HEALTH AND PRODUCTIVITY MANAGEMENT

Occupational Health and Safety Policy and Health and Productivity Management Declaration

Policy

In pursuit of the steady growth of assets under management and sustainable profit, we seek to achieve “Employee Health & Fulfillment in Life” as written in our philosophy by putting the livelihoods and health of our employees and their families first and helping them achieve personal fulfillment. We seek to build a workplace environment where every employee is able to be physically and mentally healthy, demonstrate their capabilities and individuality and communicate in a lively manner.

Health and productivity management declaration

Health and productivity management is a set of behaviors that are in the best long-term interests of our company and our stakeholders. The improvement of employees’ vitality and productivity revitalizes the entire organization. Based on this understanding, we promote health and productivity management so that the entire organization can understand health and productivity management and so that we are able to act accordingly.

Our Health Management System

Health and Productivity Management Strategy Map

As the asset management company of HEIWA REAL ESTATE REIT, Inc., a Japan real estate investment trust (“J-REIT”), we aim to achieve steady growth in management assets and stable, medium- to long- term profit. In the past, we struggled to address issues, such as presenteeism and low work engagement caused by long overtime hours and low utilization of paid leave. In response to increasing social demands for work style reform and health and productivity management, we have been committed to creating a working environment for our employees to be able to work for the long term with peace of mind, through a number of proactive measures as part of our management plan. By participating in the Health Company Declaration and the Certified Health & Productivity Management Outstanding Organizations Recognition Program, we have reaffirmed that health and productivity management plays a crucial role in solving business challenges. We have developed systems and policies to meet the certification criteria as a benchmark. Our key performance indicators (KPIs) also focus on improving employee presenteeism and enhancing work engagement. We ensure that our health and productivity management initiatives will empower our executives and employees to achieve their maximum potential, reach our management objectives, and enhance our corporate value.

Major Initiatives

We encourage health management and the improvement of work environments so that employees feel secure working for the long term. We try to enable every employee to stay up to date on their physical and mental health and take care of themselves.

Improvement of the office environment

  • Rest areas have been made available and a hot desking system has been introduced to reduce work-related stress and stimulate communication.

Health management via third-party institutions

  • Health surveys
    We conduct monthly surveys to monitor our organizational conditions from three different perspectives: mental health, physical health, and engagement, with an average response rate of 99% in FY2024. We also conduct annual surveys to evaluate our ESG measures, such as mental and physical health, engagement, work, interpersonal and organizational relationships, and understanding of the organization, with a 100% response rate in FY2024.
  • Health consultation service established
    Our health insurance association’s health counseling hotline is available 365 days a year, 24 hours a day, to discuss physical and mental health concerns and worries over the phone.

Our unique special leave programs

We have introduced unique special leave programs in addition to congratulatory and condolence leave, maternity leave and childcare and nursing care leave. Building an environment that enables each employee to balance work and their personal life in accordance with their life stage leads to employees being physically and mentally healthy and enables them to demonstrate their capabilities while increasing labor productivity.

Item Overview
Summer Vacation Separately from annual paid leave, five days of summer vacation may be taken during the summer every fiscal year.
Plus One Leave If an employee takes two or more consecutive days of annual paid leave for, it may be extended to three or more days by adding an extra day-off right before or after the consecutive paid leave days. (once/year)
Rollover Leave Unused annual paid leave that is expiring may be rolled over for up to 90 days for reasons such as the treatment of illness, supporting family members, fertility treatment, social services and hospital visits for life care that is unique to women.

No-overtime days

The first and third Fridays of every month are no-overtime days.
In FY2024, the yearly average rate of leaving the office at the fixed time was 73.5%. (If an employee left the office within 30 minutes after the regular leaving time, it was regarded as not being overtime.)

Mental healthcare programs

  • Stress checks
    We conduct stress checks once a year with to prevent mental health issues from occurring.
  • Mental healthcare training
    In addition to inviting instructors to teach, we use e-learning programs to train people in mental healthcare and line care.

In FY2024, we offered the following rank-specific training programs taught by external speakers:

  • Mental Healthcare and Line Care Training: 1-on-1 Communication Training for Managers to Reenforce Self-esteem, which had an 88.2% participation rate
  • Mental Healthcare and Self-Care Training: Familiar Self-care and Relationships with Surrounding People for non-managers, which had a 95.4% participation rate

Initiatives for the reduction of opportunities to smoke

We provide education on the health impact of cigarettes and implement initiatives to reduce smokers’ opportunities to smoke.

  • Smoking is prohibited during morning work hours
  • Smoking is prohibited during work hours on World No Tobacco Day, May 31
  • Smoking is prohibited during work hours on the 22nd days of August, November and February
  • Subsidizing smoking cessation outpatient treatment
    Introduction of subsidies for out-of-pocket payments (upper limit: 30,000 yen, one-time per person)

HAM Wellness Action Supporters' activities

With the goal of encouraging employees’ participation in our employee health promotion and communication stimulation programs, our young colleagues who take a health promotion trainer certification course become HAM Wellness Action Supporters(hereinafter “Aster”). Health promotion trainers measure self-sustained movement.

Activities during FY2024

  • Self-sustained movement measurement (82.5% participation rate)
  • Stairs exercise (November 2024 - February 2025)
  • Sports event (Igoball, 73.2% participation rate)
Photos from the measurement of self-sustained movement

Physical fitness is measured to examine employees' daily lives to extend their healthy life expectancy. Officers also participated in these training programs.

  • Photos from the measurement of self-sustained movement
  • Photos from the measurement of self-sustained movement
  • Photos from the measurement of self-sustained movement
Igoball sports event

Our officers and employees participated in Igoball, a sport that uses the brain and the body, with the cooperation of the Japan Igoball Association.

  • Igoball sports event
  • Igoball sports event
  • Igoball sports event

Other initiatives

  • Checkup assistance (assistance for various cancer screenings, PET-CT scans, brain scans, cardiac examinations, thyroid gland function tests, bone density tests, allergy tests, subsidies for checkups for dependent spouses)
  • Installation of a health bulletin board and communicating information (once a month)
  • Providing health apps
  • Employee cafeteria offering safe and environmentally-friendly frozen meals
  • Introduction of the thank-you card tool for conveying gratitude
  • Improvement of the workplace environment using aromas and background music (installation of a diffuser, playing background music in rest areas)
  • Streamlining work using RPA and a chatbot

External Recognition

Certified Health and Productivity Management Outstanding Organization 2025 (small and medium-sized corporations (Bright 500)), Health Company Declaration Gold Certification, Sports Yell Company 2025 certification

We have been certified by the Ministry of Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi under their Certified Health and Productivity Introduction of the thank-you card tool for conveying gratitude Management Outstanding Organization program in 2025 in the small- and mid-sized enterprise category (Bright 500). In March 2025 first time we have been Bright 500 certified, although we have been continuously certified in this category since March 2019.
We also renewed our “Health Company Declaration (Health Company Certification Program) Gold” certification in 2025, which is operated by the Tokyo Council for the Promotion of Health Company Declaration.
In 2025, we were certified as a Sports Yell Company in a program that the Japan Sports Agency certifies companies proactively implementing initiatives to support and promote sports activities to promote the health of employees.

  • External Recognition
  • External Recognition
  • External Recognition

Eruboshi (Second Stage) certification

We have received Eruboshi (Grade 2) certification as we developed a general employer action plan based on the Act on Promotion of Women’s Participation and Advancement in the Workplace (APWPAW) and submitted an application.

Eruboshi

Health and Productivity Management KPIs

This table can scroll to the left or right.

Item FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 targets
Physical Percentage of employees undergoing medical checkups 100.0% 100.0% 100.0% 100.0% 100.0% Maintain 100%
Reduce the number of employees eligible for specific healthcare guidance 18.2% 14.3% Kept at 20% or lower
Reduce the percentage of employees who smoke*1 18.4% 18.9% 20.0% Not more than the previous fiscal year
Participation rate in self-sustained movement measurement 82.0% 82.5% Kept at 80% or higher
Mental Percentage of employees who receive stress checks 91.2% 94.4% 100.0% 100.0% 100.0% Kept at 90% or higher
Companywide overall deviation in the survey*2 53 54 Aim to achieve 54 or more
Work
engagement
Annual paid leave acquisition rate 73.3% 81.9% 90.4% 91.4% 95.5% Kept at 70% or higher
Percentage of summer vacation taken 95.7% 100.0% 100.0% 100.0% 100.0% Maintain 100%
Percentage of Plus One Leave taken*3 46.7% 51.6% 84.4% 100.0% 100.0% Maintain 100%
Decrease the percentage of employees who work 45 hours or more of overtime monthly 1.4% 8.2% 5.6% 4.9% 1.5% Keep it within 5%
Participation rate in events organized by Aster*4 62.5% 77.8% Target: 75% or higher
Percentage of employees' dependent spouses who are 35 years old or older that receive checkups 33.3% 50.0% 62.5% 50.0% Percentage of employees who have received a medical check-up 50%
  • Percentage of all officers and employees who smoke in each fiscal year as identified by a health survey
  • Comparative deviation from all industries using the survey services of a private-sector provider.
  • Plus One Leave is special leave that may be taken by adding one day-off before or after two or more consecutive days of annual paid leave. (May be taken once a fiscal year)
  • Excluding the self-sustained movement measurement