Hankyu Hanshin REIT, Inc.

TSE Code:8977

Sustainability

Sustainability Policy and Promotion System

Sustainability Policy

Hankyu Hanshin REIT, Inc. (hereafter "HHR") and Hankyu Hanshin REIT Asset Management, Inc. (hereafter "HHRAM") recognize that it is essential for their medium-to-long-term competitiveness and the continued growth of the investor value of HHR to act with consideration of environmental, social and governance (hereafter "ESG") issues, and aim to practice them through real estate investment management by establishing the "Sustainability Policy" that conforms to the management philosophy and the concept of social contribution and environmental conservation of the Hankyu Hanshin Holdings Group.

  1. Realization of "a city in which we want to live now and in the future" that can contribute to the sustainable development
    We aim to contribute to the sustainable development of society and towns through business activities that take environmental and social issues into consideration through dialogue and collaboration with tenants and local communities.
  2. Conservation of the global environment
    We aim to conserve the global environment such as a shift to a decarbonized society by initiatives for energy-conservation and renewable energy, and realization of a recycling-based society by initiatives for water saving, waste reduction and such through our real estate investment management business.
  3. Environmental and social considerations in collaboration with stakeholders
    We seek the cooperation of with suppliers involved in the management and renovation of real estate, and collaborate and strengthen engagement with tenants to reduce the environmental burden of our properties and promote social considerations.
  4. Respect and development of human resources
    Each and every executive and employee involved in our business is our irreplaceable asset. We strive to create a healthy working environment that can maximize the diversity of personality and ability of our employees, and aim to improve our business competitiveness through proactive talent development.
  5. Enlightenment on ESG
    Our executives and employees deepen their understanding and ability to practice ESG consideration through our continuous implementation of education and enlightenment activities.
  6. Compliance with integrity
    We promote compliance not only to observe the minimum required legal compliance but also to maintain our integrity with the aim to meet the expectations of all our stakeholders such as investors, tenants, local communities, suppliers, executives and employees.
  7. Ensure ESG information disclosure and transparency
    We strive to disclose information on ESG to our stakeholders in a timely and appropriate manner, and to ensure transparency through acquiring external evaluations such as environmental certifications.

Sustainability Promotion System

In order to put the "Sustainability Policy" into practice, HHRAM has established the "Sustainability Promotion System Regulations," with the purpose of establishing various policies concerning sustainability. The Sustainability Promotion System Regulations establishes basic policies, etc., for internal systems, collaboration with external stakeholders, and information disclosure. Within this system, the "Sustainability Promotion Committee" has been set up for decision-making processes related to sustainability.
The Sustainability Promotion Committee is comprised of the President and Representative Director, who acts as the Committee Head, the Director in charge, who acts as the Committee's Operating Officer, full-time Directors, and Department or Office General Managers. The Committee meets at least once every three months (four times in fiscal 2022, four times scheduled for fiscal 2023).
In addition to considering and drafting various policies, targets, response to climate change, response to DEI*, and other diversified measures concerning sustainability, the Sustainability Promotion Committee also reports appropriate information to the Executive Meeting of HHR. As for our governance structure, please refer to Corporate Governance.
*DEI stands for diversity, equity and inclusion.

Sustainability Promotion System

Conceptual Diagram of the Environmental Management System (EMS) based on the PDCA cycle

Materiality

HHR and HHRAM will contribute to the achievement of the SDGs (Sustainable Development Goals) and the achievement of medium-to-long-term growth of HHR through initiatives for the following material issues (Materiality).

* This table can be scrolled horizontally.

  Important theme Action policy KPI  SDGs
E
(Environment)
Promotion of environmental conservation Promote environmental conservation activities that contribute to the realization of a decarbonized society and a recycling-oriented society
  • GHG emissions intensity
    35% reduction by FY2030 (compared with FY2018 level), and net zero by FY2050
  • Water consumption intensity
    10% reduction by FY2030 (compared with FY2018 level)
07 12 13
S
(Social)
Success of each employee Foster a corporate culture enabling employees to maximize their individual personalities and abilities, and promote next-generation training
  • Continuously certified as Health & Productivity Management Outstanding Organization
  • Continuously organizing original training
    programs (HHRAM seminars)
03 04 05 08
Improvement of well-being of customers (tenants, etc.) Promote the improvement of ES and CS, and pursue the improvement of satisfaction
  • Continuously conducting tenant satisfaction
    surveys (With directly managing properties)
03 09 11 12
Contribution to the development of local communities Contribute to urban development through collaboration and co-creation with local communities
  • Number of programs contributing to local
    communities (At directly managing community based retail facilities)
09 11 14 15
G
(Governance)
Implementation of thorough compliance and risk management Strengthen risk response and ensure compliance regarding interested party transactions, etc.
  • Attendance rate of compliance trainings
16 17
Promotion of information disclosure to stakeholders Adhere to transparency through timely and appropriate disclosure of financial and non-financial information and dialogues
  • Number of sustainability report issues
16 17