MTR believes that initiatives to improve sustainability are essential for enhancing unitholder value for the medium to long term. Also, MTAM, to which MTR entrusts the management of its assets, establishes a corporate philosophy of “Reliability”, “Continuity”, “Benefit sharing” and “Social nature”, and aims to improve unitholder value by contributing to social and economic development through cooperation and collaboration with various stakeholders.
I introduce recent initiatives on ESG.

　With respect to “E: Environment”, MTR has worked to reduce the environmental burden of its portfolio through energy conservation by introducing energy-efficient equipment, reduction of greenhouse gas emissions, effective use of limited resources through water conservation and waste reduction, etc. During the fiscal period under review, MTR promoted energy-saving measures in its facilities, including the introduction of LED lighting fixtures in Tokyo Shiodome Building, Sendai MT Building, Osaki MT Building, Midosuji MTR Building, Shin-Yokohama TECH Building, Hilton Odawara Resort & Spa and Ito-Yokado Shonandai and the replacement of air conditioning equipment in Hotel Okura Kobe and Courtyard by Marriott Shin-Osaka Station. MTR is also working to obtain environmental certification and evaluation, and during the period under review, MTR obtained DBJ Green Building Certification for Shangri-La Tokyo. MTR holds a total of 19 properties with environmental certifications and evaluation, the ratio of certified properties in the portfolio, excluding land with leasehold interest, is 100% on the number of properties basis and on a leasable area basis as of the end of the fiscal period under review.　

　With respect to “S: Society”, we are working to build good relationships with and collaborate and cooperate with external stakeholders related to the real estate we own, contributing to improving tenant satisfaction and the sustainable development of local communities. We are also working to create a healthy and comfortable working environment that allows employees of MTAM to maximize their abilities.

　With respect to “G: Governance”, MTAM has established a structure to ensure the prevention of conflicts of interest, risk management, and thorough compliance with laws and regulations. We have formulated rules on transactions with related parties with the aim of preventing harm to MTR's interests in transactions with related parties, and operate transactions that meet certain conditions, subject to approval by the Compliance Committee and Investment Committee, which include external committee members, as well as approval by the Board of Directors of MTR and MTAM. In addition, we conduct compliance training, information security training and other educational and awareness-raising activities for all officers and employees on a regular basis, in order to raise awareness of compliance among officers and employees.

　MTR will continue to promote various initiatives on issues regarding ESG and proactively disclose information in response to the expectations from various stakeholders.