Initiatives for Sustainability

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Human Capital Development

KDO is not allowed to hire employees under the provisions of the Act on Investment Trusts and Investment Corporations, and the Asset Management Company's employees substantially manage KDO's assets.
Kenedix Real Estate Fund Management, Inc. (KFM), the asset management company for KDO, is operated by employees who are sent from Kenedix, Inc., the parent company of KFM. KDO and KFM have identified "Attracting and retaining talents, and developing their careers" as material topic and been providing various development programs and benefits to all of its employees including part-time and contract to maximize their performance and stay in the company, under the policy that human resources are crucial for sophisticated investment management.

Number of personnel seconded from the sponsor (Kenedix, Inc.) to KFM (as of December 31, 2020): 101

Attracting and Retaining Talents, and Developing Their Careers

As Kenedix group, including the asset management company, is promoting initiatives to develop capabilities of employees by providing trainings and educational programs to maximize individual productivity, employees receive the opportunities to discuss whether they are satisfied with their job or not and their career planning twice a year, that is used to improve the efficiency of the operation and distribution of personnel at the most desirable place.

Diverse Human Capital and Stable Employment

KFM is operated by employees seconded from its parent company, Kenedix, Inc., and utilizes the know-how, expertise, philosophy, and human networks cultivated by the Kenedix Group. In addition, KFM continues to recruit new employees so that it can secure appropriate human resources in a timely manner in accordance with business conditions and environmental changes, etc. (Newly recruited employees are hired by Kenedix, Inc. and seconded to KFM.
Also, to forecast hiring needs and proactively develop new pools of talent, Kenedix, Inc. has adopted a referral recruitment strategy (an employee placement system whereby current officers and employees are encouraged to recommend personnel suited to the Kenedix Group, such as acquaintances and friends) in February 2021 in addition to regular new graduate recruitment and mid-career recruitment.
Thus by securing various human resources, Kenedix, Inc. promotes sustainability management as a real estate asset management company.
Kenedix group have never conducted lay-offs or other employment adjustment since their establishment in 1995.

Training Programs to Encourage Employee's Career Development

At Kenedix, Inc. where employees to be transferred to KFM are originally hired as new graduates, they are assigned to one-month entry training and then rotate several times in 5 year to make them grow up to human resources that have broad insight. Furthermore, to continuously improve the operational skills of employees, the company provides required training according to all employees by external specialist.

Percentage of executives and employees who received training: 85.1% (2019), 32.2% (2020)
Note: In 2020, the figure declined sharply due to the COVID-19 pandemic

Managerial/ Leadership Development Training

KFM utilizes the Kenedix, Inc. training programs and requires employees in managerial positions to attend external seminars on managerial and leadership development training.

Self-development program

Kenedix provides opportunities to all of its employees to attend seminars and trainings arranged by third parties to acquire specialist knowledge or skills required for their jobs.

English training

For those who applied, the company provides the English training by teachers from educational institutions in which the trainees participate in discussion every week to improve their ability. Also online-speaking program is available so employees can flexibly utilize the opportunity.

Training program provided by Professor

For those who applied, the company provides the opportunities to participate in the training program provided by Professor Chihiro Shimizu who is specialized in big data analysis and real estate economics at Nihon University. Also, the company invites the professor for regular teach-ins for employees on real estate.

Study abroad program

The company provides opportunities to obtain broad range of knowledge, personal connection and international viewpoint for a short term by sending employees to study in oversea graduate school in order to develop management leader in next generation for future business development.

Encouraging to Obtain Professional Certifications

To keep the status of leading company with professionals that provide high quality services, it is encouraged for its employees to obtain recommended or supporting certifications to develop capability and career and improve organizational power by subsidizing the cost at Kenedix group.

Number of employees with certifications

(As of December 31, 2020)

Real estate notaries 164 Tax accountants 5
ARES certified masters 78 Chartered members of SAAJ 15
Certified real estate consulting masters 23 Administrative scrivener 2
Certified building administrators 28 Judicial scrivener 1
Licensed senior architects 13 Building Manager 12
Real estate appraisers 9 Condominium Management Officer 9
Certified public accountants 6 Licensed Officer of Money Lending Business 14
Certified public accountants
2 Lawyer 2
Note: Calculated from group employees that directly hired by Kenedix, Inc.

Internal Job Announcement

Kenedix group has internal job announcement to provide its employees with the opportunity to demonstrate the best of their ability and to exploit human resource within the company. Employees are allowed to apply for the jobs they wish and design own career.

Evaluation System to Encourage Employee's Career Development

KFM conducts performance appraisals of all employees twice a year, in the middle of the year and fiscal year-end, thus periodically let employees set their goals, report on their results, and KFM hold interviews to feedback their evaluation. Through this process, KFM confirm the intentions of each employee toward career development and aligns business targets based on the suitability of the individual.
At the fiscal year end, all employees undergo an evaluation of achievement of contribution responsibility. The supervisor evaluates the performance of each employee in terms of their contribution responsibilities and the degree to which they have achieved them, and the results are fed back to the employee after reflecting the assessment results of the Personnel Evaluation Committee.

Employee satisfaction surveys

In 2021, the Kenedix Group, including KFM, conducted an external employee satisfaction survey for all employees. We are planning to continue conducting employee satisfaction survey going forward.

Whistle-blowing System

Employees of KFM are obliged to submit reports as prescribed in Rules Concerning the Internal Reporting System in the event of a violation or suspicion of a violation of a law or regulation (including a violation of the Code of Conduct of KFM) and when it is impossible or extremely difficult to remedy a violation through conventional business practices.
Individuals who submit reports, cooperate with the submission of reports or participate significantly in examinations of reports are protected by laws and regulations and the internal reporting system. Any negative consequences for individuals involved with internal reports are strictly prohibited. In addition, the whistle-blowing system stipulates that KFMr must maintain confidentiality with respect to the information reported, and that information such as the name of the whistleblower must not be disclosed unless consented by the whistleblower.

Health and Wellbeing of Employees

KFM and Kenedix, Inc. have identified “Health and wellbeing of employees “as material topic and been promoting initiatives to maintain work/life balance, provide working environment that is pleasant and advantageous in soft and hard to maximize employee’s ability. In addition, the company has prepared the non-salary benefits for all of its employees to reflect a variety of personal needs.

Work Style Reform

Kenedix, Inc. has been improving its working environment by encouraging employees to take paid holiday, reducing overtime work and introducing various internal rules to allow flex work style.

Promoting to take paid holiday

Rate of the used portion of employees' annual paid vacation in Kenedix group was 71.2% in 2019 and 58.6% in 2020. On top of annual paid leave, there are an established system which promote employees to take consecutive holidays during summer, from Jul. to Sep. Managers in each department take the initiative in encouraging their subordinates to take long-term holiday and promoting an increase in the ratio.

Hourly paid leave

We have an hourly paid leave system that allows employees to choose a flexible working style. Annual paid leave, sick/injured childcare leave and elderly parent care extended leave can all be taken in one-hour increments.

Staggered working hours rule

We have adopted flexible start of working hours. Employees are allowed to choose the time they start working from 8 to 10 am by day to work according to their convenience.

Initiatives to reduce overtime work

Managers in each department are monitoring working hours in their team and adjusting workload for employees to minimize overtime. If an employee was found to have worked more than certain hours, a check-up by doctor shall be arranged upon employee’s request, reported to the Health Committee.

COVID-19 infection prevention measures

Business operation during the COVID-19 related crisis

In response to the spread of the new coronavirus infection from the beginning of 2020, we quickly expand a staggered working hours system and implemented teleworking system, which enabled us to smoothly transition to a company-wide teleworking system and build a continuous business operation system when the state of emergency was declared in April 2020.
After the emergency declaration is lifted in May 2020, we have continued the shift work style, such as introducing the use of shared offices on a trial basis and improving the office environment and infrastructure.
Under the state of emergency declaration in July 2021, the attendance rate is kept at around 30% to 50% in principle.

Health and Wellbeing

Kenedix group has been endorsing health management to support health of employees and preparing comfortable working environment through establishing rules as follows.

Health committee

Kenedix, Inc. has established health committee and organized monthly meeting to discuss and take measures to promote health and prevent disorder for its employees. Also the committee sends email every month to all employees on relevant topics to enlighten them on health and wellbeing.

Annual physical health checkup

All employees including contract employees are to receive annual physical health checkup by doctor on company cost.

Mental health care

All employees have access to counseling service provided by the company where employees are allowed to report any personal issues or issues regarding the company to external counselors, in order to raise their mental literacy. Newsletter with relevant topics on mental health is sent every month to notify of this service. In addition, the company provides annual stress check to all employees including contract employees to prevent illness of which result are provided to each employee and, if necessary, checkup by doctor is arranged.

Positive Working Environment for Workers

KDO and KFM are located at “Hibiya Parkfront”, the building Kenedix, Inc. participated in its development. The transportation of the building is excellent since it is directly connected to 2 metro stations, Kasumigaseki and Uchisaiwaicho, through the neighboring building. Taking advantage of its rare location near Hibiya Park, abundant trees are planted inside and outside the building under the concept of an "office in the park". In addition, by providing services and facilities to support office workers, the building has become an ideal office where "people can feel nature and work comfortably".

< Harmonization with the nature of Hibiya Park >
Escalator from entrance on the ground
floor to the lobby on the second floor
Office lobby on the second floor
In order to harmonize with Hibiya Park, the landscape was developed for greening with over 100 plants and trees. Trees and plants are also placed inside the building to achieve park-like comfortable space in the building.

<"Hibiya Centrium", unified with landscape in Hibiya Park>
Hibiya Centrium
To protect biodiversity, over 100 kinds of trees and plants were selected after thorough examination of landscape in Hibiya Park. The area has become the oasis for tenants and workers from the nearby office.

Communication Room

Communication Room
Right next to the working space, Communication Room is placed where employees are allowed to use freely for taking break, a small meeting or any other purpose, being the hub for communication among employees.

Use of workcations

PerkUP Karuizawa
We started the operation of PerkUP Karuizawa as a base for team building and other activities in a scenic area of Japan far from big cities.

Off-site Meeting

Every December, off-site meeting has been held in which all employees are invited to listen to presentation by management executive or lecture by outside specialist. This occasion is used to give awards to the projects and promote communication among employees.

Support for Group Activities Outside of Work

The company subsidizes for group activities such as futsal or golf, which help employees make personal connection beyond his/her job scope.

Internal exchange during the COVID-19 related crisis

As the spread of the new coronavirus infection has made it difficult to hold off-site meetings and other opportunities for interaction, we have used online tools to conduct a variety of internal exchanges. In addition to distributing messages from the presidents and videos of project commendations, we solicited a wide range of proposals from employees regarding matters inside and outside the Group's business with a view after the COVID-19 related business and launched projects to realize them.

Diversity and Equal Opportunities

KFM and Kenedix, Inc. have identified “Diversity and equal opportunities “as material topic and been promoting initiatives to create working environment that all employees appreciate diversity such as respect for race, religion, sex, age, sexual preference, disabilities or nationality and respect for human right to maximize their productivity.

Respect for Human Right, prevention of all forms of discrimination and harassment

We have stipulated respect for human rights and prohibition on discrimination and harassment on its “Compliance Manual” and provided compliance trainings to raise awareness. In addition, training on dealing with harassment is provided for managers.

Encouraging Female Employees

The female participation in Kenedix group has been increasing year by year as ratio of female employees in 2017 reached 30% and the first female board member was assigned in March 2018. To activate the company and be prepared for limited working capital in Japan, we provide support for female worker to enable them to maximize their performance by preparing rules and systems their having children.

Male/female ratio in KFM: 71.0% / 29.0%
Male/female ratio of management in KFM: 100.0% / 0.0%

Note: As of December 31,2020.

Employment program for seniors

From the perspective of revitalizing the workplace through the participation of diverse employees and effectively utilizing human resources in response to the future decline in the working-age population, we have established a system for rehiring employees who have reached retirement age of 60 until the age of 65. Under this system, we expect that the knowledge and expertise of our senior employees, who have been at the forefront of the real estate asset management industry since its dawn, will be passed on to the organization.

Support for Employees Through Their Life Event

We have prepared various programs to support employees to work through their life event such as having children or nursing elderly.

Childbirth and child care

We have a number of programs for women during a pregnancy, such as time off for medical check-ups, working hours that avoid times when trains are most crowded, and days off for good health. At childbirth and afterward, we provide time off for women and their husbands.
Employees can receive time off for the care of a baby or when a preschool age child is sick or requires other care. We also offer flexible working time so employees can care for family members. For example, employees can limit overtime and late-night assignments, reduce working hours, or use staggered hours. There is also a subsidy for expenses for child-related transportation needs before and after work and a discounted babysitter service. As a result, return rate of female employees from maternity leave has been 100% since 2015 for three consecutive years.

Nursing elderly

Employees taking care of an elderly parent or other relative can use extra days off or extended leave. We also limit overtime and late-night assignments, reduce working hours, or use staggered hours so that an individual can fulfill family responsibilities. Support for nursing care goes beyond requirements by providing more than the legally mandated time off and special days off to care for an elderly parent or other relative.