Materiality and KPIs

In order to realize our Sustainability Vision, we have defined the materiality that we should focus on as a real estate management company and the KPIs that we should aim for with respect to each materiality as follows. In light of changes in the environment surrounding our business and global trends, we will focus on initiatives for sustainability that contribute to the conservation of the global environment and the sustainable development of the economy and society, while rationally and appropriately reviewing these materiality and KPIs as necessary.

Sustainability Priority Areas	Materiality	KPI
Global environmental conservation	Reducing energy consumption	Annual average reduction of energy consumption intensity of 1% or more Renewable energy introduction ratio: 70% (2030) 〈Target〉 Domestic real estate managed by our company.(excluding mezzanine debts) Total floor area base of the Properties which our company has management authority Green lease introduction ratio: 90% (2030) 〈Target〉 Domestic real estate managed by our company (excluding residential properties and mezzanine debts) Total floor area base
	Promoting acquisition of environmental certification, etc.	Ratio of properties that have acquired environmental certification, etc.: 70%(2030) 〈Target〉Real estate managed by our company (excluding mezzanine debts) * 3 ★ or more *Total floor area base
	Responding to climate change	Promotion of TCFD Initiatives by DREAM Private REIT Inc. Qualitative Disclosure: FY2023 Quantitative Disclosure: FY2024
Sustainable development of real estate markets	Enhancing engagement with stakeholders	Expansion of information provided that contributes to fund management monitoring for existing investors
	Implementing innovations related to product development and investment methods	Launch and management of new funds that give consideration to sustainability
	Promoting green finance	Promotion of procurement of green loans, etc. in response to the acquisition of environmental certification, etc. for real estate managed by our company Acquisition of receivables with consideration for sustainability as a mezzanine lender
Realizing sustainable societies	Improving supply chain transparency	Clarification of human rights provisions in property management contracts: 100% (2030) Consideration of human rights considerations in property management companies assessment: 100% (2030)
	Improving investor and tenant satisfaction	Conducted investor satisfaction surveys and tenant satisfaction surveys at DREAM Private REIT Inc. Utilization of the above survey results for our fund management
	Contributing to the revitalization of local communities	Contribution to local communities through the provision of real estate land and facilities managed by our company
Employee and organization growth	Improving employee satisfaction	Continuous maintenance of positive response ratio of 70% or more in organizational climate survey
	Promoting diversity	Female managers ratio: 40%, + / -10% (2030) Male/female ratio 50%: Male 50%, + / -10% (2030) Number of male employees taking childcare leave
	Enhancing governance system	Regular implementation of compliance monitoring, compliance training, compliance discussions, internal audits, internal control system surveys, etc.