Mori Hills REIT Investment Corporation (MHR) and Mori Building Investment Management Co., Ltd. (MIM) put emphasis upon ESG (Environment, Social and Governance) to invest in high-quality urban assets and work on improving various environmental and social issues to contribute to the realization of a sustainable society while maximizing the investor's value over the medium to long term.
The "Sustainability Committee" is chaired by President & CEO, established at MIM will promote the work related to sustainability. The committee carries out various initiatives based on the "Sustainability Promotion Program" set for each fiscal year.

Environmental Initiatives

Greenery and Biodiversity

People's lives and corporate activities are supported by various natural blessings, green and biodiversity are rapidly vanishing on a global scale today.
Working on maintaining green and biodiversity will lead to sustain natural blessings as well as providing tenants with comfortable work environment and living environment in harmony with nature as MHR’s business activities. This leads to strengthen our portfolio’s competitiveness.
MHR & MIM create small nature that nature and humans affinity at the surface of the earth, excellent biodiversity and pleasant greenery space. We will also foster people's environmental communities through the space.

Climatic Variation

Greenhouse gas emission goes on increasing and global warming is thought to cause long-term changes in the climate system together with various abnormal weathers.
We can contribute to mitigating the impact on climate systems by addressing global warming to reduce greenhouse gas emission. By having real estate with excellent function against global warming is considered to obtain evaluation and support from tenants as well as strengthen portfolio competitiveness.
MHR & MIM aim to realize a city with excellent environmental efficiency by matching various systems with high energy efficiency where various urban functions are compounded as the compact city. We will continue our efforts to reduce carbon, act to prevent global warming and adapt to climate change by comprehensive and high-quality management of the area.

Resources recycling and anti-pollution measure

Depletion of water and various resources and the environmental impact caused by waste is a problem along with the worldwide population increase and economic development. Also the pollution caused by chemical substances to soil, water quality is becoming social issues.
By leaving these events may cause damage to people's health, wealth, and social capital as well as lead to the loss of social confidence of company that created the cause. It is the company's responsibility to take measures.
MHR & MIM promote 3R activities (reduce, reuse and recycle) on water resources, waste and materials, etc., to reduce the burden on the environment; aim for the formation of recycling-oriented cities and thorough measures against pollution.

Social Initiatives

Tenants and local communities measure

Currently, more than half of the world population lives in cities, therefore, the importance of cities is increasing more than ever. In order to build a sustainable city, we think that it is necessary to be safe and tough with rich environment in various aspects.
Especially in Japan, it is a social issue to protect human life and property from natural disasters including large earthquakes. Improvement of local community dilution in urban areas is becoming social issues. Safe and tough office buildings and residences with rich environment and local community are attractive to tenants, and setting up such circumstances will be advantageous in business activities.
MHR & MIM aims to provide safe, convenient and comfortable space to tenants. We will emphasize on BCP (business continuity) by enhancing hardware aspects such as earthquake resistance performance and emergency power supply and software aspects such as administrative structure at disasters. In addition, while working on cooperation with local communities, we aim to enhance relationships, revitalize the entire region and maintain and improve asset value.

Employees Initiatives

Problems related to human rights and labor become global issues. In Japan, the labor force declines accompanying the declining birthrate and aging population, therefore, correction of long hours work and promotion of women and elderly people are becoming social issues.
We believe that employing diverse and excellent human resources by supporting continuous development of ability is a source of company competitiveness and a corporate mission for employees.
MHR & MIM respect human rights and do not discriminate employees based on their beliefs, religion, age, sex, origin, mental and physical disorders, etc. We will make efforts by establishing a working environment with diverse human resources can be active. We will introduce a multifaceted system and measures so that each and every employee with diverse lifestyles and values can maximize their abilities and continue to grow their career healthy and safely.

Investors Initiatives

We aim to improve the unitholders' value over the medium to long term rather than pursuing short-term performance shortsightedly by formulating strategies and policies with assessing changes in the society and the economic environment in order to communicate sufficiently with the unitholders.
MHR & MIM shall make fair and accurate disclosure with a timely manner that contributes to investment decisions. We transfer policies and management situations to unitholders as to establish a long-term relationship based on trust by actively seeking bidirectional communication with unitholders through introduction of opinions from unitholders into business activities.

Governance Initiative

Corporate Governance

In order to contribute to the realization of a sustainable society, we aim to maximize the unitholders' value over the medium to long term. We believe that it is absolutely imperative to remain as a company trusted by society.
By strongly acknowledging this fact, MHR & MIM work on building fair and effective corporate governance and strive to enhance compliance and risk management based on an appropriate compliance sand internal control structure.

Compliance

We are well aware that failure to ensure compliance has possibilities to diminish the social confidence and business infrastructure.
By strongly acknowledging this fact, MHR & MIM strive to thorough compliance when working and hold a high ethical sense to comply with various laws and ordinances.

Risk Management

There are various risks in corporate activities. When these risks become obvious, that may lead to a decline in business performance and a decrease in social confidence.
MHR and MIM are well aware that various risks in business execution may undermine the corporate value. We identify risks according to changes in social situation and business environment, implement appropriate monitoring and response to prevent and minimize the damage at the time of occurrence.

Concept of sustainability

As stated in each basic policy and management policy, MHR and MIM aim to contribute to the creation and development of cities by providing investors with opportunities to invest in high-quality urban assets.
There are environmental problems such as global warming and conservation of ecosystems, social problems such as human rights problems and the declining birthrate and aging population in current society. As a company, we are required to conduct business activities while making contributions to improving issues. We believe that working on improving these issues will strengthen our corporate competitiveness.
MHR and MIM put emphasis upon ESG (Environment, Social and Governance) to invest in high-quality urban assets and work on improving various environmental and social issues to contribute to the realization of a sustainable society while maximizing the investor's value over the medium to long term.

Sustainability Promotion Structure

The "Sustainability Committee" established at MIM will promote the work related to sustainability. The committee is chaired by President & CEO and is consisted of General Managers of all departments and some staff members of Planning Department as members. The committee carries out various initiatives based on the "Sustainability Promotion Program" set for each fiscal year.
The committee is organized once a month in principle, and formulates policies and Sustainability Promotion Program, monitors the progress of the program, and considers various proposals from each department by considering the social situation and MHR’s operational situation. Reports are regularly made at both MHR's and MIM’s Board of Directors regarding measures related to sustainability.

Activities in the entire supply chain

To promote business related to sustainability, it is necessary to undertake efforts in the entire supply chain in both environmental and social aspects to jointly carry out efforts while sharing values with various stakeholders.
We will share our values and aim to contribute to the realization of a sustainable society by actively seeking bidirectional communication with tenants, local residents, PM companies, Mori Building as a sponsor which provides property pipelines, and other stakeholders.

Mori Hills REIT Investment Corporation
Mori Building Investment Management Co., Ltd.