Corporate Philosophy and Sustainability

Corporate Philosophy and Basic Stance

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

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, profitability, B/S soundness, and productivity (efficiency) at a high level and achieve further growth through dynamic transformation backed by overwhelming speedy decision-making
Basic Strategies

Results of FY2020 initiatives related our sustainability

Environment: To realize a “carbon-free and recycling-oriented society”
  • Declared a commitment to act on building a carbon-free society, started initiatives to achieve net zero CO2 emissions by 2050*
  • Advance the initiative to achieve RE100 by 2025*
  • Announced our support for the TCFD recommendations, conducted a series of actions including the scenario analysis of climate change risks and opportunities in our businesses, etc.
  • Implementing the reduction of waste disposal by applying longer-life designs as standard specifications
  • Issuing Japan First Sustainability-Linked Bonds (Maturity: 10 years, Issue amount: JPY10 billion)
  • *We brought forward target years for each to 2030 and 2024, respectively in August 2021, and are accelerating implementation.
Society: providing value to the stakeholders
  • Continuing operation of a real estate business that emphasizes earthquake resistance and environmentally friendly measures
  • Strengthen relationships with local communities and other stakeholders
  • Implementing a wide range of social contribution activities (launching new Shogi championships for women (Hulic Cup Hakurei Championships and women's rank-deciding competition), supporting para-badminton, supporting single-parent households, donating books to a nearby elementary school, etc.).
Corporate governance: Promotion of balanced management
  • Maintaining sound corporate governance based on our Corporate Governance Guidelines
  • Setting additional nonfinancial KPIs (assessment of the effectiveness of the Board of Directors)

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 CO2 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 reach this goal, we plan to supply 100% of the electricity used by all leasing properties owned by the Company* with electricity generated by Hulic-owned solar photovoltaic equipment that does not use the FIT system.* In this way, we expect to achieve net zero CO2 emissions from electricity. Further, to steadily reduce CO2 emissions in line with the 2015 Paris Agreement, we have committed to setting and working toward SBT targets* within two years.

  • *Excludes single-tenant lease properties, residential properties and unmanaged shared properties for which we do not manage energy, and real estate for sale.
  • *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.
  • *Science-based targets are CO2 emission reduction targets in the next 5 to 15 years for the private sector that align with the Paris Agreement pathways. Paris Agreement: World governments committed to limiting global temperature rise to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C at the 2015 United Nations Climate Change Conference (COP 21).
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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.

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.
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RE100

In 2019, we participated in RE100, an international initiative for member companies to aim to use 100% renewable energy for the electric power required for business activities. We intend to use 100% renewable energy by 2024, developing our own solar power generation facilities that don't apply the feed-in tariff (FIT*) system to cover the power consumption of the Group.

  • *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.
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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. Hulic plans developing power generation and heat supply systems that use food waste from commercial facilities and hotels. The system will be used in buildings to convert waste to energy, to achieve zero emissions, and to save on labor during operations. We are also striving to set an example for revitalizing forestry business by using wood biomass.

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

We support the One Percent Club initiative, a move advocated by Keidanren (Japan Business Federation). We are committing to spend at least one percent of ordinary income on social causes every year.

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 discontinued its CSR Report, published since 2008, and instead 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.

Organizational Structure

Establishment of the Sustainability Committee

We have transformed the “CSR Committee” to “Sustainability Committee” (the Committee) upon establishing the Sustainability Vision. 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 not only CSR but also 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 President, Senior Executive Managing Officer, General Managers of Business Planning and Management Department, 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, and evaluates progress by reviewing performance. The Sustainability Committee submits reports on the deliberation of matters related to climate change 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 and sorting used stamps. Additionally, sustainability supporters assist the Corporate Sustainability Office 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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