Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Biodiversity
• Tenant Well-being
• Workforce Diversity
• Governance
• Stakeholder Engagement

Environmental Achievements

• Reduced CO2 emissions by 30.46% from FY2019 to FY2021
• Reduced water intensity by 29.63% from FY2019 to FY2021
• Achieved 75.0% green building certification portfolio coverage
• Switched to renewable electricity at properties with 100% operational control by September 2022
• Acquired second ZEB Ready Certification

Social Achievements

• Increased tenant satisfaction level to 80% after refurbishment of JRE Shiba 2Chome Daimon Building
• Implemented various initiatives to increase tenant satisfaction and sustainability
• Implemented measures to promote employee physical and mental health and work-life balance
• Achieved 100% response rate in employee satisfaction survey with a 4.4 rating (5-point scale)

Governance Achievements

• Established ESG Office in 2018
• Became a signatory to the UN Principles for Responsible Investment (PRI) in 2018
• Became the first J-REIT to disclose information based on TCFD recommendations in 2019
• Achieved ISS ESG Corporate Rating Prime status in March 2020
• Implemented sustainability-linked loans (SLLs), a first in the J-REIT industry

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Supply chain disruptions
• Maintaining high levels of tenant satisfaction
• Ensuring employee well-being
• Managing risks related to natural disasters

Mitigation Strategies

• Set ambitious CO2 emission reduction targets (80% by FY2030, net-zero by FY2050) approved by SBTi
• Joined RE100 to promote renewable energy use
• Implemented various measures to improve building resilience to natural disasters
• Introduced green leases and sustainability guides for tenants
• Implemented various employee well-being initiatives
• Established robust risk management and compliance systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Flooding
• Heatwaves

Transition Risks

• Increased regulations on CO2 emissions
• Changes in tenant preferences
• Increased costs of compliance

Opportunities

• Green finance
• Increased investment appetite from ESG-conscious investors
• Improved property value and competitiveness

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ZEB Ready, DBJ Green Building, CASBEE, BELS

Third-party Assurance: Ernst & Young ShinNihon LLC (limited assurance on environmental performance data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

• Model Cases in the Model Creation Projects on Sustainability-Linked Loans 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Biodiversity
• Tenant Well-being
• Workforce Diversity
• Governance

Environmental Achievements

• Reduced CO2 emissions by 75.25% (vs FY2019)
• Reduced CO2 intensity by 75.49% (vs FY2019)
• Increased renewable energy rate to 63.31% (FY2023)
• 76.4% of portfolio green certified (as of March 2024)
• Achieved an 'A-' rating in CDP Climate Change Program
• Net-zero targets approved by SBTi

Social Achievements

• Revamped personnel system to improve employee retention and recruitment
• Introduced a fully flextime system
• Employee satisfaction level of 4.3 (5-point scale) in FY2023
• Implemented DEI initiatives
• Supported local community events

Governance Achievements

• Established Sustainability Committee
• Implemented robust risk management and compliance systems
• Awarded 'Prime Status' by ISS ESG Corporate Rating
• Received a score of 11.4 (Low Risk) in Sustainalytics ESG Risk Ratings
• Achieved a 4-Star GRESB Real Estate Assessment rating

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition)
• Potential for stranded assets due to climate change
• Flood risks
• Maintaining high occupancy rates

Mitigation Strategies

• Set CO2 emission reduction targets (80% by FY2030, net-zero by FY2050)
• Increased renewable energy usage
• Implemented energy-efficient renovations
• Developed flood countermeasures
• Incorporated ESG criteria into property acquisition
• Utilized green finance (sustainability-linked loans)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Typhoons
• Heatwaves

Transition Risks

• Strengthening GHG emission regulations
• Increased carbon taxes
• Shifting tenant preferences towards green buildings

Opportunities

• Green finance opportunities
• Increased demand for energy-efficient buildings
• Rent premiums for green-certified properties

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards

Certifications: CASBEE, DBJ Green Building, BELS, ZEB Ready, ZEB Oriented

Third-party Assurance: Ernst & Young ShinNihon LLC (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

• ESG Finance Award
• Incentive Prize at the Heat Pump & Thermal Storage Technology Center of Japan Awards