Materiality
Sumisho Realty Management, SLR and SCRP have identified its materiality (material issues) in order to adapt to changing global trends, meet stakeholder expectations and contribute to achieving a sustainable society.
Identification process of materiality
Step 1: Identify and categorize social issues
SRM identified a wide range of issues covered by the sustainability disclosure frameworks, rating agencies, etc., and identified items of interest to its stakeholders. We checked whether the issues we identified were consistent with the Sumitomo Corporation Group’s material issues and key social issues.
Step 2: Gather opinions of officers and employees
Through the ESG task force, SRM gathered the opinions of each department’s officers and employees and discussed them at the management level. External specialists also conducted a review.
Step 3: Submit to and gain approval of ESG Promotion Committee
The ESG Promotion Committee, the decision-making body for ESG promotion, deliberated on the issue and made a decision upon approval by the chairperson, the final decision-making authority.
Seven Material Issues & Initiatives
| Material Issues | Initiatives | |
|---|---|---|
| E | ①Climate change mitigation | |
| Initiatives | Consideration for reduction of energy consumption, CO2 emissions, etc. | |
| KPI target / Results |
For details, please refer to the SOSiLA Logistics REIT, Inc websites. For details, please refer to the SC Realty Private REIT, Inc websites. |
|
| ②Portfolio greening | ||
| Initiatives | Promote acquisition of green building certifications such as GRESB, CASBEE, DBJ Green Building Certification, BELS, etc. | |
| KPI target / Results |
For details, please refer to the SOSiLA Logistics REIT, Inc websites. For details, please refer to the SC Realty Private REIT, Inc websites. |
|
| S | ③Human resource development | |
| Initiatives |
Provide ample training programs Support acquiring professional accreditations Develop real estate professionals with an emphasis on teamwork |
|
| KPI target / Results |
Real estate transaction specialist licensee percentage (Pass rate): 75% / FY2024 results: 69.5% ARES Certified Master percentage: 50% / FY2024 results: 43.1% |
|
| ④Diversity, Equity & Inclusion | ||
| Initiatives |
Create a working environment in which diverse human resources can flourish over the medium to long term Respect human rights Provide ongoing employment support to achieve work-life balance |
|
| KPI target / Results |
Average length of service: 5 years / FY2024 results: 4 years and one month Percentage of employees taking annual paid leave: 90% / FY2024 results: 78.1% |
|
| ⑤Tenant satisfaction improvement & contribution to local communities | ||
| Initiatives |
Provide/operate facilities with high tenant satisfaction Consideration for environment/society by collaborating with tenants, PMs, BMs, etc. Contribute to and consider local community |
|
| G | ⑥Engagement with investors and trustworthy governance | |
| Initiatives |
Disclose information to investors and promote constructive dialogue Develop a governance structure trusted by investors |
|
| KPI target / Results |
Investment corporation board meeting attendance percentage: 90% / FY2024 results: 100% | |
| ⑦Thorough compliance & risk management | ||
| Initiatives |
Monitor and respond to risks Appropriately operate an internal control system for compliance with laws and regulations |
|
| KPI target / Results |
Number of compliance training sessions held: 12 (per year) / FY2024 results: 11 (in the year) Compliance training session attendance percentage: 100% / FY2024 results: 100% |
|