Takara Leben Groupʼs Sustainability Strategies

Sustainability Basic Policy
The Takara Leben Group's corporate vision is to “THINK HAPPINESS AND MAKE THE HAPPINESS” andcontribute to solving social issues and achieving the SDGs by engaging in sustainability activities through ourbusiness, such as the supply of housing and the introduction of natural energy, in order to gain the trust ofdifferent stakeholders and society and achieve lasting development.

Customers
Shareholdolders
and investstorsComp
mpetitors

Local communities,NPOOs, and NGOsMediaaExecutives
and employeesGovernments
Trading partners

Sustainability Promotion System
The Group has established a sustainability promotion system based on the recognition that “addressing issues
surrounding sustainability, including consideration of climate change and other global environmental issues,
respect for human rights, consideration of employee health and the working environment and fair andappropriate treatment of employees, fair and appropriate transactions with business partners, and risk
management in the event of natural disasters are important management issues.”
The Sustainability Committee, chaired by the Representative Director and composed of internal directors,presidents and division

heads of group companies, is responsible for promoting ESG strategies, determining

policies and measures concerning sustainability, examining and promoting materiality issues, reviewing
progress, and deliberating on improvement plans.
Board of Directors
Reporting

Supervision

Sustainability Committee
Matters related to the revision or abolition of sustainability-related policies and material issues (materiality)
Determination and promotion of measures, review of progress, and deliberation of improvement plans

Members
Chair: Representative Director and President (Chief Executive Officer)
Vice Chair: Director in charge of Sustainability (Executive Officer)
Permanent members : Directors
Other presidents and department heads of the company and Group companies appointed by the chairperson

Secretariat
Group Corporate Planning Department

Sustainability Promotion Section,
Group Corporate Planning Department

Coordination andimplementation

Each department and Group company

Direction formulation, policy formulation,
policy implementation and awareness-raising,promotion management

Communication

Policy implementation, awareness-raising,progress management

Information disclosure

Communication

Stakeholders
Customers

Local communities

Business partners

5Employees

Shareholders
and investors

Sustainability Key Themes and Key Issue Identiﬁcation Process
The Group has identified key sustainability themes and critical issues through the following steps.

Grasp and organize social issues

STEP1

We identiﬁed 31 issues relating to the business environment based on GRI, SDGs, SASB, andother international guidelines, as well as our Group philosophy and Medium-Term Management
Plan and requests from our customers, shareholders and investors, local communities, employees,
and other stakeholders.
Evaluate the signiﬁcance from the Takara Leben Groupʼs perspective

STEP2

We set priorities by sorting out the results of questionnaires completed by all employees,
including the management and oﬃcers, and each issueʼs relation with our business and Groupphilosophy.
Evaluate the importance from our stakeholdersʼ perspectives

STEP3

We set priorities by sorting out the results of questionnaires completed by customers,
shareholders and investors, and business partners and the requirements based on internationalguidelines such as the GRI and the SDGs.
Identify key issues

STEP4

The key issues were identiﬁed after the priorities were reconsidered from the perspectives of theTakara Leben Group and our stakeholders, and reviewed by the management.
Policy setting for key sustainability themes

STEP5Policies were set for the four key sustainability themes.

The 15 Issues Identiﬁed
Hig
High

Priorities for stakeholders

1 Support fordiversifying
lifestyles andglobalization
2 Responses tochanges tobusiness models
brought by anageing society anddepopulation
3 Urban development
and creating towns
4 Construction andmaintenance of acorporate
governance system

Highg

Priorities for the Takara Leben Group

5 Promoting
compliance
6 Employee healthmanagement
7 Encouraging thestrong roles ofdiverse humanresources

68 Providing safe,
secure products
and services
9 Improving customer
satisfaction
10 Improving value ofbuildings
11 Providing buildings
and spaces thatconsider theenvironment andculture
12 Responses to global
warming
13 Initiatives forrenewable energy
14 Eﬀective use ofresources
15 Responses todisasters

Key Sustainability Themes

Creating Lifestyles
with Value
We contribute toimproving the richness ofpeople's lifestyles byreating new value.

Policies

Related SDGs

● Provide products and services that

respond to changing social issues andneeds.
● Provide lifestyles that harmonize

residents and surrounding
environments, such as the LEBEN or
NEBEL brands.

● Contributing to the revitalization ofregional areas through our regional
city revitalization business, whichconnects urban and regional areas.

Forming Communities
We form communities withstakeholders— such as local
communities, trading partners,
and employees—and aim for
growth together.

● Improve our ability to respond to risk

through thorough risk assessment andmanagement.
● Provide opportunities andenvironments where a diverse range ofpeople can work energetically.

Key Issues● Support for diversifying

lifestyles and globalization● Responses to changes tobusiness models brought byan ageing society anddepopulation● Urban development andcreating towns● Construction and maintenanceof a corporate governancesystem● Promoting compliance● Employee health management● Corporate activities that can respondto social needs with an emphasis on
dialogues with our stakeholders.

● Improve customer satisfaction levels

Providing Comfortable
Spaces of High Quality
We support the comfortable andsafe living of our customers byproviding products bringing
great satisfaction to ourcustomers.

Developing
Environments andCultures
We contribute to a sustainable
society by actively working on
environmental issues, and at thesame time, contribute toimproving quality of life byproviding opportunities formental activities such as learningand practicing the arts.

through the use of our proprietary
Service Quality Management System(SQMS®).

● Encouraging employment ofdiverse human resources● Providing safe, secure

products and services● Create housing that combines bothdesign and habitability, pursuing theperformance of housing.

● Improving customer

satisfaction● Improve building value through regular

repairs and renovations to improvebuilding comfort, functionality, andsafety● Reduce greenhouse gas emissions

through supplying housing with highenvironmental performance and ourrenewable energy power generation
business.
● Provide seismic-resistant andfire-resistant housing that canwithstand natural disasters.

● Improving value of buildings● Providing buildings andspaces that consider theenvironment and culture● Responses to global warming● Initiatives for renewable energy● Effective use of resources● Provide opportunities for culturalactivities to our stakeholders.

7● Responses to disasters

Targets and Achievements
Sustainability KeyThemes

Creating
Lifestyles withValue

Forming
Communities

Providing
Comfortable
Spaces of High
QualityFY Mar. 2022

KPIs

Targets

FY Mar. 2023
Results

Targets

Propose new lifestyle services

5 projects

15 projects

5 projects

Supply of new condominiums for sale overseas

3 condos*1

6 condos in 2projects

3 projects*1

Supply of NEBEL series condominiums

3 condos

10 condos

3 condos

Redevelopment projects undertaken

2 projects

1 project*2

2 projects

Community sponsorships

101410Conduct the board eﬀectiveness assessments〇*3

Enhancement and strengthening of corporate governance system〇*4

Consideration of introducing the clawback provisions〇*5

Implement anti-corruption education and training△*6

Promote understanding of human rights issues among oﬃcers and employees△*6

Number of cases of adverse treatment

000Survey to conﬁrm the recognition rate of the whistle-blowing system〇*7

Percentage of employees receiving health checkups

100%

95.6%

100%

Stress check examination rate

100%

85.0%

100%

Percentage of employees taking paid leave

70%

60.1%

70%

Percentage of employees with disabilities

2.30%

2.7%

2.30%

Percentage of female managers

9.5%*1

7.34%

9.5%*1

Percentage of employees returning to work after maternity or
parental leave

100%

100%

100%

Training hours per employee

24 hours

17.9 hours

24 hours

Satisfaction rate of sales staﬀ survey

90%

89.3%

90%

Number of nonconformities related to business processes andquality standards

10 or less6

10 or less

Implementation of preventive action sharing meetings

5 times or more

4 times

5 times ormore

Training of SQMS® masters

2 or more persons

4 persons

2 or more
persons

Acquisition rate of housing performance evaluation
certiﬁcates

100%

100%

100%

Rate of accidents and lost time injuries (*covered: employees)

0%

0%

0%

Number of lost workday injuries (*covered: employees)

000〇

－*8

Implementation of customer satisfaction surveys
Safety meetings

once a year

not held*9

once a year

Special patrols (safety checks)

4 times a year

3 times*10

4 times a year

Number of safety and health training sessions (*training
targets: employees)

twice a year

twice a year

twice a year

Results of supplier surveys

A-rank acquisition
rate 90%

95.59%－*8

Rate of accidents and lost time (*target: suppliers)

1.83% or less

0%

1.83% or less8

Sustainability KeyThemes

FY Mar. 2022

KPIs

Targets

FY Mar. 2023
Results

Establishment of environmental policy〇Acquisition and disclosure of CO2 emissions〇

Setting CO2 emission reduction targets△*11

Percentage of houses certiﬁed for energy eﬃciency rating(Flat 35)

Targets－*8

100% of detachedhouses

100%

100%

575111Acquisition of CASBEE certiﬁcation with A rank or higher

111

Newly added generation capacity of mega-solar power plant

20MW

41MW*1220MW*13Total power generation

360MW*1310MW

360MW*1

Sponsorship for culture fostering events
Developing
Environments andAcquisition of ZEH condominium certiﬁcation
Cultures

Maximizing eﬀective use of resources and water－*14

Formulation of manuals for BCP measures△*15*1 Set as a mid-term target for FY March 31, 2025.
*2 Number of new projects participated in. In addition, nine projects are under construction or being promoted.
*3 Analysis based on anonymous questionnaires was conducted by an outside consulting firm, targeting all directors and corporate
auditors, including outside directors.
*4 Group company information-sharing meetings were held to share compliance-related issues at each company and to alert
employees to such issues. Reviewed rules and regulations, shared compliance training, and deployed it company-wide.
*5 As a result of review by the Compensation Committee, the implementation was postponed. Continued consideration.
*6 Implemented through compliance training.
*7 Conducted interviews with each Group company, and for companies with insufficient recognition rate, reorganized displaying
posters in the office and distributed portable cards to employees to enhance the recognition.
*8 No plan to implement in FY March 31, 2023.
*9 Not implemented due to measures to prevent new COVID-19 infection. Awareness was raised through education and the slogan
displayed at each site during the Occupational Health and Safety Preparation Month.
*10 The plan was reviewed due to a change in the internal organization.
*11 Under consideration by the Sustainability Committee established in April 2022.
*12 Newly added wind power generation was 2MW.
*13 Revised KPI to “Newly added generation capacity of power facilities using renewable energy sources.”*14 Internal system is being developed for quantitative data acquisition, and KPI was revised to “quantitative data acquisition andsetting reduction targets.”*15 The manuals are being formulated by the Risk Management Promotion Team.

9GRESB
For the third consecutive year, Takara Leben participated in the 2021 GRESB* Infrastructure Asset Evaluation. It received
an overall score higher than last yearʼs as a result of particularly high recognition of the solar power generation facilities
owned by Takara Leben Infrastructure Fund and our various ESG-related policies and target setting, as well as disclosureof our ESG initiatives. We also received a 4-star rating in the GRESB Rating, which is a five-level rating based on global
relative rankings, surpassing last yearʼs rating.
Furthermore, Takara Leben Infrastructure Fund participated in the GRESB Infrastructure Fund Evaluation for the third
consecutive year and was awarded the highest “5-Star" rating in the "GRESB Rating" as well as being selected as an "Asia
Sector Leader."In addition, Takara Leben Real Estate Investment Corporation received a "Green Star" rating in the 2021 GRESB Real
Estate Assessment for the third consecutive year, which indicates that the company received high marks for bothmanagement and performance with respect to environmental, social, and governance (ESG) considerations.
* The name of an annual benchmark assessment to measure the ESG considerations of companies and funds that own and manage real assets(real estate and infrastructure) and the organization that administers the assessment, created in 2009 by a group of major European pension
funds that spearheaded the Principles for Responsible Investment (PRI).

Takara Leben Signs UN Global Compact
In 2020, the Takara Leben Group signed the United Nations Global Compact promoted by the UN and registeredas a participating company.
We will continue our efforts to achieve the Ten Principles of the UN Global Compact in four areas: humanrights, labor, environment, and anti-corruption.
* The United Nations Global Compact was proposed by then UN Secretary-General Kofi Annan in 1999 at the World E conomicForum in Davos and was launched in 2000.

10The Ten Principles of the UN Global Compact
1 Businesses should support and respect the protection of internationally proclaimed
human rights; andPrinciple 2 make sure that they are not complicit in human rights abuses.
Principle

Human Rights

3 Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;
Principle 4 the elimination of all forms of forced and compulsory labour;
Principle 5 the effective abolition of child labour; andPrinciple 6 the elimination of discrimination in respect of employment and occupation.
Principle

Labour7 Businesses should support a precautionary approach to environmental challenges;
8 undertake initiatives to promote greater environmental responsibility; andPrinciple 9 encourage the development and diffusion of environmentally friendly technologies.
Principle

Environment

Anti-Corruption

Principle

Principle10Businesses should work against corruption in all its forms, including extortion and bribery.

Message from the Executive Oﬃcer in charge of Sustainability
As a society, we have been changing the way we live even more drasticallythan we did last year, due to the increasing seriousness of climate change
and the outbreak of new COVID-19 infections. I strongly feel that many ofour stakeholders are calling for us to change our corporate stance to beflexible and responsive to these changes and to carry out our tasks in asustainable manner.
We are in the process of promoting ESG management, which is one of thepillars of our new Mid-term Business Plan, announced in May 2021, bydividing it into four key sustainability themes and 15 key issues linked tothe SDGs, setting 43 KPIs for each and promoting them throughout theGroup. In fiscal year 2021, we promoted initiatives for local communities,
acquisition of energy data such as CO 2 emissions, and certification of ZEH

condominiums while enhancing and strengthening our corporate governancesystem and examining effective methods and target values for setting CO 2emission reduction targets. As the results of these issues accumulate, eachKazuyuki Shimizu
Director, COO and Vice President
Executive Oﬃceremployeeʼs awareness of ESG issues rises, and a virtuous cycle is being
created within the company in which each employee is encouraged toengage in ESG management.
We will transition to a holding company structure on October 1, 2022, but
we will continue to take pride in being “a company that makes people andthe Earth happy in the future,” and we will work positively to address social
issues through our main real estate, energy, and asset managementbusinesses, leading to sustainable growth. We look forward to yourcontinued support.

Participation in Industry Groups, Keidanren, and Other Organizations
The Real Estate Companies Association of Japan
National Residential Industries AssociationReal Estate Fair Trade Council
Keidanren (Japan Business Federation)

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