Action on Human Rights and Supply Chain

Conducting Corporate Human Rights Due Diligence to Engage in Business Activities with Respect
for Human Rights

Respect for human rights is an essential element in the realization of a sustainable world. In order to fulfill its duty to respect the basic human rights of all stakeholders, the Group formulated the Mitsubishi Estate Group Human Rights Policy in April 2018 and conducted corporate human rights due diligence. Taking the results into consideration, the Group decided to implement the following initiatives to provide solutions for social issues.

Ensuring Traceability in Newly-Built Condominiums for Sale

In its newly-built condominiums for sale, Mitsubishi Estate Residence is using concrete formwork panels^*1 based on sustainable sourcing standards for timber and to ensure traceability.
To ensure traceability, all companies in each stage of distribution, including logging and supply, must be certified. Mitsubishi Estate Residence has been working to ensure traceability by using timber that has obtained FSC forest management certification, which confirms that forests are properly managed, and a FSC chain of custody (CoC) certification, which verifies that timber produced in FSC-certified forests is managed and processed appropriately in the subsequent stages of distribution. However, there were still many companies ranging from formwork processors to construction companies that have not obtained CoC certification. This was an issue because certification doesn’t cover the entire distribution chain, which meant that traceability was not completely ensured.
To address this issue, Mitsubishi Estate Residence has started an initiative to ensure traceability throughout the supply chain by building a scheme to obtain third-party certification from Japan Gas Appliances Inspection Association, a third-party certification body, based on the use of materials certified under the Programme for the Endorsement of Forest Certification (PEFC), a global alliance of national forest certification systems that mutually endorses their certification systems. The initiative commenced with The Parkhouse Komazawa Residence, which was completed in December 2021, and the traceability of the timber in concrete formwork panels in all buildings will be ensured in fiscal 2030. In order to strengthen the initiative, Mitsubishi Estate Residence will also aim to obtain international certification in addition to the third-party certification method. At The Parkhouse Takanawa Matsugaoka, which went on sale in July 2021, the company obtained FSC^*2 project certification for the supply chain component. This is a worldwide first-case^*3 of obtaining project certification based on FSC standards for concrete formwork panels, and has been achieved through cooperation with Kiuchi Construction Co., Ltd.
As a leading company in the newly-built condominiums for sale industry, Mitsubishi Estate Residence is working to make this an industry-wide initiative by communicating the issues and solutions both internally and externally.

• The plywood used as the formwork for pouring of ready-mixed concrete when constructing buildings.
• Forest Stewardship Council^®: An independent, non-profit organization that promotes responsible management of forests worldwide and operates an international forest certification system.
• According to research by Mitsubishi Estate Residence

See the following press releases for more details.

Enhancing Traceability of Concrete Formwork Panels Used in Newly Built Condominiums for Sale – Obtaining a World-First FSC^® Project Certification for Concrete Formwork Panel (Japanese only) (PDF 1.3MB)

Using Concrete Formwork Panels Based on Sustainable Sourcing Standards and Ensuring Traceability in Newly Built Condominiums for Sale (Japanese only) (PDF 869KB)

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Promoting Efforts in Supply Chain Management

In order to help realize a sustainable and truly meaningful society through its business activities, the Mitsubishi Estate Group believes it is important to promote efforts across the supply chain. As such, the Group established the Mitsubishi Estate Group Supplier Code of Conduct based on the Code of Conduct and Guidelines for Conduct. The Supplier Code of Conduct has been published on the corporate website, and disseminated to the Group's major business partners. It sets out obligations that suppliers are required or expected to fulfil, which include compliance with laws and regulations, respect for human rights, respect for local communities and indigenous peoples’ rights, occupational health and safety, practice of corporate ethics, protecting the environment and reducing environmental impact, guaranteeing information security and establishing a risk management system.

The Group asks its suppliers to also strive to disseminate this Code of Conduct to their business partners so that they understand and cooperate with its spirit and content, and thereby continue to promote efforts to fulfill its social responsibility across the supply chain with the aim of realizing a sustainable society.

Assessment of Human Rights and Environmental Risks Associated with Construction Materials

In FY2022, Mitsubishi Estate assessed human rights and environmental risks associated with each of the construction materials used at its construction sites. Identifying the materials used in each of more than 20 varieties of construction materials with the highest weight ratios used at our construction sites, we checked the principal places of production and importing countries of 18 staple materials and determined related human rights and environmental risks. We plan to examine countermeasures regarding construction Material risks to focus on in the future.

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Assessment of Human Rights Risks Associated with Technology

The Company has set out the Mitsubishi Estate Digital Vision, which aims to promote new urban development that allows people to experience convenient living environments through digital transformation (DX). In FY2022, we identified and assessed the actual and potential impact on human rights of services and products related to technology for realizing our vision based on a human rights assessment process to promote business activities with consideration for human rights. We will explore appropriate countermeasures for preventing and mitigating human-rights risks.

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