Third-Party Opinion​

The sustainability website of MIRARTH HOLDINGS clearly outlines the policies and systems required for ESG-related information disclosure, and both content and quantity are satisfactory. The website covers elements and data typically required for environment, social, and governance disclosure, and also features various case studies related to activities and products. For example, it showcases initiatives related to environmental initiatives with regard to TCFD, renewable energy, and power generation businesses, as well as human resource initiatives such as the systematic education and training system and well-being surveys. Also, I found the projects related to regional revitalization very interesting.

On the other hand, one area where improvements are needed is that the strategy underpinning the company’s sustainability data and activities is not always articulated. The website does not fully explain what strategy MIRARTH HOLDINGS will use to promote sustainability going forward, how each initiative fits into that strategy, what impact these initiatives have on the business, or what financial impact they are having as a result. All the KPIs required for the real estate and development industry are fully covered. However, while certain characteristics and impacts can be inferred from the KPIs, it cannot be said that they reflect the connection to business strategy. For example, the metrics related to disaster response and regional revitalization, which are covered in the feature articles on this site, are not included, indicating a gap between the focus areas and the KPIs.

Higher-level principles, issue analyses, and stories may be needed first to promote group-wide sustainability. If it can clearly present the overall picture and challenges of its sustainability efforts, MIRARTH HOLDINGS should be able to create a sustainability site that is even more unique, and the persuasiveness of why particular data are important and why the Group focuses on specific activities will become more convincing.

Until now, sustainability information disclosure has basically been addressed as a response to ESG rating agencies. Going forward, it will be important to take a step further and highlight sustainability initiatives and information disclosure linked to each company’s business characteristics and strengths, as well as articulate a value creation story. These should essentially be presented as materiality. While many Japanese companies have defined materiality that integrates the ESG agenda in a balanced manner, there is little differentiation among them. In my opinion, this tendency also applies to the materiality of MIRARTH HOLDINGS.

The individual elements of the ESG disclosure are already in place, and a variety of interesting on-site activities are underway, as can be clearly seen from the sustainability site. The real challenge begins now as the company works to turn its sustainability initiatives into further value creation, lead the entire real estate and development industry toward sustainability as a pioneer, and realize its Purpose: “To design sustainable environments for a happier future for both people and our planet.”

Going forward, the Group is expected to clarify the sustainability strategy that includes the analysis of social issues and their link to its business operations, with a view to organizing and advancing its current positive initiatives as cohesive, unique sustainability efforts, without allowing them to remain fragmented.