Initiatives for Sustainability

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Basic Policies / Promotion System

The Investment Corporation (“KDO”) and the Asset Management Company (“KFM”) have positioned initiatives on ESG (Environmental, Social and Governance) awareness as an important business management issue and KFM has established the following Sustainability Policies to promote initiatives on ESG.

Promotion System of Sustainability, etc.

Sustainability Committee

The initiatives for sustainability are promoted under the leadership of the Sustainability Committee established in KFM.
The Sustainability Committee gathers, analyzes, and examines the policies and targets, activity plans and various initiatives, matters related to risk management, and other important matters related to sustainability or ESG for KDO and KFM, and shares them with related parties, with the aim of promoting initiatives for sustainability and ESG-related matters. The committee meets in principle, every 3 months, and the content reviewed is also reported to the Asst Management Company's Board of Directors with an independent external member, and to KDO's Board of Directors with independent supervisory directors.
The Sustainability Committee is composed of the President & CEO (Chief Sustainability Officer), who is the Chair of the Sustainability Committee, and as members, the committee is composed of full-time directors, the Head of Strategic Planning Department, the General Managers of Strategic Planning Department, who are in charge of each REIT Department, the Head of Sustainability Office, the Head of Strategic Planning and the Head of Asset Management Division, who are in charge of each REIT Department, and the Head of Finance & Accounting Division.
In addition, the Head of Sustainability Office also serves as a member of the Public Relations and Sustainability Department of Kenedix, Inc., the parent company of KFM. Under the unified policy of the entire Kenedix Group, an organizational structure has been established to promote initiatives related to sustainability and ESG across the board.

Energy Conservation Measures Committee

Energy Conservation Measures Committee considers policies, targets, approaches on energy conservation and monitoring of the progress, and especially takes care of initiatives to reduce energy consumption among sustainability issues. It is held regularly and is comprised by the Head of Asset Management Division, Office REIT Department as the chairperson of the Committee, and as members, the Director & COO, Head of Office REIT Department, the Head of Asset Investment Division and the Head of Strategic Planning Division. Additionally, a third party expert attends the Committee as an observer to advise and cooperate in promoting measures.

Material Issues

The Kenedix Group has established material issues in order to identify subjects that are critical for achieving sustained growth of the Kenedix Group along with stakeholders and society. We will make commitment to find solutions to these issues both in business and society by making initiatives that reflect the opportunities and risks associated with each issue. Furthermore, we intend to contribute to achieving the SDGs by carrying measures for our materiality.

Process of defining material issues

Material issues of the Kenedix Group

Key areas and applicable SDGs Material issues
Contribution to a Sustainable Environment

Reduction of energy consumption and GHG emissions
Reduction of water consumption and waste materials
Collaboration with tenants for environmental initiatives
Commitment to a Diverse Society

Providing properties with environmental and social considerations
Improving resilience/climate adaptation
Initiatives for an aging society with fewer children
Stakeholder Engagement

Continuous improvement of customer satisfaction
Community engagement
Managing conflicts of interests
Attractive Working Environment

Recruiting, employee retention and career advancement
Health and wellbeing of employees
Diversity and equal opportunities
Responsible Organization

Compliance
Risk management
Commitment to responsible investments

Sustainability Policies

As material issues are defined, we have set Sustainability Policies to cover ESG issues comprehensively. The Kenedix Group will adhere to the Sustainability Policies as the basis for unified initiatives towards the material issues.

Environmental Policies

While conducting the long-term and stable asset management, KDO and KFM are further increasing their environmental programs based on the following environmental policies in addition to the sustainability policies and have been conducted invest management with consideration for the environment.