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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Materiality and KPIs
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 | KPI | Progress | |
|---|---|---|---|
| 2022 | 2023 | ||
| Enhancing engagement with stakeholders | Enhancement of the information provided to all investors to contribute for fund monitoring : ESG-related information ratio in asset management reports : 100% (2030) | 100% | 100% |
| 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 green loan borrowing ratio for funds managed by our company : green loan number ratio of managed funds excluding bridge funds is 40% or more (2030) | 7.6% | 15.8% |
| Mezzanine loan lending in consideration of sustainability : Percentage of green mezzanine lending will be more than 25% (2030) | 16.7% | 19% | |
Global environmental conservation
| Materiality | KPI | Progress | |
|---|---|---|---|
| 2022 | 2023 | ||
| Reducing energy consumption |
Annual average reduction of energy consumption intensity and GHG emission intensity by 1% or more 〈Target〉Properties managed by our company (excluding mezzanine debt fund) *Reductions in electricity and gas consumption are calculated using 2019 as the base year |
Energy reduction rate +6.5% GHG reduction rate ▲32.7% |
Energy reduction rate +13.7% GHG reduction rate ▲17% |
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Percentage of renewable energy use：70% or more (2030) 〈Target〉Domestic properties managed by our company (excluding mezzanine debt fund) *based on the total floor area of properties directly managed by our company |
74% | 88% | |
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Percentage of Green Lease : 90% or more (2030) 〈Target〉Domestic pr operties managed by our company (excluding residential and mezzanine debt fund) *based on rental floor area |
44% | 49% | |
| Promoting acquisition of environmental certification, etc. |
Percentage of environmental certification acquired : 70% or more (2030) 〈Target〉Properties managed by our company (excluding mezzanine debt fund) * 3 ★ or more (In case of LEED certification, more than Silver level) *Based on the total floor area |
59% | 69% |
| Responding to climate change | Promotion of TCFD Initiatives by DREAM Private REIT Inc. Qualitative Disclosure : FY2023 Quantitative Disclosure : FY2024 |
Qualitative analysis-disclosed | Quantitative analysis-disclosed |
Realizing sustainable societies
| Materiality | KPI | Progress | |
|---|---|---|---|
| 2022 | 2023 | ||
| Improving supply chain transparency | Percentage of description for human rights provisions in PM contract : 100% (2023) *based on the number of properties | 23% | 81% |
| Percentage of properties that incorporate human rights considerations into evaluations of PM companies : 100% (2030) *based on the number of properties | 100% | 100% | |
| Improving investor and tenant satisfaction |
Regarding the investor satisfaction surveys and tenant satisfaction surveys for properties and funds managed by our company : Investor satisfaction surveys : Ongoing survey for more than 90% Tenant satisfaction surveys : Ongoin surveys for more than 70% |
Investor satisfaction survey : 83% Tenant satisfaction survey : 38% |
Investor satisfaction survey : 79% Tenant satisfaction survey : 45% |
| Contributing to the revitalization of local communities | Contribution to local communities through the provision of lands and buildings managed by our company | Performed (No quantitative target) |
Performed (No quantitative target) |
Growth of Employees and Organizations
| Materiality | KPI | Progress | |
|---|---|---|---|
| 2022 | 2023 | ||
| Improving employee satisfaction | Continuous maintenance of positive response ratio of 70% or more in organizational climate survey |
Employee engagement : 66% Environment to make the most of employees : 73% |
Employee engagement : 62% Environment to make the most of employees : 67% |
| Promoting diversity | Percentage of female managers : 40% ± 10% (2030) | 9.5% | 12% |
| Gender composition ratio Female 50% : Male 50%, + / -10% (2030) |
Female : 30% Male : 70% |
Female : 30% Male : 70% |
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| Childcare leave acquisition rate for male : 90% or more (2030) | N/A | 50% | |
| Enhancing governance system |
The following will be carried out in every year in principal : Compliance monitoring (4 times or more), Compliance training (twice or more), Compliance discussions (once), Internal audits (once or more), Internal management system survey (once). |
Completed | Completed |
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.
Sustainability promotion office
As an organization under the direct control of the President and CEO, this office 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.
