Tosei Group Eco Declaration

Eco-Mission (Action Policy)

In accordance with "Tosei Group Eco Declaration", we promote activities related to the three missions described below through various corporate activities to reduce environmental burdens, conserve environment, comply with environmental laws and regulations and educate our people.

Initiatives Through Business Activities

Environmental Preservation in Office Buildings

The Tosei Group has been promoting eco friendly office buildings. Heiwajima Tosei Building and Kamata Tosei Building have obtained the A rank certification of the Comprehensive Assessment System for Built Environment Efficiency (CASBEE).
*CASBEE is a tool for assessing and rating the environmental performance of buildings/built environment.

Promotion of Rooftop Greening

The Tosei Group announced in June 2006 that, in principle, it would adopt rooftop greening for all of its properties. Since then, the Group has been actively adopting rooftop greening, not only for new properties, but also for existing office buildings and revitalized condominiums.

Environmental Conservation of Condominiums

When planning new properties (new development and value-up), in accordance with the characteristics of the properties, the Tosei Group examines which products from 44 items of its unique environmental product list（LED, energy-saving glasses) are to be adopted, and selects environmental products from the perspective of energy and resources saving, and many other viewpoints.

Effective Use of Stocks and Environmental Conservation Through the Revitalization of Condominiums

Environmental Impact Assessment Loan System

The Tosei Group has received loans with preferential interest rates under the environmental impact assessment loan system. This was in recognition of the Group’s management commitment to the implementation of eco friendly business operations.

Internal Initiatives

Participation in Challenge 25 Project

The Tosei Group has participated in the Challenge 25 Campaign, a nationwide movement initiated by the government to prevent global warming. Each employee of the Group strives to improve the awareness of environmental conservation, and pursues environmental initiatives in his/her daily life to develop a sustainable society.

Event of Rooftop Greening

Tosei has long been engaged in the promotion of rooftop greening. In May 2010, it introduced greening to the rooftop of its head office, Toranomon Tosei Building. It did so mainly to bolster the environmental awareness of employees and to encourage communication, as well as to help alleviate the heat island phenomenon.

Environmental Training and Education Activities

The Tosei Group has been arranging environmental training and enlightening activities to enhance communication with local communities. The Group holds lectures and seminars for students to introduce the Group’s approach to environmental and conservation issues by presenting specific examples.

Measures to maintain business activities which achieve sound growth

1.Management Oversight System-supervising the execution of director's duties

Election of External Director	2 Independent Director
A Company with Auditors	4 auditors (2 full time, 2 part time auditors. All from outside the Company and independent directors)
Audit Corporation	Strict and prompt audits by Shinsoh Audit Corporation

2.Three Important Items in Corporate Governance. Group-wide Promotion of three Committees

Compliance	We place compliance at the top of our agenda and raise awareness of it from top management to all employees of the Group companies through the edification of workshops, morning gatherings and mail magazines
Risk Management	Assuming every possible risk, we prepare and practice emergency responses under normal conditions with a special focus on eliminating relationships with anti-social forces.
Information Disclosure	We practice disclosure and communication appropriately and on a timely basis to all stakeholders including shareholders.

Tosei Group believes that enhancing corporate governance is its most important initiative in achieving sustainable business activities. In addition to focusing on managing sound operations in compliance with the Companies Act, the Financial Instruments and Exchange Act, and other related laws and ordinances, and administering organs (the Board of Directors and the Board of Corporate Auditors) to ensure that they effectively monitor management activities, the Group will establish individual committees and strengthen initiatives to achieve full awareness of the importance of compliance, stronger risk management, and disclosure, which the Group views as its three most important tasks.

3.Measures which Provide a Platform for Basis of Business Activities-with an aim for sound growth

Operation of Board of Directors	The Board of Directors of Tosei consists of five directors (including two director from outside the Company) who decide management policies and other material issues as the uppermost management decision-making body.
Executive Officer System • Management Meeting	Executive officers appointed by the Board of Directors execute and oversee business tasks. At management meetings, the President obtains advice in advance before making important decisions.
Three way audits	In addition to accounting audits by Shinsoh Audit Corporation and audits by outside auditors, the Internal Audit Department conducts Group-wide audits . Moreover, through collaboration with these three parties, we create a strong auditing system.
Medium-term Management Plan	Tosei developed “Next Stage 2014”, its medium-term management plan for the next three years starting from December 1, 2011. In the management plan, we aim to strengthen our business growth drivers, the Revitalization business, the Development business, and the Fund business, in a bid to expand the scale of our operations further. At the same time, we work toward our expansion into global markets with a view to diversifying our management portfolio with overseas businesses. Further, we develop an organization and necessary infrastructures suitable for implementing the strategies.

Corporate Governance System

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Efforts for Internal Control System

Tosei formulated a basic policy on an Internal control system, aiming to construct the internal control system pursuant to the Company Law and the financial Instruments and Exchange Act, to build a trustworthy structure for our shareholders as a financial instrument operator. Every fiscal year, Tosei compiles information on measures we developed, managed and newly implemented and reports to stakeholders.

ISO9001 (Quality management system)

The Architecture Planning Department of Tosei Corporation has obtained ISO9001 certification for the planning, design, construction management, and after-sales service (regular inspections) of condominiums, office buildings, and commercial buildings. Tosei Community Co., Ltd., a subsidiary of Tosei Corporation, has also obtained ISO9001 (for the planning and provision of general management operations for condominiums, office buildings, and rental condominiums).

Quality Control Standards (TOSEI-QC-10)

Tosei Corporation manages all processes related to the construction and maintenance of new or existing office buildings or condominiums through three parties—the Company, design and construction administration companies, and construction management companies—based on Tosei’s unique quality control standards, TOSEI-QC-10. Tosei Corporation strives to provide customers with safe and reliable products by conducting inspections and rechecking particularly those items that customers cannot oversee.

Promotion of Social and Environmental Contribution Activities

The Tosei Group organizes donation activities, participates in planting activities, and carries out local cleaning, among other initiatives, as social and environmental contribution activities in which the employees can easily participate. Through these programs, the Group encourages employees to help contribute to their community and to the environment.

Training for Employees

To help each employee bolstering their skills and abilities, the Tosei Group has been providing human resources training, and has adopted a personal development support system and a qualification acquisition support system. The Group also provides external management school training, training for employees by occupational level, English training courses, and other training to develop the next generation of leaders.

Employees' Occupational Safety and Health

The Health Committee, which comprises employees and partner industrial physicians, reviews the general working environment, including the soundness of the office environment and the status of medical checkups, on a monthly basis. The results of the reviews are provided to employees as feedback.
Moreover, the Group takes steps to maintain the sound physical and mental health conditions of the employees by providing training related to mental health care in the office to managers, and offering employees engaged in overtime work that exceeds a certain level the chance to interview with industrial physicians and other professionals.