Initiatives for Sustainability
DREAM aims to maximize societal Well-being through real estate management. We will leverage our reliability, discernment, and innovativeness as a pioneer in real estate management to meet the needs of our stakeholders one step ahead of the curve, and strive to achieve a sustainable society.
Sustainability Priority Areas
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Sustainable development of real estate markets
In the real estate investment management market, which connects the real estate and finance markets, the finance and real estate markets and related businesses are expected to expand through proper fund management. We will continue to take on challenges to contribute to the sound expansion and sustainable development of the real estate investment management market by developing and managing real estate investment products that address sustainability issues, as well as strengthening trust relationships through appropriate information disclosure and the promotion of dialogue/engagement with stakeholders.
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Global environmental conservation
Global warming causes climate change, resulting in severe natural disasters, and adverse effects on natural resources such as forests and water, as well as the ecosystems of floras and faunas. We will contribute to the conservation of the global environment, including the reduction of greenhouse gas emissions, the realization of a carbon-free and a recycling-oriented society, and considerations to biodiversity, by considering environmental and climate change issues, management portfolios, and in-house CO2 emissions and waste reduction, in the course of our real estate investment management, financing, and product development.
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Realizing sustainable societies
In order to realize a sustainable society, it is necessary to conduct business with consideration given to local communities. We will contribute to the improvement of social well-being by managing private funds properly through real estate investment products, collaborating and coexisting with local communities, and developing and managing real estate products that create positive impacts on society and infrastructures, as well as emphasizing respect for human rights throughout the supply chain, including in business and organizational operations.
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Growth of Employees and Organizations
In order for a company to grow, it is necessary to develop employees who can revitalize the organization and create innovation. We aim to create an open organization based on a culture that encourages people to take on challenges. In addition, we will respect all forms of diversity, eliminate disparities and discrimination, raise employee awareness of social issues, provide opportunities to promote action toward solutions, and create a workplace environment where employees can work as themselves and generate new ideas.
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Targets and Progress
In order to realize our corporate vision, we have established the following materiality that we should focus on as a real estate investment company, and the KPIs we should aim for in relation to each materiality.
We will continue to focus on sustainability initiatives that contribute to the sustainable development of the economy and society and the conservation of the global environment, while making rational and appropriate revisions to these materiality and KPIs as necessary, taking into account changes in the environment surrounding our business and global trends.
Sustainable development of real estate markets
| Materiality | Targets and Progress | Progress | |
|---|---|---|---|
| FY2024 | FY2025 | ||
| Enhancing engagement with stakeholders |
Senior management engagement with investors | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 |
| Conducting an annual investor survey and disclosing the results to investors, or conducting individual meetings with investors (i.e., methods equivalent to a survey) | Implemented | Implemented | |
| Obtaining external GRESB assessments and disclosing information based on international initiatives | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 | |
| Implementing innovations related to product development and investment methods | Green loan or sustainability-linked loan ratio of operating funds, excluding bridge funds: 40% or higher | 23.9% | 37.7% |
| Green loan ratio for mezzanine debt funds: 25% or higher | 15.4% | 16.9% | |
| (Action Indicator) Improving operational efficiency through the creation of new business opportunities and leveraging digital transformation (DX) | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 | |
Global environmental conservation
| Materiality | Targets and Progress | Progress | |
|---|---|---|---|
| FY2024 | FY2025 | ||
| Response to climate change |
100% monitoring coverage of energy consumption intensity and GHG emissions intensity, and disclosure of year‑on‑year percentage changes for each intensity〈Target〉Properties managed by the company (excluding mezzanine debt fund) *Calculated using the electricity and gas consumption of properties managed directly by the company, compared to FY2019 |
Monitoring coverage: N/A Change in energy consumption intensity: +7.1% Change in GHG emissions intensity: −15.7% |
Monitoring coverage: N/A Change in energy consumption intensity: +4.8％ Change in GHG emissions intensity: -13.8％ |
| DREAM Private REIT Inc. ; ・reduction of GHG emissions intensity by 75% by 2030 compared to 2016 levels ・achievement of net zero by 2050. |
Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 | |
| Renewable energy adoption ratio: 70%〈Target〉Domestic properties managed by our company (excluding mezzanine debt fund) *based on the total floor area of properties directly managed by our company |
86.1% | 83.6% | |
| Green lease adoption rate: 90%〈Target〉Domestic pr operties managed by our company (excluding residential and mezzanine debt fund) *based on rental floor area |
56.9% | 68.9% | |
| Ratio of properties with environmental certifications: 70%〈Target〉Properties managed by our company (excluding mezzanine debt fund)
*Based on the total floor area |
72.4% | 75.8% | |
| Analysis of climate‑related risks and opportunities and responses thereto at DREAM Private REIT Inc. (conducted once every three years) | Not applicable to the relevant fiscal year |
Implemented applicable to the relevant fiscal year |
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| Initiatives considerate of natural capital | (Action Indicator) Sharing lessons learned from actual disaster damage across the company, strengthening resilience frameworks, and further reducing risks | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 |
| (Action Indicator) Implementing initiatives that consider natural capital | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 | |
Realizing sustainable societies
| Materiality | Targets and Progress | Progress | |
|---|---|---|---|
| FY2024 | FY2025 | ||
| Building a fair and sustainable value chain through collaboration |
Percentage of description for human rights provisions in PM contract : 100%*based on the number of properties | 95.3% | 96.9% |
| Percentage of properties that incorporate human rights considerations into evaluations of PM companies : 100%*based on the number of properties | 100% | 100% | |
| Implementation of tenant satisfaction surveys and a 100% feedback rate to property management companies |
Implementation rate: 73.5% Feedback rate: N/A |
Implementation rate: 80.7% Feedback rate: N/A |
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| Contributing to the revitalization of local communities |
(Action Indicator)Contributing to local communities through the provision of lands and buildings managed by our company | Implemented | Implemented |
Growth of employees and organizations Materiality KPI
| Materiality | Targets and Progress | Progress | |
|---|---|---|---|
| FY2024 | FY2025 | ||
| Supporting employee performance and growth | Maintaining a positive response rate of 70% or higher in organizational climate surveys |
Employee engagement 58.0％ Employee Enablement 70.0％ |
Employee engagement 54.0 % Employee Enablement 74.0 % |
| Promoting diversity and inclusion |
Female manager ratio: 30% or higher | 12.5% | 12.0% |
| Gender composition ratio: Female 50% / Male 50% (±10%) |
Female 36.5％ Male 63.5％ |
Female 42.4% Male 57.6% |
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| Male parental leave utilization rate: 100% | 100% | 100% | |
| Strengthening Governance |
Implementation of compliance training (at least twice per year) and a 100% Participation rate | Training implemented Participation rate: Not applicable, as this item will be introduced in FY2026 |
Training implemented Participation rate: Not applicable, as this item will be introduced in FY2026 |
| Implementation of internal audits and a 100% follow-up rate for audit findings | Internal audit implemented Response rate: Not applicable, as this item will be introduced in FY2026 |
Internal audit implemented Response rate: Not applicable, as this item will be introduced in FY2026 |
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| Reviewing internal frameworks and documenting the outcomes on an annual basis in response to significant regulatory guidelines, laws and regulations that are highly relevant to our business, as well as publicly disclosed misconduct or inappropriate cases. | Not applicable, as this item will be introduced in FY2026 | Not applicable, as this item will be introduced in FY2026 | |
Internal Structure for Promoting Sustainability Management
Sustainability Committee
We have established a Sustainability Committee chaired by President and CEO with the participation of external experts. This committee aims to achieve sustainable growth for our company and the Funds we manage in response to the demand of investors. We deliberate on key issues related to ESG (sustainability) investments and sustainability-related initiatives.
Sustainability Officer
The Sustainability Officer is appointed by the President and CEO after obtaining approval from the Board of Directors. The Sustainability Officer assists the President and CEO, who is the Chief Sustainability Officer, and promotes initiatives related to overall sustainability management, including responses to climate-related issues. Human Resources & Corporate Administration Department assists the Sustainability Officer and is responsible for planning, proposing, supervising, and promoting overall company-wide sustainability initiatives.
Policies Related to Sustainability
Responsible Investment Policy
Diamond Realty Management Inc. (“DREAM”) enacted its Responsible Investment Policy in September, 2023. (see below) As a signatory of PRI, DREAM commits to conducting its business activities in accordance with the Six Principles of the PRI.
Human Rights Policy
In December 2024, we established our own Human Rights Policy, which outlines our approach to respecting human rights and sets out the issues we need to address in order to achieve the well-being set out in our purpose.
Access to Remedy
Internal
Whistleblowing
System
for Employees
We have established an internal whistleblowing system that allows our officers and employees to report, consult on, or raise concerns regarding human rights violations or compliance-related matters. Investigations and responses are carried out by impartial personnel who have no conflicts of interest, including the Chief Compliance Officer, with the objective of resolving issues and implementing corrective actions. We strictly prohibit any form of retaliation or disadvantageous treatment against officers or employees who make reports or disclosures in good faith.
Consultation
Contact Point
for External
Stakeholders
We accept consultations from external stakeholders through the grievance mechanism contact point established and operated by Mitsubishi Corporation, our shareholder, regarding specific cases in which our business activities have caused, or may potentially cause, adverse impacts on human rights and/or the environment. We are committed to preventing and mitigating such adverse impacts. Matters that are not related to human rights or environmental rights are outside the scope of this grievance mechanism. Information provided will be handled with the utmost care, including maintaining confidentiality and prohibiting any disadvantageous treatment of the person raising the concern, and will be shared only within a reasonable scope on a need-to-know basis (including, where necessary, with external parties).
Grievance Mechanism (Mitsubishi Corporation Corporate Website)