Sustainability Book

2020
7-3 Nihonbashi Odenmacho, Chuo-ku, Tokyo, Japan
Phone: +81-3-5623-8101
URL: https://www.hulic.co.jp/en/As a corporation with a social presence, we aim to

Our Performance in FY2019

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

practice management that is linked to our businessOur business performance for FY2019 saw record high income,and Sustainability

with Operating Income of JPY88.3 billion, an increase of 16.9%

The Group has formulated another Medium- and Long-term

strategy and ESG* initiatives, and to contribute to thefrom the previous fiscal year, Ordinary Income of JPY84.6 billion, anManagement Plan (2020–2029) upon achieving almost all goals inincrease of 16.7% YoY, and Profit Attributable to Owners of Parent

the previous Long-term Management Plan (2014–2023) four years

realization of a sustainable society.

of JPY58.8 billion, an increase of 18.7% YoY. We achieved most ofahead of the original target: FY2023. With this new plan, based on

our targets under the Long-term Management Plan “Hulic 10 Years

our motto “driving innovation and accelerating progress,” we willfrom Now” four years ahead of schedule. ROE, an indicator ofcontinue to steadily increase corporate value by flexibly evolving in

capital efficiency, considerably exceeded the target level of 10% toresponse to changes in the macro-environment.

* ESG stands for Environment, Social and Governance

Message from the Management

As one of our basic strategies, we are implementing

annual dividends, which has been increased in every fiscal year sincemanagement that emphasizes sustainable co-creation andour listing in 2008, was increased again FY2019 by JPY6.0 to

co-existence with society. We aim to execute ESG-conscious business

JPY31.5. The major factors driving increase in profits were theoperations and to create value for solving social issues and for tackling

contributions of increased leasing revenue from completed

initiatives that combine social value creation with corporate growth.

developments and newly acquired properties in our focus areas ofGinza, Shinjuku East Side, Shibuya/Aoyama and Asakusa, as well as

Sustainability Materiality and Our Progress

an increase in sales gains resulting from the active property sales toFollowing the adoption of the Sustainable Development Goals (SDGs)

public and private REITs and rebalancing of leasing assets.

by the UN General Assembly in 2015, Hulic has considered what it

One of Hulic’s strengths is our corporate culture, allowing us to

can do as a real estate company toward realizing a sustainable

For more than half a century, Hulic has been operating a real estate leasing business focusing on a portfolio ofconstantly find challenges in progressive new business fields. For

society. We have identified our Sustainability Materiality and are

office buildings in central Tokyo. Our strength of having a solid business foundation, based on the prime locations

example, in our 3K businesses (koreisha (seniors), kanko (tourism)

carrying out various initiatives to address those issues. For theof properties, has allowed us to maintain continued growth of profits and dividends since our listing in 2008,
without being affected by market conditions even in the face of adversity, including difficulties associated withenvironment, we created a long-term vision for the environment thatgrowth fields that have rising social needs. We made steadyrecognizes our commitment to realizing a low-carbon,

progress in 3K businesses in FY2019.

material-recycling society by 2050. This is our ideal sustainable society

Related to senior citizens, in addition to owning nursing

for meeting the goals set out in the Paris Agreement adopted by thebusiness operations and value creation to solve social issues and pursue initiatives that combine social value

homes, we are promoting the smart senior housing project with our

UN General Assembly in 2015. To achieve this vision, we have set thecreation with corporate growth. In our corporate philosophy, we uphold the following values: “For the realization

business partners. This project refers to state-of-the-art facilities

goal of reducing CO2 emissions by 45% relative to the 2013 level byof a society full of safety, peace of mind and trust, and for the continuous improvement of corporate value”. As

using AI (artificial intelligence) and IoT (the Internet of things) to2030, and we are moving forward with energy conservation andpart of our management strategy, we consider that taking initiatives to address social issues will create businessmeet the challenges in nursing settings. In tourism, we are working

using renewable energy. Also, we have mapped out issues that are

on diversifying risk by separating the operation of our own brand ofimportant to Hulic and our stakeholders, and we have identified

hotels and ryokans (Japanese style luxury inns) from other

those issues with the highest priority as materiality. Every material

properties that we own and rent.

issue (materiality) is analyzed from the perspectives of opportunity

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

For the environment, we are developing Japan’s first 12-story

Environmental Initiatives

the Financial Crisis and the Great East Japan Earthquake. Hulic’s sustainable growth is supported by ESG-conscious

and kankyo (the environment)), we are moving ahead in theseSocial Initiatives

The starting point of Hulic's ESG Management is "For therealization of a society full of safety, peace of mind and trust,and for the continuous improvement of corporate value".

reach 13.6%, an increase from 12.7% the previous year, while the

Our Approach to Sustainability

Our Approach to
Sustainability

and risk, enabling us to take steps to capture opportunity andfire-resistant wooden hybrid commercial building in Ginza 8-chome,

respond to risk. To advance this initiative, we set quantitative KPIs andTokyo. Additionally, we are developing ways to achieve 100%

targets for each material issue as we evaluate our progress every year.

solar power generation plants.

To Our Stakeholders* RE100: We are aiming to use 100% renewable energy (the goal of RE100) by
developing solar power generation facilities for the entire Group by2025.

We fulfill the tasks and responsibilities demanded of us throughcorporate activities in the real estate business, aspiring to further
grow as we create value to share with society, customers, local
communities, shareholders, employees, and all other stakeholders.
In these activities, we look forward to enjoying the continued

Corporate Governancerenewable electricity with 100% inhouse non-FIT (non-feed-in tariff)

support of our shareholders.

CON TEN TS

Saburo Nishiura

Manabu Yoshidome

Chairman, Representative Director

President, Representative Director

Social Initiatives

Message from the Management

Initiatives for Customers ·························· 48

Corporate Governance ····························· 80

Corporate Philosophy and Sustainability ·············· 2

Initiatives for Business Partners ··············· 52

External Directors and External Auditors ···· 86

Value Creation Story ·············································· 8

Initiatives for Employees ·························· 57

Auditing Mechanism ································ 89

Initiatives for Local Communities ············ 70

Internal Control System ··························· 91

Initiatives for Shareholders and Investors ··· 77

Risk Management ···································· 92

Environmental Initiatives

SaburoNishiura

ManabuYoshidome

Basic Policy for Environment ··················· 18

Chairman,
Representative Director

President,
Representative Director

Building a Material-Recycling Society ····· 36

Initiatives for Climate Change ················· 25
Initiatives for Biodiversity ························ 45

Corporate Governance

External Evaluation

Our Approach to Sustainability

Compliance ················································ 95

External Evaluation
Third-party Assurance ······························ 98
External Evaluations ································· 98

Hulic Sustainability Book2020

1

Corporate Philosophy and Basic Stance

Corporate Philosophy

For the realization of a society full of safety,
and for the continuous improvement of corporate value
Basic Stance

Our Code of Conduct, which concretely describes our Basic Stance in an easy-to-understand manner from the viewpointof each employee, underlies actions our directors and employees should take.
1. R espect for human rights, prohibition of discriminationand sexual harassment
2. Compliance with laws, regulations, and rules
3. Sincere and fair execution of business
4. Appropriate management of information
5. Regulations of insider training
6. Insulation from anti-social forces

7. Concern for environmental conservation
8. Maintenance and stimulation of optimal communication
9. Respect for intellectual property rights
10. Prohibition of bribery, rules regarding entertainmentand gift-giving
11. Transparency of transactions, rules to ensure rationaltransactions

Sustainability Vision
We newly established “Sustainability Vision” in April 2020 replacing “CSR Vision” which was the bases for our CSR
related activities. The new Sustainability Vision embodies our simultaneous pursuit for the realization of a sustainable
society and achievement of continuous corporate growth.

Social Initiatives

peace of mind and trust,

Our Code of Conduct

Our Approach to Sustainability

Corporate Philosophy and Sustainability

We aim to pursue the realization of a sustainable society and continued
growth of Hulic by putting our corporate philosophy into practice.
We commit to take faithful approach to all of our stakeholders. To this end;

Ideal
Company

We aim to be a company that grows each day by utilizing stable corporate
infrastructures.
We always conduct business from a new viewpoint in an effort to increase ourcorporate value.

Stance to
Customers

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

Ideal
Employees

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

We lay the foundation for
the future by providing peace ofmind to our customers throughoffering our high value-added
products and services.

We take compliance seriously,
respect human rights,
and strive to perform transparent
corporate activities based on
our high ethical standards.

Relationships between the Philosophical Framework and Medium- and Long-term Management Plan

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

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

Basic Principles of Corporate Conduct

Corporate Philosophy
Clarifying what we value and why we exist as a company

Basic Stance

1.Awareness of Corporate Social Responsibility
Contribute to domestic and overseas economies and stable development of society by devoting ourselves to sound business based on
self-responsibility and fulfilling our social missions.

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

3.Faithful and Fair Conducts

Showing who we need to be to realize our corporate philosophy

Basic Principles of Corporate Conduct
Ethical standards to realize our corporate philosophy
and basic stance

Sustainability Vision
Creating shared value
with society through practicing
our corporate philosophy

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

External Evaluation

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

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

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

2

Hulic Sustainability Book 2020

Environmental Initiatives

Corporate
CultureWe create shared value with
our society by actively engaging
with the environmental issues
through our corporate activities.

Management Foundation

Corporate Strategies

Applicable Laws and Regulatlons

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

Company Rules

Hulic Sustainability Book 20203

Corporate Philosophy and Sustainability

Participation in Initiatives

Target Profile in
10 years“Driving innovation and accelerating progress” as our motto, we continue to steadily increase our

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

Basic Policy

Strike a balance between P/L growth, profitability, B/S soundness, and productivity (efficiency) at

In September 2015, the United Nations Summit unanimously adopted the SDGs as goals to be achieved by 2030. The SDGs consist of 17 goals in sucha high level and achieve further growth through dynamic transformation backed by overwhelming

areas as sustainable energy, the creation of a robust infrastructure, climate change countermeasures, and high-quality education.

speedy decision-making

Through our corporate activities, we address social issues and seek to find solutions. In concrete terms, we identify issues of great

corporate value through evolving ourselves flexibly in response to changes in macro environment

Our Approach to Sustainability

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

Sustainable Development Goals (SDGs)

Basic Strategies

Business

1. Further evolve the business

2. Strengthenmodel and restructure thedevelopment and value-

business domains andleasing portfolio

added businesses

improve Group strengthWEB

3. Create unique new

WEB

4. Strengthen the management

5. Implement management thatfoundation and implement stringent riskemphasizes sustainable co-creation andmanagement

co-existence with society

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

Task Force on Climate-related Financial Disclosures (TCFD*)WEB

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

Environmental Initiatives

Management Infrastructure

Materiality Assessment
https://www.hulic.co.jp/
en/sustainability/about/process/material_issues.
html

Social Initiatives

importance to us and our stakeholders as materiality issues, then implement measures to navigate the related opportunities and risks.

Mindful of the importance of disclosing climate-related financial information, we announced our support for the
information disclosure framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD*)
in March 2020 and have begun discussions on business risks and opportunities caused by climate change.
We will continue to convey to our stakeholders, in an easy-to-understand way, our initiatives for creating asustainable society, and we will work to further improve information disclosure.
Corporate Governance* TCFD (Task Force on Climate-related Financial Disclosure) was established by the Financial Stability Board (FSB), an international organizationthat includes the central banks of major countries as well as financial regulators. The TCFD proposes a framework for disclosing climate-related
information to investors.

RE100
In 2019, we participated in RE100, an international initiative for member companies to aim to use 100% renewableenergy for the electric power required for business activities. We intend to use 100% renewable energy by 2025,
developing our own solar power generation facilities that don't apply the feed-in tariff (FIT*) system to cover the
power consumption of the Group.
* The FIT system refers to a feed-in tariff system for electricity generated from renewable energy that went into effect in 2012. A portion of thecost of the electricity purchased by a utility company is added to the consumer’s bill so the taxpayer must bear some of the costs. Therefore,
achieving 100% of our renewable goal with FIT electricity is not compatible with the RE100 initiative.

Challenge Zero

External Evaluation

Challenge Zero (Challenge Net Zero Carbon Innovation), originated by the Japan Business Federation, is an initiativethat views the creation of a decarbonized society as an important management issue. Companies participate if
they are looking to develop innovative technologies early on and to implement them in society. The goal is to
produce net zero greenhouse gas emissions as soon as possible, in line with the Paris Agreement. Hulic plansdeveloping power generation and heat supply systems that use food waste from commercial facilities and hotels.
The system will be used in buildings to convert waste to energy, to achieve zero emissions, and to save on labor
during operations. We are also striving to create a model for revitalizing forestry business by using wood biomass.

Support of the Japan Business Federation’s One Percent Club Initiative
We support the One Percent Club initiative, a move advocated by Keidanren (Japan Business Federation). We arecommitting to spend at least one percent of ordinary income on social causes every year.

4

Hulic Sustainability Book 2020

Hulic Sustainability Book 20205Corporate Philosophy and Sustainability

Activities of Sustainability Supporters

Over the years, Hulic has issued annual reports, primarily presenting business results and other financial information, and CSR
reports that primarily provided an outline of our nonfinancial activities. This year, for the first time we issued Integrated Report
2020, which improves on both types of conventional report. In the Integrated Report, we describe how our strengths have beenused to create value for customers, society, and the Company. We also present financial information and outline the sustainability
initiatives supporting our corporate growth in an easy-to-understand way for stakeholders. The aim of the Integrated Report is tocreate the opportunity for a new dialogue. The Integrated Report is reviewed by the Board of Directors prior to being issued.

Approximately 20 employees are appointed from Hulic Group companies as sustainability supporters. They are relievedby other members after completing a one-year term. The Sustainability Supporter Meeting, where sustainability
supporters meet, discuss and propose activities related to sustainability of the entire Group. They are also actively
engaged in volunteer activities including summer festival and sorting of used stamps collected from each groupcompany for donation.

WEB

Our Approach to Sustainability

Issuing an Integrated Report

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

Organizational Structure
Establishment of the Sustainability Committee
Sorting used stamps

Environmental Initiatives

We have transformed the “CSR Committee” to “Sustainability Committee” (the Committee) upon establishing
the Sustainability Vision. The Committee will discuss and coordinate material management matters relating tostrengthening of our long-term competitiveness and risk management reflecting discussions and developments
associated with not only CSR but also ESG and SDGs in Japan and around the world.
The President chairs the Committee as commitment of top management is of upmost importance in successful medium
and long-term engagements. Other members of the Committee include Vice President, Senior Executive Managing
Officer, General Managers of Business Planning and Management Department, Real Estate Planning Department andTechnology and Environment Development Department. The Committee meets annually as well as when necessary. The
Committee also reports regularly to the Board of Directors.

Organizational Structure
Board of Directors
ReportSustainability Committee
Discuss and coordinate sustainability including the policy for sustainability activities reflecting
ESG/SDGs related developments both at home and around the world
Chairperson: President Members: Vice President, Senior Executive Managing Officer, GMs of Business Planning and Management Department, Real Estate
Planning Department and Technology and Environment Development Department

Corporate GovernanceCorporate Sustainability Office, Business Planning and Management Department•

Planning and management of sustainability related matters

Sustainability Supporters
Environment

Social（Priorities）
・Practice health conscious management
・Improve customer satisfaction
・Pursue business opportunities related to seniorcitizens
・Pursue business opportunities in tourism
・Support and practice diversity
・Increase employment of people withdisabilities
・Encourage applications for the various
parenting support programs
・Encourage taking of planned paid time-offs
・Support continued study

Information disclosure（Examples of major activities）＜Social Welfare＞
Grant-type scholarship programfor certified
caretaker
Employee Match Gift Program＜Mécénat＞
Supporting Shogi (Japanesechess)＜Healthcare & sport＞
Supporting Japan
Para-Badminton Federation＜Community activities＞
Opening of inhouse day-carenursery to the
local community＜Education＞
Contribution to Kyoto University
grant-type
scholarship program＜Academic research＞
Hosting of Student Idea
Competition

External Evaluation（Priorities）
・Facilitate measures to curve global
warming to our buildings
・Use of renewable energy anddevelop new technology
・Facilitate longevity measures to ourbuildings
・Reduce waste from our buildings
・Reduce water consumption at ourbuildings
・Facilitate greening
・Practice environment-conscious
management
・Facilitate anti-earthquake measures
to our buildings

CSR

Communication

Stakeholders
Shareholders,
Investors

6

Hulic Sustainability Book 2020

Employees

Customers

Business Partners

Government andPublic Administration

Local Communities

Global Environment

Hulic Sustainability Book 20207

Value Creation Story
Our Approach to Sustainability

Hulic’s Value Creation Process
Total commitment to our customers and the community, Creating productive environments,
Creating amenity, Promoting peace of mind
Materiality identified from social issues

Environment-related
issuesActions for climate change
Efficient use of resources
Promotion of the ecosystem
protection and restoration
Enhancement of environmental
management system

Social issues

Strengths Created from Selection
and Concentration*1

Driving Innovation and
Accelerating Progress(Manufactured capital)•Approximately 250 properties owned or under management• Focus areas: Ginza, Shinjuku East Side, Shibuya / Aoyama,

Business Activities(of which, 264 are in the real estate business)• Ordinary Income per employee (parent company basis):
JPY 447 million(Intellectual capital and natural capital)• Formulate and implement the Hulic Guidelines for Longer

Life Building• Introducing natural ventilation and natural lighting systems
that developed with MIT• Operational improvement using AI and IoT technologies

35.4 %•Dividends per share

31.5 yen•Net D/ E Ratio

2.0 times*3•Debt /EBITDA

10.1 times*

Non-financial achivements
Targets were achieved for;2

• Credit rating: A+• Equity: JPY 459 billion• Equity ratio: 30.0%*

ESG Initiatives

3

Strong relationships with local
communities, business partners(Social capital)• Public-private coordination in PPP business• Coordination and cooperation with management andconstruction companies• Corporate culture that fosters robust social contribution

to support business3

Details

Pages 48 to 52

Peace of mind and amenity for employees■ Workplace rich in diversity and inclusion■ Workplace with work-life balance■ Providing career development support

Details

Pages 57 to 69

Environmental considerations■ Extending the lifespan of buildings■ D eveloping environmentally conscious and energy-savingbuildings■ P rotecting the global environment by introduction ofenvironmental technology■ Achieving RE100 and Offsite ZEB
Details

Pages 18 to 47

Peace of mind and amenity for investors■ Achieving stable financial growth■ Increased dividends every fiscal year since TSE First Section
listing■ Providing diverse forms of mutual communication
Details

External Evaluation•CO emissions intensity• Number of investments in renewable energy facilities• Number of buildings with longer life designs• Number of greening buildings• Percentage of new buildings meeting new earthquake-(Financial capital)

Pages 77 to 78

resistance standards

E
E (environmental)
initiatives

S

G

S (social) initiatives

G (governance)
initiatives• Usage rate of paid leaves• Ratio of female managers• Employment ratio of persons with disabilities• No. of BCP drills
Targets

activities*1 A
 s of December 31, 2019

Continue evolving for further progress
Hulic Sustainability Book 2020

13.6 %•Dividends Payout Ratio

New and other
Businesses

Value-added
Business

Stable financial base

8

•ROE

(Major related SDGs)■ High value-added real estate■ High energy-saving performance buildings■ B uildings prepared for customers’ BCP with particular emphasison earthquakes and water damage■ A ctive development of businesses in response to demographic
change (aging) and social dynamics (increasing tourists)

Corporate Governance

Development
Business

Leasing Business

JPY 84.6 billion

Average rate of growth of Ordinary Income: 22.9%

Balanced Management• Employees (consolidated basis): 1,878

Peace of mind and amenity for customers

Environmental Initiatives• Ordinary Income

Strike a balance between P/L Growth, Profitability, B/S Soundness,
and Productivity (efficiency) at a high level(Human capital)

Value Created for Society

Financial achievements*2

A small group of elite professionals

Initiatives in advanced
technology development

Achievements ofBusiness Activities

Growth Strategies and Business Activities

Properties in prime locations

Asakusa• Over 70% of Hulic’s properties are in Tokyo 23 wards(excluding residential and related properties)•Approximately 80% of properties are within a 5-minute walkof a station (excluding residential and related property)

Corporate governance andcompliance
Response to changes in financial
and real estate markets
Business continuity plans (BCP)

Social Initiatives

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

Bringing about a society filled withpeace of mind and amenity
Continued increase in corporate value

Corporate Governancerelated issues

KPIs and targets Pages 14 to 17

Peace of mind and amenity for local
communities and business partners■ Contributing to positive long-term relationships■ Contributing to resolution of global issues■ Providing broader social contribution activities
Details

Pages 52 to 56, 70 to 76*2 FY2019 results*3 5
 0% (JPY75 Bln) of hybrid finance raised in 2018 (JPY150 Bln) was
calculated as nominal equity.
Hulic Sustainability Book 20209

Value Creation Story

Hulic has been providing buildings that match the needs of the times and society for excellent safety,

Materiality Assessment

environmental features, and convenience.
As social issues and stakeholders' interests diversify, we will continue to address issues in society throughassessing opportunities and risks in our businesses to achieve sustainable growth.

Step 1

Communication with Stakeholders
all, the major stakeholders that we actively engage in anddelivering environmental, social and economic value throughcollaborate with are identified below.

interactive communication with all stakeholders. Above

Identification ofsocial issues

Evaluation ofmateriality

Identification ofmateriality

Discussion and confirmationby the management

Analyze global social
issues* and ESG
trends to identify
a wide range ofenvironmental, social,and economic issues

Quantify and evaluatesocial issues fromthe viewpoint of
their impact on
stakeholders andHulic's management,
then prioritize

Assess and identify
materiality basedon the two criteria:
importance to Hulicand to its stakeholders

Identified materiality
are to be examined
and confirmed atmanagement meeting* S DGs, Global Risk Report
2019, etc.

Customers

ExamplesBusiness Partners

We value teamwork andwork to make our workplace
open and employee friendly.

We strive to provide services to meet the detailed
customer needs and deliver buildings that are safe,
secure, comfortable and highly convenient toimprove the level of customer satisfaction.

・Tenants
・Facility users,etc.

We work to build
relationships that mutuallyenhance the corporate valueof both parties assuming
long-lasting business
transactions through closeand mutual communication.

Examples・Building managementcompanies
・Construction companies
・Building maintenancecontractors
・Real estate agents, etc.

Shareholders,
Investors

Administrative
Organizations

Relevance (high)Materiality for Hulic

Identified materiality (classified by ESG)

We work to enhance public
private partnerships (PPP)
business that meets theneeds of municipalities.

ExamplesExamples・Individual investors
・Buy-and-hold investors, etc.

・National and local publicbodies, etc.

ExamplesWe are mindful of the global
environment and actively work to
use natural energy effectively andconserve biodiversity.

・Natural environment,
ecosystem
・Resources, materials
・ESG investors, etc.

Local Communities
We emphasize communication
with local communities andconstantly work to build positive
relationships with them.

Examples・Local communities, etc.

Social issues

Corporate governancerelated issues

Actions for climate change

Provision of safe and secure lifestyles

Efficient use of resources

Provision of healthy and comfortable lifestyles

Corporate governance andcompliance

Promotion of the ecosystem
protection and restoration

Coexistence with business partners / local
communities

Response to changes in financial
and real estate markets

Enhancement of environmental
management system

Response to aging society

Business continuity plans (BCP)

Response to increasing number of tourists
External Evaluation

Global Environment

Environment-related
issuesStriking a work-life balance and advancementof talent development
Advancement of diversity & inclusion andrespect for human rights
Practicing sustainable agriculture10

Hulic Sustainability Book 2020

Corporate Governance

We are committed to abroad range of mutualcommunication withshareholders and investors
through timely andappropriate disclosures aswell as providing
presentations on businessresults and various investor
relations (IR) meetings.

Relevance (high)Environmental Initiatives

Examples・Employees of the Hulic
Group, etc.

Materiality Matrix

Materiality for our stakeholders

Employees

Step 4Social Initiatives

The Group is committed to realizing a sustainable society by

Step 3

Step 2

Our Approach to Sustainability

Materiality

Hulic Sustainability Book 202011

Value Creation Story Materiality

Promote efficient use ofresources〇 Heightened need for facilities utilizing resources effectively and recycling technologies● Risk that business activity may wane if resources were exhausted

・Adoption of longer life building design
・3R (Reduce / Reuse / Recycle) initiative (adoption of PC construction method, reuse of construction materials,
reduction of plastic waste)・Development and adoption of technologies to make effective use of resources (water-saving equipment, etc.)

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

・Use of labelling systems including JHEP certification, etc.
・Promotion of greening in development projects

Enhance environmental
management system〇 Creation of new business opportunities through taking actions against environmental issues as ourcore business● Risk of delayed action on environmental issues due to lack of environmental management system

・Organizing the Environmental Advisory Council which is consisted with outside experts, establishment of reporting
environmental issues to the Board of Directors meetings
・Establishment of long-term environmental vision with targets for 2050

Deliver safe and secure
lifestyles〇 Heightened need for properties that are safe and secure from natural disasters including
earthquakes and flood damage● Rise of vacancy rate and decline of real estate value due to delayed actions on earthquake resistancetechniques and BCP preparedness

・Active adoption of earthquake-absorbing and earthquake-damping structures (initiatives to improve earthquakeresistance of buildings)
・Implementation of thorough natural disaster risk management in newly acquired properties

Deliver healthy andcomfortable lifestyles〇 Heightened need for comfortable, healthy and productive indoor environments● Reputational risk if health damage occurred in one of Hulic’s buildings

・(Initiatives in business) Delivering a healthy and comfortable indoor environment, confirming specifications offacilities and interior materials in existing properties and those under development (use of interior finishes andequipment containing no hazardous substances)
・(Initiatives for employees) Promotion of health and productivity management (introduction of no-smoking hours,
medical checkups on par with examinations that exceed legal requirements, etc.)

Coexistence with business
partners / local communities〇 Better results are expected through synergies brought by aiming for mutual sustainable growth withour business partners and local communities● Our reputation may suffer and relationships may deteriorate if we neglected local connections

・Establishment of long-lasing good relationships through close and continuous mutual communications (Tenants)
Implementation of customer satisfaction surveys, delivering fine-tuned response to tenant needs (Business partners)
Establishment of close communications with management and constructions companies (Local communities)
Organizing summer festivals, neighborhood cleanup activities, etc.

Respond to aging society〇 Heightened need for nursing homes and hospitals with the aging of society and increase in numberof healthier senior citizens● Hiring-related costs may rise and shortage of care workers may materialize as the population ofyoung generation declines

・(Initiatives in business) Promotion of senior citizen-related businesses (development of and investment in nursing homes)・(Initiatives for talent acquisition) Attraction of talent with a series of top-notch fringe benefit programs, securingof workforce through rehiring of elderly persons who wish to work, extension of the retirement age and offering
more flexible work styles
・(Social contribution) Establishment and operation of Hulic Scholarship Program for Training of Welfare Caretakers

Respond to increasing
number of tourists〇 Rising need for accommodations due to increase in inbound tourists● Risk of losing hotel guests if we failed to respond to diverse tourist needs

・Promotion of tourism-related business (owned /leased, or managed by the Company)
・Responses to the diverse needs of tourists by offering a wide range of lodging options (owned /leased: a wide range ofbusiness-oriented and luxury hotels in selected locations; Hulic-managed: primarily upscale hotels and luxury hot spring inns)

Strike a work-life balance
and advance talentdevelopment〇 Improvement of employee motivation and brand value in talent acquisition by enhancing workplace
wellness features and enriching talent development program● Turnover rate may rise if support programs were insufficient for various work styles

・Provision of supporting framework for employees during pregnancy, childcare and caring for the elderly, and raisingawareness on related programs
・Enhancement of measures to support nurturing the next generation (monetary gift on childbirth, establishment of
onsite daycare nursery, childcare subsidy program, etc.)
・Advancement of work style reform and thorough tracking of work hours as a corrective measure to change long
working hour culture
・Enhancement of support program for obtaining qualifications and in-house training program

Advance diversity &inclusion and respect forhuman rights〇 Improvement of operational quality and productivity can be achieved by respecting diversity &inclusion● Reputational risk may rise if we failed to respond to the need for diversity & inclusion

・Awareness raising on diversity management, provision of various programs and mechanisms
・Initiatives to establish a talent management system that recognizes various work styles including work from home
・Employment of diverse human resources
・Active employment of persons with disabilities

Practice sustainableagriculture〇 Heightened need for low-cost, high-quality agricultural products at developing countries due todecline in Japan’s farming population● Increase of investment costs in response to climate change and changing market conditions

・Promotion of agricultural business with a company in Vietnam
・Strengthening of cooperation with and introduction of new technologies with domestic agricultural companies
through investments
・Information gathering on new crop varieties through joint ventures and implementation of trial cultivation ofmultiple varieties throughout the year

Further strengthen
corporate governance andcompliance〇 Improvement of confidence on management is expected when internal controls and corporate
governance function effectively● Non-compliance issue and deterioration of public confidence may occur due to lack of appropriate
compliance culture and system

・Appointment of external directors / auditors with knowledge in a variety of specialized fields
・Establishment of nomination committee and compensation committee
・Provision of compliance trainings for all employees / establishment of compliance hotlines

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

Enhance business continuity
plans (BCP)〇 A sense of security for employees and their families may be delivered through taking stronger
measures to ensure safety in case of a disaster● Delayed resumption of business due to prolonged restoration of head office functions

・Formulation of BCP, implementation of annual drills
・Establishment of cooperative program with external parties to examine situations and implement response
measures on Company properties in times of disaster

Environment
SocialCorporate Governance12

Hulic Sustainability Book 2020

External Evaluation〇 Heightened need for buildings and properties equipped with higher energy efficiency and renewableenergy● Need for additional measures to comply with environmental regulations. Increase of utility expenses
due to a rise in energy consumption for air conditioning

Corporate GovernanceTake actions for climatechangeMajor related SDGs

Environmental Initiatives

Hulic’s Major Initiatives and Actions
・Active adoption of environmentally friendly technologies (natural lighting systems and natural ventilation
technologies developed jointly with MIT, etc.)
・Investment in renewable energy facilities, promotion of offsite ZEB, support for RE100 initiative and achievement
by 2025, support for TCFD initiative
・Promotion of forest circulation through practicing wooden structure constructions

Social Initiatives

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

Our Approach to Sustainability

Opportunities and Risks related to Materiality and Our Actions

Hulic Sustainability Book 202013

Value Creation Story

We aim to increase our corporate value and solve social issues simultaneously. Therefore, with respect to key
performance indicators (KPIs)/ targets, we are addressing to achieve both financial and non-financial aspects with thesame amount of importance.

Major Non-Financial Information
E

CO2 Emissions Intensity*1

59.1 kg-CO /m
2(Achieved in 2019)
80.0

72.6

Non-financial information KPIs/targets and results, classified by ESG, were shown below.
to 2029).
Figures marked with “ ” have been assured by an independent assurance provider. For FY2019 results, we received assurance from an independent assurance
provider concerning the following eight items: electricity and gas consumption, CO2 emissions (Scope1, Scope2) and CO2 emissions intensity, number of greening
projects, waste disposal, water consumption, employment ratio of persons with disabilities, usage rate of paid leave, and percentage of employees who received
medical checkups. We will continue to disclose information on the progress of our ESG activities to the stakeholders while strive to improve disclosure quality using
PDCA cycle.

(t-CO2)

Scope 2 emissions (electricity)

50,000

Scope 1 emissions (gas)40,000

68.0

63.5

59.1

60.0

30,000

40.0

1,581

904 t

2
(t)
1,500

1,408

1,178

42,82333,848 33,647

In 2013, 77.3 kg-CO2 /m 2

0

2015

2016

2017

0

2019 (FY)2018

S

Water Consumption

51
blds

55
blds

58
blds

59
blds

2015

2016

2017

2018

2019

436,882

Percentage of New Buildings Meeting
New Earthquake-resistance Standards

524

300

7
blds

7
blds

2015

2016

0

437,314

(%)
100.0

100.0

100.0

100.0

100.0

100.0

400,000 381,553(Achieved in 2019)

20.2
18.5
15.6

2015

2016

55
blds

58
blds

59
blds

10.0

40.0

5.0

20.0

2017

2018

0

2019 (FY)

Usage Rate of Paid Leave

S

2015

2016

2017

Target 70 % or over

80.0

(Achieved in 2019)

78.3
71.4

71.6

77.0

2018

0

2019 (FY)

Employment Ratio of
Persons with Disabilities

78.5%
(%)
100.0

12.3
10.4

G

2015

2016

2017

2018

Participation Rate of Directors
in Board of Directors Meetings

2.42%
Target 2.2% or over

(%)
3.00

78.5

(Achieved in 2019)

2.31

2.41
2.21

2019 (FY)

99 %
(%)
100

98

96

97

98

99

2015

2016

2017

2018

2019 (FY)Corporate Governance

S

51
blds

2019 (FY)

Target 20 % by 2020

(%)
25.0

15.0

51
blds

2018

20.2%

60.0

0

2017

Ratio of Female Managers

S

80.0
300,000

100,000

8
blds

20.0

200,000

7
blds

611

100.0 %

3

420,076401,272525(FY)

Target 100 % (Achieved in 2019)(m3)
500,000

600

904

Environmental Initiatives

437,314 m

51
blds

9
blds

900

10,000

Achieved 24％ reduction

1,166

1,200

39,762 38,799

20,000

20.0

E

1,648

G GovernanceWaste Disposal

E

44,231 t-CO
1,433

S Social

Social Initiatives

For financial information KPIs, please refer to the pages elaborating Medium- and Long-term Management Plan (2020

70.4

CO2 Emissions*2

2

Target: reduction of 17%
compared with 2013(kg-CO2/m2)
100.0

E

E Environment

Our Approach to Sustainability

Key Performance Indicators (KPIs) /Targets and Results for Non-financial
Information

2.42
80

2.11

2.00
60.0

60
40

1.00
20.0
0

20

2015

2016

2017

2018

2019 (FY)

0

2015

2016

2017

2018

2019 (FY)0External Evaluation

40.0*1 CO2 emissions intensity is calculated by dividing the sum of CO2 emissions of electricity and gas consumption by the sum of total floor area of the buildings that arein the boundary. The boundary is the buildings Hulic has owned since December 31, 2013 to the end of each fiscal year.
*2 T he unit calorific value and the CO2 emission factor for city gas are based on values from “Law Concerning the Promotion of the Measures to Cope with Global Warming”,
while the CO2 emission factors for electricity are based on the actual emission factors of electric utility companies used by the buildings in the boundary.

14

Hulic Sustainability Book 2020

Hulic Sustainability Book 202015

Value Creation Story Key Performance Indicators (KPIs) /Targets and Results

Hulic’s Materiality

Initiatives

Environment

Assessment (◎:achieved, — no target
or target lies in future)

Relevant
page80,52580,80091,392—

52-57

662,719544,919

651,707—52-57

CO2 emissions intensity (kg-CO2/m2)*4 : Reduction in CO2 emissions intensity (kg-CO2/m2) by 17% during the period from 2017 through 2020, relative to 2013 (per unit
floor area)

16 properties owned since thebase year*5

72.6

70.4

68.0

63.5

59.1

◎

19, 52-57

Aim for achieving RE100 by 2025

Buildings occupied by Hulic and its
Group companies

—

—

—

—

—

—

49,54

Number of capital investments for renewable energy facilities: 3 investments or moreeach year

All Hulic’s properties

6 cases

3 cases

4 cases

6 cases

4 cases◎

55

Reduce waste at Hulic’s properties

Reduction in the average amount of waste (ton) by 15% during the period from2017 to 2019 compared with the average during period from 2005 through 2007. (perunit floor area)

7 buildings occupied by the head
offices of Hulic and its Group
companies*6

525

524

611

1,166

904

— *7

19,56

Reduce waste in newly developedbuildings

Technical measures (such as longer life design, etc.) to reduce construction waste:
Number of cases: 1 or more each year

All Hulic’s properties

8 cases

4 cases

6 cases

11 cases

5 cases◎

50,56

Reduction in average water consumption (m³) by 26% during the period from 2017
Reduce water consumption at Hulic’s
through 2019 compared to the average during the period from 2005 through 2007.
properties(per unit floor area)

59 major existing properties*2

381,553401,272

436,882

420,076

437,314

— *7

19,56

Promote the ecosystem
protection and restoration

Promote greening

Number of greening projects*8 : 1 or more each year

All Hulic’s properties

9 cases

1 case5 cases

9 cases

3 cases◎57

Enhance environmental
management system

Implement environmentally friendly
management

Aim to achieve Hulic’s long-term vision for the environment (2050 target) and CO2
emission reduction plan (2030 target), and organize Environmental Advisory Council
once or more each year*14

Hulic Group

—

—

—

—

1 time◎52-53

Deliver safe and secure lifestyles

Enhance earthquake
Percentage of buildings meeting new earthquake-resistance standards: 100% eachcountermeasures in Hulic’s properties year

All newly completed buildings◎

19, 58-59

Deliver healthy and comfortable
lifestyles

Advance health and productivity
management

Percentage of employees who received medical checkup: 100% each year

Hulic Co., Ltd.*9

100%

100%

100%

100%

100%

◎

62

Coexistence with business
partners / local communities

Improve customer satisfaction

Number of customer satisfaction surveys: 1 or more each year

Hulic Group

1 time1 time1 time1 time1 time◎59

Respond to aging society

Promote senior citizen-related
business

Nursing homes *10 (number of properties owned): No numerical target (follow-up
item)

Hulic Group

22 buildings

28 buildings

33 buildings

37 buildings

44 buildings—

46

Nursing homes * *Number of units: 5,000 in near future

Hulic Group

—

—

—

—

3,400 rooms—

46

Accommodation facilities*10 (number of properties owned): No numerical target(follow-up item)

Hulic Group

8 buildings

11 buildings

12 buildings

16 buildings

39 buildings

—

47-48

Promote efficient use ofresources

Respond to increasing numberof tourists

Promote tourism-related business

10 14

100％ (2 properties
in boundary)

100％ (6 properties
in boundary)

100％ (11 properties
in boundary)

100％ (4 properties
in boundary)

Accommodation facilities Number of rooms* * : 10,000 in near future

Hulic Group

—

—

—

—

8,200 rooms

—

47-48

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

Hulic Co., Ltd.

100％/2 people

100％/6 people

100％/0 people

100％/1 people

100％/6 people

◎

62

10 14

Enhance measures to support
nurturing the next generation

100％ (9 properties
in boundary)

Hulic Co., Ltd.

100%

100%

100%

100%

100%

◎

62

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

Hulic Co., Ltd.

71.4%

71.6%

78.3%

77.0%

78.5%

◎

19,62

Advance talent development

Number of additionally obtained qualifications by employees* * : No numericaltarget (follow-up item)

Hulic Co., Ltd.

—

10

31

21

23

—

61

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

Hulic Co., Ltd.

10.4%

12.3%

15.6%

18.5%

20.2%

◎

19,63

Number of seminars provided by the Diversity Promotion Project Team: Once eachyear

Hulic Co., Ltd.

1 time1 time1 time1 time1 time◎63

Increase employment of persons
with disabilities

Employment ratio of persons with disabilities: Maintaining the statutory employment
ratio of 2.2% or more (The statutory employment ratio was 2.0% in and before 2017)

Hulic Group*13

2.31%

2.21%

2.11%

2.41%

2.42%

◎

19,63

Enhance agribusiness

Production area (ha)*14: 15ha by 2025

Hulic Group

—

—

—

—

11

—

51

Corporate governanceParticipation rate in Board of Directors meetings: No numerical target (follow-up
item)

Hulic Co., Ltd.

98%

96%

97%

98%

99%

—

19, 66-67

Number of internal audits conducted: No numerical target (follow-up item)

Hulic Co., Ltd.

8 times

9 times

11 times

9 times

10 times—

68

Compliance

Number of compliance trainings received: No numerical target (follow-up item)

Hulic Co., Ltd.

5 times

5 times

5 times

5 times

5 times—70

Respond to changes in financial
and real estate markets

Risk management

Number of Risk Management Committee and Fund and ALM Committee
meetings*14 : twice each year, respectively

Hulic Co., Ltd.

—

—

—

—

4times/13 times◎

69

Enhance business continuity
plans (BCP)

Risk management

Number of BCP drills and inspections of stockpiled food and goods: Once or moreeach year

Hulic Group

1 time1 time1 time1 time1 time◎69

Further strengthen corporate
governance and complianceFurther increase programs foradvancing diversity & inclusion

12 14*10 Including properties sold/trusted to REIT
*11 The usage rate of paid leave is calculated by dividing the "number of days of paid leave used in the year" by the "number of days granted in the year excluding leave
carried over".
*12 The counted qualifications were those which the Company recommends employees to obtain.
*13 The subsidiaries included are the companies that were certified as affiliated subsidiary companies under the Act on Employment Promotion etc. of Persons with Disabilities
as of June 1, 2019.
*14 With regard to KPIs/targets, actual results before setting them as KPIs/targets were not listed.

Figures marked with “ ” have been assured by an independent assurance provider. For FY2019 results, we received assurance from an independent assurance
provider concerning the following eight items: electricity and gas consumption, CO2 emissions (Scope1, Scope2) and CO2 emissions intensity, number of greening
projects, waste disposal, water consumption, employment ratio of persons with disabilities, usage rate of paid leave, and percentage of employees who received
medical checkups. We will continue to disclose information on the progress of our ESG activities to the stakeholders while strive to improve disclosure quality using
PDCA cycle.

Hulic Sustainability Book 2020

External Evaluation*1 Targets for 2020 onward are being developed.
*2 The boundary is office buildings with floor area of 3,000m² or above and hotels managed by Hulic, and exclude buildings in which a bank branch is the sole tenant, realestate for sale, and shared ownership properties. The number of properties in the boundary were: 2015 and 2016; 51, 2017; 55, 2018; 58 and 2019; 59.
*3 Since 2016, we have aggregated city gas consumption that our group companies have direct contracts with city gas companies.
*4 CO2 emissions intensity is calculated by dividing the sum of CO2 emissions of electricity and gas consumption by the sum of total floor area of the buildings that are in theboundary.
*5 The boundary of CO2 emission intensity has been changed to the properties we owned since 2013 in order to appropriately reflect our initiatives for CO2 emission reduction.
The CO2 emission intensity figures from 2015 to 2018 were re-calculated accordingly.
*6 The boundary is the buildings occupied by the head offices of Hulic and its Group companies. The number of properties in the boundary were: 2015 and 2016; 7, 2017; 8,
2018; 9, and 2019; 7.
*7 We deemed inappropriate to assess achievement in comparison with the 2005-2007 average as we revised the boundary of properties in 2015.
*8 The number of completed properties in each year among those imposed with greening obligation (excludes real estate for sale).
*9 The executive officers, employees (including seconded staff) and full-time contract staff who were with the Company at the time of medical checkup and as of December
31, 2019 were counted (excluding personnel who were on leaves).

Corporate GovernanceRatio of employees returning to work after childcare leaves: 100% per year

Encourage the planned use of paid
leave

Environmental Initiatives

66,326
731,360

Social Initiatives

Social

FY201965,973Practice sustainable agriculture
Corporate Governance

FY2018762,552

Advance diversity & inclusion
and respect for human rights

Hulic Sustainability Book 2020

FY201759 major existing properties*2

Strike a work-life balance andadvance talent development

16

FY201659 major existing properties*2

Use renewable energy and develop
new technologies

Implement balanced
management withattention to group
governance

FY2015

Gas consumption(m3)*3

Take actions for climate change

Advance business withparticular emphasis onenhancing earthquake
resistance to build amore resilient society

Results*14

Coverage

Electricity consumption(MWh)Take actions for global warming
across the entire value chain of
Hulic's properties

Advance low-carbon
society initiatives
through the building
business

KPIs / Short-term targets, Medium- to Long-term Targets*1(If no fiscal year is given for a target, the target remains effective every year)

Our Approach to Sustainability

Initiatives in theClassified
Medium- and Long-Termby ESGManagement Plan, by ESG

17

Hulic contributes to achieving a sustainable society by

Long-term Vision for the Environment

executing environmentally friendly management as well

In 2018, Hulic set out to achieve sustainable growth by alleviating   We have decided to set the long-term vision for environment atand eliminating the impact of our business activities on climate

the center of our environment related initiatives considering the timeas by addressing global environmental issues.

change. We formulated our long-term vision for the environment

frame referred to in the Paris Agreement which was adopted in 2015

Basic Policy for Environment

with a target year of 2050, and we are working to achieve thisat COP21 (The 21st Session of the Conference of the Parties to thethrough a number of initiatives.

United Nations (UN) Framework Convention on Climate Change).

Long-term Vision for the Environment

Environmental Policy/Environmental Management System
Fundamental
Approach

Hulic executes environmentally friendly management to realize an ideal society of
low-carbon and material-recycling society in 2050.

Hulic will implement environmentally friendly management based on
the Hulic Environmental Policy and work to resolve issues associatedCurrent Recognition of Climate Change
We consider that climate change, including global warming, will provide our business with the following risks and opportunities
in the short and long term. We expressed our support for the recommendations issued by the Task Force on Climate-related
Financial Disclosures (TCFD)*1 in 2020, and started discussions on identifying the key drivers of risk and opportunity for us.

Hulic Environmental Policy* The TCFD was established by the Financial Stability Board (FSB) and recommended a disclosure framework primarily for the investors.

Hulic has formulated the Environmental Policy embodied in our Sustainability Vision and is executing environmentally friendly

Short Term (until 2030)

management to work towards solving various issues in the global environment. The following items are clearly stated in ourEnvironmental Policy.

We strive to create a sustainable society
while conforming to environmental laws andregulations.

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

❸ Environmental Performance❹ Material-Recycling Society
We contribute to the creation of a material-recycling,zero waste society, by executing the 3Rs, reduce,reuse, recycle, throughout the life cycle of buildings.

❺ E nvironmental Awareness and Education for
Employees•

Opportunities

We extensively disclose information on environmental
contribution activities, and communicate withstakeholders including local communities to expand
the circle of global environmental conservation.

the surrounding living environment so that we can gain theirinvestment in accordance with the Corporate Philosophy andunderstanding.

Sustainability Vision, but has also formulated regulations on   When outsourcing design and project management ormanaging real estate purchases and development.

ordering construction work, we generally hire companies

When conducting an investigation of the acquisition ofwith the solid technologies, credibility, and track records. In

real estate, Hulic always carries out statutory investigations

addition, when reconstructing and developing real estate,

and conduct studies on natural environment, specified

we issue instructions on environmentally friendly designs andhazardous substances, and the presence of undergroundcheck whether environmentally friendly designs are adopted

obstacles. In negotiations with communities, we provide

at the basic designing stage, implemental designing stage,

explanations to those who live nearby after conducting

and completion stage.

••

Development of new technologies for efficient use of natural energy
An increase in opportunities for cooperative projects with the central andlocal governments or private organizations, etc. to realize a low-carbon
society

Road Map for Realization of Vision

2050
Hulic's vision of an ideal society

2030❻ Environmental Communication

Hulic is committed not only to sustainable real estate

Hulic Sustainability Book 2020

An increase in demand for energy-saving
products and services• An increase in demand for renewable energy• An increase in profits from the sale of electric
power under the feed-in tariff (FIT) program

Damages to buildings due to natural disasters such as large- scale typhoons
and tornadoes, sudden rainstorms, and heavy snow caused by climate change• Material procurement risk due to environmental changes• A low functionality of air conditioning relative to heat triggered by global
warming and an increase in energy consumption•

Realization of a sustainable society

CO 2 emission reduction plan*1

2018
Setting reduction goals forenvironmental index andassessment of the progress
Formulation of goals for reducing CO 2
emissions, waste and water consumption
Progress management toward goals

Introduction of environmental
technologies to buildings
owned

Reduce CO 2 emissions by
45%*2 by 2030
Aiming for a 45% reduction, with
2013 as the base year
• Identify the amount of CO emissions
2of and verify the effects of reduction
measures applied to buildings•

Low-Carbon Society&
Material-Recycling Society

Application of energy-savings andrenewable energy technologies
Continual development of new technologies
and introduction to owned buildings

Application of Guidelines forLonger Life Buildings toreconstruction projects

Harmonization of business activities and environmental initiatives

External Evaluation

18*Emission rights purchase requirement on building
owners if the amount of CO2 emissions exceed the
reduction target.

We provide environmental education and awarenessraising activities to employees so that everyone
can proactively work toward the improvement ofenvironmental performance.

Consideration for Sustainability in Real Estate Development and Investment

sufficient investigations and simulations on the impact on

Risk of enforcement of CO2 emissions trading
system*Corporate GovernanceWe reduce as much of our environmental
footprint as possible by introducing eco-friendly
designs from the planning stage of development
in order to increase environmental efficiency.

Risks

Medium and Long Term (2030 onward)

Environmental Initiatives❶ Environmental Compliance•

Social Initiatives

with conservation of the global environment.

Our Approach to Sustainability

Environmental
Initiatives

Advancement of ZEB projects*1 T here is a growing social movement for CO2 emission reduction in response to adoption of the Paris Agreement at COP21 (The 21st Session of the Conference of theParties to the United Nations (UN) Framework Convention on Climate Change) held in December 2015. Corresponding to that requirement, the Company revisitedthe existing CO2 emission reduction plan, and has set a new reduction target by 2030.
*2 T his plan is based on the assumption that CO2 emission factors for electricity are to be decreased. It is expected that the Company could achieve the reduction target
earlier or more reduction than planned as we supply 100% renewable energy created at our 100% owned renewable facilities by 2025 to the buildings occupied by
the Group companies. (The Company declared support for and participation in RE100 initiative in November 2019, see P26 for more details)
Hulic Sustainability Book 202019

Environmental Initiatives● A chieving RE100 goal and offsite ZEB : we are aiming toachieve 100% renewable energy (the goal of RE100) by 2025

The Group has established a unique environmental

by developing our own solar power generation facilities tomanagement system (EMS)* based on the Hulic

cover all of the power consumption of the Group, including

Environmental Policy and is constantly improving it through a

all subsidiaries.

PDCA cycle. In particular, we have expressed our support for● L onger life design buildings : we are reducing waste

Board of Directors•

Review and improve

Rooftop solar chimney

Nutural lighting louvers and LED lighting(HULIC Head Office Building)(HULIC Head Office Building)

P lan
Business Planning andManagement
Department
Technology andEnvironment Development
Department
Current understanding
Basic policy
Initiatives and measures• Target (KPI ) formulation•••

related Financial Disclosures (TCFD) in 2020 regarding climate

accommodate tenant needs flexibly and can be used
developments and reconstructions.

A ctionthe recommendations issued by the Task Force on Climate-by making our longer life design of buildings that cansafely over a 100 years as standard specifications in all

Hulic’s Environmental Management System (EMS)

Our Approach to Sustainability

Establishing an Environmental
Management System (EMS)

Example of Specific Initiatives for Achieving Visionchange, and have started discussions aimed at strengthening
Continual Improvement

corporate governance by increasing involvement of the Board

Environmental risk mitigation andavoidance
Legal compliance• Energy and resource conservation• KPI (key performance indicator)
management•of Directors and committees.

•* T here is no office that has obtained certification for an environmental
management system such as ISO 14001 or EMAS in the Group.

developing fire-resistant wooden buildings using timber that
requires less energy for manufacturing and processing as

C heckwell as contributes in fixing carbon.
● Environmentally friendly technologies : we have

Sustainability
Committee

developed unique natural ventilation and natural lighting

Risk Management
Committee
Environmental Advisory
Councilsystems (louvers) in collaboration with the Massachusetts
Institute of Technology. We have also obtained patents for

Photovoltaic panels

and are commercializing photovoltaic panels, which were•

(HULIC Head Office Building)jointly developed with another company, and a thin-layered•

Confirmation andinspection
KPI progress and results

Do
Real Estate Business
Division
Execution of businessplan in line with CSR
Procurement Policy• Collaboration with theGroup companies,business partners, etc.
• BCP•

PLAN: Planning and Management related to Environment
Formulate plans and initiatives, and set KPI targets such as reduction of CO2 emissions on the back of current recognition andWith the aim of thoroughly complying with laws andin the subsequent formulation of environmental policies.

regulations related to the environment, including waste and   There were no violations of environmental laws andsoil pollution, the Hulic Group communicates to all employees

regulations in the last four years (2016 ~ 2019).

information on the latest trends in environmental laws andregulations and legal systems, as well as our sustainability-

understanding.

DO: Operations

Environmental Initiatives

wall greening system, natural lighting films etc.

Environmental Compliance

Social Initiatives● Fire-resistant hybrid wooden buildings : we have been

Execute business plans in line with CSR Procurement Policy in collaboration with the Group companies, business partners, etc.

related initiatives and actions including environment throughEnergy Conservation Promotion Activities for Our Leased Buildings

as needed.

Activities to Promote Energy-saving Cooperation with   We use opinions raised during the compliance training

Building Management Companies

Energy Conservation Promotion Facilities
Management Organizational Diagram

Hulic has created an energy management standard, which it
shares with property management companies in charge ofMajor Environmental Laws and Regulations

its properties, in order to rigorously manage the progressof energy conservation activities. The energy management
standard was created to promote more efficient energy

20

Hulic Sustainability Book 2020

·Act on the Promotion of Sorted Collection and Recycling ofContainers and Packaging (Containers/Packaging Recycling Act)· Construction Waste Recycling Act·Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof·Basic Law for Establishing the Recycling-based Society·Industrial Safety and Health Act·Act on Special Measures concerning the Proper Treatment of
Polychlorinated Biphenyl Waste, etc.

saving activities at buildings, and it serves as a guideline formanagement, measurement, recording, maintenance, andinspections related to the rationalization of energy use basedon building type and size. This standard applies to all formsof energy, including electricity, gas, and water (water andExternal Evaluation· Basic Environment Act·Act on Promotion of Global Warming Countermeasures·Act on the Rational Use of Energy (Energy Conservation Act)
·Air Pollution Control Act·Noise Regulation Act· Vibration Regulation Act·Soil Contamination Countermeasures Act·Waste Management and Public Cleaning Act·Act on the Promotion of Effective Utilization of Resources

Corporate Governancethe intranet, and provides environmental compliance training

sewerage).

Hulic Sustainability Book 202021

Environmental Initiatives

CHECK: Confirmation and Inspection

Hulic has actively worked on the promotion of energy

will proactively introduce newsavings, use of renewable or unused energies, and greening

energy-saving technologies

Confirmation and inspection of initiatives throughpromotion, etc. as measures for climate change in engaging

and improvements of existing

monitoring and assessment by both in-house and externalin new development and managing existing buildings owned

performance. In addition, Hulic

parties in order for constant improvement of EMS.

by Hulic. Specifically, we use high-efficiency, air conditioning

will conduct its own researchsystems, total heat exchangers heat pump systems that use

and development on energy-

unused energy, and cogeneration systems /storage batteriessaving technologies.

WEB

Sustainability Committee
https://www.hulic.co.jp/en/sustainability/about/philosophy.
html#anc10

Risk Management Committee
https://www.hulic.co.jp/en/sustainability/governance/risk_
management.html#anc1

Environmental Advisory Council

Our Approach to Sustainability

Adoption of Energy-saving Technologies

We have been regularly holding Environmental Advisory Council from 2010 which is comprised of external advisors who aredepending on the features of properties. In addition, we

experts in environment and our top management team. The Council has been providing external views from professional and

Measures to Enhance the Effectiveness of Energy Conservation Promotion Activities

technological standpoints and has been helping us to advance our initiatives of creating shared value with society.

Promoting the Visualization of Energy
conservation efforts by measuring energy consumption forused annually per square meter at each of its company-

each individual year. The basic unit chart also calculates andToshiharu Ikaga (Professor, Keio University)

owned lease buildings in order to analyze and understandevaluates electricity, gas, heat (steam, hot water, cold water)

Yoshihiro Fujii (Representative Board Chairman, Research Institute for Environmental Finance)energy sourced from outside each building is being used. The

and water usage for each tenant and facility. Going forward,

Takao Kashiwagi (Specially Appointed Professor & Emeritus Professor,Tokyo Institute of Technology)

basic unit chart contains data for each year from fiscal year

measures will be considered for how to utilize this data inKeisuke Takegahara (Deputy Chief Research Officer, Chief Manager of Sustainability Management Office, Corporate Planning

2010, which makes it possible to evaluate current conditions

more energy efficiency renovations and improved building

and carry out more evaluates the supply of electricity

management practices.

Introduction of Energy-saving Measures in Cooperation with Tenants
reduction measures through more efficient operations, andyear, adjustments will be made with each tenant, thenimplement small-scale renovations as needed.

we examine equipment settings and propose utility cost

& Coordination Department, Development Bank of Japan Inc.)
Members from Hulic
Chairman, President, Vice President, Senior Executive Managing Officers, and General Managers of real estate and environmentrelated departments, etc.

ACTION: Review and Improve

Efforts to Reduce the Amount of Paper Use in Offices

Continual improvements are made on environmental

2020 regarding climate change. We will take appropriate

With an eye to increase awareness of paper consumption

initiatives reflecting the results of in-house and external

actions including strengthening of corporate governance byreduction inside the Company, we are calling on employees

confirmation and inspection. In addition, we have expressed

increasing involvement of the Board of Directors and otherthrough the company intranet to reduce paper consumption,

our support for the recommendations issued by the Task

committees after assessing the climate-related risks andpromoting both-side printing and intensive printing, andForce on Climate-related Financial Disclosures (TCFD)* inopportunities on our businesses.

implementing the electronic circulation of documents and an* The TCFD was established by the Financial Stability Board (FSB) and recommended a disclosure framework primarily for the investors.

Paper consumption per person (Hulic Head Office)Environmental Initiatives

Based on the building’s electricity consumption for one

External Advisors

Social Initiatives

Hulic prepares a basic unit chart on the amount of energy

electronic approval system as required.
   Going forward, we will promote activities to reduce

Environmental Awareness and Education for Employees

further and digitizing documents.

We work on environmental education and awareness activities in order to enable each employee to voluntarily act toward theimprovement of environmental performance.

Environmental Education
The Hulic Group participates every year in the Tokyo Green

employees every year, provide them good opportunities

Ship Action, organized by the Bureau of Environment of theto learn about biodiversity. The Technology andTokyo Metropolitan Government, to raise environmental

Environment Development Department, which promotes theawareness, and engages in volunteer activities such as riceenvironmental businesses of the Group, provides training on

harvesting and trimming weeds and shrubs at the footsenergy-saving designs, etc. for new employees yearly.

Corporate Governancepaper consumption by streamlining operational processesof mountains. These activities, with participation by many
External Evaluation

Satoyama Conservation Activities: rice harvesting experience, trimming of shrubs and weeds

22

Hulic Sustainability Book 2020

Hulic Sustainability Book 202023

Environmental Initiatives

Initiatives for Climate Change
We have introduced environmental accounting sinceand to that end, we have actively implemented a number

Fundamental

2011, and have been disclosing the result on our website

of environmental measures. By linking this CO2 reduction

Approachin order to execute efficient and effective environmental

plan and our environmental measures, we plan to achieveconservation activities by understanding the costs toeven more effective investments in energy-saving measures.

protect the environment in business activities, as well as

Managing figures to understand what kinds of effects could

the effects of these activities. Hulic has established thebe achieved from which investment makes it possible totarget to reduce total CO2 emissions from all of its officeeffectively allocate budgets for environmental investments inbuildings by 45% compared to 2013 levels by the year 2030,

subsequent years.

Hulic undertakes climate change countermeasures to achieve our CO2
emission reduction plan targeting 2030 and the long-term environmental
vision targeting 2050.

CO2 Emissions Reduction Plan for 2030
Long-term Goal for 2030

Our Approach to Sustainability

Environmental Accounting

consumption of the Group, including all subsidiaries. (WeBy 2030, we aim to reduce CO2 emissions by 45%

Environmental Accounting Report for FY2019

Scope

November 2019.)>W e aim to reduce total CO2 emissions, in principle, from

From January 1, 2019 to December 31, 2019

FY2013.
>A long with total CO2 emissions, we will identify CO2

59 key buildings of Hulic Co., Ltd.

Calculation method
Standards forcalculation

Social Initiatives

Reporting Period

declared support for and participation in RE100 initiative inemissions from individual buildings with the aim ofCalculated based on “Environmental Accounting Guidelines 2005 (the Ministry of Environment)”

verifying the CO2 reduction effects from a single building.

Company expenditures on depreciable assets for the purpose of environmental conservation. “Cost amounts”
are portions of the Company's overall expenses and are the amounts used for the purpose of environmental
conservation. Cost amounts do not include depreciation costs.

This plan has incorporated that CO2 emission factors forelectricity are to be decreased. It is expected that theCompany could achieve the reduction target earlier or(unit: thousand yen)

Categories

Cost
Amounts

583,524

12,338(1)-1 Pollution prevention cost
Breakdown

100% renewable energy by 2025 by developing our own

Investment
Amounts(1) Business area cost0(1)-2 G lobal environmental
conservation cost

583,524(1)-3 Resource recycling cost0(2) Upstream/downstream cost0Contents of Major Activities (in FY2019)

solar power generation facilities to cover all of the power

Actions on Climate Change

0 *1Energy saving design introduced with reconstruction of
10,945 Hulic's buildings/Renovation of Hulic's buildings for energy
conservation/Maintenance for mega solar power plant projects

The 21st session of the Conference of the Parties to the

reduction plan in 2017 with the year 2030 as the target

United Nations Framework Convention on Climate Change

year. In addition to that, understanding the importance(COP21), held in December 2015 in Paris, adopted the Parisof disclosing climate-related financial information, we

1,393 Recycling documents

Agreement as a new international framework for reducing

announced our support for an information disclosure

327 Cost for recycling toner cartridges

framework recommended by the Task Force on Climate-on specific measures to address climate change were picking

related Financial Disclosures (TCFD*) in 2020 and have begun

up momentum in response with the formulation by the

discussions on business risks and opportunities caused by(3) Administration cost0(4) R&D cost

06,953 Development of energy-saving systems layered green wall

government to set a 26% reduction target on greenhouseclimate change. Going forward, we will work to enhance(5) Social activity cost

04,186 Activities to conserve secondary forests(6) Environmental remediation cost

0583,524gas emissions by 2030 from the level in 2013. As the target

disclosures in line with recommendations by the TCFD.

0

reflected a 40% reduction in commercial and other sector,   In regards to the target to reduce CO2 emissions by

50,951

we revisited our existing CO2 emissions reduction plan with

17% from the base year of 2013, we achieved the target by

the year 2020 as the target year, and established a newrecording a 24 % reduction in 2019.

*1 Pursuant to relevant laws and regulations, appropriate effluent treatment and measurement of gas emission were conducted, but costs were not calculated.

*The TCFD was established by the Financial Stability Board (FSB) and recommended a disclosure framework primarily for the investors.

Environmental Load Index

Effects of Environmental Conservation
Contents of Effects

FY20192Power consumption per unit floor area (kWh/m )FY2018Difference

Base year(FY2006)

Basic Plan to Achieve the Goal

135.1

150.3

-15.2

160.9

● P roperties for reconstruction: Reduce energy consumption

Gas consumption per unit floor area (m3 /m2)

1.0

4.0

-3.0

3.6

by an average of 25% by implementing various energy-

by developing our own solar power generation facilities to

CO2 emissions (electricity + gas) per unit floor area (kg-CO2 /m2)

59.1

63.5

-4.4

77.3

saving measures.

cover all of the power consumption of the Group, including

Water consumption per unit floor area (m3 /m2)

0.6

0.8

-0.2

1.0

● P roperties requiring maintenance /renovation properties

all subsidiaries. (Achieving RE100 and offsite ZEB)
● W e will consider adding measures and targets while

Waste generated per unit floor area (kg/m )Solar power generation amount (kWh)

9.5

8.1

1.4

7.5

to be newly purchased: Reduce energy consumption by

136,513

139,885-3,372－

an average of 5% by implementing facility renovation* Occupancy rate is not taken into account in the calculation of basic unit per floor area.

(increasing value), and the use and operational* The scope of waste generated per unit floor area includes only the Hulic Head Office Building. The base year is fiscal year 2008.

arrangement of green leasing*.

* For city gas, the CO 2 emissions coefficient of the "Manual for Calculations and Reports of GHG Emissions" issued by the Ministry of the Environment and the Ministry of
Economy, Trade and Industry is used. For electric power, an actual emissions coefficient used by the power supplier of the relevant building is used.
* The boundary of CO 2 emission intensity has been changed to the properties we owned since 2013 in order to appropriately reflect our initiatives for CO 2 emission
reduction. The CO 2 emission intensity for FY2018 was re-calculated accordingly. The base year is FY2013.

● A ll buildings: Endeavor to reduce energy consumption

with cooperation from tenants by taking measures such as
visualizing the energy consumption of each building.

● W e commit to achieve 100% renewable energy by 2025

responding to establish a disclosure framework
recommended by TCFD.

External Evaluation

2

Hulic Sustainability Book 2020

Corporate Governancegreenhouse gas emissions after 2020. In Japan, discussions

Plant/vegetation maintenance costs/Preparation of CSR Report/
27,148Ads related to Hulic's environmental efforts

Total

24

more reduction than planned as we are aiming to achieve
Environmental Initiatives

Environmental Conservation Cost

* Under green leasing, building owners collaborate with tenants and makevoluntary arrangements on reducing environmental impacts through energysaving measures for real estate and improving the work environment byspecifying in a contract or memorandum of understanding, etc., and implement
the agreements.

Hulic Sustainability Book 202025

Environmental Initiatives

Our Approach to Sustainability

Use of Renewable Energy

Adoption of Energy-saving Technologies, etc.
● B uildings: Improve building envelope performance (improve window

Commitment to Achieving RE100 Goal by 2025

specifications and enhance heat insulation capacity, etc.), introduce naturalventilation/lighting systems, and adopt greening of rooftops/walls, etc.

Hulic joined the RE100 initiative in 2019 with the aim of● H igh-efficiency devices/systems: Work to reduce the outdoor air load by

Background to Efforts

owned renewable

RE100 is an abbreviation of “Renewable Electricity 100%” and isan international initiative in which member companies aim to use
100% renewable energy of the electric energy required for theirbusiness activities. The initiative seeks to enhance the proliferationof renewable energy with the aim of reducing the greenhousegases that cause climate change such as rising temperatures andflooding, now prevalent global environmental issues. Currently,
more than 200 companies worldwide participate in RE100,
including 33 from Japan as of March 2020.

energy facilities by2025.

adopting optimization control including high-efficiency air conditioning
system, total heat exchangers, and CO 2 sensor, illumination control devices
such as LED lighting sensors and human detection sensors, and use
cogeneration/fuel cells, unused energy, and heat interchange systems, etc.

Natural Lighting System

Natural Ventilation System(Hulic Head Office Building)(Hulic Head Office Building)

Status of Greenhouse Gas Emissions
Social Initiatives

shifting to 100% renewable energy through our 100%

Energy Consumption and CO2 Emissions at Hulic's Buildings

Overview of Hulic’s Plan
to use renewable energy at a price equivalent to that2012. From 2020, we started developing photovoltaicof electricity generated by fossil fuels. Achieving theequipment that doesn’t apply the feed-in tariff (FIT)

RE100 goal of 100% renewable energy through thesystem*. We are aiming to achieve 100% renewable

development of non-FIT solar power generation, a newenergy (the goal of RE100) by 2025 by developing solar

business domain, will contribute extensively to our CO2

power generation to cover the power consumption of

reduction plan as well as ensure that we are taking a

the Group, including all subsidiaries. The electricity

step forward towards realizing a sustainable society

generated by solar equipment will be supplied to every(low-carbon and material-recycling society) in our long-building through Hulic Property Solution Co., Ltd., aterm vision for the environment.

Group company, which will act as a power producer and*T he FIT system refers to a feed-in tariff system for electricity generated

supplier (PPS). This will make us Japan’s first company

from renewable energy that went into effect in 2012. FIT electricity is

to source 100% of our own power, with this self-supply

We will actively work toward our goal of reducing CO2 emissions by 45% by 2030 relative to 2013.

Environmental Initiatives

We first started the solar power generation business in

not deemed renewable energy as a portion of the cost of the electricity
purchased by a utility company is added to the consumer’s bill so the tax

initiative ensuring we achieve the goal set out for RE100

payer must bear some of the costs. (Therefore achieving 100% goal withcompanies. Under this initiative, we expect to be able

FIT electricity is not deemed RE100 by definition.)

CO2 Emissions*1,*3,*4
Power supplierPower consumption

Hulic (Power generation company)

Hulic Property Solution (PPS)

Hulic Group(t-CO2)

Scope 2 emissions (electricity)

50,000

Scope 1 emissions (gas)1,433

40,00030,000

1,648

1,581

1,408

1,178

80.0

39,762 38,799

42,82333,848 33,647

Target: reduction of 17%
compared with 2013(kg-CO2/m2)
100.0

72.6

(Achieved in 2019)

70.4

68.0

63.5

60.0

59.1

Corporate GovernancePower generation

CO2 Emissions Intensity*3,*4,*5,*6

Initiatives for Achieving Offsite ZEB through Mega Solar Power Plant
Achieved a 24% reduction

40.0

20,000

Hulic started developing several mega solar farms that dothat operated by Hulic Property Solution Co., Ltd. ZEB is an

not apply FIT (feed-in tariff in renewable energy) in 2020.

acronym for net zero energy building, which means that the   The Company plans to realize offsite ZEB by 2025

most advanced building with low energy consumption duewith delivering renewable energy generated from theto solar power energy, realized by making improvements inmega solar farms to head office building, offices of theenergy reductions from using architectural solar shading,Group companies and our hotels and ryokans under direct

natural energy, heat insulation and high energy efficiency

Figures marked with “management by us through a retail power supplier (PPS)

programs.

*1 T he boundary is office buildings with floor area of 3,000m 2 or above and hotels managed by Hulic, and exclude buildings in which a bank branch is the sole tenant, real

10,000

20.0
51
blds

51
blds

55
blds

58
blds

59
blds

2015

2016

2017

2018

2019

(FY)

0

(77.3kg-CO2/m2 in 2013)

2015

2016

2017

2018

2019 (FY)” have been assured by an independent assurance provider.

estate for sale, and shared ownership properties.
*2 0.00997GJ/kWh and 0.00928GJ/kWh are used as the unit calorific value for day-time and night-time power, respectively, and 44.8 GJ/thousand Nm 2 is used for city gas.
*3 Since 2016, we have aggregated city gas consumption that our group companies have direct contracts with city gas companies.

External Evaluation0in 2019 compared with 2013

*4 T he unit calorific value and the CO2 emission factor for city gas are based on values from “Law Concerning the Promotion of the Measures to Cope with Global Warming”,
while the CO2 emission factors for electricity are based on the actual emission factors of electric utility companies used by the buildings in the boundary.
*5 T he boundary of CO2 emission intensity has been changed to the properties we owned since 2013 in order to appropriately reflect our initiatives for CO2 emission reduction.
The CO2 emission intensity figures from 2015 to 2018 were re-calculated accordingly.
*6 CO2 emissions intensity is calculated by dividing the sum of CO2 emissions of electricity and gas consumption by the sum of total floor area of the buildings that are in theboundary. The boundary is the buildings Hulic has owned since December 31, 2013 to the end of each fiscal year.

26

Hulic Sustainability Book 2020

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Environmental Initiatives

Introducing CO2 Reduction Technologies at the Hulic Head Office Building

The Hulic Group promotes environmentally friendly processes

emissions (Scope 1 and Scope 2), but also indirect emissions

across the entire value chain which covers from acquisition,

related to its business activities (Scope 3) to broadly

Photovoltaic power generation panels are installed on the rooftop, and rainwater is used for flush toilets. LED lighting systems

development, reconstruction, and leasing to management

understand and lower greenhouse gas emissions across theare adopted in the entire building including office rooms. Brightness is adjusted with daylight detecting sensors. To improveand maintenance of properties.

entire value chain.

heat insulation performance of exterior walls, Low-E pair glasses and wood blinds are used.

In addition, the Hulic Group calculates not only its own
Unit: t-CO2

Category

Main target for calculation
Consumables, office goods (Hulic Co., Ltd.), waterand sewerage (59 key buildings)

Fuel- and energy-related
activities (not included inscope 1 or scope 2)

Electricity use (59 key buildings)

Upstream transportationand distribution

2017

2018

2019

351.0

385.1

371.9

388.3

2,348.0

2,830.6

2,860.3

3,235.3

Shipping parcels and letters (Hulic Co., Ltd.)

30.8

32.3

31.4

36.7

Waste generated fromoperations

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

42.7

46.9

67.9

34.0

Business travel

Travel by train, bus or airplane, etc. (Hulic Co., Ltd.)

58.4

71.3

98.7

90.5

Employee commuting

Employee commuting by train or bus, etc. (Hulic Co.,
Ltd.)

40.8

45.3

44.6

42.0

2,871.7

3,431.5

3,474.8

3,826.8

Scope 3 total emissions

Social Initiatives

Purchased goods andservices2016

Our Approach to Sustainability

Introducing CO2 Reduction Technologies

Promoting Initiatives Across the Entire Value Chain

Note: W e have calculated greenhouse gas emissions, including those from the entire value chain, based on the Basic Guidelines on Accounting forEnvironmental Initiatives

Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.3 published by the Ministry of the Environment.

Green Procurement Initiatives
Hulic is working to reduce environmental impacts throughout all of our operations, and we ask our business partners,
including suppliers, to cooperate with the following green procurement policy:
1. To engage in energy-saving activities and reduce GHG emissions;
2. To reduce the amount of water consumption as much as possible;
3. To carry out a biodiversity-friendly business;
4. To fully prevent environmental pollution; andNatural Ventilation and Natural Lighting System Developed through Joint Researchwith the Massachusetts Institute of Technology (MIT)Natural Ventilation System
If the load from air conditioning can belessened by making the maximum use of

Cross-Sectional View of
Natural Ventilation

Corporate Governance

5. To make efforts to save resources and reduce the amount of waste.

natural energy to curb energy consumption,
CO2 emissions can be reduced significantly.
To introduce a natural ventilation system,
joint research with MIT was conducted, inwhich the flow of air and other factors wereRooftop solar chimney(Hulic Shinjuku Building)External Evaluation

meticulously simulated. The natural ventilation
used in the Hulic Head Office Building is not
simply an auxiliary system for mechanicalair conditioning. It was actually used tosuccessfully cool the entire building duringseasonal intervals. A silencer chamber is also
used for the intake opening, which worked torealize the use of a natural ventilation system
in a dense urban area with high-level noise.

28

Hulic Sustainability Book 2020

Hulic Sustainability Book 202029

Environmental Initiatives

Image of natural lighting

Photovoltaic panels (patent awarded)

Our natural lighting system uses

The special feature of Hulic’s photovoltaic panels co-【Summary of patent】

specially shaped natural lighting

The sun’s height and position change

developed with Taiyo Kogyo Corporation and Gifu Plastic

Name of invention: Photovoltaic generation system andanidolic louvers co-developed withdepending on the time and season

Industry Co., Ltd. is that they are lightweight, freely

assembly method

MIT to capture constantly changing

designable, and easy to install. We realized a lightweight

Registration No.: 6018856

sunlight on the ceiling of rooms during

photovoltaic panel with high strength by using aluminum

Registration date: October 7, 2016changing seasons and times (elevation

board and plastic-based honeycomb-panel material. Its

and orientation) without the use ofweight is about half that of a conventional solar panel. The
panel can be freely designed through customization andpower. Highly reflective metal panels
Natural lighting

are used for interior ceilings, which

can be made in various shapes. Equipped with a sliding

louver unit

supply a consistent amount of pleasantnatural light to the top of office desks.

Our Approach to Sustainability

Natural Lighting Systemmechanism using a special metal fitting, it can be relatively
easily installed. Thus, it can be installed even in a building

Wooden blinds

with strict loading conditions such as in repairing works.

Outdoors

Hulic Head Office Building as well as at
Photovoltaic panels (patent awarded)

the Hulic Shinjuku Building and otherbuildings.

Cross section of natural lighting system

Commercialization of thin-layer wall greening system (patent awarded)
As a part of environmental business, Hulic jointly has

Effects of CO2 Reduction

Social Initiatives

This system has been installed at thedeveloped with TOHO LEO CO., Ltd. and Daito Techno Green＜Calculations at the Hulic Head Office Building＞

CO., Ltd. a wall greening system (thin-layer wall greening

CO2 can be effectively reduced by introducing such top-level environmental technologies. In CASBEE (Comprehensive

system) that can be easily installed in existing buildings. We

Assessment System for Built Environment Efficiency), BEE scored 3.3, corresponding to rank S.

completed development of the product and obtained a joint
Environmental Initiatives

patent for it with three companies.
2

PAL(*)= 2
 25 MJ/year m … Standard value of office buildings
minus 25%

【Summary of patent】
Name of invention: Greening device and its method

ERR(*)= 3
 5% … The highest class in the energy-saving
performance standard of Tokyo metropolitan government
CO2 emissions reduction= 40% reduction compared to

Registration No.: 6460942
Registration date: January 11, 2019an average office building in the Tokyo Metropolitan
Government's energy efficiency performance standards.

Commercialization of thin-layer wall greening system=C O2 emissions throughout the building's entire life cycle
were reduced by 30%

Initiatives for Energy Conservation* PAL= An assessment indicator for the energy efficiency of building plans* ERR = Shows the percentage by which primary energy consumption has

Corporate Governanceand envelope (exterior walls and roof, etc.)

Introduction of LED Lighting and Illumination Control Devices

been reduced in facilities and systems

Hulic has realized a significant level of
reduction in CO2 emissions by introducing

Commercialization of environmental technologies

lighting systems with high energy-saving
performance such as LED lighting andNatural lighting system (patent awarded)
The natural lighting system was developed as a result of a

【Summary of patent】

three-year research /development project that Hulic engaged

Name of invention: Lighting louver unit

in with the Massachusetts Institute of Technology. With a

Registration No.: 6021103

specially designed natural lighting louver(anidolic louvers),

Registration date: October 14, 2016

illumination control devices including
sensors to detect people and daylight.

External Evaluation

it can take in a certain amount of sunlight to the ceilingsurface of a room without using electricity in accordancewith different seasons and times of day. The greatest
features of this system are that it realizes a comfortablelevel of illuminance with natural light, which was previously
unattainable, and also that it has a simple, maintenance-freestructure even though it comes with a fixed type.

30

Hulic Sustainability Book 2020

Hulic Sustainability Book 202031

Environmental Initiatives

Initiatives for Utilizing Renewable Energy

Use of LED lighting, which is brighter than incandescentbulbs, but also reduce waste and effectively use resources.

lamps and fluorescents and uses less electricity, helps to

In princple, all Hulic’s development projects use LED lighting.

The Hulic Group promotes the environment-related business as one aspect of our 3K businesses (Koreisha (seniors), Kanko

significantly reduce power consumption and CO2 emissions.

We are also sequentially switching over to high-efficiency(tourism), and Kankyo (environment)), and has set the target for the number of capital investments on renewable energy at

Furthermore, as LED lighting is long lasting, it is possible tolighting and LED lighting at our existing buildings as part ofthree investments or more in each year. Results in FY2019 was four.

not only save the trouble of maintenance such as changing

energy efficiency renovation work.

Photovoltaic Generation System
We have been making every effort to reduce CO2 emissions
through photovoltaic power generation by installing aphotovoltaic cell module on the rooftop of buildings. AmongSpace with LED lighting system (Hulic Ginza Sukiyabashi Building)

Building (generate upwards 10kW), Hospitalment Bunkyo
Yayoi (ditto 3.36kW),

Introducing low energy consumption, CO2 emissions-reducing facilities to Nursing Homes

Trust Garden Ogikubo(ditto 5.3kW), Charm

We have been actively installing low energy consumption

Inamuragasaki Kamakura Aoitei with a skylight. Furthermore,

Premier Yamatecho

and CO2 emissions-reducing facilities to our nursing homes.

all of our nursing homes completed in 2019 adopted LED(ditto 3.12kW) are

Many of our nursing homes including Trust Garden Ogikubo,

light bulbs for energy-saving purposes. Other facilities weequipped with

Charm Premier Yamatecho and Hospitalment Bunkyo Yayoi

are keen on installing include natural ventilation system,

photovoltaic panels.

are equipped with photovoltaic panels on their rooftops topanel heating and cooling system, highly efficient waterprovide electric power to the common areas. The natural

heater, to name a few.

Phtovoltaic panels installed on the roof top of

A list of key properties which generated larger
amount of power (FY2019 actual results)
Hulic Head Office Building

11,008kWh／p.a.

Hulic Residence Nishi Oi

28,758kWh／p.a.

Hulic Shimurasakaue Building

11,650kWh／p.a.

Hulic Osaka Building

9,438kWh／p.a.

Sunny Life Funabashi

8,162kWh／p.a.

Hulic Kojimachi Building

6,412kWh／p.a.

Hulic Yachioji Building

6,008kWh／p.a.

Hulic Fuchu Building

5,765kWh／p.a.

Hulic Residence Shinjuku Toyama

4,913kWh／p.a.

Hulic Asakusabashi Building

4,899kWh／p.a.

Social Initiatives

the completed buildings in 2019, Shibuya PARCO/ Hulic

Our Approach to Sustainability

Effective Use of Renewable Energy

Introduction of LED Lighting

Trust Garden Ogikubo

Environmental Initiatives

lighting system is installed on the top floor of Granda

Installation of Solar Heat Panels
Hulic's hotels, multi-unit apartments and buildings that
require large amounts of hot water adopt a solar water
heating system, which uses solar panels to collect the sun's
heat. Hot water created using this system is supplied toresidential units, dormitories and kitchens, among otherfacilities inside a building.
At HULIC SQUARE TOKYO, the solar heat collection panels

Atrium which installed natural ventilation system

Photovoltaic panels on the rooftop(Hospitalment Musashino)(Granda Inamuragasaki Kamakura Aoitei)

Corporate Governanceare located on the rooftop as a supplemental heating sourcefor hot water system of THE GATE HOTEL TOKYO by HULIC
and has been contributing in decreasing CO2 emissions.

Use of Systems that Make it Easier for Tenants to Conserve Energy

Solar heat collection panels (HULIC SQUARE TOKYO)

The Hulic Group has begun rolling out a visualization
system that freely controls air conditioning use in order to

Installation of Photovoltaic Panels on an Exterior Wallprovide a better understanding of a building's use of energy.
This system enables tenants to set the optimal working

The Hulic Ogikubo Building is open to a major arterial roadenvironment temperature for their business and makes it

on its south side, providing ideal conditions for sunlighteasier to implement energy conservation measures.

exposure. Capitalizing on this, we used a unique and ex
External Evaluation

tremely thin photovoltaic panel that is sandwiched between
glass panes to create a building material for the facade (frontof the building). The panels form part of a 3.5 kW systemcapable of generating upwards of 3,500 kWh of electricity
annually.
Visualization system (Hulic Asakusabashi Building)

The exterior wall with photovoltaic panels (Hulic Ogikubo Building)32

Hulic Sustainability Book 2020

Hulic Sustainability Book 202033

Environmental Initiatives

Hulic Residence Soka installed a hybrid power generator. This

This project includes 20 years of maintenance costs and Hulic

power generator also uses wind power (wind speed to startGroup company Hulic Building Management will, in addition

generating power = 1.2m /sec) and solar power. Supplying

to receiving income from electricity sales, gain knowledge

electricity to street lights, which illuminate the street along

and know-how in the ancillary maintenance business, which

the east side of the river during the night, the generated

it will then make inroads in and expand as a new businesspower contributes to the surrounding area.

segment.

Our Approach to Sustainability

Effect 2: E lectricity Sales Income and Accumulating
Know-hows on Mainenance Business

Wind-power Generation System

Hybrid street lights

Mega Solar Power Projects
With environmental issues becoming more serious, inthe initiative to Ogoyama Town in Kasama City, Ibaraki

Effect 3: Contribution to Great East Japan Earthquake recovery efforts through the operation of thesolar business in Fukushima Prefecture

November 2014, Hulic decided to invest and become involved

Prefecture in 2015, and to Yokoshibahikari Town in Sanbu

Owning and operating a power plant in Fukushima Prefecture

local rebuilding efforts. The development work for thisin a mega solar power plant project which adopts the FIT

District, Chiba Prefecture in 2016. By leveraging the know-

after the Great East Japan Earthquake has effectively utilized

power plant has been entrusted to local engineering andsystem located in Hirono Town, Futaba District, Fukushimahows we acquired through operating these projects, we havethe land and contributed to the local economy, while theconstruction companies. Local individuals were hired toPrefecture, in order to address society's needs to strengthen

started to develop a series of non-FIT photovoltaic power

construction work and maintenance operations farmed out

operate the power plant, which will promote a revitalized

our efforts toward environmental management. We expanded

generation plants which we deemed feasible from 2020.

to local businesses, created employment opportunities.

local economy over a sustained and prolonged period.

Social Initiatives[Illustration of electricity sales business]

In turn, this has served as a proactive contribution to theEnvironmental Initiatives

Hirono Town Solar Power Plant

Ogoyama Town Solar Power Plant

Effects of Mega Solar Power Project
Electricity generated by the non-FIT photovoltaic power generation plants which we have started to develop from 2020 will

Effective Use of Unused Energies

be sold through a Power Producer and Supplier (PPS) for use by the Hulic Head Office Building, which assists its efforts to

Unused energies are generic term of energies that have not

and factories, and difference in temperature between

become a net ZEB.

been used in the past despite the fact that they could beoutside air and river water, ground water, or sewage water.

used effectively which include heat disposed from buildings

Corporate Governance

Effect 1: Initiative for achieving Hulic-version of offsite ZEB through the use of renewable energy

Effective Use of Unused Energies

Case Study

Use of exhaust heat of hot springs at FUFU Kawaguchikotechnologies such as natural lighting and natural ventilation systems, it has been able to reduce the amount of energy
consumption by about 40% compared to the amount of energy consumption in other general buildings. The remaining 60% is
sourced from renewable energy and in this way, the Hulic-version of offsite ZEB will be achieved.

34

Hulic Sustainability Book 2020

External Evaluation

The Hulic Head Office Building is a building with high energysaving performance which has been introduced energy saving

At FUFU Kawaguchiko, our ryokan (a Japanese style luxury inn), theexhaust heat of flowing hot spring water which had been disposed in thepast is collected by highly efficient heat pump and introduced as a hot
spring exhaust heat utilization system which is used as a supplemental
heating source for the water heater of ryokan. The effect of introducing
this system resulted in an approximately 30% decline in water heatingenergy consumption. The system received subsidy from the Ministryof Economy, Trade and Industry as the FY2017 and FY2018 subsidy on
business that promote local production for local consumption by making
use of local features.

Exterior of FUFU Kawaguchiko

Hulic Sustainability Book 202035

Environmental Initiatives

Building a Material-recycling Society
Our Business Initiatives- Longer Life Buildings

We formulated our Long-term Vision for the Environment which states

Fundamental
ApproachStandardization of 100 Year Buildingsthat we execute environmentally friendly management to realize an ideal

The Company formulated the Hulic Guidelines for Longer Life

society of low-carbon and material-recycling society in 2050. We are actively

Building (the Guidelines) in 2011 to standardize specifications

conventionally reconstructed every 40 years (standard plans).

working to reduce waste disposal and water consumption in cooperation

for development projects. The Guidelines are composed

Based on this evaluation, we have introduced longer lifeof three ideas, 1) high earthquake resistance and highdesigns as standard specifications in all rebuilds completed or

durability; 2) smoother updating and renewal; and 3) highunder development since formulating the Guidelines in 2011.

with our customers (tenants) and business partners for realization ofrecycling society.

cycle CO2 by 6% compared to the cases where buildings are

Our Approach to Sustainability

Realization of a Material-recycling Society

serviceability. We use only high-grade building frames that

When developing buildings, we endeavor to reduce environmental impacts

ensure the buildings are durable and used safely for overby promoting the 3R (reduce, reuse, and recycle) through the adoption of

100 years as well as make it possible to modify layout orLonger Life Building designs that enable to reduce waste significantly andSocial Initiatives

use resources effectively.

change of intended use to fit with diversifying work styles
in the future and reform building exteriors. Furthermore,
longer life buildings reduce waste generation and resources【Results in FY2019】 H ulic's Longer Life Buildings completed based on the standards established in the“Hulic Guideline for Longer Life Service”: 5 buildings

used for reconstruction by 50% or more, and reduce life

Environmental Advantages of Longer Life BuildingsRoad Map for Realization of Vision

2050
2030

Environmental Initiatives

Hulic's vision of an ideal society
Realization of a sustainable society

CO 2 emission reduction plan*1

2018
Setting reduction goals forenvironmental index andassessment of the progress
Formulation of goals for reducing CO 2
emissions, waste and water consumption
Progress management toward goals

Aiming for a 45% reduction, with
2013 as the base year
• Identify the amount of CO emissions
2of and verify the effects of reduction
measures applied to buildings•

Low-Carbon Society&
Material-Recycling Society

1 High earthquake-resistance and high durability
Application of energy-savings andrenewable energy technologies
Continual development of new technologies
and introduction to owned buildings

Application of Guidelines forLonger Life Buildings toreconstruction projects

Harmonization of business activities and environmental initiatives
Advancement of ZEB projects

Hulic Sustainability Book 2020

Structural frames shall be strong and solid so they can be safely used over 100 years.
● E nsure the grade of quake resistance 1.25 times greater than legally required● T horoughly control the quality of works by designating details of design conditions for concrete and construction materials

2 Smoother updating and renewal
We adopt a design capable of responding flexibly to future needs, and establish plans of updating and renewal without theneed to make tenants move out.
● F lexibly respond to future changes in use purposes and layout, with spare ceiling height room and floor loading capacity, as
well as a flexible partition wall and a system ceiling.
● E nsure the space to install spare pipes and equipment, etc. so as to continue business even during the period of works for
updating and renewal.
● E specially in commercial buildings, adopt the interchangeable facade system capable to meet the needs of the time, in order
to avoid the building exterior to become obsolete.

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

Hulic Sustainability Book 2020

External Evaluation*1 T here is a growing social movement for CO2 emission reduction in response to adoption of the Paris Agreement at COP21 (The 21st Session of the Conference of theParties to the United Nations (UN) Framework Convention on Climate Change) held in December 2015. Corresponding to that requirement, the Company revisitedthe existing CO2 emission reduction plan, and has set a new reduction target by 2030.
*2 T his plan is based on the assumption that CO2 emission factors for electricity are to be decreased. It is expected that the Company could achieve the reduction target
earlier or more reduction than planned as we supply 100% renewable energy created at our 100% owned renewable facilities by 2025 to the buildings occupied by
the Group companies. (The Company declared support for and participation in RE100 initiative in November 2019, see P26 for more details)

36

Hulic Guidelines for Longer Life Building

Corporate GovernanceIntroduction of environmental
technologies to buildings
owned

Reduce CO 2 emissions by
45%*2 by 2030

37

Environmental Initiatives

We have been developing fire-resistant wooden buildings

trees that are ready to be cut for timber have a reduced

Responding to future changes in purpose of use and layout

using timber that requires less energy for manufacturing andability to absorb CO2, so while we cut down trees as building

From a viewpoint of a long-term use for 100 years, it canprocessing since 2018 in response to the Forestry Agency’s

materials, we also plant new trees to replace them. Thatbe expected that the use of building will largely change, forpromotion of expanded use of wood in a series initiatives tomeans we continuously maintain a supply of young trees

example, from an office building to a store or from a store to

reduce overall CO2 emissions.

that absorb CO2 well. This initiative for fire-resistant woodena restaurant. By providing spare ceiling height room and floor   Trees absorb CO2 in the air and provide a carbon dioxidebuildings helps promote forest circulation, which in turnloading capacity in advance, it is possible to respond easily

fixing solution as they grow, so an abundance of trees in theleads to a reduction in CO2.

to future changes in use purposes and layout, as well as fornation’s land can help cut down CO2 levels. Furthermore,

Our Approach to Sustainability

Our Business Initiatives- Fire-resistant Wooden Buildings

POINT1

renewal.
2.8m or higher

Loading capacity:

500kg/m2 in general, 800kg/m2～1t/m2 in heavy
duty zone

System ceiling:

Responding to needs for smoother updating offacilities in the ceiling, ease of maintenance, andchangeability of partitions between tenants.

Social Initiatives

Ceiling height:

POINT2
Replaceable facade systems
Especially for commercial buildings, the exterior appearance is important. This is because a stylish appearance at theEnvironmental Initiatives

forefront of the age would attract customers. Therefore, we have adopted a system in which the facade (front exteriorof building) can be separated from the main structure to update
the exterior design without any legal restraints. Hulic Ginza
Sukiyabashi Building located in Ginza, a major commercial area
in Japan, has adopted the characteristic facade design expressing
the scenery of a waterfront with willow trees. The two-tierfacade with casted aluminum in curved shape installed on the
curtain wall is separate from the main body of the building.

Basic Policy for Promoting Wooden Buildings

As for office buildings, we intend to adopt a simple and calm
design with an exterior appearance that can become harmonious
with the surrounding landscape as time passes.

Joined the Wood Change Network
We have joined the Wood Change Network, a networking gathering sponsored by the Forestry Agency which aims topromote the use of timber in the private sector buildings.

To UseGinza 8-chome Development Plan
We are developing Japan’s first 12-story wooden fire-resistant commercial building (hybrid construction combining
wooden and steel structures) in Ginza.

To Plant

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

Corporate GovernanceTo Spread

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

External Evaluation

38

Hulic Sustainability Book 2020

Hulic Sustainability Book 202039

Environmental Initiatives

We are developing Japan’s first 12-story wooden fire-resistant commercial building (hybrid construction combining wooden
and steel structures) in Ginza, one of our focus areas, which is scheduled for completion in December 2021.

Panel Discussions
Kengo KUMA
(Architect・Professor at The University of Tokyo)

Shuzo SUMI
(Senior Executive Advisor, Tokio Marine &Nichido Fire Insurance Co., Ltd.)Special Features

Tadao KAMEINew technologies
・ Japan’s first 12-story wooden fire-resistant commercial building. The first case of leasing buildings higher than 11-story. (As of
2019)(President and CEO, Nikken Sekkei Ltd.)

Masahiro MIYASHITA(Chairman of the Board, Takenaka Corporation)・ Timber is used in exterior material in addition to interior.
Increase the amount of timber used that contributes to circulation of forests.

Atsuko FUKUSHIMA(Journalist)

BCP responses
・ Installed supplemental elevated water tank and sewage tank so that both drinking water and flush water for lavatories are readyfor 72 hours in emergency.
・ Installed emergency generator that lasts for 72 hours.
・ Considering the site is in Giza area, we plan to locate high tide response devices on upper floors and make it possible to countertide up to 1 meter high by setting vertical damp proof barrier.

Example of spread ② : Joined the Wood Change Network
The Wood Change Network (the Network) is a networking

Social Initiatives

Environment-friendly

Aiming to increase demand for timber in urban areas● Increase in middle-to-high-story wooden buildings will promote community vitalization● Wooden buildings will improve global and human environmental issues● Wooden construction is the area that Japan can make the world to seek
K. KUMA:
after.
● Effective use of Japan’s ample forestry resources will be the key to regional
S. Sumi:revitalization.
● Optimization of timber is the key in planning of high-story wooden
T. Kamei:buildings.
M. Miyashita: ● Technological innovation of wood engineering will support high-story
wooden construction.
A. Fukushima: ● Wood is the ideal future material of sustainable society.

Our Approach to Sustainability

Example of use: Ginza 8-chome Development Plan (fire-resistant commercial building)gathering sponsored by the Forestry Agency which aims topromote the use of timber in the private sector buildings.
The Network discusses and considers matters related tospreading timber use including identification of issues,
Environmental Initiatives

direction of solutions and popularization, and aims to create
an environment that timber is more easily used as well as tocreate a platform of spreading the use of timber movement
throughout Japan. We have joined the Network with anintent to continuously promote the use of timber.

Our Group-wide Initiatives
We are proactively working to reduce waste and water consumption in

We held the Wooden Architecture Symposium 2019 with

understanding on possibilities and challenges of wooden

the aim of raising awareness on the possibilities of woodenbuildings through listening to the key note speech and panelbuildings, helping to reduce CO2 emissions and protecting

discussions.

forests. More than 800 participated the event and deepened

cooperation with tenants and building management companies toward
Fundamental
Approachrealization of recycling society.
For developing buildings, we endeavor to reduce environmental impacts
by promoting the 3R (reduce, reuse, and recycle) through the adoption ofLonger Life Building designs that enable to reduce waste significantly anduse resources effectively.

Corporate Governance

Example of spread ① : Organized Wooden Architecture Symposium 2019

Key Note Speech
Kengo KUMA
(Architect・Professor at The
University of Tokyo)

Hulic Sustainability Book 2020

Resource-saving and Reduction of Waste in Buildings Owned by Hulic andReconstruction of Buildings
Hulic Group has worked on reduction in the amount of waste

reuse water and various water conservation systems in many

disposal and water consumption in cooperation with tenantsof our buildings. Water saving toilets and wash basins areand building management companies. We install toilets thatstandardized.

Hulic Sustainability Book 2020

External Evaluation

40

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

41

Environmental Initiatives

Efforts to Reuse

We are constantly making efforts at buildings which our group company head offices occupy including hotels to reduce waste

Recycling parts of underground building frames during reconstructionin order for building a material-recycling society.

In reconstruction works, we make various efforts for

Our Approach to Sustainability

Amount of Waste Disposal at Hulic's Buildings● Hulic Ginza Sukiyabashi Building

reducing wastes generated in demolition works including
concrete debris. For example, underground building● Hulic Head Office Building

frames of existing buildings are used as retaining walls for● Ochanomizu Sola City

the new building with new underground building frames● Hulic Shinjuku Building

installed inside. We make sure that adequate inspections are
conducted to confirm the strength when building frames ofexisting buildings are recycled.

WEB   After considering impacts on neighboring areas of

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

property, we introduced the PC method (described later) into

* Figures marked withhave been assured by an independent assurance provider.

* The boundary is the buildings occupied by the head offices of Hulic and its Group companies. The number of properties in the boundary were: 2015 and 2016; 7, 2017; 8, 2018; 9,
and 2019; 7. The results increased from FY2018 as Porte Kanazawa, a large commercial building, has become subject to aggregation since.

Book donation program
We launched the book donation program, which started

Volunteer Association, which provides educational andbased on suggestions from employees. In this program, we

cultural support to children in Asia. This activity contributes

donate the proceeds from selling used books collected fromto reducing waste and helps to address the poverty issue.

Social Initiatives

the following projects:

group employees to the external used book dealer to Shanti

Efforts to Recycle
As recycling efforts through daily business activities, we started to recycle used paper and printer toner cartridges. We will

* Figures are for reconstructed buildings completed in each year and for which data were collected. There were no buildings subject to collect data (no reconstructed buildings werecompleted) in FY2019.

Trends in the amount of recycled paper（*）
cal year

FY2015

Recycled amount

Promotion of the 3R(Unit: kg)

FY20168,180

FY20179,400

FY201811,365FY201913,125

14,540* The scope is Hulic Head Office Building.

Environmental Initiatives

continue to work on those efforts to support achieving a recycling society.

Efforts to Reduce
Reduction of disposals from restaurants in our own brand hotels
We have materialized environmental advantages by making

brand) are reducing the amount of garbage from theirefforts to curb the amount of waste disposal and CO2

restaurants by biologically processing raw garbage.

longer life designs which can be in service for 100 years or
longer as standard specifications(*) with an eye to saving

WEB

Longer Life Buildings
https://www.hulic.co.jp/en/sustainability/ecology/waste/initiatives/
long_life.html

The Company considers that the minimization of

construction methods that reduce pollutant discharge asenvironmental pollution due to business activities ismuch as possible.

indispensable to realize a recycling society. Thus, we have   In addition, we have collected data of SOx, NOx, VOC

worked on the reduction of emission of pollutants, including

and toxic waste generated from reconstruction activities

resources. At hotels we own and manage (The Gate Hotel

CFCs and PCBs with the cooperation of design companies

in the past and identified the amount of those substances* When building with longer life designs, the amounts of waste generated and resources used in reconstruction works can be reduced 50% or more, compared to the conventionaland construction companies, as well as endeavoring to adopt

generated.

case of reconstruction every 40 years (standard plans). Based on this evaluation, we have introduced longer life designs as standard specifications in all developments completed orunder construction since 2011.

Amount of emission of SOx, NOx and VOC in the past three years

Reduction of plastic waste at head office building
In consideration of the seriousness of marine pollution

plastic beverage containers, straws, spoons and shopping

caused by disposable plastic waste, the in-house canteen atbags. We are also actively encouraging employees to bring

the Hulic head office building has stopped use of disposable

their own cups.

FY2016FY2017FY2018FY2019SOx emissions (kg)

62

42

0.05

-

NOx emissions (kg)

418

281

-

-

VOC emissions (kg)

-

51

151

External Evaluation* Figures are for reconstructed buildings completed in each year and for which data were collected.
There were no buildings subject to collect data (no reconstructed buildings were completed) in FY2019.

42

Hulic Sustainability Book 2020

Corporate Governanceemissions during development, for example, by adopting

Prevention of Pollution

Hulic Sustainability Book 202043

Environmental Initiatives

Initiatives for Biodiversity
Fundamental

Initiatives to Reduce Water Consumption

Approach

Almost all water consumed in the Group are from the   In addition, we are gradually upgrading the toilets inbuildings owned or the buildings that we have offices,

the buildings we own to ensure better plumbing while also

and the water flow starts from tap water and discharge itchanging to water-saving flush toilets and hand washers. The

into sewers. To reduce the amount of water consumption

Company is also working to ensure the effective use of waterin buildings owned by the Company, we have taken the

resources by using rainwater to water the greenery and flush

initiative of introducing water-saving devices on water taps

toilets for certain buildings. Note that Hulic does not operateinstalled in the plumbing of existing buildings (saves waterbusiness activities in high water stress area where demand

by approximately 40% per tap) to preserve water resource.

for water is tight.

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

【Results in FY2019】Number of greening properties: 3 (Coverage: all Hulic's properties)* The figure marked withhas been assured by an independent assurance provider.

Our Approach to Sustainability

Initiatives for Water

Biodiversity Guideline
Hulic recognizes the importance of biodiversity's impact
for the living environment, and in order to contribute toSocial Initiatives

biodiversity, we have created the Declaration of Biodiversity
Conservation (Hulic's Biodiversity Guidelines) which has been
well communicated within our Group.
   Furthermore, we have been considerate of andcautiously executing our businesses that our businessshould not create any negative impacts on biodiversity andendangered species.

Approaches to JHEP Certification* The figure marked withhas been assured by an independent assurance provider.

* T he boundary is office buildings with floor area of 3,000m 2 or above and hotels managed by Hulic, and exclude buildings in which a bank branch is the sole tenant,realestate for sale, and shared ownership properties. The

number of properties in the boundary were: 2015 and 2016; 51, 2017; 55, 2018; 58 and 2019; 59.

Environmental Initiatives

We are also working to ensure that we consider ways toRain water reutilization equipment at Hulic Setagaya

Major certified properties

conserve and restore local vegetation during reconstructionof properties from the standpoint of preserving biodiversity.
We adopted the JHEP certification system issued by
Ecosystem Conservation Society-Japan to quantitatively
evaluate and promote biodiversity conservation initiatives.
In 2019, Hospitalment Bunkyo Yayoi, a newly completed

Construction
Adoption of the PC Methodbuilding received “A” rank certification, with the number ofEffect of the PC Method

properties certified totaling 14 as of December 31, 2019.

From the standpoint of a business owner, weCorporate Governanceproactively adopt the PC method (*), which cansignificantly reduce the amount of waste generated
during construction. This method, which can shorten
a construction period and minimize impacts on
surrounding environments during construction, ishighly rated in terms of longer life service of buildings.
* P C (Precast Concrete) method: Precast panels produced at a plant

Hospitalment Bunkyo Yayoi: exterior and garden

under consistent quality control are carried to a worksite andassembled.

Greening Initiatives

Hulic Sustainability Book 2020

lush green urban spaces and to harmonize with natureease the heat-island phenomenon as a part of our measureswhile considering biodiversity. In addition, we have jointly

against global warming. Proactively planting trees anddeveloped with other companies and commercialized thin-plants on premises, we provide places where people living

layered wall greening system that can be easily introduced toin the town can relax. Our greening projects aim to create

the existing buildings.

Hulic Sustainability Book 2020

External Evaluation

44

We have put emphasis on greening which can effectively

45

Environmental Initiatives

At the Hulic Shinjuku Building, we have set up green walls along the west side of the property facing MOA 3rd street. We are

Our greening projects aim to create lush green urban spaces

thereby reducing air conditioning loads on the top floor.

taking care to create a green atmosphere despite being in the heart of the city, in an attempt to calm the minds of the people

as well as to harmonize with nature with much consideration

Covering the exterior walls of a building with plants servesin the local area.

to biodiversity. When greening surrounds, we primarily selectas a countermeasure against the heat island effect as well as

plants that are easy to care and resistant to strong winds

comforting for passersby. Hulic has jointly developed withso as to improve the scenery and appropriate for location.

other companies a thin-layered wall greening system that is

Roof greening makes it possible to save energy in buildings

easy to introduce to existing buildings.

Our Approach to Sustainability

Initiatives at Hulic Shinjuku Building (Completed in October 2014)

Promotion of Greening of Surrounds, Rooftops and Wallsby blocking sunlight and preventing heat accumulation,

Initiatives at Shinagawa Season Terrace (Joint Project)
Shinagawa Season Terrace is a joint project involving Hulic,Green Evaluation System(SEGES) as a development

Corporation, and Tokyo City Development Co., Ltd. The creation

project that contributes

of extensive green space spreading to the approximately 3.5

to society and thehectare site for generating communication and an active

environment throughcommunity has earned a great deal of praise. It received

greenery conservation andcertification in FY2014 from the Organization for Landscapecreation (SEGES urban

and Urban Green Infrastructure's Social and Environmental

development).

Social Initiatives

NTT Urban Development Corporation, Taisei Construction

Wall greening

Shinagawa Season Terace

HULIC Residence Shin-Ochanomizu (Completed in December 2018)
Environmental Initiatives

Located about one-minute by foot from Shin-Ochanomizu
Station on the Tokyo Metro Chiyoda Line, this property is anurban residential complex that offers great convenience.
Facing Hongo-dori, the property is an expression of theeverchanging Surugadai of the future featuring a sharp,
futuristic exterior design. At the same time, the textured
materials, including green walls and natural stone, provide agentle welcome to tenants.
   We also constructed a rooftop greening terrace where

Rooftop greening terrace at HULIC Residence

tenants can enjoy seasonal plants and form a community.

Shin-Ochanomizu

working in Tokyo.

kinds of plants including Canarian ivy and evergold are used   Various trees such as European privet, Japanese

to cover the wall surface, surrounding terrace benches forboxwood, agapanthus, fuiriyaburan, and gazania have been

approximately 20 people, and provide a transpiration effectplanted on the rooftop of the expanded building of the Hulic

to ease the heat-island effect. With this green wall overHead Office. In addition, we have placed wooden decks and2

approximately 106m , the rooftop garden is a space where

Corporate GovernanceInitiatives at the Hulic Head Office Building
On the rooftop garden of Hulic Head Office Building, sevengrown a lawn on the surface.

employees can relax and rest, and feeling nature while

External Evaluation

Rooftop garden

46

Hulic Sustainability Book 2020

Wall greening

Rooftop greening

Hulic Sustainability Book 202047

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

Continuous Provision of a Safe, Secure, and Comfortable Work Environment
Systematic implementation of preventive maintenance of buildings and facilities

Initiatives for Customers

We systematically renovate and upgrade buildings anda safe, secure, andfacilities every year, including statutory improvements toconfortable work

builidings and facilities, proactive renovations to ensure

environment for tenants.

energy-saving /up-to-date facilities, and implementing
extensive preventative maintenance work before defects

We are constantly working to generate new added value by offering properties that
Fundamental
Approach

Our Approach to Sustainability

SocialInitiatives

Management status reporting
meeting with property

occur in buildings and facilities, with the aim of providing

management companies

are superior in terms of safety, environmental performance, and convenience.
In addition, we have established various emergency and disaster scenarios, forwhich we have created measures to improve the structural performance of our【Results in FY2019】C ustomer satisfaction: 98.1 %Percentage of new buildings meeting the new earthquake resistance standards: 100 %Efforts toward the Improvement of Customer Satisfaction

Hulic has introduced a system that uses the Internet toof any damage. We also have contingency agreements

confirm safety and other conditions in the event of awith construction companies so as to verify damage to any

disaster, coordinating information flow with the real estatebuildings we own in a timely manner and facilitate swift

management companies to quickly determine the extent

recovery.

Customer Satisfaction Survey
We conduct a customer satisfaction survey once a year

2018, 93.7%). We believe

to ensure tenants of Hulic's properties are able to use

these results mainly reflect

and visitors to the buildings, we thoroughly stick to meticulous

the buildings comfortably. Survey items include matters

our scheduled maintenancethe infrastructure for customer's social activities, we are aiming toquality control, careful maintenance, and security to protect assets.

concerning building hardware and software, and things(equipment and facilities) andconstantly improve their quality under the philosophy of providing

Depending on the application and scale, Hulic buildings arecustomers have noticed while using our buildings on aour quick responses to requests

customers safety, peace of mind and convenience.

constructed with barrier-free designs to provide safety, peace ofdaily basis. We check the responses of customers, and thenby customers. Furthermore, theIn order to satisfy all customers using buildings including tenants

mind and convenience for everyone.

take steps to identify latent customer needs and makepeople in charge responded or

improvements accordingly.

replied to customers' requests   In the survey conducted in 2019, we continued toand opinions after the survey.

TOPICS
HULIC SQUARE TOKYO received Good Design Award for FY2019(Issued by Japan Institute of Design Promotion)
HULIC SQUARE TOKYO was completed in 2018 as our flagshipbuilding in Ginza, one of our focus areas. Currently, the firstfloor underground to the third floor above ground are occupied
by five tenants operating commercial facilities. Floors four to 13
are used by THE GATE HOTEL TOKYO by HULIC, our proprietarybrand hotel. The building was recognized for it sexceptionallyeffective architectural design
based on an understanding of thecharacteristics of the surrounding
environment, which culminated in
the Good Design Award for FY2019.

receive high ratings, with a satisfaction level of 98.1% (inThorough Implementation of an Earthquake Resistance Diagnosis andSeismic Reinforcement
Hulic considers the countermeasures for earthquake are one

frequently occur. We believe it is our responsibility toprovideof the top priorities for a real estate business operator inearthquake-resistant building safety in order for the tenants

Japan as it is one of the countries where earthquakes mostto conduct social activities with peace of mind.

Earthquake Resistance Diagnosis, Reinforcement Works, and Confirmation of Validity ofStructural Calculation
We diagnosed the earthquake resistance of all our   In relation to the office buildings which were determined

Holding regular management status reporting meetings with property management companies

properties* that were built before the new earthquake

to require reconfirmation*2 although constructed after the

Hulic regularly holds property management status reporting

results of measures to fix defects that have occurred inresistance standards were established in the Building

new earthquake resistance standards, we also rechecked

meetings with property management companies to checkbuildings. In this way, we are promoting the maintenanceStandards Act revised in 1981, and all buildings that did nottheir structural calculations to confirm the validity of their

the implementation status of management work, including

and improvement of quality, as well as unifying the quality

meet the standards were seismically reinforced.

structural design.

complying with laws and regulations, and receive reportsof overall property management and operation services.

*1 Excludes buildings with box frame reinforced concrete construction and buildings that were to be demolished.
*2 Includes office buildings for which appropriate structural calculations could not be reconfirmed. For example, if the architectural firm that implemented the structural
calculation had already discontinued its business.

on various problems related to buildings, including the1

External Evaluation

Quality evaluation for management companies
Each year, Hulic evaluates the implementation status of<Specific primary evaluation items>

management work and provides property management-C onfirm to check if maintenance work for buildings and facilities,
including complying with legal requirements applicable to buildings, hasbeen performed systematically and thoroughly without omissions as
stipulated in the contract.
-C onfirm the status of legal compliance, including the status of renewing
the verification due date of measuring instruments, etc. and submissionof mandatory inspection results reports to the relevant regulatory
authorities.
-C onfirm that defects occurring unexpectedly, including those pointed out
during the legal inspection, have been fixed without delay.

companies with feedback to improve and standardize thequality of their work.
   We use the results of evaluations as information to decide
whether to continue to entrust management work with thecurrent property management companies in accordance withthe rules for real estate outsourcing management.

48

Hulic Sustainability Book 2020

Corporate Governance

Maintenance and Improvement of Quality and Ensuring Uniformity
in Quality of Hulic’s Buildings

Environmental Initiatives

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

Social Initiatives

buildings, as well as operational and management aspects of buildings.

Collaborating and Cooperating with Business Partners during and after Disasters

Seismic reinforcement using steel brace (Takagicho Center Building)

Earthquake-absorbing equipment
Hulic Sustainability Book 202049

Social Initiatives

Responsible Marketing

In order to protect human life and functions of facilities

continuity, we have proactively adopted an earthquake-

Hulic has set out the principle of “treating clients faithfully andWith regard to important company information, we aim tofrom large scale earthquakes, we have imposed high seismic

absorbing or earthquake-damping structure which iskindly, listening to their requests with sincerity and providing

disclose information with accuracy based on the facts, and in acapacity on newly constructed buildings. With the aim ofeffective at ensuring a high seismic capacity, in addition tosophisticated, efficient, and high-quality services” in the Basic

way that is easy to understand in accordance with the rules forprotecting customers' lives and contributing to businessother methods to improve the seismic capacity.

Principles of Corporate Conduct and endeavors to build positive

disclosure control. Furthermore, we disseminate information

Earthquake-absorbing Structures

Earthquake-damping Structures

relationships with clients. In addition, we obtain the necessary

through various media by creating a company website,

permits and licenses for conducting business operations andpublishing press releases in a timely manner, and setting up

By isolating the building from the ground with a mechanism

With earthquake-damping materials installed inside thecomply with matters stipulated by various business laws andsignboards at train stations, with the aim of fostering a feelingcalled an isolator, seismic energy is absorbed to reduce thebuilding, internal seismic energy is absorbed to reduce theregulations.

of familiarity with our company widely among the public.

intensity of shaking to 10% -50% compared to other generalintensity of shaking from half to one thirds compared withearthquake-resistant structures. Another feature of thisother general earthquake-resistant structures. In addition to

structure is that how a building shakes during an earthquake

the case of increasing the safety further by combining thisPromoting 3 Future Growth Businesses (3K Businesses) toward Resolving Social Issues

with a earthquake-absorbing structure, we preferentially

Initiatives for the Senior Citizen-related Businessfloors of the building. For instance, Sendai First Tower, aemploy the earthquake-damping structure in the case that the

As the aging of society continues, we anticipate that

initiatives in nursing homes, for which there is a strong need,jointly developed 24-story building completed in Sendai

earthquake-absorbing structureis physically unavailable due

demands for nursing and medical care will increase. We are

we aim to quickly make 5,000 units available.

(where earthquakes strike frequently), is one of the few

to constraints including land contours. Hulic has incorporated

promoting the development of nursing homes, hospitals andbuildings with this earthquake-absorbing structure. We havethis method in many properties. Hulic uses this method notcolumbariums, as well as businesses to promote wellbeing

・ Nursing homes (number of properties owned): 44

received critical acclaim for our stance one nsuring safety.

only in offices but also in hotels and commercial buildings.

and enrich the lives of active seniors.

・ Nursing homes number of units: 3,400   Leveraging our know-how gained through pioneering

Shakes violently

General Building

Earthquake-Damping Structure

Shakes violently

Shakes lightly

After the Great East Japan Earthquake, extensive regions

on ground with possible liquefaction. We concluded that

including coastal areas in Tokyo suffered from liquefaction,

the buildings in our portfolio were not significantly affectedwhich caused damage such as buildings leaning over andby liquefaction due to the planning of appropriate building

subsiding. According to the liquefaction map, it was found

foundations suitable to the sites.

that eight buildings owned by the Company were located* T he CRE business makes use of real estate owned by private companies and supports a
strategy of enhancing corporate value.

Exterior

Photovoltaic panels

Corporate GovernanceAs part of our Corporate Real Estate (CRE) business,*which seeks to effectively
use bank buildings and company housing, Hulic developed and completed
the construction in July 2019 of a nursing home that maximizes asset value
to meet local needs. Existing trees were preserved in consideration of theenvironment, while electricity is supplied from photovoltaic panels on theroof to lighting of common areas. LED lighting is used throughout to conserve
energy. In addition, we developed a specially designed sidewalk and an open
space with an emphasis on greenery to improvethe environment.
   For safety and security, we ensured earthquake resistance 1.25 times
greater than the legal requirement. We also installed emergency power supply
equipment and a rainwater storage tank to respond to torrential downpours.

Liquefaction Countermeasures

Gardenon the roof

② Smart Senior Housing Project (a new nursing care business using AI and IoT)
BackgroundThe nursing care field faces a serious labor shortage, and raising workplace efficiency and lowering the employee turnover rate are urgent
issues. In nursing homes, efforts are being made to improve the residents’ quality of life (QOL) by managing data on sleep, breathing, pulse,
etc. and preventing dementia, among other things.

Measures against Water Damage
power generators installed in basement, then examine thesupply of power, which is essential for the use of a building,application of flood control measures, in preparation for

can stop. We investigate the status of buildings with power

localized heavy rains caused by climate change and tsunamis

receiving and transforming equipment and with privatecaused by earthquakes.

OutlineIn cooperation with nursing care businesses and venture companies, we
provide advanced nursing homes (the Smart Senior Housing project) utilizing
AI and IoT, and we aim to develop new businesses and build brands in thenursing care field.
   Our first step is to phase in monitoring sensors developed by EcoNaviSta
Co., Ltd. (CEO: Kimito Watanabe) to our nursing homes operated by Charm
Care Corporation. Next, we will introduce a platform that combines multiple
advanced products centered on monitoring sensors to a facility owned by
the Company and operated by the same operator, which is scheduled forcompletion in April 2021. In this way, we aim to further advance the smart
senior housing project. We also plan to collaborate with other nursing careproviders.

State-of-the-art Smart Senior
Housing using AI and IoT
Human resource
education•

Remote training•

Coaching AI

Nursing care staff

Residents<Raising efficiency><Improving QOL >AI analysis of big data

Raising workplace efficiency•

Automation of nursing
care recording software•

Bath monitoring•

Making staff visible•

Urine sensor

External Evaluation

When electrical equipment is damaged by floodwater, theHulic Sustainability Book 2020

Case Study① Trust Garden Ogikubo

Deforming
laminated rubber

50(as of December 31, 2019)

Environmental Initiatives

Shakes slowly and parallelly

Earthquake-Absorbing Structure

Social Initiatives

does not differ significantly between upper floors and lower

General Building

Our Approach to Sustainability

Proactive Adoption of Earthquake-absorbing and Earthquake-damping Structures

Monitors
Data coordination•

Monitoring sensors•

Walking analysis•

Facial recognition sensors

Hulic Sustainability Book 202051

Social Initiatives

To capture steadily rising demand from overseas tourists and・ A ccommodation facilities (number of properties owned) : 39*

the elderly, we operate our own brand of hotels and ryokans(Japanese style luxury inns), and we are acquiring other hotel* Includes properties sold to or co-owned with REITS

・ Accommodation facilities number of rooms: 8,200

assets.

(as of December 31, 2019)

Case Study① Developing THE GATE HOTEL brandOur compliance manual (the code of conduct) specifies businessor other articles. All employees are reminded through theseentertainment/gift and prohibition of bribery. We implement

efforts that providing business entertainment or gifts forinternal compliance training in a timely manner to raisebusiness partners in an improper manner may impair appropriate

awareness among our employees of rules such as prohibiting

business relationships and the soundness of business, and thatgiving donations, offering business entertainment, and givingsuch conducts violate our internal rules and regulations andgifts to public servants or other interested parties. Furthermore,

the compliance manual. Our employees and employees of our

twice a year, our Legal & Compliance Department monitors

business partners are encouraged to report any violation of laws

whether each department properly manages the entertainmentor service disciplines or any other problematic matter in terms ofof interested parties and the acceptance or offering of gifts

legal compliance directly to the compliance hotline.

Framework for Collaboration and Cooperation with Related Parties and Business Partners

THE GATE HOTEL KYOTO TAK ASEGAWA by HULIC② Developing Japanese style luxury hotels “Fufu Series”[Framework for collaboration and cooperation withmanagement companies]

construction companies]○T he emergency contact network for emergencies during

We have concluded emergency repair agreements with 20

night time or on holidays has been established between Hulic

construction companies under which they agree to cooperate

and building management companies. With this network,

to assess destruction status and damages of Hulic’s buildings

we maintain a framework for responding promptly to

immediately following a large-scale disaster, and offer fullemergencies.

cooperation for the restoration and recovery of our buildings○W e have introduced a safety confirmation system withreal estate management companies through the Internet
Fufu Nara opened in June 2020

for swiftly sharing information and verifying the extent ofwhile putting the highest priority on ensuring safety.

Cooperative Structure with Business Partners

damage.
○W e have wireless communication devices in place ascommunication tools linking Hulic and its three majorbuilding management companies in case the communication
infrastructure is disrupted during a large-scale disaster, We

Initiatives for Business Partners

regularly conduct communication training drills.

Collaboration with Business Partners

Approach

CSR Procurement Policy

We aim for close mutual communication with our business partners, andHulic actively engages in sustainability activities as a company involved in the real estate industry. We have formulated abuild relationships that mutually enhance the corporate value of both

policy on procurement and purchasing to further develop our sustainability initiatives. In addition, we promote sustainability

parties. Additionally, Hulic strives to create shared value with stakeholders
by resolving various social issues through PPP business.

【Results in FY2019】Evaluated the status of work implementation of outsourced property management companies

Fair Trades with Outsourced Contractors
management, respecting related laws and regulations as welloutsourced contractors, we work to ensure fair tradeas guidances from administrative organizations. We selectwith them as a partner on an equal footing. Regarding

an outsourcing contractor that is most appropriate for eachoutsourcing by the real estate business division, we ensure

project by checking track record and abilities to execute

fair trade based on the rules for real estate outsourcing

operations.

Cooperation with Building Management Companies
Hulic Building Management Co., Ltd. inspects and evaluatesassessment results.

management conditions once a year based on the rules
for real estate outsourcing management and and makes around to provide guidance to each company based on theWEB

Maintenance and Improvement of Quality and Ensuring
Uniformity in Quality of Hulic’s Buildings
https://www.hulic.co.jp/en/sustainability/social/customers/#anc2

1. We will comply with laws, regulations and social norms, andundertake business activities based on a set of corporate ethics.
2. We will respect the fundamental human rights of all people.
① Prohibition of discrimination
We prohibit any discrimination against any person on the ground of
his or her belief, religion, age, sex, sexual orientation, race, nationality,
origin, physical or mental disability, etc.
② Prohibition of harassment
We prohibit any act, including sexual harassment or abuse of authority,
to inflict emotional distress on any person by language or behavior thatdamages his or her character or dignity.
③ Prohibition of child labor
We prohibit any child labor.
④ Prohibition of forced labor
We prohibit any forced labor carried out through violent acts or
intimidation.
⑤ Respect for the right of freedom of association and right ofcollective bargaining
In line with international labor standards, we respect the right of
freedom of association and right of collective bargaining.

⑥ Reduction of excessive working hours
In addition to ensuring compliance with labor-management agreements,
including the 36 Agreement and laws and regulations of relevant
countries and regions, we adopt basic policies to reduce overtime workand limit excessive work.
⑦ Securing of health and safety of workers
In accordance with laws and regulations of relevant countries andregions, including the Labor Standards Act, we endeavor to offer aworkplace where workers can work healthily and safely.
⑧ Payment of wages over minimum wage
We pay wages over minimum wages prescribed in various local laws andregulations as well as the Minimum Wage Act.
3. We will take consideration of environmental conservation andwill strive to promote green procurement.
We will endeavor to conduct procurement in accordance with the
Hulic Green Procurement Policy in order to realize a sustainable
society.

External Evaluation

Considering long-term business relationships withactivities across the entire value chain by applying this policy to business partners as well.

Corporate GovernanceFundamental

Environmental Initiatives

As demand for individual travel increases, we are promoting theacquisition and development of ryokans (Japanese style luxury inns).
We have already developed and opened Hakone Suishoen, Atami Fufu,
ATAMI Kaihourou, Fufu Kawaguchiko, and Fufu Nara. Going forward,
we plan to develop ryokans in Nikko, Kyoto,and Goura, with a target ofaround 10 more ryokans in the Fufu series.

[Framework for collaboration cooperation with building

Social Initiatives

We own and directly operate THE GATE HOTEL brand. We are adding
two hotels in 2020, Kyoto (in July) and Ryogoku (in November) after
opening Asakusa, Ginza/Yurakucho in the recent years.

Educational Activities through Compliance Training

Our Approach to Sustainability

Initiatives for Tourism Business4. We will build an information management system and manage
information appropriately.
5. We will carry out fair and equitable business transactions andbuild trusting relationships with business partners.
6. We will strive to provide safety, peace of mind and high quality.

52

Hulic Sustainability Book 2020

Hulic Sustainability Book 202053

Social Initiatives

Case Study

Hulic promotes the creation of social and economic values through PPP projects from the viewpoint of not only real the estatebusiness but also addressing social needs and challenges.

② Project to effectively utilize the land for the Tokyo office of Hokkaido Government (completed in September 2013)

Public-private Partnerships via PPP Projects
Public Private Partnership (PPP) projects intend to efficiently

account challenges and needs of administrative agencies andutilize and operate real estate owned by national or local

communities through exchanges of information with them,governments (public real estate) through collaboration andwe aim to contribute to the regional economy by settling thecooperation between the public and private sectors. We

issues of the communities and realizing business to improve

are actively engaged in PPP projects by utilizing abundantthe value of public real estate through collaboration between

development track record and a stable business base as

the public and private sectors.

Issues for municipalities❶ Land as a risk asset*❷ Increase in underused or unused land
❸ L iabilities for risk specific to realestate (earthquake safety, asbestos, soil

❶ Financial issues

Effective use andoperation of public realestatepollution, etc.)••

Changes in funding conditions
A dministrative and financial reforms(reform of public accounting)❷ Aging of public facilities

PPP projects( joint public- and privatesector projects）

Hulic Co., Ltd.

•E ffective track record indevelopment in central Tokyo•

Stable business base

Hulic is committed to creating shared value with our stakeholders through our PPP business.

① Hulic Asakusabashi Building (completed in February 2013)

Green relaxing space of approx. 3.5 ha

purpose hall where many
people can gather for events,
rental conference rooms,
stores, bicycle-parking lots,
and a bicycle-rental service,in addition to office spaces.
Its exterior appearance wasdesigned in harmony withlandscapes and the town
traditions.

Multi-purpose hall to create
festivity

This is a PPP project, in which privately proposed facilities
will be constructed and operated on the site of the former
Takabatake-cho Court owned by Nara Prefecture.
Hulic was designated the preferred bidder in open bidding
proposal calls for the project to preserve, manage, and utilize
the site of the former Takabatake-cho Court, conducted by
Nara Prefecture in March 2017. and has been developing the
project since. Finally, we opened a ryokan (Japanese styleluxury inn) as Fufu Nara in June 2020.
   Fufu Nara is situated in Yugayama Enchi Garden which
was created and maintained by Nara Prefecture and has twowings, lodging and restaurant wings. We were able to create
something new and attractive to Nara Park with this highquality accommodation facility that blends in with the existingtrees and the remains of garden and excellent Japaneserestaurant that serves locally sourced products.
   Buildings and landscapes were designed by Kengo Kuma
and Associates and Shunsaku Miyagi (Placemedia), designed andconstructed by Asanuma Corporation, and operated by Hulic Fufu,
Hulic’s subsidiary, as a luxury accommodation facility Fufu Nara.
We aim to operate this ryokan in a way that contributes toenhancing the appeal of Nara Park, combined with the gardenzone to be developed by Nara Prefecture.

External Evaluation

The purpose of this PPP project was to construct andoperate privately proposed facilities including a bicycleparking lot and a multi-purpose space by leasing the siteof former Fukui Junior High School owned by Taito-ku inTokyo on a 50-year fixed-term contract. Hulic constructeda large-sized complex building with total floor area of
19,800 m2 mainly consisting of offices. In order to realize
the project concept of contributing to creation of festivity
and local revitalization by attracting more people to seek
entertainment around Asakusabashi, the building canbe used for various Purposes. For example, with a multi-

Hulic Sustainability Book 2020   For environmental friendliness, the building actively
incorporates an energy-saving system which allows theeffective utilization of precious natural energy such as light,
wind, and water to reduce burden on the environment andat the same time ensure a comfortable indoor environment.
The building has been awarded platinum rating under the DBJ
Green Building Certification System and won a SEGES (Socialand Environmental Green Evaluation System) certification for
urban development. In addition,
under the Tokyo Green Building
Program, the building has been
awarded AAA, which means grade
3 and the highest grade, for therate of reducing thermal load on
the building (PAL reduction rate)
and for the ERR (energy reductionrate) of the entire facility system.

④ Fufu Nara (open for business in June 2020)

Case Study

54

This was a project to utilize the public land, and it was
jointly carried out by our company, NTT Urban Development
Corporation, Taisei Corporation, and Tokyo Urban Development
Co., Ltd. For the project, part of the premises of Shibaura
Water Recycling Center located in Konan 1-chome, Minatoku, Tokyo was borrowed, and a business as well as commercial
building was constructed on top of the underground sewage
facilities built by the Bureau of Sewerage of Tokyo. The
building incorporates one of Japan’s largest quake-absorbing
structures, has an emergency generator which can operate for
72 hours, and is equipped with a hall and other facilities which
can temporarily accommodate people who cannot get home
due to a disaster. Additionally, in the large green space (thesize of which is about 3.5 ha) neighboring the building, various
seasonally blooming trees and flowers are arranged, whichmatch the environment of the surrounding areas; a waterfront,
and a massive open space filled with grass. We would like thebuilding and the green space to be used as comfortable spacefor various recreational activities and events.

Corporate Governance

Creating Values through PPP Business -Case Study-③ Shibaura Water Recycling Center rebuilding project (completed in February 2015)

Environmental Initiatives* L and as a risk asset refers to the potential forviolent fluctuation in the land price and to theowner’s responsibility for issues specific to realestate such as asbestos and earthquake safety.

Creating Shared Value in this project

Social Initiatives

Municipalities

which utilize food produce from Hokkaido. Finally, it is aimed
to be a facility helping to increase the value of Hokkaido.

and overseas, the building will improve communication. This
will be achieved through interactions between tenants of theshared office, where diverse firms including venture companies
gather, and Hokkaido, or among tenants, through restaurants

one of the leading companies of PPP projects. Taking into

Issues for land investment

In this PPP project, a private business operator is supposed
to lease the Hokkaido-owned land for the Tokyo office of
Hokkaido Government on a fix-term contract, and constructand operate private facilities including facilities designated by
Hokkaido Government (Hokkaido facilities). Hulic has planned
to construct a complex building with a total floor area of
6,700m2. Under the concept of building a new bridge to Tokyo

Our Approach to Sustainability

Creating Shared Values through PPP Business

Exterior and interior of Fufu Nara

Hulic Sustainability Book 202055

Social Initiatives

Initiatives for Employees⑤ Rissei Garden Hulic Kyoto (open for business in July 2020 )Fundamental
Approachcomplex that includes a hotel, commercial properties, andamenities for cultural and regional activities (a hall, library,and community center). In July 2020, THE GATE HOTEL
KYOTO TAKASEGAWA by HULIC opened as the third hotelfor our THE GATE HOTEL brand.

well as lawyers and certified public accountants. In order toparticular emphasis on employee development. Our Ordinary

create a highly productive organization, we place priority

Income per employee is over JPY400 million. We believe thatto talent acquisition, enhance next-generation nurturing

this figure reflected our status as top-notch among the listed

support systems and welfare programs, embrace diversity

companies in Japan boasting excellent productivity. We

and work style reform, and advance health and productivity

encourage employees in their efforts to gain qualifications.

management in addition to talent development.

Initiatives to Create a Small Group of Elite Professionals
Improving Talent Development Programs
Hulic considers talent development to be a top priority that

Promoting Internal Communication / Sharing
Corporate Philosophy

should be approached with a long-term perspective in a

Hulic has a small workforce, which enables a distinctively

planned manner. The managers and the Company strongly

close distance between each employee, as well as

support employees in their efforts in further developing skill-

between top management and employees. Hulic’s

sets and gaining qualifications by sharing the common view

Corporate Philosophy and the Company-wide directions

on professional development.

are communicated to all employees through a President’s   Employees are advised to obtain two or moremessage sent out every month. This allows us to share ourqualifications by the time they reach the age of 30. The

Corporate Philosophy throughout the organization and forcosts associated with obtaining qualifications are fully borne

everyone to clearly see the directions we are heading.

by the Company in principle. We also provide free English   In addition, Top Seminar which is a social gathering

conversation classes twice a week. In addition, we post neworganized for around 10 employees by the President is held

hires to on-the-job training and facilitate an environment

once a month for employees under the age of 40.

where they can constantly develop new business ideas and   Furthermore, the President Survey is conducted once

take on challenges, which serves to boost motivation.

in every six months. This provides an opportunity for
all employees to share their thoughts directly with theRendering image

medical treatment facility operated by Iseikai with around560 beds for advanced acute medical care. The hospital will
also support medical tourism.

Providing High Level of Fringe Benefits

President. Various opinions regarding work and internal

Since it became a public company, Hulic has increased

systems have been received, and appropriate steps are being

earnings and dividends each year and has rewarded

taken accordingly to address these thoughts in response.

employees accordingly with highly competitive compensation   We also regularly conduct interviews between employees

package that include higher salary and fringe benefits

and their managers to help building good relations. Throughsuch as welfare programs. This has resulted in better talentthese interviews, the goals and expected roles of eachacquisition, which in turn drives further growth for theemployee are discussed and agreed and performance reviews

Company in what we see as a positive cycle.

are provided.

Survey of Participant Satisfaction with Internal Training Programs
We are conducting a survey of participants in English

instructor satisfaction on a five-point scale and to provide

conversation classes and new graduates to improve thefeedback on suggestions for improvement. We are also

content of our training. At the end of each training session,working to improve the content of the training based on theparticipants are asked to rate the content of the training andopinions of the participants gathered.

External Evaluation

Hulic Sustainability Book 2020

first-class registered architects and real estate appraisers as

and this is one of our strengths. For that reason, we put

Corporate Governance56

Hulic is made up of a small group of elite professionals

Environmental Initiatives

range of areas and develop complex facilities that continue tocreate a lively community as a base for travelling and staying,by connecting the waterfront and town areas. The complex
facilities will have convenient facilities and a family square forresidents of Tokyo, tourist information functions, and a cafe,
etc. on the lower floors, and THE GATE HOTEL Ryogoku by
HULIC, operated by the Hulic Group, on the upper floors.
We aim to operate the project in a way that contributes toenhancing the appeal of the Ryogoku area.

⑦ Ogimachi Iseikai Hospital Development ProjectIn August 2018, we were selected as a proposed contractor
and we are currently engaged in the development. Our aim
is to create a business that contributes to the greater appealof the Ogimachi area. As a complex facility that serves as abase for revitalization of the town, the hospital will consistof three facilities.
   On the lower levels there will be a cultural creation
facility centered on a theater where new culture andcommunities can be created and disseminated, along withan exchange promotion facility with a café, convenience
store, children's English education center, and otherfacilities. On the upper levels, there will be an international

Initiatives to Create a Highly Productive Organization

Currently, many of them are licensed professionals such as⑥ Hulic Ryogoku River Center (open for business in November 2020 )A group comprising Hulic, AXS SATOW INC., Tekken
Corporation, and Sakata Construction Co., Ltd. was selected
as the designated project operator in open bidding proposal
calls for the Ryogoku River Center Development Project,conducted by the Tokyo Metropolitan Government and theSumida Ward Government in September 2017.
   It is a PPP project in which a private business operator
constructs and operates privately proposed facilities,
including convenient facilities for residents of Tokyo (Tokyo
Metropolitan Government) and a family square (Kosodate
Hiroba; Sumida Ward Government), on plots of land ownedby the Tokyo Metropolitan Government and the Sumida
Ward Government and leased for a fixed term.
The project site is located along the Sumida River in anarea with a concentration of historical and cultural tourism
resources, including Ryogoku Kokugikan (sumo stadium), Edo
Tokyo Museum, and the Former Yasuda Garden.
   The Hulic Group will communicate the appeal of a wide

development and management.

Social Initiatives

In the public solicitation of proposals for using the former
Rissei Elementary School site, solicited by the Kyoto City
government in March 2017, a group comprising mainly of
Hulic, Takenaka Corporation, and Furuse-gumi Corporation
was selected as candidate contractors, and we signed
a basic agreement with Kyoto City in May. This is a PPP
project, in which a private business operator leases theformer Rissei Elementary School site, owned by Kyoto City,and constructs and operates facilities proposed by theprivate sector, including municipality-designated facilities(space for community activities, etc.), with the aim ofreviving their dynamism and sense of community with acultural hub at the center.
   This system was developed for a multi-functional

We aim to create robust and highly productive organization through talent

Our Approach to Sustainability

Human Capital Management

Case Study

Rendering image

Hulic Sustainability Book 202057

Social Initiatives

We provide an internship program intended forthe real estate business and our identity through acquiring

Fundamental

understanding of the industry and work for undergraduate

knowledge of real estate developer’s affairs and verifying

Approachand graduate students at the our Head Office Building. We

projects. 70 students participated in FY2019.

offer a program where the participants can learn about*The figure marked with

Mid-career(generally 30 years old or older)advancement are important issues for Japan’s economy.

we have established an action plan in accordance with theWith regard to support for the next generation, Hulic aims

Act on Advancement of Measures to Support Raising Next-

to achieve a higher level than the legal standard and has

Generation Children, set targets for the development andestablished various systems in this regard. In addition, we arethorough notification, etc. of the work-life balance support

working to create employee-friendly environments where allsystem, and are conducting activities to these ends.

Sending to non-affiliated companies

Action Plan based on the Act on Advancement of Measures to Support Raising
Next-Generation Children (5th period)
Period of the plan: September 1, 2019 – December 31, 2023
Target 1

Have 100% of eligible female employees and at least one eligible male employee take childcare leave by making it easier to use the system

Measures

Presentations on work-life balance systems will be held for childcare leave applicants and their supervisors.
The availability of work-life balance systems will be made more widely known among employees to encourage them to take childcare leave.
Data on work-life balance systems will be periodically collected and reviewed.

Target 2

Raise awareness of diversity management among managers

Meaasures

Seminars on diversity management will be held for managers.

Training for newly appointed
deputy general managers
Managerial training
Trainings as-needed (as required)

English conversation classes (held by the Company at meeting rooms in the Company) Self-development seminars

Establishment of Hulic’s Onsite Childcare Nursery Facility
In 2014, we opened the Odenma Fureai Childcare Nursery

the intention of contributing to

inside the Hulic Head Office Building to promote a more

reducing the number of children

employee-friendly work environment in which our employees

on nursery waiting lists in the

can raise children while working. In addition, to make thislocal community.

childcare nursery more accessible, employees using this*Conditions for use applied to neighboring

service are allowed to drive their cars to work and park themchildren differ from those applied toin the Head Office Building’s parking lot free of charge. This
childcare nursery is not only available for the employees
but also for certain children* of neighboring residents, with

employees.

WEB

Odenma Fureai Childcare Nursery website
https://www.hulic.co.jp/sustainability/social/employee/nursery/

Corporate GovernanceTop seminar
Get-together with the President and young employeesChildcare Support Initiatives

Environmental Initiatives

Enhancement offoundamental
abilities in financeand accounting

Assigned tomultiple
departments throughjob rotation

Social Initiatives

employees can make the most of their abilities. Accordingly,

Sending to graduate school

Talent development program
Project review, project by theme, etc.(incorporated in works)

New hiretraning

has been assured by an independent assurance provider.

The falling birthrate, aging population, and women’s social

Overseas visits / study programs

Period of educational assignment

where employees can easily take paid time-offs and to avoid long work hours.

Work-life BalanceManagers or higher

System to support obtaining qualifications
The Company bears costs for registration and renewal of qualifications (such as first-class architecture,real-estateappraiser, etc.) and, in principle bears costs for external seminars on the premise of passing an exam.
Encouragement on obtaining
qualifications• Obtaining multiple qualifications
by 30 years of age• Well-planned goal setting

them to strike a work-life balance. We take measures to facilitate environment【Results in FY2019】 Usage rate of paid leave: 78.5％

Overview of Talent Development Programs
New hires(up to around 30 years old)

In order for employees to be healthy and fully exercise their abilities, we encourage

Our Approach to Sustainability

Work-life Balance -Creating a Motivating Work Environment-

Providing Internship Program

Diagram of Hulic's Next Generation Nurturing Support Program

External Evaluation

58

Hulic Sustainability Book 2020

Hulic Sustainability Book 202059

Social Initiatives

SystemWork Style Reform

Details
Possible to take leave until a child becomes 4 years old.
In case of taking a short-term childcare leave, it is possible to use the first month as a "paid special childcare leave".
• A male employee who took a childcare leave once within 8 weeks after childbirth is allowed to take the leave again within the period when childcare
leave is still available.

To create an environment where every employee feels

in summer as ways to embrace diverse work styles. We are

motivated and can work to the best of their ability, we

also undertaking a change in the long working hour culture,encourage people to take time off, to work less overtime,

including tracking working hours and internal promotions to

Employees who have reared a child in or younger than the third grade of elementary school can reduce work hours not exceeding two hours per day
in units of 30 minutes, if they wish.

and we have introduced teleworking and staggered shifts

encourage taking time off.

Promoting the Use of “Plus-one” Paid Leave
and Consecutive Paid Leave

Implementation of No Overtime Day

Promoting the use of paid leave before and /or after

each Wednesday, we encourage employees to leave work

Saturdays, Sundays, or holidays, and the use of a three-day

on time. In addition, we adopt morning-oriented work

vacation and a one-week vacation once a year respectively.

arrangements in summer.

•

Special childcare leave/Childcare
leave
Reduced working hours/Limits
on overtime work••

Exemption of overtime work•

Employees who have reared a child in or younger than the third grade of elementary school can be exempt from overtime work, if they wish.

Staggered work hours•

Depending on necessity, employees can apply for staggered work hours for reasons such as child care.

Job-return system•

An employee who retired due to marriage, childbirth, childrearing, and nursing care, etc. can return to work under the same working conditions as
at the time of retirement.

A special payment for marriage of 100,000 yen is given to employees regardless of their service years.
Celebration money on auspicious• A special payment for childbirth is given to employees: 100,000 yen for the first child, 200,000 yen for the second child, and 1,000,000 yen for theoccasions (marriage, childbirth)
third child and thereafter.
•

Childcare Center Subsidy System

Subsidize part of the childcare center fee until a child enters elementary school. A monthly payment is up to 30,000 yen for one child. (This amountapplies not only to the first child, but also the second child and thereafter.)• Subsidy for extended daycare nursery hours.

Implementation of “My Friday”

Subsidy for costs associated withcaring for a sick child•

Up to 5,000 yen is paid per day per child, for a maximum of 5 days per month, until the child reaches the end of the third year of elementary school.

afternoon once a month.

Our Approach to Sustainability

Details of Next Generation Nurturing Support Program

We have designated Wednesday as a No Overtime Day. On•

Hulic has established nursery facilities at its Head Office for employees. Both monthly and temporary childcare services are available at the facilities.
• Employees using these services may drive to work and park their cars at the Head Office Building.
•

Improving the Efficiency of Business Processes
and Promoting Outsourcing
We check the usage status of paid leave and implementation
status of No Overtime Day as appropriate, and hold

It is applicable during the period from when a female employee found out her pregnancy to when she takes maternity leave in the case it is difficult
to work due to pregnancy complications, etc.
• It is applicable when it is necessary for an employee (regardless of gender) to nurse a sick child younger than fourth graders or to participate in theevents of nursery school or elementary school.
• Child care leave is available for up to 10 days (in case of one child) or up to 15 days (in case of two children or more) a year and can be taken in half days.

discussions on working style at each department. In addition,

Child care leave (Previous nursing
care leave was incorporated inchild care leave.)Work from home system•

Possible to work from home for the purpose of childrearing or nursing care and this system can be used in half days.

Leave for childbirth of spouse•

Possible to take a day off in the case of childbirth of spouse (paid).

•

•

•

Other support programs
including support for employees
during maternity leave and upon
their return to work

we work to reduce long working hours and promote thesystematic use of paid leave by monitoring working hours,
etc. through the Risk Management Committee and guidance
and advice through the Health Committee.

Employees can use the internet-based “Childcare wiwiw Program（*）” which supports employees from the period prior to maternity leave up to
their return to work. (We also provide courses for male employees. The spouses of male employees are allowed to use the this Program too.)   As a result of various initiatives, the usage rate of paid
leave remains high in 2019.

*The service is provided by wiwiw Inc. Representative services are described below.

Based on the Act on Advancement of Measures to Support
Raising Next-Generation Children, we have received Platinum
Kurumin certification in 2020 from the Minister of Health,Labour and Welfare as a Company that supports employees

in raising the next generation at a
distinctive level. At that same time, we
also received Kurumin certification for
the third time (in 2010, 2017 and 2020).

60

71.4
36.6

71.6
37.6

78.3

77.0

78.5

36.8

37.4

37.5

40
30

40

20

20

10

0

2015

2016

Usage rates of paid leave

2017

2018

0
2019 （FY）

Monthly average of discretionary overtime per person

Efforts to Support the Security of Employees and their Families
There is nothing better than for all employees to be healthy

her family through the systems shown below. We wish thatevery day. However, If something unexpected happens tosuch preparations for this possibility will lead to the creation

one of our employees, we will support the employee and his /of a secure and comfortable company for employees.

SystemDetails

Corporate GovernancePlatinum Kurumin Certification

80

50* The figure marked with “ ” has been assured by an independent assurance
provider.
* The usage rate of paid leave is calculated by dividing the "number of days of paid
leave used in the year" by the "number of days of paid leave granted in the year
excluding leave carried over".

- Service which supports communication between the employee and his/her boss
- Periodic messages about child care and returning to work and information services such as handbooks for maternity leave, childcare leave, andreturning to work
- Online courses, 24-hour telephone counseling and other services• Publication of parents’ childcare support handbook

TOPICS

100

Environmental Initiatives

Up to 10,000 yen is paid per month for a child until the end of his/her third year of elementary school.

Subsidy for the cost of Kids’ Club

Usage Rate of Paid Leave and Overtime Work Hours
Monthly average of discretionary
overtime per person

Babysitter Program

When an employee use services of a babysitting business operator which has a corporate contract with Hulic Group, the entire enrollment feeof 21,000 yen, the annual fee of 10,500 yen, as well as the monthly fee up to 15,000 yen per child are subsidized, in addition to the provision of
discount tickets and coupons.

Usage rate of paid leaves (%)•

Social Initiatives

Company daycare nursery inside
the Hulic headquarters

We encourage employees to take a half day off on Friday

When an employee who died while in office or retired due to disability has children, and his /her unemployed spouse who rears
Support for the the children wants to work at Hulic Co., Ltd. or its group companies, the job opportunity is offered.
bereaved, etc. • When an employee who died while in office or retired due to a disability has children younger than 22 years old, a scholarshipof 150,000 yen a month is paid per child. (According to the application for extension, it is possible to pay for up to one year.)•

TOPICS

60

Hulic Sustainability Book 2020leave by male managers and theensuring of distribution of the “Child
Care Support Guide for Mothers andFathers” prepared by Hulic, we received
the grand prize. We will promote thecreation of comfortable workplaces
for all employees, and promote male
employees' balancing of work and childrearing.

Condolencemoney

Congratulatory
or condolence
payments
Special solatium
for injuries anddiseases••If, while in office, an employee or his /her spouse, child, or parents dies, 20,000 yen - 200,000 yen is paid.
If, while in office, a house in which an employee lives is damaged by natural or accidental disasters, 100,000 yen - 1 million yen
is paid to an employee who owns his /her house, and 50,000 yen - 500,000 yen to an employee who does not have his /her own
house, depending on the scale of damage.

External Evaluation

While we had previously focused mainly on the developmentof the careers of women, we have promoted the improvementof systems such as a child care leave system that both men andwomen can use. This is based on our belief that the sharing
by a couple of the burdens of child rearing and housekeeping
which tend to be shouldered by women will promotewomen's willingness to raise children and continue working.
In recognition of the higher rate of acquisition of child care

When an employee dies or becomes disabled while in office, condolence money or a special solatium is paid to the bereaved
family or the employee.
• In the case of a death, condolence money up to 10 million yen is paid.
• In the case of a disability, a special solatium equal to the amount of condolence money is paid. This payment is different fromcondolence money according to the contents of the "accident compensation rules".
•Received Grand Prize of “Ikumen Award 2017”

When an employee, while in office, is hospitalized for five consecutive days or longer due to disease and injury from a freak
accident, special solatium for hospitalization is paid for up to 120 days.
• When an employee dies while in office, condolence money of 100,000 yen is paid to a recipient designated by the employee in advance.
•

Hulic Sustainability Book 202061

Social Initiatives

In July 2019, the seventh Hulic head office tour for families

a cherished family. In the tour, employees served as a tour

was held. The purpose of the tour is to have employees’

conductor to the onsite childcare nursery and workplace,families understand the Company by providing them analso explaining environmental technologies installed in the

Number of employees (person) (non-consolidated)

opportunity to visit the workplace. We also aim to create a

Hulic Head Office Building. After the tour, participants who

Number of employees (person) (consolidated)comfortable working atmosphere which values families by

wished had lunch at THE GATE HOTEL TOKYO by HULIC,

Average annual salary (JPY million)

having the entire company rediscover that each employee has

attended by the President.

Number of voluntarily resigned employees (person)

Male/Female
Total

Ratio of voluntarily resigned employees (%)
Number of employees in managerial positions (person)(excluding executive offcers)

Male/Female

Supporting Employees in Striking Balance between Nursing Care and Workavailable to employees managing both work and nursing

allow them to manage both work and nursing care when acare. Furthermore, we have established the Regulations forfamily member of the employee is in need of care. The time

Supporting the Combination of Nursing Care and Work torequired for nursing care and the degree of seriousness

support employees.

vary depending on individual cases. Therefore, we believe   In 2016, we further refined the rules for supportingthat improving environment of the whole workplace isnursing care and work and promote diversified working styles

indispensable. Based on this notion, we raise awareness in

so that no employee will be forced to resign to care for family

the workplace so that support from the co-workers is easily

members.

Summary of Program to Support Employees in Striking Balance between Nursing Care and Work

93/35

109/40112/44

114/52

124/57

128

149

156

166

181

784

836

862

936

1,878

12.95

14.18

15.30

16.36

17.61

3

2

2

3

2

2.34

1.34

1.28

1.81

1.11

43/5

57/8

65/12

66/15

71/18

7.36

6.3

6.16

5.74

6.09

2.21

2.11

2.41

2.42

Male/Female

6

0

2

6

12

2/3

6/3

0/2

1/5

6/6
100

100

100

100

100

Number of employees with shorter working hours (person)

5

7

6

3

6

Number of employees who took day off for family care (person)

3

1

1

5

4

Number of employees who took family care leave (person)

0

0

0

0

0

Number of employees who took day off for nursing care (day)(absorbed previous nursing care leave)

34

60

114

86

133

Number of users of the subsidy system for daycare nursery fees (person)

14

22

31

31

23

Number of employees who took leave to take part in volunteer activities (person)

14

18

13

12

12

* Figures marked with have been assured by an independent assurance provider.
* Data covers Hulic Co., Ltd. only (excluding the number of employees (consolidated) and the employment ratio of persons with diabilities (Hulic and Group companies)).
* T he data covers Hulic Co., Ltd. and subsidiary companies that have been certified as affiliated subsidiary companies under the Act on Employment Promotion etc. of Persons with Disabilities.
* E xcludes employees who have been transferred within the Group. Includes seconded employees in the number of employees who took childbirth leave, the number of employees who took childcare
leave, the number of employees who took day off for nursing care, and the number of employees who took leave to take part in volunteer activities.
* Per month totals are given for the number of employees who took days off for nursing care, employees who took childcare leave and employees who took leave to take part in volunteer activities.

Health and Productivity Management

Environmental Initiatives

We provide various types of support for our employees to

2019Social Initiatives

President Yoshidome

2018

2.31

Ratio of employees who returned to work after childcare leave (%)
Luncheon at THE GATE HOTEL Tokyo by HULIC

2017

Employment ratio of persons with disbilities (%)(Hulic and Group companies)
Number of employees who took childbirth leave (person)

A briefing at our Head Office2016

Employment ratio of persons with disbilities (%)(non-consolidated)

Number of employees who took childcare leave (person)

Participants exchange children’s name cards with2015

Our Approach to Sustainability

Human Capital-related Data

Hulic Head Office Tour for Families

Based on the philosophy that employees’ good health is essential for
improving the productivity and growth of the company, Hulic is promoting

Approachthe creation of employee-friendly work environments in which employees
can continue to work with enthusiasm and energy in good health.

【Results in FY2019】Medical checkup rate on employees: 100％
* The figure marked withhas been assured by an independent assurance provider.

Corporate GovernanceFundamental

Promoting Health and Productivity
Hulic formulated the Hulic Health Management Declaration described below to implement comprehensive health management.

Hulic Health Management Declaration
abilities, and aims to achieve sustainable growth by encouraging each employee to deliver high quality and value withprofessional competence.
Based on this philosophy, Hulic regards maintaining and promoting the health of employees as a management issue,
and implements health management to remain “a highly productive organization,” while furthering measures it has
taken for promoting employees’ health.

External Evaluation

Hulic is creating a workplace environment that enables all employees to stay healthy and make the most of their

Manabu Yoshidome
President, Representative Director Hulic Co., Ltd.

*A family member who is in need of care is defined as a spouse, father/mother, child, spouse’s father/mother, grandfather/grandmother, brother/sister, or grandchild who requires constant nursing care for over
two weeks due to a reason such as injury, disease, or physical or mental disorder.

62

Hulic Sustainability Book 2020

Hulic Sustainability Book 202063

Social Initiatives

TOPICS

Hulic was certified as a Health & Productivity Management Outstanding Organization in 2020
for the second consecutive year in recognition of our health and productivity management
initiatives. The award has been promoted by the Ministry of Economy, Trade and Industry inconjunction with the Nippon Kenko Kaigi to advance health and productivity.

Free Breakfast and Lunch

To improve health awareness, we have installed blood

In order to publicize the importance of regular dietarypressure monitors and body composition meters in common

intake, we support healthy food habits at cafeteria (providing

areas, and we support the promotion of employee health byhealthy lunch and calorie display of food & drink menu) .

providing support for sports club fees and by participating in
the Futsal Tournament at the Corporate Games 2019.

Occupational Safety and Health
The followings are Hulic’s major measures for maintaining and promoting employees’ health.

and no accidents that require time off from work or fatal

we give first priority to the securing of safety and healthaccidents occurred in four years in a row (rate of occurrence

Conducting Health Checkups that Exceed Legal Requirements

and endeavor to secure employees' health and safety by

was 0%). We will continuously promote the improvement of・ W e implement an annual health checkup that is fully paid by the company and equivalent to a comprehensive medical

engaging in various efforts. While we have not obtained

the level of occupational safety and health in the workplace.

examination, with a wide lineup of optional examinations such as neck ultrasonography, colonoscopies, and gynecologicalcertifications such as OHSAS 18001, we secure occupational

No employees are engaged in work with a high risk forcheckups.

safety under our own system by regularly conducting risk

illness and no legal proceedings have been brought against

The time required for each health checkup is regarded as working hours.

assessment and improving issues.

us in this regard.

 00% medical checkup rate is our target, which is continuously achieved. From 2018, new targets that 100% medical re・1   The number of accidents occurred in 2019 was zeroSocial Initiatives

In promoting the creation of comfortable workplaces,

Our Approach to Sustainability

2020 Certified Health & Productivity Management Outstanding Organization(Small and Medium-sized Enterprises Category)Health Promotion Program

checkup rate and participation rate of specific health guidance were added.
Message from management to recommend the participation of such checkup and follow-up by HR member in charge of healthmanagement were delivered.
 oreover, in order to promote health management of employees, occupational health physician looks through the results of all・M
employees, interview and provide health guidance for specific employees. In addition, consultation system about health issues

Embracing Diversity & Inclusion and Respect for Human Rights

 s infection control measure, employees can take flu vaccination before epidemic, antibody test and vaccination of rubella.
・A

Fundamental
Approach

Health and Productivity Management Promotion System
employees’ health and safety. Our industrial doctor attends

Health and Productivity Management

all Committee meetings to provide advice and guidance

Promotion System

discuss the status of use of paid leave and overtime work ofbest use of their abilities.
Number of seminars provided by the Diversity Promotion Project Team: 1time
Employment ratio of persons with disabilities: 6.09 % (Hulic) 2.42 % (Hulic and its Group
companies)

Productivity Management Follow-up Meeting members

・Health and Productivity Management Follow-up Meetingbusiness. We aim to foster a workplace in which all employees can make the【Results in FY2019】Ratio of female managers: 20.2 %on healthcare. The Health Committee and The Health and・Health Committee

We respect human rights and proactively take advantage of diversity in our*Figures marked withEnvironmental Initiatives

is established.

has been assured by an independent assurance provider.

employees, and the matters discussed by the Committee are

Diversity: Message from the President

improving internal systems and goal setting. Also, importantdesignated as a leader in health promoted activity.

matters reported to the Health Committee such as the status

Ever since being listed on the First Section of the Tokyo Stock

2020, which was the target of First Action Plan Based on the Act

The Health Committee and The Health and Productivityof use of paid leave, overtime work of employee and status of

Exchange, Hulic has consistently recorded all-time high profits.

on Promotion of Women’s Participation and Advancement in theManagement Follow-up Meeting , which consist of the HR

taking medical checkups are reported to the Risk Management

Now that a decline in the working population is unavoidable, weWorkplace,one year ahead of schedule.

manager and the members elected from among employees

Committee which is headed by the president and the Risk

believe it is essential for diverse human assets to reach their full

We also make active efforts aimed at career development forevery year, hold monthly meetings in principle to promote

Management Committee will discuss the matters.

potential in order for Hulic to continue plotting and achieving its

women and we havestory of steady growth into the future.

been enhancing the

Mental Healthcare

Non-smoking Initiative   To this end, based on a commitment to diversity andtraining and follow up

We implement mental health care in cooperation withFor health promotion and stopping passive smoking ofinclusion, our only job grades are career-track positions to enablerequired to achieve

medical institutions. We help employees, who are diagnozed

employees, we implement enlightenment activities including

our employees to work without any gender distinctions, andthe new target ofas requiring special medical examinations and treatment,complete separation of smoking area from non-smoking

our new graduate recruitment is now almost half male and half

increasing the ratio offind specialists or specialized medical institution partners.

rooms, delivering message from health insurance association

female. Nevertheless, sometimes employees need to leave theirfemale managers to

In 2016, we started to perform stress check tests on all

and post a notice about no smoking. From 2019, we started

jobs for a certain period of time due to life events and sometimes

25% by 2024 and 30%

to bear full cost of smoking cessation clinics for employees

they struggle to balance work and home life when they returnby 2029 every year.

employees to prevent
them from sufferingfrom mental disorders.

Percentage of employees
who took stress check tests
2016

2017

2018

2019

91.0%

97.1%

95.7%

94.7%

who try to quit smoking and introducing the non-smoking

to their jobs. Hulic has focused efforts on improving the systems

hours in the office.

such as establishing nursery facilities located in our office andchildcare leave so that this struggle does not form a barrier.
   As a result of these efforts, we achieved the target ofincreasing the ratio of female managers to 20% by the year

64

Hulic Sustainability Book 2020

External Evaluation

reported to the board members. The matters are utilized for

HR manager and general manager of each department are

Corporate GovernancePresident is a chief executive in charge of health management,

ManabuYoshidome
President, Representative
Director

Hulic Sustainability Book 202065

Social Initiatives

Changes in the Employment Rate of Persons with Disabilities
and Target Figures

Roadmap
Results

2019

2020

2021

2022

2023

2024

20.0%
20.2%

20.5%
—

21.5%
—

21.5%
—

23.0%
—

25.0%
—

* The figure marked with “” has been assured by an independent assurance provider.

Roadmap
Results

2016
—
2.21%

2017
—
2.11%

2018
—
2.41%

2019
—
2.42%

2020
2.40%
—

Execution of Diversity Management
Hulic's basic approach is for the employees to be aligned

diversity promotion project team (the former women’s careerwith their skill-sets, aptitudes, and personalities that enables

promotion project team), which continues to engage inindividuals to perform at a maximum level and as a result of

regular activities based on such themes as improving work-that the Company to operate a high value-added businesslife balance and career development. In addition, meetings

with smaller workforce. To achieve this, we believe that it

are held once a year with the President, who is responsible

We also put efforts into employment for persons with severe* The figure marked with “ ” has been assured by an independent assurance provider.
* T he Data covers Hulic Co., Ltd. and subsidiary companies that have been certified
as affiliated subsidiary companies under the Act on Employment Promotion etc. of
Persons with Disabilities.

disabilities, who have limited employment opportunities.

We believe that it is essential for management tois essential to raise awareness on diversity & inclusion andfor the team, providing an opportunity for employees to

We have established the Hulic Suginami Office, a dedicateddisseminate information actively so that Hulic employees

enhance related frameworks. In 2010, we established the

directly communicate their thoughts and opinions.

work space at Hulic Ogikubo Building, where persons withwork together to promote these initiatives. We communicate

disabilities carry out operations as our employees.

the importance of diversity management through the  We are particularly aware of supporting independence.

dissemination of the Message from the President once a

Activities include working steadily from 9:15 – 16:15,

month, the implementation of the President’s Questionnaire

Hulic's basic approach is for the work of individual relations

2017, we received the Minister of State for Gender Equality Awardlearning how to use PCs in work breaks, and taking part

Survey every six months, and periodic dinner meetings

employees to be aligned with their abilities, aptitudes, andof the Commendation for Leading Companies Where Womenin family tours at our head office once a year. I myself alsowith employees. We are raising internal awareness inpersonalities, enabling individual employees to make the most

Shine hosted by the Cabinet Office.

visit Suginami Office each year to exchange opinions withcollaboration with the diversity promotion project team (theof their abilities and the Company to operate a high valueadded   In 2019, we also engaged in activities with a focus on

everyone in the office.

former women’s career promotion project team) launched inbusiness with less manpower. For this reason we see it as essential

organizing the “Science and Engineering Challenge (Riko-challe)”

2010 under the direct supervision of the President.

to provide opportunities to all employees irrespective of gender

events in cooperation with the Cabinet Office, Keidanren and the

Our employees will work together to achieve diversity andand, in particular, we are strengthening initiatives for the career

Ministry of Education, Culture, Sports, Science and Technology.

inclusion, without any complacency about efforts to date.

development of women. The Diversity Promotion Project TeamIn November, we held a(the former Women’s Career Promotion Project Team) has beenlecture with the theme “Howconducting activities regularly since 2010 with themes such as

to create an organization

improving work-life balance and career development. In 2016, wethat can achieve exceptional

Promoting Female Empowerment

human rights related to equal employment, prohibition ofreceived the highest certification as an “Eruboshi” company underresults from the perspective of

Policy, which proclaims respect for human rights so that allforced labor and child labor, freedom of association, and

the Act on Promotion of Women's Participation and Advancement

diversity and inclusion.”

employees can maximize their abilities and contribute to thecollective bargaining stipulated in the ILO's internationalin the Workplace, and were selected as a “Nadeshiko” Brand. In

realization of a society full of peace of mind and trust. In ourlabor standards.

Human Rights Policy, we declare that we prohibit any acts of   In 2019, Hulic posted on its intranet regarding thediscrimination and harassment, as well as any discrimination

themes of LGBT* and sexual harassment, etc.

Formulation of Action Plan Based on the Act on Promotion of Women’s Participation andAdvancement in the Workplace (2nd period)

against any person on the ground of his or her beliefs,

In addition, we held a seminar on changes in work style asThis Action Plan was formulated in order to enable

religion, age, sex, sexual orientation, race, nationality,

part of compliance training for our directors and general

female employees to strike a balance between their

origin, physical or mental disorder, etc. We also prohibit any

managers. In addition, in 2020 the Corporate Sustainability

careers and child-raising, and to allow them to exertact, including sexual harassment or abuse of authority, to

Office disemminated information

their capabilities and develop their careers in various

inflict emotional distress on any person through language

related to the Hulic Humandivisions of the company.

or behavior that damages his or her character or dignity.

Rights Policy throughout the

Respect for human rights encompasses all fundamental

Group to raise awareness andunderstanding.

Act, and Universal Declaration of Human Rights, as well as* L GBT is a collective acronym for lesbian,Challenge event

Corporate Governancehuman rights found in the Constitution, Labor Standards

Organizing the Science and Engineeringgay, bisexual, and transgender.

The Hulic Human Rights Policy① Prohibition of discrimination
We prohibit any discrimination against any person on the groundof his or her belief, religion, age, sex, sexual orientation, race,
nationality, origin, physical or mental disability, etc.
We prohibit any act, including sexual harassment or abuse of
authority, to inflict emotional distress on any person by language or
behavior that damages his or her character or dignity.

③ Prohibition of child labor
We prohibit any child labor.

④ Prohibition of forced labor

66⑤ Respect for the right of freedom of association andright of collective bargaining
In line with international labor standards, we respect the right of
freedom of association and right of collective bargaining.

⑥ Reduction of excessive working hours

In FY2016, Hulic affirmed the Declaration on action by a group of male leaders who will create a Society in which

In addition to ensuring compliance with labor-managementagreements, including the 36 Agreement and laws and regulationsof relevant countries and regions, we adopt basic policies to reduce
overtime work and limit excessive work.

as an excellent company taking initiatives to promote women’s participation and advancement in the workplace.
Selected as “Nadeshiko” Brand 2016

⑦ Securing of health and safety of workers

From the standpoint of empowering female employees and helping employees improve their career skills, we are

In accordance with laws and regulations of relevant countries andregions, including the Labor Standards Act, we endeavor to offer aworkplace where workers can work healthily and safely.

We prohibit any forced labor carried out through violent acts or⑧ Payment of wages over minimum wage

intimidation.

We pay wages over minimum wages prescribed in various local laws
and regulations as well as the Minimum Wage Act.

Hulic Sustainability Book 2020

women shine and received the highest-level “Eruboshi” certification from the Minister of Health, Labour and Welfare

External Evaluation② Prohibition of harassment

Environmental Initiatives

The Company has established the Hulic Human Rights

Social Initiatives

Respect for Human Rights

Our Approach to Sustainability

Changes in the Ratio of Female Managers and Target
Figures

working to transform our organizational structure, develop an employee-friendly work environment, and further
enhance our benefit programs. In particular, we have put efforts into estabishing a top-class system for fostering
future generations, with the aim of ensuring that female employees are able to continue to play active roles in thecompany while raising their children after childbirth. In recognition of these activities, Hulic was named the Nadeshiko
Brand for the second year in a row and selected as the Nadeshiko Brand 2016.

Hulic Sustainability Book 202067

Social Initiatives

Employment System for Seniors

Participating in the joint declaration on the charter of

12, female: 5); the proportion of women was 29.4%. The

corporate ethics concerning employment issued by Keidanren

ratio of female managers has increased as a result of active

accordance with the revised Act on Stabilization of Employment of

were introduced for rehired employees. They can use leave and(Japan Business Federation), we proactively employ new

efforts to promote the active participation and advancement

Elderly Persons. Under this system, we rehire any employee that hasabsence systems almost equal to the ones for active employees. We

graduates in accordance with the purpose of the charter.

of female employees in the workplace, with an enhanced

reached the mandatory retirement age but who wishes to continue

expect a variety of knowledge and expertise to be inherited throughWhen performing pre-employment screening, we respect

system to support the development of the next generation.

working until the age of 65.

communication beyond generations between senior employees

the basic human rights of applicants and make efforts to

We intended to become a company where female employees   In 2010, we made changes to our reemployment system. Forwith abundant knowledge and experience and younger employees.

secure diverse human resources based on their aptitudes andcould thrive professionally with the target of increasing

abilities, regardless of backgrounds and gender. The total

the ratio of female managers to 20% by the year 2020. We

number of employees newly hired in 2019 (the total number

achieved 20.2% in 2019, ahead of schedule, and have setof new graduates and experienced individuals) was 17 (male:new targets.

example, systems of staggered commuting and a half-day leave

Job Return System
Hulic has instituted a job return system that allows

as before. The purpose of this system is to support a balance

employees who left the Company due to marriage, giving

between work and childcare as advocated in the Act onbirth, childcare, caring for a family member, or other

Advancement of Measures to Support Raising the Next

unavoidable reasons, to return to their same job within a

Generation and to secure human resources that have wide-

five year period with the same compensation and benefits

ranging experience and a depth of professional knowledge.

Our Code of Conduct and Hulic Human Rights Policy

with the President, in an effort to establish good laborstipulate respect for human rights in association withmanagement relations.

equal employment opportunities, freedom of association,   Various opinions and requests were received fromand collective bargaining. we conduct interviews between

employees in response to the President Questionnaire Survey

employees and their supervisors when necessary and carry

and, in fact, work is being carried out based on those

Hulic is run by a small workforce, which enables a

Top Seminar targets employees below the age of 40, and isout the President Questionnaire Survey, through which

responses to create a more comfortable workplace, including

distinctively close distance between each employee, as well

an informal monthly gathering of the President and about 10

employees can share their views and opinions directly

the construction of a bicycle parking lot at the head office.

as between top management and foremen. The company-

employees of the same age.

wide activities are transmitted to all employees through   The President Questionnaire is a communication

the Message from the President every month. This message

tool, allowing employees to offer opinions directly to themakes it possible to understand what other departments

President. Employees submit their opinions in a designated

The Hulic Human Rights Policy prescribes that we pay wages over minimum wage prescribed in various local laws andare working on, stimulating the horizontal communication

form to an in-house post box, and the President replies toregulations as well as the Minimum Wage Act.

beyond the borders of departments.

these opinions. Various suggestions of employees on our   In addition, the Top Seminar is held once a month, andbusinesses and in-house systems have been adopted and put

the President Questionnaire is conducted semi-annually. The

into practice.

Promoting Employment of Persons with Disabilities
The Hulic Suginami Office had their 12th anniversary, andTokyo since September 2010. In addition, this office has

as of June 2019, our employment rate of persons with

been registered as an Excellent Corporation for Employing

disabilities was 2.42%

Promoting Communication between Diverse Employees

Management of Risks regarding Labor and Human Rights Issues

Persons with Disabilities in Tokyo since September 2010, andWe endeavor to prevent violation of laws related to labor   For managing human risk, the department in charge

was rewarded as an “Excellent Office for Employing Persons

and occurrence of accidents. Although risks of child labor

determines and evaluates the situation before reporting

disabilities, instructors with experience in coaching, andwith Disabilities” award in 2013 for active employment

and forced labor are low at Hulic as we have developed ato the Risk Management Committee and making

a chief administrator are working at the Hulic Suginami

and frequent Suginami Office visits by the president, whichhighly specialized business mainly in Tokyo, we declare thatrecommendations. The Board of Directors is also regularly

Office, where they carry out operations, such as thehelped to accelerate creating a sense of unity between the

we do not permit any form of child labor or forced labor. In

kept aware of the content of these reports. As a result, there

dispatch of direct mail. A monthly meeting with the humanheadquarters and the Suginami Office. We will make efforts

order to prevent such labor, we regularly audit compliance

have been no situations that threaten such risks as freedom

resources team of the Head Office is held to ensure thatto improve the workplace so that people with disabilities canwith laws in employment management and also provideof association, collective bargaining rights, child labor,

operations integrated with the head office are being put

feel a sense of worth in their work.

compliance education, including regarding the prevention offorced labor, security practices, or indigenous rights.

into practice. In recognition of our activities to play a* F igures marked with “child labor and forced labor, to employees.

leading role in employing persons with disabilities andproactively develop their abilities, Hulic has been certified
as an excellent corporation in employing the disabled in” have been assured by an independent assurance

Corporate Governanceon anon-consolidated basis. Currently, eight employees withGroup-wide and 6.09%

Environmental Initiatives

Efforts Regarding Compensation

Social Initiatives

Establishing Good Labor-Management Relations

We have introduced a reemployment system for seniors in

Our Approach to Sustainability

Employment of Diverse Human Resources

provider.
* T he data covers Hulic Co., Ltd. and subsidiary companies that have beencertified as affiliated subsidiary companies under the Act on Employment
Promotion etc. of Persons with Disabilities.

Received Commendation for Leading Companies Where Women Shine in Fiscal 2017
In 2017, we received Minister of State for Gender Equality
External Evaluation

Award of the 2017's Commendation for Leading Companies
Where Women Shine hosted
by the Cabinet Office foradvanced companies whichhave excellent policies,
initiatives, and actual
results of appointment of
The Hulic Suginami Office68

Hulic Sustainability Book 2020

women and made excellent
disclosure thereof.

Hulic Sustainability Book 202069

Social Initiatives

Initiatives for Local Communities
Social Contribution as a Company

Approach

To fulfill our corporate social responsibilities, we work to solve social issues and tocontribute to the sustainable development of society.

Policy for Social Contribution Activities
Basic Philosophy

Policy for Activities

Hulic actively and broadly engages in various
social contribution activities including but
not limited to our business fields as a good
corporate citizen. Through these activities
we wish to contribute to the sustainable
development of the entire society.

・ Actively engage in activities with particular emphasis on the three major fields of global
environment protection, sharing value with local Communities, and responses to social
needs.
・ Strongly support social contribution activities of employees.
・ Place an emphasis on securing transparency in implementing activities and facilitatecommunications and cooperation with the society.

Establishment of Hulic Scholarship Program for Training

Donation to the Tokyo branch of Japanese Red Crossof Welfare Caretakers

Society

For the purpose of supporting students aiming to be welfare

We make donations to the Japanese Red Cross Society, an

caretakers, developing human resources engaging in nursing

organization that responds to disasters through a wide range

care and contributing to resolution of social issues related toof activities in Japan. In 2020, JPY6 million was donated. In

the advancement of an aging society, we have established the

addition to donations from the Company, those employees

Hulic Scholarship Program for Training of Welfare Caretakers

and executive officers electing to participate also donate ain 2017, under which we provide non-repayable scholarships.

fixed amount every month.

We aim to provide support to address the current status oflabor shortages at nursing care sites for the senior citizen-

Patients and Their Families

future growth businesses (3K businesses) (Koreisha (seniors),

Hulic Insurance Service is a member of the Aflac National

Kanko (tourism), and Kankyo (environment)) from the CSR

Association of Agencies, which is a network of medical and

List of Social Contribution Activities in 2019
● Sponsorship of Kodomono Tame

● Organized Wooden Architecture

no Shiba-Kikin charity concert forchildrenSymposium● Donated to Keidanren Nature

Conservation Fund
Social Welfare● Hulic Scholarship Program for trainingof welfare caretakers● Employee match gift program● Donated to Japanese Red Cross

Society● Donated used postal stamps● Donated to Akai Hane
● Supported orphans of cancer andchildhood cancer patients and theirfamilies● Supported Single-parent Households● Supported Kishikai Christmas Festival● Supported Nezu Foundation● Considered potential relocation of● Supported AgriFuture Japan

Shogi Hall

life insurance agencies. We donate to the Aflac Scholarship   We have doubled

Fund for Childhood Cancer Survivors and Children of Cancer

the number ofVictims and Aflac Parents Houses initiatives promoted by thescholarship students

association. In addition, in 2020 we began donating to the Gold

from 2020.

Ribbon Network, an NPO that supports children with cancer.

Practical training

Aflac Scholarship Fund for Childhood Cancer Survivors and● Supported agricultural engineers

Support of Culture and the Arts

Health, Medicine and Sports

Academic and Research Support

Donation of Used Postal Stamps for Support Activities● Organized the Hulic Cup Seirei● Support for Japan Para-Badminton● Organized an idea competition forin Developing Countries

Championships

Federation

students● Special sponsorship of the Hulic Cup

Kisei Championships● Special sponsorship of Minister of

Education, Culture, Sports, Scienceand Technology Cup Elementary
and Junior High School Shogi Team
Competition● Supported New National TheatreTokyo● Supported Kishikai Shogi Festival(Great East Japan earthquake
reconstruction support event)Connection with the Local Communities● Supported environmental studies at

Kyoto University● Opened onsite childcare nursery

facilities to local community members● Hosting Summer Festivals/Donated aportable shrine

Others● Sponsorship of Mainichi Shimbun inFukushima relief efforts

Education and Social Education● Donated to a scholarship program of● Donated to Ashinaga Scholarship● Subsidized the cost of employees’

Kyoto University

disaster recovery activities● Sponsorship of Kyoto Kensetsu Center

Organized Wooden Architecture Symposium 2019
Hulic makes wooden constructions as a business. In addition,

Theme

we held the Wooden Architecture Symposium 2019 withthe aim of raisingbuildings and helping

to losing their household’s main provider to cancer. Up to now,
more than 2,800 students have received scholarships, and the total

locations. We donate these stamps every year. We donate theseamount awarded exceeds 1.7 billion yen (as of June 30, 2019).

stamps every year. In April 2020, we donated approximately
1,500 grams of used stamps that we collected during the year

Aflac Parents Houses
These general support centers help reduce the economic andto the Japanese Organization for International Cooperation inemotional burden of pediatric patients and their families as they

Family Planning (JOICFP). Every year, we collect a large volume

take on childhood cancer and other serious diseases with long-of used stamps, and we sort them with the cooperation ofterm hospitalization or outpatient care at specialist hospitals inour sustainability supporters. It takes almost two hours. Afterurban areas.

converting the stamps into money, JOICFP applies it to activities

Gold Ribbon Networkthat they promote in developing

Gold Ribbon Network is a non-profit organization dedicatedcountries to protect the life andto three key areas: supporting children with cancer to raise

health of pregnant women andtheir quality of life; supporting research and development towomen in general.

increase the survival rate of children with cancer; and providing
information and promoting understanding of childhood cancer.

Panelists

Support for Single-parent Households

Fire Insurance Co., Ltd.)As part of our efforts to participate in social welfare

Tadao Kamei (President and CEO, Nikken Sekkei Ltd.)
Masahiro Miyashita (Chairman of the Board, Takenaka

activities to do our share in SDGs, we started to workwith Single Mothers Forum (SMF), an approved specified

Corporation)

Coordinator

Atsuko Fukushima (Journalist)

contribution activities.
Donated to the Keidanren Nature Conservation Fund

Sorting of used stamps by the sustainability supporters

nonprofit corporation from 2020. We plan to provide
single-parent households a joyful time with mums who

Donation to Community Chest of Tokyo Prefecture (Red

could usually be too busy working and may have little time

Feather Community Chest Movement)

for her children in everyday life. However, with the novel

Hulic makes regular donations to Community Chest of Tokyo

corona (COVID-19) pandemic spreading globally, instead of

Hulic values activities that seek to conserve nature andincluding some overseas. These projects work to conserve

Prefecture (Red Feather Community Chest Movement).The

providing enjoyable events to the single-parent households,

biodiversity. We have been donating to the Keidanren Nature

the natural environment in developing regions, mainly infunds raised are distributed to private social welfare facilities

we decided to support the activities of SMF in sending foods

Conservation Fund every year since 2012. The funds we donate

the Asia-Pacific area, as well as preserving Japan’s naturaland organizations in the region and used for financial

to families who have been suffering significant income

are used for projects by private non-profit organizations,environment and projects related to sustainability.

support for private social welfare projects.

reductions by donating JPY10 million to SMF.

Hulic Sustainability Book 2020

Hulic Sustainability Book 2020

External Evaluationas part of our social

opportunities for pursuing a higher education have narrowed due

stamps and has set up stamp collection boxes at Group company

Kengo Kuma (Architect・Professor at The University of Tokyo)
Shuzo Sumi (Senior Executive Advisor, Tokio Marine & Nichido

to reduce CO2 emissions
and protect forests

This scholarship program is for high school students whose

Keynote speech Kengo Kuma (Architect・Professor at The University of Tokyo)

awareness on thepossibilities of wooden

Future of cities made of wooden structures
Aiming to increase demands for timber in urban areas
Challenge of timber for medium- and high-rise buildings

The Hulic Group generates a large number of used postageChildren of Cancer Victims

Corporate Governance

Global Environment Protection

70

point of view.

Environmental Initiatives

Global Environment Protection

Support for Orphans of Cancer and Childhood Cancer

related business which we promote as one of our focused 3

Social Initiatives

Support of the Japan Business Federation’s One Percent Club Initiative
Hulic supports the One Percent Club initiative, a move advocated by KEIDANREN (Japan Business Federation). We are committing tospend at least one percent of Ordinary Income to social causes each year. The Club, as a sub-organization of KEIDANREN’s Committee
on Responsible Business Conduct & SDGs Promotion, provides information on social contribution activities to companies and coordinates
networking with NPOs and other organizations with the aim of enabling more effective social responsibility activities.

Social Welfare

Our Approach to Sustainability

Fundamental

71

Social Initiatives

Health, Medicine and Sports

Connection with the Local Communities

Organizing of the Hulic Cup Seirei Championships

Support for Kishikai Christmas Festival

Support for Japan Para-Badminton Federation

Making the Company's Nursery Facilities available toIn December 2018, Hulic established a new championshipWe sponsor the Kishikai Christmas Festival to spread theAs part of our social contribution activities, we have

Local Community

to support female professional shogi players and further

popularity of shogi and contribute to the growth of Japanese

concluded an Official Gold Partner Agreement with the

Hulic has established onsite nursery facility inside the headpromote their prosperity. It had been eight years since a new

culture. In 2019, it was held at our Asakusabashi Hulic Hall,

Japan Para-Badminton Federation and have provided

office, and has made it partially available to local residents

female championship had been established (the last timeand over 200 people participated.

support for para-badminton since 2016. For the purpose

in an effort to contribute to reducing the number of children

was 2011), and this brought the number of championshipsof supporting the stable operations of the federation,

waiting to get into childcare nursery facilities. For details,

to seven, further closing the gap with men’s championships,

since September 2017, we have lent the gym of Nishi Kasai

please see the following linked page.

of which there are eight. The preliminaries were set up on

Center Building owned by Hulic (Hulic Nishikasai Gym) toa system of six wins, with two losses to be out. Because

the federation at no charge as a practice gym dedicated forplayers got to stay in until they lost two games, it createdplayers from the Japan Para-Badminton Federation. We havemore matches. The preliminaries for the first Hulic Cup

Establishment of Hulic’s Onsite Childcare Nursery Facility
https://www.hulic.co.jp/en/sustainability/social/employee/balance.html#anc2

conducted improvement work such as installation of slopes
and plumbing so that the players can use the gym more

Hosting Summer Festivals and Donating of a Portable

to September, five rounds were held and the first champion

Special Sponsorship of the Hulic Cup Kisei

comfortably.

Shrinewas born.

Championships   We have also been sponsoring the HULIC DAIHATSU

In October 2012, the head office of Hulic was moved toSince April 2018, Hulic has been a special sponsor ofJapan Para-Badminton International every year since 2017.

Nihonbashiodenma-cho. As part of our efforts to introduce

the Kisei Championships (organized by the Japan Shogi

In addition, we have set up our billboard ads showing para-ourselves to the community, we held the Hulic Odenma

Association and Sankei Shimbun Co., Ltd.) The Kisei

badminton players, mainly in Tokyo subway stations. Going

Summer Festival at our head office building in July 2013. The

Championship is an official championship with a history,

forward, we will continue to promote respect for human

event was very well-received, so we decided to continue itestablished in 1962. Players compete for the title of “kisei.”rights and diversity as well as increase support for people

and held it for the seventh time in July 2019. The Odenma-

with disabilities and the activities of para-badminton players.

cho Ninobu Neighborhood Association cooperated with us
living in the area to office workers from nearby buildings.
We hope that activities such as this will lead to deeper bonds
between local residents. The approx. 170,000 yen raised at
the festival was added to the 10th matching gift program,

The moment of victory of the first Seirei Champion at the third game of five-and the gift money was provided to a volunteer organization.

game matches

Moreover, as part of our community contribution activities,
we donated a portable shrine to the Odenma-cho Ninobu

Special Sponsorship of Minister of Education, Culture,

Neighborhood Association to which we belong in May 2017.

Sports, Science and Technology Cup Elementary andJunior High School Shogi Team Competition

Environmental Initiatives

on the day of the event, and many people came, from children

Social Initiatives

2019 Christmas Festival

Seirei Championships began in January 2019. From AugustWEB

Our Approach to Sustainability

Support of Culture and the Arts

We hope that carrying this portable shrine at the festival willlead to further revitalization and prosperity in the area.

A match of Hulic cup Kisei championshipof Education, Culture, Sports, Science and Technology Cup

Support for Kishikai Shogi Festival (Great East Japan

Elementary and Junior High School Shogi Team Competition

Earthquake Reconstruction Support Event)(organized by the Japan Shogi Association and Sankei

We sponsor the Kishikai Shogi Festival as part of our support

Shimbun Co., Ltd.). This competition is for teams of three

for reconstruction efforts related to the Great East Japan

students belonging to the same elementary or junior highEarthquake and shogi culture.

school, and the trophy and letter of commendation presented   In 2019, we sponsored the Kishikai Shogi Festival into the winning team by the Minister of Education, Culture,

Miyagi and the Kishikai Shogi Festival in Ibaraki.

Corporate Governance

Since 2017, Hulic has been a special sponsor of the Minister
HULIC DAIHATSU Japan Para-Badminton International tournament in November 2019

Education and Social Education
Guest Participation in the Kyoto Architectural School

Technology give

for Scholarship Program of Kyoto University

The Kyoto Architectural School started in 2009. It is an

the competition

Building that Hulic is to commence redevelopment

We have been providing assistance for Environmental Studies

inter-college studio of urban and architectural design.

significant prestige.

In 2019, Japan Shogi Association announced that it started

at Kyoto University and made a donation to a scholarship

Volunteer teachers and students, mainly from universities

examining the potential relocation of Shogi Hall where Shogi

program for students.

and vocational schools in Kyoto, and also from Osaka andleagues and matches are held to new Hulic’s Sendagaya   We support development of the next generation

Hyogo participate in teams to work on joint exercises on theCenter Building which will be redeveloped by the Company.

through the donation totheme of urban design. Hulic has participated several times

The Sendagaya area is known as the center of Shogi culture.

a scholarship program

since 2013 in study meetings held in Kyoto. As a real estate

We plan to look into rebuilding plans in cooperation withfor students of Kyoto

company, we provide advice to students etc., and conduct

Shibuya Ward and Japan Shogi Association as a part of

University as well as

joint research.

contribution to develop the Sendagaya area.

supporting environmental

External Evaluation

Assistance for Research at Kyoto University and Support
Potential Relocation of Shogi Hall to Sendagaya CenterSports, Science andprotection throughassisting research at Kyoto
University.
72

Hulic Sustainability Book 2020

The site observation
conducted as part ofassistance for research in February 2018
Hulic Sustainability Book 202073

Social Initiatives

Supporting Employees to Participate in Social Contribution Activities
To fulfill our social responsibilities, we work to resolve social challenges

Support for AgriFuture Japan
Hulic views the promotion of sustainable agriculture as one

since 2014 we have been supporting AgriFuture Japan, anof our most important ESG-related management issues, soorganization that helps develop the next generation of

we are promoting an agri-business project. In this project,

farmers, as part of our social contribution.

Academic and Research Support

Fundamental
Approachand make contribution to the sustainable development of society. Further,
we strongly support each employee to participate in social contribution
activities.

Social contribution by employees

Our Approach to Sustainability

Education and Social Education

Holding the Seventh Hulic Student Idea Competition on
the Theme of Ikebukuro Gateway
We planned this competition as a real estate company withthe aim of providing students with opportunities to propose● Matching gift program● Support activities in disaster-struck areas● Satoyama conservation activities● Monthly community cleanup activities● Donation to the Tokyo branch of Japanese Red Cross Society

urban development and construction ideas. The seventhSocial Initiatives

Student Ideas Competition held in 2019 included the themeof a public-private partnership project set in Ikebukurothat we are currently working on. In recent years, this area

Matching Gift

has been transformed into one of the trendiest areas in

Matching Gift Program

received 196 student entries. At the second open screening,

Launching the match gift program in June 2008, we

the main fields under Hulic’s policy for social contribution.

established the Hulic Fureai Fund, which deducts 100 yen

The Company matches donations with an equal amount.

every month from the salary of employees who want to take

Hulic, Hulic Insurance Service, Hulic Building Management,

part in the program (300 yen for executive officers). The

Hulic Reit Management, Hulic Proserve and Hulic Private Reit

grand prize, three winners of excellence awards, and six

money collected is then donated to organizations selected by

Management, have worked together on this activity. We will

winners of honorable mention awards were selected.

majority vote of all employees that are involved in activities

continue the donation activities, providing opportunities ofrelated to local environment protection, coexistence withsocial contribution to employees who cannot make the first

local communities, and responses to social needs. These are

step despite being interested in it.

students enthusiastically presented their ideas, which was
followed by a question and answer session with judges.
After consultations among the judges, one winner of the

A poster of the event, calling

2nd open screening

for entries

OthersSponsorship to Support Mainichi Shimbun in Fukushima

The 11th Donation to the NPO Japan Committee, Vaccines for the World’s Children

Relief Efforts
In March 2019, we sponsored the fourth Ganbappe,

Hulic donated JPY1.5 million to an NPO called Japan Committee, Vaccines for the World’s Children (JCV) in 2019. JCV
works with UNICEF to deliver vaccines to children in places where up to 4,000 children die per day due to a lack ofvaccines. In the 25 years since it began, JCV has halved the number of children who lose their lives to infectious diseases
that can be prevented through vaccinations, in this way helping to protect the future of the world’s children.

Fukushima! event organized by The Mainichi Newspapers
Co., Ltd. and Mushu Co., Ltd. and held at Belle Salle Tokyo
Nihonbashi as an activity to support reconstruction efforts
Earthquake. On the day of the event, around 650 people

Past Donations

from supporting companies pledged to ensure Fukushima’s

The 1 st Donation (2009): W WF Japan 800,000 yen in total

reconstruction.

The 2nd Donation (2010): A laddin Caregiver Support Network Center 620,000 yen   The 2020 event was canceled due to the novel

in totalcoronavirus (COVID-19) pandemic, so we donated a matching
Prefecture instead.

Corporate Governancein Fukushima, which was struck by the Great East Japanamount of the sponsorship fee directly to Fukushima

Environmental Initiatives

Tokyo through the intermingling of interesting cultures. We

The 3rd Donation (2011): D octors of the World Japan (MEDECINS DU MONDE
Photograph courtesy of the Mainichi
Newspapers

JAPON) 620,000 yen in total
The 4th Donation (2012): N onprofit Organization Kokkyo naki Kodomotachi (KnK)
800,000 yen in total
The 5th Donation (2013): Florence 1,000,000 yen in total

Donation to Ashinaga Scholarship Society
following the Great East Japan Earthquake.

to the Ashinaga Scholarship Society from June 2011 to May   Since the outset, JPY64,991,500 in total has been

2019, and a certain amount of money has also been donateddonated by the Company and individuals as of May 2019.

every month to this Scholarship Society from the Company's

In order to provide wider support for domestic disaster,

directors and employees who wish to participate in thiswe changed the donation destination from the Ashinaga

initiative in an effort to provide continuous support for

Scholarship Society to the Tokyo branch of Japanese Red

the living and schooling of the children who will forge the

Cross Society in August 2019.

The 6th Donation (2014): Kid's Door 1,200,000 yen in total
The 7th Donation (2015): Civic Force 1,300,000 yen in total
The 8th Donation (2016): NPO After School 1,200,000 yen in total

External Evaluation

The Hulic Group made a monthly donation of 500,000 yen

The 9th Donation (2017): NPO Second Harvest Japan 1,300,000 yen in total
The 10th Donation (2018): OISCA, nonprofit incorporated association JPY1.4 million, in total

future of this country by supporting children left as orphans

74

Hulic Sustainability Book 2020

Hulic Sustainability Book 202075

Social Initiatives

Initiatives for Shareholders and Investors
We strive to ensure appropriate and timely disclosure of information, andPaid Leave for Employees Involved in Volunteer Activities
The Hulic Group has established paid leave for employees

Fundamental

actively conduct briefing sessions on financial results as well as investor

Approachmeetings for individual investors. These represent our efforts to achieve

involved in volunteer activities, in order to support and nurture

diverse forms of mutual communication.

their efforts to give back to the community and help to foster
an attitude of wanting to address issues facing society. The【Results in FY2019】N umber of information sessions for personal investors held: 11 times

volunteer paid leave program is designed to support employees(including sessions for sales personnel of securities companies, IR fairs, and events)

who participate in social contribution activities. Employees

Our Approach to Sustainability

Support activities in disaster-struck areas／Satoyama conservation activities

are eligible to take up to 20 consecutive days of special paid
leave (employees who take part in volunteer activities indisaster-hit areas can take paid leave more than once within 20

Summary of Satoyama Conservation Activities

days) under the volunteer paid leave program to take part in

Objective

philanthropic activities that give back to society. To encourage
not only information on social contribution activities, but also
raise awareness about such activities among employees bydisseminating the volunteer experiences of employees with

Summary

the entire Company through our intranet system. In 2019 we
continued satoyama conservation activities, which we haveconducted annually since 2009 as a participatory volunteer
activity involving our employees, and a total of 33 employees
and their family members from Hulic, Hulic Insurance Service,

Date

September 26, 2019

Number of
33
participantsWEB

Outside Evaluation of IR Activities

We regard returning profits appropriately to our shareholders

Hulic's website discloses timely and detailed information

as a management issues and adopt a basic policy to continue

on our various activities. In 2019, our website was selected

providing the stable payment of dividends as based on theas the excellent website in overall ranking in Nikko IR's All

trends of our business performance. The dividends have

Listed Company Website Ranking 2019. In addition, ourcontinued to increase every fiscal year so far.

website won the bronze prize in Gómez IR's Site Ranking,

To thank our shareholders for their continued support,

and won the Commendation Award in Internet IR Award

we annually present a gift of gourmet catalog equivalent

2019 by Daiwa Investor Relations Co., Ltd.

to 3,000 yen to shareholders with 300 shares or more.
Furthermore, we have been sending out catalogs gifts (worth
6,000 yen in all, 2 items choiceable) to shareholders holding
more than 300 shares for more than three consecutive years.

Satoyama Conservation Activities by its Employees
https://www.hulic.co.jp/en/sustainability/ecology/management/
education.html

Enhancement of Various IR Tools

Stipend Program for Disaster Recovery Volunteers
The Hulic Group has established a framework for subsidizing

and will increase interest in the area. Going forward, we will

In addition to correspondences to shareholders issued

up to 60,000 yen of the cost of employees’ volunteer

continue to promote to all employees through our intranet

semiannually, we transmit the latest topics through theactivities to support reconstruction in disaster-stricken areas

information on volunteer activities. This information includes

IR page on our website in a timely manner. E-mails arefollowing the Great East Japan Earthquake. One person was

the results of volunteer activities as well as the thoughts

also sent to allow shareholders to receive more timely

subsidized in FY2019, while 25 have received assistanceof the participants, the situation on the ground, andsince 2011. We hope that this system will be a catalyst for

information on reconstruction support tours.

greater understanding of conditions in the disaster zone

Related links
WEB

Dividend Payments and Payout Ratio
https://www.hulic.co.jp/en/ir/stock/dividend.html

information. Every time news about Hulic is released, we
inform registrants by E-mail. (Registration is available
on our website.) In the financial results briefing session,

Information Disclosure Policy

Community Cleanup Activities/Flowerbed Maintenance Activities

understand explanations by using
image materials produced withOn the basis of the disclosure policy, we are aiming at fair,

PowerPoint. On the website,

The four companies in the Hulic Group, Hulic, Hulic Building

around our head office with the aim of creating a clean andtimely and accurate information disclosure benefitting

materials for briefing sessions (inManagement, Hulic Proserve, and Hulic Property Solution

comfortable environment. Through these activities, we areshareholders and investors to make a decision on investment.

Japanese and English) and videos

participate in the Machikado (street corner) Clean Day

also promoting communication between local people andIn compliance with relevant laws and regulations, weare distributed.

project run by Chuo Ward, where our headquarters is

employees.

proactively disclose management strategies and financial

located. Once a month in early morning-time, we clean up

data, etc. in order to have them understand our businessactivities. Information, to which the rules of timely disclosureand relevant laws and regulations, etc. are inapplicable, butwhich are considered helpful for investment decisions, isRelated links
WEB

Financial Highlights
https://www.hulic.co.jp/en/ir/finance/
Integrated Reporthttps://www.hulic.co.jp/en/ir/library/annual/
Investor Presentation
https://www.hulic.co.jp/en/ir/library/presentation/
IR Libraryhttps://www.hulic.co.jp/en/ir/library/

Financial Results
https://www.hulic.co.jp/en/ir/library/tanshin/76

Hulic Sustainability Book 2020

Hulic Sustainability Book 2020

External Evaluation

disclosed promptly through the Company's website, etc.

Corporate Governance

we make efforts for easy-to-Monthly community cleanup activities

Environmental Initiatives

Hulic Building Management, Hulic Reit Management and Hulic
Proserve have participated in this activity.

The company participates in the Tokyo Greenship Action
hosted by the Bureau of Environment, Tokyo Metropolitan
Government, every year, and engages in various
volunteering activities in Yokosawairi in Akiruno City suchas the rice harvesting experience, trimming of shrubs andweeds in the skirts of a mountain under the supervision of
the NPO called “Yokozawairi tanbo no kai.”

Dividend Policy

Social Initiatives

employees to use the volunteer paid leave program, we provide

As Hulic holds many properties in Tokyo, we came up with
the idea to protect the precious natural environment leftin Tokyo and participated in the Satoyama Conservation
Activities.

77

Social Initiatives

Our Approach to Sustainability

Approaches at General Shareholders' Meetings
The 90th ordinary general meeting of shareholders was held

business activities in an easy-to-understand way, using imageat Hulic Head Office on March 24, 2019 with attendancematerials, etc. The childcare nursery in the Head Officeof a lot of shareholders. In an effort to enliven the general

was opened to shareholders in order to enable those withmeeting of shareholders, invitations to the meeting werechildren to take part in the meeting without worry. We will

sent out early, and we set up an electromagnetic voting

strive to have shareholders more understand Hulic throughmethod. In this meeting, we tried to explain about ourcommunication with them.

Briefing Session for Private Investors
We are proactively working on IR activities to make ourselves

Brief Sessions for Organizational
Investors and Analysts
Briefing sessions on financial results (at the end of the 2nd

in seminars and fairs, etc. for individual investors toquarter and fiscal year) are held semiannually by Hulic's

create opportunities for more individual investors to learn

top management mainly for institutional investors. We also

about us. We will promote IR activities that provide us

conduct many One on One Meetings in Japan, throughwith opportunities towhich we visit individual institutional investors to explain

communicate directly

Hulic's business activities. Furthermore, we have proactively

with individual investors.

rolled out IR activities overseas, visiting institutional investors

Social Initiatives

better understood by individual investors. We participate

in Europe, the U.S., andAsia, etc. Through these
activities, we endeavor toEnvironmental Initiatives

foster a deep understandingof Hulic among institutional
investors.

This page is intentionally left blank.
The corporate governance initiatives start from the next page.

Selected as Indices on ESG Efforts
Hulic has continuously been selected in three indices in FY2020 as a company who took excellent initiatives on environment,social and governance (ESG). The Government Pension Investment Fund (GPIF) uses these three indices as benchmarks of ESG
investments.

Corporate Governance

Disclaimer: T he inclusion of Hulic Co., Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship,endorsement or promotion of Hulic Co., Ltd. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names andlogos are trademarks or service marks of MSCI or its affiliates.

External Evaluation

78

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79

Hulic works to strengthen corporate governance withthe aim of improving the transparency and efficiency ofContent of the Company's Institutions

Corporate Governance

Audit &
Supervisory
Board

Hulic is a company with an Audit & Supervisory Board, which includes five Audit & Supervisory Board members (two are
full-time auditors and three are External Auditors, following the Companies Act and Ordinance for Enforcement of theCompanies Act).
In audit conducted by the Audit & Supervisory Board members, auditors monitor the operations of the internal control
system and the status of its implementation through audit of the execution of duties by directors, managing officers andeach division in accordance with the audit basic policy and the audit basic plan formulated by the Audit & Supervisory
Board. These audits include attending the Board of Directors meetings as well as other meetings and committees whenrequired, interviews on the execution of duties by directors and managing officers, and reviewing important documents,
approval documents and accounting records, etc. The Audit & Supervisory Board Office has been established to support
the duties of the Auditor & Supervisory Board members.

The Group considers that it is a critically important management matter to build a
Fundamental

corporate governance system with fully functioning risk management, compliance,

Approachinternal controls and disclosure control. We intend to faithfully execute business andfulfill accountability to our stakeholders.

【Results in FY2019】●Participation rate in the Board of Directors' Meeting: 99%●Number of internal audits conducted: 10 times ●Number of compliance training sessions: 5 times●Number of Risk Management Committee meetings: 4 times ●Number of Fund and ALM Committee
meetings: 13 times ●Number of BCP drills and inspections of stockpiled food and goods: 1 time

Corporate Governance Guidelines
We adopted "Corporate Governance Guidelines" as

Corporate Governance Guidelines
https://www.hulic.co.jp/en/sustainability/governance/pdf/cgg.pdf

corporate governance system.

Management
Advisory
Committee

Corporate Governance Mechanism

The Management Advisory Committee has four or more committee members appointed by the Company’s Board of
Directors from among legal professionals, public accountants, academics, and business professionals who are not from
the Mizuho Financial Group or the Company’s specified shareholders.* The Management Advisory Committee has
established a system for providing advice and recommendations on overall management practices, such as checking theissues discussed and reported at the Board of Directors meetings, to further secure the independence of the Company
and ensure that the interests of the Company’s stakeholders are protected.
*Specified shareholders refer to the top ten largest shareholders.

Fundamental Approach to Corporate Governancecontrols.

stakeholders, including shareholders, and makes a point of   In addition, the Group has set the Basic Policy forcarrying out transparent and sincere corporate management.

Corporate Governance so that we meet social demands

We adhere to an autonomous governance system led by thethrough prompt and resolute decision-making from medium-

Board of Directors with fully functioning internal controls,

and long-term perspectives, with the overall goals ofrisk management, as well as compliance and disclosure

improving corporate value and social relevance.

Nominating
Committee

The Nominating Committee, consists solely of independent external directors, deliberates on the appointment ofcandidates for director and the Audit & Supervisory Board membership.

Remuneration
Committee

Specific amounts for the remuneration of directors are deliberated on and determined by the Remuneration Committee,
which consists solely of independent external directors, within the limits of the amounts approved at the General
Meeting of Shareholders.

Accounting
Auditor

The Company has an audit contract with Ernst & Young ShinNihon LLC to conduct audits.

Corporate Governance

The Hulic Group understands the responsibilities towards all

Overview of Corporate Governance System and Reason for Adopting Current System
The corporate governance structure of the Company includes

adopting the managing officer system, appointing externalbodies such as the Board of Directors, Audit & Supervisory

officers, and establishing various committees have enabled

Board, Management Advisory Committee, Nominating

us to build a corporate governance system that is sound andCommittee, Remuneration Committee, Accounting Auditor,

highly efficient, as well as one that has an optimal structure.

Environmental Initiatives

principles to promote the effective functioning of ourWEB

Social Initiatives

Board ofDirectors

The Board of Directors ("The Board") consists of 10 members (four are external directors) who resolve issues specified inlaws and the Articles of Incorporation as well as important matters related to business execution based on the Board of
Directors Rules. The Board also oversees the overall execution of duties by directors and managing officers.
The Board holds regular meetings (once a month, in principle), and special meetings of the Board of Directors areheld when necessary. The Company is strengthening the oversight role of the Board on overall business execution bydirectors and managing officers to ensure sound management, such as by adopting the managing officer system. The
managing officers are appointed by the Board and are responsible for business execution. In addition, the Company
believes effective corporate governance is ensured by reinforcing the structure of the internal audit function and byimproving the internal control system. The Company’s Articles of Incorporation stipulate that the Board should consist of
no more than 12 members in order to facilitate its functioning.

management and continue to be trusted by society.

Our Approach to Sustainability

Corporate
Governanceand the internal control system. The Company believes that

External Evaluation

80

Hulic Sustainability Book 2020

Hulic Sustainability Book 202081

Corporate GovernanceNominating Committee and Remuneration Committee

General Meeting of Shareholders

Nominating Committee
Management
Advisory Committee

Appointment

Appointment
Coordination & Collaboration
Audit

Recommendation/
AdviceRemuneration Committee

Deliberation/ Appointment
Decision

Audit &
Supervisory Board

Board of Directors

Accounting Auditor

Corporate Audit
Department

Coordination &Collaboration

Coordination &Accounting audit

Internal audit

President and Representative Director
Sustainability Committee

Real Estate
Planning and
AffiliatedBusiness Division Administration Division Companies

Risk Management

Internal control functions of head office and affiliated companies

Compliance Committee

Risk Management Committee
Fund ALM Committee
Operations management

Internal Controls

Business management
Internal controls over financial
reportingDisclosure Control

following the enactment of the Corporate Governance Code,previously a majority of the members at each committee

effected on June 1, 2015. All members of each committee

were independent external directors.

Disclosure Working Group

Remuneration Committee

The Nominating Committee serves the function of

The Remuneration Committee is appointed by thereporting to the Board on the nomination of officers,

Board, and deliberates and makes decisions on theand deliberates on the following matters:

matters outlined below. The committee began making

1.Selection of director and auditor candidates,

decisions in addition to deliberating on matters fromchanges to directors (promotion, etc.) and dismissals

2019 in order to further strengthen the governanceof directors

functions.

2.Other items concerning succession plans and1.Remuneration standards and other mattersmatters concerning the abovementioned items, as

pertaining to the remuneration of directors

deemed necessary by the Board

2.Matters concerning the remuneration of directors,

The committee consists of 3 members that are allas deemed necessary by the Board

independent external directors. In principle, theThe committee consists of 3 members that are allcommittee is held at a request of chairperson of the

independent external directors. In principle, thecommittee in December, once a year. In addition,committee is held at a request of chairperson of theother committee members can convene the committee

committee in December and March, twice a year. In

if deemed necessary.

addition, other committee members can convene thecommittee if deemed necessary

The Members of the Board of Directors, Audit & Supervisory Board and Committees
The Company's Board of Directors, Audit & Supervisory Board, Management Advisory Committee, Nominating Committee andRemuneration Committee include the following members:

Management Advisory Committee

As of April 1, 2020, there were 14 males and one female members. (The percentage of female officers was 6.7%.)

Name

Board ofDirectors

Audit &
Supervisory
Board

Management
Advisory
Committee

Nominating
Committee

Remuneration
Committee

Chairman, Representative Director

Saburo Nishiura

〇

-

-

-

-

President, Representative Director

Manabu Yoshidome

◎

-

-

-

-

Vice President, Representative Director

Hidehiro Shiga

〇

-

-

-

-

Director, Senior Executive Managing
Officer

Hajime Kobayashi

〇

-

-

-

-

Directors on all aspects of management, including mattersfive members (as of August 2020) selected from legal

discussed by the Board of Directors, in order to ensure

professionals, public accountants, academics, and businessthe independence of the Company and the interests ofprofessionals. The Management Advisory Committee

stakeholder are not damaged.

provides advice and recommendations to the Board of

Sustainability Committee
Hulic set up the Sustainability Committee, with, President,
Vice President, Senior Executive Managing Officers, andTakaya Maeda

〇

-

-

-

-

Director, Executive Managing Officer

Tadashi Nakajima

〇

-

-

-

-

External Director

Tsukasa Miyajima

〇

-

◎

◎

〇

External Director

Hideo Yamada

〇

-

〇

〇

◎

External Director

Atsuko Fukushima

〇

-

〇

-

〇

External Director

Kaoru Takahashi

〇

-

-

〇

-

Full-Time Audit & Supervisory Board
MemberShigeo Nakane

-

◎

-

-

-

Full-Time Audit & Supervisory Board
MemberTakuya Asai

-

〇

-

-

-

External Auditor

Koichi Nezu

-

〇

〇

-

-

External Auditor

Nobuyuki Kobayashi

-

〇

〇

-

-

External Auditor

Kenichi Sekiguchi

-

〇

-

-

-

related departments serving as members.

WEB

Sustainability Committee
https://www.hulic.co.jp/en/sustainability/about/philosophy.
html#anc9

External Evaluation

Director, Senior Executive Managing
Officer

Corporate Governance

Title

The Management Advisory Committee comprises ofEnvironmental Initiatives

Nominating Committee

Social Initiatives

Complianceto further strengthen the governance functions whereare independent external directors from 2019 in order

Audit & Supervisory
Collaboration
Board Office
ReportWe have established new “discretionary committees”

Our Approach to Sustainability

Diagram of Hulic’s Corporate Governance (as of April 1, 2020)

The chairpersons are indicated with ◎.

82

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Hulic Sustainability Book 2020

83

Our Approach to Sustainability

Policy for Determining Director Compensation, etc.
Compensation of directors consists of basic fixedby the Remuneration Committee within the limit approved

compensation, which is based on post and the weight ofat the General Meeting of Shareholders. Compensation of

responsibilities, and performance-linked compensation,

Audit & Supervisory Board members is determined throughwhich is linked to earnings performance of the Company

discussions at the Audit & Supervisory Board within theand contribution to earnings. A portion of performance-

limit approved at the General Meeting of Shareholders.

based compensation is allocated to a share-based payment

Compensation of external directors and external auditors

scheme designed to give incentives for performing duties,

solely consists of basic compensation (fixed amount) in thein order to achieve the sustainable growth of the Company

light of their roles and responsibilities. Details of director

and to enhance corporate value from shareholders’compensation are described in the “Corporate Governance

perspective. Compensation is discussed and determined

Guidelines” posted on our website.

Post
Directors(excluding External Directors)
Auditors(excluding External Auditors)
External Directors/Auditors

Total amount ofcompensation(JPY million)

Social Initiatives

Directors /Auditors’ Compensation(2019)

Total amount by type of compensation (JPY million)
Performance-linked variable Performance-linked variable
Fixed compensationcompensation (in stock)compensation (bonus)

Number of
directors/auditors

821

448

186

186

6

72

72

－

－

2

126

126

－

－

7

(Note) T he amount of stock compensation is provision to reserves for stock benefits posted as the portion for the current fiscal year, for performance-linked variable compensation system.

Environmental Initiatives

Assessment of the Effectiveness of the Board of Directors
The Board implements self-assessment once a year to· E nsure that the meetings are proceeded more efficiently

regularly ensure its effectiveness. The result of FY2019

by requesting materials that articulate discussion points,

assessment was concluded that corporate governanceand practice more extensive deliberation for important

was functioning effectively as the analysis and assessment

resolutions including medium- and long-term management

showed that 1) External Directors with diverse expertisepolicycomprise 40% of the total, 2) The Board is fostering a· Indicate a wide range of risks involved in business andfurther enhance the appropriate level of risk evaluation.

appropriate risk-taking and risk management in being carried· D eepen discussion on environment, social and governanceout.

(ESG) factors with a view to the Company’s role in relation   However, the following points were confirmed as

to achieving the SDGs.

Corporate Governanceculture in which directors can express their opinions, and 3)

This page is intentionally left blank.
The description of External Directors and External Auditors continues on the next page.

ongoing issues for the Board to work on.

Corporate Governance Report
The Company prepares and submits the Corporateof timely disclosure based on the regulations of the Tokyo

Governance Report (in Japanese only) outlining the status of

Stock Exchange.

corporate governance to the Tokyo Stock Exchange as part

External Evaluation

84

Hulic Sustainability Book 2020

Hulic Sustainability Book 202085Corporate Governance

External Directors and External Auditors
Directors, Auditors and Managing Officers (as of April 1, 2020)
External Director

External Director

April

1990 Keio University Faculty of Law, Professor and Doctor of Law

April

1985 Joined CHUBU-NIPPON BROADCASTING CO., LTD.

April

2003 Registered as a lawyer

April

1988 NHK contract presenter

April

2004 General Insurance Rating Organization of Japan, Director

October

1993 TBS contract presenter

June

2007 Meiji Yasuda Life Insurance Company, Councilor

April2005 TV Tokyo economics program regular presenter

July

2008 Hulic Co., Ltd., Management Advisory Committee Member (to date)April

2006 Shimane University, Management Council Member (to date)

7 Tsukasa Miyajima

9 Atsuko Fukushima

December 2006 Panasonic Corporation, Management Advisor

October2010 Japan Association of Private Law, Director

March

October2013 Japan Railway Construction, Transport and Technology Agency, Asset Disposal
Committee Chairman (to date)2012 Hulic Co., Ltd., External Director (to date)
Hulic Co., Ltd., Management Advisory Committee Member (to date)June

2015 Nagoya Railroad Co., Ltd., External Director (to date)
Calbee, Inc., External Director (to date)June

2014 Dai Nippon Printing Co., Ltd., External Director (to date)
MIKUNI CORPORATION, External Auditor (to date)

October

2017 The Resona Foundation for Future, Director (to date)June

2015 Mitsui Sumitomo Insurance Company, Limited, External Director (to date)March2020 Councilor of Forestry Policy Council, Ministry of Agriculture, Forestry and
Fisheries (to date)

October2015 Den-en Chofu Gakuen, Councilor (to date)April

2016 Keio University, Emeritus Professor (to date)
Asahi University, Professor of School of Law / Graduate School of Law (to date)June

2018 Daifuku Co., Ltd., External Auditor (to date)April

1979 Joined The Yasuda Fire & Marine Insurance Co., Ltd.

8 Hideo Yamada

April

2012 Sompo Japan Insurance Inc., Representative Director, Deputy President, andSenior Managing Executive Officer

April1984 Registered as a lawyer

April

May

1998 TAIYO CHEMICAL INDUSTRY CO., LTD., External Auditor (to date)2013 NIPPONKOA Insurance Co., Limited, Deputy President and Senior Managing
Executive Officer

⑨
⑤

⑥

⑭

⑬
⑫

⑪
②

①

⑮

③

④

June

2007 Ishii Food Co., Ltd., External Auditor
MIKUNI CORPORATION, External Auditor

July2008 Hulic Co., Ltd., Management Advisory Committee Member (to date)

September 2014 Sompo Japan Nipponkoa Insurance Inc.,
Representative Director, Deputy President, and Senior Managing Executive
Officer
April

2015 Sompo Japan Nipponkoa Himawari Life Insurance, Inc.
Representative Director, President and Chief Executive Officer

March 2009 Hulic Co., Ltd., External Director (to date)June

2015 Sompo Holdings, Inc., Director

March 2011 Seibu Lions, Inc., External Auditor

March2016 Hulic Co., Ltd., External Director (to date)

April

April

2018 Sompo Japan Nipponkoa Himawari Life Insurance, Inc., Director, Chairman
and Executive Officer

April2019 Sompo Holdings, Inc., Advisor (to date)2014 Daini Tokyo Bar Association, President
Japan Federation of Bar Association, Vice President

June2015 SATO HOLDINGS CORPORATION External Director (to date)
Akiko Tachibana Memorial Foundation, Chairman of the Board of Directors (to date)June

2016 MIKUNI CORPORATION, External Director (to date)Social Initiatives⑩⑦

 Kaoru Takahashi

External Director

March 2006 Lion Corporation, External Director⑧

External Director

Our Approach to Sustainability

March 2009 Hulic Co., Ltd., External Director (to date)

Audit & Supervisory Board Members
External Auditor, Audit & Supervisory Board Member

April1980 Joined The Fuji Bank, Limited

March

August2005 Mizuho Bank Ltd., General Manager of the Accounting DivisionDecember 1995 Established the Kobayashi Certified Public Accountants OfficeJuly2009 Senshu Shogi Co., Ltd., Auditor

March2005 Registered as a tax accountant

July2010 Joined Hulic Co., Ltd., Executive Managing Officer, General Manager of the
Accounting Department

April

2007 National Institute for Environmental Studies, Japan, Auditor

July2008 Hulic Co., Ltd., Management Advisory Committee Member (to date)March2009 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board Member (to date)April

2010 Nagoya University of Commerce & Business (graduate school), Professor (to date) Shigeo Nakane

Board of Directors
Representative Director, Chairman

１ Saburo Nishiura
April

1971 Joined The Fuji Bank, Limited

August 2000 The Fuji Bank, Limited, Managing Executive Officer, Head of Corporate Group andGeneral Manager of Corporate Development Division
April

2002 Mizuho Bank Ltd., Managing Executive Officer

April2004 Mizuho Bank, Deputy President

March 2006 Joined Hulic Co., Ltd., President, Representative Director and Chief Executive Officer
March 2016 Hulic Co., Ltd., Chairman, Representative Director (to date)

2 Manabu Yoshidome
April1977 Joined The Fuji Bank, Limited

April2005 Mizuho Bank Ltd., Executive Officer, General Manager of the Human Resources Division

March 2006 Mizuho Bank, Managing Executive Officer
April2009 Mizuho Bank, Deputy President

5 Takaya Maeda
April

October2007 Joined Hulic Co., Ltd. Deputy General Manager of Real Estate Development Department 2
June2008 Hulic Co., Ltd., General Manager of Real Estate Development Department 2

March 2009 Hulic Co., Ltd., Director (Managing Officer), General Manager of Real Estate
Development Department 2
October2010 Hulic Co., Ltd., Director (Managing Officer), General Manager of Business Planning
Department
April
April

2013 Hulic Co., Ltd., Director (Managing Officer), General Manager of Real Estate Planning
Department
2014 Hulic Co., Ltd., Director (Executive Managing Officer), General Manager of Real Estate
Planning Department

April

2019 Hulic Co., Ltd., Director (Executive Managing Officer), Executive General Manager ofReal Estate Development Department 1

April

2020 Hulic Co., Ltd., Director, Senior Executive Managing Officer (to date)

March 2016 Hulic Co., Ltd., President, Representative Director (to date)

6 Tadashi Nakajima

April1978 Joined The Fuji Bank, Limited

June

July

2000 The Fuji Bank, Limited, General Manager of Esaka Branch

March

2007 Joined Hulic Co., Ltd., General Manager of Compliance Department

April

2013 Hulic Co., Ltd., Managing Officer, General Manager of Legal and ComplianceDepartment

March2015 Hulic Co., Ltd., Senior Corporate Auditor, Full-Time Audit & Supervisory Board
Member (to date)

External Auditor, Audit & Supervisory Board Member

 Koichi Nezu

2006 Meiji Yasuda Life Insurance Company, Chairman of the Board and Executive Officer

July2013 Meiji Yasuda Life Insurance Company, Special Advisor (to date)May

2002 Nezu Museum, Chairman of the Board and Curator (to date)March2014 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board Member (to date)May

2003 Tobu Utsunomiya Department Store Co., Ltd., Chairman of the Board of Directors andPresident

October 2015 Kyushu Financial Group, Inc., External Auditor (to date)2006 Musashi Academy of the Nezu Foundation., Chairman of the Board of Directors (to
date)

April

2013 Nomura Real Estate Development Co., Ltd., Director, Senior Managing Executive
Officer, General Manager of Commercial Property Development & Management
Division

October 2007 Hulic Co., Ltd., External Auditor, Audit & Supervisory Board Member (to date)April

2014 Nomura Real Estate Development Co., Ltd., Representative Director, Senior Managing
Executive Officer, General Manager of Commercial Property Development &Management Division2017 Hulic Co., Ltd., Executive Managing Officer, General Manager of Value-add Business
Department, General Manager of Development Solution Department

April

1980 Joined The Fuji Bank, LimitedMay

2003 Mizuho Bank Ltd., General Manager of Hamamatsu Branch

January 2019 Hulic Co., Ltd., Executive Managing Officer

April2004 Mizuho Bank Ltd., General Manager of Gotanda Station Branch

March 2020 Hulic Co., Ltd., Director, Executive Managing Officer (to date)August 2006 Joined Hulic Co., Ltd., Managing Officer, General Manager of Corporate
Planning Department
April

2010 Hulic Co., Ltd., Executive Managing Officer, General Manager of Corporate
Planning Department

February2013 Hulic Co., Ltd., Senior Executive Managing Officer, General Manager ofCorporate Planning Department
March 2013 Hulic Co., Ltd., Director, Senior Executive Managing Officer, and General
Manager of Corporate Planning Department (to date)

Hulic Sustainability Book 20202008 Hulic Co., Ltd., Management Advisory Committee Member (to date)April

2013 Tobu Department Store Co., Ltd., Chairman of the Board of Directors
Tobu Utsunomiya Department Store Co., Ltd., Chairman of the Board of Directors

May2015 Tobu Department Store Co., Ltd., Chairman Emeritus (to date)2018 Okuhiei Sankei Driveway Co., Ltd., Director (to date)
Shinjuku Subnade Co., Ltd., Director (to date)2016 Nomura Real Estate Development Co., Ltd., Advisor

August 2016 Joined Hulic Co., Ltd., Executive Managing Officer, General Manager of Real Estate
Development Department 3
April

July

June

External Evaluation

April

4 Hajime Kobayashi

2002 Yasuda Life Direct General Insurance Company, Director and President
2004 Meiji Yasuda Life Insurance Company, Managing Director, General Manager of
New Market Sales Division

July

2012 Nomura Real Estate Development Co., Ltd., Director, Managing Executive Officer,
General Manager of Commercial Property Development & Management Division

April

April
January

2002 Kabushiki Kaisha Seiyoken, Director (to date)

June

Director, Senior Executive Managing Officer,
and General Manager of Corporate Planning Department

2001 Yasuda Mutual Life Insurance Company, Executive Director, Deputy Senior Manager
of Asset Management Division and General Manager of Operational Policy Division

April

April

2020 Hulic Co., Ltd., Representative Director and Vice President (to date)1972 Joined Yasuda Mutual Life Insurance Company

April

December 2005 Meiji Yasuda Life Insurance Company, Chairman of the Board

2012 Nomura Real Estate Holdings, Inc., Executive Officer

April

April

1999 Tobu Department Store, Representative Director and President

2012 Nomura Real Estate Development Co., Ltd., Director, Managing Executive Officer

2006 Hulic Co., Ltd., Representative Director (Senior Executive Managing Officer)

 Kenichi Sekiguchi

JanuaryMay

July

External Auditor, Audit & Supervisory Board Member

1975 Joined TOBU RAILWAY CO., LTD.

April

March 2006 Joined Hulic Co., Ltd., Senior Executive Managing Director, Representative Director,

2019 The Japanese Institute of Certified Public Accountants Tokyo Chapter, Deputy
Chairman (to date)November 1990 Tobu Department Store Co., Ltd., Representative Director and Senior Director

3 Hidehiro Shiga

1978 Joined The Fuji Bank, Limited2017 The Japan Institute for Labour Policy and Training, Auditor (to date)

October 2017 Tokyo District Court, Adviser (to date)1980 Joined Nomura Real Estate Development Co., Ltd.

January 2005 Mizuho Bank Ltd., General Manager of the Subsidiaries and Affiliates
Management Division

86

July

April

Representative Director, Vice President

October 2011 Japan Arts Council, Auditor (to date) Takuya Asai

April

Director, Executive Managing Officer

2015 Hulic Co., Ltd., Senior Corporate Auditor, Full-Time Audit & Supervisory Board
Member (to date)Senior Corporate Auditor, Full-Time Audit & Supervisory Board Member

January 2015 Hulic Co., Ltd., Director (Executive Managing Officer), General Manager of Real Estate
Development Department 1

March 2012 Joined Hulic Co., Ltd., Full-Time Audit & Supervisory Board Member
March 2015 Hulic Co., Ltd., Representative Director and Executive Vice President

March1984 Joined Taisei Corporation

1991 Registered as a certified public accountant

Managing Officers
Senior Executive
Managing Officer

Yasuki Yakabi

Executive Managing
OfficerManaging
Officer

Corporate Governance

Representative Director, President

Director, Senior Executive Managing Officer

 Nobuyuki Kobayashi

Environmental Initiatives

Senior Corporate Auditor, Full-Time Audit & Supervisory Board Member

Hiroshi Kitano

Taichi Nakamura

Nobuyoshi Tanaka

Kazuhiro Noguchi Kazuteru Miyayama

Noritaka Takahashi

Yoshito Nishikawa

Yasushi Umeda

Hiroshi Hara

Shin Ito

Yoshikazu Nagatsuka

Mikio Morikawa

Ken Ohta

Hulic Sustainability Book 202087Corporate Governance

Board members meet the criteria in the guidelines on the

Auditors. The External Directors and External Auditors

independence of independent executive officer(s) set out

The Company enhances the effectiveness and efficiency of audits through mutual cooperation and regular exchange ofcomment appropriately at the meetings of the Board of

in Article 436-2 of the Securities Listing Regulations of theinformation among the Audit & Supervisory Board members, the Accounting Auditor, and the Corporate Audit Department.

Directors from a position that is independent from that ofTokyo Stock Exchange and the “Criteria for assessing thethe business and operations of the corporation and fulfill the

independence of independent external directors” in Hulic's

functions of oversight and checks on the management.

Corporate Governance Guidelines.

   External Directors and External Audit & Supervisory

The expertise and reasons for selection of the External Directors and External Audit & Supervisory Board Members are as follows.

Attendance at Board of Directors
meetings in FY2019

Occupation/affiliation, etc.

Reason for appointment

15 of 15 (100%)

Professor Emeritus of Keio University,
Lawyer, Professor of School of Law
and Graduate, School of Law of Asahi
University

It is expected that Mr. Miyajima leverages his extensive track record
and insight as a person of academic standing in the managementof the Group, and the Company believes that he appropriately
performs his duties as an External Director.

Tsukasa
Miyajima

Hideo
Yamada15 of 15 (100%)

15 of 15 (100%)

Kaoru
Takahashi

15 of 15 (100%)

Mr. Yamada has been active as a lawyer for years and has high views
as a legal expert as well as experience as an external director ofother companies, and the Company believes that he leverages thisexpertise in the management of the Group.

Journalist, Councillor of Forestry
Policy Council, Ministry of Agriculture,
Forestry and Fisheries

Ms. Fukushima has been active in the media industry for years and has
extensive experience, and as such, the Company believes she can reflect
her wide range of perspectives in areas including socio-economics,
environment, culture and diversity in the management of the Group.

Advisor, Sompo Holdings, Inc.

Mr. Takahashi has extensive experience and broad insight as the top
management of a major insurance company, and the Company believes
that he leverages this expertise in the management of the Group.

○○

Koichi Nezu

KenichiSekiguchi

15 of 15
(100%)

15 of 15
(100%)

15 of 15
(100%)

15 of 15
(100%)& Supervisory Board members, auditors monitor the

In addition, the Audit & Supervisory Board members receive

operations of the internal control system and the status

reports on the results of audits performed by the Corporateof its implementation through audit of the execution of

Audit Department and exchange information regularly toduties by directors, managing officers and each division inenhance the effectiveness and efficiency of audits by bothaccordance with the audit basic policy and the audit basic

the Audit & Supervisory Board members and Corporate Audit

plan formulated by the Audit & Supervisory Board. These

Department, which performs internal audits.

audits consist of attendance at the Board meetings as well as

Note that Shigeo Nakane, Full-Time Audit & Supervisory Board
member, has served as Executive Managing Officer, General

the execution of duties by directors and managing officers,

Manager of the Accounting Department, and that Nobuyuki○

and reviewing important documents, approval documents

Kobayashi, External Audit & Supervisory Board Member, isand accounting documents, etc. In addition, the Board

registered as a certified public accountant. Both members○

responds promptly to any wrongdoing identified as well as

have considerable knowledge of finance and accounting.

Reason for appointment

Independent
Director

Name of Accounting Auditor
Ernst & Young ShinNihon LLC

Mr. Nezu has a wealth of business management experience andbroad insight into management in general through his managementof a major department store, and as such, the Company expects him
to be able to audit its management objectively and from a neutral
position as an External Auditor and Audit & Supervisory Board
member.

○Director of Kobayashi Certified Public
Accountants Office

Mr. Kobayashi has specialized knowledge in accounting and taxation
as a certified public accountant and tax accountant, and as such,
the Company expects him to be able to audit its management
objectively and from a neutral position as an External Auditor and
Audit & Supervisory Board member.

○Special Advisor of Meiji Yasuda Life
Insurance Company

Over the years, Mr. Sekiguchi has accumulated extensive business
management experience and broad insight as chairman, and as such,
the Company expects that he will be able to audit its management
objectively and from a neutral position.

Chairman Emeritus of Tobu
Department Store Co., Ltd., Board
Chairman and Curator of Nezu
Museum○The Company enters into an agreement with the Accounting

Company’s Articles of Incorporation. The maximum amount

Auditor that limits liability for damages resulting fromof liability under the agreement is the higher of an amountthe neglect of duties based on Article 427, Paragraph 1

predetermined by the Company and the amount stipulatedof the Companies Act and Article 41, Paragraph 2 of theby law.

Policy and Reason for Selecting the Accounting Auditor
When it is necessary to select a certified public accountant

The Accounting Auditor will be dismissed based on

to perform audits, the Audit & Supervisory Board examines

agreement among all Audit & Supervisory Board members

and confirms the following items through interviews andwhen they have judged that there is a reason for dismissal asquestions with the certified public accountant and anprovided for in Article 340, Paragraph 1 of the Companies

exchange of opinions with business execution divisions

Act. In addition, if the Audit & Supervisory Board determines

before making a comprehensive judgment.

that it is not appropriate for the Accounting Auditor, due to· Status of quality control

such reasons as violation of the Certified Public Accountants· Independence

Act, the Audit & Supervisory Board will determine the· Expertise

content of the proposal for dismissal or non-reappointment· Appropriate member configurationof the Accounting Auditor, and based on that decision, the· Audit plan considering risk

Board of Directors will submit the proposal at the general· Appropriateness of audit fees

meeting of shareholders.

Hulic Sustainability Book 2020

External Evaluation

Hulic Sustainability Book 2020

13 of 15
(86%)

Occupation/affiliation, etc.

established to support the duties of Audit & Supervisory
Board members.

Corporate GovernanceNobuyuki
Kobayashi

13 of 15
(86%)

Audit &
Supervisory Board

to the Companies Act and Ordinance for Enforcementof the Companies Act). In audit conducted by the Audit

Status of Accounting Audit

Attendance at meetings in FY2019
Board ofDirectors

member. The Audit & Supervisory Board Office has beenother meetings and committees when required, interviews onExternal Auditor and Audit & Supervisory Board members
Nameafter receiving a report from an Audit & Supervisory Board

full-time auditors and three are External Auditor pursuant

Environmental Initiatives

AtsukoFukushima

Lawyer of Yamada Ozaki Law Office

Independent
Director

deficiencies and issues pointed out by the Accounting Auditor

comprises five Audit & Supervisory Board members (two are

Social Initiatives

External Directors
Name

Status of Audits by the Audit & Supervisory Board Members
Hulic is a company with an Audit & Supervisory Board, which

Expertise of External Directors and External Audit & Supervisory Board Members

88

Auditing Mechanism

The Company has four External Directors and three External

Our Approach to Sustainability

Auditing Mechanism

Policy for the Selection of External Directors and External Auditors

89Corporate GovernanceInternal Control System

Evaluation of the Accounting Auditor by the Audit & Supervisory Board and Its Members
Audit & Supervisory Board, and handling of Group auditsof the Accounting Auditor from the perspectives ofand fraud risk, after receiving a report on the status of thequality control, independence of the audit team, exercise

audit quality from Ernst & Young ShinNihon LLC. As a result,of professional distance, appropriateness of audit fees,

it was deemed appropriate to reappoint Ernst & Young

The Board resolves matters concerning the basic design and operation of the internal control system specified in the provisions

effectiveness of communication with management and the

ShinNihon LLC as the Accounting Auditor.

of the Companies Act and the Ordinance for Enforcement of the Companies Act, as a system to ensure appropriate business

System to Ensure the Appropriateness of the Company’s Operations andOperational Status of the System

operations of the Company, and promoting sound management and business operations by enhancing internal controls.

Details of Audit Fees, etc.

System to Ensure the Appropriateness of the Company’s Operations

Compensation for Audit by a Certified Public Accountant, etc.
FY2018Category(JPY million, consolidated basis)

FY2019Compensation based on audit
and attestation services

Compensation based on
non-audit services

Compensation based on audit
and attestation services

Compensation based on
non-audit services

50

8

52

6

1

-

23

-

Total

52

8

76

6

(FY2018)
Non-audit services for which the Company paid compensation to the Accounting Auditor consist of work to prepare comfort⑦ Matters relating to the guarantee of the independence of theabovementioned employees from the directors and of the effectivenessof the orders given by the auditors⑧ System for having the directors, managing officers, as well as employees
of our company, and the directors, auditors, managing officers, as wellas employees of subsidiaries, or the persons receiving a report from anyof the abovementioned persons report to our Audit & Supervisory Boardand its members and other systems for reporting to auditors⑨ Matters relating to payment for auditors for executing their duties andother systems for ensuring that audits are effectively carried out by theauditors

Social Initiatives

Hulic
Consolidated subsidiaries① System for ensuring that the directors, managing officers, andemployees of our company and subsidiaries execute their duties while
they comply with laws and regulations, and the Articles of Incorporation② System for storing and managing the information related to the
execution of duties of our directors③ System for the rules, etc. that are related to the management of the riskof losses of our company and subsidiaries④ System for ensuring that the directors of our company and subsidiaries
effectively execute their duties⑤ System for reporting to our company about the execution of duties ofthe directors, etc. of subsidiaries⑥ Matters relating to the employees who are asked to support auditors'
duties by the auditors

Our Approach to Sustainability

The Audit & Supervisory Board performed an evaluation

letters related to issuing corporate bonds.
(FY2019)
Non-audit services for which the Company paid compensation to the Accounting Auditor consist of work to prepare comfort
letters related to issuing corporate bonds.

Operational Status of the System to Ensure the Appropriateness of
the Company’s Operations
The Company established an annual compliance program

Audit fees for the certified public accountant are determined

Reasons the Audit & Supervisory Board Gave
Consent to Remuneration of the Accounting Auditor

Initiatives for Ensuring Appropriate andEfficient Business Execution("the program") and confirms the status of progress throughIn addition to regular Board of Directors meetings held eachwith the consent of the Audit & Supervisory Board in

The Audit & Supervisory Board performs necessary checks

the Compliance Committee, which convenes four times

month, the Company also holds extraordinary Board ofaccordance with laws and regulations and in consideration ofregarding the details of the audit plan of the Accounting

a year. In the program, regular compliance training for

Directors meetings as required to ensure effective decision-

such factors as the size and characteristics of the Company

Auditor, the performance status of accounting audit duties andemployees and the distribution of compliance-related news

making and the oversight of business execution. We are also

and the number of days spent for the audit.

the basis for calculating remuneration estimates, and has given

ensure thorough compliance, including severing any ties

striving to ensure efficiency, for example by consolidatingconsent for the remuneration paid to the Accounting Auditor.

with anti-social forces. Compliance training is also separately

common operations in the Group to a shared service company.

Policy for Determining Audit Fees

Environmental Initiatives

Compliance Initiatives

provided for officers.

Initiatives to Ensure Appropriate GroupOperations

by the Board of Directors, and reports the findings to thewell as to protect the whistleblower. Reports are regularly

The Company’s subsidiaries apply for approval and makethe President and works independently from other businessPresident. The department also provides advice, guidance andmade to the Board of Directors concerning the status ofreports on important issues based on the Regulations for

activities, carries out internal audits of the Company andrecommendations for improvements to the audited departments

operations and reporting. Moreover, since FY2018, we added

Business Management of Affiliated Companies. Furthermore,

the Company’s affiliates. Specifically, the Corporate Audit

to help resolve issues. The President, who oversees the Corporate

an independent outside contact, as well as one female

the Corporate Audit Department conducts audits with

Department systematically conducts internal audits in

Audit Department, reports important matters related to the

manager as an internal contact, with the aim of improving

appropriate intervals and Business Planning and Management

internal audits regularly to the Board of Directors.

the effectiveness of the internal reporting system.

Department regularly provides guidance to the subsidiaries.

The Corporate Audit Department, which reports directly toaccordance with the internal audit basic plan, which is resolved   Companies that have recently become subsidiaries

Efforts to Manage the Risk of Losses

receive individual guidance on areas including risk

The Company’s Risk Management Committee convenes

management based on the Company regulations.

Corporate Governance

Hotline ensures prompt detection and resolution of issues as   In addition, the internal reporting system or Compliance

Status of Internal Audit

every quarter and conducts appropriate risk management

Initiatives to Ensure the Effectiveness of Audits
by the Audit & Supervisory Board Members

we review our Basic Plan for Business Continuity (BCP)The Company has an Audit & Supervisory Board, which

and the BCP Manual. In addition, in November 2019, wemeets once a month in principle, to make decisions on, makeconducted more practical BCP drill assuming a large-

reports, and discuss important issues related to auditing. In

scale earthquake to test our response in the event of anaddition, the Audit & Supervisory Board members ensure theemergency.

effectiveness of audits by attending various meetings andExternal Evaluationpredetermined monitoring items. As for BCP preparedness,in response to fluctuations in risk by assessing thereviewing the minutes of meetings.
   The Company established the Audit & Supervisory Board
Office as part of a system to respond promptly to requests
from the Audit & Supervisory Board members.

90

Hulic Sustainability Book 2020

Hulic Sustainability Book 202091Corporate GovernanceRisk Management

Approachto the Group's businesses including operational, market, liquidity, and credit risk,
among others.

【Results in FY2019】● Number of Risk Management Committee meetings: 4 times●Number of Fund and ALM Committee meetings: 13 times●Number of BCP drills: 1 time

●Number of inspections of stockpiled food and goods: 1 time

Risk Management Mechanism

Our Basic Plan for Business Continuity (BCP) defines the

emergency and restorative actions toframework and method for continuing important businessensure business continuity.

functions while minimizing damage to business assets in the   Further, a portable Disasterevent of an emergency, such as a metropolitan epicentral

Response Manual was prepared andearthquake. We have also created the BCP Manual outlining

distributed to all employees. This manual

specific execution plans and have thoroughly communicatedcontains information on preparedness

the contents of the manual to officers and employees.

for disasters, procedures for using

The BCP Manual outlines practical guidance on confirming

emergency messaging service andcustomer safety, responding to the injured, and confirming

safety confirmation system, as well as

employee safety based on the time that has elapsed since

a flowchart showing how to act when

Our Approach to Sustainability

Fundamental

Establishment of the Basic Plan for Business Continuity (BCP)

Pursuant to the Basic Rules of Risk Management, we manage various risks related

requiring them to submit accurate and pertinent reports

the disaster. The plan is to be implemented mainly by ana disaster occurs while commuting or

Company and its affiliates is one of its most importanton a regular basis. In addition, the Corporate Audit

emergency task force. The BCP Manual also describes

during holidays.

management challenges, and has set up a structure

Department conducts internal audits of all departments andwith the Board of Directors at the top while working tooperations including affiliates to provide assurance on the

Review and Improvement of the Basic Plan for Business Continuity Plan

make improvements. The department responsible for aappropriateness of risk management. As for risk stripes, weGiven Hulic's responsibility to ensure earthquake-resistantscale disasters including the Tokyo Metropolitan epicentral

particular risk stripe formulates risk management method,

review them and make additions when necessary in order tosafety of buildings, we have developed the Basic Plan forearthquake.

then appropriately monitor and control risk. The statusmanage evolving risks appropriately.

Business Continuity ("the plan"). By following the plan,   Also, we have developed highly effective plans for

we periodically carry out BCP drills to implement the PDCA

continuing in the real estate business by establishing cross-(plan-do-check-act) cycle for our business continuity system.

sectional cooperation with external organizations, such as

In addition, we review the plan periodically and actively

design companies, construction companies, management

prepare for company-wide recovery activities for large-

companies, as well as elevator companies.

of risk management is reported to the Risk Management
WEB

Committee and Fund ALM Committee regularly and as

Business-related Risks
https://www.hulic.co.jp/en/ir/strategy/risks.html

required by the department in charge

recommendations provided by

Deliberation/coordinationand decision/report on
risk management
Report/Recommendations

the departments in charge of risk

Risk Management
Committee

management, assess overall risks anddiscuss appropriate responses before
reporting to the Board of Directors. The
Board of Directors resolves important

ReportBoard ofDirectors
Chairman: President

Chairman: President
Secretariat: Business
Planning andManagement Department

upon receiving reports from thecompanies are implementing

Market risk

Fund ALM
Committee
Chairman: President
Secretariat: Finance
Department

appropriate risk management by

Credit risk
Overseas investment risk
Market risk
(interest rates, foreign exchange, securities)

Liquidity risk
Credit risk
(related to financial institutions)

BCP drill

Fire drill

An exhibit of emergency supplies

Improving the Earthquake Resistance Performance of Buildings
Hulic ensures that its new office buildings meet the highest

standards: 100% each year as one of KPIs and disclose theearthquake resistance standards by equipping them withresult. Additionally, for existing office buildings, we carryearthquake-absorbing and earthquake-damping structuresout seismic retrofitting to ensure full compliance with new

in order to protect lives and the operation of facilities

earthquake resistance standards, thereby ensuring the safety

in the event of a large-scale earthquake. We made theof occupants.

percentage of buildings meeting new earthquake resistanceBusiness Continuity Initiatives for Disasters

Corporate GovernanceWe also verify that our affiliatedOperational risk
System risk
Operational risk
Legal risk
Human resources risk
Tangible fixed assets risk
(real estate market conditions)matters related to risk management
Committees.

Management/reporting/recommendations related to risk
management conducted bydepartments in charge

Affiliated companies

regularly, examine the reports andResolution ofimportant mattersrelated to risk
management

Managed by Finance
Department
Verification

ALM Committee, which convene

Environmental Initiatives

Management Committee and Fund

Diagram of Risk Management Mechanism

Reportwith its recommendations. The Risk

Social Initiatives

Hulic recognizes that appropriately managing risks of theBusiness Continuity Approach for Disasters
Hulic is a real estate company that engages in development,

performance, and convenience. We have established various

reconstruction, and operation of office buildings andemergency and disaster scenarios for which we have createdrental apartments primarily in Tokyo 23 wards. We aremeasures to improve the structural performance of ourconstantly working to generate new added value by offeringbuildings as well as operational and management aspects.
External Evaluation

properties that are superior in terms of safety, environmental

92

Hulic Sustainability Book 2020

Hulic Sustainability Book 202093Corporate GovernanceCompliance
Hulic has established Basic Stance outlining its approach for achieving Corporate Philosophy

We are proactively carrying out measures to strengthen the business continuity capabilities of our core head office functions

and the Basic Principles of Corporate Conduct, which clarifies the Basic Stance. Additionally,

during an emergency. The following measures have been taken at the Hulic Head Office Building.

the Compliance Manual, which reflects changes in business environment and social

1. A
 dopts earthquake-absorbing and earthquake-damping structures that enable building functions to operate even during an

trends, stipulates actions that must be followed commonly in the Hulic Group in everyday

earthquake with a seismic intensity of seven
2. F eatures emergency generators that can operate continuously for up to

Fundamental
Approachsix daysbusiness execution. We understand that ensuring these actions are followed and practiced
represents Hulic's basic stance toward compliance, and we are promoting the activities to

3. S ecures food and drinking water to last more than seven days

educate all employees about the importance of complying with laws and regulations, social

4. U
 ses wireless equipment for communications between the management

ethics, and company rules.
Each and every employee will strive to fulfill the trust of every stakeholder and fulfill Hulic's

offices of other company-owned properties, etc.
For buildings where we are undertaking reconstruction (office buildings,

social responsibilities by complying with applicable laws and regulations, and company

commercial properties and hotels, etc.), we also stockpile water, set up

rules as well as engaging in business activities based on a high standard of ethics.

a drainage system, and install emergency back-up generators that can

Maintaining Functions during a Disaster

Emergency back-up generator【Results in FY2019】●Compliance trainings for all officers and employees

Number of trainings conducted: 5 times

Number of dissemination of compliance news: 12 times

Diagram of Hybrid Structure Model(Hulic Head Office Building)Compliance Promotion Mechanism
system that matches the Compliance Rules set by each

Company-wide system composed of the Board of Directors

company. Hulic receives applications and reports on a regularat the top, the Compliance Committee, the senior executive

basis and, as required, on the status of compliance at eachmanaging officer in charge of compliance, and compliancecompany, which improves our understanding of the situation

officers of each department. In addition, affiliated companies

and enables an appropriate response, when necessary.

under management by the Company are monitored and

There were neither internal compliance breaches nor violations

managed in a centralized way to build an effective complianceof laws, etc. or any fines imposed during FY2019.

Board of Directors

Compliance Program

The Board of Directors makes decisions on the issues discussed at theCompliance Committee and receives reports from the Committee regarding
important matters for compliance.

The Compliance Committee formulates a compliance program as animplementation plan to promote compliance, on a Company-wide basis.
The results of the program are reported to the Compliance Committee.
Moreover, affiliated companies create compliance programs in the samemanner and report progress and achievements to the Company.

Compliance Committee

Corporate Governance

Headed by the President, the Compliance Committee convenes four times a
year, in principle.
The Committee deliberates on important matters related to compliance,such as revisions to the Compliance Rules and the Compliance Manual,and formulation of a compliance program. The Committee also identifies
and makes decisions to improve compliance, including information
management.

Environmental Initiatives

In accordance with the Compliance Rules, we have built a

Social Initiatives

generate power continuously for three days.

Our Approach to Sustainability

Facilities and Stockpiles for Sustaining Business Operations

Compliance Promotion Framework

Hulic was the First in the Real Estate Industry to Receive the Highest Rating of DBJ BCM
the same time, Hulic received a favorable loan based on(highlighted above) was recognized with a DBJ BCM rating

this rating. This marks the first time that a company fromfrom the Development Bank of Japan. The decision for thethe real estate industry has received the highest rating fromrating, the highest from the Bank, praised Hulic for our

Development Bank of Japan.

External Evaluation

In November 2013, Hulic's business continuity frameworkdisaster prevention and business continuity programs. At
Quick Summary of the DBJ BCM Rating:
The DBJ BCM rating was established by the Development Bank of Japan (DBJ) and recognizes companies with particularly noteworthy business continuity
management (BCM). The rating is based on a comprehensive evaluation using tangible and intangible aspects of a company's BCM initiatives, including its ability
to quickly restore operations following a natural disaster.

*1 A
 ssigned to each department to promote compliance*2 Assigned to each department to assist the Compliance Officer

94

Hulic Sustainability Book 2020

Hulic Sustainability Book 202095

Corporate GovernancePursuant to Basic Principles of Corporate Conduct and Codeof Conduct, the Compliance Manual stipulates the following
items as rules for promoting compliance by all officers andemployees of the Group.
   In addition, we make sure that everyone understands
the Compliance Manual and actively puts the principles into
practice by providing compliance training and disseminatingcompliance-related informatoin.
   In FY2019, once again there were no violations ofapplicable laws and regulations, and our compliance rules inour business, services, transaction methods, and so on.

Compliance through Outsourcing Contractors① R espect human rights and prohibit
discrimination and harassment② Comply with laws and rules③ Conduct business in a faithful and fair manner④ M anage information appropriately⑤ A dhere to insider trading regulations⑥ Avoid involvement with anti-social forces⑦ B e considerate of environmental conservation⑧ M aintain and encourage the best communication possible⑨ R espect intellectual property rights⑩ P rohibit bribery, and rules concerning gifts and entertainments⑪ Ensure transparency and reasonableness of transactions

a comprehensive decision by carefully checking their

we have made fair trades based on “rules for real estate

past performance and their ability to execute operations,outsourcing management,” respecting relevant laws

the effectiveness of their business execution system andand regulations as well as instructions by administrative

the clarity of the procedures, the appropriateness of theorganizations.

operation management system, possible relationships with   When selecting an outsourcing contractor, we makeanti-social forces, and other items.

Initiatives for Fair Competition
We believe that trust in the Company is built up by trustthat constitute a conflict of interest, compliance withfrom every employee, and we require that everyone

arm’s length transaction principles, and the prohibition ofworks sincerely and in good faith. We realize that we

providing special interests to shareholders.

must strive to ensure the transparency and rationality of   In addition, thorough measures are taken to ensuretransactions to make sure they are appropriate and fair sofair trade and to prevent unfair competition by prohibiting

Our employees are encouraged to report directly to theharassments, etc. When a report is made, we investigate thethat no transaction harms the interests of the Company

any acts that acquire, use, or inappropriately disclose theinternal or external Compliance Hotline when they consider

facts and respond promptly while giving due considerationor shareholders, or provokes any concern. In particular,

trade secrets of others, or acts that undermine trust in theit unlikely that appropriate corrective actions will beto the privacy of the reporter.

the Compliance Manual specifies the prohibition of actsbusiness of others we are in competition with.

Social Initiatives

Compliance Hotline

As for outsourcing by the real estate business division,

Our Approach to Sustainability

Compliance Manual

implemented after they consult with the compliance officersof their departments on matters involving compliance issues,or when they are uncomfortable consulting with compliance   Anyone can report to the Compliance Hotline,
including officers and employees of the Company, retirees
and employees of our business partners, when there isconcern on human rights violation, corruption, bribery andInformation Security Management
We recognize that it is our social responsibility to effectively

awareness. Additionally, we carry out internal audits to checkprotect our information assets. To protect these assets fromcompliance with company rules on information management.

various threats, we have established an information security
management system, and are ensuring that we operate andInformation Security Management Systemmanage information asssets carefully based on information
management rules that include rules on handling information.
We more strictly check the right of access to the shared server,

Compliance Training

regulate the use of storage media, and regulate instances where

We regularly provide training on themes that correspondtraining. Other related training includes training for new

with the Compliance Manual, including prohibiting bribery

recruits and new hires as well as external training for newly

training held on a regular basis, we stress the significance ofand handling gifts and entertainment, intellectual property

appointed officers, including at affiliated companies.

information management and information security measures

all employees. In addition to training on themes in the
Compliance Manual, we also provide real estate industryspecific training on important themes and hold discussions,as needed. We also provide compliance-related news andinformation assets are removed off-site. In our compliancein terms of systems in order to increase each employee's
Compliance Training Sessions in FY2019

Privacy Policy

Frequency:	5 sessions implemented (four times for all
employees, once for officers), disseminationof compliance-related news 12 times
No. of participants:	A ll employees (including temporary staff)

In full respect of the importance of protecting personal

Q&As once a month on our intranet to supplement theInitiatives for Anti-corruption

or concerns regarding the handling of personal information,

information we properly handle personal information in

and review and improve, as necessary, our provisions for thecompliance with the Personal Information Protection Law (thehandling and safeguarding of personal information. We did"Privacy Law") and other relevant laws and guidelines, andnot identify any substantiated complaints concerning breaches

take appropriate measures to ensure that personal informationof customer privacy and there were no significant incidents oris secure. We make efforts to conduct training andcases regarding leakage of personal data in FY2019.

education for our employees so that personal information isWEB

Privacy Policy
https://www.hulic.co.jp/en/siteinfo/privacy.html

Hulic's policy on prohibition of corruption and bribery.

corruption with business partners, including public agencies

Moreover, twice a year, we monitor whether eachsuch as the government and local government. We also

department is appropriately receiving business entertainment

strictly prohibit any bribery and clearly define prohibitedand gifts, and confirm no bribery is accepted or received,

activities specifically that lead to corruption and bribery inand then identifies and assesses the associated risks. In

The Compliance Manual states that no anti-social activities   In addition, the Legal & Compliance Department

the section prohibit bribery, and rules concerning gifts andcase of doubt, anyone can make a report to the Compliancewill be tolerated and that all relationships with anti-social

promote implementation at the organizational level, andentertainments of the Compliance Manual. In addition, we

Hotline, not only officers and employees of the Company

forces must be severed. As a concrete measure to promotea range of measures have been introduced to severing

conduct compliance training for all employees as appropriate

but also retirees and employees of business partners. Oncesevering any transactions with anti-social forces, we

any ties with anti-social forces, including creating inhouseto build their awareness on prohibited activities such asreceived, all reports are handled swiftly and appropriately.

established Rules for Counteracting anti-social Forces, which

procedures, effective ways to ensure employee safety, andgiving gifts to public officials and excessive entertainment

We made no political contributions in FY2019.

we are now practicing.

coordination with specialist external organizations.

Counteracting Anti-Social Forces

External Evaluation

Hulic prohibits any act or suspicious act that leads toappropriately handled. We immediately respond to any claims

Corporate Governancerights, insider trading, and severing all relations with antisocial forces to raise awareness of compliance among

Environmental Initiatives

officers due to the nature of the issues involved.

Internal contacts:	General Manager of Corporate Planning
Department, Vice Manager of Corporate
Planning Department, General Manager
of Legal & Compliance Department (Chief
Compliance Officer); an additional female
manager contact was added in 2018
External contacts:	Attoney's offices; additional legal firm wasadded aside from our legal counsel

and make sure that our employees are communicated of96

Hulic Sustainability Book 2020

Hulic Sustainability Book 2020

97

Third-party Assurance

Achieved a “Green Star” Rating by GRESBTaking proactive actions against ESG-related risks such as

emissions (Scope1, Scope2) and CO2 emissions intensity,

Hulic obtained the highest “Green Star” assessment in thesustainable co-creation and co-existence with society as

environmental issues including climate change, working

number of greening projects, waste disposal, water

Global Real Estate Sustainability Benchmark (GRESB) survey

one of the basic strategies in its Medium- and Long-term

environment and human rights and contributing to SDGs

consumption, employment ratio of persons with disabilities,

conducted in 2019.

Management Plan, (ii) managing ESG-related KPIs /targets

are one of Hulic's material management matters. We believe

usage rate of paid leave, and percentage of employees who   GRESB is a benchmark which was founded in 2009

through identifying materiality, and

it is important to provide reliable information concerning

received medical checkups. Indicators that have been assured

mainly by a group of major pension funds in Europe. This(iii) business operation with emphasis

our sustainability-related activities. As such, we received

are marked with “benchmark measures sustainability and performance of theon dialogues with stakeholders such

independent assurance from an independent assurance   We will continue to disclose information on the progress

real estate sector. Hulic received a high recognition for its

as customers, business partners andprovider, KPMG AZSA Sustainability Co., Ltd., on theof our ESG activities to the stakeholders while strive toprogress in (i) implementing management that emphasizes

the local communities.

following eight items: electricity and gas consumption, CO2

improve quality of disclosure using PDCA cycle.

”.

Included in FTSE4Good Index Series

Hulic Head Office Building recieved highest rank of “S” inlighting systems, enabling fine control of lighting and air

CASBEE-Wellness Office certification (issued by Instituteconditioning adds to the satisfaction of employees; (3)for Building Environment and Energy Conservation) which

adoption of out-framed structure which provided a spacious

Hulic has been a constituent company in the FTSE4Good

recognized standards. The sociallyrated health and intellectual productivity improvement ofworking area; (4) installation of ancillary amenities including

Index Series. The FTSE4Good Index Series is designed toresponsible investing (SRI) indices are

employees.

a rooftop garden, cafeteria that facilitate communication in

identify companies that demonstrate strong environmental,

important indicators that display poolssocial and governance practices measured against globallyof investment options for investors.

addition to meeting spaces on each floor; (5) adoption of an
Factors attributing to high rating

earthquake-absorbing structure; (6) installation of supplies

Hulic head office building has been highly rated withincluding sufficient electric power,

multiple notable factors that led to the excellent rating:food and beverages to continue(1) exterior walls designed to fit with townscape; (2)business functions when lifelines
are damaged by earthquakes.

Hulic has been selected for a constituent of the FTSE Blossom

performance in areas such as Corporate Governance, Healthachievement of both comfortability and energy-saving

Japan Index. Created by the global index company FTSE Russell,& Safety, Anti-Corruption and Climate

with an environmentally friendly design that actively

the FTSE Blossom Japan Index is designed as an industry

Change. Businesses included in theutilizes uniquely developed natural ventilation and natural

neutral benchmark that reflects the performance of companies

FTSE Blossom Japan Index meet ademonstrating strong environmental, social and governancevariety of environmental, social and(ESG) practices in Japan. FTSE Russell evaluations are based on

governance criteria.

DBJ Green Building
DBJ Green Building certification system is a program tocertification of “5 Stars” for Hulic

comprehensively assess the building’s environmental

Head Office Building and three

performance, crime and fire prevention, user comfort andbuildings in reconstruction projects

convenience, cooperation with stakeholders, etc. by the

including Hulic Shinjuku Building, andDevelopment Bank of Japan Inc. Hulic obtained the highest

one building was granted “4 Stars.”

Hulic has been approved for membership of the “MSCI Japan

comprised of Japanese companies, chosen from the largest

ESG Select Leaders Index” and the “MSCI Japan Empowering

700 Japanese companies by market capitalization, with a

Women Index (WIN)” by MSCI Inc.

high level of gender diversity in their workforces compared   The MSCI Japan ESG Select Leaders Index is comprised of

to sector peers classified by GICS ®.

companies, chosen from the largest 700 Japanese companies   Accordingly, Hulic has been continuously included

JHEP is a program to evaluate and certify activities thatcompany-owned properties from theby market capitalization, which have high environmental,

in all three indices selected by the Government Pension

contribute to conservation and restoration of biodiversity, which

standpoint of safeguarding biodiversity.

social and governance (ESG) profiles compared to their

Investment Fund (GPIF) for the purpose of investment based

was established and is operated by Ecosystem Conservation

Our approach to biodiversity andsector peers, after excluding companies with the lowest ESG

on a company’s ESG efforts: FTSE Blossom Japan Index,

Society-Japan. Hulic carries out efforts to conserve and restore

many projects have received the JHEP

rating by MSCI and companies hit by serious scandals.

MSCI Japan ESG Select Leaders Index, and MSCI Japan

local vegetation as part of its reconstruction projects forcertification.

   The MSCI Japan Empowering Women Index (WIN) is

Empowering Women Index.

Corporate GovernanceIncluded in “MSCI Japan ESG Select Leaders Index” and“MSCI Japan Empowering Women Index (WIN)”

Environmental Initiatives

Selected for FTSE Blossom Japan Index

Social Initiatives

Received CASBEE-Wellness Office Certification

External Evaluations

Our Approach to Sustainability

External Evaluation

Approaches to JHEP Certification

External Evaluation

Disclaimer: T he inclusion of Hulic Co., Ltd. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship,endorsement or promotion of Hulic Co., Ltd. by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names andlogos are trademarks or service marks of MSCI or its affiliates.

98

Hulic Sustainability Book 2020

Hulic Sustainability Book 202099

In regard to the support for raising the next generation,

as the Company

Hulic aims at a higher level than the legal requirements andsupports employees

has established various in-house measures. We are working

in raising the next

to develop a work environment in which employees can takegeneration at achildcare leave more easily in addition to providing economic

distinctive level. At

support to employees who take the leave. In recognition of

the same time, we

our efforts, Hulic has received a certification of “Platinum

also received “Kurumin” certification for the third time (inKurumin” from the Minister of Health, Labour and Welfare

2010, 2017 and 2020).

Hulic was certified as a Health & Productivity Management

Economy, Trade and Industry

Outstanding Organization in 2020 (Small and Medium-in conjunction with the Nippon

sized Enterprises Category) for the second consecutive year

Kenko Kaigi to advance healthin recognition of our health and productivity management

and productivity.

Social Initiatives

Certified as Health & Productivity Management Outstanding Organization

Our Approach to Sustainability

Received "Platinum Kurumin" and "Kurumin" Certifications

initiatives. The award has been promoted by the Ministry ofof ensuring that female employees will be able to continue

on the Act on Promotion of Women’s Participation andplaying an active role in the company after childbirth andAdvancement in the Workplace, Hulic attained the highest

while parenting.

rank in the “Eruboshi” certification presented by the Minister

Since we have been facilitating in creating a corporate

of Health, Labor and Welfare in 2016, in recognition of theculture where employees respect the diversity among themCompany as an outstanding company in the implementationand can perform best, we were able to meet the criteria

of initiatives to promote female empowerment at thefor the certification established byworkplace. We have put effort into creating an environment

the Ministry of Health, Labour andwhere diverse human resources can perform (diversity

Welfare and obtain the highest rank

management), especially into establishing a top-class system

certification.

for nurturing the next generations (a childcare support
system / onsite childcare and nursery facilities), with the aim

Recognized for Inclusion in Diversity Management Selection 100
and helping employees improve their professional skills,

system run by the Ministry of Economy, Trade and Industry

Hulic is working to transform our organizational structure,since 2012, to recognize companies of various sizes anddevelop an employee-friendly work environment, andfrom different sectors for their proactive initiatives towards

further enhance our benefit

diversity management as a contributing factor behind theprograms. We believe theeconomic growth of Japan. By communicating best practices,achievement was the result

this aims to broaden the fields that encourage diversity.

of our collective efforts.

   From the standpoint of empowering female employees

100 Hulic Sustainability Book 2020

External Evaluation

Diversity Management Selection 100 is a commendation

Corporate Governance

As a result of the formulation of the Action Plan based

Environmental Initiatives

Corporate Certification for Eruboshi Based on the Act on Promotion of
Women’s Participation and Advancement in the Workplace Obtained

Hulic Sustainability Book 2020 101