Keihanshin Building : Notice Concerning the Setting of Initiatives and KPIs Linked to Materiality

・Introduction of renewable energy

	June 21, 2022
To whom it may concern,
Company name:	Keihanshin Building Co., Ltd.
Representative:	Tsuneo Wakabayashi, President
Code No.:	8818 TSE Prime
Contact:	Junichi Tada,
	Managing Executive Officer
	responsible for Administration
	(TEL: [phone])

Notice Concerning the Setting of Initiatives and KPIs Linked to Materiality

Keihanshin Building Co., Ltd. (the "Company") hereby announces that it has identified specific initiatives and KPIs to address materiality in an effort to continuously enhance its corporate value and realize a sustainable society.

1. Initiatives and KPIs Linked to Materiality

The Company has identified issues to be addressed with high priority as materiality from among those of high importance for continuous growth and has set initiatives and KPIs linked to such materiality.

In addition, the Company will, in light of a changing external environment, regularly check and review the initiatives and KPIs linked to materiality and promote effective initiatives.

	ESG		Key Issues			Initiatives			KPIs
		(Materiality)
									・Climate change monitoring by the
									Sustainability Committee: At least
						・Conduct assessment and		once a year
						monitoring of the impact of		・GHG emissions: 46% reduction of
						climate change on business		Scope 1 and 2 portions by 2030
						・Reduce GHG emissions, water		Of the above, 10% reduction of
			Strengthening of		usage, and the volume of waste		GHG emissions through reducing
				・Promote the acquisition of green		the use of energy
			resilience to		building certifications	・Water usage: No quantitative
			climate change		・Promote compliance with ZEB		targets*
						(Net Zero Energy Buildings) in ・Volume of waste: No quantitative
	Environmental				line with the "Roadmap for the		targets*
						realization and spread of ZEB"	・Promoting the acquisition of green
						・Promote energy conservation in		building certifications by 2030
						buildings		(Acquire certifications for all
									newly constructed properties, 50%
									or more of total floor area)

Sustainable use of resources by

measures to ・Use renewable energy reduce the burden ・Prolong the lives of buildings on the

environment

*The Company is currently preparing basic data for the volume of waste and water usage and accordingly, has yet to set quantitative targets. The Company plans to set and disclose quantitative targets as soon as they are ready.

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	ESG		Key Issues		Initiatives		KPIs
		(Materiality)
					・Maintain building quality	・Maintaining the track record of
			Provision of safe,			100% progress in the preventive
				through preventive maintenance		maintenance plan
			secure, and		・Strengthen BCP and BCM		・Periodic reviews of the manual of
			comfortable space	・Improve the health and comfort		BCP measures
					of office buildings	・Customer satisfaction survey: At
							least once a year
			Promotion of the
			business keeping		・Consider new business
			abreast of the		・Distribute regional portfolio		―
			changing		・Strengthen the leasing of
			environment and		datacenter buildings
			times
			Conducting
			constructive
			dialogue with		Promote fair, timely, and		Holding briefings: At least four
			investors and
				appropriate disclosure and
			shareholders in line			times a year
			with sustainable		constructive dialogue
			management
					・Collaborate with partner
			Collaboration with		companies on environmental		・Regular meetings with business
	Social			and social issues (including
			partner companies		seminars)		partners: At least four times a year
			conscious of ESG		・Promote sustainable		・Conducting surveys on human
			issues		procurement (Promote respect		rights
					for human rights and health and
					safety at partner companies)
					・Conduct activities to contribute
			Co-existence and		to local communities		・Conducting social contribution
				・Improve relationships with local		activities: At least 10 times a year
			co-prosperity with
				communities (Ensure		・Participation in meetings with
			local communities
				opportunities for the exchange		local communities: 90% or more
					of information)
			Respect for human	・Respond to diverse human		・Conducting workshops on human
			rights, and		resources		rights: Once a year
		diversity and		・50% men-women ratio among new
		・Accept outside human resources
		inclusion				recruits (Five-year average)
					・Improve business efficiency and	・Paid leave acquisition rate: 70% or
					productivity (Promote DX)		higher
						・Disclosure of costs associated
			Improvement of		・Promote human resources
					with human resources
			human capital		development
					development*
				・Work to improve the health of
				・Maintaining 100% medical
					employees
						examination uptake rates

*Figures will be disclosed as soon as they are ready.

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	ESG		Key Issues		Initiatives		KPIs
		(Materiality)
						・Maintaining a credit rating of A-
			Financial strategy	・Maintain a solid financial base		or higher
			to adapt to a		(Take advantage of our		・Capital adequacy ratio of 30% or
			changing business		creditworthiness to realize		higher
			environment		low-cost financing)	・Net interest-bearing debt/EBITDA
							ratio of 10 times or lower
					・Periodic reviews of the		・Review of the Corporate
					Corporate Governance
						Governance Guidelines: Once a
			Strengthening of		Guidelines
					year
				・Conduct BCP drills
			organizational			・BCP drill: Once a year
				・Formulation of measures suited
			resilience		to each risk and progress		・Holding of the Risk Management
						Committee: At least four times a
					management by the Risk
						year
					Management Committee
					・Involvement of a third party in
					the evaluation of the		・Maintaining the ratio of Outside
					effectiveness of the Board of
					Directors		Directors on the Board of
	Governance				・Ensure the diversity of the		Directors so that they constitute a
		Improvement of the		Board of Directors		majority of the board
			・Provide training, etc. to		・Appointment of at least one
			effectiveness of the		Directors		female Director
			Board of Directors	・Maintain a majority of Outside		・Maintaining the ratio of Outside
					Directors on the Nomination		Directors on the Nomination and
					and Remuneration Committee		Remuneration Committee so that
				・Secure adequate deliberation		they constitute a majority of the
					time (Provide explanations in		committee
					advance and review the criteria
					for deliberations)
					・Provide compliance education
			Implementation of		and training to employees at all		・Conducting compliance training:
				levels
			compliance that	・Assess the implementation		Once a year
			supports		status of compliance measures		・Holding of the Compliance
			sustainable		by the Compliance Committee		Committee: At least four times a
			management	・Operate the In-House Reporting		year
					System with outside attorneys
					as contact points

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