【H1】Sustainability

Approach and System

Approach and System

Approach to Sustainability

Mori Hills REIT Investment Corporation (MHR) and Mori Building Investment Management Co., Ltd. (MIM) aim to contribute to the creation and development of cities by providing investment opportunities in high-quality urban assets to investors, as stated in the Basic Policy of MHR and Company Mission of MIM.
Society today is faced with various challenges such as global warming, preservation of ecosystems and other environmental problems, as well as social problems, including human rights and the decreasing birthrate/aging population. Companies need to contribute to solving these issues amidst conducting business activities, and we believe that working on these issues will in fact lead to increasing our competitiveness.
MHR and MIM aim to contribute to the realization of a sustainable society and maximization of unitholder value in the medium to long term by emphasizing ESG (Environment, Social and Governance) and investing in high-quality urban assets while striving to improve various environmental and social performance levels.

Sustainability Promotion System

Our operations connected to sustainability will be promoted primarily by the Sustainability Committee to be established by MIM.
The Chairperson of the Committee shall be the President & CEO while all directors and some Administration staff shall comprise the committeepersons. Various initiatives will be implemented based on the Sustainability Promotion Program which is established every fiscal year.
In principle, the Committee shall meet four times a year and shall formulate policies and the Sustainability Promotion Program, monitor progress of programs, deliberate various suggestions from departments, etc. in light of social conditions and the operating status of MHR.
The President & CEO approves the policies and promotion programs, constantly monitors the thorough promotion of sustainability, and establishes and maintains a sustainability promotion structure as a responsible party in promoting sustainability.
Moreover, sustainability-related efforts shall be reported on periodically to the Board of Directors of both MHR and MIM.
Each Board oversees the status of initiatives for important issues related to ESG and the status of compliance and risk management.

Initiatives throughout the Entire Supply Chain

Promotion of sustainability operations, whether environmental or social, requires initiatives that involve the whole supply chain. We believe it is necessary to pursue initiatives with various stakeholders with whom our values are aligned.
By proactively initiating communication with stakeholders such as tenants, local residents, property management companies and our sponsor Mori Building that provides the property pipeline, and aligning our values, we aim to contribute to the realization of a sustainable society.

Important ESG Issues (Materiality)

Materiality Identification Process

In 2020, MHR identified important issues related to ESG (Materiality) using the process below.

*1
The SDGs (Sustainable Development Goals) are 17 goals included in the Agenda 2030 for Sustainable Development which was adopted by the United Nations Sustainable Development Summit held in September 2015.
*2
ISO 26000 is an international standard for organizational social responsibility published in 2010 by the International Organization for Standardization (ISO).
*3
The GRI Standards is an international standard related to sustainability reporting established in 2016 by Global Reporting Initiative (GRI), an international non-profit organization.
*4
SASB (Sustainability Accounting Standards Board) is a U.S. non-governmental organization that proposes standards for sustainability information disclosure for companies. SASB develops sector-specific and industry-specific sustainability accounting standards (SASB standards) for companies for when they disclose sustainability information to investors.
Depiction of Evaluating the Importance of Issues (Critical Issue Matrix)

Issues with high importance have been
designated as “areas to respond to with priority”
and identified as materiality
(See below for MHR’s materiality)


MHR’s materiality

Stakeholder Engagement

MHR conducts its busines activities by engaging with various stakeholders including its employees, tenant and local communities, property management (PM) companies, and unitholders. MHR aims for sustainable growth by proactively communicating with its stakeholders to understand and respond to their expectations and requests.