Materiality (Material Issues) and SDGs

Based on the Sustainability Policy, JEI and JEAM had determined materiality (material issues) on October, 2020 in order to achieve a sustainable society under our corporate social responsibility, recognizing the importance of consideration for the environment, society, and governance (ESG). In accord with our current initiatives including climate change, we have revised a part of materiality. We will work towards contributing to the Sustainable Development Goals (SDGs) and achieving medium- to long-term growth of JEI through our responses to materiality.

Area	Materiality	Initiatives
E (Environment)	Promotion of measures against climate change through reduction of environmental burden, etc., and information disclosure in line with TCFD Recommendations	・Establishment of target for reduction of CO2 emissions (intensity) by FY2030, Net Zero by 2050 and implementation of reduction initiatives. ・Identification of climate- related risks and opportunities and consideration / implementation of countermeasures. ・Expansion of information disclosure in line with TCFD Recommendations. ・Curb water consumption and waste materials.
	Acquisition of environmental certification	・Increase the ratio of green certified buildings.
	Collaboration with tenants concerning environmental considerations	・Increase the number of green lease contracts.
	Promotion of funds procurement through sustainability finance (including green finance)	・Active utilization of sustainability finance at the time of new borrowing and refinancing.
S (Social)	Employee job satisfaction/enhancement of wellness, skill development	・Conduct employee satisfaction surveys, and discuss and implement measures to improve satisfaction. ・Conduct training by job class. ・Set up an opinion box for employees as well as an anonymous consultation desk. ・Implementation of human rights policy in JEAM
	Enhancement of tenant satisfaction	・Conduct tenant satisfaction surveys, and discuss and implement measures to improve satisfaction.
	Contribution to local communities	・Own buildings that contribute to solving issues in local communities (Ex. Disaster-prevention, medical care, childcare support, etc.)
G (Governance)	Solid governance system	・Decide on sustainability-related measures at in-house meetings and follow through with initiatives.
	Strengthening of information disclosure for investors	・Further strengthen information disclosure through preparation of ESG reports, etc. ・Improve external evaluation.

Area	Materiality	Risks	Opportunities
E (Environment)	Promotion of measures against climate change through reduction of environmental burden, etc., and information disclosure in line with TCFD Recommendations	・Personal/material damage, etc. due to increase in occurrence of abnormal weather brought about by global warming. ・Relative deterioration of performance of owned properties in line with reinforcement of policies, laws and regulations, and advancement of energy-saving technology.	・Reduction of operating cost through enhancement of environmental performance of owned properties, and improvement of evaluation from tenants and investors who are environmentally conscious.
	Acquisition of environmental certification	・Lowering of evaluation from tenants and investors who include environmental certification in their evaluation criteria.	・Increase in tenant demand due to enhancement of environmental performance of owned properties. ・Expansion of the investor base.
	Collaboration with tenants concerning environmental considerations	・Decrease in tenant satisfaction. ・Increase in energy-related expenses.	・Improvement in evaluation from tenants. ・Reduction of energy-related expenses.
	Promotion of funds procurement through sustainability finance (including green finance)	・Decrease in funding source. ・Increase in funding costs.	・Expansion of funding source and diversification of funding methods. ・Reduction of funding costs.
S (Social)	Employee job satisfaction/enhancement of wellness, skill development	・Decrease in management competence due to decrease in the quality of employees. ・Outflow of talent.	・Improvement in management competence through improvement in employee skills. ・Stabilization of business through securement of talent.
	Enhancement of tenant satisfaction	・Tenant move-outs due to lowered satisfaction, and decrease in rent revenue.	・Increase in rent revenue by reducing tenant move-outs.
	Contribution to local communities	・Decrease in credibility due to deterioration of relationship with the community.	・Strengthening of competitiveness of properties through enhancement of value of a community.
G (Governance)	Solid governance system	・Decrease in evaluation and credibility from investors.	・Improvement in evaluation and credibility from investors for sound management system.
	Strengthening of information disclosure for investors	・Decrease in evaluation from investors who emphasize sustainability.	・Improvement in evaluation from investors through a wide range of initiatives and enhancement of recognition and external evaluation. ・Expansion of the investor base.