Supply Chain Management

Approach to Supply Chain Management

At the Sun Frontier Group (hereinafter referred to as "our Group"), we promote Sustainability Management under our Sustainability Vision: "We value the spirit of altruism, which is our company policy, and contribute to the realization of a sustainable society through our business activities."
We are also taking on various new challenges to achieve our Long-Term Vision 2035: "Utilize limited resources to fill the world with smiles and excitement! Becoming a corporate group that continuing to challenge and create future value.."

Recently, we have established and announced various policies, such as the "Partnership Building Declaration" and the "Sun Frontier Group Human Rights Policy," to further strengthen our relationships with all stakeholders. Recognizing the importance of contributing to society through our business activities across the entire supply chain, we have established the "Policy on Procurement" to seek the understanding of our valued business partners regarding our Group's procurement approach.

Policy on Procurement

The Sun Frontier Group promotes procurement activities that emphasize social responsibility across the entire supply chain and contribute to the sustainable evolution and development of humanity and all living things on Earth, based on a shared understanding with our business partners.

Compliance with Laws and Social Norms
We conduct transactions in compliance with relevant laws and social norms.
Fair and Equitable Transactions
We conduct procurement activities widely with a fair and equitable stance, ensuring reliable quality and competitive, fair prices based on appropriate standards and criteria.
Respect for Human Rights
Based on the Sun Frontier Group Human Rights Policy, we engage in activities that respect human rights across the entire supply chain.
Environmental Initiatives
We work to reduce waste, control the generation of waste, and promote energy conservation, considering the entire lifecycle of products and services, and strive to reduce the environmental impact across the entire supply chain.
Partnership Development
We promote collaboration and mutual prosperity with our business partners and value-creating enterprises within the supply chain.

Established on: March 13, 2025

Kyōeikai (Business Partner Association)

We hold regular meetings with our business partners who support us. These meetings aim to enhance collaboration to deliver better products to our customers, ensuring an understanding of our company motto and management philosophy.

Kyōeikai Philosophy

We, the Kyōeikai, aim to enhance our knowledge, skills, and character with overflowing enthusiasm through the real estate industry, dedicating ourselves to the utilization and distribution of real estate with the spirit of altruism, thereby maximizing the added value of real estate and contributing to the sustainable evolution and development of humanity and all living things on Earth.

Kyōeikai Vision

We seek trust, not profit. We, the Kyōeikai, will always maintain a customer-centric perspective, flexibly adapt ourselves, and enhance our knowledge and human capabilities to collaboratively solve our customers' problems, no matter how challenging. We aim to evolve and develop Tokyo into the most attractive city in the world, becoming a "true professional group loved and chosen by customers worldwide."

Kyōeikai Meeting Highlights

In the Kyōeikai meeting held in fiscal 2024, participants experienced the "Sun Frontier Philosophy Handbook" reading session, which our employees read together every morning.

Business Partner Survey

Our Group conducts an annual "Business Partner Survey" targeting business partners with whom we have transactions above a certain amount. This survey aims to inform them about our Group's Human Rights Policy, Sustainability Vision, and important issues (Materiality), and to gather information on their initiatives in line with the above "Policy on Procurement."

The survey results are reviewed by the Sustainability Committee and reported to the Board of Directors.

Real estate development and revitalization with consideration for accessibility to public transportation

Our Group positions accessibility to public transportation as one of the key evaluation criteria in our real estate development and revitalization activities. As our business operations are centered on central urban areas, our properties are principally located within a 10-minute walk of multiple railway stations.

Building on the expertise in "central urban locations," "small-to-medium-sized buildings," and "office buildings" developed through our real estate revitalization business, we are also expanding into the development of new office buildings, commercial buildings, hotels, and new residential properties.

Through these initiatives, we provide a high level of mobility convenience for occupants and users, while also contributing to the reduction of environmental impact through the suppression of private automobile use.

Evaluation and Improvement through the Sun Frontier Wellness Score (SWS)

Our Company has introduced a proprietary metric, the "Sun Frontier Wellness Score (SWS)," for the quantitative assessment of office comfort and health performance. The SWS is composed of multiple evaluation dimensions, including air quality, daylighting, circulation design, and barrier-free accessibility, and is applied from the design stage onward. In fiscal year 2024, 76% of the offices we delivered met our internal standards, and we are working to achieve further improvements through continuous monitoring and enhancement initiatives. In addition, barrier-free design is adopted as standard practice for all newly constructed office buildings and commercial buildings, with the aim of providing a comfortable and productive environment for all users.

The Sun Frontier Wellness Score (SWS) - PDF（Page 26）

Safety and Health Across the Entire Supply Chain

Under our corporate philosophy of "Rita" (altruism), our Group aspires to achieve "the happiness of all employees, both materially and spiritually." Based on this management philosophy, we regard ensuring the safety and health of not only our employees but all stakeholders, including partner companies, as a fundamental prerequisite of our business activities and one of our most important responsibilities.

In accordance with this policy, we are committed to maintaining safe and hygienic working environments across all processes spanning the planning, design, construction, operation, and management of real estate. Specifically, in addition to compliance with applicable laws and regulations, we have established safety management systems at construction sites and facility operations in collaboration with our partner companies, and continuously implement measures such as the proper use of protective equipment, facility inspections, and risk assessments.

We have also established communication and reporting frameworks to enable prompt response in the event of accidents or disasters, and are committed to the continuous improvement of safety standards through thorough root cause analysis and the implementation of recurrence prevention measures.

Social (S) related data

Ensuring Fairness Across the Entire Supply Chain

In managing our real estate portfolio, our Group regards the consideration of human rights and labor conditions throughout the entire supply chain, including partner companies as well as our own employees, as an important responsibility.

Based on this principle, in the selection and management of partner companies, we place particular emphasis on such considerations as occupational safety, health considerations, fair wage practices, and the prevention of bribery and corruption. Specifically, we evaluate and monitor each company's initiatives through a "Partner Company Questionnaire" and encourage continuous improvement.

We also provide training sessions and opportunities for sharing information for our partner companies, working to enhance both operational quality and social responsibility across our entire real estate portfolio.

Furthermore, in cases where significant risks or inappropriate conduct are identified, we endeavor to ensure effectiveness by requesting corrective action or reviewing our business relationships as appropriate.

Going forward, we will continue to advance supply chain-wide initiatives toward the realization of fair, safe, and secure working environments, thereby achieving sustainable real estate operations.

Human Rights Policy

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