• Materiality determination process
• Steps when considering materiality
• JPR and TRIM's Materiality and Strategic Targets(2030)

JPR and its asset management company, Tokyo Tatemono Realty Investment Management, Inc. (TRIM), recognize that the realization of a sustainable society is essential for stable medium- and long-term growth. TRIM approaches sustainability from the two perspectives of stakeholders' societal demands and business domains and determined materiality (material issues) for enhancing the social value provided through business activities as follows.

Materiality determination process

TRIM determined five material issues as social issues to be solved through business activities. JPR and TRIM will implement measures to solve these issues and also focus on the enhancement of sustainability management.

Steps when considering materiality

Step 1 Consider and identify social issues

TRIM listed up social issues linked to business activities by categories of environment, society and governance, with reference to the SDGs and other international targets, reporting standards such as the GRI Sustainability Reporting Standards and Sustainability Accounting Standards Board (SASB) standards, to broaden its understanding.

Step 2 Assess and prioritize the identified issues

TRIM assessed 16 social issues and measured their importance. In its assessment, TRIM used the two assessment criteria of societal significance (stakeholders' needs) and business affinity (domains which are relevant to current business or have future business potential), and scored issues based on the following six perspectives.

Societal needs	Business affinity
Comparison with other companies in the same industry	Analysis of existing initiatives
Industry analysis	Interviews with senior management
Expert reports	Workforce interviews

Step 3 Validate

TRIM validated the proposed material issues in light of the material issues of other companies in the same industry, the assessment criteria of ESG rating agencies, and exchanges of views with outside consultants.

Step 4 Determine materiality

Following approval of the proposed and validated material deliberates by TRIM's Sustainability Committee, TRIM determined the ESG-related material issues which are important for JPR and TRIM and reported these to TRIM's Board of Directors and JPR's Board of Directors. SDGs is an abbreviation for Sustainable Development Goals and represents the global goals to be achieved by 2030 adopted at the Millennium Summit of the United Nations. The SDGs have set 17 goals in a wide range of areas in light of a variety of social issues in developing and developed countries, and investment corporations and companies are expected to contribute to their achievement. Sharing the philosophy of the SDGs, JPR and TRIM will contribute to the achievement of the goals through their business activities.

JPR and TRIM's Materiality and Strategic Targets(2030)

JPR and TRIM have stipulated risks and opportunities of materiality and contributing SDG items as follows, and are working to achieve them.

Materialities and Policies			SDGs
Action on climate change
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	Promoting acquisition of environmental certification
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	Strategies	・Improving environmental certification acquisition rate ・Improving environmental ratings
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	Target/KPI	Target 2030: Environmental certification acquisition coverage rate of 90% or more (4-star/"A" rating or higher) Target 2050: Environmental certification acquisition coverage rate of 100% (4-star/"A" rating or higher)
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	Reducing GHG emissions
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	Strategies	・Achieving reductions by lowering emissions coefficients ・Achieving reductions with energy saving renovations ・Achieving reductions by introducing renewable energy ・Reducing waste and improving recycling rate
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	Target/KPI	Target 2030: Achieving 46.2% reduction in GHG emissions (compared to the 2019 level) Target 2050: Achieving net zero ・Rate of introduction of renewable energy ・Ratio of LED lighting
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	Efficient use of water resources and promotion of 3Rs (Reuse, Reduce and Recycle)
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	Strategies	・Implementing water-saving construction work ・Reducing waste and promoting recycling
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	Target/KPI	Target 2030: Achieving 10% reduction in water use per floor area (compared with the 2017 level)
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	Strengthening climate change risk management
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	Strategies	・Building industry-leading climate change risk response capabilities
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	Working with tenants to address climate change
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	Strategies	・Expansion of green lease agreement
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	Target/KPI	・Ratio of green lease agreements
Improving tenant satisfaction with safety, security and comfort
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	Improving satisfaction by providing tangible and intangible services (safety, security and comfort)
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	Strategies	・Improving overall tenant satisfaction (safety, security and comfort)
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	Target/KPI	・Average tenant satisfaction score
Creating a rewarding workplace environment
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	Strengthening human resources through training and self-development support
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	Strategies	・Fostering professionals who support corporate growth
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	Target/KPI	・Training expenses per employee ・Training hours per employee
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	Building an efficient business structure
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	Strategies	・Improvement of business efficiency and process
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	Maintaining and improving physical and mental health
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	Strategies	・Realization of physical, mental health and work-life balance
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	Target/KPI	(Target) 70% or more of annual paid leave taken (every year) ・Percentage of participation in health examinations ・Overtime hours per employee
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	Creating a rewarding workplace environment
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	Strategies	・Providing an environment where each person can play an active role
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	Target/KPI	・Average employee satisfaction ・Response rate of employee satisfaction survey
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	Promoting diversity & inclusion
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	Strategies	・Promoting the active participation of diverse human resources
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	Target/KPI	(Target) Ratio of female managers of 10% or more in 2030 ・Ratio of female employees ・Number of employees aged 60 or over
Respect for human rights
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	Compliance with norms and laws concerning respect for human rights
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	Strategies	・Raising awareness of human right policies both inside and outside the company
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	Target/KPI	・Human rights training (every year)
Strengthening corporate governance
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	Implementation of transparent management through active IR
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	Strategies	・Industry-leading information disclosure ・Active dialogue with investors
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	Target/KPI	・Number of results briefings per year ・Number of meetings with institutional investors in Japan ・Number of meetings with overseas institutional investors ・Number of events for individual investors in which JPR participates
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	Improving overall strength of Sustainability Promotion Framework
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	Strategies	・Obtaining industry-leading ESG valuation
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	Target/KPI	・GRESB Assessment ・MSCI ESG scores ・CDP evaluation
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	Enhancing a strong corporate governance
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	Strategies	・Maintaining a strong corporate governance
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	Target/KPI	(Target) 12 Compliance Committee meetings per year (Target) Six compliance workshops per year (Target) A compliance workshop participation rate of 100% ・Internal audits per year
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	Strengthening risk management
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	Strategies	・Building industry-leading management capabilities
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	Target/KPI	(Target) Four or more Risk Management Committee meetings per year