Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Diversity & Inclusion
• Innovation
• Resilience

Environmental Achievements

• CO2 emissions reduction of 35% by 2030 (vs. FY2018), 87% by 2050 (vs. FY2018). Marunouchi Bldg. Fuel Cell System installed, reducing CO2 emissions by 50% vs grid power.
• Waste recycle rate of 90% by 2030 (vs. 45.5% in FY2019)
• Renewable energy rate of 25% by 2030, 100% by 2050 (vs. 1.3% in FY2019)

Social Achievements

• 100% paternity leave utilization and 100% retention post-parental leave by 2030
• 100% of buildings to take in stranded commuters by 2030 (vs. 92% in FY2019)
• 5% increase in PTO utilization by 2021 (vs. 66% in FY2018)

Governance Achievements

• Transitioned to a “Company with Nominating Committee, etc.” in June 2016
• Non-renewal of anti-takeover measure in June 2019
• Executive compensation plan aims to align shareholders and executives’ interests

Climate Goals & Targets

Environmental Challenges

• Environmental regulations' impact on development opportunities
• Increased country, compliance, and supply chain risks
• Aging and vacant buildings causing security issues
• Working age population decline changes demand for fixed offices
• Reduced demand for physical facilities due to new work styles

Mitigation Strategies

• Develop sustainable communities to address climate change and environmental problems
• Build strong and resilient communities that prioritize security, peace, and disaster protection
• Enable people of all backgrounds to thrive by building communities adaptive to varying lifestyle needs
• Create innovative cities that birth innovative ideas
• Optimize investments, assets sales, shareholder return and financing according to market conditions

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Urban development and services
• The global environment
• Respect for people
• Value creation

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 52.9%, and Scope 3 emissions by 42.4% compared with fiscal 2019. Total emissions: 2,277,376 t-CO2 (down 43.6%)
• Achieved 55.4% renewable energy share.
• 99.94% of timber procurement from countries with low risk of illegal logging.
• Miyako Shimojishima Airport obtained Zero Energy Building (ZEB) Ready certification.

Social Achievements

• Launched initiatives to support diversity, equity, and inclusion (DE&I), including endorsing the Women’s Empowerment Principles (WEPs).
• Established a consultation and grievance contact service for non-Japanese workers at construction sites.
• Developed 20 properties in the Tokyo Metropolitan area as healthcare assets for seniors.
• Developed seven residences for students since 2018.

Governance Achievements

• Revised officer remuneration system to improve linkage with Long-Term Management Plan 2030 targets.
• Increased the proportion of outside directors on the Board of Directors to 50%.
• Conducted a third-party evaluation of the Board of Directors’ effectiveness.
• Endorsed the Women’s Empowerment Principles (WEPs).

Climate Goals & Targets

Environmental Challenges

• Steep rise in construction material costs and increasing utility costs due to inflation.
• Potential decline in consumer demand due to rising prices.
• Declining office demand due to the spread of various workstyles.
• Increasing competition among different areas resulting from the supply of a large volume of office space.
• Changing consumer behavior reflecting the spread of e-commerce.
• Labor shortages due to the turnover of human resources during COVID-19.
• Intensifying competition for land acquisition due to the entry of new players.

Mitigation Strategies

• Enhancement of the appeal of cities through area development.
• Introduction of the latest technologies and promotion of environment-friendly office buildings.
• Expansion in demand stemming from the recovery of inbound tourism.
• Reduction of labor and improvements in operational efficiency by increasing the use of IT and IoT.
• Provision of experiential value tailored to diversifying customer needs.
• Creation of offices offering value unique to in-person environments.
• Provision of flexible working spaces tailored to a variety of workstyles.
• Increasing logistics needs resulting from expansion in e-commerce demand.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Sourcing Code for concrete formwork panels
• Mitsubishi Estate Group Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural and man-made disasters

Transition Risks

• Substantial rises in material prices
• Fluctuations in exchange rates
• Increases in interest rates

Opportunities

• Acquisition of business opportunities through utilization of existing building stock.
• Enhanced investor engagement and increased stock market presence through proactive information disclosure.

Reporting Standards

Frameworks Used: TCFD, SASB, GRESB

Certifications: LEED, WELL, ZEB Ready, ZEH-Oriented

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZEB-certified buildings
• ZEH-Oriented condominiums

Awards & Recognition

• Minister of Economy, Trade and Industry Award at the 31st Nikkei New Office Award ceremony