INTRODUCTION

Introduction - worldwide aims of net zero and nature positive

Global environmental issues, such as climate change and biodiversity loss, are becoming more serious every year and are recognized as major risks to society and the economy^*1. Various measures have been adopted to address climate change including the 2015 Paris Agreement, and international initiatives are underway to develop a net zero decarbonized society. Measures addressing biodiversity loss include the 2022 Kunming-Montreal Global Biodiversity Framework (GBF); under the 2050 vision of “Living in harmony with nature”, the GBF has set a goal of becoming “nature positive”^*2 by 2030, which prescribes taking urgent action to halt and reverse biodiversity loss and promote environmental recovery under 23 specific targets.
Accordingly, our Group is steadily adopting business initiatives to meet the global “net zero” and “nature positive” goals, while proactively identifying and disclosing important climate- and nature-related concerns.

Environmental management at Tokyu Fudosan Holdings

• Our Group has adopted materiality based on social issues and established a long-term “environmental management” policy, which will be key to achieving our vision.

  

• Since its founding, we have been working to develop a sustainable society and address environmental issues through various business activities. In May 2021, we formulated the long-term materiality-based “GROUP VISION 2030” that endeavors to create lifestyles that protect the environment.
• Our long-term vision places environmental management as a major pillar, and we aim to expand environment-friendly business opportunities through the decarbonized society, circular economy, and biodiversity initiatives.
• This report discusses climate- and nature-related issues and our Group’s responses to them, with reference to the Task Force on Climate-related Financial Disclosures (TCFD^★) and Task Force on Nature-related Financial Disclosures (TNFD^★) frameworks, as well as various guidance on transition plans. In addition, with a view to proceeding with disclosures in compliance with the SSBJ standards^★, we have also incorporated some of the disclosure requirements set forth in those standards. To this end, we collaborate with MS&AD InterRisk Research Institute & Consulting Inc. to analyze climate- and nature-related issues, and with Think Nature Inc. to analyze nature-related issues.

★ :See “Glossary”

Our Group’s environmental management history

★ :See “Glossary”

Highlights in numbers for decarbonization and nature positive

1. *1Confirmed value after third-party certification
2. *2Excluding some joint ventures, etc.
3. *3Applies to large non-residential properties (total floor area ≥10,000 m2). Excluding some joint ventures
4. *4Percentage of condominiums, offices, and other facilities owned by Tokyu Fudosan Corp. with building performance equivalent to or higher than ZEB/ZEH Oriented (at commencement of construction)
5. *5Before equity conversion (including businesses under development)
6. *6New large-scale office buildings and commercial facilities developed by Tokyu Fudosan Corp.

★ :See “Glossary”

Executive summary

We are working toward solving climate- and nature-related issues through our business practices. To mitigate and adapt to climate change, the conservation of natural vegetation is essential for absorbing greenhouse gas (GHG) and reducing the risk of extreme weather events. Climate change is also a major cause of biodiversity loss and needs to be addressed to achieve nature positive goals.
Nature- and climate-related issues are closely related to each other, as recommended by the TNFD; thus, we have adopted integrated examination policies and initiatives on climate and nature, and disclose information in accordance with the framework.
This report seeks to provide an overview of how we address climate- and nature-related issues through disclosure based on the TCFD recommendations, transitioning to a decarbonized society, and disclosure based on the TNFD recommendations.

↓ Integration

For your benefit, this report uses icons in the upper right corner of each page to indicate the theme (“climate” and “nature”) and items “governance,” “strategy,” “risk and impact management,” and “metrics and targets” being covered. In addition, the “NEW” icon is displayed in the upper left corner for content that has been newly added to this report.

Please refer to the Appendix for the TNFD Recommendations for disclosures.

• The Greater Shibuya Area refers to the area within a 2.5-km radius of Shibuya Station, as defined in the Shibuya Urban Development Strategy of the Tokyu Group.

★ :See “Glossary”

We conducted an integrated climate and nature scenario analysis encompassing our Group’s businesses, identified material risks and opportunities based on their financial impacts, and incorporated the findings into our strategy.

Dependencies and impacts of Greater Shibuya area

Our businesses in "Greater Shibuya area", one of the priority locations, has various impacts, such as land alteration and occupation, as well as dependencies on nature, such as mitigation of flooding and heat island effects, and the healing and aesthetic aspects of nature.
Of these, the impacts of land use and building greening on nature were quantitatively analyzed using the analysis tools of Think Nature Inc.
As a result of performing quantitative analysis using Think Nature’s analysis tools, we found that biodiversity regenerative effects before and after the building of Group properties in the greater Shibuya area turned positive starting with properties from FY2012 and beyond. At properties completed in recent years, initiatives aimed at ensuring the quantity and quality of greening, such as securing green space area largely through urban redevelopment systems and selecting native species of trees for planting, have shown positive effects, and the community planning efforts of the Group have been recognized as contributing to nature positive.
In particular, the quantity and quality of greening at target properties under our Redevelopment Business have been trending highly relative to facilities up to this point. Going forward, we will continue to promote the planning of communities that coexist with nature.

Dependencies and impacts in Tokyu Resort Town Tateshina

Our businesses at “Tokyu Resort Town Tateshina”, analyzed as a priority location, has various dependencies on nature, such as tourism resources, recreational functions, climate control, and disaster mitigation. Despite the potential negative impacts, such as land alteration and occupation, through the value chain, there are positive impacts through initiatives such as forest management. Focusing on one of these important impacts, that is, land alteration and occupation through facility development and operation, this impact was measured as an indicator via quantitative evaluation of the changes in forest area percentage since development initiation in collaboration with Think Nature Inc..
Analysis of forest area from aerial and satellite images showed that, although the forest area has declined due to the construction of golf courses and vacation homes, the overall trend is toward recovery, and that the current status is that the area is in its most recovered state, as well as the fact that the business operations, which have simultaneously maintained and recovered forests, are contributing to nature positive as a result of our group's resort development and operations (bottom left upper figure).
Additionally, "Tokyu Resort Town Tateshina" is engaged in forest management, such as thinning based on a forest management plan. Currently, given the advanced age of the trees that constitute the forests, going forward, thinning will be continued while considering forest management that includes a partial clear-cutting of aged larch forests and replanting.
Even when conducting a quantitative evaluation on the potential impacts of forest management on biodiversity and conducting a "management method of clear-cutting and reforesting two hectares a year," the decline in the number of species in the forest was greatly suppressed compared with the case of not conducting forest management and leaving the process to natural transitions (lower right figure). These results will be used as a reference to continue promoting efforts to preserve biodiversity with appropriate forest management.

Dependency on and impact to nature at Palau Pacific Resort

Palau Pacific Resort (PPR), a priority area, both relies on and affects natural ecosystems in multiple ways.

An environmental impact assessment found that PPR has had a nature-positive contribution by conducting its business while preserving both terrestrial and marine ecosystems, following its guiding principles of balancing nature conservation with development and contributing to the local community.
A green space assessment at the resort showed that restored and maintained natural forests now cover an area far larger than the built-up area [Figure 1].
Coral reef assessments indicated that measures, such as establishing a marine protected area, have steadily increased coral coverage in the seas in front of the resort. Despite recent environmental pressures from typhoons and predation by marine organisms, new coral growth continues to expand [Figure 2]. Furthermore, there has been an increase in populations of large invertebrates, including the endangered Tridacna gigas, confirming the effectiveness of PPR’s conservation and restoration efforts [Figure 3].

• See text for sources and detailed terminology.

Climate- and nature-related risks and opportunities

Based on the scenario and dependency/impact analyses, we characterized climate- and nature-related transition risks, physical risks, and opportunities that are particularly important for our business.
Although various climate- and nature-related risks are expected, many business opportunities can also be expected.

Initiatives to address risks, opportunities, dependencies, and impacts in the supply chain

Real estate development requires a long time and involves many parties; thus, it is necessary to collaborate with stakeholders to address climate- and nature-related issues throughout the entire supply chain.

Company-specific climate- and nature-related initiatives

Toward the future

We plan to continue deepening our analysis of the Group’s dependencies and impacts—as well as risks and opportunities—related to climate and nature, while taking into account international trends regarding nature-related metrics and targets. Furthermore, with a view toward aligning our reporting with SSBJ standards*, we have already incorporated some of the disclosure elements required by those standards and will continue to enhance our disclosures to ensure full compliance.

Transition plan for a decarbonized society

We formulated the long-term “GROUP VISION 2030” and set a long-term goal of reducing GHG emissions to net zero by 2050, for which we received SBT Net Zero certification in July 2024.
This report describes our transition plan, in line with the TCFD and other guidelines, which forms the basis for promoting decarbonization initiatives, such as renewable energy businesses and ZEB/ZEH building conversions.

• Refer to page 41 of “the 2025 Environmental Management Report”.

Here, we explain the board's oversight and management roles in relation to climate- and nature-related dependencies and impacts, risks and opportunities, and stakeholder engagement in nature-related issues.
Our climate- and nature-related governance structure incorporates targets that are approved and reviewed by the Board of Directors.

• Members of the Board of Directors require expertise in “environment and sustainability.”
• We have clarified the roles and responsibilities of management and are working responsibly on addressing important climate- and nature-related issues.

Roles of the main organization

• We established a Sustainability Committee, whose members are the President and CEO (chairman) and executive officers. We hold meetings twice a year with the Risk Management Committee to plan for important environmental management and sustainability issues, including climate change and nature-related issues.
• The Board of Directors receives reports from the Sustainability Committee on the important issues and monitors the progress through regular reviews.

Structure

• The Group Executive Committee and Sustainability Committee collaborate to formulate policies, goals (KPIs), and action plans for environmental management, overseen by the Board of Directors.
• The Sustainability Committee monitors progress against KPIs and manages performance.

The TNFD prioritizes effective and meaningful engagement with indigenous/local communities and affected stakeholders in assessing and managing nature-related dependencies, impacts, risks, and opportunities, and recommends disclosure under “governance.”
The development of real estate including housing, office buildings, commercial facilities, and leisure facilities requires a long time and involves many stakeholders. Therefore, appropriate decarbonization and nature positive measures must incorporate the concerns of stakeholders (design companies, construction companies, customers, etc.) and be implemented throughout the supply chain.
Below, we introduce key topics on human rights and stakeholder engagement related to our business and supply chain.

Respect for human rights

• We formulated the “Tokyu Fudosan Holdings Group Human Rights Policy” based on our belief that respecting the rights of stakeholders is essential for a successful business. We support international human rights standards, such as the Universal Declaration of Human Rights, and apply these when conducting business with our suppliers.
• We identified several important issues related to the rights of local and indigenous communities, as well as forced and child labor in our supply chain, and are working to establish a human rights due diligence system to mitigate the associated risks.
• For new projects and existing businesses, we strive to respect the rights of stakeholders and the local community by through continuous risk assessment and management.

Stakeholder engagement

• Our Group has a wide-ranging impact on local communities and shareholders through its business development. Therefore, we believe that close cooperation with various stakeholders is necessary and promote active dialogue with stakeholders, such as employees, local communities, business partners, and customers.
• Specific engagement initiatives and examples are introduced on the below.

Responses in procurement and supply chain

• We established not only “Compliance with and respect for international standards on human rights and labor” but also a Sustainable Procurement Policy covering various environmental considerations, including “Responding to climate change,” “Preserving biodiversity,” “Effective use of resources,” “Appropriate water use,” and “Appropriate forest resource use.” and are promoting initiatives to respond to climate change and conserve the natural environment throughout the supply chain.

Sustainable Procurement Policy

• In terms of decarbonization initiatives, the Sustainable Procurement Policy promotes the efficient use of fossil energy and adoption of renewable energy to reduce the impact of GHG emissions on climate change. Owing to these initiatives, we have been selected as a CDP Supplier Engagement Leader for the sixth consecutive year (see Supply Chain (Environment) for details).
• We have also adopted the following initiatives regarding nature conservation:

Supply chain due diligence

Engagement in urban area

• In the Greater Shibuya area, Tokyu Land Corporation, as the secretariat of the Shibuya Area Management Council consisting of the public and private sectors, is engaged in rule-making and community development activities related to community development, including the formulation of local rules for outdoor advertising, disaster and crime prevention measures, information dissemination, and the creation of a lively atmosphere.
• In particular, in terms of natural disasters, taking into account the unique characteristics of Shibuya Station, public and private sector stakeholders regularly conduct flooding drills at the underground plaza to guide customers to evacuate and confirm flood countermeasures in case of an emergency. In this way, we are creating a system and rules for peace of mind in the event of a natural disaster.
• The company has also concluded a “Comprehensive Collaborative Agreement on Local Disaster Prevention in Shibuya Ward” with Shibuya Ward, and is working to improve the local disaster preparedness in Shibuya Ward. Shibuya Ward, which aims to create a disaster-resistant Shibuya community, and the company, which aims to create a sustainable and diverse community, are working together in a public-private partnership to realize their mutual goals and enhance the value of the Shibuya community.

Engagement in rural areas

Overseas engagement

Strategy

Climate and Nature-Related Scenario Analysis

Since FY2018, the group has conducted scenario analyses while progressively expanding the scope of businesses covered in accordance with the materiality of climate change risks and opportunities. Currently, we have recognized the close relationship between climate change and nature and conducted an integrated scenario analysis that addresses both climate- and nature-related issues.

Integrated Climate and Nature Scenario Analysis (current analysis)

The assumptions applied in the climate- and nature-related scenario analysis are as follows.

Businesses Covered by the Scenario Analysis

Scenario analysis was conducted for the following businesses.

(However, the evaluation found no risk or opportunity items with significant impacts in the Property Management, Environmental Greening, or Brokerage and Rental Housing Services Businesses; thus, the disclosures of business-specific risks and opportunities for these businesses have been omitted.)

Time Horizons Assumed

Criteria for Likelihood and Impact

Criteria used to assess the likelihood and impact of risks and opportunities are defined as follows.

Approach for Evaluation and Disclosure

The likelihood and impact of anticipated risks and opportunities are assessed for both the group as a whole and each business, and items with high ratings in both categories are selected for disclosure. Therefore, the disclosure items differ depending on the business.
Qualitative assessments are also conducted for items in which establishing assumptions for quantitatively measuring the impact is difficult.

Both the transition toward a decarbonized society and increasing severity of climate change can affect the company’s future businesses; thus, scenario analysis was conducted using the following three scenarios, namely, the 1.5ºC scenario, which assumes the fastest transition toward a decarbonized society; the 4ºC scenario, under which the impacts of climate change become the most severe; and the 3ºC scenario, which represents an intermediate scenario combining the elements of both of the aforementioned scenarios.

★ :See “Glossary”

Considering nature-related risks and opportunities, the four scenarios presented in the guidance of TNFD scenario analysis were adapted to reflect the group’s businesses, and scenario analysis was conducted using the three scenarios shown within the boxed area. Scenario D was excluded from detailed assessment as both nature-related physical risks and transition risks are expected to be limited.

★ :See “Glossary”

• Climate change and nature are closely interconnected; thus, the group’s scenario analysis considered risks and opportunities by integrating the climate- and nature-related scenarios.

The following were identified, based on the scenario analysis, as the most important risks and opportunities for the group as a whole, together with their impacts on the group.

• The following were identified based on the scenario analysis as the most significant risks for the group as a whole, together with their impacts on the group.
  (Please refer to Glossary for an overview of the quantitative assessment methodology used for group-wide and business-specific risks and opportunities.)

• The magnitude of financial impacts represents the estimated effects of future profit calculated under each scenario to evaluate the risks and opportunities, and should not be interpreted as a forecast of future business performance.

• The following were identified based on the scenario analysis as the most significant opportunities for the group as a whole, together with their impacts on the group.

• The magnitude of financial impacts represents estimated future profit impacts calculated under each scenario for the purpose of evaluating risks and opportunities and should not be interpreted as a forecast of future business performance.

• The Group addresses the particularly important risks and opportunities as follows.
• Progress on these measures and targets, as well as the acquisition of necessary resources, is explained under “Metrics and Targets” and “Transition Plan Toward a Decarbonized Society.”

In response to climate change risks and opportunities, we incorporate the below considerations in our business strategy.

★ :See “Glossary”

We addresse the climate change risks and opportunities through financial planning as follows.

• As described earlier, the group has established strategic responses and secured the resources required to reduce particularly significant climate- and nature-related risks and maximize opportunities, thereby concluding that it possesses resilience to climate- and nature-related risks and opportunities.
• The future remains subject to the uncertainties described below; thus, the scenario analysis incorporated uncertainty to the greatest extent possible by drawing on scenarios published by international organizations, government roadmaps, and other sources. The group will continue reviewing its assessments in response to changes in social trends.

• The table below presents the key climate- and nature-related risks and opportunities identified based on the scenarios.
• Under Scenarios 1 and 2, transition impacts may become significant, including the risk of higher costs from tighter emission reduction policies involving ZEB regulations, lifecycle carbon, and carbon pricing, the cost of complying with greening regulations aimed at nature-positive initiatives, and risks and opportunities arising from changes in tenant demand for decarbonization and nature-positive performance.
• Under Scenario 3, no transition risks or opportunities are anticipated, but physical risks and opportunities may arise from factors such as changing tenant needs regarding disaster preparedness and BCP.
• However, uncertainty remains regarding the stringency of future regulations, changes in tenant needs, and extent of technological development in society regarding the environmental performance of buildings and low-carbon construction materials.

★ :See “Glossary”

• The table below presents the key climate- and nature-related risks and opportunities identified based on the scenarios.
• Under Scenarios 1 and 2, the impacts may become significant from transition risks, such as tighter emission reduction policies involving ZEH regulations, lifecycle carbon, and carbon pricing, as well as fluctuations in resource prices associated with nature-positive initiatives. Other potentially significant impacts include the risks and opportunities arising from the changes in customer demand for decarbonization and nature-positive initiatives, expansion of the renovation business, and opportunities created by the growing demand for housing that is in harmony with nature through features, such as greening.
• Under Scenario 3, no transition risks or opportunities are anticipated but physical risks and opportunities may arise from factors, such as changes in customer demand for disaster-prevention performance and Life Continuity Plans^★ (LCPs).
• However, uncertainty remains regarding the stringency of future regulations, changes in the housing market, and extent of technological development in society regarding the environmental performance of buildings and low-carbon construction materials.

★ :See “Glossary”

• The table below presents the key climate- and nature-related risks and opportunities identified based on the scenarios.
• Under Scenarios 1 and 2, opportunities arising from the expansion of the renewable energy market may increase significantly, business risks resulting from regulatory changes are also anticipated.
• Under Scenario 3, impacts, such as lower power generation efficiency caused by rising temperatures and restrictions on outdoor work, may occur.
• However, uncertainty remains regarding the future market expansion, content and stringency of regulations, and extent of the impacts of climate change.

• The table below presents the key climate- and nature-related risks and opportunities identified based on the scenarios.
• Under Scenarios 1 and 2, transition risks may arise, including higher development costs associated with the reduction of GHG emissions and stricter land development regulations aimed at nature-positive initiatives. Opportunities may also be created by changing the customer demand for decarbonization.
• Under Scenario 3, risks and opportunities may emerge as customer needs change in response to more frequent natural disasters and rising temperatures.
• However, uncertainty remains regarding the future stringency of regulations and extent of market changes.

• The table below presents the key climate- and nature-related risks and opportunities identified based on the scenarios.
• Under Scenarios 1 and 2, transition risks may arise, including higher costs associated with the reduction of GHG emissions and stricter resource circulation regulations aimed at nature-positive initiatives, together with opportunities created by changing the customer demand for decarbonization and nature-positive practices.
• Under Scenario 3, physical risks and opportunities may arise from the impacts of climate change, including changes in snowfall at ski resorts and declining attractiveness of resort destinations.
• However, uncertainty remains regarding the future stringency of regulations, changes in customer demand, and severity of the impacts of climate change.

Nature-related analysis based on the LEAP approach

The “Strategy” of the TNFD recommends characterizing the nature-related dependencies, impacts, risks, and opportunities; their impacts on the company's business, strategy, and financial plan; the resilience of the strategy based on relevant scenarios; and priority areas in business activities and value chains.
This report examines the following aspects of the Group's business operations.

Using TNFD classification as a reference, we examined a summary of the nature of dependencies and impacts according to business and value chain steps and their qualitative importance. Additionally, using the sector-specific ratings in the tools ENCORE, which was developed by the UN Environment Programme (UNEP), and SBTs for Nature^★ as a reference^*1, we sorted out the importance of dependencies and impacts according to four steps between Very High and Low. The results of that analysis are as follows.^*2

Impacts

Dependencies

• “Terrestrial ecosystem utilization” was especially high from aspects such as land modification/occupation, etc. upon real estate development and operation.
• The likes of water use and the introduction of alien species was also high at the stages of GHG emissions, waste emissions and operation.
• In addition to supply services for the likes of water resources and building materials upon operation, cultural services such as landscape improvement and comfort were also high.
• At hotel and leisure facilities, the likes of water supply, pollinator and climate regulation were high at the production stage for ingredients, etc. at the upstream of the value chain.

1. *1For ratings at the stage of building and development under all businesses and at the stage of operation for properties other than the Renewable Energy and Hotel and Leisure Businesses, we examined importance while making supplements and adjustments as necessary based on “real estate” in each tool.
   For ratings at the stage of operation under the Renewable Energy Business, we used “renewable energy” in each tool as the basis. For ratings at the stage of operation of leisure facilities, we used “hotels, resorts and cruises” in each tool as the basis. For ratings at the stage of production of biomass fuel, ingredients, etc., we used subindustries under “forest products” and “agriculture” in each tool as the basis.
2. *2With regards to the segment “Real Estate Agents,” given that the importance of dependence and impacts at the stage of direct operation is not high and that indirect dependencies and impacts are similar to other real estate businesses, said segment has been omitted from this table.

★ :See “Glossary”

We believe that the importance of nature from the development to operation stages is particularly high within the value chain. Accordingly, we considered priority areas based on the 267 major locations owned and operated by our company (offices and commercial facilities, hotels, leisure facilities, renewable energy facilities, etc.; March 2024). We considered priority areas based on their ecological sensitivity (see the metrics in the table below), as presented by the TNFD, as well as their importance in terms of our dependencies, impacts, and risks and opportunities.

Metrics used in assessment and overview of results

★ :See “Glossary”

For the priority areas of the Greater Shibuya Area, Tokyu Resort Town Tateshina, and Palau Pacific Resort, we performed a more detailed examination of dependencies and impacts on nature and accompanying nature-related risks and opportunities based on the LEAP Approach presented by the TNFD. More specifically, we examined the below information.

Greater Shibuya Area (Shibuya Ward, Tokyo)

Tokyu Resort Town Tateshina（Chino City, Nagano）

Palau Pacific Resort (Republic of Palau)

We performed a detailed examination of the natural state of the Greater Shibuya Area (described below) to identify the major dependencies and impacts throughout the value chain in urban development businesses, as shown in the figure below.
Nature may experience both negative and positive impacts, and we also depend on it in various ways.

Dependencies and impacts of nature in the value chain
*Dependencies and impacts in bold are considered particularly important

1. *1Regulating and maintenance services: Services that maintain the environment by promoting biodiversity through initiatives focused on climate adjustment, mitigating local disasters, controlling soil runoff, and controlling harmful organisms and diseases within the ecosystem.
2. *2Cultural services: Services associated with culture that humans obtain through contact with nature and that are influenced by aesthetic, spiritual, and psychological aspects.

Ecosystem integrity

Green space area ratio of entire commercial district in greater Shibuya area

Analysis by Think Nature Inc.

Biodiversity importance

Between FY2016 and FY2018, three parties, TOKYO CITY UNIVERSITY and Group members ISHIKATSU EXTERIOR INC. and Tokyu Fudosan R&D Center Inc., performed a collaborative investigation and research²⁾ on the ecosystem in the greater Shibuya area. The greater Shibuya area is surrounded by large-scale green spaces that include Meiji-jingu Shrine/Yoyogi Park, Shinjuku Gyoen National Garden and the Akasaka Estate. Meanwhile, the downtown area that has large-scale green spaces surrounding it is widely dotted with smaller pockets of green. This and other characteristics make it an area that coexists with nature, a rarity for a city center.
It is believed that new and endangered species as well as plant and animal species not commonly found in urban areas inhabit those large-scale green spaces. The greater Shibuya area is therefore believed to be a key region in forming an ecological network that links together such large-scale green spaces.

Investigation of growth / habitat services in greater Shibuya area

As part of the collaborative research³⁾ conducted by TOKYO CITY UNIVERSITY, ISHIKATSU EXTERIOR INC. and Tokyu Fudosan R&D Center Inc., an investigation of butterfly species was conducted in the greater Shibuya area that targeted three biodiversity-considerate properties with rooftop gardens placed and their peripheral area. As a result, the presence of butterfly species was verified in the rooftop green spaces of each of those properties. Of particular note is how it became clear that building greening by the Group may be functioning as part of an ecosystem network connecting Meiji-jingu Shrine to Harajuku and Omote-sando to exert a positive impact on peripheral ecosystems through providing habitats.

Ongoing implementation of biological monitoring in “Omohara Forest”

At “Tokyu Plaza Omotesando “Omokado”,” which is located in the greater Shibuya area, monitoring studies of bird and insect studies at the “Omohara Forest” rooftop garden have been conducted yearly since FY2012 (except for certain periods such as the COVID-19 pandemic) to assess changes in the inhabiting and flying situation of living creatures there⁴⁾.

Ongoing implementation of biological monitoring in greater Shibuya area

List of bird species over time and observation photographs (verification survey)

Among the impacts on nature with a high degree of importance, the impacts on the ecosystem based on land occupation and building greening of Group properties were quantitatively analyzed with the cooperation of Think Nature Inc.

Biodiversity regenerative effects

Based on the relationship between planted tree species and the birds/butterflies that use them, the percentage by which living creatures that inhabit the inside of a 1-km grid at the construction site increased or decreased before and after building was calculated for each number of species and populations across three classification groups, with the average of all six percentages used in results.

The below diagram indicates the approach behind Think Nature Inc.’s analysis methods.

Source: Think Nature Inc.

Contributions to nature positive in greater Shibuya area

Since the 1980s and particularly from 1990 up through the 2000s, the green space area ratio had been trending downwards before and after building. However, for the Group’s 39 properties overall, the ratio has been trending above the average for the entire commercial district. Furthermore, since 2010, which represents a global turning point that included the holding of the 10th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP10), biodiversity loss was reversed to put nature on a path to recovery (nature positive).

Regarding biodiversity regenerative effects, said effects before and after building were positive at 15 properties out of all 39. In particular, biodiversity regenerative effects at properties completed in FY2012 and beyond are high. We believe these are contributing to the recovery of biodiversity in the greater Shibuya area as a whole.
In the Group’s forte of planning communities that coexist with local communities, particularly those focused on target facilities under our Urban Development Business, we believe that engaging in development and operation that achieve a harmony between the securing of the quality and quantity of green space and the comfort of community visitors and facility users have linked to the high biodiversity regenerative effects shown in recent years.

Making the greater Shibuya area an environmentally advanced city from the aspect of biodiversity as well

Evaluation of ecological network formation

With the help of Regional Environmental Planning, Inc., an environmental consulting company that assists with biodiversity initiatives, we analyzed the current situation of the formation of an ecological network in the greater Shibuya area and the direction of that formation.
Based on analysis of the current situation surrounding topography and green space, it was verified that the topography of the greater Shibuya area has the lowlands of the valleys of the Shibuya River and Meguro River intertwining with the Musashino Plateau, and that much green space remains on slopes facing the valley formation and valley areas.
Additionally, the Company’s properties are located at the red circles on the map to the right, which also constitute locations where fellow properties of ours are in proximity to each other or are concentrated.

We have found that focusing on the following three areas will likely prove beneficial for the purpose of further enhancing our future ecological network,

1. ① Locations with large amounts of green are in proximity to each other
2. ② Valleys, slopes along the valleys, etc. are topographically connected
3. ③ Target properties are in proximity to each other/concentrated together

We plan to give consideration to the maintenance of green space according to the characteristics of the site, and will continue to conduct biological monitoring.

Importance of climate regulation, disaster mitigation, etc. (regulating and maintenance services in cities)

In the National Biodiversity Strategy and Machizukuri (Urban Development) GX Strategy by the Japanese government and the Regional Biodiversity Strategy by the Tokyo Metropolitan Government, functions such as the mitigation of the heat island effect through nature and the reduction of flood damage are emphasized as key ecosystem services in cities. From the standpoint of dependencies, these ecosystem services for disaster mitigation and climate regulation are believed to be crucial. According to the Ministry of Land, Infrastructure Transport and Tourism, while the area surrounding the greater Shibuya area (the area circled on the map) is an origin of heat, it is believed to be a region that can be expected to drop in temperature should green space preservation and greening measures be comprehensively taken.
Additionally, under Shibuya City’s “Green Development Policy,” it is established that forming connections with large-scale green areas through building greening and other means contributes to the creation of cool spots that serve to mitigate the heat island effect in cities. This is believed to be important from the aspect of exerting a positive aspect on such regulation services as well as the aspect of dependencies.

Functions for nature-based stress mitigation and comfort (cultural services)

As part of the new “GREEN WORK STYLE” that it is promoting at its office buildings, the Group performed scientific verifications of the impacts and effects that green (vegetation and nature) have on people. For example, following a verification of the effects of breaks taken in rooftop spaces containing green, we found that stress levels after taking breaks where green was present were 6.0 points lower than those for indoor locations with no green present, and that levels of concentration rose considerably as well.
Based on these results, we can also conclude that in cities, the greater Shibuya area included, the importance of cultural services is high from the aspects of the effects on wellness in the form of better landscapes, stress mitigation and comfort; improved productivity coming from the likes of inspiration, invigorated communication and boosts in motivation for working individuals; and the appeal and higher asset value of office, commercial and other facilities.

Based on our nature-related dependencies and impacts, we examined the risks and opportunities related to our urban development business, while also referring to external information such as social trends and policy directions. We anticipate physical risks such as deterioration of the scenery and decreased comfort due to the decline in important ecosystem services, and transition risks due to changes in regulations and market environments. However, we also identified many nature-related opportunities.

"Tokyu Resort Town Tateshina" is a large-scale resort complex located almost in the center of Tateshina Plateau in the northeastern part of Chino City, Nagano Prefecture, at an elevation of 1,100–1,800 m and a total site area of approximately 660 ha (approximately 140 Tokyo Domes' worth). The complex includes Tokyu Harvest Club Tateshina, a members-only resort hotel, as well as a hotel with 250 rooms, golf courses (18 holes), ski areas, vacation homes (detached houses, resorts, villas), approximately 2,300 plots, a hot springs facility, restaurants, and shops. It was constructed in 1974, with the opening of the Tateshina Tokyu golf course and the first phase of sales of vacation homes starting in 1978, after which the ski area, tennis courts, and hotels were opened. There are several facilities and services where customers can enjoy abundant nature, including a diverse array of activity, healing, and workcation options.
Visitors can see the Yatsugatake mountain range from within the town. Summers are comfortable, with minimum temperatures sometimes even dipping below 10 ºC from July to August. The refreshing, low-humidity climate provides a natural environment suited to avoiding the heat.

As shown in the figure below, business at “Tokyu Resort Town Tateshina” has various nature and ecosystem service dependencies. Nature and its bounties are particularly important in terms of operation. Both negative and positive nature impacts are given.

Based on the natural state of Tokyu Resort Town Tateshina, described later, we identified the major dependencies and impacts throughout our business and value chain, as shown in the figure below.
There is the potential for both negative and positive impacts on nature, and we also depend on nature in various ways.

Dependencies and impacts on nature in the value chain
*Dependencies and impacts in bold are considered to be particularly important

"Tokyu Resort Town Tateshina" is a large-scale resort complex that includes a hotel, golf courses, ski areas, and vacation homes. This site also includes a vast forest spanning approximately 588 ha, of which over 30% are larch forests planted for lumber in the post-war period. The large presence of oaks, such as water oak, is a characteristic of the forest.

*Forest area and composition tabulated from forest registers owned by our company or published by Nagano Prefecture.

“Tokyu Resort Town Tateshina”, which is surrounded by abundant nature, has various natural resource dependencies as a tourism attraction.
Therefore, a detailed analysis on the nature dependencies of “Tokyu Resort Town Tateshina” as a tourism resource was conducted in collaboration with Think nature Inc. and centering on an analysis of species.

Analysis result：Larch forest

“Tokyu Resort Town Tateshina” has abundant larch, even at a national level, to the extent that the site could be called the center of the larch distribution area. Larch is an endemic species in Japan and is the only deciduous conifer; hence, fresh greenery can be enjoyed in the spring, and fall foliage can be enjoyed in the autumn. Characteristic vegetation in larch forests also included plants that bring color to the foothills, such as panicle hydrangea, wild vine, and the beautiful flowering goldenrod. These abundant vegetation and their resulting beautiful scenery increase the appeal of “Tokyu Resort Town Tateshina” as a tourist site and support the business in terms of the maintenance and increase of the exchange population of visitors and related populations.

Source: Think Nature Inc.

The following characteristics were found for Mizunara (Quercus crispula) and Japanese stone pine (Pinus pumila). These species are abundant and create beautiful scenery that enhances the tourist appeal of Tokyu Resort Town Tateshina, and support the business in terms of maintaining and increasing the number of visitors and related populations.

Mizunara

Although not particularly abundant in Chino City, Mizunara is abundant in Tokyu Resort Town Tateshina. Mizunara is among a community of plants with rich autumn foliage, such as maple trees and oaks.

Japanese stone pine

Areas with high habitat suitability are distributed to the east of Tokyu Resort Town Tateshina, consistent with the ridgeline of the Yatsugatake mountain range. Chino City is characterized by an abundance of Japanese stone pine, an alpine vegetation, which occurs nationally. The lingonberry-Japanese stone pine community is rich in lingonberries and other plants with rich autumn foliage, such as Erman's birch. This type of alpine vegetation is thought to attract climbers.

Among the impacts due to the business, the impact of land alteration and occupation from facility development and operations was evaluated as an important impact that may influence ecosystem services and change forest ecosystems and scenery. Specifically, a quantitative analysis of the change in forest areas since the start of development by our company was conducted in collaboration with Think Nature Inc..

• Target: Tokyu Resort Town Tateshina
• Method: High-accuracy aerial images from 1973 and 1975 and satellite images from 1985 onwards were used alongside machine learning* with AI to provide an estimated classification of forests and non-forests and the trends in forest area change were quantitatively analyzed.

Source: Think Nature Inc.

Machine learning: Method of data analysis where a computer uses a large quantity of data to learn rules and make predictions and decisions based on those results.

The change in forests over time is as shown in the figures below. Around 1975, at approximately the time of land acquisition, there were many non-forest areas centered in the north of the site. The state of the forest changed due to forest recovery, as well as the development of facilities and vacation homes.

Source: Think Nature Inc.

Results of analyzing the forest state showed that the change in forest area percentage in Tokyu Resort Town Tateshina was as follows: although the forest area has declined due to the construction of golf courses and vacation homes, the overall trend is toward recovery, and the current status is that the area is in its most recovered state, as well as the fact that the business operations, which have simultaneously maintained and recovered forests, are contributing to nature positive as a result of our company’s resort development and operations.

Changes in forest area percentage
(Evaluated from aerial and satellite images)

Source: Think Nature Inc.

Our group has formulated a forest management plan^★ at Tokyu Resort Town Tateshina in 2018 based on the forest management plan of Chino City and is engaged in thinning- and reforestation-based forest management. Meanwhile, given the increasing age of the trees that constitute the forests, our group is considering forest management that incorporates not only thinning and reforestation, but also partial clear-cutting of old-growth larch forests and their reforestation. Therefore, a quantitative evaluation was conducted on the impact of future forest management on biodiversity.
Specifically, a quantitative analysis was conducted in collaboration with Think Nature Inc. of the “number of species”, which is an indicator of the state of forest biodiversity, while considering the forest vegetation and management state to examine shifts from the past and the impact of forest management on the number of species.
A comparative analysis was conducted on a pattern of forest preservation activities where 2 ha of old-growth forest is clear-cut every year and reforested, and a pattern of no thinning or clear-cutting and leaving the process to natural transitions, for a larch forest.

★ :See “Glossary”

Overview of quantitative analysis

• An analysis was conducted on how the number of species changes in the future due to the following two management method patterns in a larch forest based on biodiversity big data of Think Nature Inc. :

This table can be scrolled horizontally

Pattern	Assumed future management	What will be learned
1. Forest management: Clear-cutting of some old-growth forests and reforestation, forming a mixed broadleaf forest	Clear-cutting of 2 ha of old-growth forest (at least 80 years old) every year and planting broadleaf trees to slowly transition to mixed forest	Impact of small-scale clear-cutting and reforestation over long-term on biodiversity
2. No forest management: Left to natural transition (left alone)	No forest management (no thinning or clear-cutting) and leaving to natural transition	Impact of absence of human influence and leaving forest as is on biodiversity

• * Felling: cutting down unnecessary trees.
• * Thinning: felling some trees depending on crowding extent to reduce competition between trees being grown.
• * Clear-cutting: felling a certain group of trees that constitute a forest all at once.

Evaluation of biodiversity impacts through forest management

Normally, the aging of forest trees over time decreases the number of species in a forest. Although forests have been created with abundant fall foliage and excellent scenery due to our company’s development that limits deforestation and our planting and preservation of larch forests since the start of development, there has been progressive aging of forests, with an average age of at least 80 years, entering a phase of declining number of species (figure below, until 2023).
Meanwhile, as shown in the figure below, in the larch forest, the management method of clear-cutting and reforesting some old-growth trees to form a mixed broadleaf forest (pattern 1) could suppress the decline in the number of species more than the method of not conducting forest management and leaving the process to natural transitions (pattern 2) (figure below, from 2023 onwards). These results will also be used as a reference to strive toward the preservation of biodiversity in the future through appropriate forest management, such as the continuation of thinning, but also partial clear-cutting and reforestation.

Changes in number of species (in larch forest)

Source: Think Nature Inc.

Average number of species: value determined by dividing the larch forest into 30 m square grids (frames), analyzing the number of species contained within each grid, and calculating a simple average for all grids.

The amount of CO₂ absorption through the forest in “Tokyu Resort Town Tateshina” was calculated to determine the “forest carbon absorption function”, one of the dependent nature functions.

Overview of visualization sheet

CO₂ absorption amount by forests (single year)

Calculated from amount of CO₂ emissions per household from “Japan Greenhouse Gas Inventory (FY2021)”

Forest CO₂ absorption amount (cumulative)

Tokyu Resort Town Tateshina receives its water from rivers and groundwater, which is maintained by natural forests. Forests have multiple functions, including carbon absorption, groundwater recharge, and surface runoff control, and have been integral to the sustainable development of Tokyu Resort Town Tateshina over the last 50 years. Tokyu Resort Town Tateshina not only purifies the water it uses but also conserves forests and water resources through proper forest management, including thinning. Owing to its dependency and impact on forests, Tokyu Resort Town Tateshina has important impacts on the water cycle.

Tokyu Resort Town Tateshina is a self-sufficient resort facility that has its own water supply. It draws water from multiple natural water sources within the town to supply the entire town with tap water. The groundwater recharge function of the town's forests plays an important role in securing and supplying sustainable water resources.
The relationship between the forest groundwater recharge function and town's overall water intake was quantitatively assessed using the water cycle simulator “GETFLOWS” for the forests within the town with the cooperation of Geosphere Environmental Technology Corp., a company that performs comprehensive watershed water-cycle analysis and provides scientific solutions to water problems.

Analysis results

• The amount of water recharge in the target area varied depending on the topography, precipitation, tree species, and other forest conditions (including evapotranspiration).
• The total amount of water recharge was 5.32 million m³/year. The annual water usage in Tokyu Resort Town Tateshina was approximately 160,000 m³ (FY2023 results), which is only 3.1% of the total recharge volume, and all water usage within the town was supplemented through recharge within the town, indicating the high sustainability of the groundwater resources.
• If forest cover decreases, surface runoff will increase and reduce the groundwater recharge (storage capacity). Tree thinning is beneficial to properly maintain the soil and promote rainwater infiltration. These findings suggest that water recharge and usage within the town can be sustainably used in various business activities while properly managing and protecting the forests. The groundwater recharge function also contributes to flood mitigation, groundwater storage, and water purification, and is thought to reduce natural risks.

Source) Geosphere Environmental Technology

Forest soil plays an important role in groundwater recharge and forest ecosystem conservation, while surface runoff has a negative impact on groundwater recharge, water quality, and ecosystem health.
We quantitatively assessed the extent to which surface runoff is controlled by the forests of Tokyu Resort Town Tateshina.

Method

We used the universal soil loss equation (USLE), a method commonly used to predict surface runoff amounts, to analyze the difference in surface runoff between forests and barren land.

USLE

• Developed mainly by the US Department of Agriculture and adopted as the agricultural land conservation standard. It is also included in the “Land Improvement Planning Guidelines” in Japan.
• This equation assesses the average annual amount of surface runoff based on the rainfall, soil characteristics (coefficients related to runoff such as soil permeability), slope length and inclination, and surface vegetation.

Analysis results

Based on our analysis of Tokyu Resort Town Tateshina, we examined the risks and opportunities in the hotel and leisure business. We anticipate physical risks such as decreased appeal as a resort and tourist destination due to the deterioration of ecosystem services, and transition risks due to changes in regulations and market environments, but we also identified many nature-related opportunities.

Palau Pacific Resort (PPR) is a full-service resort hotel developed in the Republic of Palau in harmony with environmental conservation.

Republic of Palau

The Republic of Palau comprises more than 200 islands and is located at the western edge of the Micronesian region in the Pacific Ocean. After officially gaining independence from foreign rule in 1994, Palau’s primary industries have been tourism, fisheries, and agriculture. The resort destination is accessible by a direct flight of approximately four and a half hours from Japan, and there is no time difference. Encircled by stunning coral reefs, the surrounding seas are internationally recognized as one of the world’s most dynamic diving destinations, supporting a wide variety of marine species.

About “PPR“

Situated in a prime setting overlooking the World Heritage Site known as the Rock Islands Southern Lagoon, this authentic beach resort allows guests to fully experience Palau’s natural environment and culture.
PPR covers roughly 27 hectares, provides 172 guest rooms, the highest number in Palau, and diverse accommodation options, including five overwater bungalows and seven pool villas.
Guests can enjoy activities such as snorkeling, stand-up paddleboarding, kayaking, and others along the approximately 250-m private beach facing the Pacific Ocean. The grounds also include forested areas inhabited by more than 35 bird species, including endemic and endangered birds, offering opportunities for birdwatching and nature walks.

Beginning in 1956, when Tokyu Fudosan Corp.’s first president, Noboru Goto, became the first Japanese civilian to visit Palau after the war, we have continuously developed our business in Palau, often called “the last paradise on earth,” while safeguarding its abundant natural environment, history, culture, and local communities.

The figure below illustrates dependencies and impacts on nature. Although our activities may generate both adverse and beneficial effects on nature, our operations also rely on natural systems in multiple ways.

Dependencies and impacts on nature across value chain * Items shown in bold are regarded as especially significant.

“Biodiversity importance” was assessed to determine the importance of the local area including PPR.

Assessment method

In cooperation with Think Nature Co., Ltd., we analyzed conservation priority as an indicator of biodiversity importance.

Conservation priority

The assessment area was divided into grid units; for each grid, the risk of species loss was quantified on a scale from 0 to 1, where 1 represents a rich habitat with the highest risk of loss. A conservation priority value closer to 1 indicates a greater number/higher presence of species facing extinction.
This analysis used large-scale species distribution data maintained by Think Nature Co. Ltd.

Scope of analysis

The assessment included the PPR site as well as the adjacent sea area in front of the resort, specifically the Arakabesan Marine Conservation Area.

1. ^＊1Refer to Photo credit for the image source.

• The grid divided the target area into square units of a fixed size. Biodiversity assessments were conducted for each of these units.

The conservation priority analysis for both land and sea indicated that the terrestrial and marine areas possess extremely high biodiversity conservation value, placing them within the top 1% worldwide in terms of biodiversity importance.
Relative to the global scale, the area supports a large number of species both on land and in the ocean, including many facing a high risk of extinction.

Analysis of Think Nature Co. Ltd.’s biodiversity big data showed that, across all six terrestrial biological groups, biodiversity importance ranked among the highest globally, with especially large numbers of freshwater fish and reptile species, as well as many endemic bird species.
The presence of bats and birds listed in the Red List along with the nature-conscious development at PPR and the restoration of natural forests may contribute to this high level of biodiversity.

Source) Think Nature Co., Ltd.

1. ^＊2-6：Refer to Photo credit for the image source.

• Palau endemic: Species found only in Palau

Analysis of Think Nature Co. Ltd.’s biodiversity big data indicated that the sea area ranked among the highest worldwide for both biodiversity importance and number of species across all eight biological groups assessed. Species listed on the Red List include marine mammals such as Dugong dugon and Physeter macrocephalus, along with Eretmochelys imbricata and Tridacna gigas. As described later, efforts under “PPR” to conserve and restore marine and terrestrial ecosystems may contribute to the high level of biodiversity.

Source) Think Nature Co. Ltd.

1. ^＊7-12：Refer to Photo credit for the image source.

Over 40 years ago, long before sustainability became a widely recognized concept, PPR was guided by the principles of “achieving balance between nature and development” and “contributing to the local community while being embraced by local residents.” These ideas are reflected in the words of Tokyu Fudosan Corp.’s first president, Noboru Goto, who said to “not build anything taller than a palm tree” and “engage in work that genuinely benefits local people”.

Terrestrial Development aligned with nature based on comprehensive environmental surveys

During the war, the PPR site contained military facilities. Instead of clearing forested areas, the current resort was constructed on the former military site, thereby limiting changes to the surrounding natural environment.
Before development began, detailed environmental surveys focusing on vegetation and terrestrial ecosystems were conducted. The findings of these surveys guided extensive preservation of existing trees, along with the cultivation and planting of native plant species. For instance, a “Calophyllum inophyllum/Casuarinaceae community,” unique to sandy coastal areas, was identified on the beach in 1979 and remains intact today. Additionally, part of the northeastern section of the property has been designated as a water source protection zone and is also utilized as a trekking area.

Marine Comprehensive beach restoration, coral transplantation, and initiatives toward marine conservation area designation

Before development, the sea area in front of the resort was affected by sediment runoff from land, creating conditions unsuitable for coral growth.
Guided by environmental surveys, large-scale beach restoration efforts, including coral transplantation, were implemented, leading to significant environmental improvements and the successful recovery of coral in the adjacent sea area in front of the resort.
Starting in the late 1990s, the resort began releasing juvenile endangered Tridacna gigas into the sea with guests, while also carrying out educational programs for both residents and visitors on restrictions against collecting living organisms.
These conservation initiatives enhanced the marine environment and prompted a request from the state government for marine conservation measures. Consequently, in 2002 the sea area in front of the resort was designated as the Arakabesan Marine Conservation Area, marking the first such designation for a private beach.

Guided by the objectives of contributing to the local community and gaining acceptance from local residents, we focused on community contributions through designs that are in harmony with local culture and traditions, as well as through employment creation and human resource development.

Design reflecting local culture, traditions, and natural environment

The buildings are limited to a maximum of two stories, remaining lower than surrounding palm trees, and feature roofs inspired by the traditional Palauan abai, or community hall. Existing trees were retained, and the architectural design harmonizes with the surrounding ocean and greenery.
By incorporating traditional architectural elements along with culturally symbolic buildings and sculptures, the design enables guests to experience Palau’s culture, traditions, and natural landscapes. This shared appreciation also fosters pride among employees, which contributes to higher-quality service.

Contribution to local community

To assess the project’s environmental impact, we conducted a quantitative analysis of changes in the proportion of forested areas before and after development, with the support of Think Nature Co., Ltd., and qualitatively confirmed land use changes using aerial photographs and vegetation survey data from the pre-development period.

Methods The PPR site was examined for 1976, 2009, and 2023, for which aerial photographs and satellite images were available. Using machine learning, images were classified into forest, grassland, and other land types such as built-up areas, and the extent of forest and grassland coverage was calculated.

Source) Think Nature Co. Ltd.

Quantitative analysis showed that, although the area used for buildings increased as development progressed, a far greater area of forest has been restored. Since the resort opened, the proportion of forested area has grown approximately 1.4-fold. Development and operations guided by the principle of harmony with nature support the conservation and restoration of natural forests, wildlife habitats, and ecosystem services.

Source) Think Nature Co. Ltd.

Palau possesses some of the most abundant coral reef systems in the world, which draw many visitors and represent important tourism resources. Coral reefs function as biodiversity-rich “oases” and have high biodiversity importance. They also serve as important natural assets upon which PPR’s business depends. Accordingly, we conducted a quantitative assessment of coral reefs using Think Nature Co. Ltd.’s biodiversity big data.

Assessment of coral species counts

Source) Think Nature Co. Ltd.

Assessment of coral coverage

Source) Think Nature Co. Ltd.

As part of assessing the impact of our business activities on nature, we conducted a quantitative analysis of coral coverage trends in collaboration with Think Nature Co. Ltd. and reviewed the findings of on-site monitoring conducted within marine conservation areas.

Target

Marine conservation area in front of resort (Arakabesan Marine Conservation Area) and surrounding sea areas of Rock Island

Method

• Quantitative analysis by Think Nature Co. Ltd.: Machine learning techniques were used to estimate changes in coral coverage based on satellite imagery and field survey data collected since 1994
• Verification of coral conditions using survey results from Arakabesan Marine Conservation Area

Trends in global average live coral coverage
(blue line: coral coverage, black line: sea surface temperature anomaly, red band: periods of rapid increases in sea surface temperature anomaly)

Source) ICRI, GCRMN, Australian Institute of Marine Science, UNEP, “Status of Coral Reefs of the World 2020”

• Coral coverage estimates are derived from data provided by more than 300 institutions worldwide. The blue line indicates the estimated global average coral cover, with 80% confidence intervals shown in dark blue and 95% confidence intervals in light blue.
• Sea surface temperature anomaly refers to the deviation from average sea surface temperatures. The red banded areas indicate periods of rapid increases in the sea surface temperature anomaly.

The coral coverage trends are presented below. Since development began, PPR has undertaken initiatives such as beach enhancement, coral transplantation, and the designation of a marine conservation area. These efforts led to a steady increase in coral coverage up to around 2012. However, coral coverage can fluctuate due to multiple factors, and a slight decline has been observed in line with global trends caused by external factors such as rising sea temperatures, the approach of Typhoon Haiyan in 2013, extremely low tide events, and predation by coral-feeding organisms.
Coral coverage remains a high priority, and we have initiated a large-scale coral reef restoration project to restore coral abundance, a critical resource supporting our business activities.
Monitoring surveys conducted in the Arakabesan Marine Conservation Area in front of the resort showed an increase in the settlement of new coral individuals, known as larval recruitment*, indicating that coral coverage may further recover as these larvae grow.

Changes in coral coverage and coral larval recruitment density

Source:  Coral coverage trends for the Rock Islands and PPR, Think Nature Co. Ltd.
Global average coverage based on ICRI, GCRMN, Australian Institute of Marine Science, and UNEP, “Status of Coral Reefs of the World 2020”
Coral larval recruitment density: PICRC (2025)^9）

• Settlement of new coral individuals referred to as larval recruitment

Coral reef coverage is declining worldwide. Recognizing the importance of coral reefs for both biodiversity and PPR’s business, we are collaborating with partners to conserve and restore these ecosystems through a range of initiatives.

Tridacna gigas inhabit coral reef ecosystems and are closely associated with corals, as both maintain symbiotic relationships with photosynthetic algae known as zooxanthellae.
Since 1998, PPR has been releasing juvenile Tridacna gigas, an endangered species. Monitoring surveys conducted in the marine protected area in front of the resort have indicated that macroinvertebrate populations*, including Tridacna gigas, are increasing, suggesting that protection and restoration efforts have been effective.

Macroinvertebrates are large animals that do not have a backbone.

Dugong dugon are globally endangered, and Palau supports the only independent population within Micronesia. The seagrass meadows that form Dugong dugon habitats are also critically important for many other marine species. Accordingly, Dugong dugon serve as indicator species for the health and biodiversity of coastal environments.
We assessed habitat suitability in terms of the survival of Dugong dugon in the surrounding waters.

Methods

We used information on Dugong dugon distribution, environmental data such as water depth, and satellite imagery to identify suitable Dugong dugon habitats and calculate habitat suitability for the sea area surrounding “PPR.”

Dugong dugon in Palau

Source) Think Nature Co. Ltd.

Dugong dugon and seagrass beds

Dugong dugon are obligate herbivores that rely almost entirely on seagrass for food, making seagrass beds their sole feeding grounds. The existence of dense seagrass beds is therefore essential for survival.
Seagrass beds are areas of shallow seafloor where seagrass grows in meadow-like formations. They provide abundant food and habitat for a variety of marine organisms, including Dugong dugon, and represent a critical ecosystem for the survival of many species.

1. ^＊10：Refer to Photo credit for the image source.

The southeastern region of Palau showed the highest suitability for Dugong dugon, with the area surrounding “PPR” ranking among the most consistently suitable locations in the country. These habitats support not only Dugong dugon but a variety of marine organisms, including fish and crustaceans, as reflected in the rich and diverse marine ecosystem in the surrounding seas of the resort.

Research from literature also shows that Palau has avoided accidental capture by fishing, seagrass bed degradation, and water quality decline due to urbanization, key factors causing Dugong dugon population declines elsewhere.
These findings suggest that resort operations, including “PPR,” have contributed to Palau's economic growth, and that the country’s tourism-focused development has supported the preservation of natural environments that form the foundation of the country’s economy, thereby maintaining rich marine ecosystems suitable for Dugong dugon habitats.

Source) Think Nature Co. Ltd.

Qualitative and quantitative assessments of terrestrial and marine ecosystems indicated that PPR’s activities positively impact both terrestrial and marine ecosystems. Preserving terrestrial ecosystems helps enrich marine ecosystems through the ecological connection between land and sea, known as an ecotone.

Qualitative and quantitative analyses of PPR’s operations and its connection with nature showed that the resort has adhered to its original vision and has operated for more than 40 years while respecting both the environment and local communities, highlighting its long-term contributions to nature-positive initiatives.

An assessment of potential nature-related risks and opportunities in the marine hotel and leisure industry, with a focus on “PPR,” showed that, although there are expected physical risks, such as a reduction in resort attractiveness and tourist appeal due to declining ecosystem services, as well as transition risks arising from regulatory and market changes, numerous nature-related opportunities may emerge.

Risk and impact management

• An important theme in our long-term vision (materiality) is “Create a sustainable environment,” according to which we have incorporated environmental management in company-wide policies and organized the business opportunities and risks throughout the value chain.

  Understanding, integrating, and consolidating social issues

  Confirming stakeholder expectations

  Identifying high-priority management issues

  Identifying materiality, opportunities, and risks

• We recognize the important impacts of climate change and its mitigation on our business activities, the core of which is real estate. In response, the company conducted scenario analysis encompassing its four business segments (Urban Development / Strategic Investment / Property Management & Operation / Real Estate Agents) to identify and assess medium- and long-term risks and opportunities and reflect the findings in its business strategy.
• The analysis was conducted for the three climate scenarios, 1.5°C, 3°C, and 4°C increases in average global temperatures, based on the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC).

• We assessed the qualitative importance of the dependencies and impacts for each business and throughout the value chain, after which we conducted a qualitative and quantitative assessment of dependencies and impacts based on regional information for our urban development business in the Greater Shibuya area and hotel and leisure business, including Tokyu Resort Town Tateshina and Palau Pacific Resort.
• We considered the dependencies, impacts, and external environmental information, such as the National Biodiversity Strategy, and identified nature-related risks and opportunities in our hotel and leisure business, including Tokyu Resort Town Tateshina and Palau Pacific Resort an urban development project centered around the Greater Shibuya area. We identified the risks and opportunities that are of particular importance to our business activities. Furthermore, considering climate change, scenario analysis was conducted to assess the material nature-related risks and opportunities across the four business segments.

• We established a Sustainability Committee directly under the President and CEO, which plans and assesses company performance on important climate- and nature-related issues, and reports the results to the Board of Directors.
• The Group Sustainability Promotion Department, which serves as the secretariat for the Sustainability Committee, and each business division set their goals, manage their performance, and share information on climate-, nature-, and biodiversity-related issues, The department ensures proper reporting in accordance with relevant laws and regulations to actively reduce GHG emissions, waste emissions, and negative environmental impacts associated with the various business activities, while working to expand their benefits.
• We formulated the Sustainable Procurement Policy in January 2020, and currently focused on mitigating the risks associated with climate change and associated negative environmental impacts in the value chain by collaborating with upstream and downstream stakeholders.

• We identified “important risks” that have important impacts on business management.

  Important risks

  1. ① Investment
  2. ② Financial capital
  3. ③ Personnel and labor
  4. ④ Legal compliance
  5. ⑤ IT and digital strategies
  6. ⑥ Information security
  7. ⑦ Crisis management response
  8. ⑧ Climate change
• We also identified ESG risks, including nature and biodiversity-related issues, in an integrated manner.

  Examples of ESG risks

  Climate change, biodiversity conservation, environmental pollution, waste reduction and proper disposal, resource use, water resource conservation, human rights protection, child labor prevention, community and societal contributions, employee health and safety, employee human rights, corruption, bribery, corporate governance, etc.

Metrics and targets

Commitments and goals

• Our group has set a long-term goal of reducing GHG emissions to net zero by 2050 (for which we obtained SBT net zero certification) and promotes business activities consistent with a decarbonized society.
• Important milestones include meeting the targets of Scope 1 and 2 (our company) and Scope 3^★ (supply chain; reduction targets: Categories 1, 2, and 11) for reducing CO₂ emissions by 46.2% in FY2030 compared to FY2019 [SBT (1.5°C level) certification], and are actively managing our CO₂ emissions.
• In our medium-term management plan, we aimed to reduce Scope-1 and -2 CO₂ emissions by 50% in FY2023, but we achieved this target ahead of schedule in FY2022. Our new goal for FY2025 is to reduce emissions by 80%.
  • The actual emissions have been verified by an independent environmental certification organization.

Emission performance with respect to target

★ :See “Glossary”

We have also established the following metrics and targets associated with climate- and nature-related issues.

1. *1Targets large non-residential properties (with an extension area of ≥10,000 m2). Excludes some joint ventures, etc.
2. *2Large new office buildings and commercial facilities owned by Tokyu Fudosan Corp.

• ** For more detailed data, please refer to ESG Data

Transition plan for a decarbonized society

• We aim to reduce the environmental impact of all our businesses and have committed to achieving net zero emissions by 2050 as toward developing a decarbonized society. We are also participating in the international campaigns “Business Ambition for 1.5°C” and “Race To Zero^★.” In FY2024, we obtained SBT Net Zero certification.
• As a milestone, we aim to achieve carbon-negative status for our company in FY2025, the final year of our Medium-Term Management Plan 2025. Additionally, we intend to reduce our Scope-1 and -2 CO₂ emissions by 50% by FY2023 compared to FY2019, and reduce Scope-3^*1 CO₂ emissions by 46.2% by FY2030 (SBT certified).

★ :See “Glossary”

• Refer to page 41 of “the 2025 Environmental Management Report”.

• Under our long-term “GROUP VISION 2030” we aim to achieve these targets while sustaining business growth. This requires the adoption of relevant initiative both within our company and supply chain as well as the development of more efficient technologies. There is also a possibility that climate change will intensify beyond our expectations and regulations will be tightened. Therefore, we will regularly monitor these trends and review our plans.
• We plan to promote our longer-term plan for achieving net zero emissions by 2050 while continuing to research technological developments and industry trends.

1. *1Target categories 1, 2, and 11 (accounting for >90% of CO₂ emissions in Scope 3)

• The group formulated GROUP VISION 2030, the Group’s long-term vision with the aim of realizing net zero emissions by the year 2050. We are already reducing CO₂ emissions through efforts such as switching power used at offices of and facilities held by Tokyu Land Corporation, our core company, to 100% renewable energy, setting ZEB standards for new buildings in principle, and promoting ZEH as a standard specification at Branz condominiums.
• Gong forward, we will continue to pursue reductions of CO₂ emmisions through our businesses and target decarbonization as a business opportunity as we aim to further reduce environmental impact through the growth of the group.

• The group will work toward a decarbonized society by promoting the following initiatives.

• In our long-term vision, we are taking the following steps to achieve our CO₂ emission targets. The initiatives have been steadily adopted. Tokyu Fudosan Corp. achieved 100% RE use at its offices and facilities in December 2022^*1, and in April 2024, it became the first domestic company to be RE100 certified.
• We will continue to promote the ZEB/ZEH standardization of our facilities and obtain environmental certification.

1. *1Excluding some joint ventures, etc.
2. *2According to the list at the end of the RE100 annual disclosure report 2022
3. *3Percentage of facilities such as condominiums and offices at Tokyu Fudosan Corp. with building performance equivalent to or exceeding ZEB/ZEH Oriented standards (based on start of construction)
4. *4Covers large non-residential properties (extended floor area of ≥10,000 m2). Some exclusions include joint ventures

★ :See “Glossary”

• The group implements a renewable energy business as a strategic investment business. Further expansion of power generation capacity, which is among the highest in Japan, will be promoted.

Long-term stable power supply initiatives

1. *1Before calculation of equity share
2. *2General Incorporated Association for the Promotion of Long-Term Stable Power Supply from Renewable Energies
3. *3General Incorporated Association for Renewable Energy Community Revitalization

★ :See “Glossary”

Profit plan based on facilities secured and total amount of investment

[As of end of December 31, 2026] Rated capacity*¹: 2,527MW

• Facilities in operation: 223 projects*, 2,077MW (1,814MW solar power/247MW wind power/16MW others)
• Facilities in development: 78 projects, 616MW (354 solar power/207 wind power/54 others.)

• * Separate rooftop businesses: 1 (Rooftop solar power aggregated as 1 business)

1. *1Before calculation of equity share (including projects under development)

• For us to set our sights on new business opportunities and strive for decarbonization through our businesses, financing from outside the group is imperative.To widely disseminate and promote the group’s efforts aimed at climate change and other ESG and bolster both the creation of stable investment opportunities for bond investors and engagement, we formulated the WE ARE GREEN bond policy as our basic policy for ESG bond issuance in FY2021.
• The use of funds from ESG bonds is in line with the themes of our efforts to create value (materialities) established in our GROUP VISION 2030, the Group’s long-term vision. We aim to elevate the ratio of ESG bonds to our bond issuance balance to 50% or more by the end of FY2025 (a target already achieved) and to 70% or more by the end of FY2030.

Movements in ratio of ESG bonds

Stakeholder engagement with industry associations

Renewable Electricity Supplied to Suppliers for the LOGI'Q Hiroshima Logistics Facility

Efforts for offsite corporate PPA^★

”Branz” Adopts the Ministry of Economy, Trade and Industry’s New “GX ZEH” Standard Ahead of Schedule as the Standard Specification

• As part of its decarbonization initiatives, Tokyu Land Corp. is accelerating its original targets for standardizing the ZEB/ZEH specifications, which had been set at approximately 50% of construction starts by FY2025 and 100% by FY2030. Additionally, it will apply the new GX ZEH standard, introduced under the Ministry of Economy, Trade and Industry’s “Housing Energy Efficiency” initiative and featuring higher insulation, energy-saving, and energy-generation performance than the conventional ZEH standard, to all new projects whose design begins from October 2025.
• The group’s companies will also ensure that every urban rental residence under the “COMFORIA” brand and every student residence under the “Campus Village” brand commencing construction from FY2025 onward achieves environmental performance equivalent to ZEH. Tokyu Livable, Inc. will similarly ensure that every “L'gente” project commencing construction from FY2024 onward achieves environmental performance equivalent to ZEH.

Utilization of green energy at logistics facilities

★ :See “Glossary”

Regional coexistence efforts in the town of Matsumae, Hokkaido

• Having entered an agreement on implementation work for corporate cooperation-based community planning and other efforts with the Town of Matsumae in Hokkaido’s Matsumae County, Tokyu Land Corporation is leveraging its knowledge and networks in community planning and renewable energy to jointly implement various projects aimed at sustainable community planning in the Town of Matsumae, including the formation of a regional micro grid.
• We took advantage of local assets in the form of one of Japan’s strongest winds to develop and operate the ReENE Matsumae Wind Power Plant. In addition, we seek to contribute to regional revitalization that leverages the likes of tuna, Matsumae beef, cherry blossoms and other tourism resources.

Efforts to introduce solar power generation equipment in Yokohama municipal schools

Endorsement of various initiatives

• We believe it is vital that we work together with various initiatives as an environmentally advanced company.
• We endorse the below organizations, engaging in the likes of information-gathering and cooperation with fellow industry players.

• Please refer to the Participation in the initiative for details.

★ :See “Glossary”

• We believe that all employees must collaborate to address climate change and achieve net zero emissions by 2050.
• To this end, we provide programs and training to raise the environmental and sustainability awareness of our employees.

Program provision and training

• In FY2022, we established the Sustainable Action Awards to recognize practitioners developing sustainable initiatives. The total number of applications has increased annually and, in FY2025, 203 applications were received, of which 36 received awards.

  

• In November 2025, we also held "Sustainability Month," featuring a series of experiential events throughout the month aimed at fostering a deeper understanding of sustainability among Group employees.
• We provide programs to raise employee awareness regarding sustainable business practices (including environmental themes).
  • We conduct e-learning annually for Group employee, covering sustainability themes. Our online in-house newsletter “TFHD GROUP MAGAZINE (T-MAG)” also contains many articles on sustainability.
  • We are conducting interactive e-learning for group employees, focusing on the circular economy through forest conservation.

Climate- and nature-related initiatives

Examples of climate-related initiatives

Utilization of on-site PPA at logistics facility Logi’Q

“Logi’Q” provides environmental load reduction services using 100% RE, “ReENE Green Energy,” for tenant companies and their shippers.

Utilization of on-site renewable energy

We use renewable energy such as solar and wind power in various businesses. The facilities of Palau Pacific Resort and Tokyu Harvest Club Atami Izuyama Viala are powered using solar power generation.
The commercial facility Tokyu Plaza Omotesando has also installed two wind power generation devices on the roof to generate natural energy.

Examples of environmental certification (DBJ Green Building-certified properties)

Examples of ZEB-certified properties

Joint demonstration of BEV/PHEV charging services for apartment buildings

Tokyu Community Co. Ltd. has begun joint demonstrations of charging services for apartment buildings using BEV/PHEV-charging systems developed by DENSO Corp. at an apartment building in the Tokyo metropolitan that it has managed since January 2025.

100% renewable energy data center

Construction began in September 2024 on the first Ishikari RE Data Center, which will be operated on 100% renewable energy, in Ishikari City, Hokkaido. Ishikari Regional Energy LLC, an investment recipient of Tokyu Fudosan Corp., and ReENE Co., Ltd., a wholly owned subsidiary, will collaborate to directly supply RE through an on-site PPA.

Responding to physical risks

• Tokyu Housing Lease Co. Ltd. has received the Resilience Certification from the Resilience Japan Promotion Council, a national certification for organizations promoting resilience, in recognition of its initiatives to continue operations following large-scale disasters.
• Tokyu Fudosan Corp. has received for its Shibuya Minami Tokyu Building the ResREAL (Flood Edition) certification, awarded by the Japan Real Estate Institute, that quantifies the resilience of real estate against natural disasters. (Certification grade: GOLD)
• Tokyu Fudosan Corp. is strengthening its BCP by selecting suitable building locations and working with tenants and residents.

Initiatives regarding nature-related risks and opportunities, dependencies and impacts

Specific initiatives in our group to date regarding risks, opportunities, and impact are presented below. The following are some of the major initiatives we have undertaken.

Urban development: Community planning

Community planning in greater Shibuya area

In the greater Shibuya area, which has Shibuya Station at its center, we further evolved upon and deepened our “Greater SHIBUYA 1.0” concept for the area to formulate our new community planning strategy “Greater SHIBUYA 2.0.” In addition to bringing together the three elements of workplaces, residences and entertainment, we will promote initiatives for “digital” and “sustainable” as the foundation of that strategy. Regarding “sustainable,” through efforts such as developing richly-green environments, promoting decarbonization and reinforcing resilience, we are engaging in the planning of a community in which anyone can spend time in safety, security and comfort, one that has cutting-edge environmental measures in place and will grow on a continuous basis.

GREEN WORK STYLE (previously described)

At our office buildings, we are currently expanding “GREEN WORK STYLE,” through which we seek to realize improved corporate value and the realization of worker well-being from the dual aspects of “the workplace” and “office solutions” through diverse green power while being mindful of health, safety, the environment, and sustainability. By realizing a work style through which workers interact with green, we will alleviate their day-to-day stress and draw out the productivity of each individual member to the fullest while also contributing to the smooth formation of a community.

Initiatives in urban development：community planning

Formation of ecological network in greater Shibuya area and configuration of KPI for FY2030

Given the importance of biodiversity-conscious urban greening, in the greater Shibuya area, we are actively promoting the greening of areas such as rooftops and wall surfaces at our business sites in order to preserve the ecosystem. By connecting the green in the vicinity and acting as a relay point for the living creatures that inhabit those areas, we are tackling the formation of an ecological network in the greater Shibuya area.
In particular, when we develop large-scale properties with considerable impact on the local community, we carry out ecosystem studies in the peripheral area at the planning stage, perform greening using vegetation that takes the bird and inspect species that inhabit the area into consideration, and pursue biodiversity conservation in that community.

Targets

Building greenery (rooftop, wall surfaces, etc.)* 100% by FY2030

* Newly-built large-scale office building/commercial facility properties

Image representation

Planning of community that coexists with nature at Tokyo Portcity Takeshiba

In the Takeshiba area located in Tokyo’s Minato City, which constitutes a national strategic economic growth area, we are pursuing community planning that takes advantage of industry-academia cooperation and technology and are moving forward with long-term continuous initiatives to enhance the appeal and vitality of the area of the whole, including its environment (sustainability).
The office town serving as the core piece of the project is a large-scale complex with a total floor area of approx. 180,000m2, 40 floors above ground, and two floors below ground. The higher floors consist of an office area, with the lower floors hosting a commercial area. The office lobby on the sixth floor provides a space that incorporates water and green and is in harmony with the local community.
On the southeast side of the second through sixth floors, the spacious “Skip Terrace” has been erected in a staircase pattern. There, the “Eight New Views of Takeshiba” made up of eight scenes represented by the sky, bees, a rice paddy, a vegetable garden, aromas, water, an island and rain are presented as a “Satoyama”-like landscape. By forming an ecological network linked to the Hamarikyu Gardens, the Kyu-Shiba Imperial Gardens and the rich green of the surrounding area, we aim to contribute to the biodiversity of the local community.

At the “Rice Paddy Scene” containing a 145m2-wide rice paddy and the “Vegetable Garden Scene” where vegetables and fruits are grown, students at the nearby preschool, tenant-related individuals and people who reside in the residence tower can take part in rice-planting or harvesting events, which will be tied into environmental education for stakeholders.
Additionally, at the “Bees Scene” where beehives are placed and the “Sky Scene” with of nest boxes placed on wall surfaces that are hard for people on the fifth, eight, tenth and twelfth floors to catch sight of, habitats for honeybees and raptor species such as falcons and kestrels will be supplied. Through these, we will contribute to biodiversity in the city center.

Initiatives in urban development: greening technology, planting management, green infrastructure

Greening and planting management by diverse technologies based on the concept of green infrastructure

Based on the concept of green infrastructure (see note), ISHIKATSU EXTERIOR INC., which handles the group’s Environmental and Greening Management Business, has been engaged in disaster prevention and mitigation, protection and preservation of nature and biodiversity, sustainable urban development, and contracted management of various green spaces by utilizing various technologies, including urban greening technologies such as rooftop greening and wall greening.

Note : What is Green Infrastructure?

* Excerpt from the MLIT website

Green infrastructure menu

Example of menu

Green Agenda：Planting management for planning and cultivating green landscapes

In condominiums, ISHIKATSU EXTERIOR INC. plans and constructs greenery to realize a living environment that nurtures life, create planting management plans (agendas) to connect them to the future, and promote "GREEN AGENDA," which integrates planning and management based on management plans and visualization technology.

In order to realize greenery for homes that meets the demands of the environmental age, it is committed to "visualizing" planting over the medium to long term, and to promoting its customers' "interest" and "sympathy" toward green.
It aim to provide sustainable landscaping support services that contribute to the conservation and restoration of biodiversity in urban development by developing its existing landscaping technologies.

Initiatives in hotel and leisure business –policy formulation–

FY2030 goals for wellness business

Tokyu Resorts & Stay, which operates the resort facility, has devised the concept of “Morigurashi®,” which incorporates harmony with forests, which are a locally shared resource, and sustainability through forest activities and glamping workcations, and promoted community problem-solving and nature conservation where local residents and employees work in an integrated manner. Furthermore, in 2024, the new slogan of “Happy ‘encounters’ in the community through the power of resorts” was devised. The aim is to provide an “experience-based sustainable resort” based on the three themes of “fostering biodiversity,” “creating a local future,” and “utilizing local energy” to provide facility visitors with a sustainable space, experience, and activities that are enjoyable and kind to the earth and community.
Event information and value for each resort facility are also sent out with the “Enjoy Green Guide” website.

Initiatives in hotel and leisure business: monitoring and OECM certification

★ :See “Glossary”

Initiatives in hotel and leisure business: nature coexistence in Tateshina

Forest management initiatives

In “Tokyu Resort Town Tateshina,” a forest management plan has been established since 2018, where conservation thinning has been conducted. These actions promote forest growth, such as by encouraging undergrowth and strengthening tree roots, and prevent natural disasters, such as landslides, by strengthening the ground. Efforts such as processing thinned wood into wood chips and utilizing them as fuel for biomass boilers have also been conducted as efforts to contribute to nature and biodiversity conservation as well as local production and consumption of energy. A CO₂ absorption / fixation device has been introduced in the biomass boiler, and golf tees, as well as bottles and sleeves, are made from the CO₂ contained in the flue gas, which is then provided to guests.
Appropriate thinning also promotes tree growth and increases CO₂ absorption amount. In 2022, our group became the first general developer to receive J-Credit certification based on forest management activities under the J-Credit system, in which the Japanese government certifies the CO₂ reductions made by companies as credits.

Utilization of thinned larch wood

Our group has collaborated with Forest Mori no Kobo Akanesha, a welfare service provider in Suwa City, Nagano Prefecture, and Araki Sewing Co., Ltd. in Shimo-Suwa to sell larch sachets that can be used as a shoe dryer and desiccant, forest candles and wood diffusers that utilize larch scents, and larch outdoor sprays that serve as a naturally-scented insect repellent, which were sold as part of the “ordinary” series. A special craft beer, Larch HAZY IPA, was also sold as part of the “special” series.
Additionally, in the Tokyu Fudosan Branz Gallery Omotesando, an integrated condominium gallery of Branz, which is our group’s new condominium brand that opened in September 2023, the thinned wood that was generated as a result of forest conservation activities in Tokyu Resort Town Tateshina has been used as flooring and designer furniture.

Clean-up and walking activities: “Morikomichi”

Hosting of “Morigurashi Event” through “bushcraft”

Working in the forest: “Work Lab Morigurashi”

Planning Tateshina Darwin Tour, a customer-participation biological survey event

Turning abandoned farmland into wine vineyards! Grape seedling planting experience event

A wine grape seedling planting experience event was held in the fields of the winery “Oreilles de Chat,” which was opened in 2023 in Chino City, Nagano Prefecture. This was an initiative to convert abandoned farmland, which has increased in area across Japan and is becoming a social issue, to vineyards, and the utilization of abandoned farmland allows for the addressing of environmental and local issues. Approximately 720 grape seedlings were planted while imagining a bountiful harvest three years from now.

District disaster prevention plan-based drills

“Edible garden,” where users can learn and experience the food and forest cycle

Coexistence between local community and environment through “Tenoha Tateshina”

Initiatives in hotel, leisure and overseas business: marine conservation

Establishment of Katsuura City Seaweed Bed Conservation Council

Collaboration between industry, government, and academia at Hyatt Regency Seragaki Island, Okinawa

Community contribution activities in Indonesia

Other initiatives: reducing water resource use

Reducing negative impact of water resource use

Our group has collaborated with stakeholders such as design companies, construction companies, customers, and local communities to engage in water resource conservation initiatives through appropriate management and efficient water resource use according to the unique water resource issues of each region.

Target

To reduce water resource usage per floor area at project locations and real estate portfolios compared with the previous fiscal year by FY2030

Other initiatives: invasive alien species countermeasures and contamination

Invasive alien species countermeasures

Under the Invasive Alien Species Act (Ministry of the Environment), invasive alien species refers to species of plant or animal that do not originally inhabit Japan and entered national boarders either with or without intention through human activity. These may harm or otherwise impact the ecosystem of local communities. In its endeavors to preserve the ecosystem of those communities, the Group has established a manual and set forth ways of dealing with highly invasive alien species when they are spotted.

Reduction of negative impact cause by contamination

Working together with design and construction companies and other stakeholders, the Group endeavors to reduce the effects of contaminants on the environment by preventing their discharge and refraining from using materials that cause that discharge.

Other initiatives: resource circulation

Resource circulation

Recognizing the need to effectively utilize the resources that go into its businesses, in collaboration with design and construction companies, customer users and other stakeholders, the Group endeavors to utilize resources properly and effectively.

Other initiatives: extending lifespan of buildings

EM checkup: utilization of buildings through comprehensive building diagnosis

Appendices and Glossary

Appendix: Structure of the TCFD and TNFD Frameworks

The TCFD and TNFD frameworks consist of disclosure recommendations organized around four pillars, and disclosure relating to these items is recommended. The General Requirements are disclosure items required only under TNFD.

Overview of TNFD Disclosure Framework

Appendix: TNFD framework and LEAP approach

The table below summarizes which of the 14 disclosure recommendations shown on the previous page corresponds to each of the LEAP phases of the TNFD. In this report, the results of our review with reference to the LEAP approach are disclosed in accordance with the General Requirements and the TNFD Disclosure Recommendations.

Overview of the LEAP Approach and its relationship to disclosure recommendations

Glossary

Method for Quantitative Assessment of Financial Impacts

Metrics and information used for location prioritization

Terms

Reference materials

1. “Global Risk Report 2026,” World Economic Forum (2026)
2. Tokyu Fudosan R&D Center Inc., Ishikatsu Exterior Inc. and Tokyo City University, Faculty of Environmental Studies (Yokota / Kitamura / Yoshizaki / Iijima) (2016) “Basic survey for ecological network formation in greater Shibuya area”
3. Tokyu Fudosan R&D Center Inc., Ishikatsu Exterior Inc. and Tokyo City University, Faculty of Environmental Studies (Yokota / Kitamura / Yoshizaki / Iijima) (2019) “Guide to building greening for ecological network formation in greater Shibuya area”
4. Ishikatsu Exterior Inc. (2020) “Fiscal 2019 Tokyu Plaza Omotesando Harajuku “Omokado:” Report on Biological Survey”
5. Regional Environmental Planning, Inc. (2020) “Survey on Ecological Networks that Contribute to Biodiversity in Greater Shibuya Area”
6. Serigasawa Topography Editorial Board (1990) ”Serigasawa Topoglaphy”
7. Chino City (1988) “Chino City history last volume”
8. Regional Environmental Planning, Inc.(2024) “Tokyu Resort Town Tateshina basic survey for application for certification as OECM site, conservation and utilization of natural resources”
9. PICRC (Palau International Coral Reef Center) (2025) "Fourth Assessment of the Arakabesan Marine Protected Area"

Photo credit

• *1© Google Earth / Airbus / CNES Airbus / Maxar Technologies
• *2© Devonpike / Palau Fantail Rhipidura lepida photographed in Koror Palau in 2013 by Devon Pike / Wikimedia Commons / CC BY-SA 3.0
• *3© thibaudaronson / Palau Flycatcher – 2 / Wikimedia Commons / CC BY-SA 4.0
• *4© JJ Harrison / Todiramphus chloris 2 - Laem Phak Bia / Wikimedia Commons / CC BY-SA 3.0
• *5© Devonpike / Palau Fruit Dove Ptilinopus pelewensis photographed on Babeldaob Palau in 2013 by Devon Pike (cropped) / Wikimedia Commons / CC BY-SA 3.0
• *6© Devonpike / Palau Frog Platymantis pelewensis photographed in Koror Palau in May 2013 / Wikimedia Commons / CC BY 4.0
• *7© Diego Delso / Hawksbill sea turtle (Eretmochelys imbricata), Ras Muhammad National Park, Egypt / Wikimedia Commons, CC BY-SA 4.0
• *8© Makoto Uesugi
• *9© Derek Keats / The green seaweed, Caulerpa serrulata, at Ponta do Ouro, Mozambique / Wikimedia Commons / CC BY-SA 2.0
• *10© JJ Harrison / Dugong dugon (cropped) / Wikimedia Commons / CC BY-SA 3.0
• *11© Darren Obbard / Carcharhinus melanopterus 261420865 / Wikimedia Commons / CC BY-SA 4.0
• *12© Charles J. Sharp / Giant_clam_(Tridacna_gigas)_Michaelmas_Cay / Wikimedia Commons, CC BY-SA 4.0

The following were used as a reference in the preparation of this report.

• Task Force on Climate-related Financial Disclosures (TCFD)
  • “Recommendations of the Task Force on Climate-related Financial Disclosures”
  • “Guidance on Metrics, Targets, and Transition Plans”
• CDP
  • “Climate Transition Plan: Discussion Paper”
• Transition Plan Taskforce (TPT)
  • “The Transition Plan Taskforce Disclosure Framework Consultation”
• United Nations’ High‑Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities (UN HLEG)
  • “Integrity Matters: Net Zero commitments by Businesses, Financial Institutions, Cities and Regions”
• Task Force on Nature-related Financial Disclosures (TNFD)
  • “Recommendations of the Taskforce on Nature-related Financial Disclosures”