In recent years, climate change has become a source of significant socioeconomic risk and opportunity, and the movement toward decarbonization is spreading around the world.
The Purchase and Resale Business, the Group's core business, is an environmentally friendly business model that promotes the revitalization and distribution of existing real estate and makes effective use of existing resources.
At the same time, we recognize that we may be affected by various impacts of climate change, such as flooding, and that addressing climate change is essential to the sustainability of our business.
As part of our commitment to environmentally friendly business activities to realize a sustainable society, the Group have agreed to the TCFD (Task Force on Climate-related Financial Disclosure) recommendations and will identify risks and opportunities for our business activities arising from climate change and disclose appropriate information.

The TCFD recommendations include a recommendation for conducting a scenario analysis. It is an assessment of climate-derived impacts on businesses on the basis of multiple climate scenarios. For developing and studying strategies to deal with future uncertainties, we conducted a scenario analysis mentioned below.

For this scenario analysis for the first year, we conducted qualitative and quantitative studies to estimate the situation in 2050 according to two scenarios. One is the 4°C scenario, in which extreme weather will be intensified after no climate actions that surpass the current ones are taken. The other is the 1.5°C scenario, in which ambitious climate actions are implemented with a view towards decarbonization.

The studies estimate that climate change has a principal risk of causing floods and high tides that will bring about physical damage to properties owned in both scenarios. In the future, we will take enhanced disaster control measures, including toughening the criteria for the selection of real estate locations in consideration of hazard maps, in order to increase business resilience.

On the other hand, there are opportunities anticipated in the 1.5°C scenario. They include an increase in demand for renovation into zero emission buildings (ZEBs) and houses (ZEHs) for energy conservation and the use of renewable energy amid the transition to a carbon-free society and an increase in opportunities for business revenue linked to the rising environmental value of used real estate. We will continue business activities with environmental considerations to help build a carbon-free society and control climate change.

List of climate-related risks and opportunities estimated in the Group

The Group uses GHG emissions (Scope 1 and 2) from its own business activities as a key indicator and will promote environmentally friendly business activities by reducing these emissions.
As medium-term reduction targets for Scope 1 and Scope 2, we have set a target of reducing emissions by 46% per unit of sales (compared with FY2021) by FY2030, and as a long-term target, we aim to achieve carbon neutrality by FY2050, with reference to the targets of the Paris Agreement.

While we expect GHG emissions to increase in line with business growth and entry into new businesses, we will continue to strengthen our efforts to reduce emissions. We will contribute to the creation of a sustainable society by promoting multifaceted measures to improve energy efficiency, promoting low-carbon energy use while maximizing environmental value, and examining further reduction methods.

Scope 1 emissions for FY2025 were 13.8 t-CO2, a decrease from the previous fiscal year, and emissions intensity decreased by 73.6% compared with FY2021. As the use of car-sharing and bicycle-sharing became more widespread within the Company, the frequency of company vehicle use declined, leading to lower gasoline consumption and, in turn, reduced emissions.

Scope：The Mugen Estate Group

※Scope1:

Greenhouse gas emissions from fuel consumption
As for the Company, emissions resulting mainly from the use of company cars(gasoline cars) fall under this scope.

※Emissions unit values

:Emissions per unit of net sales

The Mugen Estate Group has recently agreed to the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations as part of its efforts to realize a sustainable society with environmental considerations. In addition, we will understand the risks and opportunities of businesses, etc. arising from climate change and make appropriate information disclosures.