Materiality

Materiality Identification Process

Step 1 Identification of Issue Items
With reference to the evaluation items of the main evaluation organizations (GRESB, etc.) and disclosure frameworks (GRIs, etc.) related to sustainability of the Investment Corporation, issues were identified over a wide area based on the expectations of stakeholders and the status of other companies in the same industry.
Step 2 Focusing and Prioritizing
Formulate materiality (draft) by organizing and integrating issues as appropriate and prioritizing them in light of social trends and expectations demanded by internal and external stakeholders and the impact on the business and performance of the Investment Corporation.
STEP 3 Meetings, Validation and Approval by Management
The materiality (draft) is discussed external specialized institution and management, including President & Chief Exective officer of MIJA, and approved by the Sustainability Committee of MIJA identify materiality.

Identified Materiality

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Environment (E)
Responding to Climate Change/Enhancing Portfolio Resilience
KPIs and targets GHG Emissions (Scope 1 + 2) Target: 42% reduction by FY 2030 (based on FY 2021)
Total GHG Emissions
For the entire Value Chain
Target: Achieving Net Zero by FY 2050
Energy consumption intensity Target: 15% reduction by FY 2030 (based on FY 2017)
Policy We aim to reduce greenhouse gas emissions by introducing equipment that contributes to energy efficiency and energy conservation in our portfolio.
Page https://mel-reit.co.jp/en/esg/environment/
Resource savings
KPIs and targets Water consumption intensity Target: Not increased by FY 2030 (based on FY 2017)
Waste recycling Target rate: 70% or more by FY 2030
Policy We will promote the efficient use of resources (including water) and promote the reduction and recycling of waste.
When disposing of waste, we comply with laws and regulations and properly dispose of such waste (including hazardous substances).
Page https://mel-reit.co.jp/en/esg/environment/
Promotion of Green Portfolio/Active Receipt of Environmental Certification
KPIs and targets Environmental Certification Target: Increase to 100% by FY 2030
Policy Obtain various Environmental Certifications and visualize the objectivity and performance of GHG emissions reductions.
Page https://mel-reit.co.jp/en/esg/external/greenbuilding.html

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Society (S)
Improvement of Health, Safety and Comfort/Improvement of Tenant Satisfaction
KPIs and targets Regular implementation of Tenant Satisfaction Surveys
Policy We aim to improve tenant satisfaction by conducting regular tenant satisfaction surveys, conducting renovation work in response to diversifying social needs, and expanding tenant support services. (environmental and energy-saving measures, health, safety, comfort improvement, etc.)
Page https://mel-reit.co.jp/en/esg/social/
Contribution to local communities and implementation of community contribution programs
KPIs and targets Regular implementation of community contribution programs
Policy We will strive to contribute to society by regularly implementing community contribution programs (including participation in local cleaning activities) and contributing as a disaster prevention center for our portfolio.
Page https://mel-reit.co.jp/en/esg/social/communities.html
Creating a safe and comfortable work environment for everyone and improving employee satisfaction
KPIs and targets Implementation of an employee satisfaction survey
Acquisition rate of paid holidays Target: 90% or more (calculated by employees on April 1 of each fiscal year)
Female management ratio Goal: 30%(By FY 2030)
Acquisition rate of childcare leave Goal: 100%(By FY 2030)
Policy We will respect the basic rights and diversity of our employees and create an environment and system that maintains a good work-life balance.
Page https://mel-reit.co.jp/en/esg/social/diversity.html
Human Resource Development by Enhancing Continuous Training
KPIs and targets Training hours per employee
Number of qualified employees
Policy We regard employees as important management resources "human assets" for a company, and conduct various types of training to improve a wide range of expertise and skills, as the growth of employees is essential to our growth as a company.
Page https://mel-reit.co.jp/en/esg/social/developing.html

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Governance (G)
Thorough Compliance and Risk Management
KPIs and targets Meetings of the Compliance Risk Management Committee Target: Held as needed
Frequency of compliance and risk management training sessions Target: 4 times par year
Compliance and Risk Management Training Participation Rate Target: 100%
Safety confirmation training Target: twice a year
Internal audit
Policy
  • We aim to thoroughly comply with laws and regulations by fostering each employee's awareness of compliance and risk management and enhancing his/her knowledge.
  • We will conduct appropriate internal audits to ensure effective internal controls.
  • We will prevent unfair and impartial transactions with stakeholders based on internal regulations and deliberations by the Compliance and Risk Management Committee.
Page https://mel-reit.co.jp/en/esg/governance/compliance.html
Enhancing Governance
KPIs and targets Frequency of the Board of Directors of MEL
Attendance rate for the Board of Directors of MEL
Policy We aim to build a governance system by ensuring the third-party nature and diversity of the Directors of MEL.
Page https://mel-reit.co.jp/en/esg/governance/corporate.html
Enhance Clear Information Disclosure and Engagement with Stakeholders (Investors)
KPIs and targets GRESB、MSCI、PRI
Number of IR meeting
Policy We aim to build an strong relationship of trust by disclosing information in a timely, appropriate, and proactive manner, including sustainability information, and regularly holding engagement with stakeholders (investors) through business activities that utilize IR and other means.
Page https://mel-reit.co.jp/en/esg/external/environmental.html
https://mel-reit.co.jp/en/esg/social/investor.html