Based on our corporate philosophy of "Trust beyond the era," Tokyo Tatemono is striving to build optimal corporate gover- nance, 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 dis- close information for shareholders and other stakeholders to understand the company's business activities accurately.
We have identified the advancement of governance as a material issue for the Group that we must address as we pursue our long-term vision. We are further strengthening the governance framework to achieve this, striving to improve profitability and advancing measures to ensure objectivity.
Tokyo Tatemono has selected a Company with Audit and Supervisory Board format for our organization. We have also established a Board of Directors and an Audit and Supervisory Board, and a Nomination and Remuneration Advisory Commit- tee 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 Supervi- sory 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. In December 2022, we made organi- zational changes to further strengthen risk management and internal control in the Group, establishing the Risk Management Committee and the Internal Control Committee.
In our Group governance, 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 head office functions and clarify our policy on involvement with Group companies.