SUSTAINABILITY POLICY

Sustainability Policy

Policy

We are pursuing a sustainable business model as a company that supports social infrastructure.
Our concept slogan, “Enduring quality without compromise,” also serves as our sustainability philosophy. We aim to sustainably enhance our corporate value by pursuing enduring quality without compromise for all stakeholders with consideration for the environment, society, and people.
Sustainability Basic Policy
Furthermore, we have established the NIPPON KANZAI Group Code of Corporate Ethics and Conduct with the aim of becoming a company trusted by society at large. This code is communicated to all employees when they join the company.

NIPPON KANZAI Group Code of Corporate Ethics and Conduct

● We establish trust from society
● We respect clients
● We comply with laws and social norms
● We respect human rights and the environment
● We secure transparency and soundness of management
● We do not interact with antisocial organizations

Initiatives for Materiality

Identification of Materiality

We have identified key issues (materiality) that we must prioritize to achieve sustainable growth and fulfill our social responsibilities.
Each materiality is broadly categorized into three themes: foundation supporting corporate value creation, value-creating capital, and values we aim to create. Through the resolution of each theme, we strive to ensure the longevity and safety of our clients’ valued assets, continuously contributing to the further creation of value.

Annual Securities Report（Japanese only）

Financial results

Definition, Indicators, and Targets of Each Materiality

The definition of each materiality is as follows.
Details regarding indicators, targets, and other information are provided on each individual page.

ESG DATA

Functional classification	Materiality	Definition
Values we aim to create	Maintenance of quality and safety	Through building management, we provide a safe, secure, and comfortable environment for building owners, residents, and facility users. We contribute to the construction of a sustainable social infrastructure and also enhance asset value and profitability by optimizing building life cycle costs.
	Contributions to local development	By accepting orders for the operation of aging public infrastructure and facilities using the PPP method, we contribute to the efficient management of these facilities and the creation of local employment. Additionally, we cooperate in creating new local attractions through the management of buildings where people gather and communicate
	Consideration for local environment	We contribute to a decarbonized society and beyond by assessing the environmental impact of building facilities throughout their life cycle. This includes improving maintainability and extending service life based on customer needs, as well as proposing replacement and reconstruction ideas.
Value-creating capital	Leveraging human capital	As a comprehensive real estate service provider, the NIPPON KANZAI Group aims to be a reliable partner for customers and communities. We provide one-stop quality services backed by the expertise and public certification that the Group has cultivated
	Use of accumulated information as intellectual property	We will utilize the know-how we have accumulated through industry-leading PPP (public-private partnership) projects and integrated management operations to optimize the life cycle costs of our customers’ buildings and add value to improve asset value. We promote digital transformation (DX) to realize high-efficiency building management in response to the era of population decline. Our focus is on the effective use of databases and the introduction of cleaning robots and advanced technologies equipped with AI.
	Creation of partnerships	We will leverage our independent and neutral perspective to create partnerships with business partners that are optimal for our customers. These partnerships are based on an equal relationship, without being bound by a capital relationship. Together with our partner companies, we will contribute to regional revitalization and revitalization projects. Our aim is to work towards the goal of creating new businesses.
Foundation supporting corporate value creation	Absolute respect for compliance	We will strive to maintain and improve the quality of our service to customers through multiple monitoring systems, including inspections and ‘Customer Satisfaction Surveys’. We will also work hard to ensure thorough compliance with relevant laws and regulations, the Information Security Policy, and the Basic Rules for the Protection of Personal Information.
	Reinforcement of labor standards	We are expanding initiatives related to diversity and inclusion, as well as work-life balance, to foster a corporate culture that allows diverse human resources to play an active role and flourish. We aim to realize a work environment where women, the elderly, and foreigners can thrive, with mutual consideration and respect for each other.
	Maintenance of risk management system	The Risk Management Committee identifies, evaluates, and manages risks for the entire Group, while the Sustainability Committee does the same for sustainability-related risks. For significant risks, both committees verify the effectiveness of the countermeasures and report them to the Executive Committee and the Board of Directors.
	Sophistication of corporate governance	We strive to build a sound, highly transparent, and stable management foundation, and we actively disclose information in a timely manner.