Messages
Message from the President
Message from the President
We will create a sustainable future society by bringing about a virtuous cycle of social and corporate value.
Social change provides opportunities for creating new value
Fiscal 2026 marks the beginning of a new stage of pursuing even more rapid growth for the Mitsubishi Estate Group. As we enter the second half of Long-Term Management Plan 2030, we have set this year as a pivotal one in which to accelerate growth and build momentum toward achieving our targets. In fiscal 2025, our business operations remained firm, and we made steady progress toward achieving the Long-Term Management Plan. However, the environment surrounding the company has become more uncertain than ever due to such factors as increasingly severe climate change, escalating geopolitical risk, demographic changes, labor shortages, rising construction costs, and fluctuations in the price of energy. It could be said that we are now standing at a major turning point for society and the economy. Nevertheless, these changes also serve as an opportunity to reexamine the way our business operates and to embrace the challenge of creating new value. As the structure of society and people’s values change, companies are required to not simply react to changes in the environment but also to understand the true essence of the changes from a global perspective, question what value is truly needed by society, and adopt a proactive approach to creating transformation.
The Mitsubishi Estate Group has advocated management driven by strategies to increase both social and shareholder value. This will also be our unwavering approach going forward. I have always believed that social value and shareholder value are not contradictory. I am convinced that continuing to create value that is essential for society will ultimately support sustainable corporate growth and lead to increase in shareholder value.
What we aim to achieve under Long-Term Management Plan 2030 is not simply mere numerical targets. Our aim is to link solutions for social issues to business growth through urban development and create value that we can proudly pass down to future generations. Precisely because we are living in times of increasing uncertainty, we will practice management focused on both social and shareholder values even more intensely and pursue value creation that is unique to Mitsubishi Estate.
Promoting strategies to increase social value as the driving force of value creation
In the review of Long-Term Management Plan 2030 announced in fiscal 2024, we updated our key themes related to sustainability and defined “Sustainability of the Mitsubishi Estate Group and Society: Four Key Themes” which addresses “urban development and services,” “the global environment,” “respect for people,” and “value creation.” This was to make it clear that rather than viewing sustainability as part of a framework that is separate from our business activities, our business — particularly our core business of urban development — is in itself the action by which we create social value.
In fiscal 2025, in order to incorporate this approach into concrete management plans, we formulated our first set of impact logic models to clarify the correlations between sustainability and business. For each business group, we took stock of the kind of social issues solved and value created by individual business activities and established indicators and KPIs to measure their progress.
Promoting the deepening of strategies to increase social value, articulating the social value we want to create on a business-by-business basis, and clarifying our commitment to society in this way has been very meaningful. However, strategies are not finished once they are formulated. In addition to reflecting our strategies in annual plans and making improvements by monitoring the KPIs, we will further refine them through dialogue with stakeholders and carry them through into business decision-making, investment decisions, and day-to-day operations. When employees recognize the connection between their own work and society and embrace challenges with pride, it becomes the driving force that further advances our value creation, and I believe this will, in turn, give rise to a corporate culture that views social issues as business opportunities as well as business transformation based on a medium- to long-term perspective.
Transitioning to a new stage of climate change action
In fiscal 2025, Mitsubishi Estate reached a major milestone in the area of climate change action. In addition to hitting our 2030 target for greenhouse gas (GHG) emission reductions five years ahead of schedule, we were also successful in achieving our target for 100% sourcing of procured power from renewable energy. This is the result of our long-standing commitment to developing buildings with advanced energy performance and proactive initiatives such as reducing energy consumption through management and operation. It is also the result of cumulative efforts built up in cooperation with diverse stakeholders including partner companies and employees.
At the time the target was established in 2020, we considered it to be highly ambitious and difficult to achieve. Nevertheless, in the midst of increasingly severe climate change, we worked toward this goal with a high level of aspiration, driven by our belief that Mitsubishi Estate has a responsibility to fulfill. We are quite honestly delighted that our efforts have come to fruition.
On the other hand, this achievement is not the end goal: we are still only part of the way toward reaching our goal of net-zero emissions by 2050. From now on, while implementing even more challenging climate change action, which includes reducing emissions across the building lifecycle and decarbonizing the entire supply chain, we must also continue to deliver improvements in the urban functions for which we have responsibility, such as urban resilience, stable supply of energy, and a sense of comfort and well-being. Going forward, Mitsubishi Estate will continue to lead the industry in driving the transition to a decarbonized society by providing social infrastructure for the next generation.
To be a corporate group that cares for people and is chosen by people
In working toward the realization of a sustainable society, alongside environmental initiatives, respect for human rights and human capital initiatives are also essential. So far, Mitsubishi Estate has repeatedly conducted human rights due diligence as well as onsite interviews with foreign workers at construction and cleaning companies, among other initiatives.
Initiatives related to human rights and the supply chain cannot be completed by one company working alone. It is important to engage in repeated dialogue with suppliers and partner companies, learn together, and make cumulative improvements. Through our encouragement, we want to prompt changes in the awareness and actions of our suppliers, and create a virtuous cycle that leads to the realization of a sustainable supply chain.
We also place importance on the promotion of diversity, equity, and inclusion as an initiative that is related to the intrinsic essence of the company. Being an organization that empowers diverse human resources to demonstrate their capabilities is an essential part of value creation at Mitsubishi Estate. Bringing together human resources with diverse values and backgrounds and utilizing everyone’s strengths increases the quality of decision-making and enhances the flexibility of our organization and ability to adapt to change.
The percentage of women in management positions, which is one of our KPIs for gender equality and women’s empowerment, has been gradually increasing as we have continued to foster the corporate culture for creating a positive working environment for everyone and stepping up recruitment of women, including those with potential for management positions.
“Care for people, empathize with people, create an environment that enables people to exercise their skills” is the approach that forms the foundation for Mitsubishi Estate to continue providing value to society through urban development. I believe that continuing to be a company that is chosen by people will ultimately lead to urban development that is chosen by society.
Embracing the challenge of future urban development as the Ecosystem Engineers
Our stated vision to “Be the Ecosystem Engineers” consists of connecting diverse people, companies, local governments, and communities to create venues and mechanisms that generate new value through co-creation. Leveraging the knowledge we have cultivated in the field of urban development, particularly in Marunouchi, and the networks we have acquired though our business in Japan and overseas, we will embrace the challenge of projects that realize both solutions for social issues and new value creation. Even as the business environment becomes increasingly challenging, Mitsubishi Estate still has many possibilities, and our options for growth are expanding, including renovations and conversions, non-asset and fee business, and the digital technology field. I believe that social issues serve as the entry point to value creation. We will continue to refine Mitsubishi Estate’s unique model of urban development leveraging the human resources, know-how, and brand reputation we have built up so far.
Creating urban areas that can be proudly passed down to the next generation
However much technology evolves, I believe that people will continue to be beings who meet, learn, work, and live alongside other people. Face to face connections will have unchanging value. The urban areas that we create form the social infrastructure that supports these activities. Places to live, places to work, places to learn, and places to relax: each of these places will support people’s lives and shape the future of society. This is precisely why we must continually keep asking ourselves the question of what we are leaving for the next generation. Strategies to increase social value, the challenge of decarbonization, and respect for human rights are ultimately all initiatives aimed at passing on a better society to the next generation.
We will continue to embrace the challenges while refining our ability to care about people, care about the city, and care about the future, and we will further deepen our practice of management with a focus on both social and shareholder value. In order to contribute to “creating a truly meaningful society through urban development,” as stated in the Mitsubishi Estate Group’s basic mission, we will continue to move forward on our journey of urban development that we can proudly pass down to future generations.
