The Tosei Group's corporate philosophy is to "create new value and inspiration in all aspects of real estate." In this time of serious environmental and social issues, we recognize that "creation of new value," in other words, creating a sustainable society through our corporate activities is demanded by the world. With climate change becoming a pressing issue globally, companies have a greater responsibility to realize a decarbonized society and a circular economy, and companies are increasingly called upon to practice sustainability management.

In this business environment, we established the Tosei Group ESG Policy and ESG Action Guidelines in January 2019, as well as systems for their implementation. Since 2020, we are conducting business activities with an awareness of contributing to the achievement of the U.N. Sustainable Development Goals (SDGs).

We aim to grow by practicing effective portfolio management throughout our six businesses. In particular, our growth drivers are the Revitalization Business, which contributes to the effective utilization of existing resources and the reduction of environmental impact, and the Development Business, which promotes energy conservation, the introduction of IoT, and other initiatives that contribute to environmental friendliness and comfort. Our stable businesses, such as the Rental, Fund and Consulting, Property Management, and Hotel Businesses, also contribute to approach environmental and social issues according to the ESG Policy and the ESG Action Guidelines.

With the spread of COVID-19 since 2020, people's values and lifestyles have become more diverse than ever. While responding flexibly to changes in the social environment, the Tosei Group will continue to strive for ESG management that takes sustainability into consideration in order to continue to be a company with value to all stakeholders.

In November 2023, the Tosei Group identified materiality (material issues) in the promotion of sustainability and specified important issues and themes to be prioritized by the Group. In January 2024, we also formulated our Long-Term Vision 2032 and Medium-Term Management Plan "Further Evolution 2026," in which we announced our intention to evolve further as a comprehensive real estate company in order to contribute to the realization of a sustainable society.

In our business activities, we aim to promote sustainability measures by planning products and providing services with an awareness of environmental issues such as climate change and social issues such as supporting diversity, disaster prevention and community revitalization. In our management infrastructure, we will strive to further enhance sustainability-conscious business management and corporate governance.

In order to smoothly promote these initiatives, the Sustainability Committee will play a central role in monitoring the progress of initiatives at relevant departments including Group companies, and will work in close collaboration with them to steadily achieve the plans.