Opportunities and Risks related to Materiality and Our Actions

Every material issue that we identify is analyzed from the perspectives of opportunity and risk, enabling us to take steps to capture opportunity and respond to risk.

Opportunities and Risks Related to Materiality and Our Actions

Materiality SDGs contributed to Opportunities Risks Main initiatives

Providing safe, secure buildings and spaces
  • Heightened need for properties that are safe and secure from natural disasters including earthquakes and flood damage
  • Rise of vacancy rate and decline of real estate value due to delayed actions on earthquake resistance techniques and BCP preparedness
  • Achievement of 100% highly earthquake-resistant buildings*1 by 2029
  • Addressing Mt. Fuji eruption risk and exhaustive confirmation of other natural disaster risks
  • Prevention of flooding by installing tide boards
  • Addressing workstyle and other changes among property users
  • Decrease in the competitive advantage and increase in vacancy rates of properties due to delays in addressing changes in the needs of property users
  • Assessing tenant needs through customer satisfaction surveys

Contributing to actions for mitigating climate change and reducing our environmental impact
  • Heightened need for buildings and properties equipped with higher energy efficiency and renewable energy
  • Need for additional compliance with environmental measures and regulations as well as increased costs
  • Converting to 100% renewable energy for electricity consumption at all company-owned buildings*2by 2029
  • Achieved RE100 in 2023
  • Promoting Scope 3 emission reductions through collaborations in the supply chain
  • Improved performance building energy savings
  • Heightened need for technologies for the reuse and effective use of resources
  • Soaring prices of construction materials
  • Waste reduction through longer life building design
  • Installing water-saving equipment
  • Actively adopting environmentally conscious technologies
  • Heightened need for real estate development that is mindful of conserving local ecosystems
  • Deteriorating residential environment and reputational decline in the event of ecosystem destruction near a property
  • Promotion of greening in development projects
  • Reduced greenhouse gas emissions and promoting forest circulation through the development of fireproof wooden buildings
  • Growth of markets and demand through the increase in business domains, including environmental response
  • Risk of delayed action on environmental issues due to lack of environmental management system
  • Opinion exchange with environmental experts (Environmental Advisory Council)
  • Acquiring building certifications and labeling disclosure

Addressing changes in demographics
  • Heightened need for senior living and hospitals with the aging of society and increase in the number of healthier senior citizens
  • Hiring-related costs may rise and shortage of care workers may materialize as the population of young generation declines
  • Development of and investing in senior living and other facilities as well as investing in nursing care technology
  • Potential for growth of new markets and demand due to more dual-income households and the government's enhanced childcare support
  • Declining demand for office buildings and existing businesses due to declining working population
  • Entry into the Children's Education Business
  • Development of medium-sized Bizflex flexible offices
  • Expansion and using needs related to IoT demand
  • Changes in existing business model due to accelerated digitalization
  • Established a department dedicated to new business creation and the management of corporate venture capital

Collaborating with business partners and local communities
  • Better results are expected through synergies brought about by aiming for mutual sustainable growth with our business partners and local communities
  • Reputational damage due to human rights and other issues in the supply chain
  • Reputational damage due to lack of communication with local communities
  • Close communication with tenants, building management companies and construction companies
  • Human rights due diligence including supply chain
  • Various contributions to society

Promoting diversity and the development of professional human resources
  • Diversification of human resources by promoting diversity
  • Loss of human resource acquisition and business opportunities
  • Establishing a personnel system that recognizes diverse workstyles
  • Securing occupational health and safety, promoting health and productivity management and the expansion of fringe benefits
  • Initiatives to create a highly productive organization
  • Improved employee motivation and brand value in talent acquisition by enhancing workplace wellness features and enriching talent development program
  • Potential for increased turnover due to inadequate working environment
  • Improved productivity through more use of digital and DX-related technologies
  • Productivity loss due to delays introducing digital and DX-related technologies

Maintaining and improving governance trusted by stakeholders
  • The effectiveness of operations is ensured and confidence in management improves when internal controls and corporate governance work
  • Social sanctions and the deterioration of public confidence due to noncompliance issues from inadequate compliance system
  • Strengthening the supervisory function of the Board of Directors and Audit & Supervisory Board
  • Establishing a Nominating Committee and a Remuneration Committee
  • Establishing a corporate governance structure for climate change risk
  • Compliance training for employees and setting up a hotline
  • Formulating a BCP and conducting drills
  • *1Highly earthquake resistant buildings are those that can safeguard human life and enable continued use of the building with post-earthquake repairs when an earthquake occurs with a seismic intensity of level 7.
  • *2Excludes properties for which we do not have energy management authority including master lease properties, residential properties and non-managerial co-ownership properties, and real estate for sale, etc.
TOP