Governance

Corporate Governance

Policy 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, to achieve sustainable growth and increase corporate value over the longer term. In addition, we actively and appropriately disclose information for shareholders and other stakeholders to understand the company’s business activities accurately.
We have also identified the advancement of governance as a material issue for the Group. By further enhancing the governance framework and promoting a range of measures, we are striving to improve profitability and the transparency and objectivity of management.

System

Tokyo Tatemono has selected a Company with Audit and Supervisory Board format as our corporate management system. We have also established a Board of Directors and an Audit and Supervisory Board. 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 with regard to management and also to business execution by directors of the Company.
To heighten the efficiency of Group management and achieve group synergies, we also make a contractual agreement with each Group company based on the Group Business Management Standards. By setting out and informing each company of conditions such as items subject to prior approval and items to be reported to the Company, we are working to reinforce Group governance.

Related Material Issues

  • Advancement of governance
  • Strengthen risk management framework

Risk Management

Policy and Concept

The Tokyo Tatemono Group seeks to appropriately manage risks that affect the Group’s business to achieve stable improvement in corporate value. To this end, having established risk management regulations and created a risk management framework, we are working to ensure ongoing risk monitoring and control.
In developing our risk management framework, we referenced ISO 31000 (international standard for risk management) and JIS Q 31010 (Japanese standard for risk management).
We have also identified the need to strengthen the risk management framework as a material issue for the Group. We will revise our risk management approach with the aim of dealing more effectively and more accurately with changes in social conditions in recent years and with the attendant risks, which are becoming more diverse and complex.

System

We have identified and classified risks that may have a significant impact on the Tokyo Tatemono Group business: business risk, investment risk, financial risk, climate change risk, and internal control risk.
Of these, integrated risk, primarily that arising from business risk or investment risk, is managed by the Corporate Planning Department, which is the division in charge of overall risk management. Internal control risk (internal management risk and compliance risk) and climate change risk are both managed by the Internal Control Committee and Sustainability Committee, which are chaired by the President. The various risks are monitored on a regular basis, and measures taken as needed. The Executive Committee chiefly considers policies related to general business risk, while each department general manager acts as a risk manager in monitoring such risks and taking appropriate measures to prevent, manage, and mitigate risk. Important matters related to each type of risk are reported to the Board of Directors as necessary and audited by the Audit and Supervisory Board.

Related Material Issues

  • Advancement of governance
  • Strengthen risk management framework

Compliance

Policy and Concept

The 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 our pledge to society to promote corporate activities that are committed to unwavering compliance.
Alongside other initiatives, we are using compliance training as we work to build organizational and educational systems that enable our employees to maintain a high level of compliance awareness at all times.

System

The Tokyo Tatemono Group established an Internal Control Committee (Committee Chair: President) as part of our system to promote compliance. This committee discusses internal management risks, including group compliance, fraud, and anti-corruption, overseeing group compliance activities.
The Tokyo Tatemono General Affairs Department supports and guides the compliance-related operations of group companies. This Department also aims to improve compliance functions throughout the Group through collaboration between and among group companies.

Related Material Issues

  • Improve employee growth and job satisfaction
  • Diversity & Inclusion
  • Advancement of governance
  • Strengthen risk management framework

Data Collection