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 |
Small and medium-sized buildings that can still be used with increased value are being demolished
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Waste of resources
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|---|---|---|---|---|---|---|
| Key Measures | Extending the life and health of real estate | Energy conservation and reduction of environmental impact by Real Estate Revitalization Business | ||||
| Specific Measures | Extension of economic useful lives of buildings through real estate revitalization constructions | Maintain the“ health” of buildings by improving the occupancy rate of old buildings through comprehensive real estate support | Reduction of CO2 emissions through promotion of real estate revitalization | Offset real estate revitalization constructions’ CO2 emissions with credits | Initiatives for Reducing Greenhouse Gas Emissions Company-wide | |
| Goal (KPIs) | Extend economic useful lives by 30% or more | Occupancy rate of 90% or more for buildings over 30 years old | 90% or more of continued management after replanning properties sales | Reduce CO2 emissions by 12% or more on average compared with building reconstruction | Carbon offset 100% | Reduce greenhouse gas emissions (Scope 1 and 2) based on FY2022 baseline. Reduce greenhouse gas emissions by 22% in FY2030 Carbon neutral in FY2050 |
| Results for FY2024/3 |
54.1 % | 93.8 % | 98.0 % | 12.7 % | 100 % | ー |
| Related SDGs |
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Regional revitalization
| Social Issues to be Solved | Revitalization of regional economies | Responding to natural disasters that are becoming more devastating | ||
|---|---|---|---|---|
| Key Measures | Create buildings, offices, and spaces with “job satisfaction” and “creativity” that contribute to economic growth | Prevent and mitigate disaster through regional cooperation | ||
| Specific Measures | Promotion of real estate revitalization with consideration for well-being | Providing set-up offices with emergency supplies or installation space | Providing information that contributes to the improvement of tenants’ disaster prevention awareness | |
| Goal (KPIs) | Percentage of newly providing replanning properties that exceed the internal standard established during the fiscal year 2022. 30% in FY2023 50% in FY2025 70% in FY2030 |
Conduct tenant satisfaction survey (company-owned properties) |
5 lots or more by fiscal 2023 | Posting disaster prevention information on dedicated websites: 100% in fiscal 2023 (company-owned properties) |
| Results for FY2024/3 |
68.8 % | Tenant satisfaction 96.7 % |
9 lots | 100.0 % |
| Related SDGs |
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Human resource development
| Social Issues to be Solved | 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 | ||
|---|---|---|---|
| Key Measures | Respect and utilize diversity | Create workplaces with job satisfaction, creativity, and growth opportunities | |
| Specific Measures | Creating a work environment suited to each employee’s life stage and provide flexible training opportunities | Establishment of next-generation leader development program, support system for external trainings, etc. | Utilization of DX, improvement of business processes and improvement of individual abilities |
| Goal (KPIs) | Ratio of women in managerial positions: 12% or more by April 2025 (Sun Frontier Fudousan Co., Ltd.) |
Ratio of training hours to prescribed working hours: 12% or more (Sun Frontier Fudousan Co., Ltd.) |
Year-on-year increase in ordinary profit per hour (per Sun Frontier Fudousan full-time employee) |
| Results for FY2024/3 |
10.3 % (April 1, 2024) |
12.1 % | Not achieved （92%） |
| Related SDGs |
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