We have identified eight materiality issues as priority focus of management attention considering 2030 situation
in order to achieve sustainable growth together with society.
We have also set single-year KPIs for each materiality to monitor and manage the quantitative progress of the response measures.

Eight materiality issues and KPIs

Materiality Identification Process

As a framework for identifying the materiality, we first identify social challenges related to the Company, and then consider whether those issues represent opportunity or risk. The materiality are organized into ESG categories. Handling construction defects was identified as one of the materiality unique to the Company. In order to ensure the execution of publicly announced repair completion plan and prevent similar issues from reoccurring, we designated two KPIs for the purview of governance, and continue to address them as important issues.

  • Step1
    Identify social challenges
    related to the Company
  • Step2
    Determine whether issue
    represents opportunity or risk
    in the fiscal year 2022
  • Step3
    Organize the materiality into
    ESG category
  • Step4
    Receive approval from
    Sustainability Committee

Step1 Identify social challenges relevant to the Company

Among a lot of social challenges, ones facing Leopalace21 which provides apartments for single-person households across the country, were identified and discussed within the Sustainability Committee secretariat. As a result, seven items were identified as social challenges relevant to the Company, such as shrinking labor force, demographic trends, employment issues, issues related to the living conditions, governance, and climate change.

Social challenges

  • Shrinking
    labor force
    because of
    and aging
  • Employment issues
  • Demographic
  • Innovations
    in digital
  • Rising
    demand for
  • Tighter
    checks on
  • Climate

Step2 Determine whether issue represents opportunity or risk

We have identified risks and opportunities by determining whether each social challenge poses a risk or an opportunity for the Company.

Each social challenge

  • Risk
  • or
  • Opportunity

Step3 Organize the materiality into ESG category

Based on the risks and opportunities for each social challenge, we examined the key issues that we need to address. As a result, we identified eight materialy issues: offer rental housing with stable operation, promote real estate tech business, work-style reform and HR development, respect for human rights, communication with stakeholders, maintain the workable corporate governance system, strengthen compliance, and environmental initiatives. Each materiality is then organized according to ESG category.

Each social challenge

  • Risk
  • Opportunity

Eight materiality issues

  • E
  • S
  • G

Step4 Receive approval from Sustainability Committee

The identified materialy issues are reported to and approved by the Sustainability Committee. The materiality issues are reviewed annually and discussed, with or without change, at the first meeting of the Sustainability Committee each year. The Sustainability Committee reports the materiality to the Board of Directors after it approves the materiality.


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