Third-Party Opinion

MIRARTH HOLDINGS is actively and steadily promoting sustainability initiatives in FY2023. We revised the medium- and long-term targets for reducing greenhouse gas emissions set in March 2023 by newly adding Scope 3. In addition, the rental residence “LUXENA Yoga” obtained “Rank A” under CASBEE for Buildings (New Construction), comprehensive assessment system for built environment efficiency.

Here, I would like to explain the characteristics of our Group's ESG initiatives in my own words to reaffirm our commitment to “Sustainability” and “Proactive response to ESG issues,” which we have been recently working on.

First, E (Environment) refers to our energy business, which we are focusing on as our highest priority business to transform and develop. This was triggered by the completion of “LEBEN HEIM Hikarigaoka Koen” in 2011, the first condominium in the Tokyo metropolitan area equipped with a solar power generation system per unit, and “LEBEN REVALE Yokohama Tsurugamine Hills,” Japan's first solar-powered condominium with storage batteries per unit in Asahi-ku, Yokohama City, in 2012. We believe this demonstrates our foresight and forward-thinking spirit. The Tokyo Metropolitan Ordinance on mandatory installation of solar panels, which was passed in 2022 and is scheduled to take effect in 2025 is sufficient evidence. We believe that further promotion of sustainability management is desirous by leveraging this foresight and forward-thinking spirit.

Next, for S (Society), when I visited Takara Leben Condominium Business Division, East Japan Branch (Sendai City, Miyagi Prefecture) last November, I felt a strong sense of satisfaction and mission of our employees when I heard them saying, “It is our own hard work that will lead to Tohoku's recovery and development beyond that,” or thinking of “how to protect local residents from snow damage (There are various types of snow damage, for example, according to Fire and Disaster Management Agency statistics, there were 48 fatalities nationwide during snow removal operations, such as clearing snow from roofs during November 1, 2022 to February 28, 2023 period.). ” As the phrase “Be the Takara (treasure) of the community,” I strongly felt the reason why Takara Leben has been ranked No. 1 in Sale Supply Ranking for New Condominiums in the Tohoku area for five consecutive years and for the eighth time in 2023, is due to our employees’ attitude toward work and their sense of responsibility. We recognize that it is extremely important to continue to maintain and improve the high level of motivation in the field.

Finally, G (Governance). The ratio of outside directors on the board of directors is an important indicator of the transparency and independence of corporate governance. Although our Company has a majority of independently elected outside directors, only 15.9% of companies in the TSE Prime market have a majority of independently elected outside directors (as of July 14, 2023). In addition, it is believed that increasing the ratio of female executives will contribute to improving the diversity and quality of corporate governance. While the ratio of female executives (directors, corporate auditors, and executive officers) in companies listed on the TSE Prime Market is only 13.4% (as of the end of July 2023), our ratio is 30.0%. In December 2023, we conducted another necessary review of corporate governance to enhance its effectiveness.

I will contribute my mite to the Group's efforts to become a corporate group that makes “a happier future for both people and our planet” by promoting ESG management while capitalizing on the Group's strengths.