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	We will advance our activities with the long-term goal of aiming for the '2050 Carbon Neutral' target declared by the Japanese government under the Paris Agreement, as well as goals aligned with the levels required by the Paris Agreement. < Energy consumption > 20% reduction (intensity) by FY2030 to date (vs. FY2018) < CO2 emissions (GHG) > Scope 1 & 2 : 51% reduction (total) by FY2030 to date (vs. FY2018) Net zero by FY2050 Scope 3 : Identification of corresponding categories and scope determination and calculation < Water consumption > Do not increase intensity (common areas) by FY2030 to date (vs. FY2018) < 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	Initiatives to promote the success of diverse talent (e.g., promoting women's empowerment) ・Proportion of female employees : 30% or more ・Proportion of female managers : 30% or more ・Proportion of male employees taking childcare leave : 100% Human resource development and career development support ・ To support the continuous skill development of employees, conduct training sessions, encourage attendance, and provide assistance for obtaining certifications (monitoring the training expenditure per employee)	Key Human Resource Data
	Creating a work environment for Decent Work	Initiatives to enhance work-life balance through the promotion of diverse working styles ・Average monthly overtime : Less than 20 hours ・Leave acquisition ratio : 70% or more Improvement of employee engagement ・Employee engagement survey : positive response proportion of 70% or more	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) ・Participation in CDP / Acquisition of SBT 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