Materiality for the TOSEI Group

The Tosei Group has identified key issues that should be prioritized for the enhancement of the Group's corporate value and the development of a sustainable society.

Theme / Materiality (The value we believe it is important to create) / Contribution to the SDGs / Coexistence with the environment / 1. Action on climate change and promotion of a recycling-oriented society, 2. Environmentally friendly manufacturing and service provision / 7. Ensure access to affordable, reliable, sustainable and modern energy for all, 12. Ensure sustainable consumption and production patterns, 13. Take urgent action to combat climate change and its impacts / Action to address social issues / 3. Healthy work environment that embraces diversity and individuality, 4. High quality products and services that give safety and reassurance, 5. Creation, rehabilitation and revitalization of local communities / 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all, 10. Reduce inequality within and among countries, 11. Make cities and human settlements inclusive, safe, resilient and sustainable / Solid corporate governance / 6. Governance that promotes healthy corporate growth / 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

As the demand for companies to address social and environmental issues, including climate change, is certain to increase in the future, we will further accelerate our efforts to contribute to the resolution of social and environmental issues for the development of a sustainable society and to promote ESG management for the sustainable growth of the company.

1. Action on climate change and promotion of a circular economy

  • Coexistence with the environment

Major Opportunities

  • Improvement of product and service quality (decarbonization, energy saving, resource saving, disaster prevention, etc.)
  • Promotion of utilization of existing stock, waste reduction
  • Visualization of performance through environmental certification, etc.

Major Risks

  • Further progression of climate change, increase of natural disasters
  • Cost increase due to GHG emissions, disasters, material shortages

Initiatives

Utilization of idle company housing
Utilization of renewable energy
Strengthening resilience

2. Environmentally friendly manufacturing and service provision

  • Coexistence with the environment

Major Opportunities

  • Improvement of product and service quality (decarbonization, energy saving, resource saving, disaster prevention, etc.)
  • Promotion of utilization of existing stock, waste reduction
  • Visualization of performance through environmental certification, etc.

Major Risks

  • Decrease in relative product value
  • Increased possibility of decline in market valuation

Initiatives

LED installation
Development of ZEH

Related SDGs

7. Ensure access to affordable, reliable, sustainable and modern energy for all, 12. Ensure sustainable consumption and production patterns, 13. Take urgent action to combat climate change and its impacts

3. Healthy work environment that embraces diversity and individuality

  • Action to address social issues

Major Opportunities

  • Develop and provide new products and services with diverse values and human resources
  • Corporate growth through improved employee productivity and retention

Major Risks

  • Occurrence of discrimination, harassment, etc.
  • Loss of new business opportunities and outflow of human resources

Initiatives

Supporting Tokyo Rainbow Pride
Health promotion program

4. High quality products and services that give safety and reassurance

  • Action to address social issues

Major Opportunities

  • Improvement of quality of products and services
  • Building good relationships with customers and suppliers

Major Risks

  • Occurrence of accidents, health hazards, etc.
  • Occurrence of occupational accidents in the supply chain

Initiatives

Quality Improvement Conference
Acquisition of ISO9001
ISO9001 Mark:JQA QMA11353

Safety and reassurance of customers

Safety and reassurance of employees and suppliers

5. Creation, rehabilitation and revitalization of local communities

  • Action to address social issues

Major Opportunities

  • Vitalization of local communities through business activities and real estate holdings

Major Risks

  • Deterioration of public safety and local economy in the business area

Initiatives

Creation of local communities
Event at hotel

Rehabilitation, creation and revitalization of local communities

Revitalization of local economies

6. Governance that promotes healthy corporate growth

  • Enhancing corporate governance

Major Opportunities

  • Promote sustainable corporate management by enhancing management quality
  • Enhance social credibility and become a company that has value to all stakeholders

Major Risks

  • Loss of corporate value and social credibility, etc.
  • Customer attrition, hiring difficulties, etc.

Initiatives

Materiality Identification Process

STEP01 Rough understanding of social issues and their impact on our group (FY2022)

  • We referred to various ESG guidelines on global issues and real estate industry issues (such as the GRI Standards and the Practical Guidance of the Ministry of Land, Infrastructure, Transport, and Tourism's Study Group for Promoting ESG Investment to Address Social Issues in the Real Estate Sector) as well as the SDGs and other frameworks to gain a broad understanding of social issues and we identified 64 social issues.
  • We organized these issues based on their relevance to us and our business and their impact on us and our impact on them.

STEP02 Sort-out of more specific social issues and implementation of internal survey (FY2023)

  • Based on the two axes of impact on the Group and impact on society and environment, we combined the organized social issues into 15 key issues.
An illustrative diagram consolidating 64 items into 15, based on organized social issues, including SDGs, GRI Standards, ISO 26000, Practical Guidance for Social Impact Real Estate(MLIT), and External evaluations and surveys related to ESG, etc.
  • For these 15 key issues, we conducted a survey (with the participation of Sustainability Committee members and Group company management) to sort out more concretely the opportunities and risks for the Group and the opportunities and risks for society and to identify the material issues the Group should address as a priority.
A diagram with the vertical axis labeled 'Impact on the Environment and Society' and the horizontal axis labeled 'Impact on Our Company,' showing the position of each issue.

STEP03 Dialogue with internal and external stakeholders (FY2023)

  • We reported the aggregated survey results to the Sustainability Committee for discussion.
  • We asked third-party experts (CSR Design Green Investment Advisory, Co., Ltd.) for their opinion on the aggregated results and our proposed materiality.
  • We prepared a materiality proposal based on the third-party expert advice.

STEP04 Identification of material issues (FY2023)

  • We identified materiality for the Tosei Group.
  • Following deliberations by the Sustainability Committee and Directors, the Management Meeting determined materiality for the Tosei Group upon confirming through discussion the comprehensiveness and validity of the themes which the Group should address.

STEP05 Review of materiality as appropriate (FY2024-)

  • We will review our materiality whenever there is a change in the social situation or our business environment or whenever we update out management strategy, etc.