Daito Trust Construction Co., Ltd. · TSE:1878

Daito Trust Construction — ESG Presentation (December 2022)

63 slides from Daito Trust Construction's sustainability presentation, Dec 6, 2022

1. Slide 1: Presentation on ESG Activities

   Presentation on ESG Activities December 6, 2022 © 2022 Daito Trust Construction Co., Ltd.

2. Slide 2: Contents

   Contents 1. Initiatives Promoting Sustainability Management 2. Environmental Initiatives 3. Social Initiatives 4. Governance Initiatives Q&A Session © 2022 Daito Trust Construction Co., Ltd.

3. Slide 3: 1. Initiatives Promoting Sustainability Management

   1. Initiatives Promoting Sustainability Management © 2022 Daito Trust Construction Co., Ltd.

4. Slide 4: Daito Group Basic Policy on Sustainability

   Initiatives Promoting Sustainability Management Daito Group Basic Policy on Sustainability As a company that supports affluent lifestyles, the Daito Group regards social changes as opportunities for growth, and we work to develop our business activities and realize a sustainable society with our sta

5. Slide 5: Management Material Issues

   Initiatives Promoting Sustainability Management Daito Group Seven material issues (priorities) Environment Taking action on climate risk through business activities Management Material Issues Society Contributing to a society where no one is left behind Talent/organization Instilling a corporate cul

6. Slide 6: Three Perspectives: Environment, Disaster Prevention, Lifestyle

   Initiatives Promoting Sustainability Management Three Perspectives "Environment", "Disaster Prevention", and "Lifestyle" Environment Disaster Prevention Considering New values the Housing and Living characteristics of the rental housing Daito group “Disaster Prevention” Seven material issues Lifesty

7. Slide 7: Daito Group Disaster Prevention Vision 2030

   Initiatives Promoting Sustainability Management Daito group Disaster Prevention Vision 2030 Disaster prevention philosophy be there for the community if a disaster happens Through the business activities of the Daito Group, which positions rental housing as infrastructure for daily life and engages

8. Slide 8: Daito Group Disaster Prevention Vision 2030

   Initiatives Promoting Sustainability Management Daito group Disaster Prevention Vision 2030 Provide the usual 'normal' at a time of 'what if’ Create a circle of mutual help throughout the Create a next generation that can be relied community in case of "what if" situations upon in case of "what if"

9. Slide 9: Framework for Sustainability Management

   Initiatives Promoting Sustainability Management Framework for Sustainability Management Daito Group, all employees Executive Planning Environment Sustainability Living / A company that can Meeting lifestyles continue to grow Implementation of measures Social Toward becoming a total lifestyle Board o

10. Slide 10: Sustainability Executive Planning Meeting

    Initiatives Promoting Sustainability Management Sustainability Executive Planning Meeting Member of Sustainability Executive Planning Meeting chairman President and Representative Director (CEO) Material issues Environment Management Manager of Technology Development Department Social Manager of Div

11. Slide 11: New Five-Year Plan and Seven Material Issues

    Initiatives Promoting Sustainability Management New Five-Year Plan and Seven Material Issues New Five-Year Plan INPUT From Exclusive Transforming into a Strengthening of Focus on Total Lifestyle Support Our Core Business Rental Housing to Company with a Core (Rental Housing Comprehensive Comprehensi

12. Slide 12: Making sustainability the core of our management

    Initiatives Promoting Sustainability Management Making sustainability the core of our management, we seek to achieve long-term stable management along with sustainability in the leasing business. © 2022 Daito Trust Construction Co., Ltd.

13. Slide 13: 2. Environment Initiatives

    2 Environment Initiatives © 2022 Daito Trust Construction Co., Ltd.

14. Slide 14: 1 Policy and structure

    Table of contents 1 Policy and structure 2 Strategy 3 Goal management and progress 4 Specific initiatives 5 Others © 2022 Daito Trust Construction Co., Ltd.

15. Slide 15: Daito 2050 Environmental Vision

    New Environmental Management Strategy: Daito 2050 Environmental Vision Daito 2050 Environmental Vision As an environmental leader, we will contribute to building a sustainable society through our business activities Strategies and measures Construction Lifestyle Waste Company Nature People Realize c

16. Slide 16: Environmental Management Promotion System

    Environmental Management Promotion System Environmental Management Promotion System Environmental Management Project Committee President and Representative Director Director (in charge of Environmental Management Project) Environmental Management Project Secretariat (Environmental Planning Section,

17. Slide 17: 2 Strategy

    Table of contents 1 Policy and structure 2 Strategy 3 Goal management and progress 4 Specific initiatives 5 Others © 2022 Daito Trust Construction Co., Ltd.

18. Slide 18: Strategy of GHG Reduction Targets

    Strategy of GHG Reduction Targets Greenhouse Gas Reduction Targets Scope1, 2 Scope3 Current Targets 55% reduction 16% reduction by 2030 by 2030 compared to FY2017 Raising New targets Scope1, 2, 3 New Targets 55% reduction by 2030 under consideration Net zero by 2050 compared to FY2017 17 © 2022 Dait

19. Slide 19: Participation in international environmental initiatives

    Participation in international environmental initiatives Greenhouse gas reduction targets SBT 1.5 level certification Terms of reduction approaches Disclosers © 2022 Daito Trust Construction Co., Ltd.

20. Slide 20: 3 Goal management and progress

    Table of contents 1 Policy and structure 2 Strategy 3 Goal management and progress 4 Specific initiatives 5 Others © 2022 Daito Trust Construction Co., Ltd.

21. Slide 21: Progress of SBT, RE100, EP100

    Progress of SBT RE100 EP100 Certification/ Long-Term Results Initiative Membership Targets FY 2019 FY 2020 FY 2021 Reduction rate (compared to FY2017) Scope 1, 2 Recertified in March 2020 55 15 21% 20% (SBT 1.5 C level) by 2030 Greenhouse gas reduction Scope 3 Certified in 16 20 44 47 January 2019 b

22. Slide 22: External evaluation: CDP score

    External evaluation Score of CDP Carbon Disclosure Project Started responding to CDP from 2010 (information disclosure from 2014) *1 Carbon Disclosure Project *2 Supplier Engagement Rating Supplier Engagement Rating © 2022 Daito Trust Construction Co., Ltd.

23. Slide 23: 4 Specific initiatives

    Table of contents 1 Policy and structure 2 Strategy 3 Goal management and progress 4 Specific initiatives 5 Others © 2022 Daito Trust Construction Co., Ltd.

24. Slide 24: Low-carbon housing initiative: Daito Group's ZEH rental housing

    The chart of our low-carbon housing initiative Daito group’s ZEH rental housing 2010 2017 2021 2022 2016 completed the first ZEH Proposing ZEH for Started sales of products rental housing in Japan all buildings based on ZEH In November 2017 completed the By November 2021, Standardize In May 2022, st

25. Slide 25: Promotion of popularization of ZEH

    Promotion of popularization of ZEH The transition of our ZEH contracted properties The end of November 2022, the number of ZEH units under contract totaled 22,240 units. unites 70,000 67,787 60,000 53,408 50,656 50,000 45,780 45,224 40,352 40,525 40,000 27,262 29,542 30,000 22,240 ZEH ratio ZEH rati

26. Slide 26: From zero energy to carbon minus (1): LCCM rental housing

    From zero energy to carbon minus (1) LCCM (Life Cycle Carbon Minus) Rental Housing The LCCM rental housing complex is a form of carbon-free housing in which the overall amount of CO2 emitted across the entire life cycle of the property (production, transportation, construction, inhabitation, renovat

27. Slide 27: From zero energy to carbon minus (2)

    From zero energy to carbon minus (2) Commercialization of standardized LCCM rental housing complexes In October 2022, we have successfully commercialized the first domestic LCCM rental housing complex “NEW RiSE LCCM” and started selling it. Specifications of LCCM rental housing complexes - Environme

28. Slide 28: Promotion of wooden buildings

    Promotion of wooden buildings 2x4 wooden low-rise housing Development and sales of CLT products The main products is the 2x4 construction Technology and product development using method that uses low-carbon material “wood”. new wooden building material “CLT”. CLT mid-rise housing Structural image of

29. Slide 29: First CLT four-story fire-resistant building in Funabashi

    Promotion of wooden buildings The first CLT four-story fire-resistant building was completed in Funabashi City On July 28, 2022, the first standardized and industrialized CLT rental apartment building in Japan, which adopted our unique CLT construction method, was completed in Funabashi City, Chiba

30. Slide 30: Development of disaster-prevention-conscious housing

    Development of disaster-prevention-conscious housing Disaster-prevention-conscious rental housing “ iimo” The “niimo” is the disaster-prevention-conscious rental housing specifically designed to be flood-resistant. The strong construction of reinforced concrete increases the possibility that it will

31. Slide 31: Initiatives to introduce renewable energy

    Initiatives of introduce renewable energy Introduced to Head Office Shinagawa East One Tower From November 2021, we started supplying In addition to the three main companies, major renewable energy derived from 100% domestic group companies have also started introducing woody biomass. renewable ener

32. Slide 32: Results of roof rental solar power generation business

    Results of roof rental solar power generation business Solar power generation 301 GW Equivalent to the annual power consumption of approximately 69,787 households End of November, 2022 *Calculated from the Ministry of the Environment's "Energy Consumption at Home" The national average for electricit

33. Slide 33: Initiative of J-credits

    Initiative of J-credits Energy-saving value created by our buildings into Credits The J-credit system is a mechanism that converts the CO2 reduction effects of our buildings into credits and uses them for decarbonization efforts. CO2 reduction For reducing emissions from sports CO2 competitions, etc

34. Slide 34: 5 Others

    Table of contents 1 Policy and structure 2 Strategy 3 Goal management and progress 4 Specific initiatives 5 Others © 2022 Daito Trust Construction Co., Ltd.

35. Slide 35: Public-private partnership decarbonization consortiums

    Endorses and participates in public-private partnership decarbonization consortiums Expressed our commitment to the GX League The GX League is a place where companies work together with the Ministry of Economy, Trade and Industry to aim for transformation toward carbon neutrality by 2050. We have an

36. Slide 36: Sustainable procurement and reduction of CO2 in the supply chain

    Sustainable procurement and reduction of CO2 emissions in the supply chain Introduce EcoVadis, a supply chain CSR evaluation system In August of this year, we became the first company in the construction industry to introduce EcoVadis, a supply chain CSR evaluation system, for sustainable procuremen

37. Slide 37: Initiative of decarbonize the construction industry

    Initiative of decarbonize the construction industry Request for cooperation from suppliers (1) Disclosure of GHG emissions information (Scope1, 2) Refining our understanding of Scope 3 (2) Obtain for EPD * EPD…Environmental Product Declaration Products that disclose information on the environmental

38. Slide 38: Initiatives for biodiversity (1)

    Initiatives for biodiversity (1) Forest Certification Acquisition Rate Use of certified forest materials For all structural materials, we use timber certified by each certification system organization (FSC, PEFC, etc.)* in order to prevent deforestation through timber procurement. * Including legal

39. Slide 39: Initiatives for biodiversity (2)

    Initiatives for biodiversity (2) 30by30 Alliance for Biodiversity The 30by30 Alliance aims for the effective conservation of at least 30% of land and sea territories as healthy ecosystems by 2030. Our Group announced its entry into the 30by30 Alliance in April 2022. Forest conservation hands-on acti

40. Slide 40: 3. Social Initiatives

    3. Social Initiatives © 2022 Daito Trust Construction Co., Ltd.

41. Slide 41: Leveraging the Power of a National Network to Improve Disaster Preparedness

    Leveraging the Power of a National Network to Improve Disaster Preparedness © 2022 Daito Trust Construction Co., Ltd.

42. Slide 42: Disaster Prevention and Living Research Laboratory Bo-Ku Lab

    Leveraging the Power of a National Network to Improve Disaster Preparedness Disaster Prevention and Living Research Laboratory “Bo-Ku Lab” ✔ Project aims to raise disaster awareness in the rental housing industry. ✔ The Daito Group will develop various disaster prevention projects and Aiming to crea

43. Slide 43: Disaster prevention center (1) Boku-Labo stations

    Leveraging the Power of a National Network to Improve Disaster Preparedness disaster prevention center (1) Boku-Labo stations ✔ "Boku-Labo stations" is where some of Daito branches across Japan are converted into disaster prevention centers. The "Three Preparedness" at Boku-Labo stations ➊ Disaster

44. Slide 44: Disaster prevention center (2) Disaster response units

    Leveraging the Power of a National Network to Improve Disaster Preparedness disaster prevention center (2) Disaster response units and gas appliances ✔ Ensuring Energy from LP Gas in Times of Disaster. In preparation for lifeline outages, we have generators, gas stove pots, and other equipment capab

45. Slide 45: Disaster prevention center (3) Disaster return assistance station

    Leveraging the Power of a National Network to Improve Disaster Preparedness disaster prevention center (3) Disaster return assistance station ✔ Toilet, water, and road traffic information to help you get home on foot. Raise awareness and increase visibility among residents Disaster Return Assistance

46. Slide 46: Workshop Local Disaster Prevention Events

    Leveraging the Power of a National Network to Improve Disaster Preparedness Workshop Local Disaster Prevention Events ✔ We regularly hold events at Boku-Labo stations where we invite local residents to come and learn about disaster prevention in a fun way. Main Events ➊ Disaster prevention lectures

47. Slide 47: Activity Support: Children's crafts course Yumeie

    Leveraging the Power of a National Network to Improve Disaster Preparedness Activity Support Children's crafts course "Yumeie." ✔ This is a program to create your own original "dream house" by exercising the power of "creativity and imagination" and using your own free ideas. *Fieldwork in "Yumeie."

48. Slide 48: Leveraging the Power of a National Network to Improve Disaster Preparedness

    Leveraging the Power of a National Network to Improve Disaster Preparedness The Daito Group is committed to addressing local social issues and pursuing a new way of life in preparation for "what if" situations in the community through efforts to improve disaster preparedness by leveraging the power

49. Slide 49: Promote organizational climate reforms starting from Employee Engagement Surveys

    Promote organizational climate reforms starting from Employee Engagement Surveys © 2022 Daito Trust Construction Co., Ltd.

50. Slide 50: Employee Engagement Survey Results

    Promote organizational climate reforms starting from employee engagement surveys Employee Engagement survey Results Time of Number of Engagement Engagement Implementation Respondents Score Rating November 2021 7,669 BB 53.8 May 2022 7,751 BBB 57.5 other companies average: B) other companies average:

51. Slide 51: Improvement activities under company and workplace initiatives

    Promote organizational climate reforms starting from employee engagement surveys Improvement activities are carried out under both company and workplace initiatives ✔ Company-led improvement activities Various measures are being promoted to address impediments to engagement. Main measures  Stimulat

52. Slide 52: Promote organizational climate reforms starting from employee engagement surveys

    Promote organizational climate reforms starting from employee engagement surveys © 2022 Daito Trust Construction Co., Ltd.

53. Slide 53: LOVE COLORS

    LOVE COLORS Employee individuality is the Company’s strength © 2022 Daito Trust Construction Co., Ltd.

54. Slide 54: Basic Policy on Diversity and Inclusion

    Basic Policy on Diversity and Inclusion The Daito Group aims to be a company where each individual can realize every man in his humour own way of life through work and where everyone can make the most of his or her individuality. To be a company that can be entrusted with dreams and futures, and gen

55. Slide 55: Basic Policy on Diversity and Inclusion: System Enhancement

    Basic Policy on Diversity and Inclusion System Enhancement Board of Directors Executive Management Meeting (Chair: President and Representative Director [CEO]) Construction Corporate Management Subsidiary Business Headquarters Business Headquarters Headquarters Managing Director in charge of Corpora

56. Slide 56: Female advancement – Introduction of female employee development program

    Female advancement – Introduction of female employee development program – Change in mindset from appointment to development of talented female employees Seeking out candidates and supporting them, instead of waiting for them to emerge Quota System The following are not targets but requirements in o

57. Slide 57: Results of Post-Training Questionnaire

    Results of Post-Training Questionnaire ✔ Career planning seminar ✔ Leader Seminars - For those who rise to leaders - - For women leaders - Percentage of female Mostly Satisfied management personnel April 4 Satisfaction Satisfaction Program introduction 93 93 6.0 6 5.5 Mostly Satisfied 5.1 4 4.5 4.7

58. Slide 58: 4. Governance Initiatives

    4. Governance Initiatives © 2022 Daito Trust Construction Co., Ltd.

59. Slide 59: Basic Policy on Corporate Governance

    Corporate Governance Basic Policy on Corporate Governance To maximize the corporate value of the Daito Group and for our shareholders and all other stakeholders, our basic policy on corporate governance is making our management more efficient and transparent. 8 © 2022 Daito Trust Construction Co., L

60. Slide 60: Decision-Making and Oversight of Management

    Management Structure General Shareholders' Meeting Independent Board of Directors (standing directors, outside directors, and outside audit and supervisory board members) Auditors Decision-Making and Oversight of Management Governance Committee (representative directors, outside directors, and outsi

61. Slide 61: Establishment of Nominating and Remuneration Committee

    Governance System Establishment of Nominating and Remuneration Committee (Dec. 2021-) Previous Governance Committee 1. Collect and report on the results of mutual assessments of directors 2. Deliberate and submit findings regarding appointments Functions 3. Deliberate and submit findings regarding c

62. Slide 62: Comments from Outside Directors

    Governance System Comments from Outside Directors Outside Director Amid the dramatic changes in the business environment surrounding our Chairman of the Governance Committee company, outside directors play a central role in determining the nomination and remuneration of officers in order to ensure p

63. Slide 63: Response to the inappropriate accounting

    Response to the inappropriate accounting Major items and impacts (as announced in June 23, 2022) Items Impacts Total Overstatement of accounts payable ¥570mn and accrued expenses at consolidated subsidiaries Understatement of profit Inappropriate payment of advertising expenses, etc. ¥780mn ¥210mn a

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