TLC REIT Management Inc. (the “Company”) was established in April 2017 through the reorganization as an asset management company that manages Activia Properties Inc., Comforia Residential REIT, Inc., and Broadia Private REIT, Inc.

We provide asset management services under the management philosophy “Our aim is to earn the trust of all stakeholders so that we can contribute to social development while aiming to maximize unitholder value.”
In recent years, environmental issues related to climate change, work-style reform, and cooperation with local community have all become familiar topics both in Japan and globally. Corporate action regarding these issues are perceived as sources of risks by unitholders and investors, while generating expectations for creation of new values and business opportunities. We recognize that society requires corporations to promote strategic ESG (environment/society/governance) efforts, and commitment to these issues are increasingly contributing to corporate value enhancement.
Under these circumstances, we established our Sustainability Policy in April 2019, as the basic policy for contributing to the development of sustainable society to enhance active and specific promotion of sustainable development. As a member of the Tokyu Fudosan Holdings Group (the “Group”), we recognized the material issues (materiality) identified by the Group. In July 2019, we extracted significant medium- to long-term societal issues based on environmental efforts by each REITs to identify their materiality and shared them with the REITs. In addition, it should be noted that as a Group member, we share the notion that it is essential for business operation and is expected to all companies to respect the human rights of employees and other stakeholders involved in the Group's business, which is based on the Tokyu Fudosan Holdings Group Human Rights Policy announced in January 2020.

Furthermore, we established the Sustainability Department under the Corporate Management Division in April 2021 with aim to translate the Sustainability Policy into concrete measures and enhance functionality of those measures. With further strengthening relationship with all our stakeholders, we will earnestly engage in tasks.

Our business environment is dramatically changing by such as digital transformation, transition towards carbon neutral society, and life-style diversification. Under such circumstances, in line with our long-term business plan established in April 2021, we will continue to work diligently to further enhance the asset under management, while providing business operation which contributes to solve diverse social problems, and to be an asset manager of choice by all our stakeholders.

As a member of the Tokyu Fudosan Holdings Group (the “Group”), the Company recognizes the materiality established by the Group and identified its materiality by extracting significant medium- to long-term societal issues based on environmental efforts by each REIT. This materiality has been shared with each REIT.

Identification process

Materiality was identified by select cross-divisional members of the Company.

Awareness and organization of social issues

In preparing discussions for Materiality, societal issues related to each REIT and the Company were extracted by referencing the Group Integrated Report; materiality; GRI Standards; relevant SDGs; ESG assessments for the real estate sector; and issues recognized by the industry association.

Integration and consolidation of issues

With respect to the above stated societal issues, existing efforts by each REIT and the Company were summarized, and a materiality short list was created by discussing topics that should be given more significance, with additional consideration to risks and opportunities regarding each issue.

Reflection of opinions from officers and employees

All officers and employees were asked to offer opinions as stakeholders of the Company, and preliminary interview was conducted with executive officers and supervising directors of Each REIT.

Identification of materiality

Based on the interview results, significance of each issue to be addressed by each REIT and the Company was reviewed for appropriateness.
Materiality was identified by the Sustainability Promotion Council and reported to the board of directors of the Company and each REIT.

SDGs strongly related to materiality

Materiality, which is shared between the REIT and Asset Management Company (the Company and each REIT), is identified by considering the impact of our actions on relevant risks and opportunities.
Our aim is to contribute to the Sustainable Development Goals (SDGs) through our commitment to Materiality.