Mizuho Realty One Group’s
Materiality OUR Materiality

Materiality Materiality

When it comes to pursuing sustainability initiatives, there is an extremely wide range of pressing matters relating to sustainability. Therefore, to achieve results by maximizing the use of limited management resources, it is considered effective to concentrate on specific initiatives based on materiality (key issues). At Mizuho Realty One Group, we identified materiality issues as shown below for the purpose of incorporating our shared recognition of materiality into future medium-term management plans and business plans, as well as making sustainability promotion a pillar of the funds for which we are entrusted with asset management.

Environment

• Response to Climate Change

  

  
  Based on recognition of climate change as a global issue, we aim to establish a robust business foundation that will help achieve a carbon-neutral society and address climate change by working to manage and reduce energy consumption, greenhouse gas (GHG) emissions, water consumption, and waste, as well as enhancing our resilience to the increasing severity of natural disasters.

  Specific Initiatives	Details of Specific Initiatives	KPI
  Achieving a carbon-neutral society	Principles for Responsible Investment (PRI) Implement responsible investment and management in compliance with the PRI Task Force on Climate-related Financial Disclosure (TCFD) Disclosing information in accordance with the TCFD framework. Reduction of greenhouse gas (GHG) emissions Reducing greenhouse gas (GHG) emissions in the MONE Group’s business activities.	Annual report to PRI (each fiscal year) Information disclosure in accordance with TCFD framework (FY2025) Reduction of greenhouse gas (GHG) emissions by the MONE Group (including portfolio properties): 100% (FY2050)
  Establishing robust business foundation	Appropriate management of and adaptation to climate-related risks and opportunities Conducting a scenario analysis of the MONE Group’s business based on the TCFD’s recommendations to identify climate change-related risks and opportunities. System development Developing a governance system that addresses climate change-related risks and opportunities.	Development of governance system that addresses climate change issues (FY2022) Conducting and disclosing scenario analysis for One REIT, Inc. (FY2022) Conducting scenario analysis for all MONE Group businesses (FY2025)

• Promotion of Use of Sustainable Energy

  

  

  
  By pursuing a net-zero energy strategy through the active use of renewable energy (solar power, wind power, etc.) in our business activities, we aim to support the realization of a sustainability-conscious, recycling-oriented society.

  Specific Target	Details of Specific Initiatives	KPI
  Using renewable energy	Using renewable energy Considering the use of renewable energy. Considering the installation of solar power generation equipment, etc. and the use of power from renewable energy sources.	Ratio of renewable energy in power consumed in business activities: 40% (FY2030) Ratio of renewable energy in power consumed in business activities: 90% (FY2050)
  Introducing energy-generation technology/equipment	Use of energy generation Considering the introduction of technology/equipment related to energy generation (solar power, wind power, etc.)	No KPIs set (cumulation of cases/results) (each fiscal year)

• Greening of Portfolio

  

  
  We aim to reduce the environmental footprint of portfolio properties and improve asset value by working to make their energy use more efficient and pursuing the acquisition of green building certifications

  Specific Target	Details of Specific Initiatives	KPI
  Pursuing acquisition of various green building certifications	Acquisition of various green building certifications Pursuing the acquisition of various green building certifications through renovations, new construction, and management that consider tenants’ well-being in addition to improving energy efficiency and introducing renewable energy.	Set by each investment corporation and fund

Society

• Training and Capacity Development of Personnel in Charge of Sustainable Growth

  

  
  Based on our belief that a company’s management resources are its people, we strive to secure exceptional talent, develop them, and enhance their skills, so that both employees and the company can achieve sustainable growth.
  We aim to increase employee engagement and strengthen the company’s growth potential by creating a work environment that allows each employee to enhance their expertise while nurturing their capabilities by broadening their knowledge and skills and enabling dynamic collaboration.

  Specific Target	Details of Specific Initiatives	KPI
  Enhancing learning framework to support individual growth (career support)	Developing an enhanced personnel development system, and various training programs, and OJT programs for employees and management. Career support Creating an environment that facilitates the work of all employees and enhancing management capabilities so that each individual can actively contribute in their own way while developing their skills. Support career development to foster talent personnel who will be accepted and valued in the industry.	Development of education/OJT programs (FY2025) 1-on-1 meetings (supervisor and subordinate): held at least 4 times a year (each fiscal year)
  Enhancing learning framework to support individual growth (personal empowerment)	Qualification acquisition support Subsidizing the costs of acquiring and retaining qualifications recommended by the company. Personal empowerment support Providing opportunities and learning tools to obtain cutting-edge knowledge and skills, supporting participation in external training courses, and conducting various training programs.	No. of qualification holders (current figure) (each fiscal year) No. of employees supported in obtaining or retaining qualifications (current figure) (each fiscal year) Introduce and operate a new self-improvement support framework (FY2024) 360-degree feedback sessions: once per year (each fiscal year)
  Enhancing the fair personnel evaluation system	Fair personnel evaluations Conducting fair evaluations based on achievement of targets set at the start of the year. Conducting evaluations in accordance with standards on ability displaying level required for each class based on a class definition.	Continuously conduct measures to disseminate a new personnel evaluation system (FY2024) Performance evaluation and evaluation on ability displaying level: once per year (each fiscal year)
  Improving employee engagement	Measures to promote internal communication Promoting internal communication and creating an environment conducive to collaboration. Dialogue with employees Engaging in two-way dialogue between the company and employees through employee engagement surveys (including employee satisfaction questions).	Internal communication promotion measures: at least 3 measures implemented per year (each fiscal year) Employee engagement survey: once per year (each fiscal year) Positive response rate in above survey: 80% or more (FY2025) Employee retention rate: at least 95% (of all employees) (FY2025) Long-term leave program based on years worked: established (FY2022)
  Improving employee health and comfort	Employee health promotion measures Identifying employee health issues and implementing measures to promote their health. Enhancing items covered by medical/physical checkups Further enhancing health checkups to include examination items other than those that are legally required, such as enhanced cancer screening. Considering further enhancement of subsidies for comprehensive physical checkups, etc. Providing well-being-focused working spaces. Providing working spaces that incorporate plenty of natural light and greenery and use furniture that enables employees to work, meet, and take breaks in various settings, circadian lighting, etc.	Health and Productivity Management Outstanding Organization certification: ongoing (each fiscal year) Enhancement of items covered by health checkup and encouragement of comprehensive physical checkups: ongoing (each fiscal year) Stress check: once per year (each fiscal year) Workplace comfort survey for new office: once per year (FY2022)* *The effect of the new office is measured and reflected in subsequent measures.

• Diversity , Equity & Inclusion

  

  

  
  In order to create innovation and new corporate value in a sustainable manner, we believe it is essential to promote the success of a wide range of employees through diversity, equity, and inclusion. Based on this, we aim to create a work environment in which each employee can make full use of their strengths and maximize their abilities, regardless of gender, age, nationality, disabilities, etc.

  Specific Target	Details of Specific Initiatives	KPI
  Efforts to promote the advancement of various personnel	Prohibition of discrimination Promoting the advancement of women, seniors, and people with disabilities. Promoting awareness and behavioral changes among all employees Providing opportunities (lecture sessions, messages from management) to gain a deeper understanding of respecting the rights of self and others, including understanding of LGBTQ and other sexual minorities.	Female manager* (management title) rate: at least 30%*1 (FY2025) Employment of people with disabilities: employment of at least the number of people calculated based on statutory employment rate (each fiscal year) Employment of seniors (aged 65+): at least equal to the number of employed people at the end of the previous year’s number (each fiscal year) Employment of non-Japanese citizens (if there is an opportunity): ongoing (each fiscal year) Provision of opportunities to enhance understanding (e.g., human rights training): at least four times once per year (each fiscal year)
  Initiatives to enhance work-life balance through promoting various work styles	Promoting various work styles Promoting ABW (activity-based working). Continuing to maintain a flex-time system with no restrictions on the number of days or hours, a free-address system, a remote work system (including working from home), and shared offices.	ABW measures (use of full flex-time, free address, remote work, and shared office systems, etc.): ongoing (each fiscal year) Understanding the status of ABW implementation and its issues, and implementing improvement measures for the issues (each fiscal year)
  	Enhancing systems that support work-life balance Supporting balancing of work, child-rearing, and nursing. Promoting taking days off and leave. Preventing overwork.	Childcare leave usage rate (male): at least 30% (FY2025) Return-to-work rate of those taking childcare leave: 100% (each fiscal year) Annual paid leave usage rate: at least 70% (FY2025) Special leave usage rate: 100% (each fiscal year) Work in excess of statutory working hours: the total number of people whose work in excess of statutory working hours exceeds 45 hours per month should be less than the number at the end of the previous year (each fiscal year)

• Provision of Peace of Mind, Comfort and Health to Tenants

  

  
  We aim to increase tenant satisfaction, ensure stable revenue, and earn the trust of society (including tenants) by maintaining regular two-way communication with tenants, providing tenants and facility users with spaces that offer peace of mind, comfort and health (well-being), renovating properties to meet diversifying social needs, etc.

  Specific Target	Details of Specific Initiatives	KPI
  Promoting communication with tenants based on two-way dialogue	Understanding tenant satisfaction and resolving issues Conducting tenant satisfaction surveys on a regular basis to obtain requests and opinions from tenants and occupants. Sharing survey results with investors, property managers, building management companies, etc., and carrying out work, such as upgrading building specifications and renovating facilities, to improve services.	Set by each investment corporation and fund
  Strengthening disaster risk management	Installing disaster prevention equipment and supplies at portfolio properties and implementing measures to improve awareness of disaster preparedness (holding briefings, distributing pamphlets, etc.) Strengthening initial response during a disaster and rapidly determining the disaster status. Preparing disaster prevention manuals for each portfolio property. Posting information such as evacuation sites at portfolio properties.	For MONE Group portfolio properties: Disaster prevention supplies installation rate: 100% (FY2025) Disaster prevention awareness improvement measure implementation rate: 100% (FY2025) Disaster prevention manual preparation rate: 100% (FY2025) Development of disaster reporting system: 100% (each fiscal year) Evacuation site posting rate: 100% (FY2025)
  Providing tenants with spaces that offer peace of mind, comfort and health (well-being)	Improving comfort and health (well-being) by carrying out appropriate management and renovations Performing appropriate building management. Performing appropriate upgrades to key facilities. Providing new functions and services aligned with social needs. Implementing ESG measures such as improvements to wellness and ABW. Implementing measures to achieve diversity and inclusion. Providing peace of mind through buildings and management focused on exceptional safety and disaster preparedness Implementing BCP, rapid response during disasters, and measures to prevent spread of disease. Implementing measures to improve security and earthquake resistance.	No KPIs set (cumulation of cases/results) (each fiscal year)

• Creation of Long-Life Real Estate Stock

  

  
  Through long-term, strategic facility management from both an equipment and architecture perspective, we realize the potential of high-quality building stock, maintain and increase the value of real estate even as it ages, and contribute to the effective use of social infrastructure and the sustainability of society.

  Specific Target	Details of Specific Initiatives	KPI
  Renewing existing buildings and creating high-quality real estate stock	Creating high-quality real estate stock Carrying out renovations that enhance value. Carrying out renovations (to change the building’s use). Carrying out renovations that save energy. Carrying out exterior renovations focused on biodiversity. Carrying out work to enhance earthquake resistance.	No KPIs set (cumulation of cases/results) (each year)

Governance

• Strengthening of Governance

  
  Through compliance with the relevant laws and regulations and internal rules, including appropriate management of transactions with interested parties, proactive information disclosure, and appropriate implementation of the PDCA cycle, we aim to increase transparency and establish a viable, highly effective governance system.
  Through implementation of robust compliance-related systems and ongoing measures that help improve officers’ and employees’ awareness of compliance, we ensure rigorous compliance with laws and regulations, as well as conducting corporate activities in an honest, fair manner in accordance with social norms.

  Specific Target	Details of Specific Initiatives	KPI
  Improving officers’ and employees’ compliance awareness and knowledge, and complying with relevant laws and regulations and internal rules, while enhancing the governance system using the PDCA cycle and proactively disclosing governance-related information	Disclosing overviews of various meeting bodies and committees, including the Board of Directors. Disclosing investment management-related decision-making processes. Disclosing initiatives for handling anti-social forces. Disclosing initiatives to prevent bribery and corruption. Disclosing money laundering and terrorism financing countermeasures. Disclosing that compliance-related regulations have been established and that actions have been implemented based on those regulations. Establishing an annual compliance plan and implementing its measures. Establishing an annual compliance training plan and implementing its measures. Disclosing that there is a Whistleblowing System (Compliance Hotline) and notifying employees and officers about it. Establishing an annual internal audit plan and implementing its measures.	Attendance rate of directors at the Board of Directors meeting(actual figure)(each fiscal year) Compliance training attendance rate: 100% (each fiscal year) No. of compliance hotline usage cases: (actual figure) (each fiscal year) No. of internal audits conducted: (actual figure) (each fiscal year)

• Promotion of Risk Management

  
  We aim to minimize the various apparent and latent risks in our business activities (risks involving assets whose management is entrusted to us, operational risks, etc.) by managing them in an appropriate, organized manner. Moreover, with respect to large-scale disasters, pandemics, climate change risks, etc., we aim to avoid or reduce losses by establishing a business continuity management (BCM) system, conducting scenario analyses, etc.

  Specific Target	Details of Specific Initiatives	KPI
  Organized management of various risks and minimizing various risks	Developing and disclosing risk management-related systems, etc. Performing risk management (identifying apparent/latent risks and formulating measures to address the applicable risks). Conducting ongoing evaluations of business partners (property managers, etc.).	Continuous implementation of risk monitoring (each fiscal year) Implementation rate of ongoing evaluations of business partners (property managers, etc.): 100% (each fiscal year) No. of times system risk-related training is implemented: twice per year (each fiscal year)
  Enhancing business continuity management (BCM) system and improving officers’ and employees’ and disaster prevention awareness	Formulating annual BCM plan and implementing its measures. Preparing BCP based on scenario risks. Preparing business manuals and promoting their use. Conducting training to confirm safety of officers and employees. Participating in building evacuation training. Conducting BCP training.	Formulating annual BCM plan and implementing its measures (each fiscal year) No. of times safety confirmation training is held: Twice per year (each fiscal year) No. of times building evacuation training is held: Twice per year (each fiscal year)
  Managing and adapting based on climate change-related scenario analysis	Conducting climate change-related scenario analyses.	(See the “Response to Climate Change” section under Materiality)

• Dialogue with Stakeholders

  
  Through ongoing two-way dialogue with stakeholders based on proactive information disclosure, we aim to build a strong, trusting relationship with them. With the participation of management, we consider information and opinions obtained via dialogue from stakeholders’ perspective and incorporate them into the Group’s management and business in order to adapt to the changing needs of society.

  Specific Target	Details of Specific Initiatives	KPIｓ
  Creating opportunities for two-way dialogue with stakeholders and using information, opinions, etc. obtained from the dialogue in the management and business while conducting proactive disclosure	Conducting employee satisfaction surveys. Holding meetings with clients (fund investors, etc.). Creating, maintaining, and managing communication tools (e.g., company brochures). Disclosing information via the website, etc. Creating opportunities for two-way dialogue with business partners.	(With regard to tenant satisfaction surveys and employee satisfaction surveys, refer to the “Provision of Peace of Mind, Comfort and Health to Tenants” and “Training and Capacity Development of Personnel in Charge of Sustainable Growth” sections under Materiality)