Key Performance Indicators (KPIs) /Targets and Results

We aim to increase our corporate value and solve social issues simultaneously. Therefore, with respect to key performance indicators (KPIs) / targets, we are addressing to achieve both financial and non-financial aspects with the same amount of importance. Non-financial information KPIs / targets and results, classified by ESG, are shown below.

Figures marked with “” have been assured by an independent assurance provider. For FY2020 results, we received assurance from an independent assurance provider concerning the following eight items: total energy consumption, CO2 emissions (aggregate of Scope 1 and Scope 2) and CO2 emissions intensity, number of greening projects, water consumption, waste disposal, employment ratio of persons with disabilities, usage rate of paid leave, and percentage of employees who received medical checkups. We will continue to disclose information on the progress of our sustainability initiatives to the stakeholders while strive to improve disclosure quality using PDCA cycle.

Results for KPIs are shown from the year they were set as KPIs and indicated as a “–(dash)” for earlier years.

Key performance indicators / KPIs

  • *1Until Integrated Report 2020, the boundary was: “office buildings with a total floor area of 3,000m2 or above (excluding buildings where bank branch is the sole tenant, as well as sectional and shared ownership properties and real estate for sale).” From this year, we expanded the boundary to : “buildings in which the Company's ownership ratio of the total floor area is 50% or more (excluding properties for residential use and real estate for sale).” This includes properties for which we do not have control of energy management. The values for 2019 and years preceding were recalculated as reference values based on the new boundary. The target data is energy-related CO2 emissions. The unit calorific values and the CO2 emission factors are based on values in the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures. CO2 emissions intensity and energy consumption intensity are calculated by dividing by the sum of the total floor area of the properties in the boundary. CO2 emissions and energy consumption of sectional and shared ownership properties are accounted according to Hulic’s share of ownership of the total floor area.
  • *2In FY2020, we calculated total waste disposal at certain properties in the boundary by using weight conversion factors based on actual measurements. As a result, we were able to improve the precision of the weight of the total waste disposal by 169 metric tons compared with the weight calculated by using the conventional weight conversion factors.
  • *3Hulic’s earthquake-resistance standards are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of an earthquake with a seismic intensity of 7.

Environment (E)

Initiatives in the Medium- and Long-term Management Plan (2020-2029), by ESG:
Promote carbon-free society initiatives through building operations

    Materiality identified from social issues:
  • ● Take actions for climate change
  • ● Promote efficient use of resources
  • ● Promote the ecosystem protection and restoration
  • ● Enhance environmental management system

KPIs/Targets and Coverage

Hulic’s Materiality Initiatives KPIs / Short-term Targets, Medium- to Long-Term Targets (If no fiscal year is given for a target, the target remains effective every year) Coverage
Take actions for climate change Take actions for global warming across the entire value chain of Hulic's properties CO2 emission reduction target*1: Reduce CO2 emissions (The base year: 2013) 40% by 2025, 45% by 2030, 100% by 2050 156 major properties*2
Use renewable energy and develop new technologies RE100 achievement rate*3: 4% in 2021, 30% in 2022, 35% in 2023, 70% in 2024, 100% in 2025 Electricity used in Hulic Group business activities
Number of capital investments for renewable energy facilities: 3 or more each year All completed properties each year
Promote efficient use of resources Reduce waste at Hulic Group Waste disposal: No numerical target (follow-up item)*4 6 buildings occupied by the head offices of Hulic and its Group companies*5
Reduce waste in property development Percentage of technical measures (such as longer life design, etc.)*6 applied to reduce construction waste: 100% each year All completed fixed assets each year
Reduce water consumption at Hulic’s properties Water consumption (thousand ㎥): No numerical target (follow-up item)*4 55 major properties*7
Promote the ecosystem protection and restoration Promote greening Number of greening projects*8: 1 or more each year All completed properties each year
Enhance environmental management system Implement environmentally friendly management Number of times the Sustainability Committee engaged in climate change monitoring: 1 or more each year Hulic Co., Ltd.
Number of Environmental Advisory Council meetings held: 1 or more each year Hulic Co., Ltd.

Results and Assesments

KPIs / Short-term Targets, Medium- to Long-Term Targets
(If no fiscal year is given for a target, the target remains effective every year)
Results Assessment (◎:achieved, ○:progressed, △:not progressed, ―:not subject to assessment)
FY2016 FY2017 FY2018 FY2019 FY2020
CO2 emission(kg-CO2/㎡) reduction target*1: Reduce CO2 emissions (The base year: 2013,The base emissions: 96.8kg-CO2/㎡) 40% by 2025, 45% by 2030, 100% by 2050 - - - - 70.6/27%
RE100 achievement rate*3: 4% in 2021, 30% in 2022, 35% in 2023, 70% in 2024, 100% in 2025 - - - - 0.5%
Number of capital investments for renewable energy facilities: 3 or more each year 3 4 6 4 3
(8 properties in boundary)
Waste disposal (metric ton): No numerical target (follow-up item)*4 524 611 1,166 904 502 -
Percentage of technical measures (such as longer life design, etc.)*6 applied to reduce construction waste: 100% each year - - - - 100%
(8 properties in boundary)
Water consumption (thousand ㎥): No numerical target (follow-up item)*4 401 436 420 437 346 -
Number of greening projects*8: 1 or more each year 1 5 9 3 5
(8 properties in boundary)
Number of times the Sustainability Committee engaged in climate change monitoring: 1 or more each year - - - - 1
Number of Environmental Advisory Council meetings held: 1 or more each year - - - 1 1
  • We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.
  • *1Based on intensity (level) of CO2 emissions.
  • *2The boundary of properties is the buildings in which the Company's ownership ratio of the total floor area is 50% or more (excluding properties for residential use and real estate for sale).
    This includes properties for which we do not have control of energy management. The number of properties in the boundary were: 2016; 129, 2017; 149, 2018; 161, 2019; 164 and 2020; 156.
  • *3The RE100 achievement rate is calculated by dividing the amount of power generated by Hulic-owned non-FIT solar photovoltaic equipment during the target year by the total amount of electricity used at the Hulic head office building and on the floors occupied by Group companies in one year. (an estimate of final target year)
  • *4To be comprehensive when making calculations for waste disposal and water consumption, we are preparing basic data to change the boundaries for aggregation of this data. As 2020 is the transition period for this change, we have not set any quantitative targets. In FY2020, we calculated total waste disposal at certain properties in the boundary by using weight conversion factors based on actual measurements. As a result, we were able to improve the precision of the weight of the total waste disposal by 169 metric tons compared with the weight calculated by using the conventional weight conversion factors.
  • *5The boundary is Hulic’s head office building and buildings where the head offices of Group companies are located. The number of properties in the boundary were: 2016; 7, 2017; 8, 2018; 9, 2019; 7 and 2020; 6.
  • *6The percentage of properties completed in the given year that used technologies and measures that contributed to a reduction in waste as well as raw materials and other resources based on the Hulic Guidelines for Longer Life.
  • *7The boundary is properties with a total floor area of 3,000 m2 or more, excluding buildings where bank branch is the sole tenant, as well as sectional and shared ownership properties and real estate for sale. The number of properties in the boundary were: 2016; 51, 2017; 55, 2018; 58, 2019; 59 and 2020; 55.
  • *8The number of completed properties in each year among those imposed with greening obligation (excludes real estate for sale).

Social (S)

Initiatives in the Medium- and Long-term Management Plan (2020-2029), by ESG:
Promote business operations with particular emphasis on improving earthquake resistance to build a more resilient society

    Materiality identified from social issues :
  • ● Deliver safe and secure lifestyles
  • ● Deliver healthy and comfortable lifestyles
  • ● Coexistence with business partners / local communities
  • ● Respond to aging society
  • ● Respond to increasing number of tourists
  • ● Strike a work-life balance and advancement of talent development
  • ● Promote diversity & inclusion and respect for human rights
  • ● Practice sustainable agriculture

KPIs/Targets and Coverage

Hulic’s Materiality Initiatives KPIs / Short-term Targets, Medium- to Long-Term Targets (If no fiscal year is given for a target, the target remains effective every year) Coverage
Deliver safe and secure lifestyles Enhance earthquake countermeasures in Hulic’s properties Percentage of properties meeting Hulic's earthquake-resistance standards*9: 100% each year All completed properties each year
Deliver healthy and comfortable lifestyles Advance health and productivity management Percentage of employees who received medical checkup*10: 100% each year Hulic Co., Ltd.
Coexistence with business partners / local communities Improve customer satisfaction Number of customer satisfaction surveys: 1 or more each year Hulic Group
Respond to aging society Promote senior citizen-related business Nursing homes Number of units: 5,000 in near future Hulic Group (including properties sold/trusted to REIT)
Respond to increasing number of tourists Promote tourism-related business Accommodation facilities Number of rooms: 10,000 in near future
Strike a work-life balance and advance talent development Enhance measures to support nurturing the next generation Usage rate of childcare leaves / Number of people: 100% of eligible female employees /1 male employee or more each year Hulic Co., Ltd.
Ratio of employees returning to work after childcare leaves: 100% per year Hulic Co., Ltd.
Encourage the planned use of paid leave Usage rate of paid leaves*11: 70% or higher each year Hulic Co., Ltd.
Advance talent development Number of additionally obtained qualifications by employees*12: No numerical target (follow-up item) Hulic Co., Ltd.
Promote diversity and inclusion and respect for human rights Further increase programs for advancing diversity and inclusion Ratio of female managers: 2020; 20%, 2024; 25%, 2029; 30% Hulic Co., Ltd.
Number of seminars provided by the Diversity Promotion Project Team: once each year Hulic Co., Ltd.
Increase employment of persons with disabilities Employment ratio of persons with disabilities: Maintaining the statutory employment ratio of 2.2% or higher (The statutory employment ratio was 2.0% or higher in and before 2017, and 2.2% or higher between 2018 to 2020.) Hulic Group*13
Practice sustainable agriculture Enhance agribusiness Production area (ha): 15ha by 2025 Hulic Group

Results and Assesments

KPIs / Short-term Targets, Medium- to Long-Term Targets
(If no fiscal year is given for a target, the target remains effective every year)
Results Assessment (◎:achieved, ○:progressed, △:not progressed, ―:not subject to assessment)
FY2016 FY2017 FY2018 FY2019 FY2020
Percentage of properties meeting Hulic's earthquake-resistance standards*9: 100% each year 100% (2 properties in boundary) 100% (6 properties in boundary) 100% (11 properties in boundary) 100% (4 properties in boundary) 100% (8 properties in boundary)
Percentage of employees who received medical checkup*10: 100% each year 100% 100% 100% 100% 100%
Number of customer satisfaction surveys: 1 or more each year 1 1 1 1 1
Nursing homes Number of units: 5,000 in near future - - - 3,400 3,600
Accommodation facilities Number of rooms: 10,000 in near future - - - 8,200 8,000
Usage rate of childcare leaves / Number of people: 100% of eligible female employees /1 male employee or more each year 100%/
6 people
100%/
0 people
100%/
1 people
100%/
7 people
100%/
3 people
Ratio of employees returning to work after childcare leaves: 100% per year 100% 100% 100% 100% 100%
Usage rate of paid leaves*11: 70% or higher each year 71.6% 78.3% 77.0% 78.5% 75.5%
Number of additionally obtained qualifications by employees*12: No numerical target (follow-up item) 10 people 31 people 21 people 23 people 29 people -
Ratio of female managers: 2020; 20%, 2024; 25%, 2029; 30% 12.3% 15.6% 18.5% 20.2% 23.9%
Number of seminars provided by the Diversity Promotion Project Team: once each year 1 1 1 1 1*14
Employment ratio of persons with disabilities: Maintaining the statutory employment ratio of 2.2% or higher (The statutory employment ratio was 2.0% or higher in and before 2017, and 2.2% or higher between 2018 to 2020.) 2.21% 2.11% 2.41% 2.42% 2.34%
Production area (ha): 15ha by 2025 - - - 11 10
  • *9Earthquake-resistance standards as specified by Hulic are where building performance can safeguard human life and enable continued use of the building with post-earthquake repair in the event of an earthquake with a seismic intensity of 7.
  • *10The executive officers, employees (including seconded staff) and full-time contract staff who were with the Company at the time of application of medical checkup and as of December 31, 2020 were counted (excluding personnel who were on leave).
  • *11The usage rate of paid leave is calculated by dividing the number of days of paid leave used in the year by the number of days of paid leave granted in the year. The number of days carried over in the year are excluded.
  • *12The counted qualifications were those which the Company recommends employees to obtain.
  • *13Limited to Hulic Co., Ltd. and subsidiary companies that have been certified as special subsidiary companies under the Act on Employment Promotion etc. of Persons with Disabilities. The employment ratio for persons with disabilities is as of June 1st of each year.
  • *14A video training session was held in lieu of in-person seminar session to prevent the spread of COVID-19.

Corporate Governance (G)

Initiatives in the Medium- and Long-term Management Plan (2020-2029), by ESG:
Implement balanced management with attention to group governance

    Materiality identified from social issues:
  • ● Further strengthen corporate governance and compliance
  • ● Respond to changes in financial and real estate markets
  • ● Enhance business continuity plans (BCPs)

KPIs/Targets and Coverage

Hulic’s Materiality Initiatives KPIs / Short-term Targets, Medium- to Long-Term Targets (If no fiscal year is given for a target, the target remains effective every year) Coverage
Further strengthen corporate governance and compliance Corporate governance Participation rate in Board of Directors meetings: 80% or higher each year Hulic Co., Ltd.
Number of effectiveness assessment of the Board of Directors: once each year Hulic Co., Ltd.
Compliance Number of compliance training conducted: Five times each year (4 times for employees and once for officers) Hulic Co., Ltd.
Respond to changes in financial and real estate markets Risk management Number of Risk Management Committee and Fund and ALM Committee meetings: 4 times each year, respectively Hulic Co., Ltd.
Enhance business continuity plans (BCPs) Risk management Number of BCP drills and inspections of stockpiled food and goods: 1 or more each year Hulic Group

Results and Assesments

KPIs / Short-term Targets, Medium- to Long-Term Targets
(If no fiscal year is given for a target, the target remains effective every year)
Results Assessment (◎:achieved, ○:progressed, △:not progressed, ―:not subject to assessment)
FY2016 FY2017 FY2018 FY2019 FY2020
Participation rate in Board of Directors meetings: 80% or higher each year 96% 97% 98% 99% 99%
Number of effectiveness assessment of the Board of Directors: once each year - - - - 1
Number of compliance training conducted: Five times each year (4 times for employees and once for officers) 5 (4 employees, 1 officer) 5 (4 employees, 1 officer) 5 (4 employees, 1 officer) 5 (4 employees, 1 officer) 5 (4 employees, 1 officer)
Number of Risk Management Committee and Fund and ALM Committee meetings: 4 times each year, respectively - - - 4/13 4/22
Number of BCP drills and inspections of stockpiled food and goods: 1 or more each year 1 1 1 1 1
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