Materiality / KPIs and Targets

Materiality

Material Issue KPIs and Targets

Stakeholder Engagement

Materiality

In 2019, the Tokyo Tatemono Group determined a number of material issues for the social issues identified in consideration of international issues (the SDGs) and domestic or industry-specific issues, evaluating their importance in terms of the magnitude of social needs and their affinity with our business.

Since 2020, we have been revising these material issues in order to achieve the Group long-term vision. This has been in response to major changes in the social landscape and people's values, such as with the COVID-19 pandemic. In the higher level realization of solving social issues and growing as a company set forth in the Group's long-term vision, we have identified 14 material issues from the perspective of both social value creation and value creation platforms, with an awareness of our shared values with society that we realize through our business.

Current Materiality Identification Process

The Tokyo Tatemono Group will seek to develop solutions to these material issues through its business to maximize our positive impact (opportunities) on society while minimizing our negative impact (risks). In this way, we will help bring about a sustainable society while growing as a company.

Materiality of the Tokyo Tatemono Group

	Material issues	Shared values with society
Social value creation	Strengthening Tokyo's competitiveness as an international city	Creating value of place and value of experience
	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
	Social implementation of technology
	Revitalizing and utilizing real estate stock
	Promoting a decarbonized society	Coexistence with the Earth and the environment
	Promoting a recycling-oriented society	Coexistence with the Earth and the environment

Value creation platform	Improve employee growth and job satisfaction	Value-creating talent
	Diversity & Inclusion	Value-creating talent
	Advancement of governance	Realizing sustainability management
	Strengthen risk management framework	Realizing sustainability management

The Tokyo Tatemono Group believes that promoting sustainability will help to maximize the medium- and long-term benefits for our stakeholders. We have set KPI and targets based on environmental and social material issues.

Regarding the environment, based on our material issue, promoting a decarbonized society, by fiscal 2030, we aim to reduce Scope 1 and 2 CO2 Emissions by 46.2% and Scope 3 emissions by 40%, compared to fiscal 2019 levels, and aim for net zero CO2 emissions by fiscal 2050. We have obtained SBT (Science Based Targets) certification for our fiscal 2030 target as being aligned with the 1.5°C pathway, which aims to limit the global average temperature rise to 1.5°C above pre-industrial levels. We have also set and are promoting goals related to the development of zero energy buildings and homes (ZEB and ZEH), shift to renewable energy, and acquisition of green building certifications as process goals to achieve medium- and long-term targets to reduce greenhouse gas emissions. We have also set targets based on the material issue, promoting a recycling-oriented society, and we have incorporated action plans into the business plans of each business division or business department to achieve these targets.

Regarding society, we have set targets based on the material issues of improving employee growth and job satisfaction and diversity and inclusion.

We have developed a PDCA cycle by monitoring the progress toward the targets at the Sustainability Committee.

In addition, the Board of Directors monitors and oversees the progress toward the targets.

Material Issue KPIs and Targets

Environmental

Items	Scope of coverage	KPI and targets		Track records			Details Sustainability Report 2025
Items	Scope of coverage	KPI and targets		2022	2023	2024	Details Sustainability Report 2025
Promoting a decarbonized society
Reduction in greenhouse gas emissions	All businesses*¹	【Scope 1, 2 and 3】 Net zero CO₂ emissions by FY2050	CO₂ emissions [Unit: t-CO₂]	1,015,172	984,407	1,406,137	P.30
		【Scope 1 and 2】 46.2% reduction in CO₂ emissions compared to FY2019 levels by FY2030*³	CO₂ emissions [Unit: t-CO₂]	72,213	44,283	43,450
			Reduction rate compared to FY2019 [Unit：%]	15.9	48.4	49.4
		【Scope 3²】 40% reduction in CO₂ emissions compared to FY2019 levels by FY2030³	CO₂ emissions [Unit: t-CO₂]	596,335	621,989	831,460
			Reduction rate compared to FY2019 [Unit：%]	1.8	-2.4	-36.9
Promotion of zero-energy buildings and homes*⁴	Commercial Properties Business	Develop ZEB for, in principle, all new office buildings and logistics properties*⁵	Percentage of ZEB developments [Unit：%]	- (Not applicable)	- (Not applicable)	- (Not applicable)	P.31
Promotion of zero-energy buildings and homes*⁴	Residential Business	Develop ZEH for, in principle, all new condominiums for sale or rent*⁶	Percentage of ZEH developments [Unit：％]	- (Not applicable)	100.0 (Applies to 1 property)	100.0 (Applies to 8 property)	P.31
Shift to renewable energy	All businesses*¹	Procure 100% of electricity consumed in business activities from renewable energy sources by FY2050	Percentage of electricity from renewable sources [Unit: %]	11.2	31.1	43.0	P.30
	Commercial Properties Business	Procure 100% of electricity consumed at owned properties from renewable energy sources by FY2030		16.3*⁷	42.1*⁷	54.5
	Commercial Properties Business	Procure at least 50% of electricity consumed at owned properties from renewable energy sources by FY2024		16.3*⁷	42.1*⁷	54.5
Acquisition of Green Building Certification*⁸	Commercial Properties Business Residential Business	Acquire Green Building Certification for, in principle, all new office buildings, logistics properties, and condominiums for rent*⁹	Percentage of green building certifications acquired [Unit：％]	- (Not applicable)	- (Not applicable)	- (Not applicable)	P.45
Promoting a recycling-oriented society
Reduction of waste emissions	Long-term buildings*¹⁰	By FY2030, 20% reduction in the rate of waste emissions intensity compared with FY2019*¹¹	Waste emissions intensity*¹² [Unit：t/Thousand m²]	5.3	5.3	5.3	P.42
Reduction of waste emissions	Long-term buildings*¹⁰		Reduction rate compared to FY2019*¹² [Unit：%]	28.4	28.4	28.4	P.42
Waste recycling promotion	Long-term buildings*¹⁰	By FY2030, achieve a waste recycling rate of 90%	Waste recycling rate*¹² [Unit: %]	60.9	58.4	60.8	P.42
Reduction of water use	Long-term buildings*¹³	Reduction of water use intensity compared to the previous year*¹⁴	Water use intensity (YoY change) [Unit: m³/m²]	0.76 (0.08)	0.79 (0.03*⁷)	0.84 (0.05)	P.40
Promotion of the use of recycled water	Office buildings with total floor area exceeding 30,000m²	By FY2030, install gray water*¹⁵ treatment facilities at, in principle, all new office buildings with a total floor area of more than 30,000 m²	Percentage of properties with gray water facilities [Unit：％]	- (Not applicable)	- (Not applicable)	- (Not applicable)	P.41
Promoting a decarbonized society / Promoting a recycling-oriented society
Promotion of the use of wood materials	Long-term buildings, condominiums for sale 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	Percentage of properties using domestic / certified timber [Unit：%]	13.0*⁷ (Applies to 23 properties)	7.1*⁷ (Applies to 14 properties)	23.8 (Applies to 21 properties)	P.33
Promotion of the use of wood materials	Condominiums for sale or rent	By FY2026, develop for-sale and for-rent condominiums that use timber for major structural components ^*16	-			No developed properties	P.33
Collaborating and Co-creating with Customers	Long-term buildings	Communicate with tenants about sustainability at least 4 times a year	-	Achieved	Achieved	Achieved	P.34 P.42
Collaborating and Co-creating with Customers	Condominiums for sale or rent	Communicate with residents and plan and implement sustainability measures	-	Achieved	Achieved	Achieved	P.34 P.42

Applies to the Tokyo Tatemono Group.
Applies to Scope 3 categories 11 and 13.
In FY2019, CO₂ emissions for Scope 1 and 2 were 85,870t-CO₂ and Scope 3 (categories 11 and 13) were 607,511t-CO₂.
In addition to "ZEB" and "ZEH(-M)", includes Nearly ZEB, ZEB Ready, ZEB Oriented, Nearly ZEH(-M), ZEH(-M) Ready, and ZEH(-M) Oriented.
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.
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.
Following a close examination of data, figures have been.
Mainly refers to, but is not limited to, DBJ Green Building certification, CASBEE building and BELS (Building Energy Saving Performance Labeling System) certification.
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.
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.
In FY2019, waste emissions intensity of production were 7.4 t/thousand m². Waste emission intensity per 1,000 m² of floor area.
From FY2024 the data collection period was changed to January to December. (Until FY2023 it was April to March.)
Applies to the main long-term buildings and commercial facilities for which we have substantial energy management rights.
Water use intensity per m² of shared floor area.
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.
This KPI/Target was newly set in 2024.

Social

Items	Scope of coverage	KPI and targets		Track records			Details Sustainability Report 2025
Items	Scope of coverage	KPI and targets		2022	2023	2024	Details Sustainability Report 2025
Improve employee growth and job satisfaction
Promotion of skills development	Tokyo Tatemono	Average training time per employee: 15 hours or more each fiscal year	[Unit: Hours]	15.8	15.2	16.0	P.70
Promotion of skills development	Tokyo Tatemono	Career training participation rate: 100% each fiscal year	[Unit: %]	100	100	100	P.70
Promotion of health management	Tokyo Tatemono	Health check-up rate*¹: 100% each fiscal year	[Unit: %]	100	100	100	P.73
	Tokyo Tatemono	Follow-up test rate*¹: 100% each fiscal year	[Unit: %]	98.0	81.5	97.5
	Tokyo Tatemono	Smoking rate*²: 12% or less each fiscal year	[Unit: %]	12.1	13.1	13.1
	Tokyo Tatemono	Percentage of employees maintaining an appropriate weight *¹: 75% or more by FY2028	[Unit: %]	72.0	72.9	74.6
Diversity & Inclusion
Respect for Human Rights	Tokyo Tatemono Group	Dissemination of the Human Rights Policy: Deployment to and compliance by group companies	-	Implemented	Implemented	Implemented	P.50
Work-life balance	Tokyo Tatemono	Average annual paid leave utilization rate: 70% or more each fiscal year	[Unit: %]	67.8	72.2	68.0	P.77
Work-life balance	Tokyo Tatemono	Ratio of male employees taking parental leave*¹: 30% or more by FY2025	[Unit: %]	50.0	78.1	84.2	P.78
Promotion of Diversity in Our Workforce	Tokyo Tatemono	Ratio of women in management positions: 10% or more by FY2030	[Unit: %]	7.2	9.4	12.1	P.79
Promotion of Diversity in Our Workforce	Tokyo Tatemono	Employment rate of people with disabilities*³: Over the legal employment rate each fiscal year (2.3% or more until March 2024, 2.5% or more from April 2024 to June 2026, 2.7% after July 2026)	[Unit: %]	2.33	2.53	2.90	P.79

Totaled from April of each year to March of the following year.
At a specific point in time between April of each year and the following March.
As of June 1 of each year.

Data

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, executives, employees, shareholders, investors, and business partners. We believe that building long-term relationships of trust with these stakeholders is essential to both our management and business activities. By engaging with our stakeholders and incorporating their opinions, expectations, and other input in various ways, we integrate their voices into the way the Group operates. Leveraging the continued trust of our diverse stakeholders enables our efforts to create social value and establish our value creation platform. To ensure the effectiveness of engagement with every stakeholder, we will review our approach and other aspects as necessary.

Stance on and Approach to Dialogue with Our Core Stakeholders

Stakeholders	Stance on dialogue	Approach to dialogue
Customers Building tenants, home buyers, users of services	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.	Customer satisfaction surveys Brillia Owners Hotline (contact for home buyers) Various questionnaires Online inquiry forms, etc.
Local community Local community around properties, local governments, NGOs, NPOs, educational institutions, etc.	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 Volunteer activities, including clean-up activities Participation in local events and festivals, and support for education and the arts Post-disaster reconstruction support, etc.
Executives and employees All personnel working for the Group	We work to create a satisfying workplace in which employees can experience personal growth. We strive to develop people who are trusted and capable of building the future.	Various training and reward systems Regular personnel interviews Dialogue with labor unions and co-hosting of events Individual consultation on child-rearing and nursing care support. Compliance Surveys, etc.
Shareholders and investors
Those who support the Group's business by providing capital or by participating in management through the exercise of voting rights, among others	We aim to build long-term fiduciary relationships with our shareholders and investors and earn appropriate recognition through sincere and fair information disclosure and active communication.	IR information on our corporate website, Integrated Report General Meeting of Shareholders and Financial Results Briefing Seminars for private investors IR meetings (Japan/overseas), etc.
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 to build even better relationships with these partners.	Verifying any signs of mistrust using business partner check sheets Regular meetings Dissemination of our Human Rights Policy Calls for understanding of and compliance with Sustainable Procurement Standards Dialogue through questionnaires, interviews, etc.

Sustainability

Materiality / KPIs and Targets

Materiality

Current Materiality Identification Process

Materiality of the Tokyo Tatemono Group

Material Issue KPIs and Targets

Stakeholder Engagement

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