Materiality, Targets & KPIs

We have identified materiality as an important issue to be solved as a priority in promoting sustainability, and has established targets and KPIs. While working on these goals, we will strive to achieve medium- to long-term growth.

	Materiality (sustainability-related important issues)	Targets and KPIs	Results References
E (Environment)	Climate change-related initiatives (contribution to low-carbon society)
	Management and reduction of energy consumption, CO2 emissions, water consumption, and waste emissions	FY2030 to date (vs. FY2018) ・Energy consumption: 20% reduction (intensity) ・CO2 emissions (GHG) Scope 1 & 2: 51% reduction (total) Net zero by FY2050 Scope 3: Identification of corresponding categories and scope determination and calculation ・Water consumption: Do not increase (common areas) ・Waste: Recycling rate 65% (emissions related to construction of exclusive use areas)	Targets and Results
	Acquisition of environmental and energy-saving certifications	・Proportion of environmental and energy-saving certifications acquired by FY2030 30% or more (by total floor space)	Certification Status
	Collaboration with stakeholders on environmental considerations	・Conduct periodic supplier (PM / BM / contractors) training, exchanging opinions, and monitoring. ・Conclude green lease clauses for all newly contracted units ・Raise sustainability awareness through regular training for investment management company employees	Supply Chain Management
S (Society)	Initiatives for stakeholders
	Improvement of tenant satisfaction, engagement with tenants	・Conduct periodic tenant satisfaction surveys ・Install disaster prevention maps in all properties ・Make disaster prevention goods available at no charge for all ・Distribute sustainability guidelines to all units ・Conduct education on sustainability and disaster prevention at all properties	Initiatives for Tenants
	Contributing to local communities	・Promote installation of AED equipment at all properties ・Promote installation of donation vending machines ・Support employees' volunteer activities, donate to charitable organizations, etc. ・Participate in regional activities,Local revitalization through dialogue with local communities	Contributing to Local Communities
	Pursuit of unitholders’ profit through customer-oriented business conduct	・Establish system for managing conflicts of interest in the oversight of multiple funds ・Conduct honest, transparent disclosure ・Pursue unitholders' interests through the establishment of an asset management fee structure linked to investment performance	Basic Policy on Customer-Oriented Business Conduct
	Initiatives for officers and employees
	Promoting diversity and talent development	・Average years of service: 5 years or more ・Proportion of female employees: 30% or more ・Proportion of female managers: 15% or more ・Organize and encourage employees to attend training and acquire qualifications for continuous employee skill development	Key Human Resource Data
	Creating a work environment for Decent Work	・Leave acquisition ratio: 70% or more ・Zero turnover due to life events, including use of childcare and nursing care leave systems ・Percentage of employees taking childcare leave: 50% or more ・Frequency rate of occupational accidents: Zero ・Conduct employee satisfaction surveys and undertake improvements ・Average monthly overtime / Less than 45 hours (Compliance with 36 agreements)	Work-Life Balance
G (Governance)	Strengthening of governance
	Strong corporate governance structure	・Development of governance structure ・Increase in the number of fund officers and appointment of female officers comprising 25% ・Conduct in-house compliance training, achieve 100% participation rate ・Maintain and improve the effectiveness of committees and the Board of Directors ・Conduct an internal audit once a year to ensure the feasibility of internal controls.	Corporate Governance
	Risk management for sustainable business growth
	Strengthening of resilience	・Response to severe disasters (earthquakes, floods, etc.) ・Response to TCFD (assessment and calculation of climate change-related risks and opportunities) ・Acquire CDP and SBTi certification ・Conduct annual BCP training	Climate Change Initiatives

Materiality Identification Process

We have identified our materiality using the following methodology.

STEP1：Identify

We have identified issues for consideration from wide range of issues concerning economy, environment and society by referring to guidelines from GRI Standards and external evaluations (GRESB, DJSI, MSCI ESG, etc.)

STEP2：Prioritize

We determined nine issues to be material among the identified issues, for consideration by evaluating and ranking the potential impact on ADR and the level of stakeholder’s concern regarding the issues.

STEP3：Authorize

The nine issues that have been identified as material at our sustainability committee, have been authorized by our Representative Director as issues material to ADR’s initiatives in promoting sustainability.

STEP4：Review

In order to flexibly address to changing challenges, reflect stakeholders expectations and improve our disclosure transparency we will periodically review our materiality.

Materiality, Targets & KPIs