Sustainability
Report2023
TOKYO TATEMONO GROUP
Sustainability Report 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Corporate DataManagement

Company Name

Message from the President and CEO

Head Office

Materiality of the Tokyo Tatemono Group
Representative

Initiatives and External Evaluation for Sustainability

Established
CapitalEnvironment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Hitoshi Nomura, President and Chief Executive Officer
October 1, 1896
92.4 billion yen (As of December 31, 2022)

Since our founding in 1896, the Tokyo TatemonoGroup has striven as a comprehensive real estatecompany to build a prosperous and comfortableurban society. Boasting more than a century’sworth of positive contributions, we aim to createa sustainable society and improve our corporate
value as a member of society by finding solutions
to various social issues.

Number of Employees
Number ofConsolidated Employees
Number ofConsolidated Subsidiaries
Number of Affiliates Accounted
for by the Equity Method

Biodiversity

Respect for Human Rights

Operating Revenue,

Corporate Philosophy

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Trust beyond the era.
We aim to grow the company and to createa prosperous society, taking pride in the trust
placed in us that extends over a century

Corporate GovernanceRisk Management

Corporate Stance
We support affluent and dream-filled living.
We aim to create comfortable urban environments.
We create worthwhile spaces offering peace of mind.

Profit Attributable to Owners of Parent

400
300

273.3

12

10.0
8.2

9

8.7

8.3

6

200
100

47.1

0

2018

51.6

27.2

49.8

29.7

2019

66.3

47.9 34.9
2021

43.0

3
0

2022

Business Profit (Loss) per Segment
Other

Asset Service

23.1 billion yen (7%)

50.2 billion yen (14%)

31.7

2020

Operating Revenue per segment

Other

Elimination/Corporate

4.0 billion yen (5%)-9.6 billion yen (-13%)

Asset Service
7.3 billion yen (10%)

Data
Residential

Commercial Properties

Commercial Properties

145.1 billion yen (41%)

41.2 billion yen (54%)

131.3 billion yen (38%)

Residential
23.3 billion yen (31%)

Operating Revenue

Third-Party Assurance

349.9

340.4

334.9

323.0

Compliance

Sustainability Finance Reporting

ROE
(%)

Health Management / Occupational Safety and Health

GovernanceBusiness Profit

7.9

Human Resource Investment and Development

Diversity & Inclusion

22 companies (As of December 31, 2022)(Billion yen)Supply Chain Management
Improving Quality and Customer Satisfaction

29 companies (As of December 31, 2022)

Operating Revenue, Business Profit, Profit Attributable to Owners of Parent, ROE

Sustainability FinanceSocial

5,878 (As of December 31, 2022)

Financial Highlights

Promoting a Recycling-oriented Society

Responding to Natural Disasters

Commercial Properties (Urban
Development, Office Buildings),
Residential (Condominiums for Sale andLease), Asset Services (CRE Strategy
Support, Real Estate Brokerage, Asset
Solutions, Leasing and Management ofReal Estate, Real Estate Appraisal), Other(Commercial Facilities, Logistics Facilities,
Parking Lots, Leisure, Overseas
Business, Real Estate Fund)
760 (As of December 31, 2022)

Business Segments* The head office location on the commercial registration is 1-9-9

ESG Management

Feature:Tokyo Tatemono Co., Ltd.
Tokyo Tatemono Yaesu Building, 1-4-16 Yaesu,
Chuo-ku, Tokyo 103-8285

349.9 billion yen

02

Business Profit

66.3 billion yen

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

CONTENTS
Corporate Philosophy,

Environment

Governance

20

73

Message from the President and CEO

Corporate Data, Financial Highlights,

Environmental Management

21

Corporate Governance74

Materiality of the Tokyo Tatemono Group

Editorial Policy

Promoting a Decarbonized Society

26

Risk Management

79

Compliance81

02

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Management

04

Message from the President and CEO 04

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Materiality of
the Tokyo Tatemono Group07

ESG Management

09

Initiatives and External Evaluationfor Sustainability

External Evaluation and Certification
for Green Building

33

Water Resources

35

Promoting a Recycling-oriented Society 36

SocialBiodiversity

38

Sustainability Finance40

Respect for Human Rights

47

Responding to Natural Disasters

43

Supply Chain Management

51

Improving Quality andCustomer Satisfaction

53

14

Revitalizing and Utilizing Real Estate Stock 57

Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

46

Feature: Connecting Residents’ Thoughts
and Passing on a HistoricCommunity to the Future
Shakujii Koen Danchi Apartment
Reconstruction ProjectContributing to Our Communities

59

Human Resource Investment
and Development

62

Health Management /Occupational Safety and Health65

Diversity & Inclusion

70

16

Data

85

Sustainability Finance Reporting

94

Third-Party Assurance

97

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Editorial Policy
The Tokyo Tatemono Group publishes sustainability-related information to communicate to all our stakeholders about
our role in helping to realize a sustainable society and our initiatives in this area.
All information concerning our sustainability initiatives is posted on our website, which is divided into two sections:the sustainability website, which is designed to provide easy-to-understand information to all stakeholders; and theSustainability Report, which is our annual report.
We have enhanced the level of quantitative data provided in the Sustainability Report, with the aim of providing
comprehensive and detailed information on our initiatives. We have selected themes that the Group considers
important to society and our customers and for each theme, reported on our approach, indicators, and results forfiscal 2022.

Referenced Guidelines
This report has been prepared by referring to the reporting standards and guidelines.
• Global Reporting Initiative (GRI) Sustainability Reporting Standards• SASB Standards of the Sustainability Accounting Standards Board (SASB)• TCFD (Task Force on Climate-related Financial Disclosures): Recommendations of the Task Force on
Climate-related Financial Disclosures• ISO (International Organization for Standardization): ISO 30414:2018 Human resource management — Guidelines
for internal and external human capital reporting
GRI Standard Contents Index
SASB Comparison Table

Publication Data
June 2023 (Issued annually, revised in July 2023; second version)

Third-Party AssuranceTokyo Tatemono underwent a third-party quality assurance evaluation by LAQA Limited in connection with certain
environmental and social data to ensure the integrity of the data within this report. The type of data and numericalfigures subject to this evaluation are indicated with a dagger (†).

Reporting Period
The period covered by this report addresses our activities in FY2022 (January 1, 2022 to December 31, 2022). The
report also presents some other information that is not limited to the fiscal year under review. Certain items in the
Data section correspond to the period between April and March of the following fiscal year.

Inquiries
Sustainability Management Department
Tokyo Tatemono Co., Ltd.
Tokyo Tatemono Yaesu Building,
1-4-16 Yaesu, Chuo-ku, Tokyo 103-8285
TEL: +81 (0) 3-3274-0148

Report Scope
This report primarily focuses on activities of Tokyo Tatemono Co., Ltd. However, some sections cover activities
across the entire Tokyo Tatemono Group or group companies. Activities of Tokyo Tatemono Co., Ltd. are describedusing “Tokyo Tatemono.” Activities of the entire group are described using “Tokyo Tatemono Group.”

03

Explanatory Notes
CPB

Commercial Properties BusinessRB

Residential Business

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Message from the President and CEO

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management

Working sincerely toward sustainablecommunity development

Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance

Hitoshi Nomura
Representative Director,
President and CEO
Tokyo Tatemono Co., Ltd.

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

In 2022, the effects of the COVID-19 pandemic lingered andthe Russia/Ukraine conflict triggered an energy crisis. It was aturbulent year for the global economy. With the emergence ofvarious risks, areas of sustainability such as climate change
and resilience have come into sharper focus. The COVID-19
pandemic has also led to changes in people’s values. Lifestyles
are diversifying and housing needs are changing. Yet precisely
because we now have so much choice about work style, there
is also a renewed focus on the value of face-to-face communication in the office. In such an era, the real estate industry has
a big role to play, and our Group is ready to ramp up its efforts
to the next level.

Sustainable community developmentthat is committed to the spirit of oldand new
A prime example of our community development approach is
the Yaesu Project, a large-scale redevelopment project underway in the Tokyo Ekimae Yaesu area, which includes the siteof our former head office building. The Yaesu, Nihonbashi,
and Kyobashi area, home to the head office of Tokyo
Tatemono since our establishment in 1896, is right beside
Tokyo Station. It has a long history as a castle town, wheretraditional customs and culture have been cherished. The
Company too has, as a local resident itself, valued interaction
with local people. We have passed on and preserved traditional culture such as festivals, and worked to enhance thetown’s beauty. As we see it, a redevelopment project involves
far more than merely renovating buildings and facilities. For it
is after the building is completed that the real work of community building begins. With the help of the local people in04

the area, the neighborhood for the Company, we hope toachieve things that we could not do alone.
One of our material issues is that of strengthening Tokyo’s
competitiveness as an international city. Further strengthening
Tokyo’s competitiveness is vital to Japan’s development. We
are advancing several large-scale redevelopment projects invarious areas of Tokyo. In our redevelopment projects, we aim
to carry on the traditional culture of each region, while meetingthe demands of the new era. Changes in work styles in recent
years have led to growing interest in well-being. Targeting thistrend, this year we newly launched Well-being Lab. Well-being
is said to affect motivation and productivity. Through experiments and surveys, we will identify factors that can improve
people’s well-being. Drawing from these results, we will provide
various services in future redevelopment projects, as we work
to create offices that will improve the well-being of workers. We
hope that you will continue to take an interest in our future
activities in community development.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Message from the President and CEO

ESG Management
Initiatives and External Evaluation for Sustainability

steady effort over time is an important factor that leads tosuccess in business, helping also to win other projects.

Feature:Special Feature P.16

Environment

Supporting community developmentwith the personal strengths of eachindividual

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

The Tokyo Tatemono way is about
bringing tenacity and sincerity to allthat we do.
The condominiums that supported Japan’s rapid growth haveserious problems such as inadequate earthquake resistancedue to aging, security concerns, and a lack of elevators. To
tackle these issues, we have set revitalizing and utilizing realestate stock as one of our material issues, and have taken on
a number of reconstruction projects. Brillia City Shakujii Koen
Atlas is slated to be completed in June 2023. We haveseveral other projects in the pipeline for completion up to
2025. In the course of such reconstruction projects and largescale redevelopment projects, there are naturally many stakeholders. Reaching an agreement is not always easy. Each
person in charge must understand the values that our stakeholders hold dear. We must carry out our work with sincerity
and tenacity. Earning the confidence and trust of our customers and stakeholders, and encouraging them to want to workwith us, depends on how we engage directly with them, andon casual back-and-forth from day to day. I believe that such

It is no exaggeration to say that the lifeline of a company
depends on how well it can continue to win projects. The
basis of this is the ability to acquire information. When I wasyoung, a senior colleague taught me that “information is the
reward of compassion.” Even when it seems like your efforts
are not bearing fruit, if you carry on without giving up, atsome point others will pick up on that. They will want toreward you for your efforts so far. What you can then get isinformation. I strongly believe that the power of information
comes from the personal strength of each individual.
Gathering employees with personal strength will help thecompany and lead to results. I also believe that personal
strength is our company’s greatest advantage.
The phrase that I always tell our employees to keep in mind
so that they can enhance their personal strength is“Thoroughness in everything”. The ability to build and maintainrelationships of trust hinges on surprisingly minor details. I myself
keep in mind that once trust is broken, no amount of time canbring it back. We must be thorough in doing things that would
otherwise be taken for granted. I believe that will lead to therealization of our corporate philosophy of “trust beyond the era.”This mindset has been handed down in our Tokyo Tatemono
DNA and corporate culture for many years. But we muststrengthen it as we carry it on for the future. Recent years havebrought a rise in the hiring of career talent with a variety of personalities, values, and backgrounds. To work with mutual trust05

while respecting diversity, a common core understanding is vital.
Stimulating communication amplifies personal happiness andorganizational cohesion. In the employee engagement survey wecarried out last year, we found that interpersonal relationships
had weakened as employees were not communicating enoughwith each other. So we brought in a system of setting out small
snacks in the company’s break space. This has helped to spark
conversations throughout the working day. After business hours,
we also provide free alcoholic beverages so that employees
communicate with each other in a relaxed way. I often join inwith this socializing so that I can deepen my communication.

Ramping up our fight against
climate change
In June 2021, we set medium- and long-term targets for realizing a decarbonized society. Since setting these targets, wehave strengthened and steadily advanced our efforts in eachbusiness division. In February this year we adjusted our targets
by raising them or moving forward the timing. In particular, forelectricity used by the real estate held in the Commercial
Properties Business, we are moving forward the target by 20
years, aiming for 100% renewable energy by 2030. One of ourmajor contributions to achieving this goal ahead of schedule isthe efforts at T-LOGI, a logistics facility. We developed the
T-LOGI series to support our aim of acquiring ZEB certification*
at, in principle, all our logistics facilities. Solar panels are
installed on the roof of each facility to generate electricity, andthe power generated is consumed by the facility itself. In addition, surplus power is used at our other facilities, thereby
making use of renewable energy power and avoiding wasted
energy. This system of self-commissioning is a pioneer initiative,
and we have steadily built up a track record of success.
When we first started talking over the medium- and long-

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Message from the President and CEO

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

term goals for decarbonization, I myself was troubled by theidea of setting goals that would be so hard for the Company toreach. But now I feel strongly that it makes sense to set ambitious, high goals that we all must work hard to achieve. Among
employees also, seeing more clearly what has to be done has
sparked a change in mindset. I am very pleased that since we
set these goals, individual employees have taken them on as
goals that are personally relevant to them. We have strengthened some of the goals this time and moved forward the target
timing for achieving them. Along with the new targets, we havealso drawn up a roadmap for reducing GHG emissions. We will
work together as a Group toward these goals, using ourwisdom to the full as we take on challenges in various fields.
Promoting a Decarbonized Society P.26

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Addressing human rights andgovernance issues to strengthen
our foundation for value creation
By taking part in initiatives such as the United Nations Global
Compact and various study groups, we gather information andobtain support for our human rights due diligence. In April oflast year, we identified seven priority issues. We are considering initiatives and continuing talks with a view to further
expanding our assessments to cover participation in new
businesses overseas. Respect for human rights is a criticalpart of the foundation for our business activities. We will continue to address it with the utmost of care. In our supply chain
also, we are distributing questionnaires to our business partners to make sure that they are aware of and comply with the
Sustainable Procurement Standards we set forth in 2021. This
helps us understand the status of their efforts.
Respect for Human Rights P.47

In terms of governance, we have worked to enhance theeffectiveness of the Board of Directors. Due to the nature of thereal estate business, a single investment project involves alarge amount of money. The Board of Directors has thus
tended to spend considerable time discussing individual projects. To address this, we have further transferred authority forinvestment projects to executive side. This has allowed theBoard of Directors to broaden its medium- to long-term discussions on areas such as our long-term vision, medium-termplans, business portfolios, management policies, and strategies. Tokyo Tatemono has always been a company where
everyone can express their opinions without fear of discrimination. But we ask outside directors in particular to be forthrightin advising us on what we need to continue to grow over the
medium to long term. Drawing from their varied backgrounds,
the outside directors have shared fresh perspectives on matters that had in a sense been normalized within the Company.
Some of their insights made the scales fall from our eyes. One
opinion was that we should increase the number of people withcorporate management experience and that we should include
personnel with digital transformation expertise. I want to takethis onboard and consider it carefully. Managing a business intoday’s society involves dealing with a rapidly changing business environment and high levels of uncertainty. Seeing a needto further strengthen our risk management and internal controls, in December last year we renewed our risk management
system. We will identify priority risks and implement appropriate
risk management.
Corporate Governance P.74

Aiming through community
development to be a good company
for all our stakeholders
In our long-term vision, “Becoming a Next-Generation
Developer,” we set forth our aim to be a good company for all
stakeholders. We will pursue balance at a higher level throughout our business, developing solutions to social issues whiledriving growth as a company. This means that from a mediumto long-term perspective, we will strive to consider all aspects
in a balanced way. Unfortunately, it would be hard to take any
given moment and say that at that time everything was in thebest condition for all stakeholders. But I believe that if we constantly improve our corporate value, we will be able to earnappreciation in the future. We will then be able to say that weare a good company for all our stakeholders. In that sense, weneed to continue to grow in the medium and long term, and to
be a company that has that strength and is appreciated.
As a Group, we are determined to continue contributing to
the realization of a sustainable society through our businessactivities. Thank you all for your continued confidence in andsupport of our Group.
June 2023

Risk Management P.79

In recognition of our efforts, we were selected for several
ESG indexes last year. We will further mature our efforts, which
will also enable us to meet requests from our stakeholders andto act upon them.
Initiatives and External Evaluation for Sustainability P.14

06

* A building that generates energy while conserving energy consumption by 100% ormore reduction. This is the highest level of energy conservation and energy generation
among the four stages of the ZEB (Net Zero Energy Building) model, which aims to
reduce the annual primary energy balance consumed in the building to zero while
realizing a comfortable indoor environment.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Materiality of the Tokyo Tatemono Group

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Under our long-term vision, “Becoming a Next-Generation
Developer,” the Group aims to achieve a high-level balance
between providing solutions to social issues and pursuing
growth as a company.
To achieve the long-term vision, we undertook a method ofbackcasting to reassess the priority issues we should address,
with an awareness of the shared value with society we realize
through our business. As a result of this process, we haveidentified 14 material issues (key issues with high relevance toour businesses) from the perspective of both creating social
value and the infrastructure needed to create such value.
The Group will seek to develop solutions to these material
issues through our business to maximize our positive impact onsociety while minimizing our negative impact. In this way, we
will help bring about a sustainable society while pursuing
growth as a company

Materiality of the Tokyo Tatemono Group
Material issues

Shared values with society

Contribution to SDGs

Strengthening Tokyo’s competitiveness as an international city
Contributing to a safe and secure society
Community building and revitalization

Social value creation

Promoting a Recycling-oriented Society

Materiality of the Tokyo Tatemono Group

Wellbeing
Addressing the diverse needs of customers and society

Creating value of place andvalue of experience

Value co-creation and innovation
Social implementation of technology
Revitalizing and Utilizing Real Estate Stock

Improving Quality and Customer Satisfaction

Promoting a decarbonized society

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Promoting a recycling-oriented society

Coexistence with the earth
and the environment

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Corporate GovernanceRisk Management
Compliance

Value creation platform

GovernanceImprove employee growth and job satisfaction
Value-creating talent
Diversity & Inclusion
Advancement of governance
Strengthen risk management framework

Realizing sustainability
management

Data
Sustainability Finance Reporting

Third-Party Assurance

07

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Materiality of the Tokyo Tatemono Group

ESG Management
Initiatives and External Evaluation for Sustainability

Materiality Identification Process

Feature:2018· To obtain a broad grasp of the social issues relevant to our business, the Group listed 35 social issues to study. Our list was
influenced by international issues (the SDGs), issues unique to Japan and issues unique to our industry (Basic Policies for Urban
Renaissance, Law on National Strategic Special Zones).

2019· We evaluated the importance of 35 social issues. In making this evaluation, we incorporated two perspectives: the scale of the social
need (whether the issue requires a solution) and the affinity of the issue with our business (whether the issue is closely concernedwith our current business or something we may wish to deal with as a business in the future). To further clarify the relative
importance of issues, we assigned points based on four aspects.

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources· Based on the above evaluation, we mapped the issues to narrow them down to those of relatively high importance. We organizedthese issues into three categories based on their content and identified them as the Group’s material issues.

Promoting a Recycling-oriented Society
Biodiversity

Evaluation perspectives

Sustainability FinanceSocialRespect for Human Rights

Scale of social need
Affinity withour business

2 Relationship with Our Businesses
3 Relationship with Our Medium-TermBusiness Plan
4 Director questionnaire results

Supply Chain Management

Affinity with our businessResponding to Natural Disasters

Assigning point values to indicators

1 Relationship with the Real Estate
Industry

Material
issuesDetermining
material issues

2020

Health Management / Occupational Safety and HealthCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance· Green Growth Strategy:
A summary of government policies to achieve carbon neutrality
in 2050· Law on National Strategic Special Zones:
A summary of the Japanese government’s zoning policy fornational strategic special zones· In response to recent changes in social conditions and values, we initiated the process of reviewing our materiality. We organized thematerial issues based on their relationships to key themes in the advancement of ESG management.
· We engaged in discussions with internal and external directors on themes related to materiality, consolidating their expectations of
the Group as well as their views on areas for improvement.

Diversity & Inclusion

Governance· Action Plan of the Growth Strategy:
A summary of the government’s priority policies, including its
actions toward a new social vision in the context of COVID-19.

Scale of social needContributing to Our Communities
Human Resource Investment and Development· SDGs:International goals for the years 2016–2030 as listed in the 2030
Agenda for Sustainable Development (adopted at the United
Nations Summit in September 2015)· Basic Policies for Urban Renaissance:
A summary of the Japanese government’s basic policy forrevitalizing cities

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Information Resources Related to Social Issues

2021· Based on our corporate philosophy and long-term vision, we considered the social issues identified in the SDGs and internationalguidelines on sustainability. We incorporated the knowledge that we have gained through advice from external experts, participationin various initiatives, and communication with stakeholders.
· We also view the advancement of ESG management as a key component of materiality. We have categorized this in terms of theperspective of value creation for society and the perspective of realizing that value creation for society.
· The Sustainability Committee judged the materiality to be appropriate, finding that it encompassed the social issues expected of
the Group.
· The Board of Directors also deemed them to be appropriate.
The 17 Sustainable Development Goals (SDGs)

Going forward, we will consider revising our materiality as necessary depending on changes in social conditions or updates to management policies.

08

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

ESG Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Overview of ESG Management at theTokyo Tatemono GroupThe Tokyo Tatemono Group pursues an evolved approach to
ESG management, proactively implementing sustainability measures throughout its operations. We strive to achieve a balance
between solutions to social issues and corporate growth.
ESG management has grown ever-more important in recent
years, amid intensifying changes in the business environment.
We formulated a Long-Term Vision for the Group in 2020 andestablished a sustainability promotion framework under which
the entire Group has come together to pursue initiatives forsustained growth.
Our Long-Term Vision looks ahead to 2030. This is ourplanned timing for completing our current large-scale redevelopment projects and also the target year for the Sustainable
Development Goals (SDGs).

Long-Term Vision

Becoming a Next-Generation Developer
We live in a time of profound change.
We are experiencing shifting demographics, growing diversity among personal values, ever-accelerating technological development, and more.
Amidst these uncertainties, a broad range of challenges to achieving social sustainability have emerged.
The Tokyo Tatemono Group understands that the role of developers must also change in fundamental ways.
We are committed to using our business to offer better solutions to society’s problems and bring our own growth as an enterprise to a higher level.
By doing so, we aim to be a good company for all our stakeholders.

Positioning of Long-Term Vision

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockOur unchanging values and mission

Contributing to Our Communities
Human Resource Investment and Development

Focus Factors in the External Environment

Health Management / Occupational Safety and HealthDiversity & Inclusion· Intensified competition between cities internationallyGroup Vision for 2030

Corporate
Philosophy

Long-Term Vision

Becoming a Next-Generation Developer· Changes in the financial environment

GovernanceCorporate Governance· Decrease in population and working-age citizens in Japan· Diversification of work styles and lifestyles

Risk Management· Intensification of competition to recruit human resources

Compliance· Acceleration of digital technology advances and globalization

Trust beyond the era.

Shared values with society to be realized
to achieve our Long-Term Vision
A strategy for achieving ourMateriality

Medium-Term Business Plan
(2020–2024)

Long-Term Vision· Rising ESG awareness

Data· Greater geopolitical risks and natural disaster risks

Specific initiatives for achieving our

Fiscal Year Business Plan

Medium-Term Business Plan

Sustainability Finance Reporting

Third-Party Assurance

09

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

ESG Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance

Our Approach to the SDGs
The Tokyo Tatemono Group recognizes the demand from society to help achieve the SDGs. We have incorporated the SDGs
into our long-term vision and medium-term management plan
and are actively implementing
sustainability measures throughout
the Group.
As we operate our business asa developer, we will continue to be
guided by the aim of realizing asustainable society.

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

ESG Management Framework

The Human Rights Subcommittee promotes decisions madeby the Sustainability Committee regarding human rights andreporting on the status of initiatives.

Board of Directors
Submits toagenda/Reports

President and CEO

Audits

ESG-related KPIs and Targets; Progress
Sustainability Committee

PDCA Cycle
Goal setting ⇒ Implementation and promotion ⇒Monitoring and evaluation ⇒ Review of activities

ESG Management Framework
The Tokyo Tatemono Group established the Sustainability
Committee, chaired by our president and CEO, to pursue
sustainability measures across the entire Group. We alsoestablished the Sustainability Promotion Committee andHuman Rights Subcommittee as subordinate organizations.
The Sustainability Committee, like the Executive Committee,
Risk Management Committee and Internal Control Committee,
is under the direct control of the president and CEO. It meetsin principle at least twice a year, to discuss important ESGrelated issues, set targets, monitor progress, and evaluateachievements. Matters discussed by the Sustainability
Committee are reported to and supervised by the Board of
Directors as necessary. The Sustainability Committee met
seven times during fiscal 2022.
The Sustainability Promotion Committee shares decisions of
the Sustainability Committee, conducts preliminary discussions for consideration, and reports on the progress of sustainability measures.

Sustainability Promotion Committee

Human Rights Subcommittee

Shares decisions made by the Sustainability
Committee, conducts preliminary discussionsof items to be considered, and reports on the
progress of sustainability measures.

Promotes decisions made by the Committeethat relate to human rights, reports on thestatus of initiatives, etc.

Each corporate division, business headquarters,
and Group company

Main Agenda Items of the Sustainability Committee (FY2022)· Establishing additional KPIs and targets for promoting a circularsociety· Identifying priority issues for human rights· Roadmap for reducing greenhouse gas emissions· Establishing a Human Rights Subcommittee· Reporting on implementation status of targets for promoting
a decarbonized society

10

The Tokyo Tatemono Group believes that advancing ESG
management will help to maximize the medium- and long-term
benefits for our stakeholders. We have set ESG-related KPIs
and targets based on the material issues we identified in 2021.
In particular, we are focusing our efforts on the area of climatechange, in response to the demands of the public toward
a decarbonized society.
In terms of reducing greenhouse gas emissions in theGroup, we have set medium- to long-term targets of achieving
a 40% reduction in CO2 emissions by fiscal 2030 compared tofiscal 2019 and net-zero CO2 emissions by fiscal 2050. Thesetargets are guiding our efforts to realize a decarbonized society.
In addition, we have set the shift to renewable energy, promotion of development of ZEB and ZEH, and acquisition of green
building certification as process targets for achieving the
medium- and long-term targets. We are striving to develop
real estate equipped with energy-saving equipment and othertechnologies that offer superior environmental performance,
while working with building management companies andtenants on operational initiatives.
We have incorporated action plans that take these processtargets into consideration into the business plans of eachbusiness division or business unit. The Sustainability
Promotion Committee monitors the status of these efforts,
while the Sustainability Committee manages progress towardachieving the targets using a PDCA cycle. Progress isreported to and supervised by the Board of Directors.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

ESG Management

ESG Management
Initiatives and External Evaluation for Sustainability

Material Issue KPIs and Targets

Feature:Environmental

Environment

Material issues

Environmental Management

Item

Reduction in greenhousegas emissions

Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity

Shift to renewable energy
Promoting adecarbonized society

Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Promoting a recyclingoriented society

Contributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Promoting adecarbonized society /Promoting a recyclingoriented society

Scope

Details of
FY2022 results

KPIs and Targets

Net zero CO2 emissions by FY2050*1

All Businesses

P.85

40% reduction in CO2 emissions compared to FY2019 by FY2030*1

All Businesses

By FY2050, procure 100% of electricity consumed in business activities from renewable energy sources

Commercial
Properties Business

By FY2030, procure 100% of electricity consumed at owned real estate from renewable energy sources*2

P.86

By FY2024, procure at least 50% of electricity consumed at owned properties from renewable energy sources*2

Commercial
Properties Business

Develop ZEB for, in principle, all new office buildings and logistics properties*4

Residential Business

Develop ZEH for, in principle, all new sales of condominiums and leasing condominiums*5

Acquisition of Green
Building Certification*6

Commercial
Properties BusinessResidential Business

Acquire Green Building Certification for, in principle, all new office buildings, logistics properties, and condominiums for rent, etc.*7

P.88

Reduction of waste
emissionsLong-term buildings*8

By FY2030, 20% reduction in the rate of waste emissions per unit compared with FY2019

P.87

Waste recycling promotion

Long-term buildings*8

By FY2030, achieve a waste recycling rate of 90%

P.87

Reduction of water
consumption

Long-term buildings*

Reduction of water consumption per unit compared with previous fiscal year

P.86

Promotion of use ofrecycled water

Office buildings withtotal floor area
exceeding 30,000m2

By FY2030, install gray water*10 treatment facilities at, in principle, all new office buildings with a total floor area of more than
30,000m2

P.35

Promotion of use of woodmaterials

Long-term buildings,
condominiums forsale or rent

By FY2030, use domestic timber and certified timber in the interior and furniture of common areas of all new office buildings,
for-sale and for-rent condominiums, etc.

P.32

By FY2023, develop for-sale and for-rent condominiums that use CLT for major structural components.

P.32

Long-term buildings

Communicated with tenants about sustainability at least 4 times a year

P.32

Residential BusinessCommunicate with residents and plan and implement sustainability measures

P.32

Promotion of developmentof ZEB and ZEH*3

Collaboration andco-creation with customers

9

P.34

*1 Applies to the total of Scope 1 and 2 and to Scope 3, category 11.
*2 These targets were revised in February 2023 through changes including moving forward the target timing for achievement. The targets shown in this table are the revised targets based on such changes including earlier achievement timing.
*3 In addition to “ZEB” and “ZEH(-M)”, includes Nearly ZEB, ZEB Ready, ZEB Oriented, Nearly ZEH(-M), ZEH(-M) Ready, and ZEH(-M) Oriented.
*4 Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*5 Applies to new buildings for which design work began in June 2021 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*6 Mainly refers to DBJ Green Building certification, CASBEE building and BELS (Building Energy Saving Performance Labeling System) certification.
*7 Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*8 Applies to the main long-term buildings and commercial facilities for which we have substantial energy management rights and for which we have submitted plans for the reuse and reduction of waste materials.
*9 Applies to the main long-term buildings and commercial facilities for which we have substantial energy management rights.
*10 Recycled water derived from rainwater and miscellaneous wastewater generated in buildings (e.g., wastewater from cooling towers and tenants’ kitchens). It is reused for non-potable purposes such as toilet flushing and watering plants.

11

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

ESG Management

ESG Management
Initiatives and External Evaluation for Sustainability

Material Issue KPIs and Targets

Feature:SocialEnvironment

Material issues

Item

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Improve employee
growth and job
satisfaction

Promoting a Recycling-oriented Society
Biodiversity

Average training time per employee Each fiscal year

Tokyo Tatemono

Career training participation rate Each fiscal year

Promotion of healthmanagement

Tokyo Tatemono

Health checkup rate and follow-up test rate Each fiscal year

Tokyo Tatemono

Smoking rate

Tokyo Tatemono
Group

Dissemination of the Human Rights Policy Deployment to and compliance by group companies

P.50
P.90

SocialRespect for Human Rights

Work-life balance
Promotion of diversity in
our workforce

Every fiscal year

15 hours or more

Details of
FY2022 results

Tokyo Tatemono

Responding to Natural Disasters

Diversity & Inclusion

KPIs and Targets

Promotion of skills
development

Respect for human rights

Sustainability Finance

Scope

100%

P.89
P.89

100%

12% or less

P.90
P.90

Tokyo Tatemono

Average annual paid leave utilization rate Each fiscal year

Tokyo Tatemono

Ratio of male employees taking parental leave By fiscal 2025

70% or more

Tokyo Tatemono

Ratio of women in management positions 10% or more by fiscal 2030

P.88

Tokyo Tatemono

Employment rate of people with disabilities Each year

P.88

30% or more

2.3% or more

P.89

Supply Chain Management
Improving Quality and Customer Satisfaction

Materiality of the Tokyo Tatemono Group P.7

Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

12

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

ESG Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Stakeholder Engagement
The Tokyo Tatemono Group’s business activities are supported
not only by the customers who use our products and services,
but also by many other stakeholders, including local communities, employees, shareholders, investors, and business
partners. We believe that building long-term relationships oftrust with these stakeholders is essential to our businessactivities. By engaging with our stakeholders and incorporating
their input in various ways, we are working to earn their trust
while creating value. To ensure that our engagement withstakeholders is effective, we will review its approach and otheraspects as necessary.

Stance on and Approach to Dialogue with Our Core Stakeholders
Stakeholders

Stance on Dialogue· Customer satisfaction surveys

Customers
Building tenants, home buyers, users ofservices

We established various systems to incorporate
customer feedback in our business activities. We
use these systems to provide valuable products
and services that offer safety and peace of mind,
while continuously improving customer
satisfaction.
We work to increase local value and contribute to
the local community through efforts that include
community development and various community
activities.

· Dialogue with local residents and government bodies in
the planning, development, and management of properties

Local community
Local community around properties,
local governments, NGOs, NPOs,
educational institutions, etc.

Supply Chain Management

Employees

We aim to build long-term fiduciary relationships
with our shareholders and investors and earnappropriate recognition through sincere and fair
information disclosure and active communication.

Contributing to Our Communities

Shareholders and investors

Health Management / Occupational Safety and Health· Volunteer activities, including clean-up activities· Participation in local events and festivals· Various training and reward systems· Regular personnel interviews· Dialogue with labor unions and co-hosting of events· IR information on our corporate website· General Meeting of Shareholders· Seminars for private investors· IR meetings (Japan/overseas), etc.

Diversity & Inclusion

Corporate Governance· Online inquiry forms, etc.

· Individual consultation on child-rearing and nursing care
support, etc.

Revitalizing and Utilizing Real Estate Stock

Governance· Various questionnaires· Post-disaster reconstruction support, etc.

Improving Quality and Customer Satisfaction

Human Resource Investment and Development· Brillia Owners Hotline (contact for home buyers)· Support for education and the arts

We work to create a satisfying workplace in which
employees can experience personal growth. We
strive to develop people who are trusted andcapable of building the future.

SocialRespect for Human Rights

Approach to Dialogue

Business partners
Business operators related to planning,development, and property management,
and service provision, etc.

We conduct fair and equal business dealings with
our partners and strive for close communications tobuild even better relationships with these partners.

· Verification of second- and third-tier subcontractors· Verification via internal check sheet· Regular meetings, etc.

Risk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

13

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Initiatives and External Evaluation for Sustainability

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Highlights of Participation in Initiatives
Initiatives

Environment

United Nations Global Compact (UNGC)

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Initiatives

Purpose of Participation; Our Role and Efforts

Tokyo Tatemono is a signatory to the UNGC
and registered theTokyo Tatemono Group as a participatingcompany. By supporting the UNGC, which
addresses the four areas of human rights,
labor, environment, and anti-corruption, we
will help to realize
a sustainable society.

Promoting a Recycling-oriented Society

Japan Climate Leaders’ Partnership (JCLP)

Tokyo Tatemono participates as a memberof the JCLP. Together with otherenvironmentally progressive companies, we
aim to help realize a sustainable,
decarbonized society through co-creation andcollaboration across industries and sectors.

Keidanren Biodiversity Declaration Initiative

Tokyo Tatemono expresses its endorsement of
the Keidanren Biodiversity Declaration andAction Guidelines and participates in
the Initiative.

Keidanren Committee on Nature Conservation

Tokyo Tatemono participates in the Keidanren
Committee on Nature Conservation toacquire the latest information and trends
related to biodiversity.

Principles for Responsible Investment (PRI)

Tokyo Realty Investment Management, theasset management company of Japan Prime
Realty Investment Corporation, has endorsed
and is a signatory to the PRI’s basic
principles.

Principles for Financial Action Toward a Sustainable Society(Principles for Financial Action in the 21st Century)

Tokyo Realty Investment Management, theasset management company of Japan Prime
Realty Investment Corporation, endorses andis a signatory to these principles.

Biodiversity
Sustainability Finance

TCFD (Task Force on Climate-related Financial Disclosures)

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

The Group endorses and is a signatory to the
TCFD recommendations. Going forward, we
will strengthen our measures to combat
climate change, while expanding the content
of our disclosure in line with the information
disclosure framework recommended by the
TCFD (governance, strategy, risk
management, and indicators and targets withrespect to climate change risks
and opportunities).
Disclosure based on TCFD recommendations P.27

Contributing to Our Communities
Human Resource Investment and Development

SBT Initiative (SBTi)

Health Management / Occupational Safety and HealthDiversity & Inclusion

The greenhouse gas emission reduction
targets set by the Tokyo Tatemono Group forfiscal 2030 have been certified by SBT as
being consistent with the levels required by
the Paris Agreement.

GovernanceCorporate Governance

RE100

The Tokyo Tatemono Group participates in thisinitiative with the aim of procuring 100% of theelectricity consumed in its business activities
from renewable energy sources by 2050.

Japan Climate Initiative (JCI)Tokyo Tatemono is participating in the JCI,
seeing climate change
as a social issue that requires global
collaboration.

Risk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

14

Purpose of Participation; Our Role and Efforts

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Initiatives and External Evaluation for Sustainability

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society

Details

The Real Estate
Companies
Association ofJapan

The organization comprises companies involved in urban
development and appealing community development projects. It
engages in surveys and research on various real estate-related
systems, policy proposals, and social contribution activities withthe aim of actively and effectively promoting the supply of highquality offices and housing, as well as the smooth distribution of
housing stock. In the area of climate change, we are involved informulating climate change policies for the real estate industry,including participation as a member of the working group
established within the Association to develop its Long-Term Vision
for the Real Estate Industry for the Realization of a DecarbonizedSociety (Vision for 2050), issued by the Association in April 2021.

AdvisorVice Chair
Chair, Environmental
Committee
Vice Chair, Compliance
Committee

Japan Building
Owners andManagers
Association

As Japan’s only national association of office building operators,
this organization engages in surveys, research, and educational
activities related to building management and administration.

Vice Chair

The Associationof Real Estate
Agents of Japan

This organization comprises major and medium-sized housing andreal estate companies that are involved in real estate distribution. It
works to improve various systems related to real estate distribution
through surveys, research, and policy proposals.

Director

The Association
for Real Estate
Securitization

This organization was established for the purpose of ensuring
public confidence in real estate securitization products andprotecting investors. It makes requests for system improvements
and tax system reforms that are necessary to promote the sounddevelopment of the real estate investment and securitization market.

Director

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management

Real EstateThis is a self-regulatory organization that administers the Fair
Fair Trade Council Competition Code for Real Estate Representation and the Fair
Competition Code on Premium Offers in the Real Estate Industry in
the Kanto and Koshin-etsu regions. It constantly monitors realestate advertising, working to promote proper labeling and prevent
non-compliant advertising.

Inclusion in ESG Indices

Positions held by Tokyo
Tatemono officers, etc.

Name

External evaluation and Certification for Green Building

SocialExternal Evaluation

Collaboration with Industry Associations

MSCI Japan ESG Select Leaders Index

MSCI Japan Women’s Activity Index (WIN)Disclaimer
The inclusion of Tokyo Tatemono Co., Ltd. in any MSCI Index, and the use of MSCI logos, trademarks, service marks or index names herein, do notconstitute a sponsorship, endorsement or promotion of Tokyo Tatemono Co., Ltd. by MSCI or any of its affiliates.
The MSCI Index are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are trademarks or service marks of MSCI or its affiliates.

FTSE Blossom Japan Sector Relative Index

S&P/JPX Carbon Efficient Index

Evaluations and Certifications for Sustainability
CDP

GRESB

Health & Productivity Management Outstanding
Organizations Recognition Program

Eruboshi

Chair (Representative
Director)

Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

15

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group
ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Mr. Kurogouchi (center), Chairman of Shakujii
Koen Danchi Apartment Reconstruction
Association with Tokyo Tatemono’s Development
Leads Miyauchi (left) and Abiko (right)

FeaturePromoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Connecting Residents’ Thoughts and Passing on
a Historic Community to the Future
Shakujii Koen Danchi Apartment
Reconstruction Project

Revitalizing and Utilizing Real Estate Stock

Brillia City Shakujii Koen ATLAS under construction (aerial view of site)

Contributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Many of Japan’s housing complexes were developed during the period of rapid
economic growth in the 1960s and 1970s. With more than 40 years having
passed since their completion, various issues have emerged. The buildings havedeteriorated, residents are elderly, and there is a mismatch of needs due tochanges in the times and in lifestyles. The Group has set revitalizing and utilizing
real estate stock as one of its material issues. By redeveloping or rebuilding
problematic housing complexes and buildings, we are helping to revitalize local
communities. We are increasing the supply of high-quality real estate stock that canbe passed on to the next generation Brillia City Shakujii Koen Atlas is scheduled
to be completed in 2023. (Construction finished in late June 2023, with residents
scheduled to move in from late September.) Using this project as an example,
here we introduce the Company’s approach and thinking with regard to solvingsocial issues identified as part of our materiality.

Tokyo Tatemono Group Materiality “Revitalizing and Utilizing Real Estate Stock”
Social issues to be addressed

Initiatives of the Group

Value created• Making a better environment for theelderly• Exploring needs by engaging
carefully with property rights holders• Safe, secure and prosperous living• Fewer children, outflow of younger
generation• Planning reconstruction that reflects
the needs of property rights holders
as much as possible• Deterioration of housing• Increase in vacant homes, etc.
• Disaster and crime prevention
measures• Creation of high-quality real estatestock• Revitalization of local communities• Pursuing reconstruction that
improves earthquake resistance andbarrier-free accessibility• Managing the area for continuationof the community

16

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupFeatureConnecting Residents’ Thoughts and Passing on
a Historic Community to the Future

Shakujii Koen Danchi Apartment
Reconstruction Project

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Kindling relationships of trust, leading
the revitalization of one of the largest
apartment complexes in Tokyo
Abiko (Development Lead for Tokyo Tatemono): The predecessor of this property, which was called Shakujii Koen Danchi(hereafter the “old complex”), was one of the oldest and largest
housing complexes in Tokyo. We heard that during the long
period since 1967, when people first began living in the property, various inconveniences had arisen.
Kurokouchi (Chairman, Condominium Reconstruction
Association): The deterioration of the facilities was a major
problem. Although the building had undergone major repairs in
the past and appeared clean on the outside, there were problems under the surface. For example, the buried pipes had
aged, causing issues such as backflow of toilet water. Even if
it had been repaired, the same thing would have happened
again. There was also a need for barrier-free access. The oldcomplex had no elevator, and elderly families found it hard toContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Issues in housing complexes (questionnaires to municipalities)
N = 197 (Issue recognized, multiple answers)
Many elderly residents,
many of whom live alone

104 housing complexes(52.8%)

Difficulty in introducing buildings
for non-residential use

87 housing complexes(44.2%)
65 housing complexes (33.0%)

Decline in living convenience
Many vacant houses andvacant land

48 housing complexes (24.4%)

Decline in transport access

44 housing complexes (22.3%)

Community weakening

33 housing complexes (16.8%)

Other

Sustainability Finance Reporting

40 housing complexes (20.3%)
0

20

40

60

80

100 (Number of answers)

From the Ministry of Land, Infrastructure, Transport and Tourism “Residential Complex
Renewal Guide”

Third-Party Assurance

climb the stairs. Because of this, some had to move to otherapartments, which was heartbreaking for them.
Miyauchi (Development Lead for Tokyo Tatemono): Ourparticipation in the project began in 2015, when the management association board members and the members of therebuilding promotion committee selected a group that included
Tokyo Tatemono from among proposals submitted by several
companies through a proposal process. But we learned thatthe reconstruction had been under consideration since long
before that.
Kurokouchi: From around 2007, a rebuilding and repair study
committee led by the management association was formed to
discuss the revitalization of the complex. We consulted withseveral developers, but we could not agree on terms andconditions and had to halt our plans. It was in this context thatyour company gave us very thorough explanations. We feltthat in every area you respected the feelings of us as property
rights holders. As a result, more than 30 committee members
voted unanimously to select the group including Tokyo
Tatemono as the developer.
Abiko: We believe that the basis of rebuilding is to meet withright holders and listen carefully to their opinions. We see this as
one of our strengths. We typically form a specialized group in
charge of consensus building. We hold repeated briefings,

individual interviews, and small-group workshops as necessary.
We see these steps as vital for reflecting the wishes of property
right holders.
Miyauchi: In this project, we also set up a consultation officewithin the grounds of the housing complex where property rights
holders could easily seek advice. I think that helped to activate
communication. Having a place nearby where property rights
holders could gather at any time made it easier for us to hear
their opinions and requests. I believe that these efforts helped
lessen the anxiety that property rights holders would have had.
Kurokouchi: Your company’s passion came across to us. The
content of the proposal was also based on our wishes. In yourplan for the residential building, you were able to read intovague wishes that even we ourselves were not aware of. Then
you made those wishes come true.
Abiko: Reconstruction is a kind of partnership with property
rights holders, so listening to everyone’s thoughts is vital. As
we carried on talks with the property rights holders, someconditions arose that were hard for us to meet. But we did notgive up. We kept coordinating with all involved, communicatingwith the rights holders until we found the right solutions. These
achievements were made possible not only by our company,
but also by the cooperation of the chairman of the association
and all the property rights holders.

Development that respects the wishes of property rights holders (an example from this property)

Opinion 1

Like the old complex, I would like forall units to face south.

All units face south. While less thanideal from a business standpoint (asthe floor-area ratio cannot be fully
utilized), it aligns with the wishes ofthe property rights holders

17

Opinion 2

I would like you to keep the richgreenery of the old complex

We transplanted and preserved 16
trees from the site of the old complex.
After construction was completed, we
transplanted them back, ensuring richsurrounding greenery just as it had
been at the old complex.

Opinion 3

I would like there to bebarrier-free units.

We prepared a residential plan that
also considers the elderly andchildren, such as side-facing toilets
for easy assistance, bathtubs withlow edges, and minimal differences
between floor levels.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupFeatureConnecting Residents’ Thoughts and Passing on
a Historic Community to the Future

Shakujii Koen Danchi Apartment
Reconstruction Project

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Supporting further development ofexisting communities and connecting
them to the future
Abiko: Listening to property rights holders sharing their views,
we learned how much they value their community. During thereconstruction, we installed the Shakuji-ii BASE next to thesales center to keep a sense of continuity for the communitythat the property rights holders had built up so far.
Kurokouchi: Shakuji-ii BASE is indispensable. The old complex
had a strong community, something that tends to be rare thesedays. People of all ages socialized through club activities andthe summer festival had continued for 35 years. With thereconstruction, residents had to move out temporarily. At theassociation, we were concerned about keeping the community
going until everyone moved back, and about developing thecommunity from that point on. Shakuji-ii BASE has been inplace for more than a year now. The activities developing there

involve not only property rights holders but also the local community. About 60% of the right-owning households will continue to occupy the building after reconstruction. But even thehouseholds that have moved out mostly live in the neighborhood, and they make use of Shakuji-ii BASE.
Abiko: Once a community is destroyed, it cannot be restored.
So we believe it is vital that we keep the sense of community
alive until construction is finished. We had to make sure thatproperty rights holders did not lose their meeting place alongwith the building, so that was something we also focused on.
Miyauchi: To be frank, it was quite a challenge to set up andrun this, but when we think of the community of the old complex, it has clearly been worthwhile. The number of units in thisproperty has almost doubled from the 490 before to 844, so
there is a large number of new residents. We believe that this isa very important place for such people to interact with theproperty rights holders and the community.

Kurokouchi: We would also like to use this place to promote
efforts to build a new community between existing residents
and the younger generation, including newcomers in their
30s and 40s.

At the Shakuji-ii BASE community space

Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and Health

Shakuji-ii BASE, a community space for residents

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Shakuji-ii BASE was set up to help create a sustainable community. The idea was to foster
connections with new residents even before reconstruction was finished, while continuing
the community of the former housing complex. Since the space can also be used as arental space, it is becoming a place for communication in the community. As well as club
activities from the old complex, there are activities planned by staff and events held byneighborhood residents. Among other activities, property right holders and local residents
put together a local information map and town walking tour. In this way, the space serves
as a local information station, helping dispel the concerns of new residents moving to the
Shakujii area.

Shakuji-ii BASE was set up as a space for property rights holders
to socialize during the reconstruction period. It is a place of
exchange for property rights holders, new residents, andlocal neighbors.

18

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupFeatureConnecting Residents’ Thoughts and Passing on
a Historic Community to the Future

Shakujii Koen Danchi Apartment
Reconstruction Project

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment

Drawing on their experience, we areusing the strengths of the Group to
revitalize the housing complex

Biodiversity

Abiko: As well as these efforts, it is also very important to makesure the housing complex is safe. Having a safe home is thefoundation for an enjoyable, fulfilling life. During the construction site tour, we explained our measures to ensure earthquake
resistance and barrier-free accessibility with the elderly in mind.
We will continue to conduct tours by our company and thirdparty agencies, as well as previews for all new residents.

Sustainability Finance

Brillia Construction Site Tour P.54

Responding to Natural Disasters

Kurokouchi: The construction site tour was well received by
the property rights holders. I trust that your company will continue to take good care of us in the future.
Miyauchi: Our group can provide full support for condominium
management, remodeling, and even future housing changes.
We hope that we can continue to support you by advising on
all matters related to your daily living environment.
Abiko: Most of Japan’s apartment complexes are located in
the three major metropolitan areas of Tokyo, Osaka, andNagoya. As a real estate developer with operations in Tokyoand throughout Japan, we believe that we can help solve social
issues by revitalizing housing complexes.

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Revitalizing and Utilizing Real Estate Stock P.57

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Miyauchi: Many housing complexes face a range of challenges.
We aim to revitalize them as safe and secure places and tosupport the continuity of thriving communities. To this end, we
will continue striving to address the needs of property rights
holders first, while drawing from the valuable knowledge wehave gained through this project.

Shakujii Koen Danchi
Apartments
Beforereconstruction

Brillia City Shakujii-Koen ATLAS

After
reconstruction

Shakuji-ii BASE

Shakujii-Koen Station

3-127-1 Kamiishakujii, Nerima-ku, Tokyo

Location
Construction
period1967

Late June 2023 (scheduled)

31,365 m2

Approx. 68,342 m2

Number of
dwelling units

490 units

844 units(total units sold: 543 units)

Layout3DK-3LDK

1LDK~4LDK

Total floor space

a
Sh

ku

P
jii

ark

Shak

uji Riv

er

Brillia City Shakujii-Koen ATLAS

Comments from stakeholders
With the problems of the COVID-19 pandemic and the situation in Ukraine, I was
preparing myself for the move-in timing to be affected. But they proceeded without
delay. As chairman of the association, I am deeply grateful for this. This was Nerima
Ward’s first condominium reconstruction project based on the Law Concerning
Facilitation of Reconstruction of Condominiums. We appreciate that the ward
office staff were able to work closely with us to help coordinate our efforts as we
moved forward.
Shakujii Koen Danchi has been loved by its residents for over half a century,
which makes for a strongly connected community. Even after the reconstruction, I
would like it to be a place that is rich in nature and loved by the residents as well as
the surrounding residents. I am sure Tokyo Tatemono will help make that happen.

19

Mr. Takeshi Kurokouchi
Shakuji Park
Chairman, Condominium
Reconstruction Association

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group
ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

Environment

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

20

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Wellbeing

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Environmental Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Policy and Concept

Environmental Promotion System

The Tokyo Tatemono Group aims to contribute to the development of a sustainable society through environmentally friendly
business activities in accordance with its Group Environmental
Policy. We have identified promoting a decarbonized society
and promoting a recycling-oriented society as material environmental issues for the Group. To address these issues throughour business operations, we will aim to realize coexistence withthe earth and the environment, a shared value with society.

· Creating a pleasant city and living with greeneryWe will create a rich and comfortable environment for earth andpeople by utilizing the strength of greenery as much as possible
with consideration to biodiversity.

The Tokyo Tatemono Group promotes environmental
measures across the entire Group under the Sustainability
Committee, chaired by our president, and the Sustainability
Promotion Committee, a subordinate organization of the
Sustainability Committee.
We have established environmental management systems
tailored to the characteristics of each of our businesses. We
have put in place a PDCA cycle based on these systems. In
the Commercial Properties Business, which accounts for 99.1%of the energy used in our business activities, we establishedthe Environmental Measures Promotion Group. This group
operates as a specialized department within the businessdivision’s Planning Department. We also hold meetings of an
Environmental Committee with the participation of all departments in the business division. In the Residential Business,
which accounts for 0.5% of the energy used in our businessactivities, we have launched an Environmental Measures
Project Team. In this way, in both business divisions, weformulate environmental measures, share information, support· Climate change prevention that leads the community
We will actively implement environmentally friendly technologies
and ideas into our products and services to lead the community
in building a low-carbon city.

Share of Tokyo Tatemono Energy Consumption by Business(fiscal 2022; facilities subject to the Energy Conservation Act)

Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party AssuranceGroup Environmental Policy
We will help build a sustainable society through environmentallyfriendly business activities based on the following Group
Environmental Policy.

· Resource-saving activities that are kind to the earth
We will strive to reduce the use of resources and environmental
impact through all available opportunities and contribute tocreating a recycling-oriented society.

Residential Business

Management and Branches

0.5%

0.4%

· Developing employees with high environmental awarenessWe will comply with laws related to the environment and educate
and raise the awareness of our employees about the environment.

Office Building Business
99.1%

Established January 2011

21

implementation, provide guidance, manage progress, and carryout improvements to initiatives.
Other businesses and group companies are advancing theirbusinesses according to environmental guidelines establishedin line with the Group Environmental Policy.

Environmental Management in
the Commercial Properties BusinessIn the Commercial Properties Business, we have formulated
and implemented an Environmental Action Plan and Guidelines
aimed at achieving more robust environmental product planning,
attaining goals set by the Group, and establishing a PDCA
cycle. We work with tenants and customers to address a variety of environmental issues, including decarbonization, energy
conservation, resource recycling, the effective use of water
resources, and biodiversity.
Using energy more efficiently in our Commercial Properties
Business results in a significant reduction of Tokyo Tatemono’s
total energy consumption. With this in mind, when developing
new buildings, we strive to adopt environmental and energy
saving technologies for environmentally friendly buildings thatare well-received by society. For existing buildings, we promoteenergy savings by strategically renovating buildings using
energy-saving equipment. From an operating standpoint, we
also collaborate with our tenants to conserve energy andreduce environmental impact.
We have set a quantitative indicator in the form of power
consumption per floor area unit to reduce energy consumption.
Here, we target a 1% annual unit reduction averaged
over five years as a target in accordance with the Energy
Conservation Act.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Wellbeing

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Environmental Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environmental Execution Plan and Guidelines
Area

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building

Environmental Execution Plan

Guideline

New construction:

Greening

Creating rich greenerythat helps cities
transform and thrive

Promote rich greening that evokes a sense of urban transformation and vibrancy.

New construction
and renovation:
Operations:

Water Resources

Sustainability Finance
Responding to Natural Disasters

Regenerating
ecosystems withbiodiversity

Regenerate abundant, local natural settings that support rich ecosystems in which
diverse organisms compete and coexist.

New construction
and renovation:
Operations:SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Designing treeplacement to create
pleasant urban
environments withdappled sunlightand moist air.

Help create comfortable urban environments by positioning trees for optimal
shadows and heat shielding.

New construction
and renovation:

Using green assets toimprove area value

Increase the value of the area by cultivating public spaces for interaction amonglush greenery

New construction
and renovation:
Operations:

New construction:

Human Resource Investment and Development

Diversity & Inclusion

Devise planting plans that reflect local characteristics and policies. Maintainecosystems by eliminating intrusive species, devising planting plans that aim toconserve native species, and ensuring continuity with surrounding green spaces.
Conduct charitable donation and awareness outreach activities.

Promote efforts to mitigate the heat island phenomenon.

Contributing to Our Communities

Health Management / Occupational Safety and HealthCreate and maintain a plant management plan; conduct regular monitoring andproposal of plans for improvement.

Acquire and renew certifications for the preservation of existing trees and the conservation of ecosystems,
such as SEGES and ABIC certifications

Promoting a Recycling-oriented Society
Biodiversity

Aim for greening of at least 5% of the structure area and at least 50% of the exteriorarea; also promote interior greening.
Promote structure greening for all buildings, creating rich environments for users.

Explore placement plans that incorporate exterior wind paths, fluid simulations, andother factors.
As well as measures related to roof, exterior, and ground surfaces, implement a
range of other measures, including mitigating reflections from buildings; equipment
planning for mitigating thermal environment degradation; vacant space planning forwind paths; securing appropriate shade; ensuring green and water coverage ratios;and minimizing pavement area.
Plan environments and facilities that evoke a sense of closeness to nature; improvescenery by greening roadsides, etc.
Sponsor events that offer a sense of closeness to nature; also participate in local
planting plans and other initiatives.

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

22

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Wellbeing

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Environmental Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society

Area
Energyconservation

Environmental Execution Plan

Acquisition andretention of third-party
environmental
performancecertifications

External evaluation and Certification for Green Building

Guideline

Promote the construction and management of buildings, emphasizing
environmental performance. Acquire and retain third-party certification for theenvironmental performance of these buildings and contribute to sustainabledecarbonized urban development.
• Quantitative Targets
Scope In principle, all office buildings and logistics facilities newly constructed by
the Group
Targets Secure Green Building Certification and ZEB certification

Water Resources

New construction:

Biodiversity
Sustainability FinanceSocialCreating buildings
with highenvironmental
performance

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Adopting
environmentallyadvanced technology
initiatives

Risk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Using energy
management to
reduce consumption

BPI*2 of no more than 0.90, BEI*3 of no more than the target level for acquisition of
third-party certification for each property (actively work toward ZEB*4 status)
Understand and present actual primary energy consumption unit values.

Operations:
Develop buildings that offer high environmental performance while supporting
the health and comfort of workers.
Conduct environmentally friendly planning and management.
• Quantitative Targets
Scope All Tokyo Tatemono-owned properties and facilities
New construction
Use LED lighting and luminance in dedicated areas of 500 lux, energy-saving glass,Targets 1% annual unit reduction in crude oil equivalent (moving average over 5 years)
and renovation:
presence sensors. Consider interior brightness levels and encourage subdivided
lighting zones.
Renovation andStudy energy conservation measures, including energy conservation checkups.
operations:Operations:
Carry out appropriate filter cleaning.
• Quantitative Targets
Targets (1) By FY2030, reduce CO2 emissions by 40% (compared to FY2019); by
FY2050, achieve net zero emissions(2) By 2024, ensure that 50% of the electricity consumed by ourCommercial Properties Business real estate holdings is from renewableenergy sources; by FY2030, increase this to 100%.

New construction
and renovation:

Operations:

GovernanceCorporate GovernanceGreen Building Certification*1
Maintain Green Building Certification; acquire Green Building Certification forbuildings that do not yet have it

Improve environmental performance.

Promoting a Recycling-oriented Society

Responding to Natural Disasters

New construction:
Operations:Pursue environment-friendly building management in cooperation with various
building stakeholders, including customers.

New construction
and renovation:
Operations:

Install solar power generation systems; explore use of renewable energy; adopt
passive energy-saving technologies (e.g., leveraging natural lighting/ventilation,
geothermal energy); adopt daylight-harnessing technology; use insulation/heatshielding technology; install CO2 monitoring systems and high efficiency equipment.
Adopt and manage manuals for CO2 monitoring systems, identifying the amount of
renewable energy generated.
Adopt energy with lower CO2 emission factor; consider energy certificate adoption
via carbon offsets.
Promote the implementation of BEMS/visualization systems and the setting ofquantitative energy consumption targets.
We promote the disclosure of environmental data to tenants, the creation ofbuilding operation systems and management policies, and the execution of powersaving measures.

*1 In DBJ Green Building certification, a 5-star or 4-star rating, in CASBEE buildings an S-rank or A-rank rating, and in BELS a 5-star rating with ZEB certification (DBJ Green Building certification applies to long-term holdings; other certifications apply to all assets).
*2 BPI (Building Palstar Index): A standard for annual heat load established in accordance with revisions to the Act on the Rational Use of Energy calculated with PAL (Perimeter Annual Load, also called PALSTAR, the annual heat load per unit of perimeter floor space).
*3 BEI (Building Energy Index): The ratio of primary energy consumption of the designed building compared to a standard building. Based on the Energy Consumption Performance Calculation Program.
*4 ZEB (Net Zero Energy Building): A building targeting a net-zero balance of annual primary energy consumption.

23

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Wellbeing

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Environmental Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Area

Environmental Execution Plan

Environment
Environmental Management
Promoting a Decarbonized Society

Cooperating withcustomers tocontribute to a
recycling-oriented
society

Help create a recycling-oriented society by working with customers to promote thereduction, reuse, and recycling of waste.
• Quantitative Targets
Scope Long-term buildings
Targets (1) By FY2030, reduce waste emissions per unit of production by 20%
compared to FY2019(2) By FY2030, achieve a waste recycling rate of 90%.

New construction
and renovation:

Reducing
environmental impact
from water
conservation/use ofgray water

We will use water conservation and rainwater utilization to help reduce ourenvironmental impact.
• Quantitative Targets(1) Reducing water consumption
Scope Long-term buildings
Targets Reduction of water consumption units compared to the previous year
(2) Promoting the reuse of water
Scope All office buildings with a floor space of 30,000m2 or more
Targets By 2030, install gray water treatment facilities in principle in all new officebuildings that start construction

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Guideline

New construction
and renovation:

Waste and waterSocialOperations:Renovation andoperations:Operations:

New construction:

Respect for Human Rights
Supply Chain Management

Achieving long building
lifespans throughdevelopment thatconsiders future
maintenance andupgradesImproving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

Make plans during construction phases to facilitate maintenance and upgrades toensure an extended building lifespan.

New construction
and renovation:

Operations:

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Environmental
awareness

Implement trash weighing systems; plan recycling stations; plan stock spaces
enabling adequate waste separation; kitchen waste reduction, composting, etc.;
check recycling rates/waste management policies at time of construction.
Separate/reuse waste; encourage reuse and reduction of waste through tenant
meetings on separation and recycling; conduct educational activities regarding
waste separation; hold tours of waste treatment plants; state recycling requirements
in contracts; implement/operate waste reduction measures; measures to reduce
disposal of unused interior materials when tenants move in and out
Use water-saving equipment in wash basins, hot water heaters, etc.; usewater-saving toilets; implement rainwater runoff control measures; prevent waterleakage; comply with discharge standards such as the Water Pollution Prevention
Act and Sewerage Act; reuse rainwater and gray water.
Examine and ascertain the volume of water saved through renovations.
Ascertain actual water consumption and cooling tower water consumption; examine
water conservation related to cooling towers.

Create long-term repair plans; ensure the strength of core structural frames; plan foreasy separation of finishing materials from frames; plan rooms and finishes inconsideration of upkeep and maintenance, adopt ducting/piping that ensure longservice lives.
Adopt finishing materials that offer long service lives for exterior and interior walls;
include maintainability of key equipment as part of planning; consider ease of
upgrades when planning air conditioning piping, sanitary piping, high voltage wiring,and low voltage wiring; ensure maintainability of structures and deploy backup
equipment, etc., when upgrading facilities.
Share medium- to long-term repair plans with property/building managers andimplement maintenance and repairs based on these plans; calculate planned costs
and energy-savings.

Proactive use of
eco-materials andrecycled materials

Work to create a cycle of recycling by utilizing eco-materials and recycled materials.
• Quantitative Targets
Scope Long-term buildings
Targets Strive to use domestic timber and certified timber for common-areainteriors and furniture, etc.; achieve this in principle in all new officebuildings that start construction by 2030.

New construction,
renovation andoperations:

Proactively use domestic timber and certified timber, low-impact eco-materials andrecycled materials. Comply with regulations related to ozone depletion factors
related to cooling; actively engage in adopting ozone depletion factors and warming
factors for other construction materials (insulation, gas extinguishing agents, etc.).

Dissemination of
information on theenvironment andspread/improvementof environmental
awareness

Share information about the environment to promote environmental awarenessamong stakeholders such as employees, communities, and customers.
• Quantitative Targets
Scope Long-term buildings
Targets At least four times a year, engage tenants in communication about sustainability

New construction
renovation andoperations:Operations:Disclose our sustainability initiatives

Forming theEnvironmental
Committee andongoing PDCA cycles

Run environmental organizations; engage in high-impact environmental activities;
set, execute, and monitor environmental goals; engage in ongoing improvement
activities.

24

Hold events focusing on sustainability

Conduct regular surveys related to energy and environmental conservation; sponsor on-site cleanup
activities; hold energy conservation meetings; promote green leasing; conduct energy conservation efforts incooperation with tenants; formulate and manage properties based on environmental policy; determine
environmental data and confirm certification status upon the purchase of properties.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Wellbeing

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Environmental Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Environmental Management in
the Residential BusinessIn the Residential Business, we have established the Brillia
Environmental Guidelines. These guidelines provide standards
for carrying out environmental measures consistently under the
Brillia brand while aligning to changing social conditions. They
also enable us to communicate our environmental measures
clearly to customers and society. In the guidelines, we set forth
two concepts behind our creative approach to the developmentof condominiums: creating a lush green living environment; andcreating residences with reduced environmental impact.
The guidelines define a set of environmental performance
ratings with four levels of environmental friendliness. In addition
to the specifications for each level, at each stage of the projectfrom planning to design, we also check details such as theenvironmental certification rankings (CASBEE, etc.) and CO2
emission reduction for each level.

We revise these guidelines periodically in response to socialchanges and technological advancements, and in this way
continue to increase the value of the Brillia brand.

Brillia Environmental Guidelines Overview
1 Creating a lush green living environment• Create a rich sense of familiarity with nature and seasonalchanges, a comfortable living space, a landscape for theentire region; use greening to reduce the heat inside andaround the building (heat island phenomenon)• Plant trees that match local vegetation to cultivate a richnatural environment that sustains biodiversity• Provide environmental education programs to residents
to help raise awareness in local communities

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Brillia Environmental Guidelines environmental performance ratings (e.g., level set for energy conservation performance)(as of March 2023)

Human Resource Investment and Development

Level

Health Management / Occupational Safety and HealthDiversity & Inclusion

Level

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Level 1

Level 2 (Standard)

Level 3 (High level)

Apartment block

Energyconservation criteria

ZEH Oriented

ZEH Ready or higher

Residential building

Energyconservation criteria

ZEH-M Oriented

ZEH-M Ready or higher

Renewable energy classification

Excludingrenewable energy

Excludingrenewable energy

Excludingrenewable energy

Includingrenewable energy

Exclusive area
BEI (Building
Energy Index)

Standard value

1.0 or less

0.8 or less

0.8 or less

0.5 or less

Design target value

0.97 or less

0.77 or less

0.77 or less0.47 or less

Residentialbuilding BEI

Standard value

1.0 or less

0.8 or less

0.8 or less

0.5 or less

Design target value

0.97 or less

0.77 or less

0.77 or less

Housing
performance
evaluation

5-1. Insulation performance grade

Grade 4

Grade 5

Grade 55-2. Primary energy consumption
grade

Grade 4

Grade 5

Grade 625

0.47 or less

2 Creating residences with lower environmental impact• Aim to achieve low-carbon residential buildings byproactively adopting equipment and services that
contribute to global warming prevention and resource
conservation.
• Actively develop ZEH-M (Zech Mansion), which reduces
energy consumption by making the building itself highly
insulated and by using renewable energy.
• Help reduce environmental impact throughout a building’s
life cycle by using visual displays of energy consumption
to raise awareness among tenants.

Environmental Impact Assessment
When executing new development projects in Japan andoverseas, we conduct the necessary environmental impact
assessments (environmental assessments) in accordance withlaws and regulations. We create plans that leverage our expertiseto consider how each project affects the environment.
Environmental impact assessments cover a wide range ofsubjects, including greenhouse gases, water cycle, waterpollution, air and soil pollution, waste, and biological andecological systems. If a negative environmental impact is found,
we work to avoid or mitigate it.

Compliance with Environmental Laws
and Regulations
At each stage of property development and operation, we
comply with all relevant laws and regulations related to theenvironment.
There were no environmental incidents or violations ofenvironmental laws or regulations in 2022.
(Data) Environmental Management Indicators and Performance P.87

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Policy and Concept
Global efforts toward decarbonization are accelerating, asshown by the Paris Agreement adopted by the United Nationsin 2015 and the Glasgow Accord adopted at COP26 in 2021,
which calls for efforts to limit the temperature increase to
1.5°C. In 2021, the Japanese government also declared its aim
to achieve carbon neutrality by 2050.
Realizing a decarbonized society is an issue that calls for
global solutions. The real estate industry must also strive to
reduce greenhouse gas (GHG) emissions deriving from realestate holdings and business activities. The Tokyo TatemonoGroup further believes that the intensification of wind, flooding,and other natural disasters owing to GHG emissions could havea significant impact on the assets it owns. From this perspective
as well, we recognize the need to prioritize this issue.
The Tokyo Tatemono Group Environmental Policy calls for us
to lead the community in the prevention of global warming. In
addition, we have identified promoting a decarbonized society
as a material issue for the Group, and are addressing this issue
through our business. In August 2021, we set medium- andlong-term targets for reduction in GHG emissions, aiming toachieve a 40% reduction in our CO2 emissions by fiscal 2030
compared to fiscal 2019*1 and net-zero CO2 emissions by fiscal
2050.
In addition, we have set the shift to renewable energy, promotion of development of ZEB and ZEH, and acquisition ofgreen building certification as process targets.
Since setting each target, the Group has promoted andaccelerated its efforts to reduce GHG emissions. As a result, inFebruary 2023, we decided to strengthen our process targets
and bring forward the timing for achieving certain targets,

which we announced publicly. In addition, based on theserevised targets, we put in place a roadmap (action plan) for
reducing GHG emissions in the Group toward FY2050.
The roadmap is designed to achieve both sustainable growthof the Group and the promotion of a decarbonized society.

At the same time, in response to climate change risks, weare developing resilient real estate (resistant to wind, flooding,and other natural disasters).
Material Issue KPIs and Targets P.11
Initiatives and External Evaluation for Sustainability P.14
Environmental Management P.21
External Evaluation and Certification for Green Building P.33
Responding to Natural Disasters P.43

Roadmap for Reducing GHG Emissions
Assumed CO2 emissions to increase with business expansion
Actual CO2 emissions after implementation of various reduction measures

Approx.
800,000 tons Baseemissions

1

Energy saving and shift to renewable energy

2

ZEB/ZEH development

3

Improvement of CO2 emission coefficient

4

Additional reduction measures-40%

Approx.
480,000 tons Target emissions for FY2030(-40% compared to FY2019)

0

Target emissions for
FY2050 (net zero)

2019

2022

2030

2050

Sustainability Finance Reporting

Third-Party Assurance

26

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

Disclosure Based on TCFD Recommendations
Setting Up the Scenarios

Governance

Strategy (scenario analysis)

Chaired by the President, the Group’s Sustainability Committee,
deliberates, discusses, and reports on important matters suchas the identifying climate change risks and opportunities, GHG
emission reduction targets and policies, and the status of ourefforts to address these issues. Important matters discussed
by the Committee are submitted to the Board of Directors orreported to the Board of Directors, which has oversight over
the Committee. In addition, the Sustainability Promotion Council,
a subordinate body of the Committee that is composed ofcorporate and business divisions, discusses matters to bebrought before the Committee, considering specific measures
for achieving the goals that have been set through discussions
at the Committee.

We carry out a scenario analysis, led by the Sustainability
Committee, in collaboration with corporate and businessdivisions. This examines the potential impact of climate change
itself and changes in the business environment due to longterm policy trends related to climate change on our group’sbusiness and management.

Risk Analysis Review Process

The Scenarios Used in the Analysis

For our scenario analysis, we set up future worlds (scenarios).
In 2020, drawing from scenarios published by the IPCC*1 andthe IEA*2, we based our analysis on two scenarios: the 4°C
scenario, in which the average temperature rises by 4°C or
more compared to preindustrial levels by 2100, and the 2°C
scenario, in which the average temperature rise is limited to lessthan 2°C. In 2022, we added the 1.5°C scenario, which limits
the increase in average temperature to 1.5°C.
*1 IPCC (Intergovernmental Panel on Climate Change): an institution that provides clear
scientific opinions of the status of climate change and its socioeconomic impact.
*2 IEA (International Energy Agency): an independent body within the OECD that facilitates
policy cooperation on energy security and energy.

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Estimate business
impactDiversity & Inclusion

Assess materiality

Health Management / Occupational Safety and Health

Identify risks andopportunities

Human Resource Investment and Development

Set up scenarios

Contributing to Our Communities

Scenarios

Scenario Content

4°C scenario

A scenario in which the averagetemperature rises by about 4°C
compared to pre-industrial levels asa result of failure to introduce stricter
government policies and strengthen
regulations, such as regulations tocurb GHG emissions, and of failure bybusinesses to take effective action in
response to climate change. Acuteeffects include more frequent extreme
weather events and more intense
heavy rainfall, while chronic effects
include rising sea levels.

Reference
Scenario

IPCC SSP5-8.5(RCP 8.5)
IEA STEPS

Scenarios

Scenario Content

Reference
Scenario

1.5C/
2°C scenario

A scenario in which the averagetemperature rise compared to thepre-industrial levels is kept below
1.5°C or 2°C by improving low-carbon
technologies, expanding renewableenergy, and promoting energy
conservation. In this scenario,
companies around the world arestrongly required to respond toclimate change by introducing carbon
taxes and strengthening policies toregulate emissions in order to curb
GHG emissions.

IPCC SSP1-1.9(RCP 2.6)
IEA NZEIEA SDS

Sustainability Finance Reporting

Third-Party Assurance

27

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Identifying Risks and Opportunities/Assessing Materiality

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building

Identified Climate Change Risks and Opportunities and Materiality

Focusing on the Group’s core businesses, the Commercial
Properties Business and Residential Business, we identified
the main risks and opportunities and assessed their materiality
in terms of their expected degree of impact on the Group’s
finances. The period of impact was categorized into
short-term (1-5 years), medium-term (5-10 years), andlong-term (>10 years).

Category

Policies

Water Resources

Biodiversity
Sustainability Finance
Responding to Natural Disasters

Transition risk

Promoting a Recycling-oriented Society

Regulations

Technology
andMarkets

SocialRespect for Human Rights
Supply Chain Management

Reputation

Improving Quality and Customer Satisfaction

Item

Medium-term—

MediumPrice hikes for construction materials,
construction costs, etc.

Medium-term—

MediumHigher costs of converting new buildings to
ZEB/ZEH

Medium-term

Low

Low

Higher costs of introducing decarbonizedbuilding materials

Medium-term

MediumMediumIncrease in cost of energy-saving renovation ofexisting buildings

Medium-term

Low

Low

Higher utility costs due to change in energy mix

Short- tomedium-term—

Low

Higher utility costs due to higher demand forfossil fuels

Short- tomedium-term

Low—

Burden from renewable energy
procurement

Higher renewable energy procurement costs

Short- tomedium-term

Low

Low

Ensuring disaster preparedness
and resilience

Higher costs of ensuring disaster preparedness
and resilience

Short-term

Low

Low

Delayed construction schedule due to supply
chain paralysis or disruption

Short-term——

Costs arising from countermeasures andconstruction period delays

Short-term——

Loss of rental income in the event of flooding

Short-term

Low

Low

Restoration costs arising from building damage
and flooding

Short-term

Low

Low

Adoption of carbon pricing

Stricter standards for GHG
emissions and energy saving

Higher unit cost of grid electricity

Contributing to Our Communities

Diversity & Inclusion

Physical risks

Health Management / Occupational Safety and Health

Governance

Acute

Chronic

Corporate GovernanceRisk Management

Data
Sustainability Finance Reporting

Opportunity

ComplianceTechnology

Consumer
behavior

Markets

Third-Party Assurance

Materiality
4°C scenario 1.5°C/2°C scenario

Imposition of carbon tax on own emissions(Scope 1 and 2)

Revitalizing and Utilizing Real Estate Stock

Human Resource Investment and Development

Period ofimpactImpact on Group business

Frequent and intense extreme
weather events

Higher insurance premiums

Short-term

Low

Low

Rise in average temperature

Higher utility costs

Short-term

Low

Low

Efficiency Improvements with ZEB
and ZEH Development

Reduction of utility costs

Short-term

Low

Low

Procurement of renewable energy
through self-consignment

Reduction in utility costs and renewable energy
procurement costs

Short-term

Low

Low

Improved earnings from highenvironmental performance
properties

Higher sales due to higher evaluationof ZEB/ZEH

Short- tomedium-term—

Medium

Improvement ofenergy-saving effects

Addition of energy-saving effects torental income

Short- tomedium-term—

Low

Expansion of ESG Finance

Reduction in financing costs

Short-term

—

Low

28

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Estimating Business Impact

Feature:Environment
Environmental Management

We quantitatively assess the identified climate change risks andopportunities for their impact on the Group’s 2030 financials.
For risks and opportunities for which quantitative data is notreadily available, we carry out a qualitative analysis.

Promoting a Decarbonized Society

Risk Management

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management

We have established a Risk Management Committee chairedby the President, which is responsible for overseeing risk management for the Tokyo Tatemono Group. The Risk Management
Committee identifies important risks that could have a significant impact on the management of the Group, evaluates andanalyzes the relevant risks, formulates preventive measures andcountermeasures, and monitors the status of countermeasures.
The Committee also submits regular reports to the Board of
Directors, which oversees its activities.
Recognizing climate change risk as one of the most significant risks, we have established a PDCA cycle for risk management. The Sustainability Committee considers various policies
and strategies for minimizing risk and seizing opportunities, andother risk management issues. The Sustainability Promotion
Council, a subordinate body of the Sustainability Committee,
monitors climate change-related measures flexibly to consider
and implement effective countermeasures. In this way, we
consider and carry out effective measures and review risks andopportunities in an appropriate manner.

Impact on the Group’s Business Profit
Factors increasing business profit

Factors decreasing business profit

Changes in consumer behavior· Higher sales due to higher
evaluation of ZEB/ZEH· Addition of energy-saving
effects to rental income

Extreme weather events· Decrease in sales associated withflooding of buildings caused byfrequent and severe heavy rain

Introduction of carbon pricing· Imposition of carbon tax on own emissions· Higher prices of building materials, construction
costs, etc., due to price pass-through ofcarbon taxes

Highersales

Stricter standards for GHG emission andenergy saving· Cost of converting new buildings to ZEB/ZEH· Cost of introducing decarbonizedbuilding materials· Cost of renovating existing buildings forenergy saving
Rise in electricity prices and the shift torenewable energy· Rise in unit cost of grid electricity due tochange in energy mix
increase inutility costs· Higher renewable energy procurement costs

Lower
sales

Expenses
Sales

Risk Management P.79

Indicators and Targets

Sustainability Finance Reporting

Third-Party Assurance

Extreme weather events· Paralysis, disruption, and delays in supply
chains and logistics due to extreme weather· Decrease in work efficiency at construction
sites and delays in construction schedules due
to frequent heat waves, high temperatures, etc.
· Restoration costs due to building damage andflooding caused by extreme weather events· Higher insurance premiums
Rising temperatures· Higher utility costs due to rising temperatures

Compliance

Data

Highercost

Recognizing the importance of reducing GHG emissions tominimize the risk of climate change, the Tokyo Tatemono Grouphas included medium- and long-term targets for reducing GHG
emissions in our KPIs and targets. We conduct quantitative
monitoring of GHG emissions and announce the results of thismonitoring.

Business
profit29

Developing properties with high environmental
performance / implementing energy saving· Lower utility costs due to ZEB/ZEH
development· Lower utility costs and procurement
costs due to procuring renewable energy
through self-consignment· Lower financing costs through expanded
use of ESG finance

Lower
cost

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Biodiversity

In addition, we have set a short-term target of reducing ourenergy consumption per unit of production by 1% each year ona five-year moving average basis. As medium- to long-termgoals for GHG emissions reduction, we have set the following
targets: a 40% reduction of CO2 emissions by FY2030 compared to FY2019; and net zero CO2 emissions by FY2050.
We have also established process targets for introducing
renewable energy, promoting ZEB/ZEH development, andacquiring Green Building Certification. Going forward, we willcontinue to work to further conserve energy and reduce ourenvironmental impact.

Sustainability FinanceMaterial Issue KPIs and Targets P.11

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Image of Onsite Consumption and Self-Consignment Business

Shift to Renewable Energy
Generation and Use of Renewable Energy

Development of Mega Solar BusinessPowertransmission anddistribution network

Transformer substation

CPB

RB

The Group is promoting initiatives for generating and using
renewable energy.
Some of the office buildings and for-sale condominiums that
we have developed use electricity (renewable energy) generated
by solar panels installed on the rooftops of their facilities(self-consumption). In addition, at several locations in our
T-LOGI series of logistics properties, we are also engaged inself-consignment, whereby we transmit the surplus electricity(renewable energy) generated by the solar power generationequipment installed on the rooftop of each facility to ourcommercial facilities and office buildings.
We expect the amount of electricity generated by the T-LOGI
series of logistics properties to increase in the future. We will
accelerate our efforts to promote a decarbonized society by
expanding the areas where we conduct self-consignment andthe facilities where we transmit electricity for self-consignment.

TOPICS

Commercial
power

Property owned by
Tokyo Tatemono(SMARK ISESAKI, etc.)

Retail electric utility

Switching to Renewable Energy

CPB

RB

In our office buildings, commercial buildings, and rental condominiums, we are working to switch to renewable energy. As
part of this effort, we use power that has Non-Fossil FuelCertificates with Tracking. Provided by power companies,
these certificates verify the environmental value of electricity
generated from solar power or biomass.

T-LOGI logistics facilities website (Only available in Japanese)

30

OTHERsTokyo Fudosan Kanri has been involved in the mega solar
business since 2012. Through this company, we are developing
solar power plants mainly in the northern Kanto region. As ofthe end of December 2022, we had eight plants with a total
power generation capacity of approximately 13 MW.

Selfconsignment

T-LOGI (ZEB Logistics)

RB

Since May 2016, we have been using the framework ofGreen Power Certificates to switch to 100% renewable energy
sources for the electricity used in our Brillia brand condominium
model rooms. In 2022, we utilized Green Power Certificates forapproximately 660,000 kWh of electricity.

Solar power (electricity generated)

Electricity
Surplusconsumedelectricity
onsiteUse of Green Power Certificates

Received the Minister of Land,
Infrastructure, Transport andTourism Award, the Achievement
Award of the Real Estate Instituteof Japan for 2022
The energy self-consignment initiative at our T-LOGI
series of logistics properties received the Minister ofLand, Infrastructure, Transport and Tourism Award, thehighest award from the Real Estate Institute of Japan.
The award recognized our efforts to achieve carbon
neutrality and the advanced nature of the pilot projectthat enabled it. The project is expected to achievecarbon neutral real estate in the city center, where
there is limited room for renewable energy supply.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Promotion of Development of ZEB and ZEH
Development and Promotion of ZEB and ZEH

CPB

RB

In the Commercial Properties Business, Tokyo Tatemono has
been a registered ZEB Leading Owner with the Sustainable
open Innovation Initiative (SII) since the year in which that initiative was established. As such, we are committed to helping
promote ZEB.
In 2019, following a partial assessment of the office area ofthe property, Hareza Tower (Toshima-ku, Tokyo; completed in
May 2020) became the first high-rise mixed-use building inJapan to be certified as ZEB Ready.
In the Residential Business, Tokyo Tatemono is actively
involved in developing ZEH-M (ZEH condominiums), having beenamong the first to join the ZEH Developer Registration Systemestablished in May 2018. In 2018, Brillia Tsurumaki (Setagaya-ku,
Tokyo; completed in 2019) became the first building in Tokyo to
be selected by the Ministry of Economy, Trade and Industry for
the Fiscal 2018 High-rise ZEH Demonstration Project (buildings
with 6 to 20 floors of residential use). In 2019, Brillia Tower
Seiseki Sakuragaoka BLOOMING RESIDENCE (Tama City,
Tokyo; completed in September 2022) became the first buildingin the Tokyo metropolitan area to be selected for the Ministry of
Economy, Trade and Industry’s Fiscal 2019 Ultra High-rise
ZEH-M Demonstration Project (buildings with 6 to 20 floors ofresidential use).
As of December 2022, the Commercial Properties Businesshas achieved ZEB Ready status at two office buildings and
ZEB status in seven logistics properties. In the Residential
Business, we have achieved ZEH-M Oriented at two for-salecondominium properties.
Material Issue KPIs and Targets P.11
External Evaluation and Certification for Green Building P.33

ZEB
classification

Oriented

Ready

NearlyZEB

Energy conservation
only

Energyconservation
only

Energyconservation +energygeneration

Energyconservation +energygeneration

75% or more

100%

Basic building 30% or more 40% or more 50% or more

Hospitals,commercial
facilities, etc.
ZEH-M
classification

Basic building

Offices,factories, etc.

Energy conservation only

Energyconservation +energygeneration

Energyconservation +energygeneration

Energyconservation +energygeneration

20% or more

50% or more

75% or more

100%

ZEH-M Oriented

ZEH-M Ready Nearly ZEH-M

ZEH-M

Reduction in Greenhouse Gas Emissions
Adoption and Upgrading ofEnergy-saving Equipment and Devices

CPB

RB

We have set a short-term target of reducing our energy consumption per unit of production by 1% each year on a five-year
moving average basis, and are working to conserve energy andreduce our environmental impact.
In our long-term office buildings and for-rent condominiums,
we are actively adopting and upgrading energy-saving equipment

31

and devices. In particular, we are systematically promoting theuse of LED lighting in our long-term buildings. As of the end of
FY2022, we had already completed or were in the process of
converting to LEDs at all of our long-term buildings.
Tokyo Tatemono has been certified as an S-class operator(a business with excellent energy conservation)—the highest
level in the business classification evaluation system of theEnergy Conservation Law—for eight consecutive years since
fiscal 2016, when the system began operating. Going forward,
we will continue to work as an S-class operator to further
conserve energy.

M-NexT Joint Research with Keio University

CPB

Since July 2021, Tokyo Tatemono has been engaging in a joint
research project, called M-NexT, with Professor Wanglin Yanof the Keio Research Institute at the Shonan Fujisawa campusof Keio University. The project focuses on decarbonized sustainable urban development in the Yaesu, Nihonbashi, andKyobashi areas of central Tokyo. The project name is a reference
to the M-NEX platform developed by Professor Yan.
The project applied the M-NEX platform to Tokyo Square
Garden (Chuo-ku, Tokyo; completed in 2013), which incorporates a range of environmental technologies. By comparing
data from before and after the development, it examined various
environmental initiatives in the building, including energy
conservation and energy generation.
* A platform supporting decarbonization and sustainable urban development. M-NEX
takes a composite view of a city from the three perspectives of food (F), energy (E),and water (W), quantifying the results using a unique assessment tool called FEWprint.

M-NEX

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Addressing the diverse needs of customers and society

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Decarbonized Society

ESG Management
Initiatives and External Evaluation for Sustainability

Promotion of Use of Wood Materials

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

CPB

RB

Tokyo Tatemono believes in the importance of using wood
appropriately as a construction material. Wood not only
absorbs CO2 and stores (fixes) carbon, it also requires lessenergy than steel and reinforced concrete during manufacturing,processing, and construction, which helps curb CO2 emissions.
It is also a recyclable resource that can be reused as building
materials after buildings are demolished. This helps to address
our material issues of promoting a recycling-based anddecarbonized society.
Having set targets for promoting the use of wood materials,
we are advancing the use of domestic and certified woodmaterials for interiors and furnishings of common areas in our
new long-term office buildings and for-sale and for-rent condominiums.

Introduction of Internal Carbon Pricing System
Tokyo Tatemono has begun introducing internal carbon pricing.
This works by converting CO2 emissions into monetary values
to visualize the impact of climate change on the Group’s
operations and the effects of energy-saving measures and theintroduction of renewable energy. The purpose is to forecast
the additional costs of introducing a carbon pricing system inJapan in the future and to accelerate efforts to promotea decarbonized society.

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

In the Commercial Properties Business, we hold an SDGs
Promotion Council in cooperation with tenants every year. This
project shares information on and discusses general sustainability issues such as energy-saving measures, the use ofrenewable electricity, and waste separation and recycling.
We explain our energy-saving activities and GHG emissions
reduction targets, and introduce tenants’ energy-saving efforts,
as we strive to enhance the energy-saving activities of both
our company and tenants.

Introduction of Green Lease Provisions

Collaboration and Co-creation with Customers
Communicating with Tenants/Occupants

CPB

RB

Based on KPIs and targets for collaboration and co-creation
with customers, we are actively engaged in sustainabilityrelated communication with tenants in our long-term buildings
and with residents of our for-sale condominiums andfor-rent condominiums.

CPB

In buildings owned by our company, we are working with tenants to introduce green lease clauses into the template of thelease contracts that we sign with our tenants. The aim of thisis to reduce the environmental impact of energy conservationand other measures and to improve the working environment
even in dedicated areas.
The percentage of our long-term buildings that have green
lease clauses was approximately 17% at the end of fiscal 2021
and approximately 56% at the end of fiscal 2022. One example
is an agreement in which LED lighting was incorporated in
exclusive areas and both Tokyo Tatemono and the tenant benefit from the effect of lower electricity fees from the resulting
electricity conservation.

Providing a Visual Display of Energy Consumption

CPB

In light of growing tenant sensitivity toward energy conservation, we adopted an electricity visualization system at Tokyo
Tatemono Yaesu Building (Chuou-ku, Tokyo; completed
November 2011). The new system displays graphs of daily,
monthly, and annual electricity consumption and year-on-yearcomparisons. It also allows tenants to browse throughthe graphs.
At Shijo-Karasuma FT Square (Kyoto City, Kyoto; completed

32

March 1998), in conjunction with the replacement of the central
monitoring system in fiscal 2019, monitors were installed on thefirst basement floor and first floor that display the amount ofeach utility (electricity, gas, and water) being used in the building each day.
Visually displaying energy consumption in this way enables
tenants, the building management company and Tokyo
Tatemono to work together as a team to increase
environmental awareness.

TOPICS

Received the Minister of Economy,
Trade and Industry Award at the2022 Energy Conservation Awards
Tokyo Tatemono received the Minister of Economy,
Trade and Industry Award (ZEB/ZEH field), the highest
award in the energy conservation case study categoryof the 2022 Energy Conservation Grand Awards, for our
various initiatives to realize ZEB at Hareza Tower. The
award recognized a number of features as advanced
and operational innovations that could provide a reference for promoting ZEB. These included the development and adoption of grid-type air conditioners andgrid-type humidifiers, variable temperature control of
air conditioner refrigerant using sensing data, andillumination intensity of 500 lx in office rental rooms.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate Stock

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

External Evaluation and Certification for Green Building

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Policy and Concept

Highest Ranking in ESG Benchmark GRESB

Acquisition of DBJ Green Building Certification

The Tokyo Tatemono Group recognizes that, to meet the
expectations and demands of our tenants, investors, and otherstakeholders, it is essential both to develop and operate realestate with high environmental and social awareness and to
make open disclosure of our performance and initiatives related
to such real estate.
We have identified promoting a decarbonized society as amaterial issue for the Group. To address this issue through ourbusiness operations, we have established a KPI and target of,in principle, acquiring green building certification* for all newly
constructed office buildings, logistics properties, and for-rentcondominiums. We also have a policy of acquiring environmental certification as far as possible for existing office buildings
and for-rent condominiums.

In the GRESB* Real Estate Evaluation, a benchmark that
evaluates ESG initiatives in the real estate industry, Tokyo
Tatemono is the only real estate developer in Japan to receive
the highest rating of 5 stars for six consecutive years in theStanding Investments Benchmark, which evaluates real estate
management portfolios.
In fiscal 2022, we were selected for the first time as a Sector
Leader*2 in the Listed/Asia/Diversified sector.

DBJ Green Building Certification* is a system established by
the Development Bank of Japan Inc. to evaluate and certify realestate projects that are needed by society and the economy.
The certification is based on a comprehensive evaluation that
includes not only the environmental performance of the realestate but also its response to various stakeholders, including
disaster prevention and consideration for community. The sustainability of the real estate is evaluated from five perspectives:
the environmental performance of the building, tenant comfort,crisis preparedness, diversity and consideration of the surrounding environment, and collaboration with stakeholders.
Initiatives are awarded a rank between one and five stars.
Tokyo Tatemono will continue to develop real estate in
response to the social demands of real estate stakeholders andthe diversification of tenant needs, aware of our impact on theenvironment and society.

1*1 GRESB (Global Real Estate Sustainability Benchmark). An ESG benchmark specializing
in real estate, established by a group of European pension funds.
*2 A designation awarded to participants with the highest overall score and participants witha score differential of 1 point or less in both the regional and property use categories.

* DBJ Green Building Certification, CASBEE Building, etc.

ESG-related KPIs and targets; progress P.10

* Evaluation by rank—Five Stars (top 10%): Building with the top class environmental andsocial awareness in Japan; Four Stars (top 30%): Building with exceptionally highenvironmental and social awareness; Three Stars (top 60%): Building with excellent
environmental and social awareness; Two Stars (top 85%): Building with highenvironmental and social awareness; One Star (top 100%): Building with satisfactory
environmental and social awarenessImproving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Governance

Acquisition Rate of Green Building Certification* (as of December 31, 2022)• Acquisition Rate of Certification for• Acquisition Rate of Certification for
All Properties Owned and Managed by the Leasable Area of Office Buildings
Tokyo Tatemono

Corporate GovernanceRisk Management

62.5%

Certification
Acquired

66.6%• Acquisition Rate of Certifications per
Leasable Area of Residential Buildings

Certification
Acquired

27.2%

Certification
AcquiredCompliance

Data
Sustainability Finance Reporting(Data) Acquisition Rate of Green Building Certification P.88

Third-Party Assurance

33

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate Stock

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

External Evaluation and Certification for Green Building

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:DBJ Green Building Certification

Environment
Environmental Management
Promoting a Decarbonized Society★★★★★

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance★★★★

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and Health

BELS*1

Properties with Green Building Certification(as of December 31, 2022)★★★

Hareza Tower
Otemachi Tower
Tokyo Square Garden
Nakano Central Park SouthSMARK Isesaki
Brillia ist Tower Kachidoki
Brillia ist Nakano Central ParkTokyo Tatemono Nihonbashi Building
Tokyo Tatemono Yaesu Building
Osaki Center Building
Empire Building
Tokyo Tatemono Sendai Building
Shinjuku Center Building
Tokyo Tatemono Shijo-Karasuma Building EAST
Yokohama First Building
Nihonbashi TI Building
Shijo-Karasuma FT SquareTokyo Tatemono Umeda Building
Brillia ist Machiya
Brillia ist Shibuya Honmachi
Brillia ist Ueno
Brillia ist Akabane★★★★★

Hareza Tower (Office Section)
Tokyo Tatemono Shijo-Karasuma Building EAST
T-LOGI Yokohama-Aoba
T-LOGI Narashino
T-LOGI Fukuoka
T-LOGI Narashino II
T-LOGI Ayase
T-LOGI Kazo
Brillia Tsurumaki
Brillia Tower Seiseki Sakuragaoka
BLOOMING RESIDENCE★★★★

Shijo-Karasuma FT Square (Office Space)★★★

Otemachi Tower★★

Empire Building

CASBEE*3 Building (New)S rankHareza Tower
Tokyo Tatemono Shijo-Karasuma Building EAST
T-LOGI Ayase

A rank

T-LOGI Yokohama-Aoba (CASBEE Yokohama)
T-LOGI Narashino
T-LOGI Narashino II
T-LOGI Ayase

CASBEE*3 Real Estate

S rankNagoya Prime Central Tower

CASBEE*3 Wellness Office

S rankTokyo Tatemono Yaesu Building
Tokyo Tatemono Shijo-Karasuma Building EAST

ZEB/ZEH*2

ZEB

T-LOGI Yokohama-Aoba
T-LOGI Narashino
T-LOGI Fukuoka
T-LOGI Narashino II
T-LOGI Ayase
T-LOGI KazoZEB ReadyHareza Tower (Office Section)
Tokyo Tatemono Shijo-Karasuma Building EAST

ZEH-M
Oriented

Brillia Tsurumaki
Brillia Tower Seiseki Sakuragaoka
BLOOMING RESIDENCE

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data

ABINC Certification*4 (Association for Business Innovation in harmony
with Nature and Community® Certification)

Otemachi Tower / Tokyo Square Garden

SEGES certification*5 (Urban Oasis)

Otemachi Tower / Tokyo Square Garden*1 BELS (Building-housing Energy-efficiency Labeling System) is a guideline establishedby the Ministry of Land, Infrastructure, Transport and Tourism to accurately evaluate
and display the energy saving performance of nonresidential buildings.
*2 ZEB (Net Zero Energy Building) is a building that is designed to achieve a net-zerobalance of annual primary energy consumption.
ZEH (-M) (Net Zero Energy House (-M)) is a house that is designed to achieve a
net-zero balance of annual primary energy consumption.
*3 CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is amethod for evaluating and grading the environmental performance of structures*4 ABINC Certification is a third-party evaluation and certification system for biodiversity
conservation efforts, using the Japan Business Initiative for Biodiversity-developed
Association for Business Innovation in harmony with Nature and Community®,
Certification Guideline and the Land Use Score Card® as evaluation standards.
*5 SEGES Certification is the Social and Environmental Green Evaluation System

Sustainability Finance Reporting

Third-Party Assurance

34

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Water Resources

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Policy and Concept
As water shortages become even more severe worldwide,
developed nations and the rest of the world face demands tocontinuously improve the efficiency of water consumption.
The Tokyo Tatemono Group Environmental Policy includes
a call for resource-saving activities that are kind to the earth.
We have identified promoting a recycling-oriented society as amaterial issue for the Group. To address this issue through ourbusiness operations, we have established KPIs and targets
related to water resources. With regard to reducing water consumption, we aim for a year-on-year water consumption unitload reduction of long-term buildings*. To promote the use ofrecycled water, we aim to equip, in principle, all new officebuildings that have a total floor area of over 30,000m2 withgray water treatment facilities by fiscal 2030.
In the Commercial Properties Business, we have set a
management plan for water use that applies in principle to allproperties owned by Tokyo Tatemono. The amount of waterused is monitored monthly for each property. If there is a large
increase or decrease compared to the amount used in thesame month of the previous year, we check the reason for theincrease or decrease. This helps to ensure appropriate water
use in the future.
As a developer, Tokyo Tatemono recognize that water
resources are an essential element for the continued creation ofrich and comfortable spaces. We will strive to reduce the useof resources and lessen environmental impact through all available opportunities including conserving the use of water andrecycling rainwater and miscellaneous wastewater.
* 36 major office buildings for which Tokyo Tatemono has energy management authority

ESG-related KPIs and Targets; Progress P.10
Environmental Management P.21
(Data) Water Resources: Indicators and Results P.86

Effective Use of Water Resources
CPB

Reducing Water Usage

Other Water Resources Initiatives
RB

In all the properties we develop in our Commercial Properties Business and Residential Business, we prioritize the useof water-saving devices such as toilets and faucets that use
less water to flush away waste. In the Commercial Properties
Business, we have established a repair and investment plan
on a 10-year span for existing buildings. In addition to systematically promoting renovation work, we are systematicallyswitching to water-saving equipment. At Shijo-Karasuma FTSquare, we achieved a significant reduction in water usage
in common areas by installing water-saving sanitary equipment and automatic mixed-flush sinks as part of work torenovate the toilets carried out from 2019 to 2021. The
common areas used 9,913m3 of water in 2021 compared to23,261m3 in 2018—a reduction of about 57.3%*. We also
work with our partners and tenants to conserve water in ourdaily operations and management.
Beyond the Commercial Properties Business, we are actively
moving forward with similar efforts in the Residential Businessas well. In private areas of the for-sale and for-rent condominiums we develop, we are actively adopting water-saving fixtures,such as showers and faucets and toilets.
* This figure includes other effects, such as less frequent toilet use due to COVID-19.

Promoting Water Recycling

CPB

In buildings above a certain scale, such as Tokyo Square
Garden, Nakano Central Park South, or Hareza Tower, we areproactively introducing facilities to use rainwater and miscellaneous wastewater generated in the building locally as “graywater.” For example, we are promoting the recycling of water
resources by filtering rainwater or treating wastewater fromcooling towers or tenant kitchens for non-potable uses such as
toilet flushing and sprinkling water for planting in exterior areas.

Conducting Water Stress and Water Risk Assessments
Using Aqueduct, an assessment tool developed by the World
Resources Institute (WRI), as of December 31, 2022, we had
conducted water stress and water risk assessments for allproperties developed and operated by the Group in Japan andoverseas. No properties in Japan were located in areas rated“High” or higher, and therefore no water was withdrawn orused in high-risk areas. Certain overseas properties are locatedin areas with a “High” rating. We will continue regular monitoringin the future.

Responding to Laws and Regulations on
Water UseCPB

We have installed wastewater treatment facilities in buildingsthat are subject to water pollution laws and ordinances. We
treat wastewater to ensure that it complies with standards
before discharging it into public water bodies such as sewers,
rivers, and the sea.
There were no violations of water use-related laws or
regulations (such as those governing water quality and quantity)
in FY2022.

Collaborating with External Parties on
the Effective Use of Water Resources
We are also working with industry associations to promote theeffective use of water resources.
Tokyo Tatemono is a member of the Environmental Committeeof the Real Estate Companies Association of Japan. In addition,
the Committee’s Real Estate Industry Environmental Action
Plan, includes specific action goals, such as introducing
high-efficiency water-saving fixtures, automatic faucets, andautomatic flushing devices.
Initiatives and External Evaluation for Sustainability P.14

Third-Party Assurance

35

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Recycling-oriented Society

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Policy and Concept
Pollution of the air, soil, and water caused by waste andhazardous substances and the depletion of natural resources
are issues shared by all of society. Businesses have an obligation to reduce the waste and hazardous substances generated
by their activities and use natural resources effectively.
The Tokyo Tatemono Group Environmental Policy includes
a call for resource-saving activities that are kind to the earth.
We have also identified promoting a recycling-oriented society
as a material issue for the Group. To address this issue throughour business operations, we have set KPIs and targets relating
to waste emissions from our long-term buildings.* We have set
targets for fiscal 2030 of reducing waste emissions by 20%
compared to fiscal 2019, and achieving a waste recycling rateof 90%. We are carrying out measures aimed at achieving
these targets.
The Group recognizes that we must work to prevent pollutionof the air, soil, and water and to use natural resources effectively.
We strive to achieve this throughout the entire life cycle of eachbuilding, from planning and design to construction, operationand management, as well as demolition. Through these efforts,
we are working to reduce our environmental impact.
In the development of buildings, we carry out our planningand design and formulation of construction plans in a way thatconsiders environmental and life-cycle assessments. In operation and management, we strive to reduce waste while curbing
and properly managing hazardous substances. In this way, ateach of the stages of operation, management, and demolition,

we work to prevent air, soil, and water pollution and to use
natural resources effectively.
* Our long-term buildings and commercial facilities for which we have substantial energy
management authority and for which we have submitted a written plan for waste reuse
and reduction.

Environmental Management P.21
(Data) Waste Emissions and Recycling Amount / Recycling Rate P.87

Waste Reduction Initiatives
The Group carries out a range of initiatives such as promoting
the 3Rs (Reduce, Reuse, and Recycle), aimed at reducing
waste. We collaborate and co-create not only within theGroup, but also with tenants of the office buildings owned andoperated by Tokyo Tatemono as well as residents of thecondominiums we sell and rent.

Introduction of a Centralized Waste
Management System

CPB

To properly and accurately manage and understand waste, we
introduced a centralized waste management system using
electronic manifests at the office buildings owned and operatedby Tokyo Tatemono.

Collaborating and Co-creatingwith Customers

CPB

RB

At the office buildings owned and operated by Tokyo Tatemono,
we hold regular Waste Committee meetings in cooperation with
our tenants to promote the 3Rs (Reduce, Reuse, Recycle)
through resource saving and waste reduction, garbage sortingData

games, and explanations from the government on the topic ofwaste. We also hold regular SDGs promotion meetings fortenants, which also take up the theme of garbage separation.
In the condominiums we sell, we are working on installinga facility called “GOMMY” that is designed to be a garbage
disposal and management area that people will enjoy using.
Using bright interior colors and pictorial signs, we created afriendly design for the garbage disposal area. In this way, we areencouraging residents to take a greater interest in waste while
also promoting thorough separation and reduction of waste.

Using Reusable Bottles to Eliminate
the Use of Paper Cups

CPB

Against the backdrop of mounting global concern about theneed to curb plastic waste, there is a growing interest in theuse of paper materials to reduce the amount of plastic used.
However, the paper cups that are used frequently in officebuildings are often disposed of as combustible waste.
Tokyo Tatemono conducted a demonstration experiment
aimed at reducing waste by encouraging employees to bring
their own reusable bottles to work as a means to eliminating
the use of paper cups. The project involved approximately
300 of our employees who work on the 7th floor of the Tokyo
Tatemono Yaesu Building (Chuo-ku, Tokyo; completed in
November 2011).
As a result of the demonstration experiment from April to
May 2022, we succeeded in reducing our paper cup waste byaround 50 kg (equivalent to 300 kg per year on an annualizedbasis). We are currently extending the use of personal reusablebottles to all employees working at the head office andbranches, which we expect will reduce paper cup waste byaround 860 kg per year at the head office.

Sustainability Finance Reporting

Third-Party Assurance

36

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Contributing to a safe and secure society

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Promoting a Recycling-oriented Society

ESG Management
Initiatives and External Evaluation for Sustainability

Recycling Waste Materials

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

CPB

At the office buildings we own and manage, we are promoting
initiatives to reduce waste by using the waste generated asa resource. We are also working to incorporate various
approaches by conducting demonstration experiments andpilot installations.
We collect and recycle used paper discharged frombuildings such as Tokyo Tatemono Yaesu Building and reuse it
as toilet paper. By putting waste recycling into practice, weplan to foster recycling awareness among our employees
and tenants.
At Shinjuku Center Building (Shinjuku-ku, Tokyo; completed
October 1979), we conducted a trial to demonstrate the conversion of organic waste generated and incinerated at the officebuilding into fuel.
We introduced a trial initiative at Otemachi Tower (Chiyoda-ku,
Tokyo; completed April 2014) that collects unsold and uneaten
leftovers generated by restaurant tenants. The food waste isthen fermented and decomposed into compost at the recycling
center instead of being disposed of as waste.
Tokyo Square Garden (Chuo-ku Tokyo; completed March2013) conducted a demonstration experiment in which PET
bottles and other plastic waste from tenants’ offices was sorted
and processed into pellets for use as a raw material for new
plastic office supplies.

Valuable Recycling of Waste

Tokyo Fudosan Kanri, which carries out office building
management and interior work, recycles construction industrial
waste as valuable materials*. These materials, which are mostly
made of metal, are used in move-in construction, restoration
construction, and equipment restoration. They include steel
partitions, OA floors, fluorescent lamps, air conditioners, electric wiring, cables, piping, and ventilation ducts. The company
sells a portion of these waste materials to recyclers as valuable
goods, sorting and separating products for reuse.
* “Valuable materials” refers to items with a net value of ¥1 or more after subtracting thecost of recycling from the sales price of the item. These materials include air
conditioners, steel products, etc.

Control and proper management of
hazardous substances
Measures Against Nitrogen Oxide (NOx) and
Sulfur Oxide (SOx)Tokyo Tatemono identifies, measures, and appropriately
manages air pollutants emitted from our businesses. Tokyo
Tatemono regularly measures the concentration of nitrogenoxide (NOx), sulfur oxide (SOx), and other chemicals emitted
from equipment producing smoke and soot, including cooling/heating systems and boilers that are in use in some of ouroffice buildings. We also comply with the environmental
standards defined in the Air Pollution Control Act in theoperation of these systems.

Measures Against Volatile Organic Compounds (VOC)
Formaldehydes are the primary substances behind sick building
syndrome. To maintain the health of its tenants, Tokyo Tatemono
restricts the use of products emitting formaldehydes in buildings
and stipulates standards for action against formaldehydes in
conjunction with the regulations of the Building Standards Act.
We measure the concentration of formaldehydes in new buildings in accordance with our own standards to verify the safety
of indoor environments.

Measures Against AsbestosTokyo Tatemono has conducted surveys on the usage statusof spraying materials that contain asbestos for all the buildings
we own. In buildings where asbestos was found to be in use,
we took appropriate steps in response, including removal orcontainment and sharing information with the building tenants.

Proper Processing of Fluorocarbons
Tokyo Tatemono complies with the Act on Rational Use andProper Management of Fluorocarbons to protect the ozone
layer and prevent global warming. We limit the use of controlled
fluorocarbons (including CFCs and HCFCs), strive to be rigorous
in recovering cooling agents, and check thoroughly for leaks
via both basic and regular inspections to limit the release offluorocarbons into the atmosphere.
When upgrading air conditioning systems or demolishingbuildings, we properly dispose of the fluorocarbons retrieved
from the air conditioning systems.

Proper Processing of Polychlorinated Biphenyls (PCBs)
Electronic devices (transformers, capacitors, stabilizers)
containing PCBs that are no longer in use pose the risk of loss,
oil leaks, or other incidents. To eliminate such risk, we disposedof these devices appropriately with the cooperation of a specialized waste disposal company.

Data
Sustainability Finance Reporting

Third-Party Assurance

CPB

37

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Biodiversity

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and Health

Policy and Concept
Real estate development is intrinsically interlinked with local
ecosystems and natural environments. We must grasp andreflect upon how we impact our surroundings, both directly
and indirectly.
Tokyo Tatemono Group is working toward a vision of creatinga pleasant city and living with greenery, a commitment that isincluded in our Group Environmental Policy. We are striving tocreate a rich and comfortable environment that takes biodiversity into consideration, such as by maximizing the power ofgreenery, and transplanting trees on our properties in line withthe development plan, and by surveying local vegetation and the
distribution of organisms, and selecting tree species to plant.
We have put in place environmental guidelines for allproperties we develop and operate in the Commercial Properties
Business, and for all properties we develop under our own
brand name “Brillia” in the Residential Business. Both sets ofguidelines establish policies for greening buildings and sites,
using greening to mitigate the heat island effect, preserving
biodiversity and ecosystems including links to the surrounding
greenery, and using greenery for communication with tenants
and residents as well as the surrounding area. Both sets ofguidelines also put in place policies of obtaining third-party*1 A system for evaluating and certifying biodiversity conservation efforts in the use of landfor office buildings and residential buildings. It is based on the Certification Guidelinesand Land Use Score Card , evaluation standards created by the Japan BusinessInitiative for Biodiversity-developed Association for Business Innovation in harmony with
Nature and Community®.
*2 An evaluation system for green spaces that contribute to society and the environmentby the Urban Greenery Research Institute, which visualizes the social andenvironmental value of green spaces.

Initiatives and External Evaluation for Sustainability P.14
Environmental Management P.21

Conserving Biodiversity and Ecosystems
New Initiatives to Restore Urban Nature

CPB

The Otemachi Forest in Otemachi Tower (Chiyoda-ku, Tokyo;

Diversity & Inclusion

Governancecertifications such as ABINC certification*1 and SEGES*2 forproperties where it is possible to implement initiatives of acertain scale.
For initiatives of a certain scale in the Commercial Properties
Business, our policy is to undergo assessment by impartial
third parties. The organizations that assess our initiatives
include ABINC, a third-party certification system for biodiversity
conservation, and SEGES, a third-party certification system forgreen space creation.

Examples of Third-party Certification Related to
Biodiversity Conservation and Green Space Creation

completed in April 2014) is a genuine forest that covers about
one-third of the entire site (about 3,600m2). In the developmentof this property, we secured an experimental pre-forest facilityof woodland covering 1,300m2 in Kimitsu City, Chiba Prefecture. Over a three-year period, construction methods, plant
growth, and appropriate management methods were verified in
the same kind of growth environment as the planned site. Afterthe soil and plants had been cultivated in Kimitsu, they weretransplanted to the building site, creating an area that feels justlike a real forest.
At Otemachi Tower, we conduct monitoring surveys of
species in the Otemachi Forest. About 100 species of trees
and ground cover plants were initially planted. A biodiversity
monitoring survey conducted in 2021 recorded around 200
species had become part of the local ecosystem as a processof natural selection emerged. A key difference from nearby
green areas is the formation of a forest environment, which
provides a habitat for many shade-loving plants. Among them
are rare species included on the national and metropolitan
governments Red List.
While the surrounding area is an office district densely
packed with tall buildings, the nearby Imperial Palace ishome to a large number of birds and insects. This serves tocontribute to the local ecosystem through a network with

Examples of Flora and Fauna Observed in Otemachi Forest

Corporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

ABINC certification

SEGES “Creating Green”

Urban Oasis

Pieris melete

Hawk

38

Dogtooth violet

Mountain cherry
blossom tree

Japanese camellia andwarbling white-eye

Raccoon dog

FalconTOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Promoting a decarbonized society

Promoting a recycling-oriented societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Biodiversity

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

the surrounding green spaces. Several bird species havealready taken root and migratory birds have been confirmed.
Around 130 species of insects have been found, among them
many dragonflies which appear to have flown in from theImperial Palace.
The Otemachi Tower has received ABINC certification forbiodiversity conservation and SEGES (Social and Environmental
Green Evaluation System) certification as an urban oasis.
In addition, in FY2022 the Ministry of the Environment carriedout a certification trial program for nature symbiosis sites*1,
OECM sites*2 that contribute to achieving the 30 by 30*3 goal.
In the results of the trial, Otemachi Forest was selected as“equivalent to certified.”

Residential Business. Based on the concept of creating a forest
in front of the station, Brillia Towers Meguro (Shinagawa-ku,
Tokyo), completed in December 2017, features a forested
space on the property, with approximately 900 trees planted
and a dredged waterway. In cooperation with the nearby
Nature Study of the National Museum of Nature and Science,
we aim to contribute to the preservation and growth of thelocal ecosystem.
Brillia City Nishi-Waseda (Toshima-ku and Shinjuku-ku, Tokyo),completed in May 2022, has an “interior forest” covering
approximately 680m2 on its site, based on the concept of “living

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Maintaining and Preserving Ecosystems
through the Creation of Urban Greenery

CPB

RB

To provide greenery at scale in urban areas where it is scarcerequires a stance not of preserving green space, but of creating it.
Tokyo Square Garden (Chuo-ku, Tokyo; completed in March2013) is a new environmentally friendly building complex thatfeatures a 3,000m2 multi-story green space called Kyobashi-no-oka,along with solar power generation and high-efficiency heat source
equipment. As a result of Kyobashi-no-oka, Tokyo Square Garden
has received ABINC certification for the use of land with consideration to biodiversity as well as SEGES (Social and Environmental
Green Evaluation System) certification as an urban oasis.
This initiative is not limited to our Commercial Properties
Business; we are also actively working on advancing it in our

Other Initiatives Related to Biodiversity
and Ecosystems
Status of Implementation of Risk Assessment for
Biodiversity and Ecosystems
When developing real estate, we conduct environmental
assessments of flora, fauna, and ecosystems in accordancewith laws and ordinances related to environmental impact
assessments and nature conservation. Based on these assessments, we preserve, transplant, and conserve trees and forests
as necessary.

*1 One of Japan’s 30 by 30 initiatives based on the “G7 2030 Nature Pact” agreed at theG7 Summit in June 2021. The Ministry of the Environment certifies areas where
biodiversity conservation is being promoted through private-sector initiatives, etc. In
FY2022, this system was tested and examined in a certification demonstration project,and official certification began in FY2023.
*2 OECM (Other Effective area-based Conservation Measure) sites: Areas other thanprotected areas that contribute to biodiversity preservation.
*3 A goal that seeks to effectively conserve at least 30% of the land and sea as healthy
ecosystems by 2030 toward the goal of halting biodiversity loss and restoring
biodiversity by 2030 (nature positive).

Collaboration with External Parties on Biodiversity
and Ecosystems

Human Resource Investment and Development
Health Management / Occupational Safety and Healthwith a forest inside the Yamanote Line” (the circular rail line
around central Tokyo). A total of 64 medium-height and tall trees
were planted. Of these, 30 out of the 39 species used are native
species selected based on surveys of plant and animal ecology
conducted by Toshima Ward. In this way, we aimed to grow aforest that is in harmony with the local natural environment.

Tokyo Square Garden Kyobashi-no-oka

Brillia City Nishi-Waseda Inner Forest

We work to conserve biodiversity and ecosystems by cooperating with initiatives and industry associations. We are amember of the Keidanren Council for Nature Conservation,
established by the Japan Business Federation (Keidanren), anda participant in the Keidanren Biodiversity Declaration Initiative,
established by Keidanren and the Council. In 2022, we alsojoined the “30 by 30 Alliance for Biodiversity” established by
Keidanren and other organizations.
We are also a member of the Environmental Committee of
The Real Estate Companies Association of Japan. The Real
Estate Industry Environmental Action Plan formulated by thecommittee in 2013 lists conserving the natural environmentand biodiversity as one of its environmental action goals.
Initiatives and External Evaluation for Sustainability P.14

39

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Addressing the diverse needs of customers and society

Value co-creation and innovation

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Policy and Concept
Sustainability finance refers to bonds and loans to raise funds
specifically for the purpose of promoting sustainability byaddressing environmental issues such as climate change orsocial issues such as poverty, health, and economic disparity.
The Tokyo Tatemono Group promotes urban developmentthat contributes to solving social issues. We strive to improve
the attractiveness of the areas in which we develop and toincrease the value of our entire portfolio of owned office buildings. We aim to channel these efforts toward our sustainablegrowth as a company.
In this era of dramatic change and increasing uncertainty, we
will accelerate the cycle of allocating the funds we raise to projects that help bring about a sustainable society. We will help
promote decarbonized, sustainable society by balancing, at ahigh level across our operations, the need to address social
issues with the need for business growth.

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Sustainability Finance Framework

Contributing to Our Communities

Tokyo Tatemono has put in place several finance frameworks toguide its financing. These frameworks apply the four requirements defined in the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles
referred to by the International Capital Markets Association:
Use of Proceeds; Process for Project Evaluation and Selection;
Management of Proceeds; and Reporting.

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Use of Proceeds
Proceeds will be allocated to projects that meet eligibility criteriasuch as the acquisition or construction of green buildings,
social projects addressing social problems, or will be used forrefinancing such projects.

Process for Project Evaluation and Selection

Third-Party Assurance

The Finance and Sustainability Management Departments selectprojects that meet the eligibility criteria. The final decision is madeby the president or a director in charge of the Finance Department.

Management of Proceeds

Issuance of Sustainability Bonds

The status of the allocation of proceeds is tracked and managed
by the Finance Department using an internal control system. The
results are confirmed by the director in charge of the Finance
Department or the head of the Finance Department on a quarterly
basis. The proceeds are managed as cash or cash equivalents
until they are allocated. For unallocated proceeds, should theyarise, projects will be selected from among projects that meetthe eligibility criteria. The unallocated proceeds will be managedin cash or cash equivalents until their reallocation is decided.

In July 2020, in a first for a real estate sector company inJapan, Tokyo Tatemono issued a sustainability bond worth a
total of 40 billion yen. The sustainability bond issued this time is
not limited to a single building, but instead involves a packageof funds to cover the overall urban development of the YaesuNihonbashi-Kyobashi area of central Tokyo. In an initiative thatis groundbreaking even by global standards, the proceeds willbe allocated to developing this area as a seeding ground forcomprehensive solutions to social issues, from combatingclimate change, strengthening disaster prevention and mitigation, and medical cooperation, to addressing food issues andbuilding an innovation ecosystem. The Company received theGold Award in the fundraiser category of the 2nd Annual ESG
Finance Awards Japan.
Despite a historically high supply of bonds at the time of theissuance, demand for the bond was strong. Many investors
were impressed by the significance of the issuance, the issuance scheme, and the expected impact. The bonds have thelargest-ever issue amount and gained the largest number ofinvestors as sustainability bonds issued by a Japanese company not operating in finance.
In February 2021, we issued our second sustainability bond,worth a total of 40 billion yen. By successfully presenting ourcredit situation and sustainability measures, we received a positive assessment from a wide range of investors. As a result,demand for the bond exceeded the issuance amount by a wide
margin. We received 47 investment proposals, the largest
number ever received by Tokyo Tatemono.

Reporting• We publish the allocation status of proceeds in our Sustainability Report and disclose it on our website once a year until
all proceeds classified for allocation reporting are fully allocated.
• We report the allocation status of proceeds on our website
once a year until all proceeds classified for allocation reportingare fully allocated.

Achievements in Sustainability FinanceIssuance of Green Bonds
In March 2019, we issued Japan’s first (and the world’s first for
the real estate sector) green hybrid bond with an issue size of
50 billion yen. As the largest green bond issue in Japan andwith a record number of investment commitments, it also won
the Silver Prize (Minister of the Environment’s Prize) in the bondcategory of the first ESG Finance Awards Japan* for its environmental improvement effects and high level of transparency
in the use of funds.
* The ESG Finance Awards Japan is an initiative established by the Ministry of theEnvironment of Japan to evaluate, recognize, and publicize the efforts of investors,
financial institutions, and other organizations that have achieved outstanding environmental
or social impact through their active involvement in ESG finance and green projects. The
awards also recognize companies that have incorporated important environment-related
opportunities and risks into their management strategies to enhance their corporate
value and create impact on corporate value and the environment.

40

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Addressing the diverse needs of customers and society

Value co-creation and innovation

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment

Overview of Green Bonds and Sustainability Bonds
Name

2nd Series Subordinated Bonds (Green Bond)

31st and 32nd Unsecured Corporate Bonds(Sustainability Bonds)

3rd Series Subordinated Bonds(Sustainability Bond)

33rd Unsecured Corporate Bond
(Sustainability Bond)

Issue date

March 15, 2019

July 16, 2020

February 10, 2021

July 30, 2021

Redemption date

March 15, 2059

July 16, 2025 (31st), July 16, 2030 (32nd)

February 10, 2061

July 28, 2028

Issue amount

50 billion yen

20 billion yen (31st issue, 32nd issue)

40 billion yen

Issue amount 10 billion yen

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

Green Project

Promoting a Recycling-oriented Society

Green Project

Biodiversity
Sustainability FinanceGreen Project

Responding to Natural Disasters

SocialFramework
eligibility criteria

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Eligible properties are those that have alreadyacquired or are scheduled to be certified/recertified
as one of the top two ranks in any of the third-party
certification bodies, listed in (1) to (3) below.
(1) 4 or 5 stars in the DBJ Green Building Certification(2) A or S rank in the CASBEE building assessment(new buildings)(3) 4 or 5 stars in the BELS Evaluation Certification

Revitalizing and Utilizing Real Estate Stock

Eligible properties are those that have already acquired or are scheduled to be certified/recertified as one of
the top two ranks in any of the third-party certification bodies, listed in (1) to (3) below.
(1) 4 or 5 stars in the DBJ Green Building Certification(2) A or S rank in the CASBEE building assessment (new buildings)(3) 4 or 5 stars in the BELS Evaluation Certification
Social project
Projects that contribute to any of the following (1) to (3)(1) Basic infrastructure development and access to essential services(2) Socioeconomic improvement and empowerment(3) Food safety

Eligible properties are those that have alreadyacquired or are scheduled to be certified/recertified
as one of the top two ranks in any of the third-party
certification bodies, listed in (1) to (4) below.
(1) 4 or 5 stars in the DBJ Green Building Certification(2) A or S rank in the CASBEE building assessment(new buildings)(3) 4 or 5 stars in the BELS Evaluation Certification(4) ZEB certification: ZEB, Nearly ZEB, ZEB Ready
or ZEB Oriented
Social project
Projects that contribute to any of the following (1) to (2)(1) Access to essential services(2) Socioeconomic improvement and empowerment

Contributing to Our Communities
Human Resource Investment and Development

Urban development of the Yaesu/Nihonbashi/Kyobashi area next to Tokyo station, as a contribution tosolving social issues

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceUse of proceeds

Funding for acquisition, construction andrefinancing of Hareza Tower
Refinancing of the acquisition and construction of
Nakano Central Park South

External evaluation

Green 1 (JCR)

Reporting

Reporting on Green Bonds P.94

Corporate GovernanceRisk Management(1) Yaesu 1-chome East District Urban
Redevelopment Project in front of Tokyo Station(Yaesu Project)(2) Yaesu 1-chome North District Urban
Redevelopment Project (Gofukubashi Project)(3) Tokyo Square Garden(4) Tokyo Tatemono Nihonbashi Building(5) City Lab TOKYO(6) TOKYO FOOD LAB(7) xBridge-Tokyo / xBridge-Tokyo Next
(8) Kitchen Studio SUIBA(9) TOKYO IDEA EXCHANGE

Urban development that creates value of place andvalue of experience by meeting the diverse needs ofcustomers and society, etc.
(1) Hareza Tower(2) Nakano Central Park South(3) Brillia ist Tower Kachidoki(4) Nonoaoyama Building(residences for the elderly, daycare facilities)

Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

SU1 (F) (JCR)
Reporting on Sustainability Bonds

Reporting on Sustainability Bonds

Reporting on Sustainability Bonds for(1st round) P. 94(2nd round) P. 95

Retail Investors P.95

41

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Addressing the diverse needs of customers and society

Value co-creation and innovation

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance

ESG Management
Initiatives and External Evaluation for Sustainability

Issuance of a Sustainability Bond for Retail Investors

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building

In July 2021, we became the first general business in the realestate sector in Japan to issue a sustainability bond (the Tokyo
Tatemono Brillia Sustainability Bond) to retail investors. The
bond was worth a total of 10 billion yen.
In issuing this sustainability bond, we newly establisheda financing framework based on our material issues, which
we updated in June 2021. Our new framework is urban

development that aims to create value of place and value ofexperience by meeting the diverse needs of customers andsociety. As well as large-scale office buildings with excellent
environmental performance, we have newly selected childcare
support and housing projects for the elderly as eligible projects.
We have targeted retail investors in an attempt to gain wider
recognition for our sustainability-conscious urban development.

Green Loan Financing
We are steadily raising funds through green loans in accordancewith a new financing framework established in June 2022.

Water Resources
Promoting a Recycling-oriented Society
Biodiversity

Green Loan Overview

Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Name

December 23, 2022

December 23, 2022

Repayment dateJune 28, 2032

December 28, 2029

December 23, 2032

Loan amount

10 billion yen

Billion yen

10 billion yen

Green Project
Framework
eligibility criteria

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Use of proceeds

Corporate GovernanceRisk Management
Compliance3rd Green Loan

June 28, 2022

Revitalizing and Utilizing Real Estate Stock

Governance2nd Green Loan

Borrowing date

Improving Quality and Customer Satisfaction

Contributing to Our Communities

1st Green Loan

Eligible properties are those that have already acquired or are scheduled to be certified/recertified as one of the top two ranks in any of the third-party certification bodies, listed in (1) to (5) below.
(1) 3, 4 or 5 stars in the DBJ Green Building Certification(2) A or S rank in the CASBEE building assessment (new buildings)(3) 4 or 5 stars in the BELS Evaluation Certification(4) ZEB certification: ZEB, Nearly ZEB, ZEB Ready or ZEB Oriented(5) ZEH Certification: ZEH-M, Nearly ZEH-M, ZEH-M Ready or ZEH-M Oriented(1) Refinancing the acquisition and construction of Tokyo Tatemono
Sendai Bldg.
(2) Refinancing the acquisition and construction of T-LOGI Narashino;
Refinancing the acquisition and construction of Tokyo Tatemono
Sendai Bldg.

Refinancing the acquisition and construction of Tokyo Tatemono
Sendai Bldg.

Green1(F) (JCR)

External evaluation
ReportingRefinancing the acquisition and construction of Tokyo Tatemono
Sendai Bldg.

Reporting on Green Loan P.96

Data
Sustainability Finance Reporting

Third-Party Assurance

42

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Social implementation of technology

Promoting a decarbonized society

Reducing Vibrations Caused byStrong Wind and Earthquakes

CPB

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Responding to Natural Disasters

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Policy and Concept

Securing a Power Supply in Emergencies

Natural disasters such as major earthquakes and typhoons
threaten our way of life. Climate change has resulted in frequent
destructive typhoons and extreme weather in recent years. As
a result, interest is rising faster than ever in the safety of realestate, which is a foundation of our lives.
As a real estate services provider, the Tokyo Tatemono Group
believes that improving resilience against disasters in ordinary
times and providing safety and comfort to our customers andother stakeholders are important responsibilities.
We have identified contributing to a safe and secure society
as a material issue for the Group. To address this issue throughour business operations, we will continue to further strengthen
our measures against natural disasters.

The Tokyo Tatemono Nihonbashi Building (Chuo-ku, Tokyo;
completed in February 2015) has a seismic isolation structure(first basement floor: column-head seismic isolation) to ensurehigh earthquake resistance. The building also features countermeasures against guerrilla rains and the Arakawa River flooding
its banks. The disaster prevention center, its central function, islocated on the second floor, with transformer equipment andan emergency generator installed on the roof. The emergency
generator can operate for 72 hours, supplying 15 VA/m2 ofpower in the event of a power failure. This enables an uninterrupted power supply and continuous operation in the event ofan earthquake or flooding.

Hareza Tower (Toshima Ward, Tokyo; completed in May 2020)features HiDAX-R®* (Revolution), a new-generation oil damperincorporating the world’s first Vibration Energy Recovery
System (VERS) in the building frame. The system can handle
wind-induced shaking and large earthquakes measuring up to
7 on the Japanese scale of seismic intensity. The system has
been demonstrated to be highly effective for earthquakes
measuring 4 to 5 and for long-period seismic motion, halving
the maximum amplitude of building shaking and significantly
shortening the duration of aftershocks.

Installation of Emergency Generator forPower Supply to Office Spaces

Tsunami Evacuation Facilities on the Rooftop
of a For-sale Condominium

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Developing Real Estate that is Resilient
Against Natural Disasters
Climate change and other factors have been causing greaterwind and flood damage in recent years. The Tokyo TatemonoGroup has applied designs and adopted equipment in our officebuildings and residences in preparation for presumed futuredisasters, including typhoons, floods, and major earthquakes.

CPB

CPB

The Great East Japan Earthquake heightened demand for
emergency power supplies in office buildings as a business
continuity planning (BCP) measure for disasters.
In new buildings under development, emergency power is
supplied not only to common areas but also to tenant officespaces. At Tokyo Square Garden (Chuo-ku, Tokyo; completed
March 2013), emergency power was initially supplied only tothe common areas. But after considering the disaster preparedness needs of tenants, weinstalled a generator to
supply power to tenant officespaces as well. The system
now in place has the capacity
to supply 15VA/m2 for up to
72 hours (for a fee), which
also supports tenants’ BCP
for power outages.
Emergency generator* HiDAX-R® is a patented technology of Kajima Corporation.

RB

Brillia Shonan Tsujido Seaside Park (Fujisawa City, Kanagawa
Prefecture; completed in March 2019) is the first private condominium in Fujisawa City to receive a subsidy for the construction of tsunami evacuation facilities. It features a 400m2 tsunami
evacuation facility that can be used by nearby residents. The
rooftop facility will allow not only condominium residents but
also members of the local community to evacuate in the eventof a tsunami. With capacity for approximately 660 people, thefacility provides a safe location to wait until the tsunami recedes.

Brillia Shonan Tsujido Seaside Park

43

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Responding to Natural Disasters

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Preparing for Natural Disasters
Strengthening Disaster Preparedness
throughout our Businesses

CPB

CPB
RB

In the Commercial Properties business, at buildings owned andmanaged by Tokyo Tatemono, we implement “hard” measuresfor disaster response, such as maintaining or enhancing seismic resistance and installing emergency power sources. We
also implement “soft” measures, such as installing batteries forrecharging mobile phones and distributing stockpile goods. We
are working to enhance these disaster prevention policies,
support for BCP, and other measures.
In addition, we equip our buildings with a system that uses
data from multiple vibration-detecting sensors to determine thedegree of damage and rapidly confirm safety after an earthquake. After installation, the system collects all informationfrom subsequent seismic events, automatically calculating the
cumulative damage to the building structure. In addition, evenfor earthquakes with multiple, strong foreshocks and main
tremor—like the earthquake that occurred in Kumamoto in
2016—the system can determine the safety level anticipating
the main tremor at the foreshock stage.
Buildings owned by Tokyo Tatemono are served by a Disaster
Status Monitoring System. Field staff and Tokyo Tatemono
personnel can access this system via the internet and share
information quickly about the situation on the ground. Afterinformation is shared, the system also allows instructions tobe provided for actions to take depending on the scenario.
Training exercises are also conducted at night with this system,
as a disaster could come at any time, day or night.
In the Residential Business, our Brillia brand of for-sale condominiums offers disaster prevention measures unique to each
property, as part of an emphasis on providing peace of mind
from day one. These measures are divided into three phases:
normal, disaster, and post-disaster.

In accordance with the Brillia Disaster Prevention Guidelines,
we created original disaster prevention manuals for each
property. We also hold disaster prevention seminars, and evacuation drills for residents, and provide life-saving courses for
management staff. These daily preparations are leading tostronger awareness of disaster prevention.

Three Phase Disaster Prevention (Triple Safety)

Phase 1: Prepare (Normal Times)· Holding disaster prevention briefings for residents· Lifesaving training for management staff· Creating original disaster prevention manual

Phase 2: Protect (In the Event of a Disaster)· Installing elevators with earthquake countermeasure functions· Installing studs to prevent falling furniture· Installing of automated external defibrillator (AED) units

Preparing for Natural Disasters with Fire Brigade
Training, Disaster Drills, and First-Aid Courses
As part of our soft measures for disaster prevention, the Tokyo
Tatemono Group hosts fire-fighting and other training andcourses to enhance the ability of our employees to respondto disasters.
The Tokyo Tatemono Group has established a basic policy
for earthquake response, called the Basic Plan for Earthquake
Measures. We have prepared manuals for initial response,
stockpiling, and employee safety confirmation. Each October,group companies conduct joint drills on earthquake response
measures to confirm chain of command, division of responsibilities, information gathering and communications, and employee
safety confirmation.
In 2022, we conducted a training exercise that envisaged
the immediate aftermath of an earthquake. In the training,
our disaster information sharing tool was to report from each

Earthquake Disaster Response Headquarters
Organization Chart

Phase 3: Preserve (After a Disaster)· Providing original Brillia disaster prevention backpacks asstandard equipment for all units· Storing emergency supplies in common areas· Installing disaster prevention cabinets in elevators

Earthquake Disaster Response Headquarters
General Headquarters
General Headquarters Director:
President, Tokyo Tatemono
General Headquarters Support Team
Team Leader: General Manager ofCorporate Planning Dept.

Instructions

General Affairs Team
Information Team
Health and Welfare Team

ReportingBusiness Response Team
Each division and Group
company

44

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Environment

Related Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Social implementation of technology

Promoting a decarbonized societyManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Responding to Natural Disasters

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and Healthdisaster countermeasures headquarters and each operational
task force to the disaster countermeasures general headquarters.
We also held workshop exercises through which each disastercountermeasures headquarters and each operational task force
considered how to respond to hypothetical scenarios in theevent of a disaster.
We conduct fire brigade training once or twice yearly tostrengthen our voluntary disaster prevention systems. In thistraining, participants follow the instructions from members of
the local fire brigade as they engage in several hands-on exercises for earthquake and fire response. These exercises include
initial response, first-line fire-fighting, rescue and lifesaving,transporting injured persons and evacuation drills.
Our fire squad trains on a daily basis. For many years, thesquad has participated in the Self-Defense Fire-Fighting Drill
Review Board held by the Nihonbashi Fire Department, earning
many wins to date.
In addition, as of the end of December 2022, 234 Tokyo
Tatemono employees and 616 Tokyo Fudosan Kanri employees
have completed the lifesaving course, which includes first aid.
Tokyo Tatemono has received a certificate of excellence fromthe Tokyo Fire Department, in recognition for promoting first aid
training among its employees.

Support for Stranded Commuters During Disasters

CPB

When major earthquakes or other disasters occur, public transportation functions may halt, stranding commuters. At thelarge-scale office buildings managed by the Tokyo TatemonoGroup, we have prepared support mechanisms for tenants.
We have entered into agreements with local municipalities
and developed systems, structures, and resource stockpiles
in anticipation of scenarios in which stranded commutersrequire housing.

Tokyo Square Garden

Emergency Bath Facilities

OTHERsThe Ofuro no Osama chain is a chain of Japanese-stylebathhouses developed by Tokyo Tatemono Resort. The primary
aim of these bathhouses is to offer a soothing space that is an
important, integrated part of the local community. As a means
to this end, Ofuro no Osama entered into an agreement withthe cities of Ayase and Ebina in Kanagawa Prefecture as wellas Wako in Saitama Prefecture to allow the use of Ofuro no
Osama bathing facilities in the event of an emergency.
Thanks to this agreement, anyone affected by an earthquakeor other disaster may use bathing facilities at four Ofuro no
Osama locations (Ebina, Kozashibuya Ekimae, Seya, or Wako)
located in and around the three aforementioned cities.

Training for accommodating stranded commuters at
Tokyo Square Garden

Diversity & Inclusion

Facilities with capacity for receiving stranded
commuters

GovernanceCorporate GovernanceRisk Management· Tokyo Square Garden (Chuo-ku, Tokyo, completed in
March 2013)· Otemachi Tower (Chiyoda-ku, Tokyo, completed in April 2014)· Hareza Tower (Toshima-ku, Tokyo; completed in May 2020)

Compliance

Data
Sustainability Finance Reporting
Self-Defense Fire-Fighting Drill Review Board

Third-Party Assurance

45

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group
ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

SocialHealth Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

46

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Respect for Human Rights

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Policy and Concept

SystemRecognizing that all persons engaged in Group businessshould adhere to the UN’s Guiding Principles on Business andHuman Rights, we established the Tokyo Tatemono Group
Human Rights Policy to guide our initiatives related to thehuman rights of employees and other stakeholders. By publishing this policy on our website and through other media, we
communicate to our business partners and all other stakeholders
our expectation that they will comply with the policy andpromote initiatives to respect human rights. We also request
our business partners to understand and adhere to the policy
as well as address any issues they may have, as needed.
Furthermore, based on the policy, we conduct human rights
due diligence and also work to identify, mitigate, correct, andremedy any human rights issues in our business.

The Group’s Human Resources Department plays a central rolein the system we have established for respecting human rights,
working with related departments and Group companies while
coordinating with outside experts and receiving ongoing support.
In addition, to identify issues and risks related to humanrights, the Sustainability Committee, a meeting body directly
under the President, discusses and shares information on
actions to address these areas under the supervision of theBoard of Directors.
In January 2023, the Group established a Human Rights
Subcommittee, chaired by the director in charge of humanresources, as a subordinate organization of the Sustainability
Committee. The subcommittee promotes group-wide activities
for respecting human rights while engaging in human rights due
diligence and other activities. It has implemented training andawareness-raising activities in line with human rights priorities.
To further expand human rights assessments when engaging in
new overseas businesses, the subcommittee continues to work

Human Rights Policy
Sustainable Procurement Standards
Initiatives and External Evaluation for Sustainability P.14

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stockwith related business divisions to consider and discuss theissues involved.
ESG Management Framework P.10

International Norms the Group Supports and Respects· Universal Declaration of Human Rights in the International Bill of
Human Rights· ILO Declaration on Fundamental Principles and Rights at Workand other international labor standards· Guiding Principles on Business and Human Rights

Compacts Tokyo Tatemono Has Signed and Endorsed
in which the Group Participates· Protection of human rights, elimination of unfair labor practices,
response to the environment, and prevention of corruption under
the UN Global Compact (UNGC)

Human Rights Risk Assessment

Contributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Major human rights risks related to ourbusinesses, categorized by stakeholder

Human Rights Organization Chart
Audit and Supervisory Board

Board of Directors
President and CEO

GovernanceWorkers at
Tokyo Tatemono,Group companies

Health and safety, earthquakes and pandemics,
discrimination and harassment, long working
hours, working conditions and working
environment, etc.

Workers at suppliers

Forced labor, child labor, health and safety,
industrial accidents, discrimination andharassment, long working hours, working
conditions and working environment, etc.

Customers

Safety of products and services, human rights
violations related to products and services,confidential information and privacy, etc.

Local communities,
indigenous peoples

General impact on local communities, such as
forced migration, local rights, and bribery
and corruption.

Corporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Executive Committee

Risk Management Committee
Gauging the status of initiatives andreporting progress

Sustainability Committee

Internal Control Committee

Directives,supervision

Human Rights Subcommittee
Secretariat: Personnel Department and Corporate
Planning Department

Sustainability Promotion Committee

Corporate Departments, Business Divisions, Group Companies

47

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Respect for Human Rights

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Initiatives for Human Rights Due Diligence
The Tokyo Tatemono Group is committed to establishing ahuman rights due diligence in accordance with the Tokyo
Tatemono Group Human Rights Policy.
This policy received the support and advice of external
human rights experts from the planning stage at the secretariat.
In formulating the policy, we held a workshop attended byrepresentatives of all 21 Group companies subject to it. Guided
by expert facilitators, they exchanged opinions and discussed
the categorization of human rights issues and risk assessmentsof the Group. After being discussed by the Sustainability Committee, the policy was formulated in May 2021.
Based on discussions at the workshop and advice fromexternal advisors regarding the Group’s priority human rights
issues, and following consideration by the secretariat and discussion by the Sustainability Committee, we identified anddisclosed the priority issues in May 2022.
Based on the priority issues identified, we continue seeking

to gauge various human rights issues, which differ between
business field and country or region, taking appropriate action
should we identify any problems. At the same time, we arereinforcing our human rights initiatives while seeking advice
from external experts regarding disclosure about the status of
our efforts.

Human Rights Priority Issues· Forced labor and child labor· Impact on local communities· Health and safety· Discrimination and harassment· Employee working conditions and working environment· Supplier working conditions and working environment· Right to privacy

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Human Rights Due Diligence Process

Human Resource Investment and Development

Human Rights Due Diligence

Health Management / Occupational Safety and HealthCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party AssurancePD

Identifying, analyzing andassessing human rights risks

Implementing appropriate
measures

A
Disclosing information

Establishing grievancemechanisms

Governance

Developing and publishinghuman rights policy

Diversity & Inclusion

C
Follow-up investigations(monitoring)

Initiatives to Mitigate Risks Related to
Human Rights Priority Issues
Forced Labor, Child Labor
The Tokyo Tatemono Group prohibits forced labor and childlabor. Accordingly, we request that suppliers make efforts torespect human rights, including the prevention of forced laborand child labor. This request is set forth in our Sustainable
Procurement Standards, of which the Group’s major suppliers
have already been notified. Going forward, we will continue toascertain the status of efforts by our suppliers to addressthese requests, and work toward improvement if we identify
any issues.

Impact on Local Communities
In the course of doing business, the Tokyo Tatemono Group
complies with the laws and regulations of the countries andregions in which it operates (including local and internationallaws of each country), to avoid having an unwanted impact on
local communities. In the event that a conflict arises between
internationally recognized human rights standards and the laws
and regulations of each country or region, we take an approachthat ensures maximum respect for internationally recognizedhuman rights. As part of our human rights due diligence, we
continue to work with related divisions as we study and discuss
ways of further expanding human rights assessments whenparticipating in new overseas businesses.

Stakeholder engagement

48

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Respect for Human Rights

ESG Management
Initiatives and External Evaluation for Sustainability

Health and Safety

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Maintaining and Improving the Health of Employees
Under the Tokyo Tatemono Group Declaration of HealthManagement, the Group promotes activities for maintaining
and improving the physical and mental health of our executives and employees. These include initiatives to achieve
health-related goals and training programs designed to
improve health literacy.
In addition, regarding mental health in particular, Tokyo
Tatemono is promoting a system that enables officers andemployees to correctly assess their own stress levels. This isdone through an annual online stress self-check. In addition, we
conduct line care training for newly appointed group leaders*and self-care training for new employees. This encourages
an awareness of the importance of mental health, as well as
supporting early detection or prevention of mental disorders.
For employees on long-term leave due to mental illness, wehave a support system in place. This includes return-to-worksupport training, in cooperation with a consultant psychiatrist.

Contributing to Our Communities* The entry-level management position in the Group, this leadership position involves
supervision over several subordinates.

Human Resource Investment and Development

Health Management / Occupational Safety and Health P.65

Health Management / Occupational Safety and Health

Mental Health Initiatives P.67

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Preventing industrial accidents at construction sites, etc.
Preventing industrial accidents in situations such as construction sites is primarily a human rights issue affecting workers of
supplier. We therefore strive to understand the status of theirefforts to prevent occupational accidents, identifying issues andworking to make improvements. In March 2023, we conducted a questionnaire-based survey on our sustainable procurement standards, identifying construction companies thatare key suppliers, and provided feedback on the results. We

will continue to assess and analyze the details of the
responses. If necessary, we will communicate directly with the
suppliers to understand and improve the working environment at construction sites and other locations.
Preventing sale or provision of unsafe products
and services
We have prepared various guidelines and manuals, establishinga framework for ensuring the safety of the products and services
that we sell and provide. In addition, we have built a PDCA
cycle, which includes directly asking for the opinions of customers and business partners through periodic questionnaires,and using their responses to make improvements. We also
disclose information on various measures to improve safety.
Improving Quality and Customer Satisfaction P.53

Responding to major earthquakes and pandemics
Tokyo Tatemono has put in place an environment for remote
work, including working from home, to enable business continuity in the event of a major disaster or pandemic. We havealso implemented various disaster preparedness measures,
including formulating a basic earthquake preparedness plan
and accommodation system, and carrying out periodic drills.
In the event of an earthquake, we have deployed a system toquickly confirm the safety of workers and coordinate requests toattend the office.

Discrimination and Harassment
Every year, the Group provides all employees with e-learningcompliance training that addresses the themes of discrimination and harassment. In addition, we conduct various activities
to raise awareness of and help prevent discrimination andharassment. These include harassment prevention training,49

training for directors and managers, training for new supervisory staff, and other level-specific training programs. In addition, the Human Resources Department has set up a
consultation service on harassment, staffed by one male
employee and one female employee.
Harassment was also covered in our human rights training inNovember 2022, which was attended by 847 of our officers
and employees.
Compliance Training P.83
Establishment of a Helpline P.84

Employee Working Conditions and Working Environment
Tokyo Tatemono has a system for properly specifying, at thetime of employment, working conditions and duties to beengaged in. This is to ensure that unfair assignments andtransfers do not occur.
Initiatives to Limit Overtime Work P.69

Supplier Working Conditions and Working Environment
We will use questionnaire-based supplier surveys to understandthe actual working conditions and working environment ofworkers at our suppliers so that we can identify the issues tobe addressed and work to make improvements as necessary.

Right to Privacy
We encourage executives and employees to recognize theimportance of protecting personal information. We work toensure that personal information is handled appropriately andthat the right to privacy is respected. As part of this effort, wehave established a Personal Information Protection Policy,
Rules for Handling Personal Information, and other related rules
and manuals.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Respect for Human Rights

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Participation in Human Rights Due Diligence Promotion
Council for Construction and Real Estate Sector
We are participating in a human rights due diligence promotion
council involving eight construction and real estate companies.
This study group conducts research and studies on identifying
and addressing impacts on human rights. In doing so, it aims
to fulfill the responsibility required of companies by the United
Nations Guiding Principles on Business and Human Rights to“avoid infringing on the human rights of others and to takemeasures to prevent, mitigate and remedy adverse impacts on
the human rights involved.”

Regular Training on Human Rights
The Company conducts regular training on human rights. In
2022, we held mandatory training for all employees to improvebasic understanding of human rights fundamentals and ofbasic areas such as the Tokyo Tatemono Group Human Rights
Policy. The training also updated employees on the Group’s
latest human rights initiatives (participation rate: 93.2%). The
2022 human rights training was also extended to all 21 Group
companies covered by the Tokyo Tatemono Group Human
Rights Policy, with all Group company employees also attending the training (participation rate: 86.9%).
The Tokyo Tatemono Group’s Compliance Codes of Conduct
also stipulate “respect for human rights, prohibition of discrimination and harassment,” and “ensuring a comfortable work
environment.” We also use compliance training for employees
and managers to ensure thorough awareness of compliance.
Compliance Training P.83
Compliance Surveys P.84

Human Rights Issues Specific to the Real Estate Industry
Due to the nature of the business, the real estate industry
involves various human rights issues relating to land, such as
the Dowa (Buraku discrimination) problem. The Group willcontinue to provide training for learning the correct understanding of the Dowa problem and respond appropriately to it,
to prevent situations that could lead to human rights violations.
For our recruitment activities, we have assigned to thegeneral manager of human resources the role of promoting
fair recruitment, selection, and human rights awareness*. This
individual is responsible for preventing discrimination or otherhuman rights infringements from occurring.
* Employers are required to put this position in place based on the Fair Employment
Selection Human Rights Enlightenment Promoter System by the Ministry of Health,Labour and Welfare, Prefectural Labor Offices, and Hello Work (Public Employment
Security Offices. The role of this position is to ensure fair employment selection based oncorrect understanding and awareness of human rights issues such as the Dowa problem.

Utilization of a Helpline and Other Resources
The Tokyo Tatemono Group has established the Tokyo TatemonoGroup Helpline, which can be used by all Group companies.
The helpline handles reports of harassment and human rights
violations. Anonymous reports are also accepted, and theprivacy of anyone who uses the helpline is protected. They arealso protected from prejudicial treatment due to their report. In
addition, the Human Resources Department has set up a consultation service on harassment, staffed by one male employee
and one female employee.
The content of any reports or consultations received is subjected to an investigation and fact check. After this, corrective
measures and preventive measures are promptly implemented.
We have an “Inquiries” page on our website where anyone,
including external stakeholders, can contact us about ourbusinesses and the company.
Establishment of a Helpline P.84

50

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Promoting a decarbonized society

Promoting a recycling-oriented society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Supply Chain Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Policy and Concept
The Tokyo Tatemono Group engages in business in collaboration with numerous business partners, including design andconstruction companies. Like the Group, our business partners
also have an impact on the environment and on society, suchas through the procurement of materials and employment
associated with construction. We therefore believe that building
a sustainable supply chain is indispensable.
In May 2021, the Group formulated Sustainable Procurement
Standards based on our recognition of the need to pursue
sustainable procurement throughout the supply chain in a waythat ensures respect for human rights of all stakeholders
including our employees, as well as consideration of environmental conservation.
The procurement standards apply to all business partners
involved in Group businesses. They clearly set out the nine
areas we consider critical. We are working to advance our
supply chain management appropriately through various initiatives related to operating these procurement standards. Goingforward, the Tokyo Tatemono Group will continue engaging withbusiness partners to ensure their understanding of and cooperation with these nine items, pursuing sustainable procurement
throughout the supply chain as we work toward a sustainable
society.
Sustainable Procurement Standards

Governance

Summary of the Tokyo Tatemono Group Sustainable Procurement Standards
1. Observance of Laws and Regulations·

Compliance with the laws and regulations of the countries andregions in which we operate

2. Respect for Human Rights··

Ensuring compliance with and respect for international
standards relating to human rights and respect for basic humanrights based on international standards
Prohibition of discrimination and harassment

3. Assurance of Sound Labor Practices andWorking Environments·

Responding sincerely to requests and complaints

6. Environmental Considerations·

Reduction of greenhouse gas emissions·

Promotion of 3R, efficient use of resources, reduction ofwaste generation, reuse, and recycling·

Prevention of pollution of air, water, soil, etc., and appropriate
management and processing of chemical substances·

Preservation of biodiversity and reduction of impact on ecosystems·

Elimination of illegal raw material procurement·

Eliminating and preventing forced labor and child labor

7. Co-existing with Local Communities·

Prohibiting discrimination in labor conditions on the basis ofrace, nationality, creed, gender, sexual orientation, age, social
status, origin, etc.

·

Building, maintaining, and strengthening good relationships withlocal communities·

Complying with laws and regulations governing minimum
wages, overtime pay, benefits, etc.

·

Understanding and respecting the culture and customs of
local communities·

Prohibiting illegal overtime and excessive labor

8. Formulation and Construction of a BCP Framework·

Creating a safe and healthy working environment·

4. Fair Business Activities

Formulate a business continuity plan (BCP) and build asystem to implement it·

Prohibition of bribery and other corrupt practices

9. Collaboration in the Supply Chain·

Prohibition of unfair and anti-competitive transactions·

Blocking relationships with antisocial forces

Risk Management·

Prohibiting infringement on the intellectual property rights ortrade secrets of third parties·

Protection and appropriate management of personal informationand confidential matters·

Protection of confidentiality of information related to reporting
and the anonymity of whistleblowers and eliminating retaliation
against whistleblowers

Compliance

Third-Party Assurance

Ensuring and improving the quality of products and services
and disclosing accurate related information, reuse, and recycling

Ensuring freedom of association and the right to collective
bargaining·

Sustainability Finance Reporting··

Corporate Governance

Data

5. Assurance and Improvement of Safety and Quality

51

Encourage business partners to understand, comply with,and improve these procurement standards.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Promoting a decarbonized society

Promoting a recycling-oriented society

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Supply Chain Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Operating the Sustainable Procurement Standards

Understanding the response of our suppliers andidentifying issues

Implementing remedial measures for identified issues
and monitoring improvements

Disclosing and Disseminating the Sustainable Procurement Standards

We have been conducting a questionnaire-based survey of our
suppliers to ascertain their understanding of and compliancewith these procurement standards. The first survey was conducted for all construction companies currently doing businesswith the Group, which are the major suppliers in our group’sbusiness (collection rate: 95%). In the results, no significant
issues were found.

We will continue to engage with suppliers through questionnaires, feedback, interviews, and hearings. If any issues arefound in the supply chain of the Group’s business, we seek tomake improvements. We will continuously monitor the statusof improvement, carrying out further improvement measures
as necessary.

We recognize that efforts across the supply chain are vital torealizing a sustainable society. Considering the impact of ourbusiness on the environment and society, we seek the understanding and compliance of the construction companies thatare our key suppliers. We thus include a clause requesting
compliance with the procurement standards in every construction contract template. In addition, we notified construction
companies that had concluded construction contracts prior
to the establishment of the revised template to promote theirunderstanding of the standards and request compliance. Goingforward, we plan to take similar actions with other suppliers,
such as contractors, as we work to expand circulation of the
procurement standards.
We are also committed to raising employee awareness about
the procurement standards. In fiscal 2022, one of the topics ofour mandatory sustainability training program for all employees
was promoting accurate understanding and proper applicationof the standards.

Implementation of Sustainable
Procurement Standards
Developing/reviewing
procurement standards· Monitoring
improvements· Implementing further
improvement
measures

Disclosing
procurement
standards· Identifying issues inthe supply chain· Implementing
improvement measures

Disseminatingprocurement
standards

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Ascertaining
the status of
suppliers’
compliance

Sustainability Finance Reporting

Third-Party Assurance

52

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Improving Quality and Customer Satisfaction

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Policy and Concept
The Tokyo Tatemono Group pays attention not only to quality inthe “hard” aspect of our business—our buildings—but also toquality in the “soft” aspect, such as through the services weprovide to our customers. We believe that our competitivenessas a business derives from building safe and secure communities and continuing to improve customer satisfaction. Therefore,
access to public transportation is taken into consideration in
all real estate developed by the Group, including office andresidential buildings. Similarly, we have also assessed our
accommodations for people with disabilities, and by introducing
barrier-free accessibility and universal design, we aim to create
spaces that are accessible to all customers, including theelderly and people with disabilities, as well as to local residents.
Moreover, we have introduced various systems that reflect
customer feedback into our business activities as well as strive
to further enhance quality from the customer perspective andimprove the satisfaction of our customers.

The Human Building Philosophy

CPB

In the Commercial Properties business, we are guided by theconcept of the “Human Building,” in which people are always
at the center. We want our customers to feel safe, secure, andcomfortable across both the hard and the soft aspects. To
ensure that all employees in the Commercial Properties business have a deeper understanding of this concept, and to link
it to further efforts, we have formulated Five Actions (Code of
Conduct). We put these guidelines into practice in our daily
work, with the goal of creating a building that our customers
can feel is “My building.”

The Brillia Concept

RB

The Residential Business is engaged in two major businesses.
One is the residential condominium business, centered on the
Brillia series, with its emphasis on refinement and comfort. The
other is the residential leasing business, centered on the Brillia
ist series of rental condominiums for those seeking unique

lifestyles. The underlying concept of both is the Tokyo TatemonoGroup’s unique disposition toward a constant aim for achieving
and maintaining the cutting edge in elusively exquisite comfort.
Brillia is a comprehensive brand designed to provide a residential
experience that matches customers’ lifestyles. Through it, we
provide the various services of the Group, including planningand development, management, after service, brokerage, andrenovation, supporting customers by enabling lifestyles of value.

Quality Control System
Quality Control Initiatives in the Commercial
Properties Business

CPB

To deliver an experience that makes customers feel safe,
secure, and comfortable, we have established a quality control
system and standards for each phase of the Commercial
Properties business, from planning and design through toconstruction and operation. In addition, we quickly respond toany defects or problems after construction and implement the
PDCA cycle to develop the next property.

Carrying Out Inspections in Building Management

CPB

Tokyo Fudosan Kanri, which is engaged in building management, has established and is operating a quality management
system of its own. The aim of this system is to maintain andimprove the quality of its overall building management andthereby increase customer satisfaction.
The inspection of the management site, an essential step inthis process, is carried out by both regular checks by thedepartment in charge and voluntary checks by the managementsite. This is to ensure that legal compliance and the qualityof in-house standards are met with respect to generalmanagement, cleaning, and firefighting.

Quality control in the Commercial Properties Business
During planning* This cycle is also implemented in large-scale renovations of aging buildings.

During design and construction

Planning and proposal

Blueprint check, site inspection, structural review, etc.

In charge: each department of the Commercial Properties businessIn charge: Building Engineering Department· Reflecting the needs of customers and society· Ensuring safety, security, and comfort· Exercising consideration for the environment· Realization status of the project· Exercising consideration for the environment· Ensure high-quality standards based on various specifications
and checklists

During management and operation
Post-completion inspections(three times in total: at six months,
one year, and two years after completion)

In charge: Building Engineering
Department· Investigation and handling of initialproblems

Cycle to enable planningof appealing products andensure high quality

Property inspections,customer satisfaction surveys(conducted annually)

In charge: each department of
the Commercial Properties business· Investigation and handling of initial defects
or problems· Confirming and responding to results ofproperty inspections, customer satisfaction
surveys, etc. (customer needs)

53

Upon completion of construction
Completion inspection (multiple times)
In charge: Building Engineering Department· Realization status of the project· Measures and responses to minimize defects or problems
during operation

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Improving Quality and Customer Satisfaction

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Steadfast Commitment to Quality Control
in the Residential Business

Our Brillia residential condominium business maintains design
guidelines for refinement and rigorous standards and management systems to offer comfort to our customers. Our quality
management starts with safety. Responsible departments ateach stage of construction from planning to completion adhere
to our in-house quality standards. Following a multi-stage
check that includes inspections by third-party organizations,the property reaches completion.

Brillia Construction Site Tour

Sustainability Finance Reporting

Third-Party AssuranceRB

Brillia offers construction site tours, embracing the idea thatproviding information to customers leads to greater peace of mind.
We ensure customers have visibility to as many stages of theconstruction as possible in areas that will not be available after
the completion of the building. Staff serve as guides to explain
the construction. Customers have given us highly positive
feedback on the tours, saying that they were easy to understand,with specific examples and plain language.

Responding to Defects or Areas for
Improvement as They AriseRB

We make sure not only to deal promptly with any defects or
areas for improvement that arise during the construction phaseor after delivery, but also share these with the relevant departments. For particularly urgent matters, we immediately informteams at the construction sites, as well as revising manuals
and providing employee education to prevent recurrence.

Brillia Condominium Management Quality

Data

RB

RB

Property managers and management companies support thedaily lives of customers living in condominiums under their care.
Our condominium management company Tokyo Tatemono
Amenity Support has formulated Brillia Life Support to fully
support the lives of the Group’s condominium residents.

Brillia Life Support makes six promises to residents to ensure
the refinement and comfort of their lifestyles. The service offers
appropriate upkeep and maintenance of condominiums, works
to improve customer services and support by property managers, and properly sustains condominium value (a key financial
asset for our customers).

Quality Management Through Completion of Construction
Design· Use of housing performance display systems· Operated using quality checklists including approx. 1,000 items· Conducting two-stage quality examinations throughout construction

Land environment measures / ground survey / noise measurement
Prior Quality Discussion (Tokyo Tatemono / design company /management company)
Quality Discussion (Tokyo Tatemono / design company /construction company)

Breaking ground /Construction· Various inspections at each stage· Use of building reports to update customers

Structural inspection (on-site inspection with test pile,bar arrangement inspection, building frame inspection, etc.)

Brillia Aftercare Support

RB

We support customers so that they can live comfortably fromthe day they move in until the day they sell their property,
based on a theme of Comfort from Day One.
In addition to regular repairs through the second year after
completion, we provide unique regular checkups to our residents at the 10-, 15-, and 20-year marks through Brillia Home
Regular Checkups.
Most housing equipment breakdowns occur between six andten years of occupancy—after the usual after-sales service
period ends. To address this issue, in April 2020 we introduced
Brillia Equipment Safety Support 10, a new ten-year service forrepairing and replacing housing equipment. In addition, tosupport the comfortable lifestyles of our customers, we also
introduced the Brillia Life Support App, a smartphone-based
app that makes it easy to request emergency repairs of housing equipment, buy replacement supplies, and order housecleaning services.
Brillia Strengths (support after moving in) (Only available in Japanese)

Brillia Life Support: The Six Promises of Brillia Life Support
Refined living
Living With the Future in Mind

Peaceful LifeManagement as Lifestyle Partner

Maintain and improve residence asset value

Making actual condominium management visible to residents· Regular free unit inspection· Management company-conducted,
comfort-focused repairs· Development of long-term repair plans· Annual visual inspections of building exterior· Submission of account and operational
audit reports· Monthly property manager reports

Equipment inspection(Equipment Subcommittee, function inspection, etc.)

Smart Living

Living With Joy for Each Day

Pamphlet collation inspection· Housekeeping services· House cleaning· Renovations, innovation· Brillia Training Center-hosted training programs(accredited vocational training school)· Cleaning checks by supervisors

Living More Abundant Lifestyles

Secure Living

Online building reports

Interim inspection
Framework inspection

Brillia Construction Site Tour

Completion inspection

Services for private areas

Support for communication events

Completion

54· Support of Tanabata festival/ Christmas
events· Brillia owner’s club

Property manager support and meticulous cleaning

Preparation for and prevention of emergencies, disasters, and crime· Emergency response service· Fire drill support· Emergency supplies

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Improving Quality and Customer Satisfaction

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Initiatives to Improve Customer Satisfaction
Refining Our Work with Customer Satisfaction Surveys

The Office Buildings Business conducts customer satisfaction
surveys once every year for office building tenants. Our surveys
gather direct, unfiltered customer perspectives addressing
safety, security, and comfort. We use these perspectives torefine our work based on tenant needs. Moreover, we sharethese refinements with other relevant departments to further
improve tenant satisfaction.
For example, we have improved PC screen operability anddetailed zoning during construction for air conditioning equipment in buildings, offering greater control. We have also
worked to install e-cigarette smoking rooms and adopt
measures related to blind zones for mobile phones.
(Data) Office Building Customer Satisfaction Survey Results P.91

Customer Satisfaction Survey, Response Ranking (FY2022)
Satisfied

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

CPB

Dissatisfied

#1
#2
#3
#1
#2
#3

Common area cleaning status
Fire and disaster prevention systems in buildings
Response by facility staff
A/C temperature and humidity
Cellular signal reception
Divided smoking/non-smoking environments

Improving Customer Satisfaction through Dialogue

RB

In the Residential Business, we have set up many opportunities
to talk with customers. By listening to their feedback andincorporating it into development, we can improve upon theareas of their requests. In this way, we aim to increasecustomer satisfaction.

During planning

During design and prototyping· Feedback survey· Impression survey· Group work
· Survey, analysis

At completion,
management

Cycle of ideal
development basedon customer
feedback

During construction· Group work
· Survey, analysis· Improvement,
exchange of opinions· Improvement,
exchange of opinions

Bloomoi, a Co-Creation Project for Housing and Living

RB

Bloomoi is a project focusing on home and lifestyle co-creation.
Through it, we have engaged extensively with working women,
thinking together with them to bring forth new home ideas.
To mark the 10th anniversary of bloomoi in 2022, we further
expanded the scope of co-creation. We are listening to a morediverse range of people, striving to value individuality fromvarious angles as we plan products and deliver services.
bloomoi

Improvements Based on Customer
Recommendation (NPS) Surveys

RB

In our Residential Business, we see customer loyalty as a key
performance indictor. We survey customers who have purchasedfor-sale condominiums, measuring the strength of their recommendations (NPS = Net Promoter Score) at three stages: at thetime of contract, on delivery, and after moving in.
The survey asks customers to rank their likelihood of recommending Tokyo Tatemono (products and services) to friends orcolleagues on a scale of 0 to 10. The results are classified into
“promoters” (10 to 9), “neutrals” (8 to 7), and “critics” (6 to 0).

55

The degree of loyalty customers feel toward Tokyo Tatemono
is calculated based on the percentage of “promoters” minus
the percentage of “critics.” We use the survey results toimprove product development, sales, quality control, andafter-sales service.

Raising Employee Awareness through Training
TFK Training Center for Building Management
Improvement

CPB

Tokyo Fudosan Kanri established the TFK Training Center toimprove work quality and cultivate talent.
The center is equipped with equipment and devices that are
in actual use in building management (electricity, air conditioning, hygiene, etc.), as well as a mock cubicle for responding toa power cut. This allows trainees to learn through a uniquecurriculum that mixes practical skills and training.
At this facility, we conduct hands-on training about topics
such as fundamental knowledge, operation methods, handling,
repair, and parts replacement for equipment and systems. We
also provide various seminars for all employees, including new
graduate hires.

Brillia Training Center for Education of andExchange in Condominium Management

RB

Tokyo Tatemono Amenity Support operates the Brillia Training
Center to improve skills and educate management staff oncondominium management operations.
The Tokyo prefectural government has certified the center asa vocational training school based on the Human Resources
Development Promotion Act. This recognizes the fact that thecenter nurtures new condominium property managers throughhigh-quality vocational training. The center features equipment
actually used in facilities (condominium management offices,
fire-fighting facilities, plumbing facilities and piping facilities,

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Improving Quality and Customer Satisfaction

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reportingetc.), enabling a wide range of specialized training for management staff.
The center also holds seminars that are of benefit to theoperations of management associations, including seminars
for newly appointed chairpersons and large-scale repair
construction seminars.

Raising Employee Awareness throughOur Awards System
The Human Building Competition: Facilitating
Customer Safety, Security, and Comfort

CPB

The Tokyo Tatemono Group holds the Human Building
Convention once a year as an event to facilitate information
sharing and communication. All Group companies involved with
our Commercial Properties Business participate.
Through this competition, we not only communicate themanagement policies of the Office Buildings Business, but alsoachieve safety, security, and comfort for our customers.
Furthermore, we introduce and celebrate examples of outstanding implementations of our Human Building philosophy.
By sharing these positive examples and cultivating interaction
among group employees, we hope to encourage more
improvements leading to safety, security, and comfort forour customers.
In 2022, three projects received awards, and examples of
excellent initiatives in each project were shared at the awards
ceremony. The awards ceremony was, for the first time in three
years, held as an in-person event. This gave employees ofgroup companies who are involved in the Commercial Properties
Business a chance to get to know each other better.

The Good Job Idea Competition:
Strengthening On-Site Capabilities

is aimed at improving customer satisfaction in areas such as
improved safety, security, and comfort, or proposals forenergy-saving measures. Every six months, we select andaward examples of good practices provided by each of our
locations with the Good Job Idea Award. In fiscal 2022, 204
ideas were recognized with awards.
In addition, we hold the Good Job Idea Competition annuallyas an opportunity for presenting and awarding especially superior examples of award-winning ideas in the system fromthroughout the year. Through these efforts, we raise awarenessof improvement at each work site, sharing improvement actions
throughout the company to improve quality and service levels.

Brillia Design Award Internal Commendation
System

We introduced the Brillia Design Award commendation system
to our Brillia properties to facilitate even greater refinement,
recognizing designs that reach customers under a quantitative
rubric based on survey responses from relevant stakeholder
meetings. This annual program judges the designs of condominiums completed during the calendar year and recognizes
properties deemed outstanding. The judging process evaluates
properties based on outstanding achievement in design basedon seven categories: (1) overall plan, (2) exterior, (3) plants/
landscape, (4) approach and entrance, (5) refinement in daily
flow lines, (6) detail, and (7) challenges in the project.
We use this evaluation system to share superior examples
and pursue greater refinement. This system also raises awareness and motivation of team members with respect to theBrillia Design.

CPB

In 2015, building management firm Tokyo Fudosan Kanri introduced the Good Job Idea Award commendation system, which

Third-Party AssuranceRB

External Recognition
Tokyo Tatemono Receives Good Design Award

RB

Tokyo Tatemono received the 2022 Good Design Award* fortwo of its condominiums: the for-sale condominium Brillia KyotoMatsugasaki and the for-rent condominium Brillia Kitayama.
Brillia Kyoto-Matsugasaki was highly evaluated for the excellence of its holistic design in a residential area that calls for
careful consideration of the landscape. The award also recognized its achievement in pursuing finishing touches such as
the garden, volume arrangement, and common area while
maintaining a sense of harmony with nature.
Situated in an area that has long been home to buildings bymany renowned architects, Brillia Kitayama was highly evaluated for its elegant façade design, which blends in with thelocal setting of abundant nature and historical townscape.
Another point that was highly evaluated was its achievementof balance in creating both a stylish design and new living
space while ensuring livability.
* Organized by the Japan Institute of Design Promotion, the Good Design Awards
are Japan’s only comprehensive annual awards evaluating and commending
outstanding design.

Customer Satisfaction Survey

RB

In the Oricon Customer Satisfaction Survey (conducted by
Oricon ME, Inc.) released in February 2023, the Tokyo TatemonoGroup ranked third overall in the newly built condominiums forsale category (in the Tokyo metropolitan area), first in the tower
condominium category (condominiums with 20 or more floors)by size, and first in the DINKS category by family composition.
In the results of the survey on residents’ intentions to continue
living in a property by the same developer,* the Group received
a strong endorsement with a positive response from 94.8%
of respondents.
* The percentage was calculated based on the results of the question in the same surveythat asked, “How long would you like to continue living in a house built by this company?”

56

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Revitalizing and Utilizing Real Estate Stock

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Policy and Concept

Revitalization of Housing Complexes

Housing complexes built throughout Japan supported thenation’s rapid growth after World War II. Several decades later,
many of these aging structures face serious issues, including
concerns about resilience against earthquakes and security
and the lack of elevators. Moreover, although these housing
complexes were once home to many child-rearing families,
resident populations are now aging and declining. Consequently,
in addition to revitalizing the aging structures themselves, amajor issue is the revitalization of communities that foster theinterpersonal connections of local residents.
Through reconstruction and redevelopment of properties
such as housing complexes and buildings, the Group is building safer and more secure communities for customers andlocal residents. Activities such as reconstruction also enable
us to create new value for the coming era and to revitalize
local communities.
Feature: Connecting Residents’ Thoughts and Passing on a Historic Community to the Future
Shakujii Koen Danchi Apartment Reconstruction Project P.16
(Data) Revitalizing and Utilizing Real Estate Stock: Indicators and Results P.91
Tokyo Tatemono Condominium Reconstruction (Only available in Japanese)

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Revitalizing Housing Complexes
Total units before reconstruction

GovernanceCorporate Governance(Units)Risk Management

2,000

Total units after reconstruction

1,846 1,884 1,884 1,884
1,644 1,644 1,644

Compliance

Data

1,000

875

875

875

971

994

994

994

Sustainability Finance Reporting

Shakujii Koen Apartment Complex Reconstruction Project(rebranded as Brillia City Shakujii Koen ATLAS)

A single reconstruction project to revitalize one of thelargest and oldest apartment complexes in Tokyo, using the
Act on Facilitation of Reconstruction of Condominiums.
In this project, we set out to solve the problems of aging
buildings and facilities and aging residents. To do this, weformulated a layout in which all residential buildings facesouth, a greenery plan, and a facility plan aimed atensuring that the new condominiums continue to support
a thriving community where several generations can live
together with peace of mind.

Itopia Hamarikyu Reconstruction Project

Location

3 Kami-shakujii, Nerima-ku, Tokyo

Units after
844 units (previously 490)
reconstruction
Completed

June 2023 (scheduled)(rebranded as Brillia Tower Hamarikyu)

This project involved rebuilding a large-scale condominium in central Tokyo, mainlycomprising one-room units. The building was in urgent need of reconstruction to
give it greater resilience against earthquakes. However, some 80% of the property
rights holders did not actually reside in the condominiums, which made it difficult toreach a consensus. As a project collaborator, Tokyo Tatemono helped bring about aresolution that cleared the way for the building to be reconstructed. With the aim ofcontributing to the development of the property as a rare place to live in an area
where office and commercial facilities are being developed, we created green
spaces where people can feel at ease and introduced childcare support facilities.

Location

1 Kaigan, Minato-ku, Tokyo

Units after
420 units (previously 328)
reconstruction
To becompleted

September 2023 (planned)

Kojimachi Sanno Mansion Reconstruction ProjectThis building was in urgent need of a radical solution to its inadequate resilienceagainst earthquakes and state of deterioration. Since this could not be done throughrepair and renovation, we cooperated with property rights holders with the aim ofbringing about reconstruction at the earliest possible date. Under Tokyo’s Urban
Housing Comprehensive Design System (HCDS)*, the floor space index requirement
will be relaxed, and the number of residential units will be increased from the current
57 to 106 seismic-isolation condominiums. The project is a one-minute walk from
Kojimachi Station on the Tokyo Metro Yurakucho Line in central Tokyo. Consideration
was given to the design to create a look suited to the traditional Bancho district ofhistoric Japanese residences.

Location

Niban-cho, Chiyoda-ku, Tokyo

106 units (previously 57,
Units after
consisting of 53 residential andreconstruction
4 commercial units)
To becompleted

Summer 2026 (planned)* A system that allows floor space index and height restrictions to be relaxed
if the design ensures a certain amount of open space on the premises.
0

Third-Party Assurance

Key Ongoing Projects

2016

2017

2018

2019

2020

2021

2022

57

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Revitalizing and Utilizing Real Estate StockManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Revitalizing and Utilizing Real Estate Stock

ESG Management
Initiatives and External Evaluation for Sustainability

Key Achievements to Date

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthTama New Town Suwa 2-chome Housing Reconstruction Project

Location

2-chome, Suwa, Tama City, Tokyo

Completed

October 2013

Units after
1,249 (previously 640)
reconstruction

Senri-Tsukumodai A Condominium Complex Reconstruction Project

3, Tsumodai, Suita City,
Osaka Prefecture

Completed

December 2019

Corporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Completed

November 2020

Units after
38 (previously 23)
reconstruction

July 2014
Brillia Komagome Rikugien

Location

2-chome Momochi, Sawara-ku,
Fukuoka City,
Fukuoka Prefecture

Completed

March 2015

Units after
232 (previously 130)
reconstruction

Residence Momochi

Reconstruction of Koganei Corpus Apartments(Rebranded as Brillia Hatanodai)

Due to the aging of the building and facilities, constructed approximately 60
years ago, the owners reached a consensus on the decision to reconstruct thebuilding. This became the first case in Shinagawa Ward to apply the Act on
Facilitation of Reconstruction of Condominiums. A rare reconstruction given thesite location in a first-class low-rise residential area, it was ensured that thecondominiums harmonized with the landscape while taking into consideration
ventilation, lighting, barrier-free access, and security.

6-chome Hatanodai,
Shinagawa-ku, Tokyo

Completed

It was decided to rebuild all four buildings in the complex due to aging andseismic resistance issues. The plan was to create safe and secure buildings thatconsidered various needs such as barrier-free design.

Brillia City Senri Tsukumodai

Location

6-chome Honkomagome,
Bunkyo-ku, Tokyo

Reconstruction of the Fujisaki Residential Business (rebranded Residence Momochi)(Rebranded as Brillia City Senri Tsukumodai)

Units after
202 (previously 96)
reconstruction

Hiratsuka-cho Housing Reconstruction Project

Location

Units after
49 (previously 25)
reconstruction

It was decided to reconstruct the building due to issues of deterioration that had
occurred over its 50-year life. Residents and other stakeholders took part in avariety of studies as the project went forward.

Location(rebranded as Brillia Komagome Rikugien)

It was decided to reconstruct the building around 40 years after its original
construction due to its inadequate seismic resistance and the aging of its
facilities. An adjacent site was acquired and the building was rebuilt, doubling thetotal number of units from 25 to 49. A key feature of this project was its speed,as the building was completed only four years after the signing of the contract
in 2010.

Brillia Tama New Town

Diversity & Inclusion

Governance

Reconstruction of “Heights Komagome Apartments”(Rebranded as Brillia Tama New Town)

This is a revitalization project for Tama New Town, which has a history of over 40
years. It is one of the largest reconstruction projects in Japan. The decision wasmade to reconstruct the building, due to the aging of the housing and the factthat the residents are elderly. The property will be reborn as a multi-generational
community, while the greenery and other key features of the living environment
will be preserved.

(rebranded as Brillia Koganei Sakuracho)

The building, which was approximately 50 years old, was deteriorating, and in2013 the decision was made to rebuild it. It was transformed into an eight-story,
114-unit condominium. The maintenance and management of the condominium
was changed from self-management by residents to outsourcing to a management company, which also improved the living environment.

Location

2-chome Sakura-cho, Koganei
City, Tokyo

Completed

April 2016

Units after
114 (previously 80)
reconstruction

Brillia Hatanodai

58

Brillia Koganei Sakuracho

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Value co-creation and innovation

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Contributing to Our Communities

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialPolicy and Concept
The Tokyo Tatemono Group believes that community engagement and volunteer activities contribute not only to community
development, but also to sustainable business growth. With
this in mind, we conduct a variety of activities to help
strengthen ties between people in urban environments while
supporting the well-being of local residents. In the various
regions where our Group operates, we co-create with stakeholders such as local residents, NPOs, the public and private
sectors as we carry out various initiatives to enhance the valueof the region. In this way, we work as a member of the local
community to help build a prosperous society.

Initiatives for Urban Regeneration
and Revitalization
For over 120 years since its establishment, Tokyo Tatemono
has been headquartered in the Yaesu, Nihonbashi, andKyobashi area. It faces Tokyo Station, the center of Japan’srailroad network, making it unparalleled in its convenience asa location in Japan. It is a hub of global business where people,
goods, and information are concentrated. Since the Edo period,
Tokyo has developed as a financial, commercial, and cultural
center. Now we are redeveloping the area to further energize it asa center of industry. By tapping into the appeal of the area, we
aim to realize one of our material issues: that of strengthening
the competitiveness of Tokyo as an international city.
The Yaesu Project and Gofukubashi Project that we aredeveloping in this area have been designated as National

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Strategic Special Zones*. The city is being transformed into abusiness and transportation hub, and we are taking advantageof the geographical location, where many large corporations
are based. By creating a base for the activities of startups andventure capitalists in the area, we will make it easier for large
corporations to invest in startups and for both parties to collaborate more actively. Through these projects, we are working tocreate an innovation ecosystem, promoting innovation in theentire area by stimulating interaction among companies andpeople gathering from across Japan and abroad. This area has
been recognized as a Certified Regional Council under the
Tokyo Metropolitan Government’s Fiscal 2020 Support Projectfor Promoting the Formation of an Innovation Ecosystem, with
Tokyo Tatemono serving as the lead manager.
* This system was established to implement bold regulatory and institutional reforms
necessary to realize the growth strategy by building “the world’s most business-friendly
environment.”

Conceptual diagram of the virtuous circle created byan innovation ecosystem

Contributing to Our Communities

Conceptual Diagram of New Innovation Ecosystems Built
through Redevelopment

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Major
companies

GrowthGovernance

Ideas/Technology
Transfer

Corporate GovernanceRisk Management

Startups

Open
innovation
Supply ofresources
SupportSustainability Finance Reporting

Entry

Data

Transfer

Compliance

Overseas

Investors, etc.
The Yaesu, Nihonbashi, and Kyobashi area

Third-Party Assurance

59

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Value co-creation and innovation

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Contributing to Our Communities

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building

Co-Existing with Communities
At the Tokyo Tatemono Group, we are committed to community development. Key in this is for our employees to have themindset of being members of a community. They must learn
about history and culture and pass it on to future generations.
We are promoting initiatives in the Yaesu, Nihonbashi, andKyobashi area and various other areas that are rooted in theirlocal communities.

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Participating in the Sanno Festival,
One of Japan’s Three Major Festivals
The Group is an active participant in passing down traditional
culture through the Sanno Festival, a key event for the neighborhoods of the Yaesu, Nihonbashi, and Kyobashi area andone of Japan’s three major festivals. The event is held oneven-numbered years.
Many group employees participated in the festival. The
employees helped to carry mikoshi (portable shrines) preparedby each town council, joining a spirited, lively procession alongside members of local neighborhood associations.

Community Outreach Activities in Yaesu, Nihonbashi, and Kyobashi Neighborhoods (2022)
Event name

Sakura Festival
Hana Kaido Clean Walk
Morning Clean-up
Chuo City Clean Day, Operation
Tokyo Ekimachi Kirapika
Sanno Festival
Nihonbashi Bridge Cleaning
Kyobashi Bon-Odori
Chuo-ku Marugoto Museum
Tokyo Illumilia
Hakone Ekiden Roadside
Security Volunteers
Hatsuuma Festival at Oman
Inari Shrine

Contributing to Our Communities

Sustainability Website

Meet with Flowers

Human Resource Investment and Development

Special Back Number: Tokyo Tatemono Urban Development Activities

Health Management / Occupational Safety and Health(published 2017) (Only available in Japanese)

Art in Tokyo YNK, T3 PHOTO
FESTIVAL TOKYO

No. of group employees
participating*1

Our Group’s Activities and Contributions

Cherry blossom viewing, performance by EDO Firemanship Preservation Association(co-sponsored), distribution of support flowers*2 (co-sponsored)
Picking up garbage, replanting flower beds along Chuo-dori (the Group also served as office
staff)
Clean-up activity around Tokyo Station organized by the Company
Joint cleanup activities around Tokyo Station organized by the town council, JR and Marunouchi
Participation in the Sanno Festival, one of the three largest festivals in Japan, as mikoshi
bearers and lantern teams
Helping to clean the famous Nihonbashi bridge
Assisted event and participated as dancers in the Kyobashi 2-chome Bon-Odori (traditional
festival dance)
Support for events to rediscover the charms of Chuo City, participation as staff members
in events
Assistance in planning and operation of events to illuminate Sakura-dori and Naka-dori streetsin the Yaesu and Nihonbashi areas
Ensured the safety of athletes, spectators, etc., along Chuo-doriSupported revitalization of Yojuin Street (provision of banners, street light decorations, lanterns,
and curbs)
Purchase and free distribution of surplus flowers* to support flower growers
Sponsored events and provided a venue for young artists, photographers, students, etc., toshowcase their work5
8
99
Total: 166
3 days, 40 people
in total
22
5
3
2
5
7
Total 24 people
over 8 days
Total 10

*1 In 2022, the number of participating employees was limited to prevent the spread of the impact of the COVID-19.
*2 Flowers purchased from growers who were badly affected by typhoon damage and the COVID-19 pandemic.

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting
Sanno Festival

Third-Party Assurance

Nihonbashi clean-up (helping to clean bridge)

Sanno Festival (lantern team)60

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Strengthening Tokyo’s competitiveness as an international city

Contributing to a safe and secure society

Community building and revitalization

Wellbeing

Addressing the diverse needs of customers and society

Value co-creation and innovation

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Contributing to Our Communities

ESG Management
Initiatives and External Evaluation for Sustainability

Condominium Development That Helps
Build Communities

Clean-Up Activities

Feature:Environment
Environmental Management
Promoting a Decarbonized Society

The Tokyo Tatemono Group regularly conducts cleanup activities
to beautify the city in areas such as the Yaesu, Nihonbashi, andKyobashi area, using the time before work begins. In recognitionof these activities, we received a letter of appreciation from the
Nihonbashi Cleanup Project Cooperation Association.

External evaluation and Certification for Green Building
Water Resources
Chuo-dori Path Flower Beds

Promoting a Recycling-oriented Society
Biodiversity

Encouraging Lively Communities

Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

Morning Clean-Up Activities

Supply Chain Management
Improving Quality and Customer Satisfaction

Partnering with Non-Profit Organizations

Revitalizing and Utilizing Real Estate Stock

Since 2005, Tokyo Tatemono has, as a member of NPO Hana
Kaido, supported the management of sidewalk flower beds
along the pavement of Chuo-dori in the Yaesu, Nihonbashi, andKyobashi area. We invite employees from across the Group to
participate. Each year, about 50 employees take part in clean
walks (including maintaining flower beds and replanting flowers)
and other community events. We also hold flower planting
events for local elementary school children six times a year.
Since 2017, we have been a member of the secretariat of
the Cheering Supporters for Woods of Chuo Ward, an NPO. As
part of these activities, we hold woodworking workshops forchildren and make planter covers out of tree trimmings fromthe forests of Chuo Ward. We installed about 100 of theseplanters on the sidewalks of construction sites through the
NPO Hana Kaido, a project that not only promoted the use ofthinned wood but also raised awareness of the Chuo City Forest.

Contributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

The Tokyo Tatemono Group holds a number of events inwhich many local residents participate to help grow andinvigorate communities.
In Nakano Central Park, our office building in Nakano-ku(Nakano-ku, Tokyo; completed May 2012), many events are
held, using about 3 hectares of lush green open space (public
vacant land, etc.). This initiative received the 2014 Good DesignAward in the category of Design of Community Development.
In April 2023, a joint venture led by our company has been
selected as the designated manager of Nakano Shiki no Mori
Park and Kakoimachi Hiroba, two public spaces that are adjacent to Nakano Central Park in Nakano-ku.
Nakano Shiki no Mori Park is designated as a local disasterprevention park. By properly running and managing the park, wewill contribute to the safety and security of the local community.

61

Brillia City Shakujii Koen ATLAS (Nerima-ku, Tokyo; completed
in late June 2023) is a reconstruction project of Shakujii Koen
Danchi, which was one of the oldest and largest housing
complexes in Tokyo. We wanted to ensure that the communitythat was there before the reconstruction would continue during
and after its completion. With this in mind, we established“Shakuji-ii BASE” right next to the condominium’s sales center.
This served as a place for interaction between new and oldresidents and the local community.
The space can be used by anyone, including former residents
who have temporarily moved out during the reconstruction,
new condominium purchasers, and local residents. By serving
as a rental space where residents of the area can hold eventsand a place for local communication and as a local information
station, it also contributes to community building.

Brillia City Shakujii Koen ATLASInteraction at Shakuji-ii BASETOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Human Resource Investment and Development

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Policy and Concept

Human Resource Development System

Tokyo Tatemono sees talent as the foundation of ourorganization, enabling our business to create value andgrow sustainably.
We aim to better cultivate talent and create workplaces
capable of creating added value. At the same time, we strive
to innovate ourselves into a highly optimized organizational
culture beyond individual or departmental optimization. As
part of our innovation, we formulated our Human Resource
Policy, based on which we have built our human resource
development system and are working to acquire and develop
our next generation of talent.
We have also identified improving employee growth andjob satisfaction as a material issue for the Group. To address
this issue, we have established an average training time of 15hours or more of training per employee and a 100% career
training participation rate each year as targets for promoting
skills development.

We carry out an array of training programs based on employees’
stage of development for the purposes of helping employees
recognize their roles and developing employee skills.

Human Resource Policy

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Corporate Governance

Ideal human resource: a person that is trusted and that

Data
Sustainability Finance Reporting

Third-Party Assurance

Training per Management Level

General Managers

Self-Edification/
External Dispatch

Support Systems for
Acquiring
Certifications· Support for
attendingbusiness/
graduate school· Single-subject
business school
training dispatch· Cross-industry
training· Distance learning· External
Seminars· Lectures byExternal Experts· Real Estate
Broker· The Official
Business Skill
Test inBookkeeping· Japan Business
Law Exam· Certified Building
Administrator· Real EstateConsulting MasterExam· Real Estate
Securitization
Master· Urban Renewal
Planner· Real EstateAppraiser· First-classArchitect

New General Manager Training
New Group Leader Training

Managers

New Manager Training

Assistant Managers

New Assistant Manager Training
Elective Training

where employees can feel their growth· Project Management· Finance· Management Strategy · Facilitation· Critical Thinking· Design Thinking· Scenario Planning· Corporate Finance

Senior Employees

CareerTraining

New Employees· New Employee Training for
New Employees· Group Training for Employees intheir Third Year after Graduating· Basic Practical Real Estate Training

Adoption of a Talent Management System
We introduced a talent management system in 2019 to enable
us to use our accumulated talent data more efficiently as wedevelop and assign excellent talent. As well as management ofcareer information to date, the system is also used for central
management of other employee information such as goal
management and periodic career interviews. This enables us toconsider assignments and talent development in terms of thecharacteristics of each employee.

Global Training

Executive Training

2 Realization of a satisfying working place

Risk Management
Compliance

Summary 2022 Training ProgramsGroup Leaders

1 Developing ideal human resource
opens new avenues for the future

Governance

From the time a new graduate joins Tokyo Tatemono, we takea keen interest in their development. We provide a collective
training program offering basic business training.
To provide experience and broader knowledge required for
employees of a comprehensive real estate company, we rotate
new graduate hires among three departments to gain experience

Executives

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Young Employees

in their first ten years of employment. To strengthen the OJTdevelopment cycle in the workplace, we have set up training
for managers responsible for instructing others, as well as a
new employee counselor system.
By sharing details such as job characteristics and EQIs bothwith new hires and counselors, we are able to build coachingplans tailored to individual needs, and to conduct on-the-job
training accordingly. We also conduct a survey of new employees and provide them with an output plan for further personal
growth. This helps them to form a clear image of their own
personal growth.

62· Logical Thinking· Accounting· Presentation· Attending
language schools· Overseas on-site
observation· Overseas
dispatch training· Internships withlocal subsidiaries

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Human Resource Investment and Development

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Mid-Career Employees

Overseas Training for Global Human Resource Development

Employee Engagement Survey

For mid-career employees, we provide enhanced programs tofoster a culture of learning. This includes optional in-housetraining, support for study at business schools, and participation in cross-industry meetings, providing a system that gives
employees opportunities to consider the knowledge and skills
they need and choose accordingly. We provide career training
so that employees can learn how to think independently about
how they will shape their careers and develop their future
career prospects. In addition to this, we provide assessment
training for newly appointed assistant managers and newly
appointed managers, enabling them to take stock of their own
skills and learn the knowledge and thinking they will need forproblem-solving.

A key strategy of the medium-term management plan isdeveloping global human resources who will contribute to thegrowth of our overseas business. To achieve this and toincrease the global mindset among our employees, we areconducting overseas training. (Past destinations include China
and Malaysia. This training was put on hold in 2020, 2021 and2022 due to the pandemic. In 2021, we carried out training inJapan with the aid of an outside lecturer.)

We conduct periodic job satisfaction surveys of our employees
as we work continuously to create a workplace that is rewarding to work in. We have been using an external agency toconduct an employee engagement survey of all workers tomeasure the level of connection that they feel toward thecompany. The survey is carried out periodically (generally once
every six months). We report the results of the survey, alongwith future actions planned in response to it, to management
and to employees, also sharing the issues raised by the findings. When reporting the results, we also explain various
aspects of the survey such as the purpose of the questions,
how to interpret each question and the results, to ensure a
correct understanding of the results. In this way, we work
toward future improvements.
By continuing to conduct this survey, we will gain a quantitative understanding of the relationship between the Company
and its employees. By planning actions in response to it
and carrying out various measures, we will in turn build
a healthy organization.
The FY2022 survey identified weakening communication
between hierarchical levels as a company-wide issue. Survey
results were shared and discussed at the Executive Committee.
In addition, feedback was provided to each general manager
individually, action plans were formulated before the next survey,
with specific advice from outside experts provided as necessary. In addition, to address the issue revealed by the survey,
we have put in place measures to revitalize communication.

Managers
Training for managers includes training to enhance daily line
management, including training for evaluators, mental healthtraining. In addition, since 2022, we have been conducting 360
degree surveys to assess the expectations of supervisors andsubordinates and the degree to which these expectations havebeen actualized. The results of the survey are fed back to thesubjects, and training based on the results is provided to help
them improve their daily management skills.

Support for Self-Development
We have established self-development programs and support
systems to aid employees in acquiring certifications. These areto help employees enjoy independent learning at all stages of
employment. To support our global expansion, we also offer
special support for learning the English and Chinese languages,
which strongly link to our business.

Group-Wide Workshops for Improving Group Synergies
With our diverse range of businesses, we are leveraging thestrengths of group companies to create synergies so that wecan provide optimal and better services to our customers.
To achieve group synergies, it is vital that we deepen
understanding and build a sense of kinship among employees,
going beyond the boundaries of the companies to which they
are affiliated. For this reason, we conduct a joint group training
program, sports days, and other events as opportunities foryoung employees to interact with each other.

MBO
We have introduced a goal management system to keep our
employees motivated and to encourage them to embracechallenges toward achieving their goals. This system breaks
down the company-wide business plan into business division
strategies and business plans for each division and office, as
well as individual plans. By clarifying employees’ individual
goals, the system is designed to ensure that the achievementof individual goals is linked effectively to the achievement oforganizational goals.
In addition, we have put in place a system to help employees achieve their goals. This is based on interviews between
supervisors and subordinates, held three times a year, andon-the-job training.

63(Data) Employee Engagement Survey P.89

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Human Resource Investment and Development

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:2022 issue: Measures against “weakening communication between hierarchical levels”

Environment
Environmental Management
Promoting a Decarbonized Society

Acceptance of Interns

Major improvement measures implemented in response to survey results (FY2022)“Strengthen the links between hierarchical levels”

Aim of measure:• Increase opportunities for communication among employees to deepen
relationships; create networking opportunities• Develop mutual understanding

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Measure 1:

Support for Internal Socializing

Details:• Set out snacks in the workplace, creating opportunities for employees tostrike up conversations• Open up the internal community space after regular hours, providing
beverages, including alcoholic beverages, free of charge• Provide financial assistance for social gatherings among employees fromdifferent departments• Introduced a social media tool for internal communication. As well asbasic details such as department and career background, employees
register a wide range of information, such as skills and hobbies, which
they can use to search for each other and make connections

Measure 2:

Implementation of 360 Degree Survey

Details:• Evaluation is carried not just between supervisors and subordinates, butalso between colleagues who work with each other• Conducting mutual evaluations from multiple perspectives helps ensurethat evaluations are fair and appropriate• Understanding each other's positions helps activate communication andstrengthen a sense of ownership

We accept undergraduate and graduate students for internships. The internship program is held twice a year, once in thesummer and once in the winter. In 2022, a total of 302 interns
were accepted.
We believe that through the internship experience, students
gain valuable exposure to working life as well as a chance tointeract with other students. This not only improves their capabilities, but also provides them with an opportunity to think
seriously about their own future. By giving students an opportunity to gain prior experience working at our organization, we
also aim to reduce mismatches in the real estate industry as awhole, as well as in our company. We believe that these efforts
can help prevent early job turnover, promoting the development
and retention of young workers.

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceAcceptance of interns

Corporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

64

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Social implementation of technology

Improve employee growth and job satisfaction

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Health Management / Occupational Safety and Health

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Policy and Concept
To enable our executives and employees to be healthy in bodyand mind and to work with a lively spirit, Tokyo TatemonoGroup has designated the president as the Chief Health Officer(CHO) and is working to maintain and improve the health ofeach individual Group executive and employee in accordancewith the Group Health Management Declaration. In addition,
the company has identified the personal growth and job satisfaction of our employees as a material issue. To deliver on this,we have set the following targets: increase the health checkup
and reexamination rates to 100% each year; keep the smoking
rate to 12% or less every year; increase the average annual
paid leave utilization rate to 70% or more each year.
We will promote initiatives to maintain and improve the healthof our suppliers through sound labor practices and a healthy
working environment, based on our Sustainable Procurement
Standards for our supply chain formulated in May 2021.

(Results and data of initiatives) (Only available in Japanese)
Supply Chain Management P.51

SystemThe Sustainability Committee, which is chaired by the president, sets occupational health and health-related targets, for-Health Management Strategy Map
Health investment effectiveness
Health investment

Health investment
related to various
effects

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party AssuranceTokyo Tatemono Group HealthManagement Declaration
The corporate philosophy of Tokyo Tatemono is “Trust beyond theera,” which incorporates our will to strive for the growth of thecompany and the creation of a prosperous society, taking pride in
the trust placed in us that extends over a century.
To embody this corporate philosophy, we believe the health of our
executives and employees, as well as their families, is vital.
We see the mental and physical health of our executives andemployees as the source of sustainable corporate growth andactively promote activities for every person to maintain andimprove their health.
I will strengthen our environment to achieve this as the chief
executive officer responsible for health management, and I vow
that we will endeavor to move toward health management asa unified Group.
Hitoshi Nomura
President and Chief Executive Officer
Tokyo Tatemono Co., Ltd.

mulates policies each fiscal year for achieving such targets,monitors progress on these, and evaluates their achievement.
Important matters are then reported to and discussed by the
Board of Directors, providing a system that is supervised by the
Board of Directors.
Tokyo Tatemono established the Health Committee, which
consists of representatives from the Personnel Department andeach office/location, as well as industrial physicians. The Health

Health Management / Occupational Safety and HealthIndicators for status of healthinvestment measures

Indicators for changes in awarenessand behavior of employees, etc.

Training for
managers

Participation rate
in management
training

Overtime working
hours

Measures toencourage employees
to take paid leave

Status of measures toencourage employees
to take paid leave

Percentage of
employees taking
paid leave

Final health-related
target indicators

Management issues tobe solved throughhealth management

Realizing thelong-term vision“Becoming

Participation rate
in self-care andline-care training

Health literacy
improvement

Work stylereform

ICT utilization

Mental WEB
health掲載版から流用予定。
measures（ https：//tatemono.com/csr/pdf/healthmanagement.pdf ）Percentage of
employees receiving
stress checks

Percentage of
employees withhigh stress

Periodic health checkups (withthose over 35 years old receiving
full medical checkups)

Percentage of employees
receiving periodic
health checkups

Percentage receiving
detailed medical
examinations

Forming exercise habits
Responsible drinking
measures

Percentage of employees
who exercise
Percentage of habitual drinkers

Percentage of employees
subject to specifichealth guidance

Smoke-freemeasures

Program forquitting smoking

Smoking rate
among
participants

65

Improving employee
engagementa Next-Generation
Developer”
by securing humanresources whocreate value

Improvingproductivity by
improving
presenteeism andabsenteeism

We aim to be agood company forstakeholders byleveraging ourbusinesses to solve
social issues andachieve higher
levels of growth as
a company.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Social implementation of technology

Improve employee growth and job satisfaction

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Health Management / Occupational Safety and Health

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society

Committee generally convenes once a month for the purposeof improving standards of occupational health in the workplaceand encouraging officers and employees to maintain andimprove their health. Moreover, we work to maintain andimprove health throughout the Tokyo Tatemono Group via
exchanges between group companies.
(Data) Health Management / Occupational Safety and Health Indicators and Results P.90

External evaluation and Certification for Green Building
Water Resources

Health Management Promotion System

Promoting a Recycling-oriented Society
Biodiversity

Chief Health Officer (CHO) and Chairperson of
the Sustainability Committee

Board of Directors

health management. Among the selected companies, Tokyo
Tatemono was recognized for the fifth time and the second
consecutive year as one of the “White 500” (the top 500
corporations in the results of the Health Management Survey).
In addition, eleven group companies including Tokyo
Tatemono were recognized by the
National Federation of Health
Insurance Societies (Kenporen) inTokyo, receiving Silver and Goldcertifications as outstanding healthorganizations under the Health &Productivity Management Outstanding Organizations
Recognition Program.

Health Improvement Initiatives
Tokyo Tatemono coordinates with health insurance associations
to conduct a wide range of initiatives for improving officers’ andemployees’ health. We identify risks to the health of our officers
and employees and take preventative measures actively against
severe illnesses for non-obese and young people not eligible
for special health checkups. This is for the purpose of improving health through preventative and early-term treatment.

Sustainability Finance
Responding to Natural Disasters

SocialReport/Submit for discussion

Supervise

Supervise

Status of Certification as an Outstanding Health Management Company

Goal setting, monitoring,evaluation of achievement, etc.

Sustainability
Committee: Certified Health & Productivity Management Outstanding Organization (White 500)

Company name

Certification Category

2017

2018

2019

2020

2021

2022

2023

Tokyo Tatemono

Large Corporate Category

★

★

★

☆

★

★

★

E-State Online

Large Corporate Category

—

—

★

☆

☆

☆

☆

Tokyo Tatemono Real Estate Sales

Large Corporate Category

—

—

—

★

☆

☆

☆

Tokyo Fudosan Kanri

Large Corporate Category

—

—

—

—

☆

☆

☆

Tokyo Tatemono Amenity Support

Large Corporate Category

—

—

—

—

—

—

☆

Tokyo Realty Investment Management

Small and Medium-sized
Corporate Category

—

—

—

—

☆

☆

☆

Nihon Parking

Small and Medium-sized
Corporate Category

—

—

—

—

—

☆

☆

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and Health

Personnel Department
Health Management
and Diversity
Promotion Group

Coordinate

HealthCommittee

Health insurance
association

Tokyo Tatemono Industrial physician
Labor Union
Consultant psychiatrist
Tokyo TatemonoGroup Companies

Outsourcing
company

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Third-Party Evaluation of Health Management
In 2014, the Development Bank of Japan, Inc. DBJ Employees
Health Management Rating awarded Tokyo Tatemono thehighest possible accolade for our earnest efforts toward health.
The recognition cited our outstanding initiatives toward thehealth considerations of our employees.
In March 2023, Tokyo Tatemono and six other group companies were recognized under the Certified Health & Productivity
Management Outstanding Organizations Recognition Program.
In this program, which was established in 2016, the Ministry of
Economy, Trade and Industry honors a range of companies
from large corporations to SMEs for practicing outstanding: Certified Health & Productivity Management Outstanding Organization

Status of Certification as Health & Productivity Management Outstanding Organization

Gold certification
obtained:
4 companies

Tokyo Tatemono / E-State Online /Tokyo Tatemono Real Estate Sales /Tokyo Fudosan Kanri

66

Silver certification
obtained:
7 companies

Tokyo Tatemono Amenity Support /Tokyo Tatemono Investment Advisors /Tokyo Tatemono Resort / Tokyo Realty
Investment Management / Nihon Parking /Parking Support Center / PRIME PLACETOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Social implementation of technology

Improve employee growth and job satisfaction

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Health Management / Occupational Safety and Health

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

In addition, to prevent health problems, employees who work
more than a certain number of hours overtime or on holidays
are interviewed by industrial physicians.

Health Management of Officers and Employees
Tokyo Tatemono has set a goal of ensuring health checkup andreexamination rates of 100% each year among our officers andemployees. As we target this, we are advancing initiatives toraise greater awareness of health management among all officers
and employees. We have achieved this goal every year overtwelve years since 2011. Since 2017, we have also conduct
group dental examinations. (In 2020, this was cancelled dueto the coronavirus pandemic. In 2021 and 2022, dental
examinations were carried out online.)
In terms of daily health measures to sustain and improve thehealth of our employees, we ensure that our Welfare Cafeteria
Plan* provides support for costs relating to voluntary healthmanagement, including physical examinations, cancer screenings, medical treatment, pharmaceuticals, and participation in
health management programs.
Furthermore, we are committed to preventing widespread
infection during flu season. Since 2016, to strengthen our measures to prevent infections, we have been inviting doctors to ourfacilities to provide vaccinations, with the cost of the vaccinations
being borne by the Company.
* A system in which employees are provided a certain set of points to spend freely ona series of benefit options. This has the advantage of allowing individuals to enjoy
a combination of benefits that suit their own circumstances.

(Data) Health Management-related Measures P.90

Smoke-free Initiative
In 2019, we launched a smoke-free initiative, aiming to lower
the smoking rate among our workforce to 12% or less by theend of fiscal 2022 (the same level as the goal set out in the
Basic Plan to Promote Cancer Control (Third Term)). As a specific measure, from April 2020, we adopted a smoke-free policy
for all office space during work hours, while providing information to help promote the smoke-free initiative. In fiscal 2022,
the smoking rate was 12.1%, which was roughly in line with
our target. Going forward, we plan to maintain the rate at 12%
or less each year.
(Data) Health Management-related Measures P.90

Improving Health Literacy

available to officers and employees with mental health concerns. In 2016, we launched a partnership with psychiatricadvisors, creating a support structure that includes training tohelp employees return to work.
We conduct various kinds of training to promote mental
health awareness. Employees newly appointed to the positionof group leader, which involves managing and supervising
subordinates, undergo mental health line care training (100%attendance rate). We also invite sports trainers to teach company-wide self-care training for new employees (100% attendance rate). Both training programs are mandatory. We work
not only to help all of our employees understand the criticalimportance of their mental health, but also for early detection
and prevention of mental health issues.

Since 2021, we have been providing health-related training to
all executives and employees to improve their health literacy
and understanding of health issues. Each year, participation
rates exceed 90%.

Sustainability Website

Health-related Training Programs Held

We have started a new approach to health management using
ICT. The initiative using online interviews and an application
linked to measurement devices to provide specific health guidance to people over 40 years of age who have been identified
as at risk of lifestyle-related diseases in the specific healthcheckups (the rate of implementation and of completion was100%). As a Group-wide initiative, Tokyo Tatemono held individual and team walking events using a smartphone pedometerapp. More than 900 people took part in the events. We arealso working on ways to help participants maintain andimprove their health in an enjoyable way, such as by creating
communication among participants.

Date

Theme

Attendance

May/June 2021

Training on prevention oflifestyle-related diseases

98.9%

February 2022

Seminar on work and women’s health

96.8%

February 2023

Preconception care training

97.2%

Mental Health Initiatives
Each employee has access to an online service for annual
stress self-checkups. This simple process provides employeeswith a clear picture of their own stress conditions.
In addition, we provide mental health counseling via healthinsurance associations. These counseling services are made67

Special Back Number: Steadily Achieving Results in Health Management (Published in 2017) (Only available in Japanese)

Health Management Initiatives Using ICTTOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Social implementation of technology

Improve employee growth and job satisfaction

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Health Management / Occupational Safety and Health

ESG Management
Initiatives and External Evaluation for Sustainability

Investment in Health Management

Feature:Environment

Our investment in health management amounted to 116,000
yen per person (portion borne by the Company in fiscal 2022;
in fiscal 2021 it was 111,000 yen).

Environmental Management
Promoting a Decarbonized Society

Occupational Health and Safety Initiatives

External evaluation and Certification for Green Building

Tokyo Tatemono works to ensure employee work safety byadvancing a wide range of initiatives to guarantee a work-friendly
environment as stated in our Compliance Manual.
In addition, there were no fatal occupational injuries to ouremployees, including contractors, in fiscal 2022. In the eventof an industrial accident or highly dangerous case, we analyze
the cause in detail. We then work to reinforce safety by disseminating information and providing guidance to prevent
recurrence.

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Labor-management Cooperation to Improve the Work Environment

Revitalizing and Utilizing Real Estate Stock

As a mechanism for dialogue between employee representatives
and company management, we hold wide-ranging discussions
in which labor and management work together in unity. The aim
is to achieve an appropriate work environment and working
conditions, based on the shared recognition of the importanceof the health and safety of employees.

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

We are working to ensure a work-friendly environment by
reducing fatigue and stress caused by work. This helps toprevent occupational accidents and health problems.
The Tokyo Tatemono head office has received the rank of S,
the highest in the CASBEE Wellness Office Certification. The
office was highly evaluated for its high level of comfort achieved
both through “hard” and “soft” innovations. These ranged fromoffice fixtures and fittings that were selected with health in mind
to seating selected to suit different work styles to our various
efforts to maintain and promote health.
This certification evaluates and certifies our “hard” and “soft”
office initiatives as we strive to maintain and improve the healthand comfort of the people working in our office building.

Improvement of Working Environment at Tokyo Tatemono
Yaesu Building
ThermalconditionWorkenvironment

Temperature control by AI air conditioning

VisualInstallation of task lighting with adjustableenvironment illumination
Sound
Installation of sound-proof booths and soundenvironment maskingWorkmethodImprovement of work posture by introducing tilting andlifting desks
Set up a cafe space as a place for rest and communication

Rest
SupportInstallation of health equipment
Greening the office

Promoting the Use of Paid Leave(Data) Lost Time Injuries P.90

Improving Quality and Customer Satisfaction

Contributing to Our Communities

Tokyo Tatemono Head Office Receives the Highest
Rank of S in the CASBEE Wellness Office Certification

Tokyo Tatemono has set a target of an average annual paid leave
utilization rate of 70% or more each year. We actively encourage employees to use their paid leave, having established a
Use of Paid Leave
Average Number of Annual Paid Leave Utilization Days
Average Annual Paid Leave Utilization Rate
(Days)

Governance

67.8

20

Corporate Governance

57.7

51.2

9.9

Compliance

10.6

10

9.3

70

57.5

Risk Management

10.2

(%)

11.8
35

Data
Sustainability Finance Reporting

0

2018

2019

2020

2021

2022

0

* Legally required paid leave only (excluding refreshment leave, lapsed paid vacations,summer vacation, and other special vacations)Third-Party Assurance

68

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Social implementation of technology

Improve employee growth and job satisfaction

Diversity & Inclusion

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Health Management / Occupational Safety and Health

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

paid leave promotion period to make it easier for employees totake time off.
In addition to the regular paid leave policy, we have established a paid leave carryover policy. This policy allows employees
to use their expired paid leave for purposes such as childcare,nursing care and medical treatment. We also provide refreshment leave to employees each time they reach a certain
number of years of continuous service to create a working
environment in which each individual can shine.

prevent overwork. Furthermore, in the event that long-working
hours occur, we have implemented a framework to address
this issue by requiring direct supervisors to report on improvement measures and provide feedback to upper management.
Through this PDCA cycle, we are striving to reduce overtime
hours (overtime work hours).

(Data) Paid Leave Status P.90

Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Dialogue between Labor and Management
Tokyo Tatemono supports freedom of association and the rightto collective bargaining. All employees (except for management
and certain positions) are members of the Tokyo Tatemono
Labor Union, organized within the company. The labor union
and Tokyo Tatemono have concluded a labor agreement andwork to solve a diverse range of challenges through dialogue
between labor and management.
(Data) Percentage of Unionized Employees P.90

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate Governance

Conclusion of Agreement on Overtime and Holiday WorkIn accordance with the Labor Standards Act, an Agreement
on Overtime and Holiday Work (commonly known as the “36Agreement”) has been concluded with a person representing
a majority of employees at each business site.

Risk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Initiatives to Limit Overtime WorkTokyo Tatemono has been engaged in ongoing measures toprevent overtime since 2008 from the perspective of work-lifebalance and employee health management. In 2010, we
adopted a system to shut down computers at the standard
end of the working day to limit late-night working hours and69

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Diversity & Inclusion

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Policy and Concept

SystemWith a shrinking population due to declining birthrates andaging demographics, it is important now more than ever toeffectively utilize a workforce that includes women, seniorcitizens, and others in order to build a sustainable society.
Organizations with diverse talent will be able to provide broader
perspectives and make better decisions in service offerings
from many different views.
Tokyo Tatemono established a Human Resource Policy that
includes creating a fulfilling, rewarding workplace in which
employees can experience growth and feel satisfaction fromtheir work. We have identified diversity and inclusion as one ofour material issues. To achieve this, we have set the following
targets: by fiscal 2030, a ratio of women in management
positions of 10% or more an employment ratio of each year
2.3% or more of persons with disabilities; and by fiscal 2025,
a ratio each year of male employees taking childcare leave of
30% or more.
We pursue the creation of an environment in which diverse
human resources are motivated and dedicated in their work,
acting freely without obstacle. We use work style reforms toenhance efficiency and enable a healthy work-life balance. We
believe that these efforts will inspire innovations for providing
customer-focused services and enhancing productivity, which
will lead to corporate growth.

The Health Management and Diversity Promotion Group within
the Tokyo Tatemono Personnel Department works with allgroup company departments, overseeing labor affairs in agroup-wide support system. This Department engages inmeasures to ensure a diverse base of human resources cancontinue to grow, acting freely without obstacles.

to the work-life balance of employees in this situation, we hopeto enable them to lead a fulfilling life. In addition, employees
who have left the company due to reasons such as theirspouse’s transfer are eligible to rejoin under the rehiring
system for retired employees.

Leave Systems for Pregnancy,Childbirth, Childcare and Nursing(Data) Diversity and Inclusion Indicators and Results P.88

Support for Adjusting to Different Life Stages
We have various support systems in place to help employees
continue to work with a sense of fulfillment even as they moveinto different life stages.

System for Limiting Work Location
A transfer to a new work location can present difficulties
depending on an employee’s own circumstances or family
circumstances. We have established a system that allows such
employees to place restrictions on the locations where they canwork. This system allows them to choose a flexible work styleaccording to their personal situation.

Lapsed Paid Leave System
We have a lapsed paid leave system that allows employees touse lapsed paid leave for purposes such as receiving treatment
for illness, childcare/nursing care, or infertility treatment.

System to Accompany Spouse on Overseas Transfer
With globalization as a backdrop, opportunities to work overseas are increasing. Tokyo Tatemono allows employees to takeup to three years of leave of absence to accompany theirspouse on an overseas assignment. The policy is designed for
employees who wish to remain with the company but also
want to share their life with their family. By giving consideration70

In addition to maternity leave, we have established leavesystems for both women and men employees to use in thecase of childcare and nursing care. We have also introduced
a rehiring system for retired employees who had to leave thecompany due to life events or family reasons, such as pregnancy, childbirth, childcare, or nursing care. This enables themto return to the company and resume leveraging the knowledge
and experience they obtained during their tenure.
(Data) Childcare Leave P.89

Changes in the Ratio of Employees Taking Childcare Leave
Men

Women

(%)
100

100.0

100.0

100.0

100.0

100.0

50.0
50

35.3
18.2

13.0

2020

2021

4.8
0

2018

2019

2022

* Following a close examination of the data, the figures for 2018, 2019, and 2021 formen have been revised.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Diversity & Inclusion

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Promoting the Success of Women

Overview of Childbirth and Childcare Support Systems
PeriodPolicyOverview

Paid Leave Carryover Policy

Employees may use the paid leave carryover policy. Salary: paid

Re-Employment Policy for
Employees who Resigned
due to Pregnancy, Childbirth,or Child Rearing

Retired employees may apply to be rehired by Tokyo Tatemono.

Flextime System

Flextime System can be used. This applies to office admin staff, who are not ordinarily eligible to use
flextime (work start/stop times can be adjusted).

Leave Before/After Childbirth

Employees may take up to six weeks of leave before childbirth/up to eight weeks of leave afterchildbirth. (This can be taken in two parts.) Salary: paid

Paternal Leave (Childcare
Leave at the Time of Birth)

Up to 28 days (calendar days) of leave within 8 weeks of the birth of a child (This can be taken in two parts.)
Salary: Paid

Childcare Leave

Employees may take leave until one month after the first March 31 that falls after their child’s third birthday.
Salary: Unpaid (With benefits from employment insurance)

Special Leave for Childbirth

Employees may take one day of special leave. Salary: Paid

Respect for Human Rights

Celebratory Monetary Gift
for Childbirth

Employees may receive 50,000 yen as a celebratory gift for the birth of their child.

Supply Chain Management

Flextime System

Flextime System can be used. Salary: Same as ordinary flextime system.
Period: Until the conclusion of the child’s third year of elementary school

Shortened Working
Hour System

Employees may work a shorter six-hour day. Employees may select from five work styles.
Period: Until the conclusion of the child’s third year of elementary schoolChildcare Leave(Childcare Time)

Employees may take up to one hour of leave per day. This leave may be taken over one or multiple
periods during the day.
Salary: Unpaid Period: Until the child reaches their first birthday

Restrictions on Overtime
for Childcare

Employees are limited to no more than 24 hours of overtime per month and must not exceed 150
hours of overtime per year. Period: Until the conclusion of the child’s third year of elementary school

Restrictions on Late Night
Work for Childcare

Employees may be restricted from working between the hours of 10:00 p.m. to 5:00 a.m.
Period: Until the conclusion of the child’s third year of elementary school

Exemption from Overtime
for Childcare

Employees may be exempt from exceeding their prescribed work hours.
Period: Until one month after the first March 31 that falls after their child’s third birthday.

Nursing Care Leave
for a Child

Employees may take up to five days leave for their first child or up to ten days for their second andsubsequent children between April 1 and March 31 to care for injured or sick children (leave may betaken in hourly increments).
Salary: Unpaid Period: Until the conclusion of the child’s third year of elementary school

Data

Support for Employees
Using Babysitters

Employees can receive a special discount on babysitter fees.

Sustainability Finance Reporting

Vacation Day Childcare
Expense Subsidy Program

Partial subsidy for childcare expenses on Saturdays, Sundays, and vacation days for employees whose
regular workdays fall on those days.

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources

The fullduration ofchildbirth andchildcare
DuringPregnancy

Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Immediately
Before /After ChildbirthSocialImproving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
ComplianceDuringChildcare

Tokyo Tatemono pursues initiatives aimed at empowering
women to develop their careers in a way that draws from theirpersonal values, their talents and their individuality. To provide
secure workplaces, we have established various systems tomaintain employee career continuity even after a major life
event. We also recruit diverse human resources actively.
Our ratio of women employees was 31.8% as of December
2022, up 4.4% from 2017. We are targeting a percentage ofmanagement positions held by women of 10% or more by2030. In December 2022, this percentage was 7.2%.

TOPICSTokyo Tatemono
Receives its First“Eruboshi (2 stars)”
Certification
In October 2022, Tokyo Tatemono
for the first time received thesecond level (2 stars) of the “Eruboshi” certification
granted by the Minister of Health, Labour and Welfare.
This certification recognizes companies that demonstrate excellent efforts in promoting the advancement of
women, based on the Law for the Promotion of Women’s
Activities. We will continue seeking not only to empower
women, but also to enable diverse human resources tomaximize their individual abilities and thrive in theirwork. We believe that this will in turn lead to sustainablecorporate growth.

* Some policies have eligibility requirements.

Third-Party Assurance

71

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

SocialRelated Material Issues

Improve employee growth and job satisfaction

Diversity & Inclusion

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Diversity & Inclusion

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment

Tokyo Tatemono in October 2022 received the second level(2 stars) of the "Eruboshi" certification granted by the Ministerof Health, Labour and Welfare, recognizing our excellent efforts
in promoting the advancement of women.

Environmental Management
Promoting a Decarbonized Society

Promoting the Success of Seniors

External evaluation and Certification for Green Building

Tokyo Tatemono has introduced a rehiring policy for employees
who have reached the retirement age of 60 but wish to continue working until the age of 65 so that they can continue toenjoy active, successful careers. Our Personnel Department
conducts individual interviews with employees who areapproaching the statutory retirement age. These employees
have the opportunity to express their wishes about how theywant to work based on their individual life plans. These programs let us offer employees the opportunity to be fully active,
even after 60 years of age.
In addition, for employees who have been rehired after
retirement, we have a system in place that allows those who
are willing to continue working and who are deemed necessary
by the company to continue working after the age of 65.

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development(Data) Rehiring of Employees at Retirement Age P.89

Promoting the Success of People
with Disabilities

Promoting the Success of
Non-Japanese Employees

To promote the success of people with disabilities, we haveestablished systems that allow people with disabilities to enjoy
long-term, stable employment. We accomplish this not only
through optimal department assignment based on the individual’s particular qualities, but also through working hours set
appropriately to the particular circumstances of each disability,
as well as a personnel system with provisions for working fromhome as standard. For employees who work from home as
standard, an outside professional counselor has been
appointed to support their work while monitoring their daily
health condition.
We set a target of maintaining an annual employment ratio of
2.30% or more of people with disabilities. As of June 2022,*
our employment ratio of people with disabilities was 2.33%, but
this fulfilled the mandatory ratio and number of employees thatis required by law. We will continue our efforts to employ
people with disabilities.

Tokyo Tatemono does not discriminate in its hiring based on
factors such as nationality or race.
In our overseas business, we hire and foster strong talentfrom various nationalities at our local subsidiaries. This enables
our business to grow roots in the regions in which we operate.

* At the time of reporting to the government in accordance with laws for the promotion ofpeople with disabilities.

(Data) Headcount P.88

Workplace Understanding ofGender Diversity
The Group’s Compliance Action Guidelines stipulate respect forhuman rights and prohibition of discrimination and prohibitionof harassment, prohibiting discrimination on the basis of sexual
orientation. In addition, to deepen employees’ understanding ofgender diversity, we cover this issue in our compliance training
and human rights training programs.
The harassment consultation service is also available for
LGBTQ-related harassment.

(Data) Headcount P.88

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

72

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group
ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

Governance

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

73

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Corporate Governance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialPolicy and Concept
Based on our corporate philosophy of “Trust beyond the era,”
Tokyo Tatemono is striving to build optimal corporate governance, with the primary aim of enhancing efficiency while
ensuring the soundness and transparency of management, toachieve sustainable growth and increase corporate value overthe longer term. In addition, we actively and appropriately disclose information for shareholders and other stakeholders tounderstand the company’s business activities accurately.
We have identified the advancement of governance as amaterial issue for the Group that we must address as we
pursue our long-term vision. We are further strengthening thegovernance framework to achieve this, striving to improve
profitability and advancing measures to ensure objectivity.

In our Group governance, to heighten the efficiency of Groupmanagement and achieve group synergies, we also make acontractual agreement with each Group company based on theGroup Business Management Standards. By setting out andinforming each company of conditions such as items subject toprior approval and items to be reported to the Company, we
are working to reinforce head office functions and clarify ourpolicy on involvement with Group companies.

Board of Directors
The Board of Directors consists of 12 directors, four of whomare external directors (one of whom is a female member).
(Personnel numbers are as of March 31, 2023.) We maintainthe appropriate number of members needed to ensure thediversity and balance of knowledge, experience, and abilities of
the Board as a whole, and for the Board to function effectively
and efficiently. Audit and Supervisory Board members attend
board meetings and offer opinions as necessary. The Board of
Directors is chaired by the Chairman, who does not concurrently serve as an executive officer.
As a general rule, Tokyo Tatemono holds regular Board of
Directors meetings once a month and other extraordinary
meetings as deemed necessary to resolve important mattersrelated to business execution, as well as discuss mattersrelated to medium- and long-term business issues. In fiscal
2022, 14 meetings were held, and the attendance rate of
directors was 99%.

Corporate Governance Report

Respect for Human Rights

Corporate Governance Structure

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Tokyo Tatemono has selected a Company with Audit andSupervisory Board format for our organization. We have alsoestablished a Board of Directors and an Audit and Supervisory
Board, and a Nomination and Remuneration Advisory Committee as an advisory committee to the Board of Directors. Our
executive officer system clarifies the separation of functions
between management and business execution. Furthermore,
we appoint external directors and external Audit and Supervisory Board members who help us operate under stronger
management supervision and ensure transparency. This system
ensures effective supervision and supervisory functions withregard to management and also to business execution bydirectors of the Company. In December 2022, we made organizational changes to further strengthen risk management andinternal control in the Group, establishing the Risk Management
Committee and the Internal Control Committee.

Appoint/Dismiss

ReportAdviseNomination and Remuneration
Advisory Committee

Board of Directors (Directors)
Audit

ReportAppoint/Dismiss

President

Audit and Supervisory Board(Audit and Supervisory Board members)

Dismiss

Coordinate

Coordinate

Internal Audit Department

Risk Management
Committee

Executive Committee

Sustainability Committee

Business Divisions/Departments

Tokyo Tatemono

Financial
Statement
Audit

Internal Control Committee

Financial Statement Auditor

Human Resource Investment and Development

SystemAudit

Group Companies

Tokyo Tatemono Group74

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Corporate Governance

ESG Management
Initiatives and External Evaluation for Sustainability

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting• Directors:
Matters that could cause significant damage to the Tokyo
Tatemono Group or any material fact in violation of laws, regulations, or the Articles of Incorporation, and the details thereof

Audit and Supervisory Board

Feature:The Audit and Supervisory Board prepares audit reports, selects
and dismisses full-time Audit and Supervisory Board members,
and determines audit policies and other matters related to the
execution of Audit and Supervisory Board members’ duties.
Consists of four members, two of whom are external members(one of whom is a female member). It is chaired by a full-timemember. In fiscal 2022, 14 meetings were held, and the attendance rate of each board member was 100%.
Audit and Supervisory Board members attend meetings suchas those of the Board of Directors, Executive Committee, andRisk Management Committee, express their opinions as necessary, receive regular reports from the Financial Statement
Auditor and departments such as the Internal Audit Department,
and exchange opinions with each of these as needed in thecourse of their coordination. In addition, Directors, the Risk
Management Committee, the Internal Audit Department, andthe Legal & Compliance Department promptly report to Audit
and Supervisory Board members on the following mattersconcerning Tokyo Tatemono and Group companies.

• Risk Management Committee:
Critical matters for compliance• Internal Audit Department:
Status of internal audits

business execution is delegated to executive officers, including the president. The scope of such delegation is stipulated
in the corporate bylaws, based on factors such as the type oftransaction and transaction amount.
Executive officers are appointed by a resolution of the Boardof Directors and have a term of two years. As of March 31,
2023, there were 22 executive officers of the Group.

Nomination and Remuneration Advisory Committee• Legal & Compliance Department:
Status of fraudulent activity reports and their content

Executive Officer System
Tokyo Tatemono has adopted an executive officer system toenergize our Board of Directors and speed up decisionmaking through the separation of management functions anddecision-making functions. Except for matters determined bylaws and regulations and the Articles of Incorporation to beresolved by the Board of Directors and critical matters concerning business execution, the right to make decisions on

We have established the Nomination and Remuneration
Advisory Committee as an advisory body to the Board of
Directors to select candidates for directors, dismiss directors,
and recommend directors remuneration levels. Committee
members are appointed from among directors, dismiss directors, and the president serves as committee chairman. The
number of committee members is set at seven or less, morethan half of whom are required to be external directors. This is
to ensure objectivity and transparency in committee procedures
while also drawing from the expertise and advice of external
directors. In fiscal 2022, four meetings were held, and theattendance rate of each committee member was 100%.

Board of Directors Related Data
Item

Unit

2018

2019

2020

2021

Executive Committee

2022

Number of Board Meetings

Meetings

13

15

14

15

14

Number of Directors

Persons

12

12

12

12

12

Number of Executive Officers on Board

Persons

7

7

7

7

7

Number of Non-Executive Officers on Board(Excluding Independent External Directors)

Persons

1

1

1

1

1

Number of Independent External Directors

Persons

4

4

4

4

4

Proportion of External Directors

%

33

33

33

33

33

Average Board Meeting Attendance

%

100

99

100

100

99

5.8 (March)

3.8 (March)

4.8 (March)

4.6 (March)

4.4 (March)

Average Tenure of Directors(Including Independent External Directors)

Years

The Executive Committee consists of executive officers withspecific responsibilities, with the president as chairman. This
meeting is held to discuss matters important to group management. In fiscal 2022, 41 meetings were held.
Full-time Audit and Supervisory Board members attend the
Executive Committee to assess the status of deliberations andoffer opinions as necessary.

Data Collection Period: January to December of each year. Unless otherwise specified, figures are as of December each year.
Data Collection Scope: Tokyo Tatemono

Third-Party Assurance

75

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Corporate Governance

ESG Management
Initiatives and External Evaluation for Sustainability

Internal Control Committee

Feature:Environment
Environmental Management
Promoting a Decarbonized Society

The Internal Control Committee has been put in place as ameeting body for evaluating, improving, and upgrading theinternal control system. It is chaired by the president, and its
members include the chairman and officers in charge of corporate planning divisions.

External evaluation and Certification for Green Building
Water Resources

committee are reported to or submitted for the agenda of theBoard of Directors.
To promote compliance management, the Compliance
Subcommittee (subcommittee chairman: the director in chargeof the Legal & Compliance Department) was put in place as asubordinate organization of the Risk Management Committee.
The subcommittee reviews compliance, monitors progress, andaddresses compliance risks.

Risk Management Committee

Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialThe Risk Management Committee oversees risk management
and compliance for the Group. It is chaired by the president
and includes the chairman, executive vice presidents, generalmanagers, deputy general managers, officers in charge of thecorporate planning divisions, and the general managers of
the corporate departments. Matters discussed by the

Sustainability Committee
The Sustainability Committee was set up to promote sustainability measures across the Tokyo Tatemono Group. It ischaired by the president and includes executive officers, general managers of corporate departments, the general managerof the Technical Department of the Commercial Properties

Business, and other members appointed by the chair in
consideration of their expertise in ESG-related matters. The
committee deliberates on important ESG-related issues, setstargets, monitors progress, and evaluates achievements.
Matters discussed by the Sustainability Committee arereported to the Board of Directors, and if necessary, discussed
and overseen by the Board.
In addition, the following have been set up as subordinate
organizations of the Committee: the Sustainability Promotion
Council, which carries out prior discussions of matters to bedeliberated and decided upon by the Committee, sharesdecisions, and reports on the progress of sustainability
measures; and the Human Rights Subcommittee, which promotes initiatives based on the Tokyo Tatemono Group Human
Rights Policy.

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Specialization and experience of directors (skill matrix)

Revitalizing and Utilizing Real Estate Stock
Name

Position in the Tokyo
Tatemono Group

GenderHuman Resource Investment and Development

Makio Tanehashi

Representative Director

Male

Health Management / Occupational Safety and Health

Hitoshi Nomura

Representative Director

Male

Diversity & Inclusion

Katsuhito Ozawa

Representative Director

Male

Akira Izumi

Representative Director

Male

Hideshi Akita

Director

Male

Takeshi Jinbo

Director

Male

Shinjiro Kobayashi

Director

Male

Fumio Tajima

Director

Male

Shuichi Hattori

External Director

Male

Yoshimitsu Onji

External Director

Male

Takeo Nakano

External Director

Male

Yumiko Kinoshita

External Director

FemaleContributing to Our Communities

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Corporate
management

Financialaccounting

Legal affairs,
compliance, risk
management

Sustainability

Real estatebusiness, urban
development

Overseas projects

ICT, digitaltechnology

Personnel,
HR development* The above skill matrix is not an exhaustive list of all the expertise and experience of each director.

76

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Corporate Governance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Appointment and Selection of
Directors and Audit and Supervisory
Board Members
We comprehensively evaluate the personality, abilities, knowledge, and experience of candidates and select those who
possess qualities that can contribute to increasing the longer
term corporate value of the Group as members of management, and appoint them as candidates for directors and Audit
and Supervisory Board members. The Articles of Incorporation
stipulate the term of office as two years for directors and four
years for Audit and Supervisory Board members.
In making nominations, we seek the appropriate involvementof external directors, who make up a majority of the Nomination and Remuneration Advisory Committee. The Board of
Directors approves nominations after they have been deliberated by the committee.

Criteria for Independence ofIndependent External Directors

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceTokyo Tatemono deems external directors to be independentwhen, in addition to meeting the criteria for independence
stipulated by Tokyo Stock Exchange*, they do not fall under
any of the following categories:

4 A consultant, accounting professional, or legal professional thatreceived remuneration (excluding director remuneration) of
more than 10 million yen from the Company in the most recent
fiscal year
* From Tokyo Stock Exchange standards: Guidelines III 5, (3) 2 relating to the listing
management, etc. Rule 436-2: Examination to ensure effectiveness.

Support System for External Directors
and External Audit and Supervisory
Board Members
The Corporate Planning Department provides explanations
and information as necessary to support external directors.
The Department also serves as secretariat for the Board of
Directors.
At the request of the Audit and Supervisory Board, we assign
personnel to serve as staff for external board members toencourage the smooth execution of audit procedures. We havealso established a system that enables full-time Audit andSupervisory Board members to obtain the information theyneed to carry out their work, ensuring their attendance atBoard of Directors and Executive Committee meetings andarranging regular reports from financial statement auditors andvarious departments, as well as enabling the exchange of
opinions with these parties at any time.

Remuneration of Directors
Based on our Corporate Philosophy, “Trust beyond the era,” theGroup strives for sustainable growth and the improvement ofcorporate value over the longer term. Regarding remuneration of
directors (excluding external directors), our aim is to instill awareness of each officer’s responsibility to contribute to building corporate value not only in the short term but also over the longer term.
To this end, we have adopted a system that links a certain percentage of remuneration to business and stock price performance.

Remuneration Policy
Remuneration of directors (excluding external directors) comprises three elements: fixed remuneration, performance-based
remuneration, and stock-based remuneration. The ratio ofthese elements is set appropriately based on the policy
regarding the determination of payment ratios by type of compensation for Directors. The amount of remuneration for eachdirector is decided by the Board of Directors after consultingwith the Nomination and Remuneration Advisory Committee.
Total Amount of Remuneration, Total Amount of
Remuneration by Type, and Eligible Directors andAudit and Supervisory Board Members(Fiscal Year Ended December 2022)
Total Amount by Type of Remuneration

Corporate Governance

Executive Class

Risk Management

1 A business partner of Tokyo Tatemono that constitutes 2% orCompliancemore of the Company’s consolidated net sales in the mostrecent fiscal year or a person executing business of such partner
2 A shareholder of the Company that holds more than 10% of
the total number of voting rights of the Company or a person
executing business of such shareholder
3 A representative, member, or employee of an auditing firm
employed as the financial statement auditor for the Company

Data
Sustainability Finance Reporting

Third-Party Assurance

Policy on Payment Breakdown by Remuneration TypeFixed
remuneration

Performance-based
remuneration

Stock-based
remuneration

Positioning

Basic
remuneration

Short-term incentive

Medium- andlong-term incentive

Variability—

Performance linked
to single fiscal year

Stock-based

50–60%

30–40%

5–10%

Proportion of total
renumeration(approx.)Number of
Eligible
Individuals

Total
PerformanceStock-Based Remuneration
Fixed
LinkedRemuneration (Million Yen)
Remuneration
Remuneration(Million Yen)
(Million Yen)
(Million Yen)

Directors (Excluding
External Directors)

8

271

171

37

480

Audit and Supervisory
Board Members (Excluding
External Members*)

2

52

—

—

52

External Officers

6

54

—

—

54

Total

16

377

171

37

586

* Two External Members

77

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Corporate Governance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

Remuneration of external directors and Audit and Supervisory
Board members is limited to fixed remuneration in considerationof their duties.
The President and Chief Executive Officer is delegated by aresolution of the Board of Directors the person most qualified
to evaluate remuneration amounts for individual directors. After
drafting proposed remuneration amounts, after he consults with
the Nomination and Remuneration Advisory Committee andcomprehensively takes into consideration the Company’sbusiness performance and the responsibilities of the directors.
The President and Chief Executive Officer is delegated by the
Board of Directors to prepare proposals for fixed remunerationand performance-based remuneration for individual directors
based on each director’s position and responsibilities eachfiscal year. He decides on remuneration amounts for eachdirector after consulting with the Nomination and Remuneration
Advisory Committee.

whether the member serves in a full-time or part-time position, capped at 8 million yen per month (equivalent to 96
million yen per year).*3*1 Based on a resolution of the 190th Ordinary General Meeting of Shareholders held on
March 28, 2008
*2 Based on a resolution of the 195th Ordinary General Meeting of Shareholders held on
March 28, 2013
*3 Based on a resolution of the 200th Ordinary General Meeting of Shareholders held on
March 28, 2018

Evaluation of the Effectiveness of theBoard of Directors
We conduct an annual survey on the structure, agenda items,
and operation of the Board of Directors and evaluate the effectiveness of the Board based on the results. Below is an overview of the effectiveness evaluation for fiscal 2022.

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Remuneration Structure

Evaluation Process / Topics• Fixed remuneration (for Directors):
Up to 35 million yen per month (420 million yen per year) *1• Performance-based remuneration (for directors excluding
external directors):
Capped at 1% of consolidated ordinary profit and 2% ofprofit attributable to owners of parent for the year prior to thefiscal year in question*2• Stock-based remuneration (for directors excluding external directors):
Based on the stock-based remuneration system determinedby a board benefit trust scheme, directors will be awarded amaximum of 40,000 points per fiscal year (equivalent to
40,000 shares). At the time of retirement, the director will be
paid an amount equivalent to the amount of company stock
held and market value.
• Audit and Supervisory Board member remuneration:
Remuneration of external directors and Audit and Supervisory
Board members is limited to basic remuneration according to• Evaluation Process(1) Administer questionnaire survey to all directors and Audit
and Supervisory Board members(2) Aggregate, analyze, and share results with the Board of
Directors(3) Discuss future issues and measures• Topics
Structure: Ratio, number, specialization and diversity of
external directors
Agenda: Number, content, and standard expressions ofmonetary amounts in agenda items
Operation: Number of meetings, length of meetings, explanation provided prior to meetings, explanatory
materials, time taken for explanation, time taken
for discussion, and reported content
Other:
Support system for external directors, training

78

Results of Evaluation and Future Actions
The evaluation results confirmed that the Board of Directors is
sufficiently effective. In addition, discussion of the survey results
in a Board of Directors meeting confirmed the following issues.
• Matters whose Evaluation Improved Year on Year
Matters concerning the timing of prior distribution of materials
related to matters to be discussed and the support systemfor outside officers.
• Future Issues and Actions
Further broaden and enliven discussions on medium- tolong-term management issues by revising and improving
agenda items

Cross-Shareholdings
We acquire and hold shares of other companies for noninvestment purposes (cross-shareholdings) when we determinethat holding such shares is likely to contribute to maintaining
and increasing the medium- and long-term corporate value of
the Group by maintaining and strengthening business relationships with business partners.
We verify the appropriateness of our individual crossshareholdings with a view to whether holding them will continue to contribute to maintaining and increasing the corporate
value of the Group. Verification is performed by viewing thetransaction results and prospects of real estate transactions,joint ventures, construction and equipment transactions, andfinancial transactions, in addition to dividend results. We reportverification and disposal results to the Board of Directors atleast once every year, and if we determine that suchcross-shareholding is no longer significant, we seek to reducethe cross-shareholding while considering the impact on thestock market and other factors.
The sales price of shareholdings exceeded the disposal
amount in 2022. The medium-term business plan (fiscal 2020
to 2024) calls for us to reduce cross-shareholdings, partly in aneffort to increase asset efficiency.
TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Risk Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

Policy and Concept
As a material issue, we have identified the need to strengthen
the risk management framework for the Group. The Tokyo
Tatemono Group seeks to appropriately manage risks that
affect the Group’s business to achieve stable improvement incorporate value. With this in mind, we have establishedrelated regulations and created a risk management framework,
and we are working to carry out ongoing risk monitoring
and control.

Management Regulations, appropriately takes preventive measures against and manages departmental management risks.
The Corporate Department and the Business Division
Planning Department monitor, support, and provide guidanceon risk management at each division and office, while the*1 ERM (Enterprise Risk Management): Enterprise-wide risk management; published by
COSO (Committee of Sponsoring Organizations of the Treadway Commission).
*2 Three Lines Model: Published by the IIA (The Institute of Internal Auditors).

Risk Management Structure
Board of Directors

Biodiversity
Deliberate and report

Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

SystemIn promoting risk management, we manage the Group’s risks in
an integrated manner in accordance with our Risk Management
Regulations. To this end, we have designated the President
and Chief Executive Officer as the Chief Risk Management
Officer and established a Risk Management Committee chairedby the President and Chief Executive Officer.
The Committee formulates an annual risk management plan,evaluates and analyzes key management risks for the Group(priority risks), formulates preventive measures and countermeasures, periodically monitors the status of countermeasures,and regularly submits proposals and reports on these mattersto the Board of Directors.
Regarding risks other than priority risks for countermeasures(departmental management risks), each department generalacts as a Risk Management Officer as defined in the Risk

Internal Audit Department audits and advises on the policies
and content of risk management.
In developing our risk management framework, we referenced ISO 31000 (international standard for risk management),
ERM*1 and the Three Lines Model*2 approach.

Audit

Audit & Supervisory Board

Supervise and approve

Risk Management Committee
Risk Management
Committee Secretariat

ReportSecond Line

Instruct

Corporate Department; planning divisions ofeach business unit

Monitor, support and guideFirst Line

Risk response organization (risk owner)

Audit and advise

General managers of each business division, etc.
(risk owners for priority risks to be addressed)
Executive Committee

Sustainability Committee

Each department

Group companies

Third LineInternal Audit Department

Compliance Subcommittee
Three Lines Model

Data
Sustainability Finance Reporting

Third-Party Assurance

79

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Risk Management

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

Risk Management Activities
To further strengthen risk management in our Group, we arepromoting risk management activities under a new structure,having established the Risk Management Committee in
December 2022. Under the new structure, the Risk Management
Committee conducts risk assessment for the Group (identifying
risks and evaluating them in terms of potential impact (financial
loss, human loss, etc.), likelihood of occurrence, changes in thebusiness environment, the Tokyo Tatemono Group Management Policy, and corporate values). The Risk Management
Committee then identifies risk that should be prioritized by theGroup (priority risks to be addressed). After these risks aredeliberated upon by the Risk Management Committee theBoard of Directors decides on them. Priority risks are directly
managed and overseen by the Risk Management Committee.

Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

Privacy Policy
Specific Personal Information, etc. Protection Policy
Acquisition of ISO 27001 certification (Tokyo Tatemono Real Estate Sales)(Only available in Japanese)

Supply Chain Management
Improving Quality and Customer Satisfaction

regarding the handling of personal information. In addition, incase of matters such as the leaks of personal information, or incase we detect any signs of such leaks, we have a system inplace to appropriately and promptly report the matter to therelevant authorities and to the individual concerned.
As part of the system, Tokyo Tatemono Real Estate Sales
maintains ISO/IEC 27001 international certification and JIS Q
27001 Japanese certification for information security management systems, and undergoes an external review every
year, based on which it strives to carry out continuous
improvements. The results of the review are incorporated in
information management training carried out every year for
all Group employees.

Comprehensive Information
Management
To ensure that information collected through our business ismanaged appropriately, the Tokyo Tatemono Group has established an information management system coordinated by anindividual in charge of information management. We have alsoestablished Rules for Information Management, Rules for
Handling Personal Information, and Rules for Handling Specific
Personal Information. To ensure that all employees handle suchinformation in accordance with the rules, we are working tostrengthen the management of personal information and confidential information through regular annual self-inspections.
In addition, we have published the contact information for theinquiry counter on our website to respond to requests such as
those for disclosure of retained personal data from individuals
and other parties, and to handle complaints including thoseTraining in Response to Cyber Attacks(Targeted Emails Attacks)
The Group conducts training for its employees as necessary
to improve their awareness of and ability to respond to
cyber attacks. In 2022, in accordance with our Information
Management Regulations, five Tokyo Tatemono Group companies (Tokyo Real Estate Management, Nihon Parking, Tokyo
Tatemono Amenity Support, and Parking Support Center)
distributed simulated email attacks as part of its cyber attack(targeted email attack) response training.
Based on the results of the training, email security training
materials were distributed to those whose response did notreach a certain level, and guidance was provided by their
General Managers.

80

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Compliance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

Improving Quality and Customer Satisfaction

SystemThe Tokyo Tatemono Group defines compliance as complying
not only with laws and regulations, but also with social norms
and corporate ethics. This approach builds a long-lasting
relationship of trust with society and allows us to continue
sound corporate activities. We believe companies must
respond sincerely to the needs of people in our surrounding
environment, including our customers, local communities,
employees, shareholders and investors, and business
partners. In June 2009, the Group established a shared
Compliance Charter for group companies. This charter is ourpledge to society to promote corporate activities that arecommitted to unwavering compliance.
Alongside other initiatives, we are using compliance education and training as we work to build organizational and educational systems that enable our employees to maintain a highlevel of compliance awareness at all times.

As a system for promoting compliance, the Group has established a Risk Management Committee and, as a subordinatebody of this, a Compliance Subcommittee. The Risk Management Committee, which is chaired by the President, oversees
risk management and compliance for the Group. The Compliance Subcommittee, chaired by the director in charge of theLegal & Compliance Department, conducts specialized deliberations in a flexible manner, considering compliance measures,monitoring progress, and addressing compliance risks.

Compliance Charter

Human Resource Investment and Development
Health Management / Occupational Safety and Health

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Audit andSupervisory Board

ReportAudit and Supervisory
Board Members

Directors

As we engage in corporate activities, we observe the Compliance
Charter below:• We adhere to laws, regulations, and other rules and engage in
fair, sound corporate activities.
• We act faithfully by thinking from the customers’ standpoint.
• We contribute to making society better through corporate
activities.
• We respect the personalities and values of each other and maintain a comfortable working environment.
Established June 2009

ReportCompliance Subcommittee
Subcommittee Chair:Director in charge of Legal & Compliance Department
Secretariat
Legal & ComplianceDepartment

The Tokyo Tatemono Legal & Compliance Department supports and guides the compliance-related operations of groupcompanies. This Department also aims to improve compliancefunctions throughout the Group through collaboration between
and among group companies.

Responding to Compliance Violations
In the event that a matter is discovered that may be deemed topose a compliance problem (including labor issues), the matteris reported to the President and other relevant parties, and an
investigation or fact-finding review or similar process is conducted as appropriate. If, as a result of the investigation, anoncompliance event is identified, it is promptly reported to the
Risk Management Committee (Compliance Subcommittee). If
the event is particularly serious, the Committee reports it to thedirectors, and we promptly take corrective measures and preventive measures. In addition, the Committee will monitor the
status of the situation and other matters to ensure appropriate
management until the response has been completed.
In 2022, no events were identified as constituting material
noncompliance with laws and regulations (including labor
issues), and no events led to legal action. In addition, no fines,
penalties or settlements were incurred.
(Data) Compliance Indicators and Results P.92

Corporate Planning
Department

Receive Reports

Coordination and Compliance
Awareness Activities

Provisions for Violations of Laws andRegulations, Lawsuits, etc.
An amount is estimated at the end of the fiscal year for fines
and settlements that are likely to arise from events that
occurred prior to the current fiscal year, and provisions are
made accordingly. No significant provisions were made at theend of fiscal 2022.

Business Divisions
Group Companies

Sustainability Finance Reporting

Third-Party Assurance

Internal
Audit
Department

Audit

Diversity & Inclusion

Board of Directors

Risk Management Committee
Committee Chair:
President and Chief Executive Officer

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Compliance Structure

ReportSupply Chain Management

Policy and Concept

81

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Compliance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Formulation of a Compliance Manual
The Tokyo Tatemono Group created the Compliance Codes ofConduct and the Tokyo Tatemono Group Compliance Manual
to ensure we put our Compliance Charter into practice.
This manual details the prevention of corruption through acomprehensive range of topics. It also includes the Group
Environmental Policy, Group Anti-Bribery Policy, and otherstandards of conduct and policies that are broadly related tocompliance.
The Compliance Manual applies to all employees engaged inwork at group companies, regardless of employee classification, position, or employment status. We are working to ensure
widespread awareness by distributing the manual as a booklet
and posting it at all business sites.
Tokyo Tatemono posts educational content on our corporate
intranet covering compliance themes in line with the Compliance
Manual. We strive to prevent corruption, bribery, and to prohibit
discrimination by sharing case studies related to bribery and
LGBTQ issues.

Compliance Codes of Conduct
1-1 Comply with laws and regulations
1-2 Maintain proper relationships with partners
1-3 Engage in fair competition
1-4 Maintain proper relationships with governments andadministrations
1-5 Reject relationships with anti-social forces
1-6 Engage in proper management of information
1-7 Prohibit dishonest behavior
1-8 Respect corporate assets
2-1 Respond sincerely to customers
3-1 Exercise consideration for the environment
3-2 Engage in timely and appropriate disclosure, conduct appropriate tax reporting
3-3 Practice co-existence with local communities
4-1 Respect human rights and prohibit discrimination
4-2 Prohibit harassment
4-3 Provide a comfortable work environment

Contributing to Our Communities
Compliance Codes of Conduct

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Responsible Marketing

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

The Tokyo Tatemono Group
Compliance Manual

The Tokyo Tatemono Group conducts responsible marketing
based on the Compliance Charter and Compliance Codes ofConduct. We strive to offer information that is accurate andhonest, conduct fair sales activities, and build up our brandimage. As we do so, we also work to ensure a common understanding among all employees by distributing the Compliance
Manual to staff including executives and temporary employees
and carrying out training each year.
In particular, we adhere to the Compliance Manual with82

regard to expressions used in advertising. We carefully examine advertising content for slanderous, discriminatory, or exaggerated expressions; religious or political beliefs;
environmental concerns; the privacy of third parties; personal
information; and intellectual property rights.
Compliance Training P.83

Relevant Compliance Codes of Conduct
1-1 Comply with laws and regulations
1-2 Maintain proper relationships with partners
1-3 Engage in fair competition
1-4 Maintain proper relationships with governments andadministrations

Guidelines for Initiatives to Prevent
Bribery and Corruption
We formulated the Tokyo Tatemono Group Anti-Bribery Guidelines to fulfill the commitments of our Compliance Charter. We
prohibit the provision of economic benefits to public officials or
deemed public officials that would infringe upon local laws or
regulations in Japan or in any of the countries where we conduct business. Furthermore, we publish information both within
and outside the company, on our corporate intranet and our
corporate website. Also, to ensure that we establish proper
relationships with our business partners, the Compliance
Codes of Conduct also prohibit giving or receiving excessive
gifts, entertainment, or other benefits, or engaging in anti-competitive behavior such as bid rigging or price cartels.
We work to ensure that employees are fully aware of theCompliance Manual by distributing copies of it as well as
through training programs.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Compliance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Going forward, we will also distribute our Sustainable
Procurement Standards to suppliers, to ensure that they understand and respect them.

Environment

Tokyo Tatemono Group Anti-Bribery Guidelines

Relevant Compliance Codes of Conduct

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management

Assessment and Monitoring of Bribery Risks
The Anti-Bribery Regulations and Anti-Bribery Manual assess
bribery risks and identify certain high-risk activities (including
the use of agents to provide services on an intermediary,
agency, or mediation basis in addition to direct transactions).
To deter such activities, in the Anti-Bribery Regulations andAnti-Bribery Manual, the Company has established approval
and reporting processes for entertainment, gifts, donations, etc.
With regard to bribery, the Risk Management Committee(Compliance Subcommittee) conducts risk assessment andmonitoring. Internal audits are conducted periodically to evaluate and review the anti-bribery control system.

Political Donations
We do not make donations related to political activities to individual politicians or organizations other than political parties orpolitical fund organizations. When making donations related topolitical activities to political parties and political fund organizations, we take appropriate measures in accordance with the
Political Funds Control Act, the Public Offices Election Act, andother related laws and regulations.

CompliancePreventing Anti-Competitive Practices

Data
Sustainability Finance Reporting

Third-Party Assurance

The Tokyo Tatemono Group did not incur any fines or otherpenalties related to anti-competitive practices in fiscal 2022.

Through training and other measures, we publicize and teachthe content of the Compliance Manual and Compliance Codesof Conduct, working to prevent anti-competitive practices(monopolies, etc.).

1-1 Comply with laws and regulations
1-2 Maintain proper relationships with partners
1-3 Engage in fair competition

reminders of the need to prevent bribery, and other misconduct,
as well as harassment and other violations related to occupational health and safety.
On the subject of legal and tax matters of high importance toour business, we invite external experts as lecturers for seminars. These seminars cover the latest examples of trials, tax
reforms, and other information related to business activities
throughout the Group.
Program for 2022 Compliance Training (e-Learning)

Compliance Training
Tokyo Tatemono conducts compliance training throughe-learning each year. In 2022, around 4,400 executives andemployees from 19 Group companies, including all employeesof the Company, participated in the training (completion rate:
100% for Tokyo Tatemono, 97.6% for the Group as a whole).
As well as the topics covered every year, the training in 2022
included additional content to enable participants to expand
and update their knowledge. A section on the Whistleblower
System and Whistleblower Protection Act aimed to familiarize
students with the Whistleblower Protection Act that wasrevised and enforced in 2022 and the whistleblower system
based on the Act. Another section on compliance with laws
and regulations aimed to ensure compliance with various
business laws.
In addition to e-learning training, we conducted level-specificcompliance training, including training for line managers toprevent abuses of power, compliance and risk management
training for directors and general managers (including outside
directors), and compliance training for those newly appointed toleadership positions.
To prevent corruption and bribery, we post a monthly newsletter called Compliance News on the intranet, providing regular

83

Group-wide
Courses• Group Compliance (prevention of corruption, andCompliance Codes of Conduct)• Information Management I (personal information, insider
trading prevention)• Information Management II (confidential information
management, My Number)• Common Subjects (Compliance with Laws andRegulations, etc.)• Whistleblower Protection Act and Whistleblower
Protection System• Real Estate Brokerage Act and Criminal Proceeds
Transfer Prevention Act (anti-money laundering)• Personal Information• Prevention of Insider Trading• Personal Information Protection Education and Training• Communication Training
Separate• Power Harassment
modules• Information Security
implemented• Customer-oriented Business Operation Policy
depending• Anti-Money Laundering and Criminal Proceeds Transfer
on nature ofPrevention Act
each• What to Check When a Transaction is madecompany• Reconfirmation of cases pointed out in inspections(handling of real estate appraisals)• Training on Preventing Harassment• Compliance with the Subcontract Act

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Governance

Related Material Issues

Advancement of governance

Strengthen risk management framework

Management
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Compliance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Data Related to Compliance Training(E-learning: Group Compliance)
Number of training participants (Tokyo Tatemono)
Number of training participants (Group)
Training completion rate (Tokyo Tatemono)
Training completion rate (Group)
Scope of Collection: Tokyo Tatemono Group

Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building(Persons)
5,000

99.3

99.8

99.9

Biodiversity
Sustainability Finance

100.0

100.0

(%)
100

97.9

Water Resources
Promoting a Recycling-oriented Society

Establishment of a Helpline

98.0
97.6

4,000
3,000

2,862

3,026

98

3,585 96

2,000

94

Responding to Natural Disasters
1,000

SocialRespect for Human Rights

0

860
2018

873
2019

884
2020

937
2021

965
2022

92
90

* Following a review, the number of trainees for 2021 (Tokyo Tatemono) has been revised.

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Compliance Surveys
Since 2009, the Tokyo Tatemono Group has conducted anannual compliance survey to understand and verify the degreeof compliance awareness and acceptance among group
employees. In 2022, 8,843 employees from 19 group companies were surveyed—a response rate of 76.3%.
The results of the survey were analyzed to understandresponses by group companies and for the Group as a whole.
This analysis was then reported to the Risk Management
Committee (Compliance Subcommittee). We also share thesurvey results on the intranet and provide feedback to groupcompanies as an aid in solving problems in advance, reflecting
on compliance structure, and engaging in compliance awareness activities.

The Tokyo Tatemono Group established the Tokyo TatemonoGroup Helpline, a common external resource for the wholeGroup, in addition to separate internal helplines that are inplace within each Group company. Both types of helplines
accept internal complaints, reports, and consultations. The
helplines aim to prevent or quickly resolve compliance violationsin the Group, such as violations of laws or regulations, bribery
or other acts of corruption, misconduct, or harassment, in lightof the compliance with laws and regulations, prohibition of
fraudulent acts, prohibition of harassment, and other conduct
stipulated in the Compliance Codes of Conduct.
These services are available to all workers (including part-timeand casual workers) and retired employees of the Group, as
well as temporary and contract employees engaged in business. In addition, in keeping with the spirit of the Whistleblower
Protection Act, whistleblowers will not be treated disadvantageously because of their internal complaints or reporting, andtheir privacy will be protected.
Number of Helpline Calls and Consultations (FY2022)(Data) Reports and Consultations to the Helpline P.93

Response to Anti-Social Forces
The Tokyo Tatemono Group created Exclusion of Anti-Social
Forces Rules, which detail our rules to exclude any and all
relationships with anti-social forces and establishes specificmethods for conducting due diligence on organizations referencing the Anti-Social Forces Check Manual. We cooperatewith external experts and organizations such as the police andlawyers as part of our resolute response to anti-social forces.

Data Collection Scope: Tokyo Tatemono Group

Labor Issues:

Other:

Transparency on Taxes

7

12

Sexual harassment:
3

Other harassment:
30(Data) Compliance Training and Return Rate of Compliance Surveys P.92

Third-Party Assurance

Internal complaints, reports, or consultations received will bereported to the Legal & Compliance Department. Depending on
the nature of the complaint, the facts will be investigated andconfirmed either by this department or by the reporting divisionof each Group company or by the harassment response division of each company. Based on the investigations, we takeprompt action for acts of noncompliance, including putting inplace corrective measures and measures to prevent recurrence.
The Risk Management Committee (Compliance Subcommittee)
convenes to consider responses to the most serious cases.

84

In accordance with the Compliance Charter, the Tokyo
Tatemono Group pays taxes appropriately, in accordance withinternational standards as well as the laws, regulations, andsocial norms of each country and region.
We respond conscientiously to the tax authorities and strive
to maintain good relationships with them. In all of our
responses to questions from tax authorities, we have provided
honest and accurate explanations of the facts as we understand them.

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

Tokyo Tatemono underwent a third-party quality assurance evaluation by LRQA Limited inconnection with certain environmental and social data to ensure the integrity of the data within
this report. The type of data and numerical figures subject to this evaluation are indicated witha dagger (†).
The collection period and scope are indicated for each item of the data. Point-in-time data isprovided as of the last day of the last month of the collection period. In addition, in the aggregate
scope, the coverage rate of data marked as Tokyo Tatemono is 64%.

Energy Consumption and CO2 Emissions (Scope of Collection: Tokyo Tatemono facilities
subject to the Act on the Rational Use of Energy)

SocialCategory

Improving Quality and Customer Satisfaction

Energy Consumption(Crude Oil Equivalent)†

Revitalizing and Utilizing Real Estate Stock

Unit Load

Contributing to Our Communities

CO2 Emissions†

Supply Chain Management

Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management

Unit

2018

2019

2020

2021

2022
Target2022

kl

23,895†24,165†23,497†

23,050†23,510†̶

kl/Thousand m2

35.0

34.0

28.6

27.2

26.6

31.5

t-CO2

44,559†44,263†

41,824†

39,209†40,073†

t-CO2

3,300

†

2,871

†

2,534

†

2,542

†

2,428

†

t-CO2

41,259†41,392†39,290†36,667†37,646†

Unit Loadt-CO2/Thousand
m2

65.2

62.3

50.8

46.3

45.4

57.4

Floor Area within Scope ofReportingThousand m2

683

710

823

847

883

̶

Scope 1 (Fuel-Derived)†

Scope 2†

Unit

2019

2020

t-CO2

Scope 1 (Fuel-Derived)†

CO2 Emissions

Promoting a Decarbonized Society: Indicators and Results

Sustainability Finance

Respect for Human Rights

Category

Environment

Biodiversity

Responding to Natural Disasters

CO2 Emissions (Scope of Collection: Tokyo Tatemono Group)

†

2021

2022

1,100,693

1,288,946†

943,489†

732,547†

t-CO2

15,05011,981†

12,657†

18,522†

Scope 2†t-CO2115,897

104,736†

96,195†

88,124†

Scope 3t-CO2

969,745

1,172,229†

834,638†

625,901†

1. Purchased goods and services

t-CO2

19,171

16,790†17,629†20,246†

2. Capital goods

t-CO2

227,580

198,205†

73,633†71,522†

3. Fuel and energy-related activities notincluded in Scopes 1 and 2

t-CO2

22,33520,554†

19,734†20,927†

4. Transportation and distribution(upstream)

t-CO2

—

—

—

—

5. Waste generated in operations

t-CO2

18,532

11,181†

10,350†13,137†

6. Business travel

t-CO2

1,482

715†

902†

1,648†

7. Employee commuting

t-CO2

1,575

1,570

1,627

1,751††††

8. Leased assets (upstream)

t-CO2

—

—

—

—

̶

9. Transportation and delivery(downstream)

t-CO2

—

—

—

—

̶

10. Processing of sold products

t-CO2

—

—

—

—

̶

11. Use of sold products

t-CO2

667,565

912,151†

700,453†

489,609†

12. Disposal of sold products

t-CO2

11,505

11,061†

10,310†7,062†* From FY2021 the data collection period was changed to January to December. (Until FY2020 it was April to March.)

Compliance

13. Leased assets (downstream)

t-CO2

—

—

—

—

14. Franchises

t-CO2

—

—

—

—

15. Investments

t-CO2

—

—

—

—

*1 Category 4 is included in the calculation for Category 1.
Categories 8 and 13 are included in the calculation for Scope 1 and 2.
Other categories for which no figures are provided have no emission sources.
*2 From FY2021 the data collection period was changed to January to December. (Until FY2020 it was April to March.)

Data
Sustainability Finance Reporting

Third-Party Assurance

85

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialCategory

Health Management / Occupational Safety and HealthDiversity & Inclusion

2021

2022

3,675

22,735†

%

—

—

—

2.7

16.3†

Energy generated from solar power†

Thousands of
kWh

—

—

—

80

3,337†

Number of Facilities with Solar Panels
Installed

Facilities

—

—

—

7

15

%

38.3

37.8

39.7

34.8

48.9

Usage rate†

Solar power panel installation rate

Data
Sustainability Finance Reporting

847

997

0.88

0.57

0.55

0.59

Unit Load (Targets)

m3/m2

0.90

0.89

0.88

0.87

0.86

%

+5.8

-3.2

-37.3

-39.4

—

Groundwater Consumption

Thousand m3

—

—

—

21

25

Recycled Water Consumption†

Thousand m3

—

—

—

46†

104†

KPI/Target: Reduce unit water consumption from the previous year
Material Issue KPIs and Targets P.11

Category
Unit

Usage rate†
Energy generated from solar power†

2018

2019

2020

2021

2022

3,675

22,735

Thousands of
kWh

—

%

—

—

—

1.8

11.2†

Thousands of
kWh

—

—

—

14,96718,092†——†

Facilities

—

—

—

15

23

Of which Mega Solar Facilities Managed
by Tokyo Fudosan Kanri

Facilities

—

—

—

8

8

2019

2020

2021

2022

—

—

688

786

Potable Water Consumption†

Thousand m

3

—

—

—

567

657†

Groundwater Consumption

Thousand m

3

—

—

—

21

25

Recycled Water Consumption†

Thousand m3

—

—

—

100†

104†

Floor Area within Scope of Reporting

Thousand m2

—

—

—

983

997

m /m

—

—

—

0.70

0.79

3

2

†

* Properties for which Tokyo Tatemono has substantial energy management authority

Water Withdrawal (Scope of Collection: Tokyo Tatemono [CPB] long-term buildings andcommercial facilities*)
Category

Water Consumption and Water Consumption Unit Load (Scope of Collection: Tokyo
Tatemono facilities subject to the Act on the Rational Use of Energy)

Unit

Thousand m

2018
3

654

2019
†

622

2020
†

467

2021
†

464

Unit

Thousand m

2018

2019

2020

2021

2022

3

—

—

587

588

682

Surface Water

Thousand m3

—

—

0

0

0

Groundwater3

Thousand m

—

—

22

21

25

Industrial Water

Thousand m3

—

—

0

0

0

Potable Water

Thousand m3

—

—

565

567

657

Total Water Withdrawal

Water Reduction Targets: 5% water consumption unit load reduction by FY2022
compared to FY2017 (equivalent to 1% annual reduction)

Potable Water Consumption

2018

—

Unit Load (Results)

Water Resources: Indicators and Results

†

Unit

Thousand m3

Total Water Consumption

Number of Facilities with Solar Panels
Installed

Category

Third-Party Assurance

823

0.96

Water Consumption and Water Consumption Unit Load (Scope of Collection: Tokyo
Tatemono [CPB] long-term buildings and commercial facilities*)

Renewable Energy (electricity) Usage Amount, Usage Rate, and Energy Generated (Scopeof Collection: Tokyo Tatemono Group)

Corporate GovernanceCompliance

710

m3/m2

* From FY2021 the data collection period was changed to January to December. (Until FY2020 it was April to March.)

GovernanceRisk Management

683

Unit Load (Results)

Target Progress Rate (Results)—

Usage amount†

Human Resource Investment and Development

2020

—

Supply Chain Management

Contributing to Our Communities

2019

—

Category

Revitalizing and Utilizing Real Estate Stock2018

Thousands of
kWh

Usage amount†

Respect for Human Rights

Improving Quality and Customer Satisfaction

Unit

Thousand m2

Floor Area within Scope of Reporting

Renewable Energy (electricity) Usage Amount and Usage Rate, and Energy Generated(Scope of Collection: Tokyo Tatemono Commercial Properties Business)

2022
†

522†

86

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

External Wastewater

Thousand m3

—

—

0

0

0

Recycling Rate †Rainwater

3

Thousand m

—

—

0

0

0

Sea Water

Thousand m3

—

—

0

0

0

Floor Area Within Scope ofReportingThousand m2

—

—

978

983

997

m3/m2

—

—

0.60

0.60

0.68

Floor Area within Scope of Reporting
Unit Load (Results)

Sustainability FinanceTotal Water Discharge

Responding to Natural Disasters

SocialUnit

Seawater

2018

2019

2020

2021

63.7

64.3

58.5†

58.1†

Thousand m2

593

606

691

738

740

Waste Emissions and Recycling Amount / Recycling Rate (Scope of Collection: Tokyo
Tatemono [CPB] long-term buildings and commercial facilities*)

Water Discharge (Scope of Collection: Tokyo Tatemono [CPB] long-term buildings andcommercial facilities*1)
Category

64.8* Tokyo Tatemono long-term buildings and commercial facilities that are subject to the Energy Conservation Law and for which we havesubmitted written plans for waste reuse and reduction* Properties for which Tokyo Tatemono has substantial energy management authority

Biodiversity%

KPI/Target: Waste emissions per unit: 20% reduction by FY2030 compared to FY2019; waste recycling rate: 90% reduction by FY2030

2022

Material Issue KPIs and Targets P.11

Thousand m3

—

—

681

688

786

Thousand m3

—

—

0

0

0

Category

Unit

Surface water

Thousand m3

—

—

0

0

0

Total Waste Emissions

Groundwater

Thousand m3

—

—

0

0

0

Unit Load

†

2018

2019

2020

2021

2022
†

t

—

—

—

6,350

6,429†

t/Thousand m2

—

—

—

5.3

5.3

†

3,913

Respect for Human Rights

Sewage water

Thousand m3

—

—

559

575

667

Recycling Amount

t

—

—

—

4,171

Supply Chain Management

Other*2Thousand m3

—

—

123

114

119

Recycling Rate†

%

—

—

—

65.7†

60.9†

—

—

—

1,207

1,210

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock†

Floor Area Within Scope of Reporting*1 Properties for which Tokyo Tatemono has substantial energy management authority*2 Other indicates the difference between water consumption and total water discharged, from seawater to sewage water.

* Long-term buildings and commercial facilities for which Tokyo Tatemono has substantial energy management authority and for which wehave submitted a written plan for waste reuse and reduction

Contributing to Our Communities
Human Resource Investment and Development

Promoting a Recycling-oriented Society: Indicators and Results

Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management

Environmental Management: Indicators and Results

Waste Emissions and Recycling Amount / Recycling Rate (Data Collection Period: April to
March of the following year. Scope of Collection: Tokyo Tatemono properties that are
subject to the Energy Conservation Law*)

Environmental Incidents and Violations of Environmental Laws or Regulations (DataCollection Period: January to December each year. Scope of Collection: Tokyo Tatemono
Co., Ltd.)

Waste Emissions Reduction Targets: 5% waste emission unit load reduction by
FY2022 compared to FY2017 (equivalent to 1% annual reduction)

Category

Compliance
Category

Data
Sustainability Finance Reporting

Third-Party Assurance

Waste Emissions Amount †Unit Load
Recycling Amount †Thousand m

2

Unit

2018

2019

2020

2021

2022

t

4,945†

5,151†

3,769†

3,939†

4,435†

t/Thousand m2

8.3

8.5

5.5

5.3

6.0

t

3,202†

3,280†

2,424†

2,305†

2,578†

2018

2019

2020

2021

2022

Incidents

0

0

0

0

0

Environmental Incidents

Incidents

0

0

0

0

0

Yen

0

0

0

0

0

Environmental Fines

87

Unit

Violations of Environmental Laws orRegulations

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Green Building External Evaluation and Certification: Indicators and Results

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Acquisition Rate of Green Building Certification for Owned and Managed Properties (Scopeof Collection: Tokyo Tatemono Co., Ltd.)
Category

Unit

2018

2019

2020

2021

2022

Acquisition Rate of Certification for
Owned and Managed Properties
Certification Acquired

%

40.7

36.6

38.3

56.4

62.5

Respect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Not Certified

%

59.3

63.4

61.7

43.6

37.5

Acquisition Rate of Certification for the
Leasable Area of Office Buildings

%

40.6

36.3

41.4

63.1

66.6

Acquisition Rate of Certification for
Leasable Area of Residential Buildings

%

42.3

39.1

22.2

22.2

27.2

360

367

376

377

334

342

345

349

350

Women

Persons

16

18

22

27

27

Ratio of Management Positions Held by
Women

%

4.6

5.0

6.0

7.2

7.2

Ratio of Director Positions Held by
Women

%

0

0

0

8.3

8.3

2021

2022

Turnover
Category

Unit

Turnover Rate
(Full-time Employee Turnover*)†Headcount

2020

2.1†

2.2†

1.5†

3.3†

Persons

20

17

18

13

30

Persons

11

9

6

9

17

Of which FT Employees

Persons

8

9

5

8

15

Of which Contract Employees

Persons

3

0

1

1

2

Persons

9

8

12

4

13

Of which FT Employees

Persons

0

1

3

2

9

Of which Contract Employees

Persons

9

7

9

2

4

Women

Diversity & Inclusion: Indicators and Results (Data Collection Period: January to
December each year. Scope of Collection: Tokyo Tatemono Co., Ltd.)

2019

2.6†

Job Leavers (Total)

Social

2018

%

Men

* Voluntary resignations only

Category

Unit

Full-Time (FT) Employees (Total)Men
20 to 30 years old
31 to 40 years old

20 to 30 years old

2019

2020

2021

2022

719

749

772

805

840

Persons

548

563

575

595

620

%

13.1

15.1

16.7

18.5

19.4

%

Women

2018

Persons%

41 years old and above

25.2
61.7

22.0
62.9

21.0
62.3

22.4
59.2

Unit

2018

2019

2020

2021

2022

21

20

33

57.1

Men

Persons

14

14

15

23

20

Women

Persons

8

7

5

10

10

New Graduate Hires (Total)

23.5

30

Persons

171

186

197

210

220

%

20.5

19.9

19.8

23.3

25.5

Ratio of Women among New Graduate Hires

%

36.4

33.0

25.0

30.3

33.3

Ratio of Mid-career Hires to Regular
Employees

%

29.0

41.7

57.4

37.7

57.7

%

33.3

31.7

28.4

28.6

26.8

%

46.2

48.4

51.8

48.1

47.7

Ratio of FT Women Employees

%

23.8

24.8

25.5

26.1

26.2

Ratio of Women Employees

%

27.7

28.9

30.2

30.8

31.0

%

0.3

0.3

0.3

0.2

0.2

%

1.87

1.81

1.75

2.21

2.33

†

Category

22

41 years old and above

Ratio of Foreign Regular Employees

Employment Status

Persons

31 to 40 years old

Ratio of Employees with Disabilities*

Third-Party Assurance

350

Persons* Ratio of Employees with Disabilities is as of June each year

* DBJ Green Building Certification, CASBEE Building, etc

SocialPersons

Men

Number of Managers (Total)

†

†

†

†

Years

12.9

13.0

13.0

13.0

12.6

Men

Years

13.6

13.8

14.0

14.0

13.4

Women

Years

10.6

10.7

10.4

10.1

10.4

Years

3.0

3.1

3.6

3.9

3.0

Average Years of Service

Difference in Average Tenure between
Male and Female Regular Employees†

88

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Category

Environment
Environmental Management
Promoting a Decarbonized Society

Human Resource Investment and Development: Indicators and Results (Data Collection
Period: January to December each year. Scope of Collection: Tokyo Tatemono Co., Ltd.)

Rehiring of Employees at Retirement Age
Unit

2018

2019

2020

2021

2022

Employees at Retirement Age

Persons

8

8

11

10

13

Rehired Persons

Persons

7

8

9

8

12

87.5

100.0

81.8

80.0

92.3

Ratio of employees at retirement age who
were rehired%

EBIT (Earnings Before Interest and Taxes) per Employee
Category

EBIT (earnings before interest and taxes)
per employee

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction

Category

2018

2019

2020

2021

2022

Persons

26

37

29

33

32

Men

Persons

17

21

22

23

22

Women

Persons

9

16

7

10

10

Persons

24

24

26

26

21

Men

Persons

6*4

1*4

4

3*4

11

Women

Persons

18

23

22

23

10

%

92.3

64.8

89.6

78.7

65.6

Total Number of Employees Who Were
Eligible for Childcare Leave*1

Total Number of Employees Who Have
Taken Childcare Leave

Percentage of Childcare Leave Taken

Unit

%

35.3*4

4.8*4

18.2

13.0*450.0

Contributing to Our Communities

Women

%

100.0

100.0

100.0

100.0

100.0

Persons

10

15

6

16

16

Diversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

56

2019

62

2020

62

2021

69

2022

72

* A measure of productivity defined in ISO30414 (Guidelines for the Disclosure of Information on Human Capital).

Men*2

Health Management / Occupational Safety and HealthMillion Yen

2018Childcare Leave

Revitalizing and Utilizing Real Estate Stock

Human Resource Investment and Development

Unit

Total Number of Employees Who
Returned to Work after Childcare Leave
Men

Persons

2

6

0

5

12

Women

Persons

8

9

6

11

4

%

100.0

100.0

100.0

100.0

88.9

Men

%

100.0

100.0

—

100.0

100.0

Women

%

100.0

100.0

100.0

100.0

66.7

Percentage of Employees Returning toWork after Childcare Leave*3

Average Hours of Training per Year per Employee
Category

Unit

Average annual training hours

Hours

2018

12.0

2019

14.4

2020

12.2

2021

18.3

2022

15.8

Training Participation Rate
Category

Unit

Career training participation rate

%

2018

—

2019

—

2020

100

2021

100

2022

100

Employee Engagement Survey
Category

Unit

Rating*

—

2018

—

2019

—

2020

—

2021

A

2022

A

Score

—

—

—

—

59.1

59.4

* The results of the scores calculated independently by the research company are ranked in 11 rating levels.
Ratings: DD (score less than 33), DDD (33-39), C (39-42), CC (42-45), CCC (45-48), B (48-52), BB (52-55), BBB (55-58), A (58-61), AA(61-67), AAA (67+).

Percentage of Employees Receiving Regular Performance Reviews*1 Total number of employees who had a child born in the relevant year.
*2 Male employees taking childcare leave = total number of male employees who took childcare leave in the relevant year/total
number of male employees who had a child born in the relevant year.
*3 Total number of employees who returned to work/total number of employees who were scheduled to return to work (Thenumber of employees who returned to work is the number of employees who were scheduled to return to work excluding
those who left for personal reasons without returning to work).
*4 Following a close examination of data, figures have been revised.

89

Category

Unit

2018

2019

Percentage of Employees Receiving
Regular Performance Reviews

%

100

Men

%

100

100

Women

%

100

100

100

2020

100

2021

2022

100

100

100

100

100

100

100

100

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Category

Environment

Percentage of Unionized Employees

Acceptance of Interns

Total number of interns accepted

Unit

Persons

2018

157

2019

144

2020

2021

207

272

2022

306

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society

Category

Unit

Percentage of Unionized Employees

%

2018

2019

100

2020

100

2021

100

2022

100

100

Changes in Average Overtime Hours Worked per Month (Data Collection Period: January to
December each year.)

Health Management / Occupational Safety and Health: Indicators and Results (DataCollection Period: April to March each fiscal year. Scope of Collection: Tokyo
Tatemono Co., Ltd.)

Category

Average overtime hours

Health Management-related Measures

Unit

2018

2019

2020

2021

2022

Hours

25

23

24

26

26

Unit

2018

Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthCategory

Unit

2018

2019

2020

2021

2022

Ratio of employees who underwent ahealth check-up†

%

100†

100†

100†

100†

100†

Reexamination rate

%

94.0

63.0

98.3

83.7

98.0

Ratio of employees who smoke

%

22.5

21.0

17.2

16.0

12.1

Lost Time Injuries
Category

Investment in Health Management (Portion Borne by Tokyo Tatemono)
Category

Amount Invested in Health Management
per Employee

Unit

Thousand Yen

2018

—

2019

—

2020

109

111

2022

116

Diversity & Inclusion

Paid Leave Status

GovernanceCorporate GovernanceRisk Management
Compliance

Data

Category

Unit

2018

2019

2020

2021

Average Number of Annual Paid Leave
Utilization Days†

Days

9.9†

10.6†

9.3†

10.2†

11.8†

Average Annual Paid Leave Utilization
Rate†

%

—

57.7†

51.2†

57.5†

67.8†

2021

2022

Incidents

1

0

0

†

1

†

1†

Of which FT Employees

Incidents

0

0

0

1

1

Of which Contract Employees

Incidents

1

0

0

0

0

Total Days Lost Due to Absence†

Days

137†

122†

7†

386†

646†

Ratio of Absenteeism†

%

—

0.06†

0†

0.18†

0.28†

Persons

0

0

0

0

0

Of which FT Employees

Persons

0

0

0

0

0

Of which Contract Employees

Persons

0

0

0

0

0

Lost time incident frequency rate
(LTIFR)† *2

—

—

0

†

0

†

0.59

†

0.58†

Occupational accident severity rate*3

—

—

0

0

0.001

0

Number of Deaths

2021

2020
†

Number of Lost Time Injuries† ** Smoking rates for 2018 or earlier are for executives and employees 35 years of age and older. Smoking rates from 2019 onward are for all
executives and employees.

2019
†

1

*1 Number of lost time injuries: Accidents that occur during work that result in one or more days absence.
*2 Lost time incident frequency rate: Number of fatalities and injuries due to occupational accidents / Total number of actual working hours
x 1,000,000*3 Occupational accident severity rate: Total number of working days lost / Total number of actual working hours x 1,0002022* Other leave policies provide for vacations such as summer leave and national holidays (not included in the above figures)

Sustainability Finance Reporting

Third-Party Assurance

90

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Revitalizing and Utilizing Real Estate Stock: Indicators and Results

Improving Quality and Customer Satisfaction: Indicators and Results

Feature:Revitalizing Housing Complexes

Office Building Customer Satisfaction Survey Results

Environment

Category

Unit

2018

2019

2020

2021

2022

Environmental Management

Satisfied

%

80.00

79.35

81.56

79.2

79.4

Promoting a Decarbonized Society

Somewhat satisfied

%

18.43

18.21

17.60

18.9

17.5

External evaluation and Certification for Green Building

Somewhat dissatisfied

%

1.37

2.17

0.56

1.4

2.3

Water Resources

Dissatisfied

%

0.20

0.27

0.28

0.5

0.8

2018

2019

2020

2021

2022

Under
reconstruction

Category

Unit

Total Units before
Reconstruction

Units

875

971

994

994

994

4,154

Total Units after
Reconstruction

Units

1,644

1,846

1,884

1,884

1,884

8,008

Site area
beforereconstruction

Total units
beforereconstruction

Year ofcompletion ofreconstruction

Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance

Details on Revitalization of Housing Complexes (Properties Whose Reconstruction Has Been Completed or Started)

Responding to Natural Disasters
Property nameSocialSupply Chain Management
Improving Quality and Customer Satisfaction

Completed

Respect for Human Rights

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Location

Diversity & Inclusion

Corporate GovernanceRisk Management

StartedGovernance

Site area afterreconstruction

Total units afterreconstruction

64,399m2

1,249 units

Suwa 2-chome Housing Condominium Reconstruction Project

Brillia Tama New Town

Suwa 2-chome, Tama-shi, Tokyo

1971

64,399m2

640 units

October 2013

Heights Komagome Apartments Reconstruction Project

Brillia Komagome
Rikugien

6-chome, Honkomagome, Bunkyo-ku,
Tokyo

1971

940m

2

25 units

July 2014

940m2

49 units

Fujisaki Housing Condominium Reconstruction Project

Residence Momochi

2 Momochi, Sawara-ku, Fukuoka-shi,
Fukuoka

1971

9,946m2

130 units

March 2015

9,946m2

232 units

Koganei Condominium Reconstruction Project

Brillia Koganei Sakuracho

Sakura-cho 2-chome, Koganeishi, Tokyo

1964 and1965

5,356m2

80 units

April 2016

5,219m2

114 units

Senri-Tsukumodai A Condominium Complex Reconstruction Project Brillia City Senri
Tsukumodai

3, Tsukumodai, Suita City, Osaka
Prefecture

1966

7,256m2

96 units

December 2019

7,256m2

202 units

Hiratsuka-cho Housing Reconstruction Project

Brillia Hatanodai

6-chome Hatanodai, Shinagawa-ku,
Tokyo

1959

1,829m2

23 units

November 2020

1,829m2

38 units

Itopia Hamarikyu Condominium Complex Reconstruction Project

Brillia Tower Hamarikyu

1 Kaigan, Minato-ku, Tokyo

1979

2,820m2

328 units

September 2023

2,820m2

420 units

Shakujii Koen Apartment Complex Reconstruction Project

Brillia City Shakujiikoen
ATLAS

3 Kami-shakujii, Nerima-ku, Tokyo

1967

42,365m2

490 units

June 2023

37,730m2

844 units

Human Resource Investment and Development
Health Management / Occupational Safety and HealthYear ofcompletionof original
construction

Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

91

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:GovernanceCompliance: Indicators and Results
Violation of Laws or Regulations and Related Sanctions

Corporate Governance: Indicators and Results

Environment

Category

Board of Directors Related Data

Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

Category

Unit

Sustainability Finance Reporting

Third-Party Assurance

2022

0

Number of incidents related to antitrust or
anti-competitive behavior

Incidents

0

0

0

0

0

Number of incidents related to Code of
Conduct

Incidents

0

0

0

0

0

Number of incidents related to othercompliance violations

Incidents

0

0

0

0

0

15

14

Number of Directors

Persons

12

12

12

12

12

Number of Executive Officers on Board

Persons

7

7

7

7

7

Number of Non-executive Officers on the
Board (Excluding Independent External
Directors)

Persons

1

1

1

1

1

Number of Independent External
Directors

Persons

4

4

4

4

4

Proportion of External Directors

%

33

33

33

33

33

Category

Average Board Meeting Attendance

%

100

99

100

100

99

Number of Violations of Laws or Regulations in
Incidents
Socioeconomic Activities

Years

5.8

3.8

4.8

4.6

4.4

Violation of Laws or Regulations in the Field of Socioeconomic Activities

Of which total amount of significant fines
Of which total number of sanctions other thanfines

* Average length of tenure of directors is as of March 31 of each year

Category

Total Amount by Type of Remuneration

Directors (Excluding External
Directors)
Audit and Supervisory
Board Members(Excluding External Members*)

8
2

Fixed
Remuneration(Million Yen)

Performancelinked
Remuneration(Million Yen)

Stock-BasedRemuneration(Million Yen)

271

171

37

52

—

—

Number of Training Participants
Training Completion Rate

Number of Training Participants
Training Completion Rate

52

6

54

—

—

54

16

377

171

37

586

2019

2020

2021

2022

—

—

0

0

0

Yen

—

—

0

0

0

Incidents

—

—

0

0

0

Unit

2018

2019

2020

2021

2022

Persons

860

873

884

937*

965

%

99.3

99.8

99.9

100.0

100.0

Persons

—

—

2,862

3,026

3,585

%

—

—

97.9

98.0

97.6

%

80.2

75.0

74.8

73.2

76.3

Tokyo Tatemono Group (Scope: 19 Group
Companies)

480

Total

2018

Tokyo Tatemono Only

Total
Remuneration(Million Yen)

External Officers

Unit

Compliance Training and Return Rate of Compliance Surveys

Remuneration of Directors and Audit and Supervisory Board Members (Fiscal Year Ended
December 2022)
Number of
Eligible
Individuals

2022

0

14

Average Tenure of Directors*(Including Independent External
Directors)

2021

0

15

Governance

Data

2021

2020

0

13

Executive Class

Compliance

2020

2019

0

Meetings

Diversity & Inclusion

Risk Management

2019

2018

Incidents

Number of Board Meetings

Health Management / Occupational Safety and HealthCorporate Governance

2018

Unit

Number of incidents related to bribery

Return Rate of Compliance Surveys(Scope: 19 Group Companies)* Following a close examination of data, figures have been revised.

* Two External Members

92

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

DataManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono GroupData

ESG Management
Initiatives and External Evaluation for Sustainability

Violations Related to Product and Service Information and Labeling

Feature:Category

Unit

2018

2019

Reports and Consultations to the Helpline
2020

2021

2022

Category

Incidents

0

0

0

0

0

Examples of regulatory violations that resulted in
Incidents
fines or penalties

0

0

0

0

0

Promoting a Decarbonized Society

Examples of regulatory violations that resulted in
Incidents
warnings

0

0

0

0

0

External evaluation and Certification for Green Building

Examples of violations of voluntary norms

Incidents

0

0

0

0

0

Number of Violations

Environment
Environmental Management

Number of Reports and Consultations to
the Helpline

Violations Related to Marketing Communications

Responding to Natural Disasters

SocialRespect for Human Rights
Supply Chain Management

Category

Unit

2018

2019

2020

2021

2022

Incidents

0

0

0

0

0

Examples of regulatory violations that resulted in
Incidents
fines or penalties

0

0

0

0

0

Examples of regulatory violations that resulted
in warnings

Incidents

0

0

0

0

0

Examples of violations of voluntary norms

Incidents

0

0

0

0

0

Number of Violations

2019

2020

2021

2022

Incidents

59

56

41

61

52

Reports, Consultation Category Report

Incidents

49

48

30

49

48

Incidents

Incidents

10

8

11

12

4

Labor Issues

Incidents

11

16

8

13

7

Sexual harassment

Incidents

1

3

2

3

3

Other harassment

Incidents

39

34

27

39

30

Other Incidents

Incidents

8

3

4

6

12

Consultation (Breakdown)

Biodiversity
Sustainability Finance2018(FY2022) Incidents

Water Resources
Promoting a Recycling-oriented Society

Unit

Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

93

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Reporting on Sustainability FinanceManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance Reporting

ESG Management
Initiatives and External Evaluation for Sustainability

Green Bond and Sustainability Bond Reporting

Feature:Funding Allocation Status(as of December 31, 2022)

Environment
Environmental Management

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialValidenvironmental
certifications

Hareza Ikebukuro: 20,000 million yen (fully allocated)
Nakano Central Park South: 29,516 million yen (fully allocated)

Certifications
pending

None

Certifications
obtainedHareza Tower· DBJ Green Building Certification: 5 stars· CASBEE-Buildings (New Construction): Class S· ZEB Ready (BELS certification: 5 stars)· BELS certification: 5 stars (ZEB Ready)Nakano Central Park South:· DBJ Green Building Certification: 5 stars

Energy consumption/CO2 emissions/
Water consumption

Status of allocation of proceeds(as of December 31, 2022)

Environmental
Improvement Impact

External evaluation and Certification for Green Building

Environmental Improvement
ImpactPromoting a Decarbonized Society

Sustainability Bonds Reporting (First Issuance)

Green Bond Reporting

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35

Validenvironmental
certifications

Certifications
pending

None

Certifications
obtained

Tokyo Square Garden· DBJ Green Building Certification: 5 stars
Tokyo Tatemono Nihonbashi Building· DBJ Green Building Certification: 4 stars

Energy consumption/CO2 emissions/
Water consumption

Status of project development(as of December 31, 2022)

Project Usage*2(January – December 2022)

Number of events held: 193
Number of companies using the facility: 98

Supply Chain Management

Social benefit

Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Governance

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35
Yaesu Project· Demolition in progress
Tokyo Square Garden· Development of space for receiving stranded commuters,
disaster prevention stockpiling for stranded commuters,
comprehensive initial medical treatment facilities and childcare
support facilities for foreign nationals
Tokyo Tatemono Nihonbashi Building· Development of space for receiving stranded commuters,
disaster prevention stockpiling for stranded commuters, andbarrier-free pedestrian network

Respect for Human Rights

Improving Quality and Customer Satisfaction

Yaesu Project: 15,000 million yen (fully allocated)Tokyo Square Garden: 14,000 million yen (fully allocated)Tokyo Tatemono Nihonbashi Building: 10,000 million yen(fully allocated)
Social projects*1: 798 million yen (fully allocated)*1 Overview of Green Bonds and Sustainability Bonds P.41
*2 Project usage: The sum of usage at City Lab TOKYO, TOKYO FOOD LAB, xBridge-Tokyo, xBridge-Tokyo Next, Kitchen Studio SUIBA,
and TOKYO IDEA EXCHANGE

Corporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

94

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Reporting on Sustainability FinanceManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance Reporting

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Sustainability Bond Reporting (Second Issuance)
Status of allocation of proceeds(as of December 31, 2022)

Environment
Environmental Management

Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability FinanceValidenvironmental
certifications

Certifications inprogress

Certified

Energy consumption/CO2 emissions/
Water consumption

Responding to Natural Disasters

SocialSupply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate Stock

Social benefit

Respect for Human Rights

Status of project development(as of December 31, 2022)

Contributing to Our Communities
Human Resource Investment and Development

Project Usage*(January – December 2022)

Status of allocation of proceeds(as of December 31, 2021)

None
Tokyo Square Garden· DBJ Green Building Certification: 5 stars
Tokyo Tatemono Nihonbashi Building·DBJ Green Building Certification: 4 stars
Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35
Yaesu Project· Demolition in progress
Tokyo Square Garden· Development of space for receiving stranded commuters,
disaster prevention stockpiling for stranded commuters,
comprehensive initial medical treatment facilities and childcare
support facilities for foreign nationals
Tokyo Tatemono Nihonbashi Building· Development of space for receiving stranded commuters,
disaster prevention stockpiling for stranded commuters, andbarrier-free pedestrian network
Number of events held: 193
Number of companies using the facility: 98

Diversity & Inclusion

GovernanceValidenvironmental
certifications* Project usage: The sum of usage at City Lab TOKYO, TOKYO FOOD LAB, xBridge-Tokyo, xBridge-Tokyo Next, Kitchen Studio SUIBA,
and TOKYO IDEA EXCHANGE

Corporate GovernanceRisk Management
Compliance

Data

Hareza Tower (Hareza Ikebukuro): 500 million yen (fully allocated)
Nakano Central Park South: 7,000 million yen (fully allocated)
Brillia ist Tower Kachidoki: 2,000 million yen (fully allocated)Nonoaoyama Building: 433 million yen (fully allocated)

Certifications
pending

None

Certifications
obtainedHareza Tower (Hareza Ikebukuro)· DBJ Green Building Certification: 5 stars· CASBEE-Buildings (New Construction): Class S· ZEB Ready (BELS certification: 5 stars)
Nakano Central Park South· DBJ Green Building Certification: 5 stars
Brillia ist Tower Kachidoki· DBJ Green Building Certification: 5 stars

Energy consumption/CO2 emissions/
Water consumption

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35

Output(as of December 31, 2022)

Brillia ist Tower Kachidoki· Provision of medical facilities· Provision of certified nursery schools (childcare facilities)· Provision of family houses (accommodation facilities for patientswith incurable pediatric diseases)
Nonoaoyama Building· Provision of housing for the elderly· Provision of childcare facilities

Outcome(as of December 31, 2022)

Brillia ist Tower Kachidoki· Medical facilities (dentistry, ophthalmology, pediatrics)· Maximum number of children accepted at childcare facilities(114 in total / nursery school 108, kindergarten 6)· Number of rooms in family houses, number of people who canstay overnight (two rooms available, with capacity for two andthree people. An additional three people can be accommodated
using sofa beds in the living room.)
Number of rooms in Nonoaoyama Building· Housing units for the elderly (49 units in total)· Maximum number of children accepted at childcare facilities(23 children in total)

Social benefit

Health Management / Occupational Safety and HealthTokyo Square Garden: 29,611 million yen (fully allocated)Tokyo Tatemono Nihonbashi Building: 10,000 million yen(fully allocated)

Environmental Improvement Impact

External evaluation and Certification for Green Building

Environmental
Improvement Impact

Promoting a Decarbonized Society

Reporting on Sustainability Bond for Retail Investors

Sustainability Finance Reporting

Third-Party Assurance

95

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Reporting on Sustainability FinanceManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Sustainability Finance Reporting

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Green Loan Reporting
Funding Allocation Status(as of December 31, 2022)

Environment

External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

Validenvironmental
certifications

Certifications
pending

None

Certifications
obtained

Tokyo Tatemono Sendai Building· DBJ Green Building Certification: 4 stars
T-LOGI Narashino· CASBEE-Buildings (New Construction): Class A· BELS Certification: 5 stars· ZEB Certification: ZEB

Energy consumption/CO2 emissions/
Water consumption

Funding Allocation Status(as of December 31, 2022)
Environmental
Improvement Impact

Promoting a Decarbonized Society

Environmental Improvement
ImpactEnvironmental Management

Tokyo Tatemono Sendai Building: 7,000 million yen(fully allocated)
T-LOGI Narashino: 3,000 million yen (fully allocated)

Validenvironmental
certifications

Fully allocatedCertifications
pending

None

Certifications
obtained

Tokyo Tatemono Sendai Building· DBJ Green Building Certification: 4 stars

Energy consumption/CO2 emissions/
Water consumption

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35

SocialRespect for Human Rights
Supply Chain Management

Funding Allocation Status(as of December 31, 2022)

Improving Quality and Customer Satisfaction

Contributing to Our Communities
Human Resource Investment and Development
Health Management / Occupational Safety and HealthDiversity & Inclusion

Environmental
Improvement Impact

Revitalizing and Utilizing Real Estate StockValidenvironmental
certifications

Fully allocatedCertifications
pending

None

Certifications
obtained

Tokyo Tatemono Sendai Building· DBJ Green Building Certification: 4 stars

Energy consumption/CO2 emissions/
Water consumption

Energy consumption/CO2 emissions: Promoting a Decarbonized Society P.26
Water consumption: Water Resources P.35

GovernanceCorporate GovernanceRisk Management
Compliance

Data
Sustainability Finance Reporting

Third-Party Assurance

96

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Corporate Philosophy, Corporate Data, Financial
Highlights, Editorial Policy

Third-Party AssuranceManagement
Message from the President and CEO
Materiality of the Tokyo Tatemono Group

Third-Party Assurance

ESG Management
Initiatives and External Evaluation for Sustainability

Feature:Environment
Environmental Management
Promoting a Decarbonized Society
External evaluation and Certification for Green Building
Water Resources
Promoting a Recycling-oriented Society
Biodiversity
Sustainability Finance
Responding to Natural Disasters

SocialRespect for Human Rights

LRQA Independent Assurance Statement

Relating to Tokyo Tatemono Co., Ltd.’s Environmental and Social Data for the
Calendar Year 2022
This Assurance Statement has been prepared for Tokyo Tatemono Co., Ltd. in accordance with our contract.

Terms of Engagement

LRQA Limited (LRQA) was commissioned by Tokyo Tatemono Co., Ltd. (“the Company”) to provide independent
assurance on its environmental and social data (“the report”) within its Sustainability Report 2022 and its corporatewebsite for the calendar year 2022, that is, from 1 January 2022 to 31 December 2022 against the assurance criteria
below to a limited level of assurance and at the materiality of the professional judgement of the verifier using ISAE
3000(Revised) and ISO 14064-3:2019 for greenhouse gas (“GHG”) emissions.
Our assurance engagement covered the Company and its consolidated subsidiaries’ operations and activities inJapan and overseas and specifically the following requirements:• Verifying conformance with the Company’s reporting methodologies• Evaluating the accuracy and reliability of data for the selected indicators listed below:
Environmental indicator[Property subject to reporting obligations under the Act on the
Rational Use of Energy] 2• Energy consumption (in kilo-liter of crude oil equivalent)• Scope 1 GHG emissions (tCO2e)• Scope 2 GHG emissions (Market-based) (tCO2)• The amount of renewable energy generated (kWh)• Tap water consumption volume (m3)• Recycled water amount (m3)• Total waste generated (tonnes)• Recycled waste amount (tonnes)• Ratio of recycled waste (%)
1

Supply Chain Management
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities
Human Resource Investment and Development

Diversity & Inclusion[Long-term owned buildings and commercial facilities where
the Company has energy management authority]• Tap water consumption volume (m3)• Recycled water amount (m3)• Total waste generated (tonnes)• Recycled waste amount (tonnes)• Ratio of recycled waste (%)

GovernanceCorporate GovernanceCompliance

Data

Social indicator• Employment rate of persons with disabilities 4• Rate of health check-ups• Average number of paid leave days taken• Average Ratio of Paid Leave Days Taken• Number of lost time injury• Lost Time Injury Frequency Rate
• Total days lost due to absenteeism• Ratio of days lost due to absence• Turnover rate (Only for Personal
Circumstances) 5
3[The Company (non-consolidated) Office Building Business]• The amount of renewable energy introduction (kWh)• The ratio of renewable energy (%)• The amount of renewable energy generated (kWh)Health Management / Occupational Safety and Health

Risk Management[The Company and its subsidiaries’ operations and activities ]• Scope 1 GHG emissions (tCO2e)• Scope 2 GHG emissions (Market-based) (tCO2)• Scope 3 GHG emissions (Category 1-15) (tCO2e)• The amount of renewable energy introduction (kWh)• The ratio of renewable energy (%)• The amount of renewable energy generated (kWh)1

GHG quantification is subject to inherent uncertainty.
Reporting period of Environment Indicator is from Jan.1 2022 to Dec.31 2022、Only regarding waste data is from Apr.1 2022 to Mar.31 2023
2
The scope covers the real estate owned by the Company and subject to reporting obligations under the Act on the Rational Use of Energy.
3
Reporting period of Social Indicator is from Apr.1 2022 to Mar.31 2023.
4
Employment rate of persons with disabilities is as of 1 June 2022.
5
Reporting period of Turnover rate is from Jan.1 2022 to Dec.31 2022
Page 1 of 3

LRQA’s responsibility is only to the Company. LRQA disclaims any liability or responsibility to others as explained in
the end footnote. The Company’s responsibility is for collecting, aggregating, analysing and presenting all the dataand information within the report and for maintaining effective internal controls over the systems from which thereport is derived. Ultimately, the report has been approved by, and remains the responsibility of the Company.

accreditation or other forms of recognition and ISO/IEC 17021-1 Conformity assessment – Requirements for bodies
providing audit and certification of management systems – Part1: Requirements that are at least as demanding as therequirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants.
LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
This is the only work undertaken by LRQA for Company and as such does not compromise our independence or
impartiality.

SignedLRQA’s Opinion

Dated: 18 June 2023

Based on LRQA’s approach nothing has come to our attention that would cause us to believe that Company has not,in all material respects:• Met the requirements of the criteria listed above• Disclosed accurate and reliable environmental and social data
The opinion expressed is formed on the basis of a limited level of assurance6 and at the materiality of the professional
judgement of the verifier.

Jun Yasumoto
LRQA Lead Verifier
On behalf of LRQA Limited
10th Floor, Queen's Tower A, 2-3-1 Minatomirai, Nishi-ku, Yokohama, JAPANLRQA’s Approach

LRQA reference: YKA00000035

LRQA’s assurance engagements are carried out in accordance with ISAE3000 (Revised) and ISO 14064-3:2019 for GHG
emissions. The following tasks though were undertaken as part of the evidence gathering process for this assurance
engagement:•
Auditing the Company’s data management systems to confirm that there were no significant errors, omissions
or mis-statements in the report. We did this by reviewing the effectiveness of data handling procedures,instructions and systems, including those for internal verification;•
Interviewing with key people responsible for compiling the data and drafting the report;•
Sampling datasets and tracing activity data back to aggregated levels;•
Verifying the historical Environmental / Social data and records for the calendar year 2022; and•Visiting Tokyo Tatemono Nihonbashi TI Building, Yokohama First Building, and T-LOGI Narashino Solar Power
System to assess whether the data management systems have been effectively implemented.

LRQA, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to in this clauseas 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on theinformation or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for theprovision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that
contract.
The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into otherlanguages.
This Assurance Statement is only valid when published with the report to which it refers. It may only be reproduced in its entirety.
Copyright © LRQA, 2023.

Observations

Considering the interest of stakeholders, The amount of renewable energy generation and introduction weredrastically expanded. It is a highly evaluated.
The boundary of verification data is complex and numerous. From the viewpoint of easy understanding forstakeholders, it is recommended to summarize the data into easy-to-understand boundaries such as nonconsolideted and consolidated.
It is recommended the Company will continue to maintain the high level data management systems and to ensure
accurate aggregation and calculation of environmental and social data.

LRQA’s Standards, Competence and Independence

LRQA implements and maintains a comprehensive management system that meets accreditation requirements for
ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in
6

The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance
engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in alimited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement been
performed.
Page 2 of 3

Page 3 of 3

Sustainability Finance Reporting

Third-Party Assurance

97

TOKYO TATEMONO GROUP SUSTAINABILITY REPORT 2023

Contact:
Sustainability Management Department
Tokyo Tatemono Co., Ltd.
TEL: +81 (0) 3-3274-0148

Published: June 2023