Response to Social Needs

Approach to Responding to Social Needs

The Group's ESG policy states that it will contribute to tenants, regions, and communities through owned real estate, etc., and the Group strives to engage in dialogue and collaboration with all stakeholders, aiming to coexist in harmony with regions and communities. We will strive to provide value that is supported by all stakeholders by responding to social needs through our business, including product quality control, reduction of environmental impact, energy conservation, enhancement of disaster prevention and crime prevention functions, and revitalization of local communities.

Management of Product Quality

Approach to Quality Control

The Group is engaged in businesses closely related to the lives of our customers, providing a variety of real estate-related products and services, including office buildings, condominiums, detached houses, commercial facilities, logistics facilities, hotels, and real estate investment products such as crowdfunding. Always from the customer's perspective, we strive to improve customer satisfaction by providing products and services that are rooted in safety and security, and by working to ensure quality. In selling these products and services, we strive to comply with various laws, regulations, and internal rules, and promote responsible advertising and promotional activities from the viewpoint of consumer protection.

ISO9001

(Updated May, 2022)

Tosei's Architecture Planning Department has acquired ISO 9001 certification for the planning, design, construction management, and after-sales service (regular inspections) of condominiums, office buildings, commercial buildings, and detached houses, and conducts strict quality control in accordance with ISO 9001. Tosei Community Co., Ltd., a subsidiary of Tosei Corporation, is also an ISO 9001-certified entity that undertakes the planning and provision of general management operations for condominiums, office buildings and rental condominiums.

Quality Control and Quality Improvement Initiatives

TOSEI-QC-10

All processes related to construction management in the construction of office buildings and condominiums are managed by the three parties of our company, designers and construction supervisors, and constructors based on the "TOSEI-QC-10" standards, with particular emphasis on inspection and check of areas out of sight of the customers, in order to provide safe and secure products.

Quality Improvement Review Meeting

In construction and renovation of office buildings and condominiums, detailed checks of specifications and in-depth meetings on instructions are conducted by our company, designers and construction supervisors, and constructors twice, immediately after the start of construction and before finishing work. While preventing the occurrence of problems, we strengthen cooperation among all parties involved in order to provide better products.

Building Safety Management and Risk Assessment

Tosei Community, a group company, regularly conducts patrolling inspections by the General Support Department and reports the results to the BM and PM Departments as part of safety management and risk assessment initiatives for managed properties. If any items are identified, the department in charge examines and implements preventive measures and corrective actions.

Supply Chain Management

Operations Quality Improvement Convention

Convention

The Tosei Group holds an annual “Operations Quality Improvement Convention” to raise awareness of safety, quality management and compliance and to build a strong partnership with partner companies, with the aim of improving the quality of operations. This event is hosted by Tosei Community, which operates a property management business, and is a group training session for its primary suppliers, or secondary suppliers to Tosei, which are important business partners, and is part of the supply chain management of the Tosei Group's real estate portfolio. 51 participants from 29 business partners joined the event in 2023.

Supplier Questionnaire (ESG Questionnaire)

As part of our supply chain management, we have established a Sustainable Procurement Manual and conduct an annual supplier questionnaire (ESG questionnaire) for important suppliers whose annual order value exceeds a certain amount to check their respect for human rights, including occupational health and safety, prohibition of child labor and forced labor, prohibition of harassment, as well as compliance with laws, environmental considerations, and risk management. The results are reviewed by the Sustainability Committee, which then deliberates on whether or not to continue transactions with the companies.

In 2023, we conducted questionnaires for 6 suppliers in the real estate revitalization, development, and rental businesses, and the committee reviewed their initiatives and discussed whether to continue transactions with them. The same questionnaire has been conducted since 2021, monitoring a cumulative total of 19 suppliers, accounting for more than 84% of total supplier orders in the relevant businesses.

Disaster Prevention Initiatives

Disaster Prevention Training

AED training

Tosei manages all processes related to the construction and maintenance of new or existing office buildings or condominiums through three parties - the Company, design and construction management companies, and construction companies - based on Tosei's unique quality control standards, TOSEI-QC-10. Tosei strives to provide customers with safe and reliable products by conducting inspections and particularly rechecking those items that customers cannot oversee.

Workplace Disaster Preparedness Leaders

We have been registered as a Workplace Disaster Preparedness Leaders since February 2024.
Workplace Disaster Preparedness Leaders is a service in which companies, stores, etc. receive daily disaster prevention information and disaster information in the event of a disaster directly from the Tokyo Metropolitan Government. Receiving regular information on disaster prevention measures on a regular basis will promote disaster prevention measures in the workplace in advance in preparation.

Responsible Advertising and Marketing Activities

Advertisement Review

With respect to various sales promotion activities in advertising and marketing of our products and services, we have established the “Regulations Concerning Advertisements and Premium Offers” to ensure proper operations in compliance with relevant laws and regulations, and to contribute to consumer protection. In accordance with these rules, we have established the “Manual for Review of Advertisements” as an operational system for conducting appropriate advertising and marketing activities, and have built a system for review of advertisements by the General Affairs Department, which is responsible for legal affairs, depending on the target of the advertisement and the advertising media to be used. In principle, advertisement reviews are conducted in advance, and compliance with the manual is checked from the perspective of risk management and compliance, and corrective actions or recommendations are made as necessary. The General Affairs Department, which is in charge of advertisement review, prepares and maintains a report on the results of the advertisement review as a record of the review.

Regarding the use of SNS in our business activities, we have established "Rules for Management of Social Media Use Related to Business" and disclosed our "Social Media Policy."

From the viewpoint of risk management regarding internal SNS operation, we conduct "SNS training" for SNS managers and staffs in charge, and have established a system in which only those who have completed the training are involved in SNS operation to ensure proper operation.

Advertisement Review Process

Dissemination and Education of Advertising Laws and Regulations

Business Legal Affairs Liaison Meeting

In order to provide safe and secure products and services and promote fair transactions in compliance with related laws and regulations, we have established the Business Legal Affairs Liaison Meeting to confirm the enactment and revision of laws and regulations related to each business of the Tosei Group. At the meeting, we disseminate information on revisions to various laws and regulations and precautions regarding advertising. The meeting consists of general managers and above from each business, including group companies, and is held monthly under the supervision of the General Affairs Department, which is in charge of legal affairs.

Business Legal Affairs Training

Business Legal Affairs Training is held every year to provide employees of the sales department with basic and applied knowledge of laws and regulations related to various businesses and to foster a culture of compliance. The main content of the training is to provide knowledge related to compliance in sales operations, such as information on revisions to related laws and regulations, knowledge of new laws, and the latest precedents regarding building lots and buildings transactions, and to learn advertising-related laws and regulations. The training is designed to acquire and consolidate knowledge for the promotion of responsible advertising and marketing activities.

Audits of Advertisement Reviews

The Company's Internal Auditing Department conducts audits to inspect the status of implementation of review for advertisements of real estate for sale and lease in the periodic audits of group companies and related departments in the Building Lots and Buildings Transaction Business and Type II Financial Instruments Business.

Providing Value Through Products and Services

Through Our Revitalization Business

In the revitalization business, we create new value by revitalizing various assets ranging from condominiums to office buildings, hotels, and logistics.


Party room renovated from cafeteria

■Renovation of company housing x Concept housing for music lovers

"T-Rhythmic SOKA"(Sold) was a vacant company housing, which we acquired and renovated into a rental apartment with improved sound insulation performance. Of the 52 apartments, 24 studio apartments were soundproofed, and the floor used as a cafeteria was converted into a party room, creating a space where residents can gather to hold events and deepen exchanges while relaxing freely with each other.



Restaurant renovated from cafeteria

■Hotel Revitalization x Contribution to Local Communities

"Tosei Hotel & Seminar Makuhari" was a 27-year-old, aging accommodation and training facility that was comprehensively revitalized in terms of both hardware and software through our real estate M&A of the entire management company. The number of accommodation rooms was increased from 79 to 137, and each room was newly equipped with toilet, washbasin, and other water facilities to enhance its superiority as an accommodation facility. In addition, based on the revitalization concept of "a hotel, a seminar house, and a space that contributes to the local community," a lounge open to the local community was created by utilizing the existing space. The lounge invites seasonal events and also serves as a venue for local traditional performing arts. Restaurants in the hotel offer "local production for local consumption" menus using local ingredients, so the hotel contributes to the creation of liveliness and local revitalization through the operation of its facilities.

Through Our Development Business

Aiming to contribute to the SDGs by creating housing

In our housing development business, we are creating houses with the aim of contributing to the SDGs.

■SDGs to be addressed by the entire block

"THE Palms Court Hibarigaoka"(Sold) aims to contribute to the 6 SDGs targets not only for individual households but also for the entire block, based on the 4 themes of "green conservation," "energy conservation and waste reduction," "water saving and water resource conservation," and "crime and disaster prevention."

Rainwater tank
Light agreements
Plantings of four seasons
Exterior tile

Creation of comfortable residences

The project team, which was formed to respond to diversifying lifestyles, plans and proposes "comfortable houses for all family members" with meticulous thinking from the perspective of real life. The floor plans proposed by the project have been adopted in some of the properties.(This activity was completed in FY2023.)

■THE Palms Court Kamakura Shiromeguri

We planned houses where all family members can easily participate in housework with an eye on the moving line, and houses to enjoy hobbies with a large shoe-in closet with a counter for DIY.

■THE Palms Court Hibarigaoka

We planned houses where women can feel special, equipping a walk-in closet with a dresser directly connected to the master bedroom and atmospheric indirect lighting in the living room.

Creation of Community Space in Condominiums


THE Palms Court Kashiwa Hatsuishi

■Urban Development that Fosters Community

The detached houses block "THE Palms Court Kashiwa Hatsuishi"(Sold) has a "cul-de-sac," a turnaround plaza that cars cannot get through, not only to foster interaction among residents but also to bring into safety. In the condominiums, we actively adopt community spaces that can be freely used for any purpose, such as "study room," "guest room," "party room," and "moms and kids lounge" to create a comfortable environment for residents with various lifestyles.


THE Palms Sagamihara Park Brightia

■Urban Development Open to the Local Community

In front of the entrance of the condominium "THE Palms Sagamihara Park Brightia,"(Sold) a park has been set up to provide a place for residents and local residents to get close to nature and relax. Three "kamado benches" that can be used as kamado in the event of a disaster and some solar-powered streetlights have been installed as efforts to prevent disasters.

Barrier-Free Houses

THE Palms Court Hashimoto (Sold)

THE Palms Court series of condominiums for sale includes barrier-free "Withstyle" homes for the elderly. These homes, Tosei applies a unique design code consisting of 10 items based on the concept of a permanent residence, to create house designs suitable for any situation in a long life. Features include the installation of a closet that can be converted into an elevator at low cost should an elevator become necessary in the future and wheelchair-accessible designs.

Through Our Rental and Property Management Business

Efforts to Improve Convenience and Comfort

We are also promoting efforts to improve convenience and comfort in our residential and office rental and management businesses. In our rental housing, we are creating community spaces and renovating the design of aging common areas, while in our rental offices, we are working to attract shared bicycles and food trucks.

Food truck
Shared cycle
kids' room

Tʻs garden Kitakashiwa

We revitalized an idle company housing consisting of three buildings and upgraded it into a rental apartment for families. Targeting families raising children, we created three community spaces: a "kids' room" where parents and children can play together without worrying about their surroundings, a "party room" where friends and relatives can gather and enjoy cooking classes or birthday events, and a "study room" where residents can have time alone to study or read books. We provide comfortable living spaces for various occasions.


Through the Fund Business

Resilience

We are working to strengthen resilience in asset management and property management in the real estate fund business to ensure the safety and security of our tenants through prompt recovery in the event of a disaster. In addition to the "Earthquake Countermeasures Manual" established by Tosei, the REIT Division and Private Fund Division of Tosei Asset Advisors have established their own BCP (Business Continuity Plan), information disclosure manual in the event of an earthquake, and reporting manual in the event of an emergency, to ensure an appropriate response system in an emergency.


Through the Hotel Business

Environmental Efforts

Tosei Hotel COCONE and Tosei Hotel & Seminar Makuhari offer an eco-friendly cleaning plan for guests staying for consecutive nights.

Contribution to Local Communities

■Regional revitalization, community building

Some hotels are collaborating with local tourism operators to contribute to local revitalization. "COCONE Kamakura" offers a plan that includes "Noriorikun," a ticket for unlimited one-day rides on the Enoden train, plan with Enoshima Aquarium ticket and Kamakura Japanese goods. "COCONE Asakusa Kuramae" offers a plan that includes kimono rental and dressing. "Tosei Hotel & Seminar Makuhari" is also actively involved in activities that contribute to the local community. The restaurant uses local ingredients in its menu for local production for local consumption, and the lobby on the first floor is open to the public and seasonal social events are held for local residents to participate. In addition, the hotel provides opportunities for guests to casually participate in social contribution activities by introducing donation-type vending machines.