SUSTAINABILITY

Together with aat+makoto yokomizo architects,Inc., HAN ARCHITECTURE DESIGN, and Ikegami Inc., we launched the “100-Tsubo Forest Project” to promote urban greening. This initiative aims to exceed local government greening standards at our development sites and secure a total green area of more than 100 tsubo annually.

By incorporating three-dimensional greening designs—combining ground-level, wall, and rooftop greenery—we contribute to improving the urban environment and creating sustainable cities.

In proportion to the green area exceeding these standards, FaithNetwork and participating partner companies make donations to Setagaya Ward.

We consider contributing to the resolution of social issues through investment real estate development an important mission. Ahead of the government's goal of achieving ZEH standards for all new buildings by 2030, all multi-family residential buildings currently under development are being planned as ZEH-M (Net Zero Energy House for Multi-Family Residential Buildings).

This initiative enhances long-term asset value, provides both comfort and economic benefits for residents, and contributes to a decarbonized society.

In fiscal year 2025, 9 of the 16 completed multi-family residential buildings were supplied as ZEH-M properties. Solar power generation systems were also installed in two buildings to expand the use of renewable energy, reduce environmental impact, and improve energy self-sufficiency.

We will continue to promote next-generation real estate development for sustainable urban communities and living environments, with environmental performance at the core of our competitiveness.

Results for Properties Completed in Fiscal Year 2025

	ZEH-M Implementation Results	Percentage of ZEH-Ml Units	Percentage of Units Meeting the Target ZEH-M Standard
Low-Rise	2 Buildings	68%	0%
Mid-Rise	6 Buildings	54%	7%
High-Rise	1 Buildings	53%	53%

Our Targets for the Adoption of ZEH-M Meeting the Target Standard
[Low-Rise and Mid-Rise Buildings]
2030 Adoption Target for ZEH-M Meeting the Target Standard: 20%
[High-Rise Buildings]
2030 Adoption Target for ZEH-M Meeting the Target Standard: 100%

* "ZEH-M buildings meeting the target standard" refers to the categories defined in the government's ZEH Roadmap. Specifically, it includes "ZEH-M" and "Nearly ZEH-M" for multi-family residential buildings of three stories or fewer, "ZEH-M Ready" for multi-family residential buildings of four to five stories, and "ZEH-M Oriented" for multi-family residential buildings of six stories or more.

We regularly hold a flea market "Orange Bazaar" to reuse surplus materials generated during property development and to interact with local residents and contribute to the local community. We are committed to the effective use of resources by offering half-used materials and parts, etc. generated during construction for free or at a discount.

In addition, the events are held at planned construction sites of our own development properties. By organizing workshops, exhibitions, and other activities alongside the flea market, we foster interaction and engagement with local communities.

We develop and operate the GrandStory Salon business, a subscription-based shared salon. Registered users can use several salons in the 3 wards of Jonan that we operate 24 hours a day, any time they like.

Since the location and hours can be set freely, the service is used by a wide range of people, including freelance beauty professionals, beauticians seeking to start their own businesses, and working-mother beauticians and manicurists who have retired after giving birth, helping them realize flexible working styles and lifestyles.

In support of the Tamagawa Walk, an annual event organized by the Setagaya Sports Foundation to promote walking, health, and physical fitness, we served as the title sponsor of the event held in May 2025.

We will continue to actively support social initiatives centered in the Jonan area (Setagaya, Meguro, and Shibuya wards) and contribute to regional revitalization.

This project is designed to contribute to the further revitalization of Setagaya Ward and its surrounding areas, where we originated and where we have been involved in numerous properties.

Through art, music, sports, and various other cultural activities and social contribution activities, we will help revitalize the area and support young people in Setagaya Ward to realize their dreams.

• "MACHIKARA ART: Idea Contest for Temporary Enclosure Design" as an initiative in the art field
• "MACHIKARA MUSIC: Setagaya Dream Music Contest" as an initiative in the music field
• Sports Field Initiative: “Setagaya Dream Dance Contest”

Through a variety of initiatives, we are working to create a workplace environment in which all employees can exercise their abilities and work in a healthy and energetic manner.

We have established and are promoting the "Action Plan for Balancing Work and Childcare" and the "Action Plan for Promoting Women's Activity".

Career employee system (mandatory retirement age of 75 if certain conditions are met)

Establishment of a company cafeteria

Stress checks are conducted once a year.

Installation of balance balls in meeting rooms and some office areas as part of efforts to improve health, etc.

We also proactively introduce systems to back up employees' self-development, such as the purchase of books and full payment of examination fees for qualifications (in accordance with company regulations).

As a result of these efforts, we received the “Kurumin Certification” in 2021, and have been awarded both the “Certified Excellent Health Company (Silver)” and “Sports Yell Company” recognitions for two consecutive years since 2024.

In 2016, we launched the Hou-yu Kai, an association composed of our company and our partner companies involved in the construction of our properties, for the purpose of conducting activities to prevent occupational accidents and health and safety activities at our property development sites.

Since then, we have conducted monthly safety patrols and held annual safety conventions to share activity results and goals. By strengthening cooperation with partner companies and maintaining a safe working environment, we have been able to develop high-quality, high-performance properties.