Hulic's approach on Sustainability

Corporate Philosophy and Basic Stance

Corporate Philosophy

For the realization of a society
full of safety,
peace of mind and trust,
and for the continuous improvement
of corporate value

Basic Stance

  • Ideal Company

    We aim to be a company that grows each day by utilizing stable corporate infrastructures.

  • Corporate Culture

    We always conduct business from a new viewpoint in an effort to increase our corporate value.

  • Stance to Customers

    We are committed to providing optimal products and services to customers, placing customer satisfaction as our top priority.

  • Ideal Employees

    Each of Hulic's employees strives to provide high quality value as a professional.

Basic Principles of Corporate Conduct

The Basic Principles of Corporate Conduct, which concretely describes our Basic Stance in an easy-to-understand manner from a company viewpoint, underlies our decision-making in business.

  1. Awareness of Corporate Social Responsibility
    Contribute to domestic and overseas economies and stable development of society by devoting ourselves to sound business based on self-responsibility and fulfilling our social missions.
  2. Practice of Customer-first Policy
    Treat customers faithfully and kindly, listen to their requests with sincerity and provide sophisticated, efficient and high-quality services.
  3. Faithful and Fair Conducts
    Always act with sincerity and fairness in compliance with laws and regulations, their spirits, as well as social norms. Decisively confront anti-social forces threatening the order and stability of a civil society.
  4. Contribution to and Harmony with the Society
    Contribute to social development and improvement through the appropriate use of our fundamental functions. While being aware of responsibilities as good corporate citizens, commit ourselves to corporate conducts in accordance with the social common sense and expectations through close communication with society.
  5. Respect for Humanity
    Build an organizational culture full of respect for humanity and that values comfort and well-being, such that people can work with high motivation and an open-heart.

Our Code of Conduct

Our Code of Conduct, which concretely describes our Basic Stance in an easy-to-understand manner from the viewpoint of each employee, underlies actions our directors and employees should take.

  1. Respect human rights and prohibit discrimination and harassment
  2. Comply with laws and rules
  3. Conduct business in a faithful and fair manner
  4. Manage information appropriately
  5. Adhere to insider trading regulations
  6. Avoid involvement with anti-social forces
  7. Be considerate of environmental conservation
  8. Maintain and encourage the best communication possible
  9. Respect intellectual property rights
  10. Prohibit bribery, and rules concerning gifts and entertainments
  11. Ensure transparency and reasonableness of transactions

Sustainability Vision

We aim to pursue realization of a sustainable society
and continued growth of Hulic by putting our Corporate Philosophy into practice.
We commit to take a faithful approach to all of stakeholders.
To this end, we pursue initiatives based on a three-point Vision.

  • We create shared value with our society by actively engaging
    with the environmental issues through our corporate activities.
  • We lay the foundation for the future by providing peace of mind to our customers
    through offering our high value-added products and services.
  • We take compliance seriously, respect human rights and strive to perform
    transparent corporate activities based on our high ethical standards.

Relationships between the Philosophical Framework and Medium- and Long-term Management Plan

Our corporate philosophy "For the realization of a society full of safety, peace of mind and trust," means the purpose we exist is to create shared value with society through our corporate activities. Accordingly, our corporate philosophy and our sustainability vision are on both aspects of social relationships. Based on our corporate philosophy and sustainability vision, we formulated our corporate strategies as well as the Medium- and Long-term Management Plans.

Outline of Medium- and Long-term Management Plan (2020-2029)

Target Profile in 10 years "Driving innovation and accelerating progress" as our motto, we continue to steadily increase our corporate value through evolving ourselves flexibly in response to changes in macro environment
Basic Policy Strike a balance between P/L growth, B/S soundness, profitability, and productivity (efficiency) at a high level and achieve further growth through dynamic transformation backed by overwhelming speedy decision-making
Basic Strategies

Recent Results of Initiatives Related Our Sustainability

Environment: To realize a "carbon-free and recycling-oriented society"

  • Invest in renewable energy sources to achieve 100% energy use from renewables in all company-owned buildings* by 2029
  • Achieved "RE100" in May 2023
  • Disclose information in line with TCFD recommendations
  • Formulated greenhouse gas emissions reduction targets in conformance with Science Based Target initiative (SBTi). Our near-term (by 2030) emissions reduction targets were approved by SBTi as consistent with levels required to meet the goals of the Paris Agreement
  • Implement the reduction of waste disposal by applying longer-life designs as standard specifications
  • * Excludes single-tenant lease properties, residential properties and unmanaged shared properties for which the Company does not manage energy, and real estate for sale, etc.

Society: providing value to the stakeholders

  • Promote initiatives to secure the strength to withstand in the event of an earthquake with a seismic intensity of 7 level in all Company-owned buildings by 2029
  • Revise human rights policy and conduct Human Rights Due Diligence. Continue to promote initiatives to respect human rights
  • Strengthen relationships with local communities and other stakeholders
  • Implement a wide range of social contribution activities (managing Shogi championships for women (Hulic Cup Hakurei Championships and women's rank-deciding competition), supporting Japan Para-Badminton Federation, supporting single-parent households, donating of emergency food stockpiles, etc.)

Corporate governance: Promotion of balanced management

  • Maintain sound corporate governance based on our Corporate Governance Guidelines
  • The Board of directors comprises 4 executive directors and 6 independent directors and majority of members are independent external directors. An external director serves as the chairperson (As of June 25, 2024)
  • Ensure diversity and inclusion in the Board of Directors and Audit & Supervisory Board by increasing the ratio of female directors and Audit & Supervisory Board members to 33.3%, and the ratio of female directors to 30.0% (As of June 25, 2024)
  • Strengthened the Nominating Committee's and the Remuneration Committee's functions by appointing All four committee members are independent outside directors
  • Disclosed directors skill matrix

Participation in Initiatives

Hulic takes part in a range of global and domestic initiatives aimed at creating a sustainable society as well as increasing our purpose as a real estate company.

Sustainable Development Goals (SDGs)

In September 2015, the United Nations Summit unanimously adopted the SDGs as goals to be achieved by 2030. The SDGs consist of 17 goals in such areas as sustainable energy, the creation of a robust infrastructure, climate change countermeasures, and high-quality education.

Through our corporate activities, we address social issues and seek to find solutions. In concrete terms, we identify issues of great importance to us and our stakeholders as materiality issues, then implement measures to navigate relevant opportunities and risks.

Paris Agreement and SBT

We intend to reduce greenhouse gas emissions in line with the 2015 Paris Agreement adopted at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21). To achieve this goal, we work to introduce environmentally-friendly equipment to buildings, to convert to 100% renewable sources for electricity consumption at all company-owned buildings*1 by owned renewable energy equipment, and to reduce greenhouse gas emissions throughout the supply chain.
Hulic has had its near-term (by 2030) greenhouse gas emissions reduction targets approved by SBTi (the Science Based Target initiative*2) as consistent with levels required to meet the goals of the Paris Agreement.

  • *1Excludes single-tenant lease properties, residential properties, unmanaged shared properties for which we do not manage energy, and real estate for sale, etc.
  • *2An international initiative that promotes companies to develop greenhouse gas emission reduction targets in line with Paris Agreement goals (limiting the global temperature rise above pre-industrial levels to well below 2℃ and limiting below 1.5℃).

Task Force on Climate-related Financial Disclosures (TCFD)

Mindful of the importance of disclosing climate-related financial information, we announced our support for the information disclosure framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD *) in 2020 and started disclosing information in line with the recommendations after completing analysis and responses on the recommended framework. In 2024, we conducted an analysis in line with the 1.5°C scenario instead of previous 2°C scenario, and updated the content of our disclosures.

We will continue providing to our stakeholders information regarding our initiatives on creating a sustainable society in an easy-to-understand way and will work to further improve information disclosure.

  • * TCFD (Task Force on Climate-related Financial Disclosures) was established by the Financial Stability Board (FSB), an international organization that includes the central banks of major countries as well as financial regulators. The TCFD proposes a framework for disclosing climate-related information to investors.

Link: Information Disclosure based on TCFD Recommendations

RE100

In 2019, we participated in RE100, an international initiative for member companies to aim using 100% renewable energy for the electric power required for business activities. We have developed our own solar power generation facilities that don't apply the feed-in tariff (FIT *) system (contribute to a decarbonized society through "additionality**"), and have supplied all of them from our own PPS. We achieved in May, 2023.

  • *A feed-in tariff (FIT) system for electricity that requires utility companies to purchase electricity generated using renewable sources for a certain period of time at a price specified by the national government.
    FIT electricity is not considered renewable energy as a portion of the cost of the electricity purchased by a utility company is added to the consumer's bill so the tax payer must bear some of the costs. Therefore, achieving the 100% goal with FIT electricity is not considered RE100 by definition.
  • **Additionality is the promotion of the reduction of CO2 emissions by installing new renewable energy facilities to replace existing thermal power generation.

Challenge Zero

Challenge Zero (Challenge Net Zero Carbon Innovation), originated by the Japan Business Federation, is an initiative that views the creation of a decarbonized society as an important management issue. Companies participate if they are looking to develop innovative technologies early on and to implement them in society. The goal is to realize a net zero greenhouse gas emission society as soon as possible, in line with the Paris Agreement. In cooperation with partner companies, Hulic plans developing power generation and heat supply systems that use food waste from commercial facilities and hotels. The system will be used in Company-owned properties to convert waste to energy, to achieve zero emissions, and to increase efficiency of operations.

Keidanren Biodiversity Declaration Initiative

Biodiversity conservation, along with efforts to address climate change and realize a recycling-oriented society, constitute the main pillar of Hulic environmental materiality issue. With the United Nations Decade on Biodiversity ended in 2020, Keidanren (Japan Business Federation) made a proposal to continue this initiative in the Japanese business community with the Keidanren Biodiversity Declaration (revised edition) announced in June 2020. Hulic endorses and participates in this Keidanren initiative, and as a member of the international community, we will collaborate and cooperate with various stakeholders to resolve social issues.

Support of the Japan Business Federation's One Percent Club Initiative

Hulic supports the One Percent Club initiative, a move advocated by Keidanren (Japan Business Federation). The Club, as a suborganization of Keidanren's Committee on Responsible Business Conduct & SDGs Promotion, provides information on social contribution activities to companies and coordinates networking with NPOs and other organizations with the aim of enabling more effective social responsibility activities.

Keidanren's Challenge Initiatives for 30% of Executives to Be Women by 2030

Keidanren (Japan Business Federation) hosts the initiatives to aim for increasing the female executives ratio to 30% by 2030. In 2021, Hulic endorses the Challenge Initiatives for 30% of Executives to Be Women by 2030 from Keidanren (Japan Business Federation). And we have already achieved the challenge by increasing the female ratio in directors and Audit & Supervisory Board members to 33.3% and female directors ratio to 30.0% (as of June 25, 2024). Hulic actively manages diversity and believes in the importance of providing equal opportunities regardless of gender. We will continue to create an organizational environment where women and diverse individuals can thrive.

GX League

Green Transformation (GX) is intended to bring about a shift from an industrial structure centered on fossil fuels to one centered on clean energy, ushering in a comprehensive restructuring of economic and social systems. The GX League is a platform of like-minded companies that discusses GX and launches initiatives to create new markets in cooperation with industry, government, academia, and finance. Hulic supports the basic concept of this movement and is working together with others to discuss, promote, and practice GX.

Participation in TNFD Forum

Hulic participates in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum. The TNFD is an international initiative to create a framework for the effective assessment and disclosure of risks and opportunities related to natural capital and biodiversity. The TNFD Forum was established to support these discussions and help with creating a framework for the guidelines.

Registration of Partnership Building Declaration

Hulic has registered a Declaration of Partnership Building as promoted by the Ministry of Economy, Trade and Industry, seeking coexistence and co-prosperity throughout the supply chain.

Issuance of Integrated Report and the Sustainability Book

We have been issuing the Integrated Report since 2020. In the Integrated Report, we describe how our strengths have been used to create value for customers, society, and the Company. We also present financial information and outline the sustainability initiatives which support our corporate growth in an easy-to-understand way for our stakeholders. The aim of the Integrated Report is to create the opportunity for a new dialogue. The Integrated Report is reviewed by the Board of Directors prior to being issued. Further, Hulic compiles sustainability initiatives aimed at realizing a society full of safety, peace of mind and trust, and for the continuous improvement of corporate value in the Sustainability Book as well as on the Hulic website.

Link: Integrated Report

Organizational Structure

Establishment of the Sustainability Committee

We have established "Sustainability Committee" (the Committee). The Committee will discuss and coordinate material management matters relating to strengthening of our long-term competitiveness and risk management reflecting discussions and developments associated with ESG and SDGs in Japan and around the world.
The President chairs the Committee as commitment of top management is of upmost importance in successful medium and long-term engagements. Other members of the Committee include Vice Presidents, Senior Executive Managing Officers, General Managers of Corporate Sustainability Department, General Managers of Business Planning and Management Department, General Managers of the Real Estate Planning Department, and Group company executives.

Further, based on TCFD recommendations, we established a governance mechanism under which the Sustainability Committee deliberates and coordinates matters related to climate change. The Committee evaluates the impact of climate change on business at least once a year, formulates policies and strategies for mitigating identified risks and seizing opportunities, and discusses how to adapt to climate change, including reflecting its impact in plans, budgets and targets. The Committee also sets KPIs related to sustainability, including climate change, water consumption and waste disposal,etc. and evaluates progress by reviewing and overseeing performance. The Sustainability Committee submits reports on the deliberation of matters related to climate change and other sustainability matters (water consumption and waste disposal, etc.) at least once a year to the Board of Directors, which oversees the committee.

Organizational Structure

Activities of Sustainability Supporters

Approximately 20 employees are appointed from Hulic Group companies as sustainability supporters. During a one-year term as sustainability supporters, they play a central role in social contribution activities that include hosting a summer festival, conducting satoyama conservation activities, considering where to donate employee match gift program and sorting used stamps. Additionally, sustainability supporters assist the Corporate Sustainability Department in the promulgation and inculcation of the Hulic Sustainability Vision into the entire Group. At sustainability supporter meetings, opinions are proactively exchanged and proposals submitted that contribute to sustainability initiatives and the formulation of action plans.

Sorting used stamps

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