Value Creation & Materiality
Value Creation Process
Leveraging the three types of knowledge it has cultivated in its Real Estate Business to the Energy and Asset Management Businesses, the MIRARTH HOLDINGS Group is working to evolve into a company that makes the future of people and the Earth happier. To this end, each Group company is demonstrating synergies that transcend business fields.
Sustainability Key Themes
Environment
Realizing a Decarbonized Society
While working to ensure a stable supply of renewable energy, we aim to promote environmentally friendly development with a low environmental impact by incorporating energy conservation measures and strive to mitigate climate change issues.
| Materiality | KPI | Targets for FY2024 |
|---|---|---|
| Addressing climate change and decarbonization | CO2 emission reduction rate (Scope 1, 2 and 3) | 45%*1(compared to FY2022) |
| Number of internal initiatives contributing to energy conservation | 10 initiatives | |
| Active development of renewed/renovated condominiums | ||
| Promoting the stable supply and use of renewable energy | Total renewable energy generation capacity | 780MW*2 |
| Acquisition of environmental performance certification | 5 building | |
| Adoption rate of ZEH standard in detached houses | 100%*3 | |
| Promoting the use of renewable energy in the business of newly built condominiums for sale |
Social
Creating Sustainable Cities
We will contribute to the development of local communities and the enrichment of people's lives, and to the realization of a sustainable future through the provision of products and services that respond to social issues and changing needs.
| Materiality | KPI | Targets for FY2024 |
|---|---|---|
| Realizing sustainable growth of local communities | Number of housing supply projects overseas | 3 projects |
| Number of redevelopment / reconstruction projects undertaken | 10 projects*4 | |
| Results of satisfaction survey on condominium management services | 5 points or more / 6 points | |
| Number of nonconformities related to business processes and quality standards | Less than 10 cases | |
| Addressing the declining birthrate, aging population, and shrinking workforce | Training hours per person | 25 hours |
| Promoting acquisition of DX Business Certification | ||
| Proposing new services for lifestyles | 10 proposals |
Enhancing Well-being
We will protect the mental and physical health and safety of our employees, foster a workplace culture in which diverse human resources can play an active role, and build co-creation relationships through dialogue with stakeholders.
| Materiality | KPI | Targets for FY2024 |
|---|---|---|
| Ensuring the health and safety of employees | Percentage of employees receiving stress check | 100%*5 |
| Percentage of employees taking paid leaves | 70%*6 | |
| Percentage of male employees taking childcare leave | 85%*1 | |
| Special patrols (safety checks) at construction sites | 4 times a year | |
| Promoting Diversity Equity & Inclusion (DE&I) | Employment rate of persons with disabilities | 2.5% |
| Percentage of female managers | 20%*1 | |
| Percentage of females hired | 30% | |
| Respect for human rights and supply chain management | Holding safety conventions | Once a year |
| Establishment of human rights due diligence system | ||
| Implementation of supply chain management |
Governance
Strengthening Governance
We aim to fulfill our corporate social responsibility by promoting sound corporate activities and ensuring transparency in decision-making, and to continuously enhance our corporate value.
| Materiality | KPI | Targets for FY2024 |
|---|---|---|
| Strengthening corporate governance | Evaluation of the effectiveness of the Board of Directors | |
| Consideration of introduction of clawback provisions | ||
| Strengthening risk management | Verification and management of critical risks | |
| Formulation of BCP manuals | ||
| Ensuring corporate ethics and compliance | Providing compliance education | Three times a year |
| Compliance questionnaire for all employees | Once a year | |
| Awareness rate of whistleblower system | 100% |
- *1 Set as a mid-term target until FY2030
- *2 MW based on solar power conversion, and set as a mid-term target until FY2030
- *3 Houses with insulation performance grade 5 and primary energy consumption grade 6 (excluding renewable energy standards)
- *4 Including excellent building maintenance projects, etc.
- *5 Only calculated companies that conducted stress checks
- *6 Calculated companies that uniformly grant annual paid leaves
Targets and Achievements
| Sustainability Key Themes | KPI | FY2023 | |
|---|---|---|---|
| Targets | Results | ||
| Creating Lifestyles with Value | Proposing new services for lifestyles | 5 projects | 20 proposals |
| Number of housing supply projects overseas | 3 projects*1 | 5 projects | |
| Supply of NEBEL brand condominiums | 3 buildings | 5 buildings | |
| Forming Communities | Number of redevelopment projects undertaken | 2 projects | 1 projects*2 |
| Community sponsorships | 10 cases | 20 cases | |
| Conduct the board effectiveness assessments | 〇*3 | ||
| Enhancing and strengthening the corporate governance system | 〇 | ||
| Consideration of introduction of clawback provisions | △*4 | ||
| Providing anti-corruption education and training | △*5 | ||
| Promoting understanding of human rights issues among executives and employees | 〇 | ||
| Number of cases of unfavorable treatment | 0 case | 0 case | |
| Understanding the awareness rate of the whistleblower system through questionnaires | 〇 | ||
| Percentage of employees receiving health checkups | 100% | 98.9% | |
| Percentage of employees receiving stress check | 100% | 92.4% | |
| Percentage of employees taking paid leaves | 70% | 73.1% | |
| Employment rate of persons with disabilities | 2.3% | 2.2% | |
| Percentage of female managers | 9.5%*1 | 11.5% | |
| Percentage of employees returning to work after maternity or parental leave | 100% | -*6 | |
| Training hours per person | 24 hours | 42.9 hours | |
| Satisfaction rate based on sales staff survey | 90% | 89.9% | |
| Providing Comfortable Spaces of High Quality | Number of nonconformities related to business processes and quality standards | Less than 10 cases | 0 cases |
| Preventive action sharing meetings | More than 5 times | -*7 | |
| SQMS® Master training | More than 2 persons | -*7 | |
| Acquisition rate of housing performance evaluation certificates | 100% | 100% | |
| Disaster frequency rate, lost time frequency rate (*For employees) | 0% | 0% | |
| Number of lost-workday injuries (*For employees) | 0 case | 0 case | |
| Safety conventions | Once a year | 1 time | |
| Special patrols (safety checks) | 4 times a year | 3 times | |
| Number of health and safety training sessions (*For employees) | 2 times a year | 3 times | |
| Results of supplier survey | A rank acquisition rate: 90% | 97.0% | |
| Disaster frequency rate, lost time frequency rate (*For suppliers) | Less than 1.83% | 0% | |
| Developing Environments and Cultures | Acquisition and disclosure of CO2 emissions | 〇*8 | |
| CO2 emission reduction target setting | 〇*8 | ||
| Certification rate of energy efficiency rating (Flat 35) | 100% for detached houses | 100% for detached houses | |
| Sponsorship of culture fostering | 5 cases | 11 cases | |
| Acquisition of ZEH condominium certification | 1 building | 1 building | |
| Acquisition of CASBEE certification rank A or higher | 1 building | 1 building | |
| Newly activated generating capacity of power generation facilities using renewable energy sources | 20MW | 43MW | |
| Total power generation capacity | 360MW*1 | 368MW | |
| Obtaining quantitative data on resources and water and setting reduction targets | 〇 | ||
| Formulation of BCP manuals | △*9 | ||
- *1 Set as a mid-term target for FY ending March 31, 2025
- *2 Number of new projects participated in; other 10 projects under construction or in progress (including excellent building maintenance projects, etc.)
- *3 Conducted anonymous survey assessments and interviews by an external consulting firm, targeting all directors and auditors, including external directors, and third-party evaluations
- *4 Conducted the review of the executive compensation system by the Compensation Committee and will continue to examine it.
- *5 Partially implemented through compliance training
- *6 No applicable person
- *7 Not conducted due to the review of the quality assurance structure
- *8 Target scope: Scope 1, 2 and 3
- *9 Formulation of an initial response manual for major earthquakes and other emergencies
Sustainability Key Themes and Materiality Identification Process
MIRARTH HOLDINGS Group has identified materiality (key issues) and implemented measures to address them through the following process with the aim of contributing to a sustainable society and enhancing corporate value.
The Group contributes to the realization of a sustainable society and enhancement of corporate value by proactively addressing social issues.
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step1
Listing of Social Issues
We identified social issues from an environmental, social, and governance (ESG) perspective based on the analysis of ESG evaluation organizations and market trends.
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step2
Identification of Risks and Opportunities
We clarified the risks and opportunities for MIRARTH HOLDINGS Group in each issue. Through this analysis, we identified issues and opportunities that we may face in our corporate activities.
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step3
Identification of Stakeholder Impacts
We assessed how MIRARTH HOLDINGS Group will be affected by these issues and how the Group will affect them.
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step4
Assessment of Importance
Following discussions at workshops attended by the management of each Group company, we selected social issues of particular importance. These issues are directly related to the strategic decisions of MIRARTH HOLDINGS Group and have an impact on long-term corporate growth.
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step5
Examination of Measures
We examined measures to mitigate risks and expand opportunities for issues of high importance. Through workshops, specific action plans were developed, including technological innovation and business process improvements.
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step6
Identification of Materiality
Based on the above process, we identified and validated the materiality of MIRARTH HOLDINGS Group.
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step7
Establishment of KPIs
Based on the selected materiality, we set KPIs to measure specific results. This allows us to regularly evaluate the effectiveness of our measures and achieve sustainable growth.
The contents of the materiality and targets/KPIs have been approved by the Sustainability Committee and are made public.