Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Conservation and Measures for Prevention of Global Warming
• Circular Economy Practices
• Enhancement of Customer (Tenant/User) Satisfaction
• Disclosure of Information to and Dialogue with Stakeholders
• Motivating Work Environment
• Contribution to Local Communities
• Strengthening of Governance

Environmental Achievements

• Reduced energy use intensity by 19.2% relative to 2018.
• Reduced GHG emissions intensity by 14.9% relative to 2018.
• Introduced LED lighting at 82.5% of properties (by number of properties).
• Achieved a 27.8% green building certification acquisition rate by the end of 2019.

Social Achievements

• Conducted tenant satisfaction surveys.
• Implemented initiatives in consideration for the well-being and safety of customers.
• Implemented initiatives in consideration for the comfort of customers.
• Conducted periodic career interviewing with 100% participation in 2018 and 2019.
• Conducted employee satisfaction surveys (President Questionnaire) with 100% response rate in 2019.

Governance Achievements

• Established a Sustainability Committee.
• Established a Compliance Committee with outside experts.
• Introduced a system of incentive bonuses partially linked to cash distributions per investment unit for employees and officers.
• Introduced performance-linked compensation for main officers of Hulic REIT Management, linked to the relative performance of Hulic Reit’s investment unit price.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, GRESB, SDGs

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Star rating in GRESB Real Estate Assessment (three consecutive years)
• 4-Star rating in GRESB Rating (three consecutive years)
• A rating in GRESB Public Disclosure

Environmental Metrics

ESG Focus Areas

• Energy Conservation and Climate Change Countermeasures
• Circular Economy Practices
• Customer (Tenant/User) Satisfaction
• Disclosure of Information to and Dialogue with Stakeholders
• Motivating Work Environment
• Contribution to Local Communities
• Strengthening of Governance

Environmental Achievements

• Reduced GHG emissions intensity by 30.5% relative to 2018.
• Achieved a 64.1% green building certification acquisition rate for the entire portfolio (based on the number of properties) as of the end of June 2022.
• Achieved a 79.8% green building certification acquisition rate for Tokyo Commercial Properties (based on gross floor area) as of the end of June 2022.

Social Achievements

• Conducted tenant satisfaction surveys with a majority of respondents indicating overall satisfaction.
• Implemented initiatives to prevent the spread of coronavirus.
• Implemented safety measures including evacuation drills and installation of emergency supplies and AEDs.

Governance Achievements

• Received a “5-Star” rating in the GRESB Real Estate Assessment for the second consecutive year.
• Continuously included in the MSCI Japan ESG Select Leaders Index since July 2017.
• Established a robust compliance structure including a Compliance Committee and Compliance Officer.

Climate Goals & Targets

Environmental Challenges

• Climate-related transition risks (carbon tax, ZEB adaptation costs, disclosure requirements),
• Climate-related physical risks (increased damage from severe weather events)
• Maintaining competitiveness in a changing market.

Mitigation Strategies

• Pursuing initiatives to reduce GHG emissions (photovoltaic equipment, natural ventilation, etc.)
• Pursuing ZEB adaptation work
• Strengthening compliance with climate change-related regulations
• Improving green building certification acquisition rate
• Enhancing BCP implementation
• Considering wind and water damage risks when acquiring properties

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased damage from severe wind and rain
• Increased operating costs due to higher average temperatures
• Increased insurance premiums

Transition Risks

• Increased operating costs due to carbon tax
• Increased adaptation costs due to ZEB regulations
• Increased burden/penalty risks due to tighter regulations
• Decreased competitiveness due to less favorable assessment from customers and investors

Opportunities

• Increased demand for environmentally certified buildings
• Decreased financing costs
• Increased opportunities to use public-institution incentives
• Reduction of running costs due to energy-saving technologies

Reporting Standards

Frameworks Used: GRI Standards

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through energy conservation, sustainable urban development, and climate change mitigation.

Awards & Recognition

• GRESB 5-Star rating
• GRESB Public Disclosure 'A' rating

Environmental Metrics

ESG Focus Areas

• Energy Conservation and Climate Change Countermeasures
• Circular Economy Practices
• Enhancement of Customer (Tenant/User) Satisfaction
• Disclosure of Information to and Dialogue with Stakeholders
• Motivating Work Environment
• Contribution to Local Communities
• Strengthening of Governance

Environmental Achievements

• Reduced energy consumption intensity by -36.4% relative to 2018 figures by the end of 2022.
• Reduced GHG emissions intensity by -26.3% relative to 2018 figures by the end of 2022.
• Achieved a green building certification acquisition rate exceeding the target for both the entire portfolio and Tokyo Commercial Properties by the end of June 2023 (71.8% and 70% respectively).

Social Achievements

• Conducted tenant satisfaction surveys resulting in high overall satisfaction rates.
• Implemented various initiatives to enhance customer well-being, safety, and comfort.
• Maintained 100% employee participation in medical checkups.

Governance Achievements

• Increased the number of supervisory officers to three (one male and two female), increasing the percentage of female officers to 50%.
• Introduced a compensation system linked with the performance of Hulic Reit’s investment unit price for main officers of Hulic REIT Management.
• Established a Compliance Committee with outside experts and a Compliance Hotline.

Climate Goals & Targets

Environmental Challenges

• Increased operating costs due to carbon tax and ZEB adaptation.
• Increased burden/penalty risks due to disclosure requirements/tighter regulations.
• Decreased competitiveness due to less favorable assessment from customers and investors.
• Increased damage due to more severe wind and rain.
• Increased operating costs due to higher average temperatures.
• Increased insurance premiums due to environmental changes.

Mitigation Strategies

• Pursuing initiatives aimed at reducing GHG emissions.
• Pursuing ZEB adaptation work and reducing long-term utility costs.
• Strengthening compliance with climate change-related regulations and strengthening initiative-related disclosure.
• Improving the green building certification acquisition rate and pursuing conversion to electricity from renewable energy.
• Enhancing BCP implementation and considering wind and water damage risks when acquiring properties.
• Reducing utility costs by adopting photovoltaic equipment, natural ventilation systems, and greening systems.
• Conducting periodic disaster risk assessments and enhancing BCP implementation.

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy requiring compliance with laws, regulations, social norms, respect for human rights, environmental considerations, and fair business transactions.

Climate-Related Risks & Opportunities

Physical Risks

• Increased damage due to more severe wind and rain
• Increased operating costs due to higher average temperatures

Transition Risks

• Increased operating costs due to carbon tax
• Increased costs to adapt to the introduction of ZEB/environmental construction regulations
• Increased burden/penalty risks due to disclosure requirements/tighter regulations
• Decreased competitiveness due to less favorable assessment from customers and investors

Opportunities

• Increased demand for environmentally certified/low-carbon buildings and real estate
• Decreased financing costs due to obtaining favorable assessment from investors
• Increased opportunities to use public-institution incentives
• Reduction of running costs due to introduction of energy-recycling/saving technologies

Reporting Standards

Frameworks Used: GRI Standards (2021)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)

Initiatives contribute to these goals through energy conservation, green building certifications, urban redevelopment, and community engagement.

Awards & Recognition

• GRESB Real Estate Assessment 5-Star rating (three consecutive years)
• GRESB Public Disclosure 'A' rating (four consecutive years)
• Global and Regional Sector Leader in GRESB Real Estate Assessment
• Inclusion in MSCI Japan ESG Select Leaders Index

Environmental Metrics

ESG Focus Areas

• Energy Conservation and Climate Change Countermeasures
• Circular Economy Practices
• Enhancement of Customer (Tenant/User) Satisfaction
• Disclosure of Information to and Dialogue with Stakeholders
• Motivating Work Environment
• Contribution to Local Communities
• Strengthening of Governance

Environmental Achievements

• Reduced GHG emissions intensity for the entire portfolio by -36.5% relative to 2018 figures.
• Reduced energy consumption intensity for the entire portfolio by -25.9% relative to 2018 figures.
• Achieved 60.5% green building certification acquisition rate for the entire portfolio and 82.5% for Tokyo Commercial Properties as of June 2024.
• Installed photovoltaic equipment at 13 properties.
• Introduced electricity from renewable energy sources to 21 properties.

Social Achievements

• Conducted tenant satisfaction surveys with a majority of respondents indicating overall satisfaction.
• Implemented initiatives to improve customer well-being, safety, and comfort (e.g., routine cleaning, evacuation drills, emergency supplies).
• Contributed to local communities through initiatives such as providing multi-purpose halls for regional events and participating in community cleanup activities.

Governance Achievements

• Increased the number of supervisory officers to three (one male and two female), resulting in 50% female representation.
• Established a robust compliance structure including a Compliance Committee and Compliance Officer.
• Introduced a performance-linked compensation system for main officers of Hulic REIT Management, partially tied to Hulic Reit’s investment unit price.

Climate Goals & Targets

Environmental Challenges

• Transition risks (carbon tax, ZEB adaptation costs, stricter regulations),
• Physical risks (increased damage from severe weather events),
• Reputation risks (decreased competitiveness due to less favorable assessment from customers and investors).

Mitigation Strategies

• Pursuing initiatives aimed at reducing GHG emissions and adopting environmentally friendly technologies.
• Pursuing ZEB adaptation work and reducing long-term utility costs.
• Strengthening compliance with climate change-related regulations and strengthening initiative-related disclosure.
• Improving the green building certification acquisition rate and pursuing conversion to electricity from renewable energy sources.
• Enhancing BCP implementation and considering wind and water damage risks when acquiring properties.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR Procurement Policy implemented, focusing on environmental, social, and governance considerations.

Climate-Related Risks & Opportunities

Physical Risks

• Increased damage from severe wind and rain
• Increased operating costs due to higher average temperatures
• Increased insurance premiums due to environmental changes

Transition Risks

• Increased operating costs due to carbon tax
• Increased costs to adapt to ZEB regulations
• Increased burden/penalty risks due to disclosure requirements/tighter regulations
• Decreased competitiveness due to less favorable assessment from customers and investors

Opportunities

• Increased demand for environmentally certified/low-carbon buildings
• Decreased financing costs due to favorable assessment from investors
• Increased opportunities to use public-institution incentives
• Reduction of running costs due to energy-recycling/saving technologies

Reporting Standards

Frameworks Used: GRI Standards (2021), TCFD

Certifications: Null

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

UN Sustainable Development Goals

• 7, 11, 13

Initiatives contribute to SDGs through energy conservation, urban development, and climate action.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB 5-Star rating for four consecutive years.
• GRESB 'A' rating for public disclosure for five consecutive years.

Environmental Metrics

ESG Focus Areas

• Environmental

Environmental Achievements

• Green Building Certification Acquisition Rate exceeded targets for both the entire portfolio (71.8%) and Tokyo Commercial Properties (70.7%) as of the end of June 2024. Original targets were 50% and 60% respectively by the end of 2025.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities