OJR's Approach to Sustainability Value Creation Process
Value Creation Process
OJR summarized how we utilize both financial and non-financial capital and create value in the “Value Creation Process.” This aims to give stakeholders a comprehensive understanding of the overall picture of the business by explaining not only financial value but also long-term non-financial value in an integrated manner. Internally, we also plan to use it for strategy formulation, viewing the inputs and outputs of business activities as a whole and aiming for a balanced expansion of outcomes and social impact according to the social and economic environment.
Management Style (Detailed)
Management style represents policies and characteristics and flexibly changes with the environment. (As of the end of August 2024)
Main Risk Awareness
Recognizing, evaluating, and appropriately managing risks is fundamental to ensuring the continuity of business operations and the stable growth of unitholder value.
As the asset management company for a listed real estate investment corporation, OAM operates following the “Basic Policy for Customer-Oriented Business Conduct,” emphasizing managing conflicts of interest. However, we recognize that a significant risk is failing to fulfill our fiduciary duties due to insufficient internalization of these fundamental principles or deficiencies in our internal control systems. To mitigate this, we are committed to strengthening and improving internal control systems through measures such as conducting training for officers and employees and regularly monitoring and reviewing their effectiveness.
We are also closely monitoring trends in the real estate transaction market, domestic and international economic conditions, changes in interest rates, currency exchange trends, and the impact of rising prices on various costs in the current management environment. Additionally, we recognize natural disasters such as earthquakes, extreme weather events, and information security risks as factors that could impact business operations, and we are actively implementing measures to address these risks.
In terms of medium- to long-term risks, we acknowledge and are addressing physical risks related to climate change—such as damage to owned properties due to rising temperatures, sea-level rise, and an increase in severe natural disasters—as well as transition risks, including the strengthening of carbon taxes and emission reduction obligations under decarbonization policies, restrictions on the use of buildings with low energy efficiency, and shifts in market demand.
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Moreover, we recognize that structural changes in Japan’s economy, driven by a declining birthrate and aging population, could impact the real estate market, rental demand, and employment environment, making it a critical area for future consideration.