Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Completed shift to renewable energy for all 106 properties (excluding certain exceptions), resulting in a 97.3% reduction in CO2 emissions compared to 2020.
• Completed LED lamp switchover in 112 out of 114 properties.
• Adoption of FSC paper and vegetable oil-based ink for investor documents.

Social Achievements

• Achieved 70% or higher paid leave acquisition rate.
• Conducted environmental training for all PM companies.
• Supported local restaurants by subsidizing employee meals.

Governance Achievements

• Completed corporate ethics training for all executives and employees.
• Created a BCP system including pandemic response.
• Published ESG report.

Climate Goals & Targets

Environmental Challenges

• Lowered evaluation by tenants and investors using sustainability as an assessment basis.
• Decreased tenant sales and increased property damage due to climate change.
• Decline in creditworthiness and investor evaluation due to insufficient ESG performance.

Mitigation Strategies

• Improving environmental performance of properties to reduce operating costs and increase tenant satisfaction.
• Implementing disaster preparedness measures to minimize damage.
• Improving transparency and fostering trust through ESG initiatives and external certifications.

Supply Chain Management

Supplier Audits: Annual ESG training for PM and BM companies

Responsible Procurement

• ESG training for supply chain partners

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of typhoons and heavy rainfall, frequent heat waves and droughts, rising sea levels

Transition Risks

• Shift to a decarbonized society and economy, tightening of emission control regulations

Opportunities

• Reduced energy-related expenditure, improved evaluation by environmentally conscious tenants and investors

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: GRESB, DBJ Green Building, CASBEE, BELS, SMBC Sustainable Building Assessment Loan System

Awards & Recognition

• GRESB Green Star (five consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmentally friendly business operations
• Climate change mitigation
• Adapting to climate change
• Tenant security and peace of mind
• Contributing to local communities
• Creating a rewarding work environment
• Corporate ethics
• Governance

Environmental Achievements

• Completed shifting power used in all properties to renewable energy-derived (December 2021)
• Approved TCFD proposal (December 2021)
• Adopted FSC paper and vegetable oil-based ink (August 2021)
• Compliance with Eco Action 21 guidelines (May 2024)

Social Achievements

• Conducted environmental training for PM Companies (annually)
• Practiced health management including improving working environment, stress checks, employee satisfaction surveys, and achieving a paid leave acquisition rate at 70% or higher (Completed March 2022)
• Acquired "Excellent Health Company Gold Certification" (June 2023)

Governance Achievements

• Created BCP system including pandemic response (April 2022)
• Wrote and published ESG report (May 2022)
• Conduct corporate ethics training (quarterly)

Climate Goals & Targets

Environmental Challenges

• Lowered evaluation by tenants and investors using sustainability as assessment basis
• Decreased tenant sales and increased property damage due to climate change
• Delay in response to tighter environmental regulations and increased energy costs
• Decreased tenant satisfaction
• Move-outs due to decline in tenant satisfaction, decrease in rental revenue
• Greater damage and increased recovery cost in the event of a disaster
• Decreased creditworthiness due to deteriorating relations with the community
• Reduced transparency fostering distrust
• Decline in operational capacity due to human resource outflow
• Decline in J-REITs status as an investment product
• Decline in creditworthiness and investors' evaluation
• Decline in evaluation by sustainability-focused investors
• Reduced motivation for portfolio management

Mitigation Strategies

• Improve environmental performance of owned properties to reduce operating costs and improve evaluation by environmentally conscious tenants and investors
• Reduce energy-related expenditure
• Increase tenant satisfaction and increase demand for rentals
• Minimize human and material damage and lower recovery cost in the event of a disaster
• Strengthen relationships with local community to increase creditworthiness and improve the value of the area
• Improve transparency and foster trust
• Secure talented human resources and enhance employees' skills
• Improve the status of J-REITs as an investment product
• Improve investors' evaluation of sound operational systems and enhance credibility
• Improve investors' evaluation through recognition of broad-ranging initiatives and improvement in external assessment
• Improve motivation for portfolio management

Supply Chain Management

Responsible Procurement

• FSC paper
• Vegetable oil-based ink

Climate-Related Risks & Opportunities

Physical Risks

• Flood control measures

Transition Risks

• Tighter environmental regulations
• Increased energy costs

Opportunities

• Reduce operating costs by improving environmental performance
• Reduce energy-related expenditure
• Increase tenant satisfaction

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Excellent Health Company Gold Certification