Materiality and KPIs

Sustainability Policy

Materiality and KPIs

Materiality
Materiality and KPIs

Materiality

Through the meetings of the Sustainability Committee, the asset manager has examined its vision and targets for sustainability and carried out efforts toward their realization. As the level of interest toward sustainability is rising, the Company has further clarified the responses to be taken by identifying and visualizing related to sustainability materiality through dialogue with global stakeholders and collaborative efforts with other organizations. These issues were identified based on the Company’s Corporate Philosophy and Sustainability Policy but also incorporate the ideas of the SDGs.

List of Sustainability Issues

Response to sustainability certifications
Building resilience
Response to climate change
Energy efficiency
Ensuring of health and well-being of and convenience for people (tenants)
Employee cultivation and level of satisfaction
Efficient water use

Waste disposal
Partnership with stakeholders
Biodiversity in areas surrounding our buildings
Human rights
Diversity, equity, and inclusion
Compliance
Supply chain management

Materiality and KPIs

Level of Importance ★★★

This table can be scrolled sideways.

Most important materiality	Target	KPI	Risk	Opportunity
Response to sustainability certifications	Improve sustainability activities through participation in external evaluation organizations such as GRESB	Defined by each investment corporation	Decline in assessment among tenants and investors who base their assessments on sustainability	Improve environmental performance of propertie Expand the range of investors
Response to sustainability certifications	Improving proportion of environmental certifications	Defined by each investment corporation
Response to climate change	Reduction in GHG emission	Defined by each investment corporation	Drop in tenant sales & increase in property damages due to physical impact of climate change Decline in assessment by tenants & investors	Cost reduction with efficient energy use
Energy efficiency	Improvement in energy consumption	Defined by each investment corporation	Increase in energy-related expenses Reinforcement of environmental regulations	Cost reduction with efficient energy use
Energy efficiency	Introduction of renewable energy use	Defined by each investment corporation		Cost reduction with efficient energy use
Building resilience	Implementing disaster prevention measures	Defined by each investment corporation	Increase in expenses for recovery, compensation, etc., after natural disasters	Increase in property competitiveness
Ensuring of health and well-being of and convenience for people (tenants)	Improvement in tenant employee space	Improving communication space and refresh space at the time of renewal	Decline in property competitiveness Manpower outflow due to declining work conditions	Improved sustainability assessment by assessment bodies and investors Improvement in employee satisfaction and tenant assessment & satisfaction
	Visualization of health and comfort	Considering acquisition of wellness certification
	Implementation of employee satisfaction survey	Survey conducted annually More Details
Diversity, Equity, and Inclusion	Development of working environments where employees can fulfill their potential and achieve a work-life balance	Achievement of a 50% utilization rate of parental leave by male employees (at least one employee taking parental leave) More Details	Outflow of talent	Achievement of work-life balance and support for continued employment Recruitment of talent
Diversity, Equity, and Inclusion	Further promotion of women’s active participation in the workplace to continue fostering groundbreaking innovation	Raise the percentage of female employees in management roles to 20% (target year: 2027) More Details	Outflow of talent
Employee cultivation	Employee participation in compliance training	100% Training conducted annually More Details	Outflow of talent Emergence of risks with decline in compliance awareness	Development & recruitment of competitive human resources Assurance of customer trust through improved compliance awareness

Level of Importance ★★

This table can be scrolled sideways.

Most important materiality	Target	KPI	Risk	Opportunity
Efficient water use	Reduction in water consumption	Defined by Industrial & Infrastructure Fund Investment Corporation	Impact of shortage or quality decline of water resources on surrounding areas Rise in cost with increase in water consumption volume	Cost reduction with reduction in water consumption
Waste disposal	Reduction in wastes	Defined by each investment corporation	Reputation risk caused by increase in wastes Increase in processing cost	Processing cost reduction with reduction in wastes
Collaboration with local communities	Providing land to community events	Defined by each investment corporation	Degradation of the environmental surrounding the real asset Decline in reputation in the neighboring area	Revitalization of neighboring areas Improvement of corporate image

Level of Importance ★

This table can be scrolled sideways.

Most important materiality	Target	KPI	Risk	Opportunity
Efficient water use	Reduction in water consumption	Defined by Japan Metropolitan Fund Investment Corporation	Impact of shortage or quality decline of water resources on surrounding areas Rise in cost with increase in water consumption volume	Cost reduction with reduction in water consumption
Partnership with tenants	Introduction of green lease	Defined by each investment corporation	Greater tenant burden regarding safety and the environment Decline in tenant satisfaction	Devolution into property attractive to the tenant Generation of stable revenues
	Execution of tenant satisfaction survey	Defined by each investment corporation
	Promoting environmental consideration to tenants	Defined by each investment corporation
Collaboration with local communities	Support for social welfare organizations	Defined by each investment corporation	Degradation of the environment surrounding the property Decline in reputation in the neighboring area	Revitalization of neighboring areas Improvement of corporate image
Collaboration with local communities	Providing land to community events	Defined by each investment corporation

DFF Inc., KJR Management