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Initiatives
Initiatives for local communities
AEON REIT invests in equipment and facilities that match the characteristics of each region, aiming to contribute to the sustainable development of local communities. Aeon upholds the Aeon Basic Principles of "pursuing peace, respecting humanity, and contributing to local communities, always with the customer's point of view as its core." As a responsible corporate citizen, Aeon implements various initiatives in collaboration with local residents in order to contribute to community development and enrich cultural life.
Acquiring community infrastructure assets and investing in revitalization
AEON REIT's philosophy is to invest in community infrastructure assets. In addition to acquiring properties the Aeon Group operates as such assets, we also continue to make investments that contribute to the revitalization of our owned properties.
In AEON MALLs targeted for acquisition by AEON REIT, we carefully select properties that are essential to the local community, offering not only shopping, dining, and entertainment but also public facilities such as medical institutions, government offices, banks, and post offices, as well as event spaces such as Aeon Halls. After acquiring properties, we consistently carry out investments aimed at revitalization to adapt to changes in the lifestyles of local residents.
One example is the investment AEON REIT made to revitalize a portion of the facilities in AEON MALL Kurashiki, which had been reopening in stages since 2022. Based on the concept of turning the mall into a central hub for local solutions, the upgrade of the mall included the introduction of new stores while others were relocated or renovated. Also, the design of the exterior walls of the mall were fully renewed, and the food court, courtyard, and children's playground were all upgraded.
Diverse perspectives were considered before making the changes. We increased facilities that take advantage of Kurashiki's climate and build connection with the community as well as facilities that parents with small children can enjoy. These efforts have resulted in a mall that contributes to the sustainable development of the local community.
Community contribution through our properties
As a part of the local and global community, Aeon is committed to nurturing connections and creating towns that contribute to community development and the enrichment of cultural life alongside local residents and government authorities. Initiatives span a wide range of activities, from promoting customer health and conveying local attractions in each retail facility to providing opportunities for volunteer activities.
Initiatives to enhance health
AEON MALL supports customers in leading a healthy lifestyle by setting up walking courses within its facilities. The AEON MALL Walking program allows customers to exercise while shopping, regardless of the season, weather, or time. Moreover, events and activities promoting health serve to create an environment that supports a healthy lifestyle for all who visit.
Communicating the attractions of the region
Aeon actively promotes the dissemination of the region's appeal in collaboration with local residents. In addition to hosting events and exhibitions within retail facilities, designs and features are incorporated throughout the premises that showcase the traditional culture of each region.
AEON MALL Shinkomatsu highlights the charm of Komatsu City by featuring the captivating five-colored Kutani pillar featuring pieces of traditional Kutani pottery decorative plates, spanning from the first floor to the third floor. It also houses the Hakusan Terrace, providing a panoramic view of Mount Hakusan, one of Japan's three most renowned mountains. Other facilities similarly convey the appeal of the region in collaboration with local residents.
Social considerations
AEON Reit Management, the Asset Management Company, is also engaged in various social contribution activities as part of the Aeon Group. These activities include a community cleanup program once a month for the benefit of the local community and to drive regional revitalization.
In addition to undertaking fundraising activities every year, the company started donating to the AEON 1% Club Foundation in 2021. With this, major Aeon Group companies donate 1% of their pre-tax profits to the AEON 1% Club Foundation, enabling it to engage in projects based on the three themes of "sound development of the next generation," "promotion of friendship with foreign countries" and "sustainable development of regional communities." Specifically, the funds contributed are used to support the construction of schools in countries lacking educational facilities, the transmission of traditional events and culture rooted in local regions, the revival and reconstruction of regions damaged by large-scale natural disasters and the fostering of new talent who will shoulder the responsibility of such activities.
Initiatives for Safety and security of owned properties
Aeon promotes measures that place top priority on ensuring safety, security, and comfort as part of its customer-first approach.
Similarly, AEON REIT invests to enhance safety and security in our owned properties.
Investment to revitalize properties by boosting safety and comfort
AEON REIT is actively making capital investments to enhance the safety, comfort, and security of our owned properties.
We strive to make facilities safer by renewing disaster-proof shutters, installing emergency power generators and dual power lines, and changing materials in smoke-proof hanging walls to slow down the flow of smoke in a fire, such as shifting from glass to incombustible film.
In addition to upgrading toilet facilities to improve comfort, we are making revitalization investment in specific sections of our properties where we can make more effective use of space. At AEON MALL Suzuka, in June 2021, aging raw garbage bins were removed, and the raw garbage storage space was shifted to a semi-outdoor area, thereby improving the environment and increasing employee satisfaction. Shifting the raw garbage area enabled us to add more floor space for tenants, and the introduction of popular new tenants has made shopping more enjoyable for customers.
Shifting the raw garbage storage area at AEON MALL Suzuka
Mitigating earthquake risk
At AEON REIT, we aim to keep the probable maximum loss (PML) of our portfolio in Japan under 10%, in principle. If the PML of an individual property exceeds 15%, we take out earthquake insurance following comprehensive deliberation that takes into account the expected impact of an earthquake on the property and the entire portfolio as well as the effectiveness of the insurance.
For assets overseas, we comply with legal standards for earthquake resistance in the countries and regions we own properties and make investment decisions in careful consideration of the viability of calculating PML value in a region, the availability of earthquake insurance and local practices.
Group response to disaster preparedness
Since 2012, Aeon has been systematically establishing disaster relief centers to enhance safety and security measures in its facilities. These centers serve various roles during disasters, including providing temporary shelter, serving as bases for rescue and relief activities, and supplying essential goods. Self-power generation facilities and emergency water withdrawal outlets for water tanks have been installed at designated stores. As of February 29, 2024, these centers have been established at 67 locations, including eight properties owned by AEON REIT.
Disaster prevention agreements have also been concluded with local governments, which see us provide support in a disaster. Over 1,100 such agreements have been signed with around 780 local governments and private companies nationwide as of February 29, 2024. With this, Aeon sends relief supplies and offers up its parking spaces for use as evacuation sites in times of need. Aeon also cooperates with local disaster preparation activities such as conducting joint drills, which serve to strengthen community ties as well.
Initiatives promoted by tenants
The Aeon Group actively promotes initiatives in consideration of the comfort and safety of its properties. This includes the installation of universal restrooms, vending machines based on universal design and barrier-free facilities such as slopes at many of its properties.
To make the lifestyles of employees more comfortable, the Group operates Aeon Yumemirai (Dreams for the Future) Nursery School in support of people working while raising children and looks to upgrade break rooms. There were 30 such nursery schools nationwide as of May 2024, with five of these located within properties owned by AEON REIT.
The Aeon Group has also established Aeon Doyutenkai (store association) for subtenants (lessees when subleasing) in retail facilities, offering multi-faceted support, including sales support, for tenants who are members.
Disclosure
To secure unitholde value, we will keep on disclosing information from the standpoint of investors as far as we can, and convey important topics promptly and accurately.
Relations with Institutional investors
We actively participate in domestic and international investor conferences sponsored by securities companies. We also conduct individual interviews and meetings with domestic and foreign investors for follow-up purposes by visiting their offices or online meetings.
Relations with Individual investors
In addition to briefing sessions sponsored by securities companies and The Association for Real Estate Securitization, we aim to hold a variety of sessions in various locations, including properties owned by the Investment Corporation.
Please refer “ESG Data” for IR implementation status and number of press releases.
Initiatives by AEON Reit Management
Human resource recruitment/development
AEON Reit Management, the Asset Management Company, recruits diverse human resources, both inside and outside the Group, to achieve stable asset management over the medium to long term.
Recruitment of human resources
Aeon seeks individuals who can consistently offer high-value products and services based on a customer-first approach and aims to build an organization that attracts highly productive talent, fostering continuous growth. To achieve this, Aeon strives to create an environment where motivated individuals, regardless of race, age, nationality, or gender, can equally pursue opportunities, recruiting for specific jobs by targeting people who have just graduated college or university and mid-career professionals.
The Asset Management Company aims to secure personnel with sufficient capabilities by recruiting outstanding individuals externally in a timely manner and accepting high-skilled professionals with experience and expertise from various companies within the Aeon Group. Efforts are made to establish systems and foster an organizational culture where personnel with diverse backgrounds, values, and high levels of expertise can come together and fully utilize their abilities, ultimately contributing to the enhancement of unitholder value.
Employing senior citizens
The Aeon Group has been implementing a reemployment system for individuals aged 65 to 70 since 2018, and for those aged 70 to 75 since 2021. This allows employees to continue utilizing their licenses and qualifications for a longer duration and remain active in the organization. The Asset Management Company has introduced a mandatory retirement age of 65 so that every employee can maximize the expertise and capabilities they have enthusiastically built up through experience for as long as possible.
Recruitment of new graduates
Aeon Group continues to recruit new graduates and interns in an effort to secure diverse human resources under the concept of "challenge to change." The Group provides various training opportunities after recruitment to create an environment in which each employee can continue to work with a sense of purpose, play an active role, and continue to grow.
Human resource development
Aeon is striving to create a corporate environment in which each employee can continue to work with a sense of purpose, play an active role and continue to grow. AEON Reit Management, the Asset Management Company, has also established a basic policy in line with this philosophy in its efforts to develop human resources.
Policy on Human Resource Development
The Asset Management Company considers that it is necessary to gather human resources with various values and high level of expertise in order to realize its corporate philosophy. At the same time, development of company systems and fostering an organizational culture is considered as important actions with the aim of maximizing employees' abilities.
Based on the above idea, the Asset Management Company is continuously and actively investing in human resources to promote the autonomous development of abilities and careers by human resources, which are the most important assets for the company referring to the Code of Conduct. Approximately 1% of the annual operating revenue generated by the Asset Management Company is earmarked for investment in human resources.
Training is provided to both the people conducting personnel evaluations and the people being evaluated. Goal-setting sessions and assessment-related interviews lay the platform for gaining employee understanding and increasing motivation while also providing the opportunity for personal growth.
Training system
The Asset Management Company conducts different kinds of training for all employees. The various programs seek to realize the Aeon Basic Principles, and include training to promote the sharing and dissemination of values, practical training to enhance the expertise and knowledge required for job roles at different levels and positions, and Aeon Business School, where motivated individuals can acquire the necessary knowledge and skills to pursue their desired career paths. The Asset Management Company continually reviews program content and conducts comprehensive training and assessments, both internally and externally, to cultivate personnel with advanced expertise. It has also introduced development programs tailored to career levels, as well as management training and support systems that promote autonomous skill development.
In addition, annual training sessions on human rights and harassment prevention are conducted, with participation from all employees. The aim is to create a pleasant work environment in which diverse human resources can play active roles through educational and awareness-raising activities that help resolve various issues related to human rights.
Capacity and career development system
Support for acquiring qualifications
The Asset Management Company aims to have a group of specialists who can develop their own skills and careers under their own steam. It has therefore designated real estate notary, ARES Certified Master, and certified real estate consulting master as specially recommended qualifications, and encourages their acquisition by providing various cost subsidies. In addition, the company provides support for the acquisition of various professional qualifications and the development of management skills. Besides support to obtain and keep the qualifications, it also covers the cost to attend seminars and the like.
Training for executives and managers
In order to develop management skills and human resources, the asset management company proactively supports employees by dispatching them for trainings and promoting initiatives for developing expertise and management skills.
The AEON Group conducts training for managers such as "executive training," which is linked to the further development of management skills.
In addition, we conduct training for executives and managers as follows.
・New director training (training for new directors)
・Management training (training for general managers and equivalent)
・Management training for next generation (training for young generations who have potential to be management in future)
Appropriate and fair personnel evaluation and compensation systems
The Asset Management Company has introduced a personnel evaluation system for all employees. Twice a year, at the beginning of the first and second halves, the company sets semi-annual goals through interviews with personnel evaluators, and at the end of the period, it evaluates performance against these goals. The company offers training for both evaluators and those being evaluated. Ensuring feedback from the personnel evaluator reaches the individual aims to enhance each person's performance and drive the achievement of organizational goals. Results from the evaluation are reflected in the compensation amount for the employee.
In addition, once a year, the company conducts interviews led by the human resource department, creating opportunities for dialogue about the individual's career development and current challenges to support employees and enhance organizational strength.
Human rights and a fair and healthy work environment
Aeon aims to realize a society where human rights are respected through its business activities based on Aeon's Basic Human Rights Policy, and endeavors to deepen the understanding of human rights among all Aeon employees.
The Basic Human Rights Policy of the Aeon Group
Aeon established its Basic Human Rights Policy in 2008 as part of management efforts to respect humanity, which forms part of the Aeon Basic Principles. In 2014, the policy was revised to specify that discrimination on the grounds of sexual orientation or gender identity will not be tolerated. It was revised again in 2018, expanding the scope to the human rights of suppliers.
The revised Aeon's Basic Human Rights Policy aims to implement initiatives to respect human rights based on international law and international agreements in addition to domestic law, and to target all stakeholders involved in Aeon's business activities. In addition to clearly stating these points, it stipulates that we will establish a human rights due-diligence process regarding the shadow of human rights through business activities and aim to realize a society in which human rights are respected.
Approach to diversity
Aeon refers to the satisfaction of employees, their families, customers, and the company created by diversity as "Daimanzoku." The concept of "Daimanzoku" has been adopted as a shared vision within the Group, and includes various initiatives such as organization-wide diversity training and the "Daimanzoku" Award, which recognizes Group companies promoting diversity.
As part of efforts to accelerate diversity, Aeon has appointed diversity promotion managers and other individuals in each Group company to address challenges. It also holds events such as the "Daimanzoku" Forum for management to discuss themes related to diversity management and the "Daimanzoku" College to empower diverse human resources.
In addition to the Group-wide initiatives, the Asset Management Company conducts various programs aimed at improving diversity and equal opportunities for all employees, including officers. These programs include human rights training and harassment prevention training for all staff, ensuring that diverse personnel can maximize their individual strengths and work in a safe and inclusive environment. In all aspects of recruitment, employment, vacation requests, performance evaluation systems, and employee benefits, we provide fair and equitable treatment to our employees, regardless of their race, gender, sexual orientation, or religion.
Diversity promotion system
The Asset Management Company has established a Sustainability Promotion Committee for the promotion of initiatives related to sustainability. Enhancing employee diversity and addressing issues related to fairness and inclusivity are important priorities within this subcommittee, which serves as a platform for information sharing and deliberation.
Initiatives for health, safety and the environment
The Asset Management Company holds bimonthly Safety and Health Committee meetings to ensure the health and safety of employees by sharing information and holding discussions on work style, health management and other matters. Other initiatives to ensure the health and safety of employees include making follow-up announcements for checkups with industrial physicians based on the results of regular checkups. Training is also given on such topics as infectious diseases, mental health and women's health depending on the issues each employee is facing. Various walking events and measures to prevent infections from spreading also aim to enhance health and safety. Since 2020, the Asset Management Company has been certified under the Health & Productivity Management Outstanding Organizations Recognition Program run by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi, which undertakes advanced initiatives to prevent illness and enhance health nationwide in recognition of these efforts.
Comfortable work environment
Satisfaction surveys
The Asset Management Company utilizes the Aeon Code of Conduct Survey (employee satisfaction survey) which targets Aeon Group employees regarding their satisfaction on such topics as workplace environment while also covering compliance awareness.
Overall, the satisfaction rate is higher than the group average. By utilizing the survey, the Asset Management Company will continue to create a comfortable work environment by listening to employees' opinion.
Initiatives to provide comfortable work environment
In order to create a better working environment from the employee's perspective, the Asset Management Company regularly listens to employees' opinions and works to improve the environment.
For example, we have introduced a desk sharing system and also installed health equipment such as fitness tools and blood pressure monitors. We have also introduced telework and the use of satellite offices, promoting the realization of diverse work styles that take into account working situations and living environments.
In addition, with the aim of increasing communication, we are providing support for in-house club activities and holding in-house events.
Grievance procedure
The Aeon Group established the Aeon Compliance Hotline in 2004 as an internal reporting system. The hotline serves as a channel for reporting and consulting on various workplace issues, not limited to reporting legal violations or misconduct, but also including communication problems with supervisors and personal challenges employees may face in the workplace. In addition, the Aeon Group has established internal and external consultation services for all employees including retirees.
Similarly, the Asset Management Company utilizes this system to proactively address any violations of laws and internal regulations to ensure a comfortable workplace environment.
Please refer Governance page for details on the Whistleblowing system.
Employee welfare
The Asset Management Company is working to establish systems and an organizational culture so that employees can maximize their potential.
| Classification | Activity | Coverage | Details |
|---|---|---|---|
| Leave | Childcare leave | All employees | Until the child reaches the age of 2 or 3 |
| Caregiver leave | All employees | Up to one year in total | |
| Nursing care leave | All employees | Up to five days per year | |
| Annual paid leave by the hour | All employees | Up to five days per year | |
| Healthcare | Safety and Health Committee | All employees (including officers) | Held bimonthly |
| Employee satisfaction surveys | All employees | Conducted once a year (Started annually in 2019; conducted every other year prior to that) | |
| Provision of comprehensive medical checkups | All employees (including officers) | In addition to the annual basic checkup, cancer screenings are conducted based on age groups | |
| Stress checks | All employees | Conducted once a year | |
| Mental health courses | All employees (including officers) | Conducted at least once a year | |
| Checkups with industrial physicians | All employees (including officers) | Arranged on a regular basis and as needed | |
| Whistleblower system | All employees (including officers) | Established for use by all employees | |
| Infectious disease prevention | All employees (including officers) | Cost of equipment to prevent the spread of infection and flu vaccinations, etc. are subsidized | |
| Other | Aeon Group's welfare system | All employees (including officers) | Signed up as a member of the Health Insurance Association and the Aeon Good Life Club, and use of employee discounts |
| Periodic evaluations | All employees | Conducted in each period (every six months) | |
| Personnel interviews | All employees | Conducted with all employees once a year | |
| Cumulative investment system for investment units | All employees (including officers) | Expected to increase employee awareness aimed at boosting business performance and to enhance unitholder value | |
| Reduced working hour system for nursing care | All employees | Up to three times in three years per eligible family member Can be renewed in case the nursing care exceeds three years |
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| Reduced working hour system for childcare | All employees | Up to the time the child enters junior high school, at maximum |