1. Coexistence and mutual prosperity throughout the supply chain and scale
New collaboration beyond affiliations

By working with our direct business partners to influence their further business partners (from "Tier N" to "Tier N+1"), we aim to increase added value throughout the supply chain and build mutually beneficial relationships with our business partners through collaboration that goes beyond existing business relationships and corporate size. In doing so, we will also provide support to our business partners, such as by advising them on introducing teleworking and formulating BCPs (Business Continuity Plans), from the perspective of business continuity in the event of a disaster and work style reform.

① Collaboration between companies

Together with our business partners and other stakeholders, we will promote business activities that contribute to solving social issues, while also being mindful of increasing added value overall.

2. Compliance with the "Promotion Standards"

We will comply with desirable business practices between parent companies and subcontractors ("promotion standards" based on the Subcontracting Small and Medium Enterprises Promotion Act) and will actively work to correct business practices and trade practices that hinder the building of partnerships with business partners.

①Price determination method

We will not make unreasonable cost reduction requests. When determining transaction prices, we will hold consultations with subcontractors at least once a year and will reach a decision through sufficient consultation to ensure that the subcontractors' fair profits are achieved and that working conditions can be improved. In doing so, we will make decisions after appropriately taking the actions outlined in the "Guidelines for Price Negotiations for Appropriate Pass-On of Labor Costs." Furthermore, in the event of a rise in raw material or energy costs, we will aim to pass on the entire amount of the appropriate cost increase. Furthermore, when entering into a contract, including determining transaction prices, we will clearly state and provide the terms of the contract in writing.

② Payment terms for bills, etc.

Payment for transactions with subcontractors is made in cash.

③ Intellectual property and know-how

We will conduct transactions based on the "basic concepts" and "contract templates" set out in the "Guidelines for Intellectual Property Transactions," and will not require the conclusion of unilateral confidentiality agreements, the disclosure of know-how by exploiting our trading position, or the free transfer of intellectual property rights.

④ The impact of work style reforms, etc.

To help our business partners adapt to work style reforms, we will not place short-term orders or sudden changes to specifications without appropriate cost burdens on subcontractors. In the event of a disaster, we will not impose unilateral burdens on subcontractors in terms of transactions, and will give as much consideration as possible to continuing business relationships when business resumes.

3.Other (optional)

The Sumitomo Realty & Development Group is a group centered around the comprehensive real estate company of the Sumitomo Group (our parent company), which has a history of 430 years, and has inherited the Sumitomo business spirit of "valuing trust and not pursuing easy profits," and has adopted the slogan "Trust and Creativity" to express the group's corporate attitude toward stakeholders such as employees, customers, business partners, creditors, and shareholders. This slogan embodies our pride as a developer, valuing "trust" above all else, "not pursuing easy profits," and creating new value with a pioneering spirit.
Under the slogan "Creating better social assets and leaving them for future generations," the Sumitomo Realty & Development Group's fundamental mission is to maximize corporate value while addressing various social issues, including environmental issues, through each of its businesses. Based on this policy, we strive to promote the spread of our partnership building declaration throughout the supply chain, including our direct business partners, in order to ensure mutual coexistence and prosperity throughout the supply chain in which we are involved. Furthermore, based on our Sustainable Procurement Guidelines, which advocate compliance with laws and regulations, respect for human rights, the establishment of corporate ethics, and environmental conservation, we work with our business partners to realize a sustainable society throughout the supply chain. Furthermore, to identify and correct compliance issues in transactions, we conduct appropriate investigations under the leadership of our Internal Audit Department and have established a consultation desk for business partners.

October 2, 2024
(Updated on September 17, 2025)

Sumitomo Realty Villa Fontaine Co., Ltd.
President and CEO Tomoyuki Komori