The Tosei Group's corporate philosophy is to "create new value and inspiration in all aspects of real estate." As environmental and social challenges intensify, we recognize that realizing a sustainable society through corporate activities is itself the "creation of new value" expected by society. With climate change emerging as a pressing global issue, companies are being called upon to shoulder even greater responsibility in achieving a decarbonized and circular society, and the need for sustainability management is growing stronger than ever.

Against this backdrop, in January 2019, we established the Tosei Group ESG Policy and ESG Action Guidelines, and put in place a framework for their promotion. Since 2020, we have also recognized the role our Group must play in achieving the United Nations Sustainable Development Goals (SDGs) and have been advancing our business activities accordingly.

Our Group is pursuing corporate growth through portfolio management of six business segments. Among these, we position our Revitalization Business--which helps leverage existing structures and facilities, and reduce environmental impact--and our Development Business--which promotes environmentally conscious and comfort-enhancing initiatives such as energy conservation and the introduction of IoT--as growth drivers. At the same time, in our Rental, Fund and Consulting, Property Management, and Hotel businesses, which we regard as stable businesses, we are likewise committed to addressing environmental and social issues in line with our ESG Policy and ESG Action Guidelines.

Since the outbreak of COVID-19 in 2020, people's values and lifestyles have diversified even further. Going forward, the Tosei Group will continue to respond flexibly to changes in the social environment and remain a company of value to all stakeholders by steadfastly practicing ESG management with a strong focus on sustainability.

In November 2023, the Tosei Group identified materiality (key issues) for promoting sustainability and defined the priority themes our Group should address. Furthermore, in January 2024, we formulated our Long-Term Vision 2032 and Medium-Term Management Plan "Further Evolution 2026," announcing our commitment to further evolving as a comprehensive real estate company in order to contribute to the realization of a sustainable society.

In our business activities, we aim to advance sustainability initiatives through product planning and service provision with an awareness of climate change and other environmental issues, as well as social issues such as diversity, disaster prevention, and regional revitalization. In terms of management infrastructure, we are working to strengthen business management and corporate governance with a strong focus on sustainability.

To ensure the smooth implementation of these initiatives, the Sustainability Committee will take the lead in monitoring the progress of related departments, including Group companies, and will work in close collaboration with them so that we can steadily achieve our plans.