Social Supply Chain

Basic Approach

To promote ESG-friendly initiatives throughout the value chain for the Group's real estate portfolio, we have established procurement policies for the Group's major products, services, and business partners (e.g., property management companies and building management companies).
The Group strives to build cooperative relationships by sharing information on environmental concepts and goals to the greatest extent possible.

Excerpted from Sustainable Procurement Policy

① Corporate Ethics/Child Labor
Policies and systems shall be established related to corporate ethics, including prevention of corruption from bribery. Child labor shall be prohibited.

② Introduction of Environmentally Friendly Operational Procedures
We shall comply with the various laws, regulations, standards, and other requirements related to the environment and sustainability.

③ Procurement of Environmentally Friendly Goods
When selecting goods for procurement in construction projects, the following items related to reducing environmental burden must be satisfied in addition to the necessary quality, functions, economic efficiency, and rationality.
a. We shall strive to conserve resources and energy.
b. Reduction of environmental pollutants: We shall strive to reduce the use and emission of harmful chemical substances, ozone-depleting substances, and other such substances.
c. Long useful lifespans: We shall explore improvements such as in durability and ease of repair and parts replacement.

④ Respect for Human Rights and Diversity
The human rights of officers and employees shall be respected, and discrimination and harassment shall be prohibited.

⑤ Procurement of Employee Health-Friendly Goods
Certain standards shall be established for the procurement of goods, including for drugs for which use is prohibited, in consideration of employee health.

⑥ Appropriate Working Environments and Health and Safety
Compliance shall be kept with laws and regulations related to labor standards, and unfair labor practices such as forced labor shall be prohibited. Initiatives shall be implemented related to appropriate work environments and health and safety for officers and employees, including appropriate work hour management and ensuring that holidays and vacations are provided.

⑦ Employee Health and Comfort
Initiatives shall be executed in consideration of employee health and comfort. Support shall be provided to improve employee work-life balance.

⑧ Establishing ESG Requirements in Selecting External Vendors
Requirements considering sustainability shall be established in the selection of subcontractors and other external parties.

⑨ Involvement in Local Communities
Initiatives shall be conducted to contribute to local communities.

⑩ Building a Disaster Risk Management System
Efforts shall be made to build a business continuity plan (BCP) in preparation for disasters.

⑪ Information Security
Confidential and personal information shall be handled and protected appropriately.

Improving Service and Quality

The Heiwa Real Estate Group strives to provide safe, high-quality, and valuable goods and services in accordance with a basic policy of providing comfortable and affluent offices and living spaces. The Group works to ensure sound business activities and improve its services from the standpoint of its building tenants and users, while responding to their concerns fairly and sincerely.

Maintaining and improving the quality of office building operations

Heiwa Real Estate works to ensure that the overall management and operations of its buildings are maintained at a uniform level of high quality, and makes improvements whenever necessary. For that purpose, it periodically compiles reports on the operational status of its office buildings together with the companies consigned to manage the buildings, and verifies that they are performing their duties appropriately and in compliance with relevant laws and regulations. The Group also requires these management companies to report on any problems that have occurred in the buildings along with the results of measures to rectify such problems.

Using questionnaires to ensure tenant customer's satisfaction (CS)

Heiwa Real Estate has all tenants of its office buildings complete a questionnaire on the level of their satisfaction. The questionnaire covers multiple aspects of building management and usage, including elevator operations, air conditioning, cleanliness, security, and building staff. The Group carries out improvements based on the feedback and requests that it collects from tenants in an effort to promptly raise the level of their satisfaction.

Consideration for the Elderly and Disabled

All properties developed by the Heiwa Real Estate Group are subject to the Act on Promotion of Facilitation of Mobility for Elderly and Disabled Persons.
Accordingly, we incorporate barrier-free measures such as ensuring sufficient hallway width, installing wheelchair ramps and providing toilets for the disabled.

Organizing gatherings for tenants

Heiwa Real Estate organizes tenant forums for all of its office building tenants to provide opportunities for them to meet and promote their businesses. The gatherings also provide valuable new opportunities for new tenants.

Maintaining Building Safety and Security

To facilitate the health and safety of tenants and employees involved in building operations, as well as facilitate fair business practices, the Group ensures security and safety by incorporating the following initiatives in the management of real estate facilities.

Holding disaster preparation and crime prevention drills

Heiwa Real Estate holds disaster preparation and crime prevention drills at its office buildings in order to ensure safety and security for tenants. It also initiates various measures for improving building safety and security on an ongoing basis.

Business continuity planning

Heiwa Real Estate has set up a notification system for providing damage reports to the tenants of its office buildings in the event of an earthquake or other natural disaster, and has made preparations for alleviating the damage caused by such a disaster. Emergency food and supplies are also stored at the buildings for tenants during times of disaster.

Ensuring the earthquake resistance of buildings

Heiwa Real Estate has assessed the earthquake resistance of all its buildings that were constructed before Japan's new earthquake resistance standards, and seismically reinforced almost all the buildings deemed to fall short of those standards. The Group has also rechecked the structural calculations of its office buildings that were built after the new standards but required reconfirmation, and verified the soundness of their structural designs.

Opposition to organized crime syndicates

In accordance with its Code of Conduct, Heiwa Real Estate takes a firm stance against organized crime syndicates, which have a history of extortion in Japan's real estate industry, and has established rules for strictly forbidding any relationships with their members. The Group has put procedures in place for responding to any contacts from such syndicates and refusing any attempts by them to extort money.

Responding to Social Issues

In line with current trends, the Group promotes flexible initiatives targeting tenants and local communities in response to a variety of social issues.

Workplace Vaccinations for Tenants

In July and August 2021, the Heiwa Real Estate Group implemented COVID-19 vaccinations in the workplace for directors and employees from approximately 150 companies in 19 Group-owned buildings located in the Nihonbashi Kabutocho and Kayabacho area. This action was taken to provide safe, high-quality and valuable products and services to Group employees and customers amid the ongoing spread of COVID-19.

Providing Facilities for People Unable to Return Home

At KABUTO-ONE, opened in 2021, the Group provides temporary waiting areas and emergency supply stockpiles to assist people unable to return home in the event a disaster occurs.
This emergency provision contributes to enhancing local disaster prevention capabilities in the Tokyo metropolitan area, where there are concerns about earthquakes and other natural disasters.

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