Social Cooperation with Property Managers (PMs) and Building Managers (BMs)
Promoting ESG Initiatives Among PMs/BMs
We believe that setting standards for the entire supply chain is an effective way to promote ESG, and we are working with the property managers (PM) and building managers (BM) among our business partners to implement these standards.
PM Contract Including ESG Consideration Clause
OJR has entered into property management agreements with some property managers that include ESG consideration clauses. As of April 1, 2025, Approximately 97.5% of our properties are covered by contracts that contain such clauses.
ESG Training for PMs
OJR conducts training sessions to enhance understanding of how to implement better property management from an ESG perspective through specific collaborative efforts with OJR and OAM.
Ensuring ESG-Related Measures from Business Partners
OJR evaluates the following ESG-related measures for each business partner during the execution of outsourcing contracts and conducts a reassessment annually thereafter, in addition to assessing their management capability and service quality. We also monitor PMs/BMs annually for compliance with laws and the quality of their services.
Safety Measures
Safety measures are carried out with property managers (PM) and building managers (BM) to prepare for disasters and improve customer safety (tenants and users).
Due diligence upon property acquisitions
Upon property acquisitions, we consider recent heavy rain disasters due to climate change, floods, typhoons, etc., and whether there is any past damage. We also check whether the property is within the expected range of damage caused by natural disasters by using the “hazard maps” disclosed by government agencies. In preparation for earthquakes, we check whether the building meets earthquake resistance standards and whether the PML value* meets or exceeds standards.
PML (Probable Maximum Loss) measures the potential losses to a building that is statistically likely to occur once every 475 years, expressed as a percentage of the building’s replacement cost. The earthquake risk assessment of buildings involves calculations based on a risk curve that shows the relationship between expected loss (horizontal axis) and the annual exceedance probability of that loss resulting from seismic motion (vertical axis), using damage distribution that considers the indeterminacy of damage due to the building’s earthquake-resistance performance, the nature of the seismic motion, and other factors.
Customer (Tenant) Satisfaction Survey
OJR conducts a yearly satisfaction survey to ensure operational management aims to improve customer satisfaction. To ensure fairness, we hire a third-party organization to conduct this survey. The survey was divided into two categories: hard aspects, such as buildings and facilities, and soft aspects, including cleaning and the responses of PMs and BMs across most properties. Starting in FY2022, we included Net Promoter Score questions in the survey and conducted a questionnaire that categorized importance and satisfaction into four levels.
| Subjects | Satisfaction Level | |
|---|---|---|
| 2024 | Approx. 2,970 tenants in 24 residential properties nationwide | 89% |
| 2023 | Approx. 940 tenants in 85 offices, commercial facilities, and hotels nationwide | 91% |
| 2022 | Approx. 1,010 tenants in 99 offices, commercial facilities, and hotels nationwide | 92% |
| 2021 | Approx. 670 tenants in 55 offices nationwide | 90% |
| 2020 | Approx. 600 tenants in 53 offices nationwide | 87% |
Improvement Process
We share survey results with PMs and BMs, then identify issues and consider countermeasures. For example, we carried out equipment repairs in response to a concern about air conditioning and conducted exterior construction work to expand parking spaces in response to complaints about parking shortages. We have also addressed requests for lighting and cleaning. Implementing measures in partnership with PMs and BMs helps us improve the detailed services in our daily operations as well as the environment.