Messages from the Director Responsible for Sustainability and an Outside Director

Contributing to solving social issues through business activities

As the world undergoes major changes due to the impact of the COVID-19 pandemic, the international situation, and other factors, the sense of urgency about social sustainability, including climate change and human rights, continues to escalate. It is expected of corporations that they promote a virtuous cycle between economy and the environment to drive the creation of a sustainable society. Today, it is no longer possible to increase corporate value without taking action to increase social value.
To respond appropriately to this situation and contribute to the realization of a sustainable society while engaging in business activities, we must consider the best options the Group should take based on identification of accurate information and dialogue with our stakeholders.

Vision for 2050 and review of key themes related to sustainability

The Mitsubishi Estate Group has set out the Mitsubishi Estate Group Sustainability Vision 2050, “Be the Ecosystem Engineers,” as our vision for 2050.
We have been promoting urban development in a variety of locations, principally the Marunouchi area (the Otemachi, Marunouchi, Yurakucho districts), for over 130 years. Urban development involves working in partnership with various stakeholders to nurture the city together. The Group has promoted urban development while making it a goal to constantly provide society with new value by considering local communities and the natural environment, addressing the diverse social issues and responding to changes in the times, and designing plans based on a forward-looking perspective. As the Ecosystem Engineers, the Mitsubishi Estate Group provides the spaces and infrastructure (ecosystems) in which diverse individuals and corporations are able to coexist sustainably and thrive together economically, environmentally, and socially. We believe doing this creates new value and innovation which leads to the development of our goal: a sustainable city and society.

In May 2024, the Group announced the review of key themes and material issues related to sustainability. This was done with an intent to make the relationship of the Group’s strategy for increasing social value to its business activities and the contribution to financial value clearer, as well as to present this information to internal and external stakeholders. In my capacity as the director responsible for sustainability, I lead the Sustainability Management and Promotion Department in the planning and drafting of measures related to sustainability targets across the Group. We formulate measures following deliberations and reports at the Sustainability Committee, which is chaired by the President of Mitsubishi Estate. The current revisions were adopted after the Sustainability Committee and the Board of Directors evaluated their appropriacy. We are working toward providing even greater value for all of our stakeholders and realizing a sustainable society through various themes related to urban development and services, the global environment, respect for people, and value creation, which are defined in “Sustainability of the Mitsubishi Estate Group and Society: Four Key Themes.”

Promoting urban development that creates value in partnership with diverse stakeholders

The Mitsubishi Estate Group must share common values and standards for conduct and make concerted efforts with diverse stakeholders in aiming to realize a sustainable society and the Group’s mission. Mitsubishi Estate has established the Sustainability-Minded Construction Architectural Design and Construction Policies for real estate development that outline the conditions required by type and scale in areas such as design specifications. Moreover, from the perspective of supply chain management, we established the Mitsubishi Estate Group Supplier Code of Conduct in line with global standards to reinforce systems for verifying compliance of suppliers on human rights, the environment, and other areas. In 2023, we introduced a multilingual consultation and relief help desk service as a grievance mechanism available to foreign workers at construction sites. Through these and other steps we enhance measures aimed at building a sustainable supply chain.
Going forward, we will continue our work to engage in dialogue and collaboration with all stakeholders to solve diverse social issues and respond to the needs of society as well as the demands and expectations of the Mitsubishi Estate Group through our core business, thereby striving to maximize the value we provide to all stakeholders and further enhance our corporate value.

Valuing diversity and constantly working to update management

I assumed the position of Outside Director in 2019. The Group had transitioned to the structure of a Company with Nominating Committee, etc. before that, and has also pushed ahead with governance reform since. At present, Outside Directors account for half of the Board of Directors, and non-executive Directors form a majority. The Outside Directors are all Independent Officers, of which two are women. I believe that the independence and diversity of the Board of Directors is adequately maintained at present. The involvement of members with a range of positions and views makes our discussions more vigorous. Amid an ever-changing management environment and external demands that also keep changing, it is essential to continue examining the optimum composition of the Board from multiple perspectives, including professional background, gender, and nationality. Rather than being satisfied with the status quo, we need to constantly adapt to the changes around us.

An organization cannot grow without embracing diversity. The importance of this should not only be recognized by the Board of Directors, but by all of the Group’s officers and employees. When faced with different ways of thinking, we should be inspired to search for what we can gain from such differences, rather than avoiding them. At the moment, the emphasis is on further efforts to promote the empowerment of women and increasing the percentage of women in management and executive positions. However, I think that the fundamental idea behind this is the theme of how diverse human resources — not just by gender — can interact, inspire one another to improve their skills, and work together to strengthen the organization. We respect diverse ideas in the workplace and in management and seek to develop a sense of business that is in line with the times.

Reaffirming the relationship between business activities and sustainability through the review of Long-Term Management Plan 2030

Monitoring the Long-Term Management Plan is one of the important roles of the Board of Directors, and we have continued to hold intense discussions based on detailed explanations from the executive side. In May 2024, we announced a review of Long-Term Management Plan 2030 against the backdrop of unprecedented major changes in domestic and international conditions, including the COVID-19 pandemic, the conflict in Ukraine, the decoupling of the United States and China, and rapid inflation. The question of how to transform our strategies, tactics, and portfolio in response to these changes has been an ongoing topic of discussion at the Board of Directors over the past few years, and we have continued to hold in-depth discussions.

Through the review of Long-Term Management Plan 2030, we revised the key themes related to sustainability in terms of strategy for increasing social value in light of the major changes in domestic and international conditions. While steadfastly maintaining management with the two strategic drivers of increasing social value and increasing shareholder value, which serves as the foundation, we clarified the Mitsubishi Estate Group’s business activities from the perspective of sustainability, analyzed the material issues, and reorganized four key themes as actions to establish sustainability for both the Group and society. I think it was particularly significant that we clarified the fact that promoting both the tangible and intangible aspects of real estate, the Group’s core business, contributes to increasing social value in and of itself. This enables employees to feel confident that implementing and completing their own work is what leads to sustainability. That, in turn, has made dialogue with external stakeholders such as investors easier.

Expecting measures that address changes and create new trends

Amid very rapid changes in the environment, we must continue aiming to constantly upgrade and achieve the Long-Term Management Plan while engaging in a series of dialogues with internal and external stakeholders. The Mitsubishi Estate Group has a robust management foundation backed by the traditions of the Otemachi, Marunouchi, and Yurakucho district. I expect the Group to take advantage of this strength not only to address the waves of change but also to develop a variety of measures with the courage to create new trends itself as a Group.

I have been involved in management of companies involved in the city gas business, electricity business, and the energy service business in Japan and overseas for many years. I also served as an officer at Keidanren for six years and interacted with many corporate executives. I hope to draw on the knowledge I have based on my past experience to fulfil my responsibility to increase the corporate value of the Mitsubishi Estate Group and contribute to a sustainable society.