Climate Change Data

ORIX JREIT Inc.

Climate Impact & Sustainability Data (2019-04 to 2020-03, 2020-04 to 2021-03, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:51,160 tCO2 (2019)
Scope 1 Emissions:657 tCO2 (2019)
Scope 2 Emissions:13,504 tCO2 (2019)
Scope 3 Emissions:36,999 tCO2 (2019)
Renewable Energy Share:Not disclosed
Total Energy Consumption:141,348 MWh (2019)
Water Consumption:220,000 m3 (2019)
Waste Generated:5,930 tons (2019)
Carbon Intensity:0.07628 Kl/㎡ (2019)

ESG Focus Areas

  • Climate Change
  • Resource Management
  • Waste Management
  • Water Resources
  • Biodiversity
  • Health, Safety, and Well-being of Customers
  • Human Rights
  • Workforce Diversity
  • Stakeholder Engagement
  • Compliance
  • Risk Management

Environmental Achievements

  • Reduced CO2 emission intensity by 12% in 2030 compared to 2018 (target)
  • Reduced average annual energy consumption intensity by 1% or more (target)
  • Achieved green certification for over 70% of floor space by 2030 (target)
  • Maintained landfill disposal rate at 1% or less
  • No increase in water use compared to the previous year (target)
  • Renewable energy generation from solar panels at Iwatsuki Logistics Center and Cross Garden Kawasaki
  • Acquired various green building certifications (DBJ, CASBEE, BELS) for multiple properties

Social Achievements

  • Improved tenant satisfaction from 84% to 89%
  • Implemented safety measures including evacuation drills and flood prevention installations
  • Community engagement through events and sponsorships
  • Donated carbon credits for the Tokyo 2020 Games
  • Improved accessibility and convenience for tenants (e.g., bicycle sharing, common rest spaces)
  • Implemented initiatives to support people with disabilities at Hotel Nikko Himeji
  • Introduced green lease clauses in new agreements

Governance Achievements

  • Established a Sustainability Committee
  • Revised ESG policy based on materiality assessment
  • Joined TCFD and UNEP FI
  • Included in MSCI Japan ESG Select Leaders Index
  • Established robust compliance systems and internal controls
  • Implemented a whistleblower system
  • Appointed independent supervisory officers to strengthen oversight

Climate Goals & Targets

Long-term Goals:
  • Recognize the Paris Agreement and Japan’s reduction targets (80% reduction by 2050)
Medium-term Goals:
  • Reduce CO2 emission intensity by 12% in 2030 compared to 2018
  • Achieve green certification for over 70% of floor space by 2030
Short-term Goals:
  • Reduce average annual energy consumption intensity by 1% or more
  • Maintain landfill disposal rate at 1% or less
  • No increase in water use compared to the previous year

Environmental Challenges

  • Climate change related physical risks (typhoons, floods)
  • Climate change related transition risks (increased costs, business restrictions)
  • Data limitations in waste management due to the COVID-19 pandemic
Mitigation Strategies
  • Implementing mitigation and adaptation strategies to address climate change risks
  • Improving energy efficiency and promoting renewable energy use
  • Conducting due diligence on properties to assess climate-related risks
  • Collaborating with tenants on energy conservation initiatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ESG Guidelines for Procurement and Other Transactions
  • Prioritizing environment- and health-friendly products and services
  • Requesting business partners to comply with ESG standards

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Heavy rains
  • Floods
Transition Risks
  • Increased costs
  • Business restrictions
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Green Star in GRESB Survey
  • 4-star in GRESB Real Estate Assessment
  • A in GRESB Public Disclosure evaluation

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:78,936 t-CO2 (2020)
Scope 1 Emissions:784 t-CO2 (2020)
Scope 2 Emissions:17,644 t-CO2 (2020)
Scope 3 Emissions:60,508 t-CO2 (2020)
Renewable Energy Share:Not disclosed
Total Energy Consumption:132,584 MWh (2020)
Water Consumption:178,000 m3 (2020)
Waste Generated:7,827 tons (2020)
Carbon Intensity:0.07110 t-CO2/㎡ (2020)

ESG Focus Areas

  • Climate Change
  • Waste Management
  • Water Resource Management
  • Human Rights
  • Health and Safety
  • Governance
  • Stakeholder Engagement

Environmental Achievements

  • Reduced CO2 emission intensity by 14% from 2018 levels by 2020
  • Increased green building certification GFA coverage ratio to 76% in 2020
  • Reduced energy consumption intensity by 8% from 2018 levels by 2020
  • Maintained landfill disposal rate at 1.44% in 2020
  • Reduced water use to 178,000 m3 in 2020
  • Iwatsuki Logistics Center generated 188,986 kWh of renewable energy in 2020 (approx. 15% of annual demand)

Social Achievements

  • Improved tenant satisfaction to 87% in 2020
  • Implemented various safety measures, including evacuation drills and flood prevention measures
  • Donated carbon credits for the Tokyo 2020 Games
  • Conducted ESG training for 100% of property managers
  • Converted smoking rooms to meeting booths in ORE Sapporo Building
  • Set up shared telework spaces in residential properties
  • Updated elevator buttons to be contactless in several properties
  • Installed a bicycle sharing system at MG Ichigaya Building

Governance Achievements

  • Established Guidelines for ESG Investment and Management
  • Revised ESG policy and related guidelines
  • Conducted TCFD scenario analysis
  • Established a Sustainability Committee
  • Maintained 100% compliance with anti-corruption regulations in 2020
  • Implemented a multi-layered risk management system

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emission intensity by 35% from 2018 levels by 2030
  • Achieve green certification for over 70% of floor space by 2030
  • Maintain landfill disposal rate at 1% or less by 2030
Short-term Goals:
  • Reduce energy consumption intensity by an average of 1% or more per year
  • No increase in water use compared to the previous year

Environmental Challenges

  • Climate change risks (physical and transition risks)
  • Supply chain disruptions
  • COVID-19 pandemic
  • Securing vaccinations for tenants' employees
Mitigation Strategies
  • TCFD scenario analysis to assess climate risks
  • Energy efficiency improvements and renewable energy adoption
  • COVID-19 prevention measures
  • Facilitated vaccination appointments for Act City Hamamatsu tenants

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ESG Guidelines for Procurement and Other Transactions

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Heavy rains
  • Floods
Transition Risks
  • Increased costs
  • Business restrictions
Opportunities
  • Higher rents from certified properties
  • Lower energy consumption

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • GRESB Green Star (2015)
  • GRESB 4-star rating (2020)
  • GRESB Public Disclosure evaluation 'A' rating (2020)
  • Inclusion in MSCI Japan ESG Select Leaders Index (2018)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:107,497 tCO2e/year (FY2022)
Scope 1 Emissions:1,997 tCO2e/year (FY2022)
Scope 2 Emissions:20,580 tCO2e/year (FY2022)
Scope 3 Emissions:84,920 tCO2e/year (FY2022)
Renewable Energy Share:8.82% (FY2022)
Total Energy Consumption:241,972 MWh/year (FY2022)
Water Consumption:251,000 m3/year (FY2022)
Waste Generated:8,166 tons/year (FY2022)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Waste Management
  • Health, Safety, and Well-being of Customers
  • Information Disclosure and Stakeholder Dialogue
  • Cooperation with Property Managers and Building Managers
  • Good Workplace Environment and Diversity
  • Development of Employee Competencies
  • Thorough Compliance
  • Sustainable Finance
  • Human Rights

Environmental Achievements

  • Increased renewable energy share to 8.82% in FY2022
  • Achieved a landfill disposal rate of 0.9% in FY2022
  • Improved Green Building Certification GFA coverage ratio to 84% in FY2022
  • Reduced GHG emission intensity to 0.06907 t-CO2/m2 in FY2022

Social Achievements

  • Achieved 92% tenant satisfaction in FY2022
  • Implemented various initiatives to improve health, safety, and well-being for tenants and users
  • Conducted ESG training for 100% of property managers in 2023
  • Implemented various work-life balance support programs for employees

Governance Achievements

  • Established a Sustainability Committee
  • Implemented robust compliance systems and policies
  • Appointed independent external committee members to Investment and Risk Management Committees

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emissions by 42% from 2021 levels by 2030
  • Achieve 50% renewable energy share by 2030
  • Achieve green building certification for over 80% of floor space by 2030
  • Achieve a sustainable finance ratio of 50% or more by 2030
Short-term Goals:
  • Reduce energy consumption intensity by an average of 1% or more annually
  • Maintain landfill disposal rate at 1% or less

Environmental Challenges

  • Reducing Scope 3 emissions (especially tenant areas and supply chain)
  • Achieving net-zero emissions by 2050
  • Addressing transition risks (e.g., carbon taxes, regulatory changes)
  • Addressing physical risks (e.g., extreme weather events, flooding)
Mitigation Strategies
  • Set new GHG emission reduction targets validated by SBTi
  • Formulated a transition roadmap to achieve net-zero emissions by 2050
  • Increased renewable energy use
  • Improved energy efficiency of properties
  • Engaged with stakeholders (tenants, investors, etc.) to promote emission reductions
  • Implemented climate change adaptation measures (e.g., flood barriers)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • ESG Guidelines for Procurement and Other Transactions

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
Transition Risks
  • Carbon taxes
  • Regulatory changes
  • Changes in customer demand
Opportunities
  • Increased demand for green buildings
  • Reduced operating costs through energy efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: JQA (for some data)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • GRESB 5-star rating
  • Silver award in the Fundraiser Category at the Ministry of the Environment’s ESG Finance Awards

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:100,987 t-CO2e/year
Scope 1 Emissions:789 t-CO2e/year
Scope 2 Emissions:18,570 t-CO2e/year
Scope 3 Emissions:80,842 t-CO2e/year
Renewable Energy Share:12.2%
Total Energy Consumption:246,148 MWh/year
Water Consumption:280,000 m3/year
Waste Generated:8,415 tons/year
Carbon Intensity:0.1 t-CO2e/million yen (based on AUM) in FY2023

ESG Focus Areas

  • Climate Change
  • Governance
  • Social Initiatives
  • Human Resources

Environmental Achievements

  • 12.8% reduction in GHG emissions (Scopes 1, 2, and parts of Scope 3 under OJR management) compared to the 2021 baseline year.
  • 82% green building certification acquisition rate exceeding the 80% target.
  • 12.2% renewable energy share of total electricity consumption.

Social Achievements

  • 91% tenant satisfaction rate.
  • Renovations to improve accessibility for disabled and elderly customers.
  • Community engagement initiatives such as events and partnerships.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions by 2050.
Medium-term Goals:
  • Reduce GHG emissions by 42% compared to 2021 levels by 2030.
  • Achieve a 50% renewable energy share of electricity consumption by 2030.
  • Achieve an 80% green building certification acquisition rate by 2030.
  • Achieve a sustainable finance ratio of 50% or more by March 2030.
Short-term Goals:
  • Reduce GHG emissions by 14% compared to 2021 levels by 2024.
  • Achieve a landfill disposal rate of 1% or less by 2030.
  • Maintain water usage in common areas at or below 2023 levels.

Environmental Challenges

  • Climate change related physical risks (damage to buildings from extreme weather)
  • Climate change related transition risks (carbon taxes, emission reduction obligations)
  • Structural changes in the Japanese economy (declining birthrate, aging population)
Mitigation Strategies
  • Formulation of a transition plan toward net-zero emissions by 2050, aligned with TCFD and CDP guidelines.
  • Scenario analysis to assess climate change impacts.
  • Implementation of energy-saving renovations and renewable energy introduction.
  • Strengthening internal control systems and conducting training for officers and employees.

Supply Chain Management

Supplier Audits: Annual ESG assessments of property managers and other business partners.

Responsible Procurement
  • ESG guidelines for procurement and other transactions.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, typhoons)
  • Rising temperatures (increased air conditioning costs)
Transition Risks
  • Carbon taxes
  • Stricter GHG emission regulations
  • Changes in customer demand
Opportunities
  • Rent increases for properties with higher environmental performance
  • Strengthened fund raising capacity through expansion of ESG investors

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: SBTi (Near-term target) certification, SBTi (Net-Zero target) certification, Eco-Action 21

Third-party Assurance: Japan Quality Assurance Organization (JQA)

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 GHG emission reductions, renewable energy adoption, green building certifications, and community engagement.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • ARES ESG Award 2023 (Best Recommendation Award - Environment Division)
  • ESG Finance Awards 2023 (Silver award in the Fundraiser Category)