Environment

Under the Tokyo Tatemono Group Environmental Policy, we contribute to the development of a sustainable society through environmentally conscious business activities. We have identified promoting both a decarbonized society and a recycling-oriented society as environmental material issues and, by working to resolve these issues through our business, aim to realize coexistence with the earth and the environment, a value we share with society.

Promoting a decarbonized society is a social issue that calls for global action. The real estate industry must also strive to reduce greenhouse gas (GHG) emissions derived from real estate holdings and business activities. The Tokyo Tatemono Group further believes that the increasing intensity and frequency of storms, flooding, and other natural disasters owing to GHG emissions could have a 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 the promotion of a decarbonized society as a material issue. In order to address this issue through our business, we have set KPIs and targets related to the promotion of a decarbonized society and are accelerating initiatives to reduce GHG emissions. Regarding GHG emissions reduction targets, 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. In addition, based on these targets, we put in place a roadmap (action plan) for reducing GHG emissions in the Group toward FY2050.

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 real estate, which is a foundation of our lives.

The Tokyo Tatemono Group believes that improving resilience against disasters in ordinary times and providing safety and security to our customers and other stakeholders are important responsibilities.

We have identified contributing to a safe and secure society as a material issue for the Group and are promoting various initiatives through our business. As part of these efforts, we will continue to further strengthen our measures to address natural disasters.

The Tokyo Tatemono Group is working toward a vision of creating a pleasant city and life with greenery, a commitment that is included in our Group Environmental Policy. As real estate development is closely tied to the natural environment and local ecosystems, we strive to understand the direct and indirect impacts it may have and take appropriate measures in response. We are striving to create a rich and comfortable environment that takes biodiversity into consideration, and our efforts include maximizing the power of greenery by transplanting trees on our properties in line with their development plans, surveying local vegetation and the distribution of organisms, and selecting tree species to plant.

We have established environmental guidelines for both our Commercial Properties Business and Residential Business. Both guidelines establish policies that include mitigating the heat island effect through greening of buildings and sites, preserving biodiversity and ecosystems including links to the surrounding greenery, and communicating with tenants and residents as well as the surrounding area through greenery. In addition, we have acquired third-party certifications for the preservation of existing trees and the conservation of ecosystems such as ABINC Certification^*1 and SEGES^*2 for our properties that are capable of implementing initiatives of a certain scale.

• A system for evaluating and certifying biodiversity conservation efforts in the use of land for office buildings and residential buildings. It is based on two evaluation standards, the Association for Business Innovation in harmony with Nature and Community® Certification Guideline and the Land Use Score Card®, both developed by the Japan Business Initiative for Biodiversity (JBIB).

• An evaluation system developed by the Urban Greenery Research Institute that visualizes the social and environmental value of green spaces.

As water shortages become even more severe worldwide, both developed countries and the global community face demands for efficient water use and continuous improvement.

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 one of our material issues. To address this challenge through our business activities, we have established KPIs and targets related to water resources. We work to conserve water resources by reducing environmental impact and engaging in resource-saving activities such as water conservation and the reuse of rainwater and miscellaneous wastewater (gray water) whenever possible.

As pollution of the air, soil, and water caused by waste and hazardous substances and the depletion of natural resources are issues shared by all of society, there is an increasing need to reduce the generation of waste and hazardous substances in business activities and to use natural resources effectively.

The Tokyo Tatemono Group Environmental Policy includes a call for resource-saving activities that are kind to the Earth. In addition, we have identified Promoting a Recycling-oriented Society as one of our material issues, and have also established KPIs and targets related to waste in order to address the resolution of this issue through our business activities. We are striving to reduce our environmental impact through our businesses and contribute to creating a recycling-oriented society. In the development of buildings, we incorporate life-cycle assessments into project concepts and designs, and in operations and management, we work to reduce waste and minimize the generation of hazardous substances through proper practices.

The Tokyo Tatemono Group recognizes that, to meet the expectations and demands of our customers, investors, and other stakeholders, it is essential that we develop and operate real estate while taking into consideration the reduction of our environmental impact as well as the comfort and diversity of our customers. It is also key that we provide open disclosure of our performance and initiatives related to such real estate. Accordingly, the Tokyo Tatemono Group has identified the promotion of a decarbonized society as one of its material issues, and has established KPIs and targets for promoting the development of ZEB and ZEH as well as acquiring Green Building Certifications in order to address this issue through its business activities.

In addition to new buildings, we are actively obtaining external green building evaluations and certifications for our existing office buildings and for-rent condominiums.

Sustainability finance refers to bonds and loans to raise funds specifically for addressing environmental issues such as climate change, as well as social issues including poverty, health, and economic disparity with the aim of transitioning to a more sustainable society.

The Tokyo Tatemono Group promotes urban development that contributes to solving social issues. We strive to improve the attractiveness of the areas in which we develop and to increase the value of our entire asset portfolio. We aim to channel these efforts toward our sustainable growth as a company.

We will establish the cycle of allocating the funds we raise to projects that help solve social issues or have environmental improvement effects. By leveraging our businesses to address social issues and achieve higher levels of growth as a company, we will contribute to the advancement of a decarbonized society and the realization of a sustainable society.

Tokyo Tatemono has put in place several finance frameworks to guide its financing. These frameworks apply the four elements 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.