Corporate Governance

Recognizing Hulic’s climate change response as an important management issue, we have established a corporate governance mechanism centered on Board of Director oversight and the Sustainability Committee. This governance mechanism is stipulated in the Basic Regulations on Climate Change.

Examples of discussions and decisions made under our climate change-related governance structure:

  • An initiative to reduce CO2 emissions from owned properties to net zero and related investment of approximately JPY 100 billion
  • Supporting RE100 initiative and achieving by 2025
  • Developing Japan's first fireproof wooden 12-story commercial facility
  • Supporting TCFD recommendations and disclosing information in line with the recommendations
  • Achieving net zero CO2 emissions from owned properties and RE100 ahead of schedule, and related investment of approximately JPY 60billion

Board of Directors Oversight

The Board of Directors receives reports on climate change risks and opportunities from the Sustainability Committee at least once a year, and monitors and oversees the resolution of issues and setting of targets. In addition, important matters such as management strategies, management plans, annual budgets and profit targets are decided after consideration of climate change risks and opportunities when needed.

Sustainability Committee

Matters concerning climate change are deliberated and coordinated by the Sustainability Committee.

The Sustainability Committee, which is chaired by the President and Representative Director, who is responsible for climate change, is composed of the Vice Presidents, Senior Executive Managing Officer, the General Manager of the Business Planning and Management Department, the General Manager of the Real Estate Planning Department and Group company executives. 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.

Members

President, Vice Presidents, Senior Executive Managing Officer,
General Manager of Business Planning and Management Department,
General Manager of Real Estate Planning Department

Observers

Group company executives, Full-time Audit & Supervisory Board members

Secretariat

Business Planning and Management Department, Corporate Sustainability Office

Management Responsible for Climate Change

The President and Representative Director is responsible for the matters related to climate change. The President and Representative Director serves as the Chairman of the Sustainability Committee, and is ultimately responsible for assessments of the impact of climate change on Hulic business and manages appropriate responses. The Basic Regulations on Climate Change, which stipulate items related to climate change, are a matter for approval by the President.

Department in Charge of Climate Change-related Matters

The Business Planning and Management Department is in charge of climate change-related matters and is responsible for the planning, proposal and management of climate change-related items as well as the promotion of climate change responses throughout the Group.

Specific items include:

  • Leading the monitoring of climate change impacts in conjunction with related departments within Hulic and Group companies, understanding status and submitting reports and recommendations on appropriate measures to the Sustainability Committee at least once a year.
  • Designing processes to identify and assess the impact of climate change, managing identified impacts and integrating them into risk management across the organization.
  • Developing indicators used to measure and manage the impact of climate change, and set goals, tracking performance and reporting progress to the Sustainability Committee at least once a year.
  • Submitting reports and recommendations as needed to the Risk Management Committee regarding identified climate change impacts, and integrating them into Group-wide risk management.

Environmental Advisory Council

Hulic receives advice and recommendations on environmental issues from specialized and technical knowledge and objective viewpoints. To promote efforts to create value for society, we have been holding regular Environmental Advisory Council meetings comprising external advisors and top management once a year since 2010.

We also receive advice and suggestions from external advisors on matters related to climate change that are discussed directly by top management, which is leveraged for management decision-making regarding the planning of climate change-related measures.

External Advisors

  • Toshiharu Ikaga
  • Professor, Keio University
  • Yoshihiro Fujii
  • Representative Board Chairman, Research Institute for Environmental Finance (RIEF)
  • Takao Kashiwagi
  • Specially Appointed Professor & Emeritus Professor, Tokyo Institute of Technology
  • Keisuke Takegahara
  • Deputy Chief Research Officer, Chief Manager of Sustainability Management Office, Corporate Planning & Coordination Department, Development Bank of Japan Inc.

Management Members from Hulic

Chairman, President, Vice Presidents, Senior Executive Managing Officer,
General Manager of Business Planning and Management Department,
Group company executives

Climate Change-related Corporate Governance Diagram

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