Materiality
About
3 key issues
3 key issues
Sun Frontier Group has identified three important issues (materiality) that should be addressed to achieve our Sustainability Vision.
We will develop "specific measures and KPIs" for the three categories of Environmental Protection, Regional Revitalization, and Human Resources Development.
Furthermore, we will periodically review these specific measures and KPIs in response to future environmental and social trends, as well as changes in the business environment.
Process for Identifying Important Issues
The Sustainability Committee has discussed various social issues that we need to resolve by integrating the perspectives of stakeholders and the perspectives of the Company's management, while referring to various frameworks such as SDGs, ISO26000, and GRI Standards. With the knowledge and advice of experts also obtained, we clarified the Company’s awareness of the issues and direction and identified important issues after obtaining approval by the Board of Directors.
To incorporate the views of our stakeholders, the Company's Sustainability Committee had direct communication with more than 20 companies and organizations.
We recognize that communicating with stakeholders is extremely important in future planning and development, and we intend to continue communicating with stakeholders.
Sustainability Committee and the system to promote sustainability
Three important issues (materiality)
Increase environmental sustainability by significantly reducing waste and greenhouse gas emissions, as a frontier of Real Estate Revitalization Business
Create sustainable growth of regional economies through offices, hotels, and tourism, as a frontier for sustainable regional revitalization
Spread the concept of“ altruism” that is indispensable for realizing a sustainable society, as a frontier of philosophy management
Environmental protection
| Social Issues to be Solved | Key Measures | Specific Measures | Indicators | KPI/Target Values | Related SDGs |
|---|---|---|---|---|---|
| Global Warming Due to Greenhouse Gas Emissions | Reduction of greenhouse gas emissions in business activities | Suppression of greenhouse gas emissions from construction through the promotion of real estate revitalization | CO2 emission reduction rate compared to building reconstruction | Reduction rate: 12% (theoretical value) |
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| Offset greenhouse gas emissions from construction in real estate revitalization through credits | Carbon offset implementation rate in regenerated real estate properties | Carbon offset implementation rate: 100% | |||
| Reduction of greenhouse gas emissions in our business activities | Greenhouse gas emissions (Scope 1, 2) | Compared to FY2022: 22% reduction by FY2030 (annual reduction of 2.7%), carbon neutral by FY2050 | |||
| Reduction of greenhouse gas emissions in the supply chain (upstream/downstream) | Greenhouse gas emissions (Scope 3) | ― | |||
| Expansion of Renewable Energy Use | Efforts to develop renewable energy | Number of solar power installations in our developed commercial real estate and hotels | ― |
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| Resource Conservation and Waste Reduction (Biodiversity) | Longevity of real estate | Extension of economic useful life of buildings through real estate revitalization construction | Economic useful life extension rate | Average extension rate of 30% or more |
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| Improvement of occupancy rates of buildings with long elapsed years through total support for real estate | Occupancy rate of buildings over 30 years old | Average occupancy rate: 90% or more (building management continuation rate: 90% or more | |||
| Reduction of Environmental Impact in Real Estate revitalization | Suppression of resource input/waste through the promotion of real estate revitalization | Resource input/waste reduction rate compared to building reconstruction | Reduction rate: 40.9%/49.3% (theoretical value) | ||
| Environmentally Friendly Building and Office Creation (Efforts to Obtain Environmental Certification) | Environmental certification acquisition rate in new office development. For real estate revitalization /owned buildings, consider the necessity of acquisition based on building characteristics | 100% acquisition | |||
| Pollution Prevention and Water Resource Conservation | Environmentally Friendly and Safe Hotel Operation | Reduction of plastic waste in hotel operations | Plastic waste reduction efforts (number of hotels implementing) | ― | |
| Thorough water hygiene management in hotel operations |
Plan execution rate of equipment inspections such as water leakage/water quality checks Number of hotels introducing water-saving equipment/devices |
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Regional revitalization
| Social Issues to be Solved | Key Measures | Specific Measures | Indicators | KPI/Target Values | Related SDGs |
|---|---|---|---|---|---|
| Revitalization of regional economies | Create buildings, offices, and spaces with “job satisfaction” and “creativity” that contribute to economic growth | Promotion of real estate revitalization with consideration for well-being | Percentage of newly providing replanning properties that exceed the internal standard |
30% in FY2023 50% in FY2025 70% in FY2030 |
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| Conduct tenant satisfaction survey (company-owned properties) | Every fiscal year | ||||
| Responding to natural disasters that are becoming more devastating | Prevent and mitigate disaster through regional cooperation | Providing set-up offices with emergency supplies or installation space | Number of office sections equipped with disaster prevention equipment or designated installation spac |
20 sections in FY2024 50 sections in FY2027 75 sections in FY2030 |
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| Providing information that contributes to the improvement of tenants’ disaster prevention awareness | Posting disaster prevention information on dedicated websites: (company-owned properties) | 100% | |||
| Decline in Japan’s productive labor force due to the aging population and declining birthrate | Creating office buildings and spaces that foster “job satisfaction” and “creativity” to contribute to economic growth | Expanding conversions and providing assets that address region-specific issues | Providing real estate products that address issues such as declining birthrate, aging population, and other local challenges | ー |
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| "Economic decline in regional areas due to overconcentration in major cities / Depopulation in rural areas | Addressing regional issues through community revitalization |
Participation in community activities at each hotel Regional revitalization projects centered on Sado Island |
Obtaining SDGs partnership certifications promoted by local governments and participating in local activities | ー |
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Human resource development
| Social Issues to be Solved | Key Measures | Specific Measures | Indicators | KPI/Target Values | Related SDGs |
|---|---|---|---|---|---|
| Decrease in the working-age population due to the declining birthrate and aging population (decrease in actual labor force) and elimination of the gender gap | Respect and utilize diversity | Creating a work environment suited to each employee’s life stage and provide flexible training opportunities | Ratio of women in managerial positions (Sun Frontier Fudousan Co., Ltd.) | 15% or more in FY2035 |
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| Enhancement of systems that respect diversity | Consideration of introducing various systems | ー | |||
| Acquisition of third-party certifications assessing corporate diversity | Efforts to obtain third-party certifications | ー | |||
| Create workplaces with job satisfaction, creativity, and growth opportunities | Establishment of next-generation leader development program, support system for external trainings, etc. | Ratio of training hours to prescribed working hours (Sun Frontier Fudousan) | 12% or more |
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| Utilization of DX, improvement of business processes and improvement of individual abilities | Ordinary profit per hour worked (per full-time employee at Sun Frontier Fudousan) | Increase compared to the previous yea | |||
| Hold seminars aimed at promoting employees' physical and mental well-being, and foster a work environment where each employee can engage in their work in good health—both mentally and physically. | Organize seminars led by occupational physicians and other professionals | Twice or more a year |
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| Improvement of the office environment | Promotion of health-conscious management | ー |
