Management's Commitment

In 2023, for the first time since the pandemic, we visited and met with foreign investors in person. The fact that we raised the Tokyo Tatemono Group's emissions reduction target to the 1.5℃ level in October attracted a great deal of attention, and we received words of appreciation from people we met in Europe for our efforts and higher targets.

As well as raising our emissions reduction targets for fiscal 2023, we also abolished the deadline of 2030 for the development and promotion of zero energy homes and buildings (ZEH/ZEB) which we have to address through our business. Instead, going forward, we made the decision to develop ZEH/ZEB for all newly constructed office buildings, logistics facilities, for-sale and for-rent condominiums. We have also strengthened and brought forward all targets related to promoting a decarbonized society, which is one of our material issues, including bringing forward the target for a shift to renewable energy in real estate owned by Tokyo Tatemono in its Commercial Properties Business by 20 years. This is not simply an increase in our targets in response to the growing social demands to address climate change, but rather a means to manifest the positive attitude of our employees in tackling environmental issues in all of our internal businesses. We have also introduced an internal carbon pricing system to visualize the amount of CO2 emissions generated from our business operations as well as the effects of energy conservation and the shift to renewable energy. In addition to predicting and preparing for additional costs that may arise from the carbon pricing system being considered for introduction in Japan, we are also working to further raise environmental awareness among employees.

On the social side, we formulated our Guidelines on the Sustainable Procurement Standards to promote understanding of the purpose and content of the Sustainable Procurement Standards. These Standards were established in 2021 to help us realize sustainable procurement that takes into consideration respect for human rights, occupational health and safety, anti-corruption, and environmental conservation. It is vital that we as a Group work together with our suppliers to build a sustainable supply chain. With these guidelines, we aim to strengthen the effectiveness of our efforts to build a sustainable supply chain.

Becoming a next-generation developer−this is the Tokyo Tatemono Group's long-term vision. The word "developer" implies not only to develop real estate (hard aspect), but also to enrich and develop communities by providing various customer services (soft aspect) offered by our Group companies. It also expresses our determination to become a company that builds community development from both the tangible and intangible aspects by bringing together the strengths of the Group.

The Noto Peninsula earthquake struck on New Year's Day 2024. Given that Japan is prone to earthquakes and that natural disasters are becoming ever more frequent and severe due to recent climate change, it is only natural and extremely important to have a disaster prevention mindset in order to solve social issues through urban development.

Tokyo Tatemono is working on several redevelopment projects in the Yaesu-Nihonbashi-Kyobashi area, located in front and to the east side of Tokyo Station. Many of the buildings in the redevelopment area are old. The redevelopment project will regenerate the area and the buildings, and will also help to strengthen the town's disaster preparedness. For example, it will offer emergency storage facilities and space to take in people who are unable to return home.

We are also actively involved in promoting walkability, one of the concepts of urban planning in Japan. The Yaesu Project, which is being built in front of Tokyo Station, is uniquely located as a transportation hub with access to JR and subway lines, as well as to the airport. In this project, Tokyo Tatemono will develop a large-scale bus terminal connecting Tokyo Station to international airports and regional cities, as well as an above-ground and underground pedestrian network that connects Tokyo Station with surrounding urban areas.

The Metropolitan Expressway runs above the Nihonbashi River over which the Nihonbashi Bridge spans, and there are plans to make this expressway underground. The Gofukubashi Project which Tokyo Tatemono is working on along the Nihonbashi River is adjacent to the Metropolitan Expressway. Tokyo Tatemono is collaborating in various ways to make the Metropolitan Expressway underground, and is also developing a waterside space that will become a focal exchange hub along the Nihonbashi River, as well as a pedestrian network that connects Tokyo Station, Nihombashi Station, and Otemachi Station.

These initiatives will undoubtedly improve convenience for people visiting and using the area. This meaningful community development will provide for more advanced urban functions befitting the land gateway to the international city of Tokyo.

In large-scale redevelopment and reconstruction projects, many parties involved in the redevelopment area are involved with various forms of rights. Consensus building is not an easy task, but we will discuss, coordinate, and promote the project with many stakeholders, including landowners and government officials, as well as with those involved in design and construction. Understanding the culture and values that landowners maintain, sincerely addressing their concerns and fears, as well as gaining their wholehearted trust and reassurance that they want to work with us, will be a test of our know-how and experience as a developer, and our credibility as a company, that we have cultivated since our founding. I also believe that community development is about coordinating and working with all of these parties.

Urban development does not end with the completion of a building; it is a project that continues over a long period of time, long after the build is complete. Communities don't exist independently, but rather, they mesh and work together in cooperation with the entire area beyond city blocks and even with surrounding areas, to enhance the value and appeal of the region as a whole. These projects that we are working on are a collaborative process and we will continue to communicate with all parties involved, not only from when the redevelopment project begins, but also long after the project ends.

As a developer, an individual's resourcefulness and skills are essential to building relationships of trust with all parties involved. I believe that these human skills are Tokyo Tatemono's greatest strength. Human skills include the element of "likability," or the ability to be liked by others. When employees possess the kind of likeability that makes others want to work or consult with them, it brings the company together to make it strong. In the case of the Tokyo Tatemono Group, I feel that the human skills and likability of each and every employee is reflected in their sincere attitude toward stakeholders, which in turn leads to our credibility and performance as a company.

Human skills and likeability may be innate to some extent, but they can also be acquired by continuing to work in an environment full of likeable people with a good human nature. For the Tokyo Tatemono Group to continue to be a sustainable company, we should not change this corporate culture, which is the foundation of our Group, but instead we should embrace it. On top of this, we are also focused on recruiting mid-career hires, so I hope that people with a broad knowledge-base who have gained experience at other companies will make a positive difference by becoming part of our company.

The year 2024 marks the final year of our Medium-Term Business Plan (FY2020-2024). I believe that the issue we must focus on going forward is a specific response to climate change. Creating a decarbonized society is one of the most important social issues that requires a global solution. Because the national and corporate goals for this solution are ambitious, there are limits to what can be achieved by individual companies alone. This is why considerable technological innovation is a must. Industries have been affected by soaring construction costs due to the recent labor shortage and energy problems, among other factors. This has meant that environmental measures, such as wooden constructions, for example, may become costly and may not go as well as planned. I believe that we must raise awareness of this issue throughout the world, making every effort to build a business out of it so that we can move forward as much as possible toward finding a solution.

I also recognize that the promotion of women's success in the workplace is one of the issues that we must address going forward. Although more and more new graduates are being hired and half of all new employees are women, the real estate industry has always been a strongly male-dominated industry. This is why we still see few female employees in management positions and few who get promoted to managerial roles. I would like to make a conscious effort to address this issue, taking into account the ideas and opinions of our external directors.

This year, we are celebrating the 128th anniversary since Tokyo Tatemono was first founded. I believe that these figures are proof that our Group has always been needed by society.

In our long-term vision, we declared our aim to be a good company for all stakeholders. This does not mean that we are the best company for all stakeholders "at all times," but rather that we are seen by all stakeholders as a "good company" because we are improving our corporate value over the medium to long term.

We will continue to promote to an even higher level solving social issues and growing as a company by aiming to be a company that earns even greater trust from our stakeholders. Thank you all for your continued confidence in and support of our Group.