Basic Policy on Sustainability

Fukuoka REIT Corporation carries out various activities through the sharing of ideas on sustainability with Fukuoka Realty Co., Ltd.

Basic Policy on Sustainability

Please refer to Fukuoka Realty’s website regarding the sustainability policy and framework.

Fukuoka Realty Co., Ltd.（Sustainability）

Materiality

Fukuoka Realty is taking steps to identify materiality (important issues to address) in its sustainability initiatives based on the requests and expectations of its stakeholders and the expected impact on and importance to FRC. By promoting initiatives based on materiality policies and targets derived through cooperation with stakeholders, Fukuoka Realty targets sustainable growth at FRC alongside contributions toward solving social issues.

Materiality		Policies and targets	KPIs and targets	Related SDGs
Environment	Addressing Climate Change	・ Coordinate with Property Management and Building Management companies to manage and reduce greenhouse gas emissions, contributing to the preservation of nature in Fukuoka and Kyushu.	・ (by 2030) 35% reduction in CO2 emissions (compared with 2019, basic unit)
Environment	Resource circulation and efficient utilization	・ Coordinate with Property Management and Building Management companies to enhance the efficient use of resources (energy and water) and promote the recycling of waste and water, contributing to the preservation of nature in Fukuoka and Kyushu.	・ (by 2030) 75% recycling rate for waste
Environment	Natural disaster preparedness	・ Contribute to the safety and security of tenants and the local community by conducting regular risk assessments of owned properties to maintaining and enhancing real estate resilience.	・ (by 2030) 85% Green Building Certification rate or higher
Environment	Business operations for resolving environmental issues	・ Enhance asset value by conducting regular performance and functionality assessments of owned properties, and updating outdated features. ・ Increase asset value and improve appeal to tenants by obtaining green building certifications and visualizing building performance.	・ (by 2030) 85% Green Building Certification rate or higher
Society	Creation of pleasant workplaces（Asset management company）	・ Strengthen human capital management by incorporating diverse perspectives and providing a work environment that enhances employee performance. ・ Improve business quality and strengthen operational capabilities by enhancing employee education systems and encouraging qualification acquisition.	・ Training per employee (number of times) ・ Office environment improvements (number of instances)
Society	Improvement in tenant engagement	・ Increase tenant satisfaction and achieve stable property operations by establishing an engagement cycle with tenants, understanding the diverse business needs of domestic and international clients, and improving facility management.	・ Conduct regular tenant satisfaction surveys (all properties)
Society	Contributions toward boosting the attractiveness and revitalization of Fukuoka and Kyushu	・ Aim to create a society where the people of Fukuoka and Kyushu can showcase their competitiveness and uniqueness, ultimately enhancing asset value, by attracting domestic and international tenants through the dissemination of information about the strengths and appeal of Fukuoka and Kyushu, and by collaborating with the local business community to foster regional economic development.	・ Join and participate in local economic organizations ・ Hosting of community exchange events (number of events) ・ Join and participate in area management organizations ・ Continued participation in activities that contribute to the community (number of times)
Governance	Compliance/Risk management	・ Aim to maintain corporate value and increase trust from stakeholders by ensuring compliance with laws and regulations, eliminating conflicts of interest in transactions with stakeholders, and developing and operating internal systems for appropriate risk management, while also strengthening employee awareness of compliance.	・ Compliance training (number of times)
Governance	Information disclosure and dialogue with stakeholders	・ Build trust with stakeholders by disclosing financial and non-financial information in a timely and appropriate manner, ensuring strict compliance with the Corporate Governance Code, and engaging in proactive dialogue. Incorporate the feedback and requests received into business strategies.	・ Dialogue with investors (number of times) ・ Employee ESG training (number of times)