The Mitsui Fudosan Group’s history of neighborhood creation extends well beyond the mere construction of buildings. We take great pride in our longstanding track record of solving social issues through the creation of value. Skyscrapers, for example, led to the establishment of an office work style. Landfill projects met growing robust demand in Japan and the creation of mixed-use neighborhoods helped provide spaces for people to relax while stimulating increased vitality. Through our logistics facilities business, we support the growth of e-commerce and logistics efficiency, and are serving as the lifeblood of industry. We have also worked to enrich people’s lives while enhancing the quality of life through our housing, retail facility, hotels and resorts, as well as Tokyo Dome and other sport and entertainment activities. In broad terms, we remain convinced that increasing corporate value through business growth and continuing to create social value will contribute to a sustainable society.
Mitsui Fudosan formulated a new Group Philosophy and the long-term vision “& INNOVATION” in April 2024. The spirit and DNA of the “&” mark that has been passed down from generation to generation throughout the Group embraces the aspiration “to generate new value with society through cooperation, coexistence and co-creation, as we forge ahead, innovating.” It is a genuine expression of the Group's commitment to value creation. Moreover, we have identified & EARTH, & INNOVATION, and & PEOPLE as the MISSIONS that we wish to fulfill. Guided by this MISSION and aspiration, we have set “contribute to industrial competitiveness,” “coexist with the environment,” “health and vitality,” “safety and security,” “diversity and inclusion,” and “compliance and governance” as GROUP MATERIALITY priority issues.
The prolonged period of deflation is symbolic of Japan’s so-called “lost 30 years.” In breaking free from this persistent deflation, we believe significant weight will be placed on new added value triggering intense competition in its creation. In other words, we recognize the critical need to stimulate innovation in earnest, create overwhelming added value, and enhance industrial competitiveness.
I believe that the goal of the Mitsui Fudosan Group is to evolve into a “platformer,” or so-called “industry developer” that transcends the traditional boundaries of a “real estate developer.” To date, we have worked to help increase added value through open innovation that promotes further advances in technology and the growth of new businesses while supporting industry through the provision of “places” and “communities.” With Nihonbashi as our backdrop, we have worked to provide places and communities for the life science and aerospace fields by establishing Life Science Innovation Network Japan, Inc. (LINK-J) as well as “cross U” as a co-creation platform. In attracting large numbers of companies, including startups, and academia, positive steps have been taken to create an ecosystem that has nurtured new business seeds.
Looking ahead, it will become increasingly important to take the initiative in “generating demand” across any and all fields. With this in mind, it is vital that we accelerate the creation of new industries and demand by providing an open innovation platform and bringing together the wisdom of the corporate sector and society and their constituent people. Working in unison, the Mitsui Fudosan Group will join with stakeholders to promote coexistence and co-creation as well as mutual growth through the development of society.
Under the “＆” Logo Principles, we have worked diligently to create neighborhoods that ensure optimal balance and coexistence between “development” and “the environment.” As a part of the TOKYO MIDTOWN development, we have placed considerable importance on preserving the natural environment. To this end, we preserved and replanted around 140 trees from the former Defense Agency site, including camphor and cherry blossom trees. As a result, birds of six orders, 18 families, and 25 species, which are identified on the Red List of Important Wildlife Species for protection by the Tokyo Metropolitan Government, including the goshawk, great egret, kite, and shrike, have been confirmed. Together with the neighboring Hinokicho Park, this area creates a vast green space that provides a place for people to relax while also serving as a space for disaster prevention. By properly managing green spaces, existing transplanted trees can grow without dying, creating greenery-filled neighborhood that gets better with age.
As far as climate change is concerned, a pressing global issue, we formulated the “Group Action Plan to Realize a Decarbonized Society” and set a target of reducing emissions by 40% compared with the FY2019 level by FY2030, and the goal of achieving net zero emissions by FY2050. GHG emissions generated during building construction account for a large portion of the Group’s total emissions. As such, it is vital that we cooperate with various suppliers, including construction and material companies, in order to realize a decarbonized society. Since the fall of 2023, our “Construction GHG Emissions Calculation Manual” was applied to all properties constructed by the Company. At the same time, construction companies are now required to calculate GHG emissions and submit reduction plans. Working in lockstep with the supply chain, the Group endeavor to reduce GHG emissions across the entire industry.
Efforts to coexist with the environment extend well beyond neighborhoods, encompassing the roughly 5,000 hectares of Group-owned forests in Hokkaido. Japan’s planted forests, which are artificially cultivated, are facing a variety of issues, including a “shift away from the forestry industry,” a lack of proper management, and the insufficient use of mature planted forests as timber. Our goal is to resolve these social issues by practicing the “plant → cultivate → use” cycle thereby contributing to the creation of “never-ending forests.” As a part of efforts to use the lumber from Company-owned forests, construction commenced on a wooden building in Nihonbashi in January 2024. The proper management of forests also helps conserve biodiversity. A Group-owned forest in Rumoi, Hokkaido was certified as a “nature harmony site” by Japan’s Ministry of the Environment. This certification was granted in recognition of the Group’s contribution to the survival of rare plants and animals such as the Japanese crayfish, which are designated as vulnerable on the Ministry of the Environment’s Red List. Moving forward, we will endeavor to realize the Nature Positive concept on an ongoing basis.
In the wake of the COVID-19 pandemic, we have witnessed the digitalization of a variety of services. While recognizing the usefulness of digital technologies and the advent of such trends as remote work, I also sense a reaffirmation of the importance of the real world. Here, I believe that a growing number of people will seek out higher added value in emotional experiences and real-world, sense-based experiences that cannot be obtained digitally. Against this backdrop, I suspect that people will not only seek the real value that only sports and entertainment can provide, but will also increasingly demand the value of experiences that meet diversifying needs through a combination of the real and digital.
In anticipation of this impending trend, we acquired TOKYO DOME CORPORATION through a takeover bid. Drawing on the that company’s expertise and know-how in stadium management, we also acquired the Chichibunomiya Rugby Stadium reconstruction business.
LaLa arena TOKYO-BAY opened in May 2024. While serving as home to the CHIBA JETS, a professional basketball team affiliated with the B.LEAGUE first division, the arena can be used for a variety of sporting events, including the adjacent MITSUI FUODSAN ICE PARK FUNABASHI. Beyond the realm of sports, LaLa arena TOKYO-BAY is open to concerts and various other entertainment events.
Moreover, we combined the retail facilities and sports and entertainment businesses and established a single division. As a group, we are working to gain a competitive advantage and secure strengths not found in other companies while further bolstering our ability to create added value by generating new synergies through the fusion of the two businesses.
In the context of realizing a society of wellbeing, we are contributing to the creation of neighborhoods through sports. We are providing place and communities where people in the city can experience sports and enjoy physical exercise. Initiatives include setting up a retail facility with such features as a bouldering wall, skating rink, and 200 m athletic track and sports park. We are also hosting basketball and various other events in which employees of tenant companies can participate. Through the &well health and productivity management support service for companies, we are endeavoring to create a vibrant society across the neighborhood as a whole.
Natural disasters have become increasingly frequent and severe in recent years. Against this backdrop, the impact imposed on not only earthquakes, but also typhoons, torrential rains, and other natural disasters continues to mount warranting the need to secure a higher level of preparedness. In addition to safety from a bricks and mortar perspective, there is a growing need to create resilient neighborhoods where people can live and work with peace of mind.
The Company has established a dedicated Disaster Countermeasure Headquarters at its head office as a disaster response system that responds quickly to disasters 24 hours a day, 365 days a year. Working shoulder-to-shoulder with local communities, we are promoting disaster prevention initiatives in the spirit of symbiosis and mutual aid. Initiatives include the execution of agreements with local governments and efforts to establish a system supporting local residents and people stranded with no way home during a disaster.
Through smart energy projects in Nihonbashi and other areas, we continue to provide a certain amount of electric power and heat from energy centers to buildings in the surrounding area in the event of wide-area power outages due to a disaster. In addition to the stable supply of energy from medium-pressure city gas pipelines with strong earthquake resistance, large-scale co-generation systems fueled by medium-pressure city gas and multiple power sources that employ grid electricity contribute to companies’ business continuity in the event of disasters and emergencies.
Over and above natural disasters, addressing the host of social issues, including infectious diseases is essential to people’s safety and security. The Mitsui Fudosan Group has continued to work on countermeasures against such infectious diseases as COVID-19 including formulating the Mitsui Fudosan 9BOX Infection Control Measure Standards. Moving forward, we are dedicated to creating stress-free neighborhoods through the use of digital technology while contributing to the realization of a society in which everyone can live free from anxiety.
The need to help balance child and nursing care concerns with everyday work commitments is becoming increasingly important. This reflects a variety of factors, including the upswing in dual-income households as a growing number of women enter the workforce and the surge in the elderly population as a result of the low birthrate and longevity. Of equal importance is the need to ensure a society in which all people can play an active role, regardless of such attributes as gender, age, and disability based on respect for basic human rights. We, at the Mitsui Fudosan Group, strongly believe that “people” lie at the heart of efforts to create neighborhoods. As such, we are creating neighborhoods in which people can work, enjoy, and relax while living with vitality. In addition to the construction of barrier-free buildings as well as child- and nursing-care facilities, we will also provide soft services that employ digital technology to meet diverse needs.
In order to continue to meet the needs of customers as well as the requirements of society, we believe that it is vital that we embrace diversity. D&I lies at the core of the Group’s strategy. It is critical that every facet of our organization, including the decision-making layer, is comprised of diverse human resources. Our goal is to become a corporate group in which human resources with diverse backgrounds and values can maximize their capabilities, share information through the exchange of opinions, stimulate a positive chemical reaction, and create new added value. To achieve this goal, we will engage in Group-wide efforts to raise the level of human resources capabilities and secure new human resources and knowledge that will accelerate innovation. Supporting the activities of diverse human resources, we will also further develop the Group’s One-Team organization that brings together the strengths of the Mitsui Fudosan Group.
Working toward this goal, we are working in unison to promote D&I, which we position as one of our key management strategies. In specific terms, we are advancing a variety of initiatives with diverse human resources very much in mind. Initiatives include supporting efforts to balance work with childcare, leave to care for others, and other related needs and putting in place an environment that is conducive to workplace and worktime flexibility. In supporting women play a more active role, an important D&I theme, we are promoting both an environment where people want to work for a long time as well as career development. In recognition of these endeavors, we acquired Platinum Kurumin certification and were selected for the third consecutive year as a Nadeshiko Brand. This recognition has helped enhance our reputation among society.
Compliance is the cornerstone of the Group’s business operations. Engaging in fair and equitable business activities in accordance with corporate ethics is an absolute prerequisite for earning the trust of stakeholders. Based on the Mitsui Fudosan Group Compliance Policies, we have positioned compliance as a key issue in Group management.
As far as corporate governance is concerned, we have on numerous occasions taken steps to consider the structure of the Board of Directors required to bring & INNOVATION 2030 to fruition. In conjunction with these considerations, we increased the ratio of outside directors by adding one outside director with extensive knowledge of the finance and capital markets as well as insight into corporate management. Also recognizing the importance that diversity plays in the composition of the Board of Directors, we will continue to pay close attention to efforts aimed at improving the soundness, transparency, and efficiency of management.
