Our approach to sustainability
Since our establishment, under the basic policies of “investments in residential properties with high growth potential” and “utilization of the Tokyu Fudosan Holdings Group”, CRR has achieved internal and external growth by focusing our investment in assets located in the 23 wards of Tokyo where has a strong demand for rental residences.
In the meantime, we have witnessed changes in social structure and lifestyle in Japan, such as decrease in population caused by declining birthrate and aging population; migration of younger generations to metropolitan areas; change in residential preference from ownership to renting; and the government-led workstyle reform.
In recent years, demand for corporations to respond to such social issues has increased, considering that these issues and changes may become a risk factor for corporate business continuity. Triggered by the adoption of Sustainable Development Goals (SDGs) by the United Nations, the recognition that management focus on ESG (Environment, Society and Governance) will contribute to the enhancement of the corporate value, has been widespread.
In light of this trend, our asset management company TLC REIT Management, Inc. (the “Asset Management Company”) established their Sustainability Policy in April 2019 as their basic approach towards contributing to the development of sustainable society.
Since the theme defined in their Sustainability Policy is wide, the Asset Management Company has identified key issues as priority (the “Materiality”) which are related to our business such as environmental and energy saving measures, coexistence with the local community, and governance. CRR also shares the Materiality with the Asset Management Company as well. In addition, CRR respects the human rights of stakeholders involved in its business to pursue sustainable growth.
We will make sincere efforts to address our Materiality, and appropriately disclose the specifics of the material issues as well as our progress and achievements to our stakeholders.
The Asset Management Company is aware of the issues concerning environment, social consideration and governance enhancement, and shares the Group sustainability vision as a member of the Tokyu Fudosan Holdings Group (the “Group”). The Asset Management Company believes that commitment to these issues is equivalent to its social responsibility and implementation of its management philosophy, which will contribute to the development of sustainable society. It has established a sustainability policy (the “Policy”) to implement this philosophy.
Please refer to the “Sustainability Initiatives” by the Asset Management Company for details of the Policy.
To implement the Sustainability Policy, the Asset Management Company periodically holds Sustainability Promotion Council which comprises of company-wide members including the representative director and president of the Asset Management Company who has the ultimate decision making authority at the Asset Management Company, to share sustainability related information, and to review and promote commitment to the issues.