Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…][Descriptions of how multiple climate change-related collaborations are managed across different business sectors and geographical areas, and how we confirm that the management of such collaborations is aligned with corporate climate change strategies.]
Our business operations are formed largely around the keywords, "finance,† "securities,† and "real estate.† In "finance,† we have become signatory to the PRI and UNEP FI. In the latter initiative, we worked on the launch of the Japanese version of the Positive Impact Real Estate Investment Framework. In the business areas of "securities† and "real estate,† we actually participate in the Association for Real Estate Securitization (ARES) as a board member. The Sustainability Committee and the Board of Directors discuss climate change issues and business strategies, and the outcomes are presented by our member executive officer to the ARES for discussion with other member companies. These issues are again put to debate within the company before relevant measures are planned and implemented. We perform activities based on this PDCA cycle.
In FY2021 in particular, the Head of our ESG Office participated in the "ESG-TCFD Working Group for the Real Estate Sector† supervised by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), where deliberations were conducted throughout the year regarding information disclosure for ESG including TCFD recommendations, bearing in mind conditions unique to real estate in Japan. What risks and opportunities could be assumed in terms of transition risks and physical risks for the real estate industry in the future were discussed along with specific measures to address the risks and opportunities. Among the risks identified were carbon taxes. Deliberations are occurring in collaboration with the real estate industry to contemplate possible countermeasures, and we have conducted risk analyses internally as well based on those results.