SAMTYSUSTAINABILITYREPORT 2023

Sustainability Management

Environment

Social1

GovernanceContents

Contents

1

Sustainability Management
TOP Message

2

Sustainability Management

3

Materiality

4

Environment

SocialGovernance

Environmental Management

6

Human Rights and Diversity

16

Responding to Climate Change

6Creating a Comfortable
Workplace18

Renewable Energy andEnvironmentally Conscious Real
Estate9

Recruitment andHuman Resource Development 19

Sustainable Resource Use

12

Safety and Security

21

Contributions to Society

22

Social Data

26

Responding to Risks Related
to Environmentally Hazardous
Substances

12

Green Loan Framework

13

Corporate Governance29

Risk Management

31

Compliance

33

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social2

Governance

Based on this basic recognition, we have established the Sustainability Basic Policy in 2021 totake the initiative in solving social issues through our business activities and to live up to the
expectations and trust of each stakeholder. With a focus on the three aspects of Environment,
Social, and Governance, this policy aims to advance the sustainability management based on the

TOP Message

four themes of “Environmental Consideration,” “Coexistence with Local Communities,” “Being a
Company That Values People,” and “Thoroughness of Corporate Morals.” In FY2022, we identified
materiality issues by evaluating environmental, social, and governance issues based on the twoaxes: the importance to society and the environment and the importance to the business.
For the Samty Group, especially as a comprehensive real estate company that operates both
domestically and internationally, consideration for people and the environment is essential for

Yasuhiro Ogawa
Representative Director andPresident
Samty Co., Ltd.

the continuation of business. Under the theme of “coexistence of humans and nature,” theGroup develops and supplies energy- and resource-conscious properties and is actively acquiring BELS certification and other certifications and evaluations from external evaluators.
Throughout the process from property development and management to supply, we will
respond immediately to diversifying social demands and tenant needs to develop real estateand provide services that meet the characteristics of each region. By doing so, we will not only
pursue short-term profits, but also aim to increase sustainable corporate value from a medi-With the corporate philosophy of “Morals, Passion, Challenge, and Realization of Dreams,” theum- to long-term perspective.

Samty Group has been striving to realize the dreams of everyone involved in its business,
including not only the Group but also its customers and partners. We believe that working

The Samty Group will continuously strive to be a company that lives up to its stakeholders’toward sustainability, solving social issues, and realizing a sustainable society are the roles to be

expectations and trust while coexisting with local communities and growing with society. We

fulfilled by the Group.

look forward to your continued support.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social3

Governance

Sustainability Management
Sustainability Basic Policies
The Samty Group has established four basic
polices, which incorporate ESG (Environmental,
Social and Governance) indicators and disclosure
items. By enhancing its sustainability management,
which emphasizes the creation of social value, theGroup will take the initiative in solving social issues
through its business activities.
To put into practice its Management
Philosophy of “Realization of Dreams throughMorals, Passion, and Challenge,” the Group aims tocreate a future where everyone can grow with adream by conducting community-based activities
as a member of society, responding to the
expectations and trust of all stakeholders, andstriving to realize a sustainable society andenhance corporate value from a medium- tolong-term standpoint.

Four Basic Policies

Initiatives for Sustainability
As a priority theme to tackle for our group to continuously grow, we have identified our material
sustainability issues (Materiality).
As a comprehensive real estate company with operations across Japan, we recognize the importanceof the materiality identified this time and will strive to build a relationship of trust with all our stakeholders
and contribute to the sustainable development of society through our business activities, in line with our
objective of regional revitalization.
Materiality (P.4)

Our Approach (Practice of Management Philosophy)
Environmentally Conscious Real Estate Development
We support the sustainable development of communities with due consideration of energy, resources,and other factors by developing real estate and services that meet the characteristics of communities,
as well as by conducting soil contamination surveys and reviewing building materials.
Local Communities x Creation of Jobs
We provide safe, secure, and comfortable living through the development and ownership of quality
properties in each community. We also contribute to the development of local economies by providing
stable employment opportunities through recruitment and the supply of real estate in our nationwide
locations.

Environmental Consideration (E: Environmental)
We will work to develop real estate and provide services with “coexistence of human and nature” in mind,
while being aware of changes in social conditions and giving consideration to energy and resources.

Coexistence with Local Communities (S: Social)
In order to establish a relationship of coexistence and co-prosperity with local communities throughbusiness, we will contribute to community development as a member of society by seeking activities thatare suitable to the characteristics of each community.

Being a Company That Values People (S: Social)
We respect the human rights and diverse views of all people involved in the Samty Group and will contrib-

Contribution to Japan’s Tourism Industry
We will contribute to the further development of Japan’s tourism industry by enhancing the attractivenessof local communities through the development of world-class hotels for domestic and international guests
visiting the rich tourism resources of various regions of Japan.
Supporting People Who Take on Their Dreams
We aim to be a company that can convey a bright and cheery feeling throughout Japan by actively
supporting the activities and events of sports teams and players, and athlete alumni/alumnae acrossJapan, and providing support for people striving to achieve their dreams.

ute to the realization of a society in which the next generation can grow up with dreams.

Thoroughness of Corporate Morals (G: Governance)
Based on the Samty Group’s Management Philosophy and Code of Conduct, we will strengthen our
corporate governance system and ensure thorough risk management, while each employee will engage inbusiness activities with high ethical standards, aiming to become a company that is trusted by society.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social4

GovernanceMateriality
Sustainability Promotion Committee

Identification of Materiality

Our initiatives for sustainability include the establishment in July 2021 of the Sustainability Promotion
Committee, chaired by the Representative Director and President, and the formulation of the Sustainability Basic Policies, which serve as group-wide guidelines.

Materiality of the Samty Group
Environment

Board of Directors
ReportInstructSustainability Promotion Committee
SocialSecretariat: IR Office
ReportDevelopment and acquisition of talented personnel with passion● Promoting employee growth / personnel development● Acquiring talent to enhance business competitiveness● 
Diversification of lifestyle and work style / improvement of job
satisfaction for employees / work-life balance

Providing innovative and creative new products and services● Meeting diverse needs of customers and society● Regional revitalization● 
Contribution to a safe and secure society

Chairman: Representative Director and President
Vice Chairman: Director in Charge of Sustainability Management
Director in Charge of Real Estate Business,
General Managers of Business Administration Division,
Corporate Planning Department, and Architectural Design Department
Discussion, coordination, approval, revision/abolition,and recommendation of sustainability-related policies, targets, KPIs, and measures

Realization of a society where people and nature coexist in harmony● Worsening of climate change / promotion of a decarbonized society● Countermeasures for natural disasters (including earthquakes)

Governance

Ethical corporate activities● Enhancement of governance● Improvement of efforts regarding human rights

Steps in Identification of Materiality
Step 1

Step 2

Step 3

Step 4❶ Listing ofsocial issues❷ Priority rating❸ Identified key
sustainability issues
(Materiality)❹ Validation

InstructGeneral Managers of Architectural Design Department,
Human Resources & General Affairs Department,
Accounting Department, and Legal Department+
Members of Each Department, Related Group Subsidiaries

Planning, implementation, awareness-raising,promotion and management of sustainability-related policies, targets, KPIs and measures,
Handling other incidental matters related to sustainability

Listed 34 items of social
issues in the areas ofenvironment, society, andgovernance.

Performed priority ratings
for the listed social issues.

As a result of the priority
ratings, identified 10 social
issues as our Materiality.

Verify the validity of theMateriality evaluation process and analysis results
and review the Materiality
on a regular basis.

❶ Listing of social issues
We listed up 34 items of environmental, social, and governance issues in a broad range, referring to international frameworks and guidelines such as the GRI Standards*1 and SASB*2, as well as megatrends.
In the extraction process, we considered social and environmental changes, regulatory and policy
trends, and requests from stakeholders in the scope of business areas and their value chains that the Samty
Group is or may be related to.
*1 G
 RI Standards is a framework for reporting on the economic, environmental, and social impact of a reporting entity and explaining its contribution to sustainable development.
*2 S
 ASB stands for Sustainability Accounting Standards Board, a non-profit organization based in San Francisco, USA, which was established in
2011.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social❷ Priority rating
We performed priority ratings for the listed issues. In the Materiality analysis this time, we evaluated and prioritized the issues on two axes: the importance to society and the environment, and the importance to thebusiness.
In terms of the importance to society and the environment, each is quantified using five-point evaluation
criteria based on the requirements of ESG evaluation organizations. As for the importance to the business,
the five-point evaluation criteria are established according to the magnitude of profit lost or generated, i.e.,
financial impact, when each issue arises.

Governance5

Initiatives for FY2022 and Beyond
Going forward, we will set targets and KPIs for the identified Materiality and establish a management
system.
In addition, the Samty Group recognizes the need to periodically review the contents of Materiality
analysis in accordance with changes in the social and business environment.

❸ Identified key sustainability issues (Materiality)

Impact on society andthe environment

Large

Acquiring talent to enhance business competitiveness

Enhancement of governanceDiversiﬁcation oflifestyle and work style /Improvement of job
satisfaction for
employees / Work-lifebalance

Promoting employee growth /personnel development

Worsening of climate change /promotion of a decarbonized society
Meeting diverse needs ofcustomers and society

Contribution to a safe andsecure society

Improvement of eﬀorts regarding
human rights

Regional
revitalization

Countermeasures for natural
disasters (including earthquakes)❹ Validation
We verify the validity of the Materiality evaluation process and analysis results to confirm our Materiality thatshould be prioritized.
This identification process of Materiality is reviewed on a regular basis, and this review ensures the validity of the issue setting and the plans for them.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social6

Governance

Environmental Management
Basic Views on the Environment
As a comprehensive real estate company with operations throughout Japan and overseas, the Samty
Group is developing businesses that consider people and the environment, from planning and development with due consideration of energy and resources to operations and management that emphasize
coexistence with the local communities. We also promote energy- and resource-conscious real estatedevelopment and services under the theme of “coexistence of human and nature.” In cooperation withrelated stakeholders, we are working to further reduce environmental risks, such as climate change, andcontribute to the preservation of the global environment.

Environmental Management System
The Group is moving forward with efforts to establish a group-wide environmental promotion system toensure that the entire group works together to solve environmental problems. Regarding environmental risks, we plan to gather information on domestic and international trends and requirements fromvarious channels, including national and local governments, Keidanren (Japan Business Federation), andreal estate associations, to identify risks for the Group and assess their impact on our business, and to
study measures to resolve issues and disclose information on our activities.

Responding to Climate Change
Response to the TCFD Recommendations
TCFD refers to the Task Force on Climate-related Financial Disclosures, which was established by the
Financial Stability Board (FSB) at the request of the G20 to examine how to disclose climate-related
information and how financial institutions should respond.
In addition, the TCFD recommendations encourage companies and other organizations to understand the “risks” and “opportunities” of climate change that affect their business activities, and disclose
information on the categories of “governance,” “strategies,” “risk management,” and “indicators andtargets.”

mission of the company, but also leads to higher corporate value and increased profits. Meanwhile,
there is an increasing risk that the impacts of more extreme weather conditions, natural disasters andstricter environmental regulations on business are becoming more visible.
In order to address climate change, the entire group will work together to establish a group-wide
environmental promotion system.

Scenario Analysis
Scenario analysis is a method used to predict the effects of global warming and climate change, as well
as changes in the business environment due to long-term policy trends related to climate change, andused to examine how such changes could potentially impact a company’s business and management. In
an uncertain world, it is used to consider the business impact of situations where the assumptions
underlying previous business practices may undergo significant changes.
With the recognition that risks and opportunities associated with climate change can greatly impact
our business strategy, we have identified the risks and opportunities related to climate change throughthe following process, analyzed them using the 1.5°C and 4°C Scenarios, and evaluated their importance.
Process of Identifying Risks and Opportunities Associated with Climate Change
Process 1:

Comprehensively extracted the risks and opportunities associated with climatechange.

Process 2:

Sorted out the extracted risks and opportunities in terms of their relevance to ourbusiness and on a short-, medium-, and long-term time frame.

Process 3:

For the above risks and opportunities sorted out, performed a 5-point evaluation of the
impact on the Company and the likelihood of occurrence, and as a comprehensive evaluation, extracted items with high impact on the Company and high likelihood of
occurrence to identify important risks and opportunities.

The Group is considering the risks and opportunities posed by climate change to its business, based on
the TCFD recommendations, taking various measures to address them, and continuously disclosing
information about them.

GovernanceWe recognize that the climate change issue is an important management issue for the Group. We
believe that developing and operating buildings that do not burden the environment is not only a social
SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialSelection of Climate Change Scenarios
We analyzed and evaluated the risks and opportunities based on the 1.5°C Scenario which moves
toward a decarbonized society, and the 4°C Scenario in which global warming continues to progress.
We used SSP1-1.9*1*2 for the 1.5°C Scenario and SSP5-8.5*3 for the 4°C Scenario.

1.5°C Scenario

4°C Scenario

Scenario

Anticipated social environment

A Scenario where the world will accelerate
towards net zero emissions (regulations will
be widely introduced and successful in limiting
temperature rise, but with high transition risks)

The entire society will move towards decarbonization, successfully controlling temperaturerise through carbon taxes, strengthened regulations related to fossil fuels, and expanding
ethical consumption.

Scenario where greenhouse gas emission
regulations will not be strengthened and global
warming will be accelerated (due to limited
regulations, global warming will progress, andphysical risks will increase)

Limited regulations will result in frequent natural disasters caused by global warming, leading
to a high risk of business interruption.

7

Governance

Scenario Analysis Results< Risk >Riskclassification

Period of Occurrence
Risk
types

Policyandregulations

Transition
risks
Market*1 SSP (Shared Socioeconomic Pathways): Scenarios assuming future socioeconomic development trends.
*2 SSP1-1.9: Scenario to keep the temperature rise below 1.5°C under sustainable development.
*3 SSP5-8.5: Scenario in which no additional climate policies will be implemented.

Reputation

Drivers

Physicalrisks

Chronic

Midterm(~2030)Longterm(2031~)

1.5°C
Scenario

4°C
Scenario

Large

Small

MediumSmall●

Strengthening of regulations on GHG emissions and energy conservation, etc.

●Increased building and operation costs
due to the introduction of a carbon pricing
system●Increased new construction and renovation costs due to the strengthening of theEnergy Conservation Act, etc.

●

Growing environmental awareness●Costs of introducing renewable energy● hanges in needs of customers (tenantsCand home buyers, etc.)●

MediumSmall●

Increased costs related to development, etc.

●

Small

Medium●Impact on fundraising due to lack of recognition of the Group’s initiatives and businesses

●

Large

Small

●

●

I ncreasing occurrence of natural disasters(typhoons, floods, torrential rains, etc.)

●

Large

Large

●

 amage or functional interruption ofD
owned buildings due to disasters●

MediumLarge●

Interruption or delay of construction due
to disasters

●

Small

Large

●

 xtreme and severe weather events suchE
as windstorms and floods●

MediumLarge●

Impact on real estate appraisals due to the
manifestation of natural disasters

●

Small

Large

●

 ealth effects on employees and businessHpartners, etc. due to the increased numberof midsummer days● ecreased revenue and increased costsD
due to negative impacts on labor force●

 ffect on rents due to increasing needsEof tenants for BCP (Business Continuity
Planning) of their facilities

●

Small

Medium●Intensified regional selection and competition among products due to increasingneeds of homebuyers for Life Continuity
Planning (LCP)

●

Acute

Shortterm(~2025)Overall impact

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGreenhouse Gas Emissions of the Samty Group< Opportunity >Period of Occurrence

Opportunity
types

Energyandresource
efficiency

Products
andservices

Drivers●

 dvances in renewable and clean energy supplyA
technologies●

 ecreased costs through demand for products withD
lower GHG emissions●

Increased demand for products and services that
address disaster prevention and energy conservation (increase in asset values)●

8

Governance

Shortterm(~2025)Midterm(~2030)Longterm(2031~)●●●●

Growing customer appreciation of ZEH*1 and ZEB*2

Overall impact
1.5°C
Scenario

4°C
Scenario

MediumSmall

Medium

Small

Large

Small

Large

Small

MediumSmall

Unit: t-CO2

FY2021/11

FY2022/11

Scope 1

1,200

1,427

Scope 2

2,397

2,797

3,597

4,224

Scope �

�,���
�,���
�,���
�,���
�,���

Scope 1+2

Scope �(t-CO₂)

�

�,���

�,���

�,���

�,���

FY����/��

FY����/��

●MarketCreation of new markets that contribute to solving
climate change (diversification of business activities)● 
Increased opportunities for collaborative projects
with the government, local governments, privateorganizations, and others toward a decarbonizedsociety●*1 ZEH (Net Zero Energy House): General residence aiming for zero energy balance and energy conservation as well as energy generation*2 ZEB (Net Zero Energy Building): Buildings such as offices, factories, and schools that aim for zero energy balance in the energy consumed
within the building

Strategies
The Samty Group will strengthen its environmental management system to comply with environmental
regulations that will be tightened in the future.
Under the environmental management system, we will formulate action plans for decarbonization,
establish CO2 emission reduction targets, and acquire environmental certifications for our buildings.
We will promote sustainability management by actively carrying out facility updates on our owned
properties.

Introduction of Hydrogen Vehicles as Company Cars
In order to realize a decarbonized society,
the Group has introduced Toyota Motor
Corporation’s “MIRAI” fuel cell vehicle.
The vehicle runs on the power ofelectricity generated by hydrogen and emits
no exhaust gas, a cause of global warming,and thus contributes to the decarbonizationof company cars with long driving distances.

Risk Management
We have sorted out climate-related risks and opportunities on a short-, medium-, and long-term time frame.
Climate-related risks will be reflected in the Group’s strategies and addressed as one of our Group’s
key risks.

Indicators and Targets
Our company has set a target to reduce CO2 emissions (Scope 1 and 2) by 20.0% by the fiscal year
ending November 30, 2030, compared to the levels in the fiscal year ending November 30, 2022, in our
pursuit of achieving carbon neutrality by 2050.
We will proceed to expand the boundary of our data aggregation and calculation for Scope 3 emissions*Scope1: Direct greenhouse gas (GHG) emissions by the business operator itself (fuel combustion, industrial processes)*Scope2: Indirect GHG emissions from the use of electricity, heat and steam supplied by other companies*Scope3: Indirect emissions other than Scope 1 and Scope 2 (emissions by other companies related to the activities of the business operator)

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social9

Governance

Renewable Energy and Environmentally Conscious Real Estate
Acquisition of BELS（Building-Housing Energy-efficiency Labelling
System）Certification
BELS (Building-Housing Energy-efficiency Labeling System) is a system in which a third-party evaluation
organization evaluates and certifies the energy-saving performance of new and existing buildings. This is
the only third-party certification system that meets the obligation to make efforts to indicate energy-saving performance imposed on real estate developers, etc. under the Act on the Improvement of Energy
Consumption Performance of Buildings (Building Energy Efficiency Act), which went into effect in April
2016. It is a unified evaluation standard for all buildings, from ordinary buildings to residential buildings,
including condominiums, and is attracting increasing attention from society.
The Group will continue to actively utilize public environmental certification systems to ensure ahigh level of environmental friendliness in its development properties.

Property nameLocation

Completion

Numberof floors

Chuo-ku,
Kita Ichijo Nishi,
26-chome ProjectChuo-ku,Sapporo-shi

December 2024
(Scheduled)

10 floors
above
groundFukushima-ku,
Ebie 2-chome
Project

Fukushima-ku, Osaka-shi

January 2025
(Scheduled)

15 floors
above
groundSaga-shi, Tenjin
2-chome ProjectSag-shi, Saga

February 2025
(Scheduled)

14 floors
above
groundNakamura-ku,
Kamejima
1-chome III Project

Nakamura-ku, Nagoya-shi

April 2025
(Scheduled)

13 floors
above
groundNishi-ku,
Shinmichi 1-chome
Project

Nishi-ku, Nagoya-shi

May 2025(Scheduled)

15 floors
above
groundProperty nameLocation

Completion

Numberof rooms

Ibis Styles
Nagoya4-22-24, Meieki,
Nakamura-ku, Nagoya-shi

November 2020

284

Location

Completion

Numberof floors

For more information on the Building-Housing Energy-efficiency Labeling System (BELS), please click here.
T he Association for Evaluating and Labeling Housing Performance: Building-Housing Energy-efficiency
Labeling System (Japanese)

Rental Apartment
Property name

S-RESIDENCE
Kotoni Ekimae

Nakamura-ku,
Ibukacho Project

Nakagawa-ku,
Hatanocho Project

Location

1-9, 5-chome, Ichijo, Kotoni,
Nishi-ku, Sapporo-shi

Nakamura-ku, Nagoya-shi

Nakagawa-ku, Nagoya-shi

Completion

Numberof floors

March 2023

4 floors
above
groundJune 2024(scheduled)

7 floors
above
groundOctober 2024
(scheduled)

13 floors
above
groundRatingRatingHotel

RatingOfficeYodogawa-ku,
Nishmikuni
1-chome Project

Nakamura-ku,
Kamejima
1-chome II Project

Yodogawa-ku, Osaka-shi

Nakamura-ku, Nagoya-shi

October 2024
（Scheduled）

November 2024
(scheduled)

9 floors
above
ground13 floors
above
groundProperty nameXYMAX Hokkaido
Sapporo Odori
Building (Formerly
S-BUILDING
Sapporo Odori)

5-10 Odori-nishi,
Chuo-ku, Sapporo-shi

November 2020

Rating

10 floors
above
groundand 1
basementfloor*1 “Project” indicates a provisional name.
*2 The above list includes properties that have already been sold.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialUnder the theme of “coexistence of human and nature,” the Samty Group is developing initiatives that
contribute to the sustainable enhancement of corporate value through acquisition of environmental
certifications and green investments, by immediately responding to diversifying social demands andtenant needs while reducing our environmental impact by developing energy- and resource-conscious
real estate such as Green Buildings.

Acquisition of DBJ Green Building Certification
The Group has acquired the DBJ Green Building Certification for FY2021 from the Development Bank ofJapan (DBJ) for a total of 11 S-RESIDENCE properties developed in-house (including those already sold).
This certification program is designed to build a bridge between businesses, financial institutions, andinvestors through the evaluation of environmentally and socially conscious real estate (Green Building).
In addition to hardware specifications such as the environmental performance of real estate, we also
focus on software aspects such as operational management to visualize ESG investments, including older existing properties.

10

Governance

Acquisition of CASBEE Certification
CASBEE, or the “Comprehensive Assessment System for Building Environmental Efficiency,” allows for evaluations aligned with the lifecycle of buildings, including planning, new construction, existing structures, andrenovations. It is a system that comprehensively assesses the environmental performance of buildings,
indoor environments, and the reduction of impacts on the surrounding environment. The evaluations aremainly categorized into “CASBEE for Building” for newly constructed or renovated buildings, “CASBEE forReal Estate” for existing structures, and “CASBEE for Wellness Office” targeted at office buildings.
For more information on CASBEE Certification, please click here.
CASBEE Certification(Tentative name) The SAMTY Nagoya-shi Nakamura-ku Noritake 1-chome Office
New Construction Project

DBJ Green Building Certification (Japanese)

S-RESIDENCE Nipponbashi QualierStarted In-house Power Generation with Solar Panels Installed on
the Hotel Rooftops

Buildings with excellent environmental
and social considerations

In Kyoto, which attracts many domestic and international visitors for tourism and business purposes, weare carrying out a decarbonization initiative to become self-sufficient in electricity by using solar power
generation and storage systems installed on the rooftops of our five hotels. The generated electricity isstored and used for lighting and air conditioning of the offices and parking lots, and power consumption
during the day is covered by the in-house power generation system. In the event of a power outage, thissystem can supply power as an emergency power source and help ensure business continuity.

List of Hotels with Solar Power Generation Systems
Installed (as of September 2022)●

S-PERIA Hotel Kyoto
Mercure Kyoto Station● Agora Kyoto Karasuma● Agora Kyoto Shijo● Oakwood Hotel Oike Kyoto●

Solar panels installed on the rooftop of Oakwood Hotel Oike Kyoto

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialDeveloping Clean Energy Business Utilizing Owned Land
We have installed solar power generation facilities on our land in Yamatokoriyama-gun, Nara Prefecture,and have been supplying (selling) electricity to Kansai Electric Power Company since April 2015. The
facility generates an average of 37,523 kWh per month, which is more than double the average monthly
electricity consumption of 15,261 kWh at our office (calculated from the annual consumption of 183,134
kWh in FY2020). We can say that the electricity used for our offices is provided by our own solar power
generation and will continue to develop projects that promote the supply of clean renewable energy.

11

Governancesource of income in depopulated rural areas in southern Italy, the project has established a coexistence
and co-prosperity relationship with the local communities, as sheep grazing around the windmills leads
to weeding.
From FY2022 onward, we plan to actively make ESG investments related to global green bonds
and social bonds in cooperation with a wide range of companies in Japan and overseas, thereby
contributing to building a sustainable society.

Overview of Solar Power Generation System on Yamatokoriyama Land
We installed solar panels on our land and began selling electricity on April 22, 2015.
Location(lot number)Area(public registry)

345, 259-1, Shigicho, Yamatokoriyama, Nara
Prefecture
5,046.99m2 (1,526.71 tsubo)

Number ofpanels

1,488

Recipient ofpower

The Kansai Electric Power Co. Inc.

Power
generation
performance

Wind power generation projects near the site●

 43,319kWh for 2021
4433,776kWh for 2020
● 439,423kWh for 2019
● 464,935kWh for 2018
● 454,838kWh for 2017●

Establishment of ESG Investment Fund and Investment in Green Bonds
In response to the recent growing interest in ESG investments,
our group company, SAMTY ASIA INVESTMENTS PTE. LTD.
(located in Singapore), has established a fund to manageinternal funds. The first green bond, issued by a renewableenergy company, targets investments in wind power generation projects in Italy. As renewable energy is attracting more
attention than ever in Europe due to the recent situation in
Ukraine, we believe that this is a beneficial investment fromthe perspective of energy security. In addition to being a new

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialSustainable Resource Use
The Samty Group is making efforts to reduce single-use plastics and identify and manage environmental
pollutants to solve social issues such as resource depletion and increasing waste volumes, thereby
contributing to the realization of a sustainable society while also aiming to increase the value of its
assets.

Initiatives to Reduce Single-use Plastics
In support of the concept of the Act on Promotion of Resource Circulation for Plastics (enforced in April
2022), which encourages the rational use of one-way plastics, the Group is working to reduce single-use
plastics at some of the hotels it operates. Hotel toiletries items (toothbrushes, razors, hairbrushes, body
towels, cotton swabs, etc.) that were previously placed in each guest room are now placed together by
the front desk, and guests are asked to take only what they need. By switching to this style, we aimed to
optimize the quantity of plastic items used. Moreover, some of our hotels are working to achieve zeroplastic items in all guest rooms, and we will strongly make efforts to shift to a recycling-oriented society,aiming to further reduce plastic items.

S-PERIA INN Nihombashi Hakozaki

12

Governance

Responding to Risks Related toEnvironmentally Hazardous Substances
In acquiring land for development and income-producing properties, the Samty Group investigates thepast use history, and if soil contamination is suspected, voluntarily conducts soil surveys in-house andby specialized research institutions. When soil contamination is confirmed, we take appropriate measures such as reporting to the local government and removing or containing the contaminants inaccordance with the Soil Contamination Countermeasures Act and other related laws and regulations toeliminate the environmental impact and prevent health damages caused by soil contamination.
Similarly for existing properties, we conduct pre- and post-inspections for the use of building materials
and equipment containing asbestos, PCBs, and other hazardous substances in the structure, and whenhazardous substances are identified, we appropriately remove or contain such substances.

Enlarged view of the plastic toiletries
items

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social13

GovernanceGreen Loan Framework
Samty Co., Ltd. has formulated the Green Loan Framework*1 to further promote its sustainability
initiatives and contribute to the realization of a sustainable environment and society through financing
investments that contribute to solving environmental problems (green finance), as well as to expand theinvestor base interested in ESG investments and strengthen its stable fund-raising base.
The Framework is based on the Green Loan Principles 2021 (LMA*2, APLMA*3, LSTA*4) and theGreen Loan and Sustainability Linked Loan Guidelines 2022 (the Ministry of the Environment) andconsists of the following four elements. The Samty Group will conduct green loan procurement in accordance with this framework.

(1) Green Eligibility Criteria 1 (Green Building)
Buildings that have obtained or are scheduled to obtain, as of the drawdown date of the loan, a valid
environmental certification by a third-party certification body for any of the following i) to iii)
ⅰ . S rank, A rank, or B+ rank in CASBEE Evaluationⅱ . 5 stars or 4 stars or 3 stars in DBJ Green Building Certificationⅲ . 5 stars or 4 stars or 3 stars in BELS Evaluation(2) Green Eligibility Criteria 2 (Energy Conservation)
1.Use of raised funds
2.Project evaluation and selection process
3.Management of raised funds
4.Reporting*1 A green loan framework is developed for each project, as needed.
*2 LMA: the Loan Market Association*3 APLMA: the Asia Pacific Loan Market Association*4 LSTA: the Loan Syndications and Trading Association

What is a Green Loan?
Green loans are used by corporations and local governments to finance domestic and international
green projects. Green Loans are characterized by (1) the use of funds is limited to green projects, (2) thefunds are tracked and managed, and (3) the transparency is ensured through post-financing reporting.

1. Use of Raised Funds
The funds raised under the framework will be used to finance the development and purchase ofproperties or projects that meet the following Green Eligibility Criteria 1, to finance renovation andother work that meets the following Green Eligibility Criteria 2, or to refinance the borrowings required
for these projects. Building uses in the projects include office buildings, rental housing, hotels, and commercial facilities.

Renovation work, etc. that fulfills any of the following i) to iv)
ⅰ . Renovation work for a building that meets any of the Green Eligibility Criteria 1, with the intentionof improving the star rating or rank of each certification standard by one or more levels
 enovation work for a building that does not meet any of the Green Eligibility Criteria 1, with theⅱ. Rintention of improving the star rating or rank of each certification standard by at least one level,
and meeting the Green Eligibility Criteria 1 after the renovation
 enovation work that can reduce either energy consumption or greenhouse gas emissions by
ⅲ. R
30% or more
ⅳ . Installation or acquisition of equipment related to renewable energy
Green Eligibility Criteria 1 falls under the category of “Green Buildings” and Green Eligibility Criteria 2
falls under the category of “Energy Conservation (Energy Efficiency),” which are illustrated in the Green
Bond Principles (2021) by the International Capital Market Association (ICMA).
When the funds are allocated to refinance a project that meets either Green Eligibility Criteria 1 or 2,
refinancing within three years from the initial fundraising is targeted.
When refinancing the same project with multiple Green Loans, the elapsed years of the asset andthe amount to be refinanced will be disclosed, and the long-term environmental improvement effects
will be evaluated.

(3) Negative Impact
Depending on the property, a potential negative impact on environmental and social aspects may occur.
If a negative impact on environmental and social aspects occurs, our policy is to reduce the environmental burden as much as possible and to give consideration to the negative impact on environmental
and social aspects by forgoing investment in the property or taking corrective measures to improve thesituation.
In addition, during the operational period of existing properties, we will regularly monitor thenegative environmental and social impacts, as well as reduce such impacts and increase the value of theproperty.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social2. Project Evaluation and Selection Process

14

Governance

4. Reporting(1) Criteria for Project Evaluation and Selection(1) Outline of Disclosure

The environmental goal that the Group aims to achieve through its business operations is the mitigationof climate change. Each of the criteria for selecting green loan targets under this framework is expected
to have a high environmental improvement effect*, and financing through this loan is implemented inaccordance with the Group’s basic sustainability policies.

The outline of the reporting is as follows.
Disclosures on Eligible Projects(Disclosing a separate outline for each financing)* Including CO2 reduction effects, etc.

(2) Project Evaluation and Selection Process
In selecting individual projects, we have established our eligibility criteria and make the final decision
after confirming the project’s compliance with national environmental regulations, acquisition of various
permits and authorizations, negative environmental and social impacts, and environmental conservation measures.

Fundallocation
status3. Management of Raised Funds(1) Method of Managing Raised Funds
Management of green loans procured under this framework is carried out by our Finance Department.
The funds are tracked and managed by using accounting systems and ledgers to ensure that an amountequal to the raised funds is allocated to the business project. The funds already allocated and not yet
allocated to the project will be managed by using electronic files.

(2) Method of Applying Unallocated Funds
If there is an unallocated amount of funds raised through the Green Loan, we will maintain an amountequal to the unallocated amount in cash or cash equivalents. If unallocated funds arise from the sale ofassets, etc., they will be reallocated to other projects that meet the eligibility criteria.

●

Acquisition price of the property, price of the renovation work, etc.

●

Amount of green loan financing●

Amount of unallocated funds and estimated time of allocation

Once a year
until the fundallocation iscompleted

Reported tolenders andannounced on
the Company’s
websites● ype, rank, and acquisition date of the green building certification (if theTcertification is planned, the status of progress in acquisition)●

Electricity consumption and CO2 emissions of the green eligible asset

Once a year
until the loan isfully repaid

Reported tolenders andannounced on
the Company’s
website[Energy Conservation]

If unforeseen circumstances*1 occur and the environmental improvement effects initially anticipatedcannot be achieved*2, we will disclose how we will respond thereafter.

 ame of the property, project, or renovation work (Specify whether newNor refinancing)

Disclosure
Method[Green Building](3) Response to Unforeseen Circumstances*1 Including damage to buildings due to disasters or accidents.
*2 Including cases where green building certification cannot be obtained as planned.

●

Disclosure
TimingEnvironmental
improvement
effectIn the case of i) or ii):●

Type and rank of the acquired environmental certification (if the certification is planned, the status of progress in acquisition)

In the case of iii), the value before and after the renovation work or the
reduction rate of either of the following indicators:●

Energy consumption●

Greenhouse gas emissions

In the case of iv), the value or reduction rate of either of the following
indicators:●

Amount of electricity generated●

Greenhouse gas emissions

If there is a major change in the plan for the allocation of raised funds, or a major change in the statusof the allocation or the subject facilities after the allocation, we will disclose such information as appropriate.

(3) Document Management Method
Documents, etc. that serve as evidence related to the raised funds will be properly managed in accordance with our internal rules and regulations.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social(2) Outline of Green Building Certification
ASBEE Evaluation and Certification
System15

GovernanceGreen Loan Financing

DBJ Green Building
Certigication System

BELS

Certification systemthat was established in 2011 as an
initiative to support
environmentally andsocially conscious realestates and businessenterprises that own
and operate such realestates

BELS (Building-Housing Energy-efficiency Labeling System) is a system
in which third-party evaluation organizations evaluate and display theenergy conservation performanceof buildings and was launchedin April 2014 for non-residentialbuildings. Currently, the scope ofcoverage has been expanded toinclude residential buildings, andthe system is operated as one of
the third-party certifications in theguidelines for the labeling of building energy efficiency and conservation performance based on Article
7 of the Act on the Improvement ofEnergy Consumption Performanceof Buildings (Building Energy Efficiency Act).

Reporting of fund appropriation status
Borrowing status with Green Loan

Details of
the certification
systemRatingconditions

CASBEE (Comprehensive Assessment
System for Built Environment Efficiency) isa system for comprehensively evaluating
the quality of buildings, including not only
environmental considerations such as energy conservation and the use of materials
and equipment with smaller environmentalloads, but also features such as interior
comfort and landscape considerations.

BEE (Building Environmental Efficiency)is calculated using the following formulabased on the scores of each evaluation
item of Quality (environmental quality andperformance of buildings) and Load (reduction of environmental load of buildings).
Environmentalquality /performance
Q (Quality)

・Interior environment
・Service performance
・Exterior environment(within the premises)

Environmentalload
L (Load)・Energy・Resources & materials
・External environment

BEE

●

Rank

S (Superior)
A (Very Good)
B+ (Good)● B- (Slightly Poor)● C (Poor)●●

Comprehensive evaluation that includes
not only the environmental performanceof the property,
but also tenant/user comfort, risk
management such as
disaster prevention
and crime prevention,
consideration for thesurrounding environment and community,and collaboration
with stakeholders

The evaluation method is based on
the building envelope performanceand primary energy consumption,
following the energy-saving standards.

Rating by the numberof stars on a five-tierscale

Rating by the number of stars on a
five-tier scale

Lender

Procurement
amount(borrowing
amount)

AllocatedamountUnallocatedamountLoan
drawdown
date

Funding route

Third
party
Organization●

 HE SHIGA BANK,
T
LTD. (arranger)
The Ehime Bank,Ltd.
● 
The Shikoku Bank,
Ltd.

2,700
million yen

1,070
million yen

1,630
million yen

January
31, 2023

Funds fordevelopment ofgreen buildings
with environmental
certification

R&I

8,630
million yen

6,400
million yen

2,230 August 31,
million yen
2023

Funds fordevelopment ofgreen buildings
with environmental
certification

R&I he North PacificT
Bank, Ltd.

500
million yen*170
million yen

330
million yen

October
31, 2023*

Funds fordevelopment ofgreen buildings
with environmental
certification

R&I

Total

11,830
million yen

7,640
million yen

4,190
million yen

-

-

-

●

●

 IZUHO BANK,LTD.
M(arranger)
THE SHIGA BANK,LTD.
● 
The Bank of Iwate,Ltd.
● 
The Bank of
Nagoya, Ltd.
●●* The procurement amount from The North Pacific Bank, Ltd. is the total borrowing amount (planned), and the Loan drawdown date is the initial
drawdown date.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social16

Governance

Human Rights and Diversity
Human Rights Policy
The Samty Group recognizes that its business activities may have potential or actual impacts onhuman rights.
We respect the human rights as set forth in the internationally recognized “International Bill of
Human Rights” and the International Labour Organization’s (ILO) “Declaration on Fundamental
Principles and Rights at Work.” We also conduct our business activities in accordance with the “United
Nations Guiding Principles on Business and Human Rights.”
We commit to understanding and complying with laws and regulations relevant to our business operations
in all countries and regions where we conduct our activities. In the event that local laws and regulations
differ from or conflict with international human rights standards in a given country or region, we will seek torespect internationally recognized human rights to the fullest extent possible within local laws and regulations.

Scope of Application

Our Human Rights Policy applies to all officers and employees of each company within the Group. In
order to realize our commitment to human rights in our business activities, we also expect ourbusiness partners to understand and support this policy.

Supervision

The Board of Directors of Samty Co., Ltd. assumes the responsibility for the commitment to humanrights and overseeing the initiatives in this regard.

Implementation of Human Rights Due Diligence
We conduct due diligence in accordance with the “United Nations Guiding Principles on Business andHuman Rights” to identify, prevent, and mitigate any negative human rights impacts associated withour business activities.
In addition to ensuring that we do not violate human rights ourselves, we strive to prevent our
stakeholders, including our business partners, from contributing to human rights abuses. If we arefound to have caused or contributed to human rights abuses, we will take corrective action.

Human Rights Issues Related to Business Activities
Discrimination
We respect individual human rights and diversity. We do not engage in discriminatory practices basedon nationality, race, ethnicity, religion, ideology, gender, age, disability, gender identity, sexual orientation, employment status or any other characteristic protected by the laws of any country or region.
We also refrain from any actions that undermine the dignity of individuals.
Harassment
We do not engage in any behavior, whether verbal or physical, that harms or injures others, including
any form of harassment.
Forced Labor and Child Labor
We do not engage in forced or child labor. We also do not tolerate any form of modern slavery,
including human trafficking.

Freedom of Association and Collective Bargaining
We respect the right to freedom of association and collective bargaining in accordance with the laws
and regulations applicable in the countries and regions where we conduct our business activities.
Labor Safety and Health
We review the laws and regulations concerning workplace safety and health, along with their implementation, to provide a safe and healthy work environment.
Working Hours and Wages
We comply with all laws and regulations regarding working hours and wages applicable in the countries
and regions where we conduct our business activities. We strive to ensure that employees receive wages
that enable them to meet the minimum standard of living.
Impact on the Supply Chain
We are committed to promoting human rights among our business partners and throughout our
supply chain. We share our human rights policy with suppliers and assess and evaluate their compliance with these principles.

Complaint Mechanisms
We establish and maintain mechanisms and points of contact, available at all locations where we conduct business, to enable employees and business partners who have experienced human rights
abuses to report their concerns at any time. We also implement a system that allows for anonymous
reporting. We continually identify and address the human rights impacts of our business activities
and work to take corrective action.
We are committed to not retaliating against employees and stakeholders who make reports, including whistleblowers. We strictly manage personal information and maintain the confidentiality of thecontent of reports. We view these mechanisms as an integral part of increasing transparency in ourbusiness activities and strengthening mutual trust with our stakeholders.

Education and Training
To disseminate this human rights policy and ensure compliance, we will translate the policy into theappropriate language used in the countries or regions where we operate. We will provide ongoingtraining and education to all officers and employees.

Monitoring and Reporting
We will disclose the progress of our efforts to disseminate the human rights policy and initiatives topromote respect for human rights through communication channels such as the Samty Groupwebsite.
This policy was approved by the Sustainability Promotion Committee on January 25, 2024
Established on January 25, 2024
Yasuhiro Ogawa
Representative Director and President
Samty Co., Ltd.
SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialInitiatives to Prevent Discrimination and Harassment
For the prevention of sexual harassment and power harassment, which have become social issues, theGroup provides training and awareness-raising programs to prevent discrimination and harassment,such as holding harassment prevention seminars by our legal advisors and outside consultants. To
strengthen response measures, we have formulated a Compliance Manual, which also covers theprevention of harassment related to pregnancy, childbirth, childcare leave, nursing care leave, etc., andestablished and are operating internal and external reporting and consultation services.

Initiatives for Women’s Advancement
The Group focuses on creating a workplace environment in which a diverse workforce, regardless ofgender, can play an active role, leading to greater satisfaction for all employees. Especially for women,
we have formulated childcare leave rules, and are working to establish various support systems (childcare leave benefits, Mom & Dad Child Care Leave Plus, shorter working hours for childcare, etc.) to
encourage women to be active while giving birth and raising children. Aiming to increase the ratio of
female managers, we will continue to respect the diversity of our employees, further raise awarenesswithin the company, and promote the creation of a corporate culture in which a variety of humanresources can play active roles.

Governance

17

Advancement of People with Disabilities
The Group is promoting the employment of para-athletes with the aim of creating a society in which
everyone can support each other through sports, regardless of their disabilities.
As our main support, we cover the activity expenses of the para-athletes and provide them with anenvironment in which they can concentrate on their competitions. Currently, the Group employs threeathletes (of deaf swimming, deaf table tennis, and wheelchair rugby). We will continue to support theactivities of these athletes and contribute to the development of sports for the disabled and therealization of a symbiotic society.
Athlete Employees

List of Support Systems
hildcare Leave
Benefits

A system that allows employees who take childcare leave (including childcare leave at birth) andmeet the eligibility requirements to receive childcare leave benefits of 67% of the wage at the startof the leave (50% after 180 days) in principle

Mom & Dad Child
Care Leave Plus

A system that allows fathers as well as mothers to take childcare leave to participate in childcare,extending the previously one-year period of childcare leave by two months until the child reaches
one year and two months of age

Childcare Leave at
Birth

A system allows male employees to take up to two divided leaves of absence of up to four weeks
within eight weeks from the birth of a child, as one of the measures to encourage men to takechildcare leave

Shorter Working
Hours for Childcare

A system that allows employees to reduce their prescribed daily working hours to 6 hours per day
when taking care of a child up to the completion of the third year of elementary school

Limitation on
Overtime WorkA system that enables employees to request a limitation on overtime work to 24 hours per monthor 150 hours per year when taking care of a pre-elementary school child

Limitation on Late
Night WorkA system that enables employees to request a limitation on late night work from 10:00 p.m. to 5:00
a.m. when taking care of a pre-elementary school child

Limitation on ExtraWork

A system that enables employees to request a limitation on extra work when taking care of a childunder the age of threeChild Nursing Care
Leave

A system that allows employees to take up to five days (10 days for two children) of leave per year
to care for a sick or injured child or to have the child receive vaccinations or medical checkups(hourly leave is also possible) when taking care of a pre-elementary school child

Babysitter Subsidy
System

A system to subsidize a portion of babysitter fees to support the work and childcare balance ofexecutives and employees raising small children, etc., adopting the Babysitter Usage Fee Subsidy
System implemented by the Cabinet Office and All Japan Childcare Services Association
SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGovernance18

Creating a Comfortable Workplace
Workplace Environment Improvement Policy
The Samty Group believes that the cornerstone of sustainability management is creating anenvironment in which employees can work in a rewarding and long-lasting manner. To this end,
we aim to create a workplace where every one of our diverse employees, regardless of gender,
age, nationality, etc., can work long-term while balancing work and life and demonstrating theirindividual abilities.
To achieve this, we prioritize the promotion of Diversity and Inclusion (D&I) and actively expand
support policies and systems to accommodate life events that enable work-life balance. We arecommitted to enhancing our policies to support diverse work styles.

Initiatives for Employee Health, Safety and Wellness (Health Management)
We recognize that consideration of employee health and the work environment is an important management issue that can lead to profit opportunities and have implemented extensive healthcare
management programs from the perspective of “health management” by providing subsidies of up to
100,000 yen for comprehensive medical examinations for employees and managers aged 45 and older.
In addition, to prevent employees from developing mental health problems, we conduct stresschecks for all employees in cooperation with medical institutions. For employees who are deemed torequire special medical treatment or therapy, we recommend them to consult with a medical specialist
or affiliated specialized institution.

Internal Recruitment System

We are committed to advancing the following initiatives:
1.Promoting Diversity and Inclusion (D&I)
2.Supporting work-life balance
3.Maximizing the full potential of individual capabilities
This policy was approved by the Sustainability Promotion Committee on January 25, 2024
Established on January 25, 2024
Yasuhiro Ogawa
Representative Director and President
Samty Co., Ltd.

Work-Life Balance Initiatives
From the perspective of compliance with the Labor Standards Act and other laws and regulations, aswell as employee health management, we promote the development of various systems, such as
childcare leave, to provide our employees with work styles that ensure a good work-life balance. Remote
work is also introduced for employees infected with COVID-19 or other infectious diseases, as well as for
employees who are raising children, etc., as needed at the discretion of their department managers. In
addition, we are actively working to reduce overtime hours. For example, we have introduced a system
in which each employee’s PC is locked after regular working hours and must be unlocked with thepermission of his or her supervisor to continue using it. The average overtime hours of employees in
FY2023 were 8.45 hours/month (managers: 16.21 hours/month, non-managers: 6.54 hours/month). The
Company is constantly aware of employee health management and labor productivity and has createdan environment in which employees can efficiently finish their work during regular working hours. In
FY2023, we continued to achieve the goal of an average overtime of within 10 hours per employee.

In FY 2020, the Group introduced an internal recruitment system with the aim of providing motivatedemployees with opportunities to take on challenges and placing the right personnel in the right places.
This system internally recruits personnel needed for specific businesses, projects, etc., and allows
employees to freely apply for such positions. The internal recruitment is announced on the intranet,etc., and the personnel selection is made based on documents and interviews.

Personnel Interview
Since FY2023, the Group has conducted personnel interviews once a year with all employees, excluding
directors and executive officers, as part of an initiative serving as an employee satisfaction survey. Prior to
the personnel interview, we conduct a questionnaire about job satisfaction and workload, challenges for
employees and the organization, and any concerns or issues that employees would like to discuss with
their supervisors. The personnel interview allows employees to openly discuss matters that they would notusually discuss with their supervisors. The details of the interviews are fed back to the Company andutilized to create a healthy work environment for employees both mentally and physically.

Employee Hotel Use Subsidy Program
The Group has established an Employee Hotel Use Subsidy Program as part of its welfare program and topromote a better understanding of the Group’s business among its employees. This program subsidizes
up to 100,000 yen per year for 100% of the accommodation expenses of employees of the Group or theirrelatives up to the second degree of kinship when they use the eligible hotels (21 locations, as of February2024). This program is available not only to the employees themselves but also to their family members,
providing an opportunity for them to gain a better understanding of and attachment to the Group.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social19

Governance

Recruitment and Human Resource Development
Education and Training System Table

Human Resource Development Policy

Position

The Samty Group believes that a company is built upon people and that people drive its growth.
To foster sustainable growth among our employees, we support them develop their skills andabilities. By providing educational and training opportunities based on fair and equal criteria, we
aim to cultivate individuals with a strong sense of ethics, spirit to take on challenges, and ability tothink freely. We anticipate that such talents will contribute to the creation of new value and theoverall development of the company.

Training Category

Junior
Employee

Issue Formulation・
Execution・
Resolution

New
Graduate
Employee

Task Execution

Evaluator
Training

Since the Group’s growth depends heavily on human resources, we place the highest priority on developing professional human resources with a high level of expertise and extensive experience in the real estateand financial fields. As the majority of our employees are mid-career hires, our training policy is to accurately assess their abilities and aptitudes, regardless of whether they are female, foreign, or mid-careerhires, their age or length of service, and to develop their strengths and correct their weaknesses.

Information Security Education

Initiatives for Human Resource Development(Education and Training System)

Distance Education

Management
Fundamentals
Shared Leadership

Other (suchasqualificationacquisition)

Real Estate Transaction Specialist Qualification Support

Middlelevel
Employee

Accounting and Tax Study Session

Established on January 25, 2024
Yasuhiro Ogawa
Representative Director and President
Samty Co., Ltd.

OJ TStrategic Thinking
Organizational
Management

Compliance and Harassment Training

1.Enhancement of specialized technical skills and knowledge
2.Support for career development
3.Leadership cultivation
This policy was approved by the Sustainability Promotion Committee on January 25, 2024

Performance Evaluation and Behavioral Feedback Interview

ManageriaPosition

We are committed to advancing the following initiatives:

Practical Knowledge Study Session

CompanyManagement

On-site Training

New Employee
Trainingand Onboarding

Executive

Company-wide Education

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGovernanceColumn: New Employee Training
We conduct a variety of training programs for new employees each year. The purpose of the programs
is to develop human resources who can embody the Group’s slogan, “Samty, beyond real estate.” withthe message of “Enjoying new challenges while sometimes making mistakes, and not being bound by
the norms of the real estate industry” and to strengthen the teamwork of employees.
Part of the new employee training program in FY2023 was conducted at NESTA RESORT KOBE in
Miki City, Hyogo Prefecture. The training was designed to improve the skills of employees, including new
graduates, and strengthen their teamwork, with a variety of activities taking place over several days.
The training program was held in a rich natural environment, where participants deepened theirpractical learning through work experience, attending lectures, and team building training. Specifically,
the program included experience as a staff member, such as guiding visitors through the attractions, aswell as team-building experiences at the attractions.
We received lots of positive feedback from the participants, such as “The training was fun andfulfilling,” “Communication with people outside the company was fresh and stimulating,” “It was very
meaningful to experience real workplace interactions through the work experience,” “I strengthenedbonds with my colleagues and improved teamwork,” and “It was a great learning experience.”

20

Initiatives to Improve Engagement and Strengthen Human
Resources at Overseas Offices
SAMTY ASIA INVESTMENTS PTE. LTD. (SAI) a local subsidiary in Singapore, which was established in
February 2019 as the Group’s business base in Asian countries, has introduced an expense subsidy
program for employees to acquire qualifications and pursue self-improvement (maximum: SGD 2,000
per year) as part of its efforts to increase employee satisfaction and create a comfortable workplace. In
addition to strengthening business knowledge and acquiring qualifications, legal, accounting, andlanguage skills, the program can also be applied to participation in yoga and Muay Thai classes, andalmost all employees take advantage of the program for self-improvement and health enhancement.
Furthermore, SAI is actively working to develop the next generation of leaders who will be responsible for the Group’s overseas strategy by sending employees at the investment manager level to a top
management seminar at the National University of Singapore, as well as sending executive candidates
to a management training program hosted by a Japanese professor at the University’s Graduate Schoolof Policy Studies.

Recruitment Initiatives* The content and duration of new employee training programs vary from year to year.

In its recruitment activities, the Group strives to contribute to local employment and ensure diversity.
Particularly in mid-career hiring, we actively hire people from regions where our offices are located. In
FY2023, 82.7% of all employees and 100.0% of management positions were either female, non-Japanese, or mid-career hires. We will continue to promote the further appointment of women and non-Japanese and ensure diversity in the industries from which our employees come.

Human Resources the Samty Group Seeks●

New employees growing through numerous experiences person who can deal with other people around him or her as well as his or her duties with sincerityAand high ethical standards● 
A person with an interest in the real estate field and a passion for exercising creativity through his or
her work● 
A person who is dedicated to taking on challenges and self-improvement in order to acquire professional skills(Qualifications encouraged after employment: licensed real estate broker, Japanese official businessskills in bookkeeping, and money lending operations manager)

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGovernance21

Safety and Security
Number of New Graduates Hired over the Past Three Years by Gender●●Fiscal year

Male

FemaleFY2021

3

0

FY20227

2

FY2023

8

5

Male: 79.4%
Female: 20.6%

Supporting the Careers of Senior Employees
The Group supports the careers of senior employees with extensive experience and skills. To enable
employees who wish to continue working past the retirement age of 60 to play an active role, we haveestablished a reemployment system and offer continued employment to those employees in accordance with the Act on Stabilization of Employment of Elderly Persons. Since FY2021, the Group’s
reemployment rate has been 100.0%.

Strengthening Mid-career Recruitment
To respond to the severely changing market environment and grow as a company, the Group is actively
hiring mid-career workers with a variety of experience and expertise. In FY2023, the ratio of mid-careerhires to the total number of hires was 63.9%. Furthermore, 100.0% of the managers are mid-careerhires, of which 66.7% are from the real estate industry and 33.3% are from outside the real estateindustry, drawing personnel from diverse industries such as finance and retail.
In addition, we actively hire people from the locations of our offices for mid-career recruitment,
thereby contributing to job creation in the regions.

Basic Views on Safety and Security
The Samty Group is shifting to “develop and own” business, the theme of the profit structure reforms in
the Medium-Term Management Plan, with the aim of developing valuable real estate with consideration
for the environment and local communities. It is a major risk that the safety and security of our customers and local communities could be threatened by the aging and obsolescence of owned properties orby natural disasters, which could also hinder the Group’s Management Philosophy of “Realization ofDreams.” We believe it is important to maintain safety and security through appropriate planning, development, and operational management.

Risk Management System for Safety and Security
In the Group, Samty Co., Ltd. is responsible for the overall quality of safety and security in planning anddevelopment, and under its supervision, Samty Property Management Co., Ltd. assumes field-level
responsibility as quality control manager in the rental property management business, and Samty HotelManagement Co., Ltd. does in the hotel operation business, thereby promoting the improvement ofsafety and security quality.
In addition, risk management and action plans are discussed and decided at the Compliance
Division under the Legal Department. The Division sets annual goals for improving the safety and security quality from the design and construction stages to the operation and management stages, as well as
in the event of disasters, and monitors compliance with laws and regulations and the status of progress.

In Case of Emergency
In the event of a natural disaster, unforeseen accident, or other emergency that threatens the safety
and security of the Group’s offices, properties, officers, and employees, we will respond to the situation
with the highest priority on the protection and rescue of human life. Based on the Emergency Response
Regulations, the director in charge of risk management will establish an Emergency Response Department headed by the Representative Director and President of Samty Co., Ltd. and a response committee to collect information and preserve evidence, issue instructions for emergency measures, investigate the cause, determine countermeasure policies, provide information to external parties, formulate
recurrence prevention measures and so forth.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social22

GovernanceContributions to Society
Basic Views on Social Contribution
The Samty Group supports people who are striving to achieve their dreams, preserves local culture, andengages in social contribution activities that value harmonious coexistence with society under thethemes of “Dreams,” “Sports,” “Cultural Inheritance,” and “Coexistence with Local Communities.” In suchactivities, we aim to actively contribute to the sustainable development of society by working closely withlocal governments, NPOs, NGOs, volunteer groups, and other partners.

Theme: Dreams
JFA Kokoro no Project (Dream Classes)
The “JFA Kokoro no Project” sponsored by the Japan Football Association (JFA) isan activity to support children’s sound growth of mind and body, and top athletes
including alumni/alumnae serve as “Dream Teachers” at elementary and juniorhigh schools to teach children about the value of having a dream and theimportance of making efforts, and the strength of mind not to be defeated by
failure and setbacks. The Group has been supporting this activity since July 2021
and continues to support those who strive for their dreams and goals.
JFA Kokoro no Project

Fourth Session of “Dream Teacher”
Sumika Minamoto (former competitive swimmer),and Shoko Konishi (former competitive racewalker)
On January 10 and 11, 2024, our fourth “Dream Classroom” sponsored by the Company held for 133
fifth graders (4 classes) at Nakasuji Elementary School in Hiroshima.
Sumika Minamoto (former competitive swimmer) and Shoko Konishi (former competitive racewalker) were invited as dream teachers, and in the gym class, everyone worked together to challenge various
games. In the classroom, they shared with the children how they came to have dreams, how they faced
their dreams, and how wonderful it is to support others’ dreams. Listening to the dream teachers, thechildren eagerly write their future dreams on the “Dream Sheet” and cheered their classmates who
presented their dreams in front of everyone with a big round of applause.

Third Session of “Dream Teacher”
Honami Tsuboi (former member of the Japan rhythmic gymnastics team)
On May 2, 2023, the third session of “Dream Classroom”
sponsored by the Company was held in a face-to-facesetting for 51 fifth-grade students (two classes) at Mushiroda Elementary School in Fukuoka, where the Company
has a branch office.
In the class held in the gymnasium, the students
erupted in loud cheers as they watched the Dream
Teacher manipulate the ribbon freely.
In the classroom, it was very impressive to see thestudents listening to the the Dream Teacher talk andearnestly writing down their future dreams and thoughtson the dream sheets.

Second Session of “Dream Teacher”
Takeomi Ito (former representative of Japan’s national rugby team)
On May 20, 2022, the second session of “Dream Class
Online” sponsored by the Company was held for two
fifth-grade classes at Kitanodai Elementary School in
Sapporo, where the Group has a branch office. At first,
the children were reserved, but as the class progressed,
they began to smile and become more active, and at theend of the class, the children took the initiative to make apresentation about their dreams. As in the first session,
the class ended with Dream Sheets with feedback fromthe Dream Teacher which were delivered at a later date.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialFirst Session of “Dream Teachers”
Junichi Miyashita (Bronze medalist in swimming at the Beijing Olympics),
and Sotaro Yasunaga (former J-League player)
On November 22, 2021, the first session of “Dream Class Online” was held under our sponsorship, andthe online class was conducted for approximately 100 fifth-grade students at Mikuni Elementary School
in Osaka City, where the Company was founded. The children listened attentively to the lively class andworked earnestly on their assignments. At the end of the class, the children presented their dreams,
and each child later received a Dream Sheet with a response from their Dream Teachers.

23

Governance

Theme: Sports
Serves as an Official Sponsor of the Professional Baseball Team, ORIX Buffaloes
Since 2012, we have continuously supported the ORIX
Buffaloes as an advertising sponsor of Kyocera Dome
Osaka by displaying advertisements on the outfield
fence and sponsoring games. In February 2022, we
signed an official sponsorship agreement with the team
as we share its philosophy of “bringing excitement andinspiration to fans, dreams and hopes to children, andcontributing to the development of local communities
and people,” and our logo has been displayed on the left
sleeve of the ORIX Buffaloes’ uniforms. We will actively
support the team’s activities to enliven our hometown
Osaka and all of Japan through Japanese professional
baseball.

©ORIX Buffaloes

Official Partnership with Women’s Team of Albirex Niigata Singapore FC
Sponsorship of the “OSAKA Children’s Dreams” Support ProjectAs part of the “OSAKA Children’s Dreams”, an SDGs promotion project by the Osaka Prefectural Government through public-private partnership, we supported the “4th SDGs Guinness World Records™
Challenge” held on January 20, 2024.
Many elementary and junior high school students challenged the “Most people performing theeagle pose(yoga) online simultaneously” and successfully set a Guinness World Record.
The children were able to realize the significance of the project, which is to create opportunities toexperience success in the Guinness World Records Challenge and to nurture the ability to persevere
and a strong spirit to face difficulties.

SAMTY ASIA INVESTMENTS PTE. LTD., our local subsidiary in Singapore, is an official partner of the women’s
team of Albirex Niigata Singapore FC, the first professional women’s soccer team in Singapore. Albirex’s
slogan, “The reason. – the meaning of being here-” andits theme of “JOY,” “BRIDGE,” and “DREAM” have much incommon with our Management Philosophy, “Realizationof Dreams through Ethics, Passion, and Challenge” andtherefore, we endorse and support the team’s activities
for sports culture promotion, which aim to build bridges
between people.

Albirex Niigata Singapore FC Women’s Team Members

SAMTY SUSTAINABILITY REPORT 2023

SocialTheme: Cultural Inheritance
Reizei Family Shiguretei Bunko Foundation (Kamigyo Ward, Kyoto)mar, and Tajikistan, reaching 1.39 million household customers, mainly women who are raisingchildren.
Through this investment, the Group supports the realization of a world where everyone candetermine their own future through access to quality financial services at low prices, while assisting
those who need these services in leading their self-sufficient lives, and aims to realize a society inwhich the next generation can grow up with dreams.

Indirect
investments

We are a supporting member of the Reizei Family Shiguretei Bunko Foundation (a public interest
incorporated foundation), which was established to preserve the building of the Reizei family, Japan’s
oldest and only existing residence of a court noble, and its archives. As a comprehensive real estatecompany with operations throughout Japan, the Group will continue to support the activities of thefoundation and engage in various support activities to preserve traditional buildings and promote anddevelop traditional culture throughout Japan under the objective of regional revitalization.

24

GovernanceOverseas group companies

Environment

Investments

Sustainability Management

Repayment

Proﬁt fromcommerce, etc.

Customers
Microinvestments* Of these, 99% are
women raisingchildren.

Theme: Coexistence with Local Communities
The Group is engaged in a variety of activities to revitalize local communities through the hotel facilities
developed, owned, and operated by the Group. Under the theme of harmonious coexistence with local
communities, which is stated as our basic sustainability policy, we will continue to build relationships ofcoexistence and co-prosperity with local communities, seek activities suited to local characteristics, andcontribute to the community as a member of society.

Funding for purchase of a textile factory (Cambodia)

Funding for purchase of sewing machines (Myanmar)

Investments in Companies that Provide Quality Financial Services at Low Prices
The Group, which strives to solve social issues through its business activities and to realize asustainable society and increase corporate value from a medium- to long-term perspective, invests
in companies that provide microfinance services to small and medium-sized enterprises in emerging countries and supports their businesses through an ESG investment fund established by SAMTYASIA INVESTMENTS PTE. LTD., a local subsidiary in Singapore.
Our portfolio company, Gojo & Company, Inc. has a mission of delivering financial inclusion
around the world, and is engaged in microfinance businesses in Cambodia, Sri Lanka, India, Myan-SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialCleanup Volunteer
On November 11, 2023, we hosted a beach cleanup volunteer event at ’Uminonakamichi Seaside park
(National Park) in Higashi-ku, Fukuoka City. A team of 25 members, primarily comprising employees from
our Fukuoka branch, joined on the day, gathering debris equivalent to the size of a truckload while
enjoying the refreshing sea breeze. Some of the participating members expressed their eagerness toactively participate in environmentally conscious activities after witnessing the current state of ocean
pollution. Our Group is steadfast in our commitment to initiatives focused on ‘environmental awareness’
as part of our continuous effort to build a sustainable society.

Registration for Return Gifts of Hometown Tax Donation Program
Various coupons available for travel, which can be received as a return gift for hometown tax donations,can be used at hotels related to the Samty Group. The return gifts vary depending on the municipality
where the tax donation was made. One type of return gift is an accommodation voucher for a stay at aneligible facility, while the other type is a travel voucher or a subsidy voucher that can be used at restaurant facilities.

25

Governance

List of Eligible Hotels (as of January 31, 2023)
Relevant
municipality

URL

Return gift items*1

NO.

Hotel name01

Ibis styles Nagoya

02

S-PERIA Hotel Kyoto

Hometown Tax Donation Program’s accommodation voucher for Kyoto City Rurubu Travel Plan

03

MercureKyoto Station

Accommodation voucher (Superior King Room, 1 night
stay for 2 persons with breakfast), etc.

04

Oakwood Hotel
Oike Kyoto

05

Agora Kyoto Karasuma /Agora Kyoto Shijo

06

Amanohashidate
Hotel

07

S-PERIA Hotel Hakata

08

S-PERIA Hotel
Fukuoka Nakasu

09

S-PERIA Hotel
Nagasaki

Nagoya City

Kyoto City

(Links to municipality
websites (Japanese))Hometown Tax Donation Program’s accommodation vouchFurusato Choice
er for Nagoya City Rurubu Travel Plan

Accommodation voucher (Standard Room, 1 night stayfor 2 persons), etc.

About Kyoto City
Hometown Tax
Donation Program

Hometown Tax Donation Program’s accommodation voucher for Kyoto City Rurubu Travel Plan
Furunavi Travel Points
Miyazu City,
Accommodation and meal subsidy vouchers that can be
Kyoto Prefecture used at designated facilities in Miyazu City, Kyoto Prefecture

Typical Return Gifts
from Miyazu City

Fukuoka City

[Hometown Tax Donation Program: Choice Pay] Let’s
go to Fukuoka City, Fukuoka Prefecture by using thehometown tax donation program! (Granting points forelectronic payment service)

Furusato Choice
List of Available
StoresNagasakiPrefecture[Nagasaki Prefecture] JTB FURUPO WEB Travel Coupon

Hometown Nagasaki
Support Donation* The available tax donation program sites and returned gifts may be added or changed.
* Common coupons with other facilities. Some hotels offer plans that include an accommodation voucher as a return gift.

Participation in TOKYO Waction ProjectTOKYO Waction, a project by the Tokyo Metropolitan Government to promote vaccination against
COVID-19 infection, has the following philosophy: “To protect ourselves and our loved ones fromCOVID-19, and to make a new everyday life in the cityof Tokyo filled with smiles again.” The Group endorsed this philosophy and participated in the
project by offering special privileges at its hotels.

Renting Entire Hotel Buildings at the Request of Prefectures
The Group has been renting entire buildings at some of its hotels in Japan as an accommodation andtreatment facility for asymptomatic and mildly sick people infected with COVID-19 at the request of theprefectural governments. We will continue to actively implement initiatives that contribute to corporatesocial responsibility and local communities.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social26

GovernanceSocial Data
Employment Situation
Unit

Number of
employees(general employees+ executives)

FY2020

FY2021

FY2022

FY2023

Unit

Total

persons

149

157

184

203

Male

persons

117

123

149

157

Femalepersons

32

34

35

46

Female ratio

%

21.5

21.7

19.0

22.7

Foreign national

persons

-

-

-

-

Foreign national
ratio

%

-

-

-

-

Senior(60 and above)

persons

10

10

9

6

Senior
(65 and above)

persons

3

4

5

5

Total

persons

33

43

54

67

Male

persons

23

31

37

44

Femalepersons

10

12

17

23

Female ratio

%

30.3

27.9

31.5

34.3

Total

persons

116

114

130

136

Executive positions(including managers,
department heads,
Directors and Officers)

Malepersons

94

92

112

113

Femalepersons

22

22

18

23

Female ratio

%

19.0

19.3

13.8

16.9

Total

persons

23

22

23

21

Executive positions(department heads
and above)Malepersons

22

21

22

20

Femalepersons

1

1

1

1

Female ratio

%

4.3

4.5

4.3

4.8

Total

persons

93

92

107

115

Executive positions(deputy manager
and below )Malepersons

Femalepersons

21

17

22

Female ratio

%

21

22.6

22.8

90

15.9

FY2023

36.6

36.7

35.9

35.1

Male

years old

37.2

37.0

36.7

36.2

Femaleyears old

34.8

35.2

34.6

32.4

Total

years

7.0

7.2

6.0

5.7

Male

years

6.8

7.0

5.8

5.6

Female

years

7.6

8.3

7.0

6.2

Male base salary*1

JPY/Month

301,098

306,615334,903338,879

Male bonus

JPY/Year

3,114,718

2,962,759

2,632,058

2,390,304

JPY/Month257,220

268,560

284,583

299,623

JPY/Year

2,315,100

2,345,200

1,929,727

1,323,143

%

80.3

83.8

80.4

76.2

%

1.5

1.4

-

2.7

persons

2

2

-

3

Number of consolidated employees

persons

271

391

705

844

Job turnover rate*3

%

3.1

5.1

4.5

6.7

Voluntary resignation rate*4

%

3.1

5.1

4.5

6.7

Retention rate of new graduates

%

87.5

100.0

100.0

100.0

Retention rate of new graduates

%

12.5

-

-

-

Average age

Average years ofservice

Average Salary*2

Salary disparity

71

FY2022

years old

Female base salary72

FY2021

Total

Female bonus
Number of generalemployees

FY2020

Employment of persons with disabilities*1 Management + Non-management (excluding Directors, Officers and seconded staff)*2 Management + Non-management (excluding Directors, Officers, seconded staff, and general staff)*3 Voluntary Retirees + Non-Voluntary Retirees (including: death, dismissal, and leave due to personal injury or illness. excluding those who retired
at retirement age)÷Total Employees*4 Voluntary Retirees ÷ Total Employees

93

19.1
SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialRecruitment Status

Number of Users of Work-Life Balance Programs
Unit

Number of new
graduates hired

FY2020

FY2021

FY2022

FY2023

Unit

Total

persons

8

3

9

13

Male

persons

7

3

7

8

Femalepersons

1

-

2

5

Female ratio

%

12.5

-

22.2

38.5

Foreign national

persons

-

-

-

-

Foreign national
ratio

27

GovernanceMaternity leave

Childcare leave

Return-to-workrate after childcare leave

FY2020

FY2021

FY2022

FY2023

Femalepersons

3

1

2

1

Total

persons

4

4

11

9

Male

persons

-

1

7

5

Femalepersons

4

3

4

4

Total

%

100.0

100.0

100.0

100.0

Male

%

-

100.0

100.0

100.0

100.0

100.0

100.0

100.0

%

-

-

-

-

Mid-career recruitment

persons

11

14

35

23

Female%Reemployment rate of retirees

%

100.0

100.0

100.0

-

Total

persons

-

-

-

-

Male

persons

-

-

-

-

Femalepersons

-

-

-

-

Total

persons

5

4

8

8

Male

persons

-

-

1

1

Femalepersons

5

4

7

7

Total

persons

-

-

-

-

Male

persons

-

-

-

-

Femalepersons

-

-

-

-

Total

persons

-

-

-

-

Male

persons

-

-

-

-

Femalepersons

-

-

-

-

Total

persons

-

4

2

2

Male

persons

-

2

1

1

Femalepersons

-

2

1

1

Nursing care leave

Shorter working
hours

Child nursing care
leave

Family care leave

Telework

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialOvertime and annual paid leave utilization record
Unit

FY202028

Governance

Number of Safety-related Accidents

FY2021

FY2022

FY2023

Unit*1

FY2020

FY2021

FY2022

FY2023

Average overtime hours per person

hours/Month

4:43

7:14

9:49

8:45

Serious accidents

cases

-

-

-

-

Average annual paid leave days per person

days

7.0

8.0

8.8

8.4

Fatal accidents

cases

-

-

-

-

Average annual paid leave utilization rate
per person

%

38.4

45.1

50.8

53.6

Accidents resulting in absence from work

cases

-

-

-

-

Non-lost-workday accidents*2

cases

-

-

2

2

Training Achievements
Unit

FY2020

FY2021

FY2022*1 F atal accidents, severe illness accidents (injuries or illnesses requiring treatment for a period of 30 days or more), sequelae accidents, fire
accidents, etc.
*2 Injuries or illnesses incurred during the execution of duties that require medical attention from a medical professional, where the affected individual did not take a single day off work from the day after the incident.

FY2023

Total

hours

3,129

762

1,431

4,454

Hours per person

hours

21.00

4.85

7.78

21.94

Total

thousandsof JPY

320

254

1,582

15,458Investment perpersonthousandsof JPY

2.1

1.6

8.6

76.1

Training hours

Training investment

Achievements Related to Health
Unit
Regular health examination attendance rate
Stress checkexamination

FY2020

FY2021

FY2022

FY2023

%

100.0

100.0

100.0

100.0

Participation rate

%

99.3

99.3

97.3

99.5

High stressemployee rate

%

2.9

9.0

7.7

6.5

Occupational Accident Record
Unit

FY2020

FY2021

FY2022

FY2023Frequency rate of occupational accidents*1

-

-

-

6.85

7.09

Number of fatalities related to occupational accidents

persons

-

-

-

-

Intensity rate*2

-

-

-

-

-

*1 Number of fatalities and injuries due to occupational accidents per 1 million total actual working hours*2 Number of lost workdays due to occupational injuries per 1,000 total actual working hours

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGovernance29

Corporate Governance
Basic Thinking on Corporate Governance
The Samty Group considers the strengthening of corporate governance as a key management issue toensure continuous development and become a company that earns the trust of society, with a high level ofmanagement soundness and transparency. The Group will strive to continuously improve corporate
governance based on the principles of the Corporate Governance Code, by building an organizational
structure that enables timely and accurate information disclosure, strengthening information management
systems, ensuring compliance with laws and regulations, and utilizing independent outside directors.
Corporate Governance Report (February 29, 2024)

The Company has chosen to establish an Audit and Supervisory Committee as part of its organizational
design. Through this corporate governance structure, which includes the Board of Directors thatsupervises the execution of duties by directors and the Audit and Supervisory Committee that audits
the execution of duties by directors, the Company aims to improve transparency and fairness inmanagement, while enabling speedy decision-making.
General Meeting of Shareholders

Delegate
ReportSelection/
Dismissals
Supervise

ReportAudit andSupervisory
Committee Office
ReportRepresentative
Director & President

Appoint Report

Information Security
Committee

Instruct
Order
Supervise

Cooperate

Audit andSupervisory
Committee

Board ofDirectors

Instruct
ReportInstruct
ReportInternal Control
Committee

Manage/Promote

Audit

Establish

Various Departments /Affiliate Companies

To enhance management transparency and further strengthen corporate governance, the Company
has established the Nomination and Renumeration Committee composed of a majority of outside directors (four independent outside directors and one inside director). This Committee is responsible foradvising and assisting the Board of Directors in the selection and appointment of directors, taking into
consideration diversity and skill sets. Renumeration for directors is determined by the Board of Directors based on the Committee’s discussions.

Audit

Audit
accounting
Audit internal
controlReportInternal Audit
Department

Suggest/GuideThe Audit and Supervisory Committee is responsible for auditing the decision-making process of theBoard of Directors and the status of business execution by directors. In order to monitor the executionof duties by directors from an objective and neutral standpoint, all members of the Committee areoutside members. The Company has established a system that allows the Committee members to stayabreast of important management matters, key issues related to compliance and risk management, andother matters through activities such as attending and reviewing minutes of important meetings,
reviewing all approval documents (on a per-approval basis), holding regular meetings with all directors,
and listening to updates on the execution of duties as necessary.

Nomination of Candidates for Directors
For candidates for directors (excluding directors who are members of the Audit and Supervisory
Committee), the Representative Director prepares a proposal, and the Board of Directors determines
based on the results of discussions at the Nomination and Compensation Committee. For candidates
for directors who are members of the Audit and Supervisory Committee, the Representative Director
prepares a proposal, and the Board of Directors decides on the agenda for election at the General
Meeting of Shareholders after obtaining the consent of the Audit and Supervisory Committee, based on
the results of discussions at the Nomination and Compensation Committee.
Regarding the dismissal of a director, the Board of Directors decides as a proposal to the General
Meeting of Shareholders based on the results of discussions by the Nomination and Compensation
Committee, taking into consideration such factors as violations of laws and regulations and the Articles
of Incorporation in the execution of duties, physical or mental disabilities, significant lack of ability, andresponsibility for the performance of the division in charge.

Consulting Attorneys, etc.

InquireAccounting Auditors

Appoint/
Dismiss

Appoint/dismiss directors
who are on the Audit andSupervisory Committee

Report on internal
audit results

Execution Committee

Nomination and
Renumeration
Committee(1) Nomination and Renumeration Committee(2) Audit and Supervisory Committee

Corporate Governance Structure

Appoint/dismiss directors
who are not on the Audit andSupervisory Committee

The Nomination and Renumeration Committee and the Audit andSupervisory Committee

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialIndependence of Independent Outside Directors
The Group has established the following criteria regarding the independence of outside officers in orderto certify those persons who may not have a conflict of interest with general shareholders as independent officers.

Criteria for the Independence of Outside Officers
If an outside officer (outside directors including members of the Audit and Supervisory Committee) meets the following criteria, the said outside officer shall be deemed independent and haveno risk of conflict of interest with general shareholders.
1. T he outside officer is not currently or has not been in the past an executive, etc.*1 of theGroup*2.
*1 Executive, etc. shall mean directors (excluding outside directors), corporate auditors (excluding outside corporate auditors), executive officers, accounting counselors, and other similar officers or employees.
*2 The Group shall mean the Company and its subsidiaries and affiliates.

2. T he outside officer is not currently or has not been in the past five years:(1) A major shareholder*3 of the Company or an executor, etc. thereof; or(2) An executive, etc. of a company for which the Group is a major shareholder.
*3 A major shareholder shall mean a shareholder who holds 10% or more of the voting rights.

3. T he outside officer is not currently or has not been in the past five years a major business
partner*4 of the Group or an executive, etc. of the said partner.
*4 M
 ajor business partner shall mean a business partner who has transactions with the Group in an amount equivalent to 2% ormore of the consolidated net sales of either party.

4. T he outside officer is not currently or has not been in the past five years:(1) A recipient of remuneration of 10 million yen or more per year from the Group as a consultant, or an accounting or legal professional (if the recipient is a legal entity or an assorciation, etc., an individual who belongs to such legal entity or an assorciation, etc.), besides
remuneration as a officer; or(2) A member, a partner or an employee of the accounting auditor of the Group.
5. The outside officer is not currently or has never been in the past five years a recipient of donation of 10 million yen or more per year from the Group (if the recipient is a legal entity or anassorciation, etc., an individual who belongs to such legal entity or an assorciation, etc.).
6. T he outside officer is not currently or has never been in the past five years an executive, etc.
of a party between which and the Group officers are mutually appointed.
7. The outside officer is not a relative within the second degree of kinship of any individual fallingunder any of Items 1 through 6 above (excluding those who are in unimportant positions).

30

GovernanceTraining Policy
The Company provides training to its directors to ensure that they are able to adequately fulfill the
responsibilities of their positions. Upon assuming office, newly appointed directors are briefed by the
director in charge or the department in charge on the Group’s management strategy, medium-term
management plan, financial and accounting matters, and the status of business operations. In addition,
directors are provided with timely information on economic conditions, industry trends, legal compliance, corporate governance, finance and accounting, and other important matters necessary to fulfill
their roles, and supported in the execution of their duties by invitations to external training sessions
and the like.

Evaluation of the Effectiveness of the Board of Directors
The Company evaluates the effectiveness of its Board of Directors each year on a regular basis anddiscloses the results with the aim of continuously enhancing corporate value. The evaluation is conducted with a survey about the Board of Directors’ effectiveness, and it is completed by all directors comprising the Board of Directors, and the results are reported to the Board of Directors. The Company isworking to improve and enhance the identified points that need to be improved and enhanced uponfurther review.

Remuneration for Directors
The maximum amount of remuneration for directors is resolved at the annual General Meeting of
Shareholders. For remuneration for senior management and directors (excluding directors who aremembers of the Audit and Supervisory Committee), the Representative Director prepares a proposal,
taking into consideration the nature of their duties and the Company’s situation, and the Board of
Directors determines based on the results of discussions at the Nomination and Compensation Committee. Renumeration of directors who are members of the Audit and Supervisory Committee isdetermined through discussions by the Audit and Supervisory Committee, taking into consideration thenature of their duties, their experience, the Company’s situation, and other relevant factors.
To increase the incentives for continuous performance improvement and to further promote value
sharing with shareholders, the Company has also introduced a performance-linked remuneration
system (profit-linked salary), a restricted stock remuneration system, and a stock price-linked pointbased monetary remuneration system for directors (excluding outside directors and directors who aremembers of the Audit and Supervisory Committee).
The Company discloses the total amount of remuneration for directors, and for some directors, theamount is disclosed separately in the Annual Securities Report in accordance with laws and regulations.
The Company also discloses the amount of base remuneration and performance-linked remuneration,
as well as its policy for determining the calculation method to improve management transparency.

8. The outside officer is not an individual who is involved in a matter that may cause a material conflictof interest in executing duties or who has interests that potentially influence decision making.
SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social31

GovernanceRisk Management
Basic Views on Risk Management

Corporate
Management

Industry
Knowledge

Accounting /FinanceYasuhiro
Ogawa

〇

〇

〇

Hiroaki Matsui

〇

〇

〇

Naohiro Morita〇〇

Takaharu
Terauchi〇〇Jiro Okawa〇〇

TakashiHamamatsu〇〇

IT / Digital

〇

〇

〇

〇

〇

〇
〇

Toyo Abe〇

Masatsugu
Oishi〇

Mitsusuke Koi〇〇

Shoichi Sanpei

〇

〇

〇

〇

〇

〇

〇

〇

〇

〇
〇
〇
〇

Tetsuo Kodera
Naotaka
MurataGlobalExperience〇

Junko Kawai〇

Legal andCompliance

〇

〇

〇

List of Business Risks, etc.

Regulations and System for Risk Management in Normal Times
The Group has established the Risk Management Regulations as the basis of risk management andstrives to prevent the materialization of risks before they occur. For operating the risk management
system under normal circumstances, a director responsible for the Legal Department shall be
appointed as the director in charge of risk management, and the Legal Department shall serve as thedepartment in charge of comprehensive risk management, with the cooperation of the Internal Audit
Department and other related departments. The Legal Department checks and evaluates the statusof risk management and implements necessary measures, etc., based on the Action Plan for Compliance and Risk Management, an action plan for risk management.

Emergency Response and System
If an emergency situation arises, the Emergency Response Department, headed by the Representative
Director and President, shall respond by promptly assessing the state of damage, taking prompt andappropriate action, and quickly establishing a system to minimize damage, in accordance with the Emergency Response Regulations and the Detailed Regulations on Measures for Severe Natural Disasters, etc.,
which are separate regulations stipulating measures to be taken in the event of an emergency situation.

Reporting System for Emergency Situations
Supervisor

General Manager of Human
Resources & General Affairs
Department

General Manager of the Business
Administration Division
General Manager of the IR Officeand General Manager of the
Accounting Department

Representative Director
and President

Name

The basic policy and control system for risk management are set forth in the Action Plan for Compliance and Risk Management (revised on December 10, 2021), and we strive to prevent risks (including
compliance issues) that could hinder the business activities of the Samty Group and cause significant
losses to the Company, and to respond promptly and appropriately when they occur, in order toensure personnel safety, minimize economic losses, facilitate business operations, and prevent
damage to the Company’s image. We are also working to prevent risks from materializing throughappropriate management of various risks surrounding our business, including compliance-relatedrisks, risks associated with daily business activities, and information risks.

Director in charge ofrisk management

Expertise / Experience

Recipient ofEmergency Information

Skills Matrix

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialGovernance

Departments Responsible for Emergency Situations
Category of Emergency Situations

NaturalDisasters

Accident

Crime

OthersResponse to COVID-19 Infections
Responsible Departments
Level A

Level B

Earthquakes, windstorms, floods, and other disasters

Human Resources & General Affairs Group, Human Resources& General Affairs Department

Serious accidents such as office explosion, fire, building
collapse, etc.

Human Resources & General Affairs Group, Human Resources& General Affairs Department

Serious accidents attributable to the Company’s real estate
properties (including environmental issues and complaints
from neighborhoods)

Relevant departments

Serious personal injury involving officers and employees

Human Resources & General Affairs Group, Human Resources& General Affairs Department

Illegal external attacks such as corporate bombing, arson, kidnapping, extortion, etc., as well as receipt of threatening letters

Legal Department

On-site investigations by government and municipal offices
for the purpose of discovering violations of laws and ordinances of the Company and their detection, etc.

Legal Department / Internal
Audit Department

Misconduct by officers and employees, including breach oftrust, embezzlement, and insider trading

32

Emergency
Response
Department

In response to the spread of COVID-19 infections, the Group established a countermeasures committee
chaired by the Representative Director and President to ensure the health and safety of employees,
their families, and business partners as a top priority, and has formulated a basic policy for infection
prevention measures in accordance with government and municipal policies and made every effort to
instruct and support all group sites in their countermeasures. The Group has put in place measures andsystems that will enable it to continue operations with a low attendance rate even if a social demand to
reduce personnel contact is made in the future, based on the issuance of a declaration of a state of
emergency, etc.

Legal Department / Internal
Audit Department

Unlawful purchase of the Company’s shares

Legal Department / Corporate
Planning Department

Litigation and disputes of all types

Legal Department / Relevant
departments

Situations arising from emergencies of business partners,
such as bankruptcy of important business partners

Relevant departments

Non-performing loans and bad debts

Relevant departments

Monetary accidents, and burning, theft or loss of securities, etc.

Accounting Department /Finance Department

Discrimination issues, human rights issues, sexual harassment, etc.

Human Resources & General Affairs Group, Human Resources& General Affairs Department

Other business emergencies equivalent to the above

Relevant departments

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

Social33

GovernanceCompliance
Basic Views on Compliance

Values of the Samty GroupThe Samty Group is working to become a free and new company that can contribute to society whileproviding a rich urban environment. Compliance is the foundation of such corporate activities, and we
consider compliance with laws, regulations, and formalities to be the norm, and aim to gain the trust of ourcustomers and partners and prevent accidents and problems by reliably and accurately performing each ofour daily tasks. It has been proven through many cases of misconduct in the past that simply complying withlaws and regulations is not enough to meet the demands of society, including situations in which laws andregulations are not consistent with actual conditions. We regard the true compliance of the Group as going
beyond mere compliance with laws and regulations to adapt to the demands of society.

Code of Conduct and Values
The Group has stipulated its Management Philosophy and Code of Conduct, “Samty 5,” as a common
standard for all employees and officers to comply with laws and regulations, the Articles of Incorporation, and social norms as a matter of course, and to engage in sincere and appropriate corporate
activities with high ethical standards and carries out daily operations under a common set of values that
aim to realize dreams.

Code of Conduct for Employees of the Samty Group, “Samty 5”
1. “Thank you” rather than “I’m sorry.”
When someone helps you, say “thank you” instead of “I’m sorry.” Positive words brighten both you
and the other person.
2. Don’t forget your initial enthusiasm and sense of ethics.
Remember where you aimed to be on your first day of work. What should you do to get there?
What should you not do? Let’s work today, remembering the fresh feeling you had on that day
and sense of ethics.
3. Let’s be brave and raise your hands.
Everyone can think, “This would be a good idea,” or “What about this idea?” But only a few people
can raise their hands. A little courage can lead to great growth.
4. It’s fun to know what you don’t know!
The view outside the train. What kind of buildings are there? What kind of people live there? How
did the streets come to look the way they do? Such interest naturally broadens our perspective. It
makes work and life more interesting.
5. Let’s question the rules.
Success lies beyond the norms. Can’t we do better than what we are now doing? Can’t we grasp
something greater by abandoning what we have? There are plenty of opportunities to change theindustry.

Compliance Promotion System
With the aim of ensuring the effectiveness of compliance management, the Group has appointed Hiroaki Matsui, Managing Director of Samty Co., Ltd., as the Chief Compliance Officer, and the Company’s
Legal Department serves as the Compliance Control Division. This Division formulates an action plan as
an implementation plan for compliance management, conducts training sessions, inspects the status oflegal compliance, and performs daily monitoring and other activities to ensure that the Management
Philosophy, Code of Conduct, Compliance Regulations, and Compliance Manual are thoroughly understood and practically implemented. In addition, to ensure cross-sectional management of the overall
internal control system, the Legal Department is working to strengthen the internal control systemthrough company-wide and group-wide efforts.

Compliance System of the Samty Group
Role of the Compliance Control Division
1.Establishment, maintenance, and management of internal legal compliance systems
2.Guidance and support for the establishment, maintenance, and management of legal compliance systems at Group companies
3.Development and maintenance of legal compliance manuals
4.Training and education on legal compliance5.Monitoring of legal compliance status
6.Investigation and response when problems occur

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialCompliance Training

General Shareholders’ Meeting

Samty Group

Appointment

Appointment
Auditing

Board of Directors

Board of Corporate Auditors
Cooperation

Appointment/
Instruction

Representative Director
ReportingConsulting
Attorneys

Suggestion/
Guidance

Chief Compliance Officer(Director in charge of compliance)

Reporting andConsultation Counter(External Contact*)

Communication

Compliance Control Division(Legal Department of Samty Co., Ltd.)

Reporting andConsultation CounterSAMTY’s Management Philosophy
Code of Conduct for SAMTY Employees● SAMTY’s Legal Compliance System
● Compliance Items

1. R espect for human rights and prohibition of discrimination, sexual harassment, harassment related to pregnancy, childbirth, childcare leave, nursing care leave, etc.,
and power harassment●

3.Prohibition of bribery and gifts/entertainment, etc.

Reporting/Consultation

Instruction

Reporting/Consultation

Instruction

Employees
Reporting/Consultation●

2. C ompliance with various business laws and other laws
and regulations
4. Insider trading regulations
5. R
 esponse to antisocial forcesGroup companies / departments
Reporting/Consultation

To ensure that all employees share a common awareness of compliance, we have established Compliance Regulations and Compliance Manual, and conduct periodic training for all employees to raise theircompliance awareness. Online training sessions are held twice a year on themes such as compliancewith laws and regulations and human rights, anti-corruption, and alerts regarding fraudulent landdealings. We aim to further raise awareness of compliance through interactive communication, such asasking employees to submit written comments on training videos.

Compliance Manual (Cover and table of contents)
Auditing

Consultation
Communication

Reporting andConsultation Counter

Internal Audit
Department

Appointment/Instruction

Reporting34

Governance

6. C ompliance with the Road Traffic Act
Reporting/Consultation

7. A
 ppropriate use and management of information
8. P
 roper accounting procedures and appropriate disclosure of company information
9. P rohibition of acts against interests
10. D ealing with troubles

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialWhistleblowing System

In order to ensure compliance with laws and regulations, prevent and detect corruption and corrupt
practices at an early stage, and improve self-cleansing function, the Group requires anyone who
becomes aware of any violation of laws or regulations to report such violations to the Company, and has
put in place a whistleblowing system through the compliance consultation counter that enables employees to report and consult with internal and external organizations.
In operating the system, we have established whistleblowing management regulations, which
stipulate strict confidentiality and prohibition of disadvantageous treatment of users, to provide a safeand easy environment for whistleblowers to report incidents. In FY2021, as a result of investigations andcorrective actions taken in response to all reports, there was no case of serious human rights violations
or violations of the anti-corruption policy.

Information Security
Due to the necessity of business operations, each of our businesses handles a large amount of personal information, and the management and all employees of the Group are strongly aware of the social
responsibility of information security in their duties. We have established an Information Security
Committee consisting of representatives from each department, formulated the Information Security
Basic Policy in 2006, and the Personal Information Protection Policy in 2007, and are working to establish and maintain an appropriate management system that includes the protection of all information
assets and personal information handled by the Company. We also conduct an annual information
security confirmation test for all employees.
Information Security Basic Policy

Anti-Corruption Initiatives
The Company has established the Compliance Regulations that prohibit all corrupt acts, including
bribery, and the contents of its policies and regulations are disseminated to all employees of theCompany through online training programs utilizing the Compliance Manual. Furthermore, in order toensure the appropriateness of business operations, the Corporate Planning Department, the division in
charge, receives various reports at affiliate company meetings, etc., held in accordance with the Affiliate
Company Management Regulations, and provides advice on compliance and risk management mattersto the Group companies as necessary.
The Group companies operate their businesses based on the division of duties and authorities
determined by each company, while directors are dispatched from the Company to important companies of the Group to supervise their business operations. Meanwhile, the Internal Audit Department
audits the Company’s group management system as well as important companies of the Group, andreports the results to the Representative Director and President, the Board of Directors, and the Boardof Corporate Auditors, thereby implementing group-wide anti-corruption measures.

35

Governance

In FY2021, there was no case of bribery or other corrupt or anti-competitive behavior and no
employee dismissal.

Insider Trading Prevention Initiatives
In accordance with the Internal Information Management Regulations, we appropriately manage
undisclosed insider information and ensure fair information disclosure in dialogues with shareholders.
Moreover, the Company’s Compliance Manual clearly stipulates the prohibition of acts that violate theinsider trading regulations, and training is provided to all our employees to prevent insider trading
through regular educational activities.

Exclusion of Relationships with Anti-social Forces
We recognize that any connection with anti-social forces will seriously damage society’s trust in acompany and have a serious impact on the company’s continued existence. Our Compliance Regulations and Compliance Manual stipulate that we shall resolutely confront anti-social activities and forces
and shall not have any relationship with them, and we are committed to eliminating anti-social forces.
The Human Resources & General Affairs Department oversees the prevention of damage caused byanti-social forces and the elimination of relationships with them. In accordance with the Regulations for
Investigating Interested Parties and the Manual for Dealing with Anti-social Forces, the Department
works to ensure that all employees are aware of how to deal with anti-social forces in daily businessactivities, and investigates the credibility of shareholders, officers, employees, business partners, andothers involved in corporate activities to eliminate the intervention of anti-social forces. Furthermore, in
cooperation with lawyers, police, and other authorities, we strive to develop and strengthen a system toblock any relationship with anti-social forces.

Anti-Money Laundering, Counter Financing of Terrorism, andCounter-Proliferation Financing
As a real estate transaction agent and a Type II Financial Instruments Business Operator, we havepositioned Anti-Money Laundering, Counter Financing of Terrorism, and Counter-Proliferation Financing(hereinafter referred to as “money laundering, etc.”) as one of our important issues of management, theCompany will establish a management system and implement measures in accordance with therisk-based approach under the leadership of the managements, based on the Act on Prevention ofTransfer of Criminal Proceeds, and other related laws and regulations, as well as guidelines issued byrelevant ministries and agencies.
In addition, in order to respond to changes in increasingly complex and sophisticated money
laundering and other risks, the Company will consider necessary revisions within the PDCA cycle.

SAMTY SUSTAINABILITY REPORT 2023

Sustainability Management

Environment

SocialCompliance Consultation and Reporting Desk for Business Partners
The Samty Group has established a Compliance Consultation and Reporting Desk to enable directors
and employees of its business partners to consult with and report any compliance violations by theGroup.

Governance

36

Note
We do not accept false reports, reports that are intended to slander or defame others, or reports forbusiness purposes.

User
Directors and employees of business partners doing business with the Samty Group companies

Subject of consultation and reporting
Consultation and reporting of any and all matters relating to non-compliance (including possible
non-compliance) by any of the SAMTY Group companies

Correspondence desk
Compliance Management Division, SAMTY Co., Ltd.

How to consult or report
For inquiries and reports, please utilize the ‘Consultation/Reporting Form’ on our website.
When consulting or reporting, please be sure to include the name of your employer and department, your name and e-mail address, and the content of your consultation or report.
Please be as specific as possible in the Details of Consultation/Reporting section, including thespecifics of what was said or done, when, where, by whom, to whom, and how, as well as the frequency.

Protection of the informant
1. Personal information provided will be used only to the extent necessary for investigation and response
and handled in strict confidence.
2. T he content of the consultation or report will be shared only with the minimum number of parties
involved for investigation and response.
3. We will never treat the informant or business partner in a disadvantageous manner for the reason thatthe informant or business partner consulted or reported the matter. Any disadvantageous treatmentof any person for consulting or reporting is prohibited by the internal rules, and violators will bepunished strictly.

SAMTY SUSTAINABILITY REPORT 2023