ESG Data

Environment

Data from 2019 onwards

Theme Activity Unit FY2019 (Base year) FY2020 FY2021 FY2022 FY2023
Greenhouse gas CO2emissions t-CO2 255,036 236,409 261,229 258,568 275,439
Scope1 t-CO2 0 0 0 0 0
Scope2 t-CO2 21 25 23 17 0
Scope3 t-CO2 255,015 236,384 261,206 258,551 275,439
CO2intensity t-CO2/㎡ 0.0730 0.0665 0.0661 0.0625 0.0666
Annual reduction rate on average compared to the base year (FY2019) % ― 91.1 90.5 85.6 91.2
Energy Energy consumption MJ 5,763,600,957 5,535,915,812 6,060,710,745 6,087,500,131 6,266,575,648
Energy intensity MJ/㎡ 1,650 1,557 1,534 1,471 1,514
Annual reduction rate on average compared to the base year (FY2019) % ― 94.4 92.9 89.2 91.8
Water Water use ㎥ 4,295,011 3,543,233 3,893,485 4,156,838 4,385,308
Water use intensity ㎥/㎡ 1.230 0.997 0.985 1.005 1.060
Waste Amount of waste generated t 36,299 31,249 34,049 35,340 36,274
Waste disposal intensity t/㎡ 0.010 0.010 0.010 0.010 0.010
Amount recycled t 21,258 18,574 19,734 20,597 21,427

FY2014 Performance against mid-term targets (FY2015 - FY2019)

Theme Activity Unit FY2014 (Base year) FY2015 FY2016 FY2017 FY2018 FY2019 Reduction rate over 5 years
Greenhouse gas CO2emissions t-CO2 160,560 189,526 205,562 258,150 265,133 256,316 ―
CO2intensity t-CO2/㎡ 0.0987 0.0922 0.0926 0.0868 0.0845 0.0771 ―
Annual reduction rate on average compared to the base year (FY2014) % ― 93.5 93.9 88.0 85.6 78.1 21.9
Energy Energy consumption MJ 2,906,286,975 3,550,381,516 3,964,556,002 5,082,152,759 5,443,383,068 5,621,428,881 ―
Energy intensity MJ/㎡ 1,786 1,728 1,786 1,710 1,734 1,690 ―
Annual reduction rate on average compared to the base year (FY2019) % ― 96.7 100 95.7 97.1 94.6 5.4

Ratio of properties with third-party certification

Theme Activity Unit July 31, 2021 January 31, 2022 July 31, 2022 January 31, 2023 July 31, 2023 January 31, 2024 July 31, 2024
Ratio of properties with third-party certification Overall certification acquisition rate (equivalent to ★3 or higher) % 83.3 84.9 84.9 84.9 86.8 86.8 86.8
★4 or higher certification acquisition rate % 76.1 78.4 78.4 80.4 82.5 82.5 83.7

<Third-Party Verification>

To ensure reliability, part of our environmental data has undergone third-party verification by Japan Quality Assurance Organization (JQA).

Verification Report (2022)
(Note 1) Newly acquired properties will be added from the month of acquisition. (Note 2) Definition of each scope follows.
Scope1：Direct greenhouse gas emissions from office operations of the Investment Corporation and the Asset management Company.
Scope2：Indirect emissions associated with the use of electricity, heat and steam supplied by other companies for office operations of the Investment Corporation and the Asset management Company.
Scope3：Indirect emissions associated with activities at owned properties and other parties related to the Investment Corporation and the Asset Management Company. (Note 3) CO2 emissions and energy consumption related to the operation of properties owned by the Investment Corporation (all Scope 3) are calculated with "Intensity of CO2 emissions", "Intensity of Energy consumptions" and "Reduction rate compared to the base year (FY2019)".

Social

Data related to employees

Theme Activity FY2019 FY2020 FY2021 FY2022 FY2023
Employees Number of employees (including officers) 37 37 40 40 44
Male (ratio) 31（84%） 32（86%） 31（78%） 29（73%） 31（70%）
Female (ratio) 6（16%） 5（14%） 9（22%） 11（28%） 13（30%）
Of which, number of directors 4 4 4 4 4
Male (ratio) 4（100%） 4（100%） 4（100%） 4（100%） 4（100%）
Female (ratio) 0（0%） 0（0%） 0（0%） 0（0%） 0（0%）
Number of seconded employees accepted 6 5 2 0 0
Male (ratio) 5（83%） 4（80%） 1（50%） 0（0%） 0（0%）
Female (ratio) 1（17%） 1（20%） 1（50%） 0（0%） 0（0%）
Management*1 16 18 19 17 17
Male (ratio) 13（81%） 15（83%） 18（95%） 15（88%） 15（88%）
Female (ratio) 3（19%） 3（17%） 1（5%） 2（12%） 2（12%）
New hires 7 2 9 4 6
Male (ratio) 6（86%） 1（50%） 5（56%） 2（50%） 4（67%）
Female (ratio) 1（14%） 1（50%） 4（44%） 2（50%） 2（33%）
Employees aged 60 and over 3 4 1 0 0
Turnover rate (%)*2 6 5 8 8 8
Average duration of service 3 yrs 8 mons 4 yrs 5 mons 4 yrs 2 mons 4 yrs 5 mons 4 yrs 8 mons
Male 3 yrs 6 mons 4 yrs 3 mons 4 yrs 7 mons 4 yrs 11 mons 5 yrs 2 mons
Female 4 yrs 7 mons 5 yrs 8 mons 2 yrs 11 mons 3 yrs 4 mons 3 yrs 9 mons
Work-life balance Employees taking childcare leave*3 0 1 1 0 0
Male 0 0 0 0 0
Female 0 1 1 0 0
Employees taking nursing care leave 0 0 0 0 0
Male 0 0 0 0 0
Female 0 0 0 0 0
Average overtime hours (hours/month)*2 13.2 11.7 14.3 15.6 14.8
Average number of paid holidays taken 11.5 12.4 10.4 11.1 10.9
Occupational fatal accidents 0 0 0 0 0
Gender wage gap (%)*4 ― 81 71 71 79
Absence rate (%)*2 0.24 0.71 2.5 1.68 1.37
Employee satisfaction survey results (Overall satisfaction (out of 5)) 3.71 3.79 4.09 4.02 ―
Employee satisfaction survey results (Engagement score (Note 5)) ― ― ― ― 51.0
Percentage of feedback and career interviews implemented 100 100 100 100 100

Human resources development

Theme Activity FY2019 (Base year) FY2020 FY2021 FY2022 FY2023
Training hours/Number of employees with certifications Training hours per employee 32 16 29 23 34
Training costs per employee (Yen) 81,000 46,000 90,500 146,000 249,000
Number of employees with real estate qualifications Real estate notary 16 13 18 15 16
ARES Certified Master 7 9 11 11 11
Certified real estate consulting master 3 3 3 3 3
Number of training sessions Compliance 7 11 11 12 11
Business*6 7 6 6 6 9
Occupational health and safety-related 4 5 6 7 9
System 12 12 17 15 17
Sustainability 1 1 1 1 1

Social contributions

Theme Activity FY2019 FY2020 FY2021 FY2022 FY2023
Social contributions Number of community cleanup programs implemented 9 ― ― 9 8
Support to AEON 1% Club Foundation (Yen) ― ― 10,600,000 12,800,000 13,500,000
Donations (Yen) 23,331 14,751 15,917 49,175 23,460

Disclosure

Activity Classification 22nd Period
August 1, 2023 to January 31, 2024		 23rd Period
February 1, 2024 to July 31, 2024
Number of press release Total 19 17
Properties 2 2
Financial results 10 9
Borrowing 3 1
Capital increase 0 0
Rating 0 1
Others 4 4
Number of conferences with Individual investors Online 1 0
In person 0 1
(Note 1) "Managements" refers to managers and above, including executives (Note 2) The turnover rate, overtime working hours, number of paid vacation days taken, and absenteeism rate are estimated based on the asset management company's standards. (Note 3) Percentage of male employees taking childcare leave = Number of male employees who took childcare leave during the fiscal year / Number of spouses of male employees who gave birth during the fiscal year x 100 (Note 4) Annual average salary of female employees excluding directors / Annual average salary of male employees x 100 (Note 5) "Engagement score" is a numerical value of the relationship between employees and the company as a "deviation value (national average 50.0)" based on the database of the research commissioning company. Due to the change in the scoring method for employee satisfaction surveys starting in fiscal 2023, engagement scores are listed starting from FY 2023 results. (Note 6) Each department takes turns conducting training related to work content.

Governance

Compliance

Theme Activity FY2019 FY2020 FY2021 FY2022 FY2023
Compliance Number of regular internal audits conducted 9 10 9 10 10
Number of times whistleblowing system used 0 0 0 0 2
Number of compliance training sessions 7 12 11 12 12
Amount of political contributions (yen) 0 0 0 0 0

Directors (executive directors, supervisory directors)

Name Activity Unit Period ended January 31, 2024 Period ended July 31, 2024
Executive Director
Nobuaki Seki		 Attendance at Board meetings % 100 100
Executive compensation Thousand yen ― ―
Supervisory Director
Yoko Seki		 Attendance at Board meetings % 85.7 100
Executive compensation Thousand yen 1,800 1,800
Supervisory Director
Makiko Terahara		 Attendance at Board meetings % 100 100
Executive compensation Thousand yen 1,800 1,800

Independent Auditor's remuneration

Name Unit Period ended January 31, 2024 Period ended July 31, 2024
PricewaterhouseCoopers Japan LLC Thousand yen 18,400 18,600

Status of transactions with related parties, etc. of the Investment Corporation

Activity Lessee Total Rent Received (Millions of yen)
22nd Period
August 1, 2023 to January 31, 2024		 23rd Period
Febryary 1, 2024 to July 31, 2024
a）Rent received*1 AEON Mall Co., Ltd. 10,704 10,830
AEON Retail Co., Ltd. 6,757 6,776
AEON Hokkaido Corporation 1,021 1,021
AEON KYUSHU Co., Ltd. 764 764
The Daiei, Inc. 588 588
AEON TOHOKU Co., Ltd. 511 511
AEON Global SCM Co., Ltd. 289 289
AEON CO. (M) BHD.*2 26
(835 thousand RM)*3		 26
(837 thousand RM)*3
Total 20,664 20,808
b）Rent paid*1 AEON Mall Co., Ltd. 1,333 1,333
AEON Retail Co., Ltd. 895 895
AEON Hokkaido Corporation 262 262
AEON TOHOKU Co., Ltd. 185 185
AEON KYUSHU Co., Ltd. 64 64
Total 2,741 2,741

Clarification of fees and commissions, etc.
Actual asset management fees

Type of Fee Asset Management Expenses (Thousands of yen)
22nd Period
August 1, 2023 to January 31, 2024		 23rd Period
Febryary 1, 2024 to July 31, 2024
Management fee Ⅰ 615,533 609,530
Management fee Ⅱ 355,921 323,714
Acquisition fee 0 0
Disposition fee 0 0

FY2023 Theme of Compliance Trainings

Procedure for checking legal requirements Fair Disclosure Rules
Conflict of interest management Basic requirements on anti-money laundering (AML) and combating the financing of terrorism (CFT) guidelines
Response to anti-social forces Points to note in compliance-related work
Duty of loyalty and duty of care Risk management
Customer-oriented principles Information Security Course (Cyber Edition)
Entertainment/gift procedures Business and internal management topics associated with recent business model diversification at J-REIT asset management companies
(Note 1) "Related parties" are defined act on Investment Trusts and Investment Corporations, and Article 26, Section 27 of the Regulations regarding management reports of investment trusts and investment corporations set by The Investment Trusts Association, Japan. The same shall apply hereafter. (Note 2) The amount of total rent received is converted to Japanese yen using the exchange rate (the average exchange rate during the month prior to the transaction) at the time of the transaction. (Note 3) RM = Malaysian Ringgit

Progress against KPIs

Materiality Items KPIs FY2023 results
Environment
Opportunities in Green buildings GRESB Real Estate Assessment Achieve 5 Stars each year 5 stars
Ratio of owned properties with third-party certification 3 stars or higher: 85% or more, 4 stars or higher: 80% or more, with a medium-term target of 90% or more 3 stars or higher: 86.8%, 4 stars or higher 82.5%
Installation of equipment with enhanced energy efficiency Introduction of energy-saving equipment such as inverter boards in 50% or more of the store portfolio, with a medium-term target of 80% or more Installed inverter board to 2 properties
Introduction of renewable energy and energy-creating equipment in stores within our owned properties Three stores per year, with a medium-term target of 50% or more of the portfolio Initiatives in progress
Climate change Reduction of total GHG emissions Average of 1% per year in terms of consumption intensity
Medium-term targets: 50% of electricity/energy consumption to be renewable, 50% reduction of CO2 emissions (Scope 3), Long-term target: Net zero		 8.8% reduction compared to base year
Water consumption Medium-term target: Do not increase consumption intensity Initiatives in progress
Waste Medium-term target: Store recycling rate of 80% Initiatives in progress
Promotion of green finance Medium-term target: 50% or more of interest-bearing debt 25% (as of the end of Jan. 2024)
MSCI ESG rating Medium-term target: "A" or above BB
Biodiversity and land use Association for Business Innovation in harmony with Nature and Community (ABINC) certification (efforts to create biodiversity-friendly green areas) for owned properties One properties or more per year
Medium-term target: 20% or more of the portfolio, Long-term target:
30% or more		 Acquired at 2 properties by FY 2023
Social
Local community engagement and sustainable development Number of customers visiting owned properties Medium-term and long-term targets: Maintain or increase year on year on average across the portfolio Initiatives in progress
Number of stores serving as disaster relief hubs Medium-term target: 50% or more of the portfolio, Long-term target: 100% 8 locations registered
Donations to public interest foundations engaged in social contribution activities Implement annually Total 13.5 million yen
Implementation of tree-planting and other volunteer activities 40 or more participants per year Total 86 people
Activities promoting J-REITs and increasing awareness of AEON REIT Two or more per year 1 time (Online)
Safety and security of owened properties Acquisition/status assessment of engineering reports (ERs) for owned properties Aim for reacquisition within 5 years
Medium-term target: 80% or more of the portfolio, Long-term target: 100%		 98%
Implementation of planned repairs At a rate of 80% or more per year Initiatives in progress
Earthquake insurance coverage Implement annually Insurance procedures implemented in November 2023
Human capital development Average length of service 5 years or more 4 yrs 8 mons
Training hours per employee 20 or more per year 38 hours / year
Ratio of female officers 50% or more, with a medium-term target of 30% or more in the ratio of female managers Board member: 54%
Managers: 12.5%
Ratio of career development interviews conducted 100% per year 100%
Utilization rate of skills and career development programs 50% per year, with medium-term and long-term targets of 100% per year 47.50%
Governance
Corporate governance Meeting attendance 90% or more per year Overall average: 95% or more
Effective evaluation of committees Annual Implemented
Compliance and risk management Risk Management Committee meetings Biannual Carried out 2 times
Compliance and information security training Monthly, with a participation rate of 100% Every month with 100% completion rate
BCP training and committee meetings Biannual Carried out 2 times
Cybersecurity training Annual Carried out 2 times