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, in light of recent changes in the social environment and the increasing expectations of our investors, we conducted a review of our materiality in 2026. In this revision, we have reorganized the issues of higher importance
based on our business characteristics, risks, and opportunities, and identified new material issues.
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.
TLC REIT Management Inc. President & CEO, Akira Kubo
Through the reinforcement of compliance awareness and risk management systems, we align the direction of the entire organization, reduce the risk of misconduct and operational issues, and foster a sound and trustworthy corporate
culture.
We prevent governance failures and organizational rigidity, enhance trust from society and investors, and establish a foundation for sustainable growth. We ensure effective board oversight with a high level of
independence, expertise, and diversity, and provide timely and appropriate information disclosure while promoting sound and flexible decision-making.
Addressing Climate Change — Achieving Cost Reduction and Enhanced Competitiveness
By promoting environmentally responsible operations—such as reducing GHG emissions, lowering water consumption, and advancing resource circularity—we will reduce property operating costs and deliver performance that exceeds
the expectations of investors and tenants who prioritize environmental performance. Furthermore, by mitigating disaster and regulatory risks and enhancing property value, we strengthen competitiveness and achieve property
management that continues to be chosen by investors and tenants.
Human Capital Development and Well-being — Strengthening the Driving Force for Sustainable Growth
We will enhance productivity and strengthen business quality by developing professional talent and promoting health and well-being in the workplace. By improving talent retention and fostering successors, we will build
a sustainable, attractive corporate brand and a resilient earnings base.
Co-creation with Stakeholders — Enhancing Corporate Value through building trust
Through dialogue and collaboration with investors, tenants, local communities, and suppliers, we will improve efficiency and drive growth across the entire supply chain. We will link these efforts to increased earnings
and the acquisition of new investments, thereby sustainably enhancing corporate value (investor value).
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.
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.
Sustainable Development Goals (SDGs): The United National Sustainable Development Summit was held from 25 to 27 September 2015 at the United Nations headquarters in New York with participation by leaders from more than 150
member countries, and adopted the resolution, “Transforming our world: the 2030 Agenda for Sustainable Development.” At the same time, a declaration and goals were announced as an action plan for people, planet and prosperity. They
were the Sustainable Development Goals (SDGs) comprising of 17 goals and 169 targets.
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.
