Sustainability Policy / Sustainability Promotion System Materiality (Important Issues)

Materiality

SHR believes that sustainable growth in our business activities is built on a solid foundation of a sustainable society, and recognizes that in order to continue providing "Prime Properties", which SHR focuses on as an investment strategy, it is necessary to carry out initiatives based on the guidelines of solving issues to build a sustainable society through business activities. Based on this recognition, SHR has identified eight materialities (important issues) and set targets (KPIs) as indicators to resolve each of them. In light of the SDGs adopted by the United Nations in 2015, we will pursue mutual sustainability of both society and SHR by promoting efforts to resolve these material issues.

Materiality of SHR

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Materiality and Target（KPI）				Related SDGs
Environment	Promoting Response to Climate Change
	Target (KPI)	Reduce GHG emissions Medium term target (by FY 2030): Reduce 42% of Scope 1 and Scope 2 emissions of portfolio compared to FY 2021 Long term target (by FY 2050): Achieve net zero Calculate and reduce Scope 3 emissions	Page linked
		Reduce 10% energy consumption intensity of portfolio by FY 2028 (Note) compared to FY 2018
		Achieve 25% or more of the portfolio with green lease agreement by FY 2030	Page linked
	Coexistence of Humankind and Nature and Activities for the Resources Environment
	Target (KPI)	Advance greenification and respect biodiversity	Page linked
		No increasing waste emission intensity of portfolio compared to FY 2018	Page linked
		No increasing water use intensity of portfolio compared to FY 2018
	Investing in Real Estate with Excellent Environmental Performance
	Target (KPI)	Maintain 70% or more of the portfolio with green certification	Page linked
		Promote ZEH initiatives
Social	Providing Residents and Tenants with Secure and Comfortable Space that Offers Peace of Mind
	Target (KPI)	Periodic surveys on resident and tenant satisfaction and promote initiatives to improve satisfaction	Page linked
		Promote certification acquisition for comfort and health of buildings (spaces)
		Periodic assessment of earthquake risk and flood damage risk and the implementation of measures to reduce such risks
		Periodic assessment of initiatives toward ESG in the supply chain and the promotion of collaborative initiatives
	Contributing to Society
	Target (KPI)	As a member of society, contributing to greater vitality in the community and countermeasures aimed at preventing damage from natural and other disasters	Page linked
		By FY 2023, "Sekisui House Matching Program" (a joint donation system for employees and the company) participation rate: 45%
	Creating a Rewarding Workplace
	Target (KPI)	By FY 2023, Percentage of female managers: 7% Average monthly work hours per person: 162 hours Take-up rate for male childcare leave: 100% Annual paid leave take-up rate: 70%	Page linked
		Number of annual external training courses attended per person: twice	Page linked
		Annual internal training participation rate: 100%
		Practicing Sekisui House Group Human Rights Policy	Page linked
Governance	Strengthening Corporate Governance System
	Target (KPI)	Enhance effectiveness of board of directors of SHR and SHAM Conducting effectiveness evaluation questionnaire（once/year）	Page linked
		Penetration of compliance Conducting compliance training by external experts, etc.（four times/year）participation rate: 100％	Page linked
		Strengthening internal controls structure Conducting internal audit（twice/year）	Page linked
		Strengthen risk management system Conducting risk management meeting（twice/year）	Page linked
	Information Disclosure and Engagement with Stakeholders
	Target (KPI)	Timely and appropriate disclosure of information and enhanced utility of disclosures	Page linked
		Building relationships of trust with stakeholders