Approach to Sustainability Materiality (Material Issues)

Representative Director, who is the Chief Sustainability Officer, is committed to actively promoting overall sustainability activities, by announcing the abovementioned policy and promotion structure for sustainability.
In undertaking specific initiatives through this endeavor, the Asset Management Company discussed how to determine issues to be addressed and identify priority, and established ESG issues (materiality) that are of particular importance for Samty Residential and the Asset Management Company as described below.

Materiality Identification Process

【Step 1】　Determining and organizing the items of issues

Determine and organize sustainability issues at Samty Residential and the Asset Management Company, with reference to the GRI Standards, evaluation items established by ESG rating agencies (MSCI, FTSE), GRESB, CDP, etc.

【Step 2】　Assessing the importance of issues

Organize the initiatives taken by Samty Residential and the Asset Management Company with regard to the above issues, rate the importance and set priorities of respective issues based on opinions from inside and outside the company, etc., and prepare a shortlist.

【Step 3】　Deliberating issues and identifying materiality at the Sustainability Promotion Meeting

Deliberate the issues determined in Step 2 and identify materiality at the Sustainability Promotion Meeting.

Materiality (Material Issues)

Sustainability Policy	Materiality	Status of Initiatives
1 Consideration for the environment (E)	Reduce environmental footprint	Reducing energy consumption and GHG (greenhouse gas) emissions by promoting energyconservation and adopting renewable energy, etc. Controlling and reducing water consumption Reducing waste output by implementing 3Rs (Reduce, Reuse and Recycle) Giving consideration to environmental issues (such as climate change and biodiversity) in conducting asset management
1 Consideration for the environment (E)	Acquire certifications and assessment by external organizations on sustainability	Promoting acquisition of green building certification
2 Collaborations with stakeholders (S)	Collaborate with property management (PM) companies and operators	Encouraging sustainability activities at PM companies and other suppliers, establishing their selection standards, and promoting sustainable procurement
	Contribute to local communities	Providing better living environments in a wide range of regional cities throughout Japan
	Enhance resident (tenant) satisfaction	Giving environmental and social considerations through collaboration with tenants, and conducting green leasing Promoting measures to maintain and improve tenants' health
3 Work environment improvements, and educating and raising awareness among officers and employees (S)	Develop executives and employees and enhance their awareness of sustainability	Encouraging employees to participate in training and seminars, and promoting measures to enhance employee welfare and benefits Promoting employee health and safety, and ensuring workers' rights and compliance with labor standards, etc.
4 Disclosure of information (G)	Discuss with stakeholders	Conducting timely disclosure and expanding and enhancing disclosure Promoting communication with unitholders and other stakeholders including investors, officers and employees
5 Governance (G)	Secure fair and highly transparent corporate governance	Promoting independence, professionalism and diversity of directors and officers, and enhancing transparency of remuneration for directors Overseeing and handling of risk management Conducting appropriate risk management for transactions with interested parties and other conflicts of interest
5 Governance (G)	Ensure thorough compliance	Ensuring thorough compliance with laws and regulations, establishing an internal whistleblowing system, etc., and ensuring that the company’s code of conduct and ethics regulations are thoroughly known internally