Climate Change Data

AEON REIT Investment Corporation

Climate Impact & Sustainability Data (2020-08 to 2021-07, 2022-03 to 2023-02)

Reporting Period: 2020-08 to 2021-07

Environmental Metrics

Total Carbon Emissions:241,276 t-CO2 (FY2020)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:5,455,768,002 MWh (FY2020)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced energy consumption intensity and CO₂ emissions intensity by 92.4% and 89.6% respectively from FY2019 to FY2020 (compared to FY2014 mid-term targets, a 5.4% and 21.91% reduction was achieved over 5 years from FY2014 to FY2019)
  • Achieved 5 Stars in GRESB for two consecutive years (2020, 2021)
  • Received an "A" grade from SMBC for commitment to environmentally aware initiatives in asset management
  • Installation of solar power generation panels on premises of facilities
  • Use of natural refrigerants in all new malls opened from FY2015

Social Achievements

  • AEON MALLs provide healthcare facilities, government offices, banks, and post offices to improve community lives
  • Support for local events and cultural activities
  • Contribution to communities in case of disaster (evacuation drills, providing facilities for reconstruction)
  • Health and well-being initiatives for employees (checkups, training courses, infection prevention measures)
  • Certified as a "Health & Productivity Management Organization" in 2021

Governance Achievements

  • Established a Sustainability Finance Framework to enhance financing methods and the development of sustainability finance
  • Transparent decision-making process and management fee system linked to unitholder value
  • Sameboat investment by the AEON Group
  • Established a system to reflect opinions of third parties with no vested interest in the Aeon Group in decision-making regarding transactions involving interested parties

Climate Goals & Targets

Long-term Goals:
  • Achieve zero CO2 and other greenhouse gas emissions from its stores by 2050 (AEON Decarbonization Vision 2050)
Medium-term Goals:
  • 5% reduction in energy consumption and CO2 emissions over the five-year period from FY2020 to FY2024 (FY2019 as the base)
Short-term Goals:
  • Reduce energy consumption intensity and CO₂ emissions intensity by 1% annually on average in the entire portfolio and at individual malls (FY2020-FY2024)

Environmental Challenges

  • Climate change risks
  • Supply chain disruptions (implied)
Mitigation Strategies
  • Initiatives aimed at realizing a decarbonized society (AEON Decarbonization Vision 2050)
  • Green procurement strategy to encourage ESG initiatives in the entire supply chain
  • Risk management regulations and internal rules to appropriately manage risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green procurement strategy

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: GRESB, DBJ Green Building, BELS, CASBEE, LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • 5 Stars in GRESB (2 consecutive years)
  • Green Star in GRESB (6 consecutive years)
  • "A" grade from SMBC
  • "Best of the Best Sustainable Design Award" (AEON LakeTown)

Reporting Period: 2022-03 to 2023-02

Environmental Metrics

Total Carbon Emissions:260,976 t-CO2e/year
Scope 1 Emissions:0 t-CO2e/year
Scope 2 Emissions:17 t-CO2e/year
Scope 3 Emissions:260,959 t-CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:6,082,964,080 MWh/year
Water Consumption:4,156,797 m3/year
Waste Generated:35,303 tons/year
Carbon Intensity:0.0631 t-CO2/m2 (FY2022)

ESG Focus Areas

  • Climate Change
  • Biodiversity and Land Use
  • Local Community Engagement and Sustainable Development
  • Safety and Security of Owned Properties
  • Human Capital Development
  • Corporate Governance
  • Compliance and Risk Management

Environmental Achievements

  • CO2 emissions intensity decreased by 15.6% and energy consumption intensity decreased by 10.6% compared to fiscal 2019.
  • Ratio of properties with third-party certification (3 stars or higher) reached 86.8%, exceeding the medium-term target of 85%.
  • Ratio of properties with third-party certification (4 stars or higher) reached 82.5%, exceeding the medium-term target of 80%.

Social Achievements

  • Achieved a long-term issuer rating of AA (stable) from JCR.
  • Implemented revitalization investments in AEON MALL Kurashiki and AEON MALL Tomakomai to enhance customer experience and reduce environmental impact.
  • Continued community cleanup programs and donations to the AEON 1% Club Foundation.

Governance Achievements

  • Established a Sustainability Promotion Committee and Secretariat to oversee sustainability initiatives.
  • Implemented a robust compliance system, including regular compliance training with 100% participation rate.
  • Maintained a 100% attendance rate at Board meetings for the Executive Director and two Supervisory Directors.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
  • 30% or more of the portfolio to have ABINC certification.
Medium-term Goals:
  • 50% of electricity/energy consumption to be renewable.
  • 50% reduction of CO2 emissions (Scope 3).
  • Net zero emissions (long-term target).
  • Maintain or increase year-on-year average customer visits across the portfolio.
  • 50% or more of the portfolio to serve as disaster relief hubs (long-term target: 100%).
  • Ratio of owned properties with third-party certification (3 stars or higher) of 90% or more.
  • Ratio of owned properties with third-party certification (4 stars or higher) of 90% or more.
  • Introduction of energy-saving equipment in 80% or more of the store portfolio.
  • Introduction of renewable energy and energy-creating equipment in 50% or more of the portfolio.
Short-term Goals:
  • Reduce energy consumption intensity and CO2 emissions intensity by 1% annually on average.

Environmental Challenges

  • Climate change risks, including transition risks (policy and legal, technology, market, reputation) and physical risks (acute and chronic).
  • Increased utility costs due to rising energy prices.
  • Maintaining high standards of third-party certifications.
Mitigation Strategies
  • Proactive engagement in environmental investments, such as installing inverter units for air conditioning.
  • Collaboration with Aeon Group companies to achieve the Aeon Decarbonization Vision.
  • Analysis of 1.5°C and 4°C scenarios to assess financial impacts of climate change.
  • Implementation of fixed-rent master lease agreements to maintain stable operations during price increases.
  • Continuous efforts to maintain and improve third-party certifications.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Criteria for selecting property management companies, considering environmental factors, industrial safety, and compliance with the Asset Management Company’s sustainability policy.

Climate-Related Risks & Opportunities

Physical Risks
  • Weather disasters
Transition Risks
  • Stringent regulations and taxation systems
Opportunities
  • Investing in green buildings and renewable energy.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: DBJ Green Building Certification, CASBEE for Real Estate Certification, BELS Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed