Material issues | MUGEN ESTATE Co., Ltd.

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Material issues (issues that are material to the management of the Group)

To increase the value of the Group, we have identified connections between our business operations and social issues from an ESG (environmental, social, and governance) perspective and identified material issues (issues that are material to the management of the Group), which is crucial for us to achieve sustainable growth and contribute to building a sustainable society. We based our determinations on our sustainability policy, recent changes in society and the needs of society.

Process for identifying material issues

The Group used the following process to identify material issues.

(i) Choosing issues

Referencing international frameworks including the GRI Standards, the SASB Standards, the UNGC principles and the ISO 2600 standard and the Guidance for Collaborative Value Creation, and reviewing the opinions of stakeholders, we identified 107 social issues that are closely related to the Company’s business operations and corporate culture.

(ii) Determining and weighting material issues through communication with stakeholders

We weighed the 107 issues in consideration of medium-to-long term management strategies, objectivity, and the priorities of the Company, consolidating them to 14 issues.

Business activities with environmental considerations
Offer high-quality real estate
Serve society through the real estate revitalization business
Coexistence with local communities
Realization of a sustainable future
Increase corporate value and return to stakeholders
Strive for customer satisfaction
Promotion of DX
Respect for human rights
Construct an organizational culture where all employees can display their potential
Hire and foster competent personnel
Establish a desirable working environment and improve employee health
Strengthen corporate governance
Prevent misconduct and violations and increase compliance

(iii) Prioritizing issues

We prioritized the 14 selected key issues according to their significance to the Company and the stakeholders and created a materiality matrix.

(iv) Selecting material issues

We used the materiality matrix to select five material issues considering the relationships between the key issues. The key material issue is the realization of a sustainable future, which involves four material issues: the enhancement of corporate value, the revitalization of real estate, diversity and inclusion and governance.