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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・ Enhance asset value by conducting regular performance and functionality assessments of owned properties, and updating outdated features.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)

Main initiatives

Participation in GRESB 2024

GRESB is an annual benchmark assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major European pension funds who played a leading role in launching the Principles for Responsible Investment (PRI). In the 2024 GRESB Real Estate Assessment, FRC received a “4 Stars” for the 4th consecutive year in GRESB Rating, which is based on GRESB Overall Score and its quintile position relative to global participants. It also won a “Green Star” designation for the 7th consecutive year by achieving high performance both in “Management Component” that evaluates policies and organizational structure for ESG promotion, and “Performance Component” that assesses environmental performance and tenant engagement of properties owned.

GRESB Public Disclosure

FRC also received the highest “A Level” for the GRESB Public Disclosure, which assess the width of our ESG disclosure.

Signing of the Principles for Responsible Investment (PRI) (September 2018)

PRI comprises an international network of financial institution investors working to realize six principles for the finance industry, which were established in 2006 under the leadership of then-UN Secretary-General Kofi Annan. PRI encourages the incorporation of environmental, social and governance (“ESG”) issues into investment decision-making processes, aiming to thereby help companies enhance their long-term investment performance and better fulfill their fiduciary duty. As of September 2018, more than 2,000 institutions representing more than US$80 trillion in assets under management have signed on to PRI. Fukuoka Realty agrees with the basic approach of PRI and became a signatory in September 2018.

Signing of the Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) (September 2018)

The Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) were drawn up in October 2011, with the Ministry of Environment serving as secretariat, as guidelines for action by financial institutions seeking to fulfill their roles and responsibilities necessary for the establishment of a sustainable society. Fukuoka Realty agreed to the concept of the principles and became a signatory in September 5, 2018.

Endorsement of TCFD (Task Force on Climate-Related Financial Disclosures) (September 2022)

In September 2022, we endorsed the recommendations of the TCFD (Task Force on Climate-Related Financial Disclosures), which was established by the Financial Stability Board (FSB) to examine climate-related disclosures and how financial institutions should respond. At the same time, we joined the TCFD Consortium, an organization of endorsing Japanese companies.

GRI Content Index

We refer to GRI standards for ESG information on our website.

GRI Content Index (PDF)

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