Materiality

SLR and SRM have identified materiality (material issues) in order to adapt to changing global trends, meet stakeholder expectations, and contribute to achieving a sustainable society.

Identification process of materiality

Step 1: Identify and categorize social issues
SRM identified a wide range of issues covered by the sustainability disclosure frameworks, rating agencies, etc., and identified items of interest to its stakeholders. We checked whether the issues we identified were consistent with the Sumitomo Corporation Group’s material issues and key social issues.

Step 2: Gather opinions of officers and employees
Through the ESG task force, SRM gathered the opinions of each department’s officers and employees and discussed them at the management level. External specialists also conducted a review.

Step 3: Submit to and gain approval of ESG Promotion Committee
The ESG Promotion Committee, the decision-making body for ESG promotion, deliberated on the issue and made a decision upon approval by the chairperson, the final decision-making authority.

Seven Material Issues & Initiatives

	Material Issues
Ｅ	① Climate change mitigation
	Initiatives	Consideration for reduction of energy consumption, CO2 emissions, etc.
	KPI target / Results	Energy：SLR aims to achieve an energy consumption intensity reduction of 35% from the level in FY2019 by FY2030. Greenhouse gas (GHG) : (Short-term) SLR aims to reduce the total greenhouse gas emissions of its portfolio (Scope 1 and 2) by 42.0% (with FY2020 as the baseline) by FY2030. (Long-term) SLR aims to reduce its total greenhouse gas emissions throughout its value chain (Scope 1, 2 and 3) to net zero by FY2050. Water consumption: SLR aims to preserve the status quo up until 2030, using FY2019 as a baseline. Waste disposal: SLR aims to preserve the status quo up until 2030, using FY2019 as a baseline. FY2024 Results/Environmental performance
	② Portfolio greening
	Initiatives	Promote acquisition of green building certifications such as GRESB, CASBEE, DBJ Green Building Certification, BELS, etc.
	KPI target / Results	SLR aims to achieve external environmental certification for 70% of its properties by FY2030. based on total floor space FY2024 Results/Promotion of the transition to green buildings
Ｓ	③ Human resource development
	Initiatives	Provide ample training programs Support acquiring professional accreditations Develop real estate professionals with an emphasis on teamwork
	KPI target / Results	Real estate transaction specialist licensee percentage (Pass rate):　75％ / FY2024 results:　69.5％ ARES Certified Master percentage:　50％ / FY2024 results:　43.1％
	④ Diversity, Equity & Inclusion
	Initiatives	Create a working environment in which diverse human resources can flourish over the medium to long term Respect human rights Provide ongoing employment support to achieve work-life balance
	KPI target / Results	Average length of service:　5 years / FY2024 results:　4 years and one month Percentage of employees taking annual paid leave:　90％ / FY2024 results:　78.1％
	⑤ Tenant satisfaction improvement & contribution to local communities
	Initiatives	Provide/operate facilities with high tenant satisfaction Consideration for environment/society by collaborating with tenants, PMs, BMs, etc. Contribute to and consider local community
Ｇ	⑥ Engagement with investors and trustworthy governance
	Initiatives	Disclose information to investors and promote constructive dialogue Develop a governance structure trusted by investors
	KPI target / Results	Investment corporation board meeting attendance percentage:　90％ / FY2024 results:　100％
	⑦ Thorough compliance & risk management
	Initiatives	Monitor and respond to risks Appropriately operate an internal control system for compliance with laws and regulations
	KPI target / Results	Number of compliance training sessions held:　12 (per year) / FY2024 results:　11 (in the year) Compliance training session attendance percentage:　100％ / FY2024 results:　100％