トーセイ（8923） – TOSEI GROUP ESG REPORT 2021

TOSEI(cid:3)GROUP(cid:3) ESG(cid:3)REPORT 2021(cid:331)(cid:326)(cid:330)(cid:316)(cid:320)(cid:2)(cid:318)(cid:329)(cid:326)(cid:332)(cid:327)(cid:2)(cid:316)(cid:330)(cid:318)(cid:2)(cid:329)(cid:316)(cid:327)(cid:326)(cid:329)(cid:331)(cid:2)(cid:297)(cid:295)(cid:297)1(cid:314)(cid:326)(cid:325)(cid:331)(cid:316)(cid:325)(cid:331)(cid:330) (cid:1306)(cid:1333)(cid:1351)(cid:1351)(cid:1329)(cid:1335)(cid:1333)(cid:1256)(cid:1334)(cid:1350)(cid:1347)(cid:1345)(cid:1256)the Management• Message from the President and CEO• Message from the Chairman ofESG Promotion Committee TOSEI Group’s Sustainability• Our Approach to Sustainability• ESG Promotion System• Mid-term Management Plan “Infinite Potential 2023”• Participation in Initiatives• Commitment to SDGs (cid:1295)(cid:1346)(cid:1354)(cid:1338)(cid:1350)(cid:1347)(cid:1346)(cid:1345)(cid:1333)(cid:1346)(cid:1352)• Vision• Target and Progress• Climate Change• Biodiversity• Environmental Pollution and Resources• Sustainability Finance• Environmental Real Estate Certifications (cid:1314)(cid:1347)(cid:1331)(cid:1338)(cid:1329)(cid:1344)Labor Environment•• Response to Social Needs• Social Contribution (cid:1297)(cid:1347)(cid:1354)(cid:1333)(cid:1350)(cid:1346)(cid:1329)(cid:1346)(cid:1331)(cid:1333)• Corporate Governance• Compliance and Risk Management• Disclosure(cid:122) External Evaluations(cid:192)(cid:1256)(cid:1313)(cid:1333)(cid:1348)(cid:1347)(cid:1350)(cid:1352)(cid:1338)(cid:1346)(cid:1335)(cid:1256)(cid:1311)(cid:1333)(cid:1350)(cid:1338)(cid:1347)(cid:1332)(cid:1248)(cid:1256)(cid:1256)(cid:1296)(cid:1338)(cid:1351)(cid:1331)(cid:1329)(cid:1344)(cid:1256)(cid:1357)(cid:1333)(cid:1329)(cid:1350)(cid:1256)(cid:1276)(cid:1274)(cid:1276)1 (cid:1256)(cid:1256)(cid:1256)(cid:1256)(cid:1266)F(cid:1350)(cid:1347)(cid:1345)(cid:1256)(cid:1294)(cid:1333)(cid:1331)(cid:1333)(cid:1345)(cid:1330)(cid:1333)(cid:1350)(cid:1256)(cid:1275)(cid:1270)(cid:1256)(cid:1276)(cid:1274)20(cid:1256)(cid:1352)(cid:1347)(cid:1256)(cid:1309)(cid:1347)(cid:1354)(cid:1333)(cid:1345)(cid:1330)(cid:1333)(cid:1350)(cid:1256)(cid:1277)(cid:1274)(cid:1270)(cid:1256)(cid:1276)(cid:1274)(cid:1276)1(cid:1268)46102850663 Message from the ManagamentThe Tosei Group’s corporate philosophy is to “create new value and inspiration in all aspects of real estate.” With environmental and social issues growing increasingly serious, we recognize that the creation of new value that society demands through our corporate activities is the realization of a sustainable society.As part of its CSR activities, the Group has long promoted the revitalization and development of real estate with an awareness of reducing environmental impact, in addition the enhancement of corporate governance.In January 2019, we established the Tosei Group ESG Policy and ESG Action Guidelines to re-integrate and further develop our activities as ESG management, and established a promotion system.In addition, since 2020, we have been aware of the roles that the Group should play in achieving the Sustainable Development Goals (SDGs) established by the United Nations, and have been planning products and services aimed at contributing to SDGs in established businesses such as real estate revitalization and condominium and detached house development.Amid a rapidly changing social environment, people’s lifestyles and values are becoming increasingly diverse, and there is also a need for reforms in the style and value of real estate.The Tosei Group will strive to practice ESG management that gives consideration to sustainability while continuing to respond flexibly to changes in the social environment so that we can continue to be a company with existence value for all stakeholders.The President and CEO Seiichiro Yamaguchi4Message from the Chairman of ESG Promotion CommitteeThe Tosei Group has formulated a medium-term management plan, “Infinite Potential 2023,” which begins in 2021, and has established basic policies for ESG promotion in both its business activities and management infrastructure.In business activities, Tosei Group aims to expand existing businesses by planning products and providing services with an awareness of environmental issues such as climate change, and social issues such as diversity and disaster prevention. In addition, in our management infrastructure, we will promote sustainability-conscious business management and further enhancement of corporate governance.In order to smoothly promote the initiatives set forth in these basic policies, the ESG Promotion Committee will play a central role in monitoring the status of initiatives at relevant departments, including group companies, and will work in close collaboration to steadily achieve the plans.CFO and Senior Executive OfficerChairman of ESG Promotion CommitteeNoboru Hirano5 TOSEI Group’s SustainabilityOur Approach to SustainabilityESG Promotion SystemMid-term Management Plan “InfinitePotential 2023”Participation in InitiativesCommitment to SDGsOur Approach to SustainabilityIn order to contribute to the realization of a sustainable society through our corporate activities, the Tosei Group has established “The ToseiGroup ESG Policy” and “The Tosei Group ESG Action Guidelines” and is striving to implement ESG management that takes sustainability intoconsideration by establishing an ESG promotion system led by the ESG Promotion Committee.The Tosei Group ESG Policy and The Tosei Group ESG Action GuidelinesThe Tosei Group ESG PolicyThe Tosei Group has a mission of creating new value and inspiration in all aspects of real estate as a global-minded group of seasonedprofessionals. It regards its commitment to the Environment, Social and Governance as a priority management challenge. It willseriously address the social issues associated with real estate to contribute to society and achieve its own continuous growth.The Tosei Group ESG Action Guidelines1. Carry out business activities that achieve sound growthcorporate governance and building an internal control system.2. Comply with laws and regulationsoutsiders’ awareness.3. Take actions that increase the value of real estateWe will respond swiftly and appropriately to changes in business circumstances and continue business activities that will ensure soundgrowth to meet our social responsibility to all stakeholders. We will make concerted efforts to strengthen our structure for enhancingWe will not only comply with laws and regulations relating to the environment, society and corporate governance, but we will alsoprovide internal training aimed at improving knowledge and promoting understanding, and we will carry out activities for increasingWe will take actions toward resolving a range of issues involved in real estate and increasing its added value with a view to makingeffective use of real estate and energizing local communities in all our business activities.4. Carry out business activities with environmental considerationsWith the aspiration of building a low-carbon society, we will introduce measures that increase the energy efficiency of real estateowned. We will work to reduce water consumption and waste emissions and implement reduce, reuse and recycle activities in a positiveeffort towards building a recycling-oriented society.5. Contribute to tenants, locals and communities through real estate owned6In terms of our aim of practicing actions in accordance with these action guidelines, we will work to collaborate with corporate tenantsof real estate owned, business partners such as property management firms and occupants of residential real estate to establishharmony with the local people and communities.6. Increase customer satisfactionWe will strive to offer products and services based on safety and reassurance and sincerely carry out business activities consistentlyfrom customers’ standpoints in an effort to increase customer satisfaction.We will define personnel as an essential part of our business and continue developing seasoned professionals. We will create a positivecorporate culture in which diverse personnel with different backgrounds respect one another and work with a focus on teamwork in anWe will disclose our ESG targets, monitor the state of actions on a regular basis and make their results known to stakeholders on our7. Increase employee satisfactioneffort to boost employee satisfaction.8. Disclose ESG informationwebsite and by other means.ESG Promotion SystemThe Group has established an ESG Promotion Committee to deliberate and determine ESG-related policies and activities. The committee ischaired by the director in charge of ESG promotion, appointed by the CEO, and consists of members appointed by the director in charge ofESG promotion. The contents of the deliberations are regularly reported to the Board of Directors and reflected in the Group’s businessactivities in cooperation with each relevant department.Mid-term Management Plan “Infinite Potential 2023”In our three-year medium-term management plan “Infinite Potential 2023” starting from the fiscal year ending November 30, 2021, we haveestablished a basic policy for ESG promotion in both our business activities and management infrastructure in order to strongly promote ESGmanagement. In our business activities, we will strive to expand our existing businesses by planning products and providing services thatare conscious of environmental issues such as climate change and social issues such as diversity and disaster prevention, and in ourmanagement infrastructure, we will promote sustainability-conscious business management and further enhancement of corporategovernance to further increase corporate value and contribute to the realization of a sustainable society.Basic PoliciesPursue the Group’s infinite growth potential in all aspects of real estate and aim for a new stage as a comprehensive real estate company.7Fundamental PolicyGrowth StrategyExpand existing businesses and increase operating profit with a focus on environmental/social issuesEnhance existing businesses and create new income-generating models through DXStrengthen the Business BaseImplement a balance sheet strategy with a focus on increasing business scale, Group-held assets andcapital efficiencyImplement Group strategy and organizational strategy with a focus on achieving both governance andefficiencyImprove operational and administrative efficiency through the promotion of utilization of IT andenhance employee satisfaction conducive to improving productivityPromote business, management and ESG with a focus on sustainabilityParticipation in InitiativesSupporting the recommendations of the Task Force on Climate-related FinancialDisclosures (TCFD)We have expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and are a memberof the TCFD Consortium, an organization of supporting companies in Japan. Based on the TCFD recommendations, we will analyze the risksand opportunities posed by climate change to our business, and strive to further enhance information disclosure.Participation in GRESB Real Estate AssessmentWe have participated in the GRESB Real Estate Assessment since 2019, and in 2021, our second year of participation, wereceived a “1 Star” and “Green Star” rating in the GRESB Ratings, which are rated according to the global ranking of theoverall score. The “Green Star” rating is given to participants that excel both in terms of their organization and structure inpromoting ESG and in terms of the environmental performance of the properties they own. In 2021, we made efforts toacquire environmental performance data on the properties we own and to enhance our efforts with tenants.8Commitment to SDGsWe have created links between the UN Sustainable Development Goals (SDGs) and the Tosei GroupESG Policy and Action Guidelines.In the future, we plan to select material issues for the Group to focus on.The Tosei Group ESG Action GuidelinesRelationship with SDGsESGCarry out business activities with environmentalconsiderationsTake actions that increase the value of real estateContribute to tenants, locals and communitiesthrough real estate ownedIncrease customer satisfactionIncrease employee satisfactionCarry out business activities that achieve soundgrowthComply with laws and regulationsDisclose ESG informationSDGs 17 Goals1.No Poverty2.Zero Hunger3.Good Health and Well-Being11.Sustainable Cities and Communities17.Partnerships for the Goals9.Industry, Innovation and Infrastructure15.Life On Land10.Reduced Inequalities16.Peace, Justice and Strong Institutions4.Quality Education12.Responsible Consumption and5.Gender Equality6.Clean Water and Sanitation7.Affordable and Clean Energy8.Decent Work and Economic GrowthProduction13.Climate Action14.Life Below Water9 EnvironmentVisionOur Approach and Vision for the EnvironmentEnvironmental Promotion SystemOur Approach and Vision for the EnvironmentThe Tosei Group takes seriously its corporate responsibility as a real estate business company in light of recent changes in the globalenvironment and the urgent need to reduce greenhouse gas emissions. In order to strengthen our environmental efforts, we established the”Tosei Group Eco Declaration” and “Eco-Mission” in April 2009, and in March 2022, the “Tosei Group Environmental Policy” was established bya resolution of the Board of Directors.Tosei Group Environmental PolicyThe Tosei Group has established the following five items as its environmental policy and endeavor to promote environmental efforts in all ofits corporate activities.1. Promotion of efforts to create a low-carbon societyreducing energy consumption and greenhouse gas emissions.We will contribute to the formation of a low-carbon society by actively introducing measures that contribute to energy conservation and2. Promotion of efforts to create a circulating societyWe will strive to reduce our environmental impact and contribute to the formation of a circulating society by preventing environmentalpollution, promoting resource conservation including reduce, reuse, and recycle, and reducing water consumption and waste emissions.3. Promotion of efforts to coexist in harmony with the environmentWe will contribute to the formation of a prosperous and sustainable society by creating urban environments that are in harmony withnature, taking biodiversity into consideration.4. Compliance with environmental laws and regulations and raising awareness of environmental conservationIn addition to complying with environmental laws and regulations, we will conduct environmental education and awareness-raisingactivities to enhance the awareness of Group employees regarding environmental conservation.5. Promotion of Environmental CommunicationWe will disclose the status of our environmental efforts to society and engage in dialogue with our various stakeholders.10Environmental Promotion SystemESG Promotion CommitteeThe Group has established the ESG Promotion Committee to deliberate and decide on ESG-related policies and action plans. The Committeeis chaired by the Director in charge of ESG promotion appointed by the President and CEO, and consists of members appointed by theDirector. The contents of the deliberations are regularly reported to the Board of Directors, and are reflected in business activities under thesupervision and direction of the directors and in cooperation with the relevant departments. In the environmental area, the committeedeliberates, manages progress, and provides instructions on all measures based on our environmental policy, including compliance with environmental laws and regulations, TCFD compliance, promotion of energy conservation at owned properties, and acquisition of third-party evaluations.11Target and ProgressGHG (CO2) Emissions and Energy UseWater UseWaste DischargeEnvironment-related Violations and FinesGHG (CO2) Emissions and Energy UseFY2018Result(Base year)FY2023Target（TargetYear）FY2019ResultFY2020ResultFY2021Result6,36612690–GHG (CO2) emissions (t-CO2)Energy use (1,000 GJ)GHG(CO2)Emissionsintensity(kg-CO2/㎡)Energy useintensity(GJ/㎡)Result/TargetBase yearcomparedreduction rateResult/TargetBase yearcomparedreduction rateTotal floor area of targetproperties (㎡)Water Use–866,1706,3946,575137661326814356-5%-27%-24%-38%1.781.691.461.411.22-5%-18%-21%-31%70,664-93,95793,957117,007FY2018Result(Base year)FY2023Target（TargetYear）FY2019ResultFY2020ResultFY2021ResultWater use(㎥)87,889-97,19869,75582,579Water useintensity(㎥/㎡)Result/TargetBase yearcomparedreduction rateTotal floor area of targetproperties(㎡)1.351.321.230.790.74–2.5%-9%-41%-45%65,304-79,07988,597111,64712Waste DischargeTotalWasteIncinerated/redischarge(t)claimedWastedischargeintensity(kg/㎡)RecycledResult/TargetBase yearcomparedreduction rateTotal floor area of targetproperties (㎡)FY2018Result(Base year)FY2023Target（TargetYear）FY2019ResultFY2020ResultFY2021Result602238672344713338100495113.2711.1314.8415.708.37–2.5%12%18%-37%4,5154,5154,51511,986—-*Properties subject to the above exclude those with less than one year of energy monitoring, underutilized properties, condominiums,condominium unit ownership, and real estate for sale.*Occupancy rate is not taken into account in the calculation of floor area intensity.*The Group excludes GHGs (chlorofluorocarbons) other than CO2 due to their extremely small amounts, and calculates and reports onlyCO2.*The GHG emission factor is based on the “Emission Factor by Electric Power Company” published by Ministry of the Environment andMinistry of Economy, Trade and Industry, and uses the emission factor of the electric power company used by the subject building.*Waste emissions are those of Tosei’s head office buildings (Toranomon Tosei Building and Tamachi Tosei Building).*All water use is taken from tap water, and no other water is taken (groundwater, external wastewater, seawater, etc.).Environment-related Violations and FinesThere were no penalties or fines for violations of environment-related laws and regulations (including water-related) or accidents in FY2021.13Climate ChangeOur Approach to Climate ChangeTargets and AchievementsEnvironmental EffortsOur Approach to Climate ChangeThe Tosei Group strongly recognizes the importance of environmental issues and promotes efforts to reduce the burden on the environment,resource recycling, and climate change risk countermeasures to realize a sustainable society. In light of recent changes in the globalenvironment and the urgent issues such as reducing greenhouse gas emissions, we take our corporate responsibility as a real estatecompany very seriously and will strengthen our environmental efforts. We will also recognize and support the importance of the ParisAgreement, other agreements among countries, and government targets on climate change, and based on our environmental policy, we willproactively introduce measures to adapt to climate change including measures that promote energy conservation to contribute to theformation of a low-carbon society.Climate Change-related Promotion SystemManagement and Supervisory BodyBoard of DirectorsDeliberative BodyESG Promotion CommitteeDirector in ChargeNoboru Hirano (CFO and Senior Executive Officer of Administrative Division)Department in ChargeCorporate Management DepartmentSupporting the Recommendations of the Task Force on Climate-related FinancialDisclosures (TCFD)We have expressed our support for the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and are a memberof the TCFD Consortium, an organization of supporting companies in Japan. Based on the TCFD recommendations, we will analyze the risksand opportunities posed by climate change to our business, and strive to further enhance information disclosure.14Targets and AchievementsIn promoting efforts against climate change, we have set the following reduction targets. The base year is set for 2018, and the long-termtarget is through 2023.Targets for Energy-saving and Greenhouse Gas Emission ReductionsDecrease energy consumption and greenhouse gas emissions by 5%, respectively, in terms of basic units inDecrease energy consumption and greenhouse gas emissions by 1%, respectively, in terms of basic units in Long-term targetsfive yearsShort-term targetsone year*Please see page 12 for performance dataEnvironmental EffortsTarget propertiesFixed assets owned by the CompanyCreation of Sustainable Value ~Three Value-Up Codes~In the product planning phase both in the case of new construction and renovation to add value, we examine using eco-friendly equipmentwhich suits property characteristics and we actively adopt products that are eco-friendly in a variety of ways, for example, equipment thatconserves energy and saves resources. Especially when adding value to existing properties after acquisition, the Group considers theadoption of specifications which will help conserve energy and save money and resources based on the “Three Value-Up Codes” for addingvalue across three dimensions: “Security,” “Design” and “Ecofriendly.”CO2 Emission Reduction by Revitalization BusinessTosei’s revitalization business is not only attractive as an investment product, but also leads to the utilization and extension of existingresources and is environmentally friendly.This means that, Tosei’s model as the utilization of existing used properties can reduce totalamount of CO2 generated due to construction by 54% in comparison to the Scrap and Build Model during during 100-year term.(cid:1602)Accordingto our estimation(cid:1603)15Assuming that a newly constructed office building (total floor area: 10,000m2 , steel-framed reinforced concrete structure) will beAssumptionsmaintained for 100 years*1TOSEI Value-Up ModelScrap and Build modelbuilding (2 times in total).are not taken into account.(cid:1566)Repair and maintenance work to be carried out every 10 years (8 times in total), and life-extension work to be carried out once every30 to 40 years (2 times in total).(cid:1566)Lengthening of service life = large-scale repair work for air conditioning, water supply, elevators, water-saving toilets, etc.(cid:1566)Repair work every 10 years (9 times in total), and once every 30-40 years, Demolish the existing building and build a new similar*1 In order to extend the life of the building frame up to 100 years, it is assumed that the neutralization diagnosis of the buildingframe and its treatment have been taken. In addition, CO2 emissions from the work related to neutralization diagnosis and treatmentInstallation of LED Lighting in Existing Office BuildingWe are promoting the installation of LED lighting in our portfolio properties to achieve the reduction target we set in 2019. So far, weinstalled LED lighting in four existing office properties and a Logistics, reducing electricity consumption by almost 20 (cid:20949) 30% on average.Besides reducing electricity consumption and costs, the installation work is also expected to improve tenant satisfaction through betterlighting and easier maintenance.Awajicho Tosei BuildingShinbashi Frontia BuildingShinden LogisticsToranomon Tosei BuildingYotsuya Tosei Building16Participation in Program to Promote Creation of Quake-resistant and Energy-efficientReal EstateIn 2013, Tosei Asset Advisors was selected as a manager of the first real estate fund operated by the general incorporated association RealEstate Sustainability & Energy-Efficiency Diffusion (Re-Seed) in a program to promote creation of quake-resistant and energy-efficient realestate launched by the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of the Environment. Tosei Asset Advisors wasselected as a manager of the second real estate fund in 2014, and again in 2017.Energy Conservation Efforts in Development PropertiesIn the properties developed by the Group, we actively adopt equipment and materials that contribute to the reduction of greenhouse gasesand energy conservation. We will continue these efforts to provide living environments that combine high energy-saving performance andcomfort.ENE-FARM)interlocking)garden, gardenMajor Environmentally-Conscious Equipment InstallationsEnergy-saving water heater (Eco-Jozu,Double-layered glassLED lighting, motion sensor lightingHighly insulated design (equivalent toHighly insulated sashesSolar power generation systemheat insulation performance grade 4)Rainwater utilization equipmentWater-saving faucets, water-savingRecycled materials(rainwater tank, water-retainingtoiletsRooftop greenery, rooftop vegetableElectric car charging facilitiesCar sharing, bicycle rentalDevelopment of Net-zero Energy Housing (ZEH)The Tosei Group is also working to develop houses that meet the ZEH (Net Zero Energy House)standard, and supplied 13 ZEH from December 2020 to November 2021. We are developing productsthat incorporate cutting-edge housing equipment and systems, including solar power generation,energy- and water-saving equipment, and IOT. We will continue to contribute to CO2 reduction throughthe spread and expansion of ZEH.Comodo CASA HigashitamagawagakuenSolar powerHigh performance insulationEnergy meter17Green LeasingTo promote energy conservation in the properties we own, we are working with tenants to conserve energy. We conduct periodic surveys oftenants in our buildings regarding building management and operation systems, facilities, etc., to understand their needs. In addition, weare implementing green leases for operational improvements, mainly for tenants of buildings that have undergone whole-building LEDconstruction, to confirm their willingness to work with owners on various energy-saving activities in terms of building operation. We are alsoworking on economical green leases for some of our properties that return the energy-saving benefits of installing energy-efficientequipment to the owners. Moreover, we are striving to raise energy conservation awareness among building users and curb energy use bydistributing Sustainability Guides, which provide key points for energy conservation activities and show trends in building water, light, andheat consumption, and by displaying posters calling for energy and resource conservation.Energy conservation postersSustainability GuideIn-house Resource and Energy Conservation InitiativesBy establishing an IT infrastructure within the company, meeting materials, decision-making documents, etc. are becoming paperless. Inaddition, we are continuing steady activities such as using electric fans and halogen heaters instead of relying on air conditioners. We arealso actively introducing resource- and energy-saving equipment such as water-saving toilets and motion-sensor lighting. We believe that itis important to make continuous efforts throughout the year to promote resource and energy conservation, and we will continue to educateand implement familiar eco-activities that can be carried out by each and every employee.18Our Approach to BiodiversityEfforts to Protect Urban GreeneryBiodiversityEfforts to Protect EcosystemsOur Approach to BiodiversityEfforts to Protect Urban GreeneryEfforts through BusinessPromotion of GreeningIn accordance with the Group’s environmental policy, we will strive to create urban environments that are in harmony with nature by takingbiodiversity into consideration and working to conserve and green the natural environment. We will also actively participate in local volunteeractivities to raise employee awareness of biodiversity conservation.In order to improve the landscape and reduce the environmental impact, we are working on greening existing real estate and developmentproperties. Specifically, we are planting trees on the rooftops and walls of office buildings, grounds of condominiums and detached houses tocreate green spaces. We are also focusing on rooftop greening, with a total of 3,893 square meters of green space planted so far as of theend of November 2021. We are planning to introduce this system to commercial facilities and hotels under development.THE PALMS Chofu Manor GardenTHE PALMS Sagamihara Park BrightiaTOSEI HOTEL COCONE Ueno Okachimachi19Efforts around the Head OfficeGreen Space around the Head OfficeTamachi Tosei Building is a 30-year-old existing building that has been renovated and occupied by the Tosei Group as its headquartersbuilding from 2021. Over 30% of the more than 1,300 m2 of open space is greened, with a diverse mix of tall trees, medium-sized trees,shrubs, and ground cover, allowing residents to enjoy the changes in the seasons. The canal that runs in front of the building is visited bywild birds, creating an environment where one can enjoy the richness of nature even in the heart of the city. The courtyards on the 5th and13th floors of the head office building are designed to replicate a Japanese garden, with a pond in which carp are kept, and trees in thegarden provide perches for wild birds so that one can hear them chirping.Public open spaceCourtyard (5F)On the rooftop of Toranomon Tosei Building, which was used as the head office building until March2021, we operated a rooftop vegetable garden in order to mitigate the heat island effect, raiseemployee awareness of the environment, and revitalize group communication. We grew flowers andvegetables according to the season and held a “harvest festival” to raise the environmental awarenessof employees through employee-participatory events.Planting seedlingsSocial Contribution ActivitiesTree-planting ActivitiesFor seven consecutive years from 2009 to 2015, we participated as volunteers in the “Umi-no-Mori (SeaForest)” tree-planting event organized by the Tokyo Metropolitan Government. “Umi-no-Mori” is aninitiative to plant saplings on the inner landfill of the central breakwater in Tokyo Bay, which wasreclaimed with garbage and construction soil, and transform it into a beautiful forest to create a venuefor the 2021 Tokyo Olympic and Paralympic Games. Umi-no-Mori is expected to serve as a starting pointfor winds blowing from the ocean to the city center, as well as to absorb CO2, thereby reducing globalwarming and the heat-island effect. It actually was used as a venue for rowing and canoeingcompetitions at the Tokyo Olympics and Paralympics.The Green Feather Fundraising ActivityThe purpose of this fundraising campaign is to support Tokyo’s forest maintenance, training of forest volunteers, and forest andenvironmental education for children. We have been making donations every year since 2007.FY2015 “Umi-no-Mori” tree-plantingevent20Efforts to Protect EcosystemsVolunteer seaside cleanup activitiesWe have been participating in volunteer cleanup activities since 2009, and in 2021, 25 employees participated in the “Tokyo Satoumi Aidfrom Nishi-Nagisa” event to clean up debris in Kasai Marine Park. While Kasai Marine Park is a valuable area in Tokyo where one canexperience biodiversity close at hand and was registered under the Ramsar Convention in 2018, it has long been plagued by debris driftingfrom the Kyu-Edo River and Arakawa River. The event also included a tally of the types and quantities of trash collected to help investigatethe causes of the drifted trash. Through this activity, we aim to raise employee awareness of environmental and social issues such as trashreduction and ecosystem conservation.*Cleanup events are conducted with adequate infection prevention measures in place.Plastic garbageCleaning upParticipants and marine debris collectedEfforts in Development PropertiesWe are working to enhance the planting of trees in our urban development of condominiums and detached houses. In selecting tree species,we have taken steps to ensure that residents can enjoy seasonal changes, and we have taken biodiversity into consideration by includingfruit trees. The company also emphasizes harmony with the surrounding natural environment, and at THE Palms Court Hibarigaoka, adetached house, rich plantings form a green network with the adjacent Nishi-Tokyo Ikoi-no-Mori Park, contributing to the preservation of thelocal ecosystem. In addition, at “THE Palms Yutenji Master Place,” a condominium, existing trees have been transplanted to the plaza on thesite to create a streetscape that blends in with the surrounding nature without spoiling the greenery of the land.THE PALMS Yutenji Master PlaceTHE PALMS Yutenji Master Place21Environmental Pollution and ResourcesApproach to Environmental Pollution and ResourceConservationPollution Prevention EffortsWaste Reduction EffortsResource Conservation EffortsApproach to Environmental Pollution and Resource ConservationIn addition to complying with all applicable laws and regulations regarding environmental pollution and taking appropriate measures, theTosei Group Environmental Policy stipulates that the Group will strive to prevent environmental pollution, promote resource conservationsuch as reducing, reusing and recycling, and promote efforts to reduce environmental impact and create a material-cycle society.Pollution Prevention EffortsRisk ManagementWhen considering the acquisition of land or buildings, a “Real Estate Purchase Check Sheet” is completed and reviewed for all projects aspart of the property purchase due diligence flow. We conduct a geo-historical survey of the property to be acquired and, if necessary, a soilcontamination survey. In addition, depending on the age and structure of the property, we conduct asbestos inspections and other hazardousmaterial inspections to ensure risk management against contamination.Soil Contamination CountermeasuresAs part of the property purchase due diligence, further contamination investigations are conducted according to the results of the geo-historical survey. If the results confirm contamination by hazardous substances, development activities are conducted after appropriate soilimprovement and spread prevention measures are taken by a designated contaminated soil treatment company in accordance with the SoilContamination Countermeasures Act.Hazardous Materials TreatmentWhen acquiring existing properties and undertaking renovation and demolition work, we conduct asbestos investigations and thoroughlyconfirm with the demolition and construction contractors in advance to comply with relevant laws and regulations, and take appropriatemeasures to prevent the dispersion of harmful substances such as asbestos and CFCs before carrying out the work. In the fiscal year endedNovember 30, 2021, there was no discharge or treatment of waste oil, mercury, PCBs, etc., which are specially controlled industrial wastes.In the event that treatment or management of such wastes becomes necessary at any of our buildings, we will dispose of them appropriatelyin accordance with laws and regulations. In the development of our buildings, we use building materials that meet JIS and JAS standards forlow emission of formaldehyde, a substance that causes sick building syndrome, in an effort to provide safe and secure housing.22The following reduction targets have been set for waste reduction. The base year is set for 2018, and the long-term target is set until 2023.Waste Reduction EffortsWaste Reduction Targets and ResultsWaste Discharge Reduction TargetsLong-term targetReduce waste discharge intensity by 2.5% in five yearsShort-term targetReduce waste discharge intensity by 0.5% in one yearTarget PropertiesFixed assets owned by the Company (*)*Tosei’s head office buildings*Please see page 13 for performance data3R (Reuse, Reduce, Recycle) InitiativesRecycling of Plastic Bottle CapsWe are participating in an initiative to recycle plastic bottle caps. We have collection boxes next to vending machines on each floor to collectplastic bottle caps.Waste Reduction and SeparationEfforts through Tenant CommunicationWe conduct periodic surveys of tenants in our properties regarding building management and operationsystems, facilities, etc. to understand their needs. In terms of waste reduction, separation, and recycling,we have been taking various measures, such as putting up posters encouraging cooperation in separationand recycling, installing trash cans for separation, and posting information on how to dispose of, separate,and recycle trash at trash disposal sites.Tenant education posterResource Conservation EffortsWater Resource ConservationIn promoting efforts to conserve water resources, the following reduction targets have been set. The base year is set as 2018, and the long-term target is set until 2023.Water Use Reduction TargetsLong-term targetReduce water use intensity by 2.5% in five yearsShort-term targetReduce water use intensity by 0.5% in one yearTarget PropertiesFixed assets owned by the Company*Please see page 12 for performance data23Efforts through the Real Estate Revitalization BusinessIn our real estate revitalization business, existing buildings are utilized to enhance their value, which has less impact on the environment andconserves resources compared to rebuilding. In order to make the most of the individuality of a wide variety of existing properties andfurther enhance their attractiveness, we consider a revitalization menu with “Security,” “Design” and “Ecofriendly” as important guidelines,providing optimal value for owners and tenants.Utilization of Idle Company HousingIn recent years, company housing has been increasingly decommissioned and left vacant as companies reassess their assets, contributing tothe growing problem of vacant housing in cities. We are working to supply new rental housing to the market while making effective use ofthe existing buildings by purchasing unused company housing and enhancing the value of the property.Example 1: T-Rhythmic SOKAThis property was built as a company dormitory and had been vacant. In addition to soundproofing all ofthe studio units, a lounge for concerts and a storage room were newly built, and the property wasrevitalized as a rental apartment for music lovers.Example 2: T’s garden KitakashiwaThis large property was once developed as a corporate housing for families, which was transformed into arental apartment with three new common facilities: a study room, kids’ room, and party room, which are asextensive as those in condominiums.Example 3: ARDEN FujigaokaA former company dormitory was extensively renovated and revitalized as a share house. Existing spacewas effectively utilized by converting an unneeded shared bathroom into a lounge and renovating the hotwater supply room into a shower room.Lounge where concerts can be heldSpacious kids’ roomLounge as a place for socializingAdoption of New Eco-friendly Materials for Employees’ Business CardsThe Group changed the material of business cards used by the Group’s employees to LIMEX. This material is eco-friendly because almost no water or trees are used. The Group aims to reduce the amount of paper used and raiseenvironmental awareness among employees by replacing business cards, the use of which reaches 500 pieces perperson every year, with those made of eco-friendly materials.24Sustainability FinanceLoans Based on Environmental AssessmentGreen BondsLoans Based on Environmental AssessmentWhen procuring funds from financial institutions for our real estate revitalization and development business, we take advantage of loanprograms that banks evaluate “companies with ESG-conscious management.” Under Hokuriku Bank’s “Eco-Lead Master” environmentalassessment loan program, we have received an “S-rank” rating a total of 10 times since 2010, and have received preferential interest rates.In the environmental rank evaluation of the loan system, we were evaluated for our “environmentally friendly business activities” and “ESG-conscious initiatives” being promoted throughout the Group. In addition, we received an “A-rank” for “good ESG/SDGs initiatives andinformation disclosure” under SMBC’s “ESG/SDGs evaluation-type loan.In addition, we are actively working on financing utilizing evaluations by external institutions, and in 2021, we obtained a “Green 1” in JCRGreen Loan Rating from Japan Credit Rating Agency, Ltd. (JCR) for a loan from Aozora Bank for the construction of a logistics facility.Green BondsTosei Reit Investment Corporation, which has been actively working on green finance, established a “Green Finance Framework” and issued green bonds in 2021, receiving the highest rating of “Green 1 (F)” from JCR. Through green finance, the corporation aims to further enhance its ESG initiatives and strengthen its fund-raising base by expanding the investor base interested in ESG investment.25Environmental Real Estate CertificationsDBJ Green Building CertificationBELS (Building-Housing Energy-efficiency Labeling System)CASBEE (Comprehensive Assessment System for BuiltEnvironment Efficiency)DBJ Green Building CertificationProperty NameRankYear of acquisitionTotal floor areaToranomon Tosei Building★★（2 Star）Koishikawa Tosei Building★（1 Star）May, 2020May, 20204,515.24㎡3,863.62㎡Toranomon Tosei BuildingKoishikawa Tosei BuildingWhat is DBJ Green Building Certification?DBJ Green Building Certification is a certification system established by the Development Bank of Japan (DBJ) in April 2011 to serve asa bridge between businesses, financial institutions, and investors through the evaluation of environmentally and socially conscious realestate. In addition to the environmental performance of the building, the program supports ESG initiatives for existing buildingsthrough a comprehensive evaluation that includes consideration of the social demands of the various stakeholders surrounding theproperty.BELS (Building-Housing Energy-efficiency Labeling System)Property NameRankYear of acquisitionTotal floor areaAwajicho Tosei Building★★★（3 Star）May, 2021Shinden Logistics★★★★（4 Star）December, 20211,582.79㎡6,384.27㎡26Awajicho Tosei BuildingShinden LogisticsWhat is BELS (Building-Housing Energy-efficiency Labeling System)?BELS (Building-Housing Energy-efficiency Labeling System) is one of the third-party certification systems based on the “Guidelines forEnergy Efficiency Labeling of Buildings (Guidelines for Labeling Energy Consumption Performance of Buildings)” established by theMinistry of Land, Infrastructure, Transport and Tourism.CASBEE (Comprehensive Assessment System for Built Environment Efficiency)Property NameType of CertificationRankYear of acquisitionTotal floor areaRank AMay, 200914,449.47㎡Kamata Tosei BuildingRank ADecember, 20098,354.58㎡Heiwajima ToseiBuildingToranomon ToseiBuildingCASBEE for NewConstructionCASBEE for NewConstructionCASBEE for Real EstateRank ASeptember, 20154,515.24㎡Kamata Tosei BuildingToranomon Tosei BuildingWhat is CASBEE (Comprehensive Assessment System for Built EnvironmentEfficiency)?perspective.CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a system for evaluating the environmentalperformance of buildings. In addition to aspects of environmental load reduction such as energy saving, resource saving, and recyclingperformance, it also includes consideration of indoor comfort, landscape, and biodiversity, and is a comprehensive check from a broad*The above includes sold properties and properties for which certification has expired.27 SocialLabor EnvironmentBasic Approach to the Labor Environment Respect for Human RightsSafety and HealthWork-life BalanceHuman Resource ManagementSocial Performance DataBasic Approach to the Labor EnvironmentWe recognize that the creation of a healthy, safe, and comfortable work environment for all employees is an important factor for sustainablecorporate growth, and we promote occupational health and safety activities, including the prevention of occupational accidents, and healthpromotion initiatives. We respect the human rights of all people who work for our group, do not tolerate any discrimination or harassment,and strive to develop human resources to become professionals with a good heart and build a favorable work environment.Respect for Human RightsOur Approach to Human RightsThe Tosei Group’s approach to respect for human rights, employee ethics and norms, and occupational health and safety is set forth inpolicies and internal regulations, including the “Tosei Group Human Rights Policy” and the “Tosei Group Ethics Code.” These policies, norms,and regulations were established through meetings of the Management Committee and Board of Directors of Tosei Corporation, and areposted on the Company’s website and intranet, as well as distributed in the Risk Compliance Guidebook, to ensure that all employees arefully aware of them. In addition, periodic education is provided to all employees to promote correct understanding of these policies.The Tosei Group Human Rights PolicyThe Tosei Group respects the fundamental human rights set forth in the International Bill of Human Rights and the Guiding Principleson Business and Human Rights. We support and respect the following items as basic labor rights.１．Prohibition of discriminationWe prohibit all forms of discrimination based on race, religion, gender, age, sexual orientation, disability, or nationality.２．Prohibition of harassmentWe prohibit all forms of harassment, including sexual harassment and power harassment.３．Prohibition of child laborWe prohibit all forms of child labor.４．Prohibition of forced laborWe prohibit all forms of forced labor.５．Reduction of excessive workWe implement appropriate working hour management to reduce excessive work.６．Respect for freedom of association and the right to collective bargainingWe respect freedom of association and the right to collective bargaining.７．Payment of wages above the minimum wageWe comply with the Minimum Wage Law and other labor laws and regulations to pay wages to our employees above the minimumwage.８．Ensuring health and safetyWe strive to prevent occupational accidents and create workplaces where employees can work in good health and safety.28The Tosei Group Ethics CodeTo fulfill our corporate social responsibility, we will always attach importance to a high standard of ethics and a law-abiding spirit whilepursuing our corporate philosophy, and will conduct our business activities in accordance with the following Code.1.Sustainable economic growth and resolution of social issuesWe will strive for sustainable growth and the resolution of social issues by always putting ourselves in our customers’ shoes andpositioning safety and security at the heart of the products and services we develop and provide, and by forever remaining humble andWe will disclose the necessary corporate information in a fair, timely and appropriate manner in order to obtain proper evaluation andconducting business activities in good faith.2.Fair Information Disclosureunderstanding from investors and wider society.3.Fair and transparent decision-makingWe will make decisions based on appropriate and explainable reasoning, in accordance with laws, regulations and internal rules.4.Thorough compliance with laws and regulations and fair dealingsWe will understand both domestic and international laws and regulations and will never engage in any conduct that violates suchlegislation, or in any fraudulent conduct. We will also engage in fair and free competition and appropriate transactions, and will avoidbecoming involved in bribery or other similar giving or receiving of unfair advantage in any way.We will not have any relationships with antisocial forces and will conduct thorough and organized crisis management to prepare for a5.Comprehensive crisis managementterrorism, cyber-attack, natural disaster or other crisis.6.Protection of confidential informationof business partners, and other confidential information.We will protect and strictly manage the material information of the Tosei Group, the personal information of customers, the information7.Respect for human rights and creation of positive work environmentsWe will respect human rights and will not tolerate any behavior which violates the dignity of individuals including discrimination andharassment. We will also strive to develop human resources and create working environment with mutual trust and decency.8.Initiatives to address environmental issuesWe will contribute to the realization of a sustainable society by implementing initiatives to reduce our environmental impact, recycleresources and address the risk of climate change, based on a strong awareness of the importance of environmental issues.We will seek harmony with local communities and the global community as a good corporate citizen and actively and continuously9.Social Contributionpromote activities that contribute to society.10.Commitment of Top ManagementThe Tosei Group’s Top Management recognizes that it falls to them to embody the spirit of this Code and, in the event of a violation ofthis Code, top management will proactively take charge of resolving the issue, endeavor to identify the cause and prevent arecurrence, demonstrate accountability, including the disclosure of information to markets and society in a timely and appropriatemanner, and fairly and strictly punish those involved, including themselves.29Efforts to Respect Human RightsAddressing Labor IssuesProhibition of child laborwhen we receive an application for employment.Prohibition of forced laboragreement with the applicant.Payment of salary above living wageWe require applicants to be at least 18 years of age to be considered for employment, and we are required to verify the age of applicantsIn hiring, we assume that the applicant has applied for the position, and after one or more employment screenings, we notify theapplicant of his/her acceptance. Upon entering the company, working conditions are presented and employment is initiated uponOur basic policy is not only to comply with minimum wage regulations, but also to pay wages that exceed them. The average annualsalary for the fiscal year ending November 30, 2021 is 7.73 million yen.(Tosei Corporation)Respect for Human Rights in the Supply ChainWe confirm the status of our suppliers’ efforts to respect human rights in the supply chain. We have established a Sustainable ProcurementManual and conduct an ESG questionnaire for suppliers whose annual transaction value exceeds a certain level, to check their efforts toprohibit child labor, forced labor, and harassment, ensure occupational health and safety, comply with laws and regulations, giveconsideration to the environment, and implement risk management. The ESG Promotion Committee then reviews the results and discussesIn 2021, 11 major clients in the real estate revitalization, development, and leasing businesses were surveyed and reviewed in thewhether or not to continue transactions with them.Committee.Efforts to Prevent HarassmentIn addition to distributing the “Harassment Handbook” to all Group officers and employees to provide specific definitions and examples ofharassment, we are working to promote understanding and prevent harassment by distributing educational content to the Risk CompliancePortal on the intranet and providing online courses by outside instructors. In addition, “Personnel, Labor and Management Training” isprovided to managers, which includes training on how to respond to incidents of harassment, what they should pay attention to asmanagers, and how to prepare themselves for harassment prevention.Harassment Consultation Desk and Working Style Consultation DeskThe Group has established dedicated consultation desk (via e-mail or telephone) in the human resources sections of each Group company forthe purpose of preventing all forms of harassment and responding promptly and appropriately in the event that harassment does occur. Thisharassment consultation desk is available to all Group employees regardless of their employment status. In resolving the problem, we willconfirm the facts through hearings with the reporter, the subject of the report, as well as cooperating parties, etc., and take appropriatemeasures to prevent recurrence. If you wish to consult or report anonymously, you may do so through the dedicated anonymousconsultation desk. In addition, we ensure that the privacy of the informant is protected and that confidentiality is strictly observed so thatthe informant will not be disadvantaged when using the harassment consultation desk. If an investigation confirms that harassment hasoccurred, disciplinary action will be taken against the harasser in accordance with the rules on rewards and punishments. In addition to theharassment consultation desk, the Company also provides a consultation desk regarding working styles and personnel systems.In addition to the harassment consultation desk, we have also established the “Tosei Hot Line,” a whistle-blowing desk for the entire Group,which accepts reports from employees and officers of the Group on any conduct that violates or may violate laws and regulations, for theprevention and early detection of violations of laws and regulations and corruption, including bribery.30Safety and HealthApproach to Safety and Health in the WorkplaceWe recognize that ensuring health and safety in the workplace is an important issue, and we strive to prevent occupational accidents andpromote the creation of a healthy and safe work environment in which all employees can maximize their abilities. We have established the”Health Committee” as a promotion system for safety and health, and the committee meets monthly and reports to the Board of Directors.Promotion SystemHealth CommitteeManagement and Supervisory BodyBoard of directorsChairman of the Health Committee: Noboru Hirano, CFO and SeniorExecutive OfficerPerson in Charge and Matters ofmembers, and the meeting is held monthly in the presence of anRepresentatives from each department participate as committeeDeliberationsindustrial physician. The committee reviews the overall workingenvironment, including the status of the workplace environment,health checkups, and overtime hours, and provides feedback toemployees. Reports are also made to the Board of Directors on amonthly basis.OfficePersonnel departmentHealth ManagementHealth CheckupStress CheckIn addition to the legally mandated annual medical checkup, employees aged 35 and over are eligible for company-subsidized thoroughphysical examination to detect illnesses at an early stage and further promote their health.All employees had health checkups for the fiscal year ended November 30, 2021.(Tosei Corporation)The stress check system is implemented once a year for the purpose of primary prevention of mental health problems by helping employeesrecognize and cope with their own stress and improving the work environment.All employees had stress check for the fiscal year ended November 30, 2021.(Tosei Corporation)Cooperation with Industrial PhysicianFor employees who work overtime above a certain level, including managers, an interview with an industrial physician is mandatory, ameasure that exceeds the legal standard.31In addition to regular health checkups, we offer health promotion programs that employees can easily participate in on a voluntary basis. Wealso continue to offer “health counseling sessions” by public health nurses, “locomotive syndrome tests,” and a “refreshment program”Health Promotion Programsincorporating yoga for relaxation every year.*Cancelled in 2020 and 2021 due to the COVID-19 pandemic.Locomotive syndrome testDiagnosis of lung ageInterview with public health nursesMental healthcareQuestionnaires and training on mental health care are conducted for all employees under the guidance of affiliated industrial physicians. Inaddition, in cooperation with affiliated hospitals, we have set up a dedicated desk where employees can directly seek health consultation.Measures to Prevent the COVID-19 InfectionIn response to the spread of the COVID-19 infection, we implemented measures to ensure the health and safety of employees, their families,business partners, and others, such as requiring the wearing of masks, installing disinfectants, ventilating office and meeting rooms,encouraging hand sanitization, and installing acrylic panels. In addition, working from home is encouraged, and a teleworking environmenthas been prepared by distributing mobile terminals, utilizing the cloud, building PCs with external connectivity, and establishing various otherinfrastructure.Occupational Safety and HealthEmployee Safety and HealthWe recognize the importance of a healthy, safe, and comfortable work environment for all employees in order to achieve sustainablecorporate growth, and we are promoting occupational health and safety activities, including the prevention of occupational accidents, and thepromotion of employee health. In the event of an occupational accident, the Human Resources Department, which is the main managementdepartment, will promptly confirm the situation and, in cooperation with the department where the incident occurred, report to and consultwith various meetings and related organizations in an effort to contain the situation and take appropriate measures. In addition, we promptlyformulate and implement countermeasures, ensure that all employees of the Group are fully aware of these measures, and continuouslyfollow up to prevent recurrence.Only one occupational accident occurred in the fiscal year ended November 30, 2021.(Tosei Corporation)Safety and Health in the Supply ChainWe confirm the status of our suppliers’ efforts to respect human rights in the supply chain. We have established a Sustainable ProcurementManual and conduct an ESG questionnaire for suppliers whose annual transaction value exceeds a certain level, to check their efforts toprohibit child labor, forced labor, and harassment, ensure occupational health and safety, comply with laws and regulations, giveconsideration to the environment, and implement risk management. The ESG Promotion Committee then reviews the results and discusseswhether or not to continue transactions with them.In 2021, 11 major clients in the real estate revitalization, development, and leasing businesses were surveyed and reviewed in theCommittee.Percentage of Offices with OHSAS 18001 CertificationCurrently, we have no offices with OHSAS 18001 certification.32Work-life BalanceWorking Hours ManagementIn addition to complying with the Labor Standards Law, the Industrial Safety and Health Law, and other domestic laws and regulations, wealso manage daily attendance through our attendance management system, introduce “no overtime days,” prohibit overtime after 9:00 p.m.in principle, encourage morning work, and implement other measures to correct long working hours and comply with the 36 agreements.The results of monthly monitoring of employee overtime and use of paid leave are reported to the Health Committee, and information isshared to promote reductions in overtime hours and use of paid leave.The average overtime hours in FY2021 was 26.5 hours per month.(Tosei Corporation)Encouraging Employees to Take Paid LeaveTo create an atmosphere that encourages employees to take paid leave, we have introduced “anniversary leave,” which allows employees totake a day of paid leave once a year on an anniversary date they voluntarily set, and “planned annual leave (1 day),” which allowsemployees to take a summer vacation for a longer period of time.The paid leave utilization rate for the fiscal year ended November 30, 2021 was 65.4%.(Tosei Corporation)Various Leave SystemsTo support changes in life due to life stages such as childbirth, childcare, and nursing care, we have established various systems includingmaternity leave, childcare leave, and nursing care leave.In the fiscal year ending November 30, 2021, the maternity leave utilization rate and the childcare leave utilization rate were both 100%.(Tosei Corporation)Flexible Working SystemsShort-time WorkWorking From Homefrom home.In-house Club ActivitiesEmployees who care for children up to elementary school age and those who care for family members in need of nursing care* may reducetheir working hours in 30-minute increments, up to a maximum of two hours per day.*The coverage is three years from the start date of use per family member in need of care for.6 employees used the short-time work during the fiscal year ended November 30, 2021.(Tosei Corporation)As a measure to prevent the spread of the COVID-19, we are promoting the use of cloud services and web meetings to encourage workingWe provide subsidies for in-house club activities to stimulate communication among employees. So far, a total of 10 cultural and athleticclubs have been established, providing valuable opportunities for communication with employees in departments and group companies withwhich they have little contact in their daily work.33Family DaysWe hold family days once a year to give children a better understanding of their parents’ job andworkplace. In 2019, a total of 20 families or 62 family members attended the family day and enjoyedactivities such as swapping business cards, a stamp rally around the offices, and making models ofhomes. The day also served as a social occasion for employees and their family members to get to knoweach other.*canceled in 2020 and 2021 because of the spread of coronavirus infectionEmployee Satisfaction SurveyBusiness card exchange experiencewith executivesWe implemet employee satisfaction surveys to gain an understanding of employees’ attitudes toward their work and the workplace environment, which is reflected in various personnel policies.In the survey for the fiscal year ended November 30, 2021, 59.6% of employees selected the top 2 items out of 5 in the “Job Satisfaction” question.(Tosei Corporation)Human Resource ManagementApproach to Human Resource DevelopmentHuman Resource Development Based on the Group’s Corporate PhilosophyIn order to realize the Tosei Group’s goal of “becoming a group of seasoned professionals who create new value and inspiration in all aspectsof real estate,” our human resource development goal is to create an organization in which each and every employee can strive to improvetheir knowledge and skills, and maximize their motivation and abilities. We value diversity in the hiring, development, and promotion ofhuman resources, and provide equal opportunities for growth and success to those who continue to pursue our corporate philosophy,regardless of gender, nationality, or employment history.Human Resource Development PolicyThe Group positions human resource development as a total system that includes the creation of training opportunities for employees, aswell as promotion, transfer, and evaluation, and focuses on “training from various perspectives,” “on-the-job training,” “support for self-development,” and “cooperation with various personnel systems.”Training from various perspectivesIn the rank-based training, employees acquire the skills and abilities to perform their jobs in a systematic, intensive, and experientialmanner. Job-specific training provides systematic, intensive, and experiential learning of the value-added competencies defined for eachorganization and job category. Training common to all employees (training in essential knowledge an