condominiums, rental apartments,
hotels, and multipurpose halls, which create synergies bycombining physical and human capital. We have, as a wholegroup, adopted year-round mid-career hiring and switched to asalary system that is similar to a role-based system, whereannual salaries are determined based on the responsibilities
and achievements of employees across a wide variety of jobs.
We have positioned this personnel system at the core, whichcenters on career hires, , and it helped us provide even greater
added value in each business segment.
This personnel system has supported our businessexpansion. We have established a stable long-term growth
foundation underpinned by revenue from the office building
leasing business which primarily involves redevelopment in thecentral Tokyo area, while at the same time, establishingunique business styles in leasing-related businesses such as
rental apartments, hotels, and multipurpose halls as well as
mainstay businesses such as condominium sales, Shichiku
Sokkurisan remodeling, custom home construction, andbrokerage. To date, we have been enhancing our corporate
value through sustainable growth in this manner.

Given the effectiveness of this personnel strategy, we have
expanded our career hires of experts from sales andengineering positions to include internal corporate operations
positions. For our major job categories alone, we have createda personnel system, in which we currently have roughly 30
types of job-specific wage structures. The percentages ofcompensation, which consist of fixed and variable wages,

wage raise tables, and the like, are set based on thecharacteristics of the businesses and duties that are involvedin each job. For all jobs, our fair salary system performs
evaluations based primarily on the abilities (job
responsibilities) and achievements, regardless of their age,gender, or level of seniority. This system promotes thesustainable growth of our employees.

 Our Unique “Job-Specific Personnel System”

 Ongoing Usage, Further Expansion, and Development of Our Personnel System
As part of our management strategy for achieving sustainablegrowth, our current personnel system is effective not only forcontributing to the growth of our existing businesses, but also
for securing and fostering personnel who have the skills thatwill be necessary for new businesses and the futuretransformation of our business structure.
In order to continue expanding and developing thispersonnel system, we are reviewing and revising our flexible
salary standards in line with personnel markets for each17

specialist job. We are also enhancing our specialized skill
development education for each job so that we can develop alarger pool of essential personnel. In addition, we arepromoting the further development of our personnel systemthrough various initiatives, such as by providing careerdevelopment support via the Sumitomo Realty Group
Challenge System, which offers talented personnel
opportunities to transfer jobs within the Company.

Society
Utilization of Human Capital
Initiatives
Promoting Diversity
 Realizing a Highly Diverse Organization
For more than 20 years, we have been actively hiring people
with diverse careers at other companies as individuals who
can be immediately effective in the Company. Today, midcareer hires with work experience at other companies accountfor 90% of our employees at Sumitomo Realty & Development,
and are the source of the Company’s growth, realizing aflexible and resilient organization rich in diversity with various
perspectives and values reflecting a variety of experiences,skills, and attributes.

In addition, for increasing employees’ motivation, we believethat equal opportunity in promotion to managerial positions is
the most important factor, so we promote employees based
solely on their enthusiasm, ability and achievements,
regardless of gender or whether they were hired as new
graduates or as mid-career workers. As a result, mid-careerhires account for more than 70% of managerial personnel,
thus ensuring diversity in the managerial positions.

 Female Participation and Career Advancement
We are also actively working on the promotion of female
participation and career advancement. Firstly, we haveannounced a numerical target for the ratio of female
employees newly hired in sales and engineering positions that
support our front line operations (25% in sales and 13% inengineering positions) in order to increase the number offemale employees to be promoted in the future by increasing
the ratio of women in our workforce. Secondly, we are also
working to support women’s career development. For example,
in 2022, we implemented reforms to apply personnel systems

centered on job evaluation-based pay to all employees, andcreated a system that enables employees with medium- tolong-term gaps in their career owing to life events such as
childbirth and raising children to immediately assume positionsof responsibility with no disadvantage after returning to work.
As of the end of fiscal 2023, the ratio of female employees inmanagerial position was 10.4%. We are also actively working
to engage female officers. As of the end of June 2024, wehave three female officers: one outside director, one outside
corporate auditor, and one executive officer.

Female career advancement indicator

Number of employees
FY2021

FY2022

FY2023

Percentage of female
employees

31.8% (As of March 31, 2024)

Male (Persons)

9,042

8,941

8,794

Percentage of female
managers

9.7% (As of March 31, 2024)

Female (Persons)

3,998

4,016

4,104

Percentage of female directors& corporate auditors

15.4% (As of June 30, 2024)

Total (Persons)

13,04012,957

12,898Gender difference inaverage length of service

2.2 years

Percentage of newly hired
female employees

38.9%* Consolidated figures (As of the end of each fiscal year)(Male: 8.5 years, Female: 6.3 years)* Consolidated figures (As of the end of fiscal 2023)* The scope of data for length of service encompasses full-time employees.

Percentage of female employees in new hires

Sales
positions
Engineering
positions

FY2019FY2020

FY2021

FY2022

FY2023% in employment

24.6%

23.5%

23.8%

25.6%

25.4%

% in application

23.2%

25.8%

23.4%

22.8%

24.1%

% in employment

11.3%

12.5%

12.3%

10.2%

12.3%

% in application

12.4%

12.8%

12.0%

14.6%

15.9%

* Non-consolidated figures (As of the end of fiscal years)

18

Society
Utilization of Human Capital
Initiatives
Promoting Diversity
 Gender Pay Gap among Employees
We conduct hiring and salary increase for numerous
specialized jobs (around 30 for key jobs alone), and our fairsalary system performs evaluations based solely on theabilities (job responsibilities) and achievements of individual
employees within each job. While we implement our salarysystem founded on the principle of equal pay for equal work
regardless of gender, differences in wages between male andfemale employees have occurred due to differences inindividual careers and years of experience. We present thegender pay gaps by classifying into four job categories:
management, sales/planning, engineering, and assistant, as
well as by employment type, distinguishing between regularand non-regular employees, as follows.

Gender pay gap among employees by job category
Management(%)

Sales/Planning(%)

Engineering(%)

Assistant(%)

Sumitomo Realty & Development Co., Ltd.

74.2

88.5

83.9

96.5

Sumitomo Real Estate Sales Co., Ltd.

86.3

71.1

-

117.8

-

92.4

92.9

125.3

Sumitomo Fudosan Villa Fontaine Co., Ltd.

88.6

91.4

-

102.8

Sumitomo Fudosan Esforta Co., Ltd.

86.8

91.7

-

91.7

Izumi Restaurant Co., Ltd.

77.3

78.8

-

-

Sumitomo Fudosan Tatemono Service Co., Ltd.

* Figures for fiscal 2023
* Figures are for companies with more than 300 employees.
* "-" indicates either no applicable data, male only, or female only.

Gender pay gap among employees by employment typeAll employees(%)

Regular employees(%)

Nonregular employees(%)

Sumitomo Realty & Development Co., Ltd.

60.4

70.6

56.1

Sumitomo Real Estate Sales Co., Ltd.

48.1

48.7

82.3

Sumitomo Fudosan Tatemono Service Co., Ltd.

82.0

52.1

101.8

Sumitomo Fudosan Villa Fontaine Co., Ltd.

83.0

82.6

103.9

Sumitomo Fudosan Esforta Co., Ltd.

84.8

84.8

82.9

Izumi Restaurant Co., Ltd.

78.8

80.3

72.7

* Figures for fiscal 2023
* Figures are for companies with more than 300 employees.

19Society
Utilization of Human Capital
Initiatives
Promoting Diversity
 Childcare, Nursing Care Support
Sumitomo Realty has various support systems
in place, such as a childcare leave system thatexceeds legal requirements, in order to foster aworkplace environment that is supportive foreveryone, including those who give birth to achild and those with family circumstances.
Data on childcare and nursing care support
Number of employees who tookchildcare leave

237

Percentage of employees who
returned to work after taking
childcare leave

94.9

Number of employees working
shorter hours

259

Number of employees who took
nursing care leave

10* Consolidated figures for fiscal 2023.

Example of support systems
Maternity leave: 6 weeks before childbirth (14 weeks in case of multiple
pregnancy) and 8 weeks after childbirthParental leave before childbirth: 5 days from 6 weeks before theexpected due date
Paternity leave: Up to 4 weeks within 8 weeks after the birth of a childChildcare leave: Until the child reaches 3 years old (Extended from thestatutory '2 years old')Childcare support leave: Up to 10 additional days of paid leave for
employees with a child under 1 year old
Shorter working hours: Until the end of March when the child is in thethird grade of elementary school (Extended from the statutory 'under
three years old')
Nursing care leave: Up to a total of 93 days for each family member
who requires care
Flexible working hours
Work-from-home
Variable working hours

 Employment of People with Disabilities
The Sumitomo Realty Group actively hires people with disabilities. As of the end of March 2024, 2.47% of employees of Sumitomo
Realty Group were people with disabilities, exceeding the 2.3% required under the system on employment rate of persons withdisabilities.
We conduct hiring without discriminating age, gender or region. In order to make workplaces comfortable for people withdisabilities, we have installed multipurpose bathrooms and barrier-free elevators.

◆ Participating in the “Kanosei Art Project”
Sumitomo Realty is participating in the “Kanosei Art Project,” which TOPPAN Holdings Inc. has been promoting since 2018,as we endorse their approach of “going beyond offering support for people with disabilities to create sustainable initiatives
with them as business partners.” The project aims to showcase works by artists with disabilities in various products.
As the first project of our involvement, we displayed artists’ works on the walls of a temporary enclosure surrounding thebuilding site of Sumitomo Fudosan Osaki Twin Building East in Kita-shinagawa (Shinagawa Ward, Tokyo), from the end of2020 until the removal of the temporary enclosure.
The second project took place from April 2021 in the entrance lobby of Sumitomo Fudosan Chiyoda Fujimi Building, which
we manage in Fujimi, Chiyoda Ward.
Since June 2022, we have also displayed works in the reception area of our headquarters in Shinjuku NS Building.

<Second Project> Works displayed at entrance lobby of
Sumitomo Fudosan Chiyoda Fujimi Building<First Project > Artist: RINA
Title: Snow Leopard

20Society
Utilization of Human Capital
Initiatives
Promoting Diversity
 Expanding Opportunities for Elderly Employees
Sumitomo Realty is expanding opportunities for elderly employees to put their rich experience to work by hiring new employees
aged 60 or older and rehiring retirees.

 Promoting Diversity in Each Business
The Sumitomo Realty Group takes various measures to promote
diversity not just in its own organization but also in its businesses suchas office buildings, hotels, multipurpose halls and others.

Example of our initiatives
・Personal boxes or small lockers for women to keep personal belongings, installed at women’s bathrooms in new
office buildings
・Barrier-free facilities such as slopes and multipurpose bathrooms in compliance with Act on Promotion of SmoothTransportation, etc. of Elderly Persons, Disable Persons, etc. in all properties we develop・Day care facilities set up in some offices to support balancing childcare and work
・Floor maps and guides shown in multiple languages at large office buildings and hotels; Announcements on
intercoms are delivered in multiple languages

Labor Standards
The Sumitomo Realty Group is committed to carrying out its business in accordance with the following action plans regarding
labor standards.

 Hiring Activity
In hiring, the Sumitomo Realty Group provides fair
employment opportunities without discriminating individuals
based on race, religion, creed, gender, sexual orientation,
origin, region, etc. For students aspiring to work for us
upon graduation, we offer internship programs, in which
they have opportunities to experience various types ofworks.
Depending on the type of employment, for jobs where itis preferable to have certain certifications, such asarchitects, we do not necessarily require employees tohave such certifications at the time of joining the Company.
Instead, we provide training as well as subsidies for thecost of acquiring such certifications after they join the
Company. These initiatives contribute to expanding
employment opportunities for unqualified workers and their
growth.

 Right to Collective Bargaining and Freedom of
Association
The Sumitomo Realty Group complies with local laws andregulations and respects the right to collective bargaining andfreedom of association.

 Payment of Wages above Minimum Wages
The Sumitomo Realty Group pays all employees wages above
the minimum wage. The average annual salary of ouremployees in fiscal 2023 was ¥7,307 thousand, which issignificantly higher than the living wage level in Japan.

 Child Labor and Forced Labor
The Sumitomo Realty Group prohibits all forms of child laboror forced labor in compliance with the Children’s Rights andBusiness Principles and local regulations.

 Reducing Overwork and Preventing
Occupational Accidents
The Sumitomo Realty Group complies with local laws andregulations and strives to prevent overwork by reducing
excessive working hours. We also implement a range ofsafety measures to prevent occupational accidents.

21Society
Working Environment
Issue Awareness and Action Plans
The Sumitomo Realty Group believes it is important for a company’s sustainable growth to achieve the following two goals in its
working environment, and promotes health management.
1. Create an environment where employees can stay healthy, safe and lively, as well as maximize their potential
2. Enhance human resources, which form the foundation for a company’s growth, by actively working to develop employee skills

Management Structure
In order to promote sustainability across the Group, the Sumitomo Realty Group has established the Sustainability Committee
chaired by the Company's President to manage status of progress towards the targets regarding improvement of working
environment. Its subordinate organization, the Sustainability Promotion Council chaired by the Head of Corporate Planning
Division, works to identify and solve issues related to healthy and safe working environment.
Important issues are conferred with the Sustainability Committee, and reported to the Board of Directors as necessary.

 Setting Up Safety and Health Committees
The Industrial Safety and Health Act requires a workplace with 50 employees or more to set up a safety and health committee.
The Sumitomo Realty Group has a stricter standard than this statutory standard that requires each workplace with smaller
numbers of employees to set up a safety and health committee. The committee conducts surveys and deliberations on safety
and health in a process attended by members recommended by employee representatives.

Initiatives
Health and Safety Health Management and Promotion
The Sumitomo Realty Group takes following initiatives for employees’ health management and promotion.
Annual health checkup or comprehensive medical examination (expense subsidies) for all our employees;
オフィスフロア

Free-of-charge consultancy with medical specialists about mental and physical health;A discount system for employees to use the fitness clubs operated by Sumitomo Fudosan Esforta in support of their health promotion;
Smart watches distributed to insured persons who have received special medical guidance based on the results of their health checkup, andhealth maintenance and promotion programs provided utilizing their exercise and sleep data;
Medical checks and interviews by industrial physicians for employees who work overtime more than a certain amount;Free-of-charge influenza vaccination at our affiliated clinic;
Hotels we operate and a company retreat available to our employees at special rates for their mental and physical refreshment

 Quantitative Performance Management regarding Health and Productivity
Sumitomo Realty manages
employee health using third-party
verification and monitoring.
We manage performance using
quantitative indicators and takemeasures such as having
employees found to have issues
through stress checks receive
interviews with industrial
physicians. In fiscal 2023, weachieved our numerical targets forhealth management.

Health management indicators
FY2021

FY2022

FY2023

Targets

Percentage of employees who
received health checkup(or comprehensive medical
examination)

100%

100%

100%

(All employees receive either healthcheckup or comprehensive medical
examination)

Percentage of employees who
received stress checks*

89.7%

88.1%

89.4%

* Verified and monitored by SB Atwork Corp.

22

100%

Society
Working Environment
Initiatives
Health and Safety
 Recognized in the 2024 Certified Health & Productivity Management Outstanding Organizations
Recognition Program
Sumitomo Realty has been recognized by the Ministry of Economy, Trade andIndustry (METI) and Nippon Kenko Kaigi (Japan Health Council) as a 2024
Certified Health & Productivity Management Outstanding Organization under
the large enterprise category.
The Certified Health & Productivity Management Outstanding Organizations
Recognition Program recognizes large enterprises, SMEs, and otherorganizations by selecting particularly outstanding enterprises that are
engaged in efforts for health and productivity management, such as engaging
in initiatives to overcome health-related challenges in communities, or
promoting health-conscious activities led by Nippon Kenko Kaigi.

 Measures to Prevent Overwork
We implement the following measures to prevent employee overwork.
・Maximum overtime set at stricter levels than standard set by Labor Standards Act
・Warning about excessive overtime issued to employees and supervisors
・In principle, employees’ computers are shut down at 9 p.m.
・Requiring employees to obtain supervisor approval for use of PCs after 9 p.m. or on holidays
・Employees who have worked a certain amount of overtime are required to submit a medical questionnaire and beinterviewed by an industrial physician

 Realizing Safe Workplaces
The Sumitomo Realty Group has set its health and safety
policy as to “create a healthy, safe and energetic environment
for everyone to maximize his/her potential” across our
stakeholders including our contractors, and keeps working to
improve working environment.
Specifically, employees dedicated to safety management
regularly patrol and monitor construction sites and sites
managed by the Company throughout Japan and give
guidance or instruct corrections, as well as conduct safety risk
assessment for both existing and new projects’ operations inorder to achieve safe workplaces.
Important findings from these visits are reported at thesafety convention attended by all our staff engaging inconstruction work and business partners, while good examples
are shared so that the correct practices are thoroughly
implemented.
The Construction Safety Management Section works tomaintain and enhance safety, by recording numbers ofoccupational accidents per division and using them as
quantitative indicators, and analyzing their causes in detail tosend notices and guidance to prevent recurrence in the eventof occupational accidents or high-risk incidents. As a result,
there has been no fatal occupational accidents involving all of
our employees or first-tier business partners for works weoriginally contracted over fiscal 2018 to 2023.

* As of the end of fiscal 2023, none of our offices had received certification for OHSAS 18001 (an international standard for occupational health and safety
management systems).

 Health and Safety Training and Dialogue with Employees
The Sumitomo Realty Group provides training on health andsafety for our employees, contractors, and other suppliers.
In addition, in order to improve our occupational health andsafety environment by reflecting the opinions of front-line

employees in management, the Company’s President visitscompany sites throughout Japan to engage in dialogue withfront-line employees.

23Society
Working Environment
Initiatives
Enhancing Human Resources
In our personnel system, we have roughly 30 types of jobspecific wage structures for our major job categories alone.
The percentages of compensation, which consist of fixed andvariable wages, wage raise tables, and the like, are set basedon the characteristics of the businesses and duties that are
involved in each job. For all jobs, we regularly perform fairevaluations based solely on the abilities (job responsibilities)
and achievements of individual employees, regardless of theirage, gender, or level of seniority. Combined with sufficientdialogue, we are aiming to further enhance employee
motivation. Moreover, we are implementing initiatives topromote growth of each employee, such as expanding
specialized skill improvement education aimed at enhancing
abilities, and supporting the formation of new careers byproviding opportunities for internal transfers to competentpersonnel.
We believe that our unique personnel system is effectivelyfunctioning in improving productivity for sustainable growth.
With this understanding, we are striving to maximize added
value through the enhancement of human resources, alongwith further development and expansion of the system.

 On-the-job Training Training

We work to expand employees’knowledge and experiencethrough instructions bysupervisors and communication
with colleagues in the processof carrying out duties.

We work to expand the knowledge of
employees by conducting training
programs in a variety of fields, and informthem of the code of conduct suitable for
employees of the Sumitomo Realty
Group and ensure their compliance.

 The Sumitomo Realty Group
Challenge System

We provide a system in which its employees canvolunteer to take up the challenge of a new job.
The system provides opportunities for growth tohighly motivated employees and helps assign theright individuals to the right positions.

[Training conducted by the Sumitomo Realty Group in fiscal 2023 and details of the content (excerpt)]
Total annual training hours for all employees: 244,080; per employee: 19
Name

Participants

PurposeContents (Excerpt)

All employees

To raise awareness of health andsafety, compliance, etc., once per
year

・Work style reform
・Preventing harassment
・Ensuring compliance, whistleblowing system, etc.
・ESG and occupational healthManagerial
personnel

To raise awareness of harassment
prevention, etc., when managing
subordinates

・Training on how to appropriately handle labor management ofsubordinates, harassment, compliance violations, etc. usingcase examples

Job-specifictraining

Engineering,sales andcustomer center
employees

To acquire the necessary knowledge
and skills for each job

・Technical guidance, risk assessment methods and construction
methods (for engineering employees)
・Sales training (for sales employees)
・Customer service manners training, customer complainthandling training (for customer center employees)

New employee
training

All new
graduates andmid-career
employees

To acquire the manners, knowledge,
compliance, etc., required as an
employee of the Sumitomo RealtyGroup・Company history
・Business manners training
・Human rights training

Occupationalsafety training

All engineering
employees andsuppliers(contractors)

To increase safety awareness by
sharing examples of hazards andgood practices at construction sites,
etc., once per year

・Explanation of the Basic Plan for Occupational Safety
・Lecture by the head of the Labour Standards Inspection Office・Sharing and commendation of good safety practices
・Safety training

Advertisingcompliancetraining

All employees incharge ofadvertisingrelated
operations

To periodically raise awareness ofadvertising compliance・Announcement of the number of cases rejected in the previous
fiscal year for compliance reasons
・Sharing and educating using examples of rejected cases* Conducted by employees of the Advertising Section of the Public
Relations Department, which is responsible for internal auditingof internal advertising.

Skill developmenttraining

All employees

To acquire and/or improve skills
according to each employee’s needs

・Management
・Accounting

Certifications
training

Employees
eligible foracquiringcertifications

To assist in the acquisition ofcertifications necessary for work andto improve skills as a professional

・Providing the necessary training and subsidies for acquiringcertifications relevant to business. These include certifications
such as real estate broker, architect, financial planner, building
environmental hygiene management engineer andredevelopment planner.

Human resources
training
Managerial
position training

24

・Compliance training
・Occupational health training
・Job-specific training

・Languages
・Digital Transformation

Society
Product Safety & Quality
Issue Awareness and Action Plans
The Sumitomo Realty Group engages in business that isclosely related to people’s daily lives encompassing officebuilding leasing, sales and leasing of condominiums, realestate brokerage, custom homes and remodeling. We
recognize that product safety and quality is one of the mostimportant aspects of our business in terms of how it directly
affects people’s lives and property. We have thus far
maintained high levels of product safety and quality

underpinned by its fundamental mission to “Create even bettersocial assets for the next generation” under the corporate
slogan, “Integrity and Innovation.” With the aim of further
enhancing the levels of product safety and quality, we take onbusiness initiatives that entail cooperation with its suppliers,
design and construction companies and business partners
involved in building management.

Initiatives
Architectural Quality
 Managing Architectural Quality in the Contracting Business
Sumitomo Realty, as a lead contractor, implements the following initiatives to enhance the quality of design and construction incollaboration with suppliers in the housing construction business (custom homes and Shinchiku Sokkurisan remodeling) andother contracting businesses such as tenant construction.
• Using products and components that align with the Company’s product safety and quality standards as a general rule andupdating product lists each time in conjunction with suppliers• Engaging in construction quality control at each phase of work and inspection upon completion, on the basis ofconstruction standards for each projects• Performing periodic follow-up inspections after completion• Sharing problems and points of concern for construction management in a prompt manner through the use of a dedicatedinternal information sharing tool to provide guidance as necessary from employees who manage the process• Holding a monthly safety meeting attended by our employees and all contractors to share the previous month’s casestudies and customer survey results and providing guidance on appropriate construction methods• Holding an annual safety convention attended by our employees and all contractors to share the Group’s company-wide
quality management policies and initiatives and thoroughly promote a high awareness of quality• In the remodeling business, requiring new contractors to receive on-site training by experienced construction supervisors
for a certain period of time, and providing overall guidance on construction operations

 Managing Architectural Quality in the Condominium Sales BusinessIn the condominium sales business, we aim to offer high-quality condominiums by engaging in the following initiatives.
• Verifying initiatives involving quality control of design and construction companies• Ensuring that design and construction companies are familiar with and have a shared understanding of the Company’s
quality standards• Front-loading* of design and construction for each phase of work, based on past experience* Front-loading refers to the task of meticulously ensuring quality by verifying tasks involved at each phase of work extending up to completion, in conjunction
with design and construction companies at the initial phase of construction.

 Gaining Third-party Certifications for Architectural Quality
In its condominium sales, Sumitomo Realty acquires housing performance evaluation reports whereby a third-party organization
registered by the Minister of Land, Infrastructure, Transport and Tourism objectively evaluates housing performance.

25

Society
Product Safety & Quality
Issue Awareness and Action Plans
Advertising Quality
The Sumitomo Realty Group strives to conduct responsible advertising activities by providing appropriate training andestablishing an audit structure under the following advertising policy.

Advertising Policy◆ Under the slogan “Integrity and Innovation,” which expresses its corporate attitude, the Sumitomo Realty
Group places the highest priority on maintaining relationships of trust with its customers. With this in mind, weare committed to conducting responsible advertising activities.
◆ In our advertising and promotions, we thoroughly comply with the Act against Unjustifiable Premiums andMisleading Representations and other relevant laws and regulations. We strictly prohibit expressions that could
mislead our customers or that might violate corporate ethics.

Initiatives
Responsible Advertising Activities
 Training and Education
The Sumitomo Realty Group provides all employees with a compliance handbook that uses specificexamples to educate them of the laws and regulations concerning advertising materials.
In addition, the advertising audit section provides basic training regarding advertising regulations andexamples of problematic cases to employees in charge of creating advertisements at the time of theirassignment. Regular practical training is also conducted at least once per year, incorporating topical content
and actual problematic cases.
Furthermore, for employees who are not involved in advertising operations, we provide extra training asnecessary, for example, when they begin advertising activities that use new media such as social media.
Through these initiatives, we are working to instill an awareness of advertising compliance among all our
employees.

 Audit Structure
The Sumitomo Realty Group has established a systematic audit structure led by the Advertising Section of the Public
Relations Department to ensure that advertising materials are created in accordance with its policies. We conduct strict
compliance audits of all advertising materials based on our Guidelines for the Creation of Advertising Materials.
Based on the results of the audit, we take corrective measures prior to the release of any materials that are deemed torequire action. We also conduct a tiered evaluation based on the degree of importance of the correction and manage thisinformation as quantitative data. We have established a system for analyzing this data to identify cases that are likely to leadto inappropriate expression. We then reflect these cases into improvements to our advertising creation process.
Any improvements made, such as revisions or additions to rules, are shared with public relations staff in each department
at annual training programs to ensure consistency in our company-wide standards.
Advertising
Material
Advertising
staff in eachdepartment

Compliance
Audit* Led by theAdvertising Sectionof the Public
Relations
Department

Needs aCorrection

Passes Audit

26＊Correction Measures＊Implementation ofTiered Evaluation

Publishes

After
Correction＊Data Management＊Data Analysis

Reflected in
Improvements to theAdvertising Creation
Process

Society
Product Safety & Quality
Initiatives
Management Quality
 Quality Control of Building Management
Sumitomo Realty practices high-quality building management
by leveraging the expertise it has accumulated as an officebuilding owner. Employees of Sumitomo Realty directly control
management tasks and keep issues in check by performing
periodic maintenance and preventative repairs on structuresand facilities. The Company also develops frameworks foruniformly improving management quality whereby information
regarding incidents occurring with respect to individual
buildings is shared amongst the employees for all the otherbuildings.
For the comfort and peace of mind of our tenants, wemanage air and water quality in accordance with the Act on
Maintenance of Sanitation in Buildings. Additionally, we haveadopted a decentralized HVAC system as a standard,
contributing to enhanced convenience for our tenants.
When it comes to cleaning, managers of each building andcleaning staff from the Company conduct cleaning inspections
several times annually. The Company takes concrete action to
improve quality which involves precisely scoring inspection
results using an itemized points-based approach, clearlystating areas subject to improvement using quantitative
benchmarks, and revising cleaning plans accordingly.

 Quality Control of Condominium Management
Sumitomo Fudosan Tatemono Service Co., Ltd. undertakes
management services entrusted to it by condominium
management associations. It has established a framework thatenables it to quickly respond to the needs of management
associations and residents through its 24-hour customer
center, as well as having its employees patrol facilities on adaily basis.
Moreover, we also strive to bring about uniform managerial
standards and improve those standards. To such ends, we

maintain a training center capable of holding workshops andfacilitating case studies, upon having developed a detailed
manual of business operations.
In addition, we have set up websites exclusively forresidents, and offer a swift support service for promptly
addressing issues such as repairs of private areas ofcondominiums, and a cleaning service. These efforts to offer
greater lifestyle convenience and abundance have been wellreceived by residents.

 Customer Feedback
In managing and operating its buildings and condominiums,
the Sumitomo Realty Group incorporates opinions received

from its customers and opinions obtained through its customer
center in its product planning and renovation work.

27