Climate Change Data

Environmental Metrics

ESG Focus Areas

• Contribution to a Sustainable Environment
• Commitment to a Diverse Society
• Stakeholder Engagement
• Attractive Working Environment
• Responsible Organization

Environmental Achievements

• Conversion of various lighting fixtures to LED
• Solar panel installation at some properties
• Switching to renewable energy-derived electricity at Nihonbashi Horidomecho First
• High percentage of green certified buildings across their REITs (Kenedix Office Investment Corporation: 60.9%, Kenedix Residential Next Investment Corporation: 18.1%, Kenedix Retail REIT Corporation: 58.9%, Kenedix Private Investment Corporation: 46.1%)

Social Achievements

• Investments in various types of properties through REITs, considering environmental and social issues
• Investments in flexible/mixed-use properties
• Renovations for greater convenience and value in response to tenant feedback
• Introduction of digital signage and aroma diffusers to enhance tenant satisfaction
• Investments in healthcare facilities to meet growing demand
• Commitment to barrier-free access in properties
• Various community engagement activities (local events, volunteer participation, providing space for community initiatives)

Governance Achievements

• Established Sustainability Committee and Compliance Committee
• Support for TCFD recommendations
• Scenario analysis conducted based on multiple world outlooks (4℃ and 1.5℃ scenarios)
• Established robust compliance and risk management systems
• Signing on to the PRI (Principles for Responsible Investment) and PFA21 (Principles for Financial Action for the 21st Century)

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks like CO2 emission regulations and carbon tax, physical risks like extreme weather events)
• Potential conflicts of interest due to the scale of operations
• Maintaining high levels of tenant and investor satisfaction

Mitigation Strategies

• Scenario analysis to understand and respond to climate change risks
• Implementation of energy-saving measures, renewable energy adoption, and acquisition of environmental certifications
• Establishment of a robust compliance system, including a Compliance Committee and related party transaction rules
• Regular customer satisfaction surveys and renovations to improve property quality
• Regular meetings with investors to maintain communication and address concerns

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of heavy rains and torrential rains
• Rise in sea level
• Rise in average temperature

Transition Risks

• CO2 emission regulation
• Carbon tax
• Advancement of energy-saving and renewable energy technologies
• Evaluation by investors and financial institutions
• Focus on environmental certification
• Tenant behavior change due to environmental orientation
• Tenant behavior change due to disaster-prevention orientation

Opportunities

• Decrease in utility costs due to energy-saving, introduction of renewable energy, conversion to ZEB/ZEH, etc.
• Decrease in financing costs due to high valuation

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Contribution to a Sustainable Environment
• Commitment to a Diverse Society
• Stakeholder Engagement
• Attractive Working Environment
• Responsible Organization

Environmental Achievements

• Conversion of various lighting fixtures to LED
• Remote Surveillance of Road Heating resulting in significant reduction in fuel costs
• Solar panel installation to decrease CO2 emissions
• Switching to effectively renewable energy at some properties resulting in substantially zero GHG emission from electricity use
• High percentage of green certified buildings across all investment corporations (Kenedix Office Investment Corporation: 71%, Kenedix Residential Next Investment Corporation: 18.7%, Kenedix Retail REIT Corporation: 66.9%, Kenedix Private Investment Corporation: 62.8%)
• Updating of water-efficient equipment
• Rain garden at Yokohama Connect Square
• Brownfield Development at Yokohama Connect Square contributing approximately 1 billion yen to deal with soil contamination

Social Achievements

• Investments in various types of properties through REITs to invigorate communities, provide greater convenience, supply pleasant and productive workplaces, and create safe and secure places to live
• Investments in flexible/mixed-use properties
• TurnKey Office Project in KDX Iidabashi Building
• Appropriate renewal work at KDX Residence Tsurumi
• Conversion project of Kitera Town Aobadai
• Urban redevelopment projects
• Reuse of underground piles
• Investment in CCRC project properties
• Issuance of social bonds by Kenedix Residential Next Investment Corporation
• Installation of emergency supplies in some properties
• Acquisition of ESG Properties Equipped with Emergency Batteries
• Disaster response vending machine
• Distribution of emergency action manual handbook
• Sustainable guide distribution
• Installation of AEDs
• Verification of earthquake resistance
• Management of healthcare facilities by Kenedix Residential Next Corporation
• Commitment to barrier-free access

Governance Achievements

• Support for TCFD recommendations and joining the TCFD consortium
• Scenario analysis based on multiple world outlook to understand climate change risks and opportunities
• Establishment of a Sustainability Committee
• Establishment of a Compliance Committee
• Implementation of a rigorous compliance program
• Preparation of a Manual for Responding to Anti-social Forces and the Prevention of Transfers of Criminal Proceeds
• Measures against money laundering and terrorist financing
• Establishment of ethics and anti-corruption policy
• Whistle-blowing system
• Internal audits
• Compliance training
• Adoption of Principles for Customer-Oriented Business Conduct
• Establishment of a pipeline committee to manage conflicts of interests among REITs
• Risk management system
• Crisis and disaster response system
• Information security measures
• Protection of personal information
• Signing on to the PRI and PFA21

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks and physical risks)
• Conflicts of interest
• Maintaining high levels of tenant satisfaction
• Managing risks associated with a large number and variety of properties
• Ensuring water sources
• Growing limitations on natural resources
• Japan's declining and aging population
• Shortage of healthcare facilities

Mitigation Strategies

• Scenario analysis and identification of measures to address risks and opportunities
• Establishment of compliance policies and training programs
• Customer satisfaction surveys and renovations
• Risk management system and crisis response system
• Initiatives to reduce water consumption and waste materials
• Collaboration with tenants for environmental initiatives
• Investments in healthcare facilities and initiatives for an aging society
• Various programs to develop employee skills and improve employee retention

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of heavy rains and torrential rains
• Rise in sea level
• Rise in average temperature

Transition Risks

• CO2 emission regulation
• Carbon tax
• Advancement of energy-saving and renewable energy technologies
• Evaluation by investors and financial institutions
• Focus on environmental certification
• Tenant behavior change due to environmental orientation
• Tenant behavior change due to disaster-prevention orientation

Opportunities

• Decrease in utility costs due to energy-saving, introduction of renewable energy, conversion to ZEB/ZEH, etc.
• Decrease in financing costs due to high valuation
• Maintain and improve occupancy rates by improving environmental performance
• Maintain and improve occupancy rates by improving resilience measures

Reporting Standards

Frameworks Used: GRI Standards