Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment

Environmental Achievements

• 62.5% of properties and 86.2% of total floor space meet green building certification criteria (DBJ Green Building Certification, CASBEE Real Estate, or BELS Certification).

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Committee headed by the President to oversee ESG initiatives, including green finance.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration for environment and social contributions in cooperation with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles (2018 edition), Green Bond Guidelines (2017 edition), Green Loan Principles

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

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7
• 9
• 11

Energy efficiency, resilient infrastructure, sustainable cities

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Real Estate Assessment (3 stars), Green Star

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 94.6% of properties were Green Eligible Assets (as of January 31, 2022) based on acquisition price. Achieved a four-star GRESB rating (out of five).

Social Achievements

• Established a personnel system to strengthen organizational capabilities, promote individual growth, and link company performance to individual compensation.
• Various social initiatives at properties including employee support, improved workplace environment, collaboration with tenants and ITOCHU Group, and support for local communities.

Governance Achievements

• Decision-making process in conflict-of-interest transactions subject to approval by Compliance Committee.
• Transparent information disclosure of ESG-related information.
• Management fee structure aligned with unitholder interests.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers on sustainability policies

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB Real Estate Assessment

Certifications: DBJ Green Building Certification, BELS certification, CASBEE certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social

Environmental Achievements

• Awarded “Green Star” Status with “4-Star” Rating in GRESB Rating
• Issued 2nd Green Bond of 2 bn yen
• Refinancing with a 5.0 billion yen green loan

Social Achievements

• Signed "Agreement on Acceptance of Evacuees and Relief Supplies in the Event of Disaster" with Noda City
• Implemented tenant satisfaction surveys
• Distributed Sustainability Guide to all tenants

Governance Achievements

• Established a department specializing in ESG
• Reduced management fee by nearly 10%
• Implemented internal compliance training with 100% participation rate

Climate Goals & Targets

Environmental Challenges

• Increased supply of logistics facilities leading to a gradual upward trend in vacancy rates
• Climate change risks

Mitigation Strategies

• Selective investment in quality properties to maintain/improve portfolio profitability
• Long-term lease contracts with quality tenants
• TCFD aligned climate change risk/opportunity assessment and strategy planning

Supply Chain Management

Supplier Audits: Annual survey

Responsible Procurement

• Conduct periodic training and monitoring of suppliers
• Conclusion of contracts with green lease clauses for new tenants

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB

Awards & Recognition

• Green Star with 4-Star Rating in GRESB

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• Social Contribution
• Governance

Environmental Achievements

• Reduced energy consumption by 11% (FY2021 compared to FY2020), reduced CO2 emissions by 13% (FY2021 compared to FY2020), reduced water consumption by 24% (FY2021), reduced waste by 66% (FY2021)
• Achieved 95% acquisition rate of external environmental certifications (as of April 3, 2023)
• IMP Ichikawa-Shiohama acquired CASBEE S rank
• Installation of solar panels at IMP Ichikawa-Shiohama, providing CO2-free electricity

Social Achievements

• Signed "Agreement on Acceptance of Evacuees and Relief Supplies in the Event of Disaster" with Noda City
• Conducted disaster drills with the city, tenants, and asset manager
• Distributed Sustainability Guide to all tenants
• Food donations to welfare organizations
• Ecocap campaign for charity

Governance Achievements

• Reduced total management fee by nearly 10% (from 9th FP)
• Introduced "Investment Unit Holders' Association System"
• Implemented internal compliance training with 100% participation rate
• Published ESG Report 2023

Climate Goals & Targets

Environmental Challenges

• Rising electricity costs
• Impact of largest-ever supply of logistics facilities in Kanto on leasing

Mitigation Strategies

• Installation of demand control system to reduce electricity consumption
• Reviewing building management at IMP Ichikawa-Shiohama to reduce costs
• Focus on retaining existing tenants and securing long-term contracts

Supply Chain Management

Responsible Procurement

• Conduct periodic training and monitoring of suppliers
• Conclusion of contracts with green lease clauses for new tenants

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB

Certifications: CASBEE, BELS

Awards & Recognition

• Global Sector Leader in 2022 GRESB assessment
• 5 Star rating in 2022 GRESB assessment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Management
• Human Rights
• Anti-corruption

Environmental Achievements

• Reduced Scope 2 GHG emissions from 205 t-CO2 in 2021 to 0 t-CO2 in 2023 and 2024.
• Reduced total GHG emissions from 10,307 t-CO2 in 2020 to 8,668 t-CO2 in 2024.
• Decreased energy consumption intensity from 0.054 MWh/m² in 2020 to 0.048 MWh/m² in 2023 and 2024.
• Reduced waste generation intensity from 0.006 ton/m² in 2020 to 0.002 ton/m² in 2023 and 2024.
• As of February 28, 2024, 5.00% of properties were not “Eligible Green Assets” (a significant decrease from 34.97% in 2023 and 5.43% in 2022).

Social Achievements

• Established a Sustainability Procurement Policy and Guidelines in 2019, evaluating major suppliers annually on sustainability issues.
• 36.8% of tenants (based on rental units) have executed lease agreements with green lease clauses as of March 31, 2024.
• Established a Human Rights Policy in June 1, 2022, implementing measures to prevent harassment.

Governance Achievements

• The Asset Manager became a signatory to the TCFD and joined the Japan TCFD Consortium in March 2020.
• The Asset Manager supports international human rights norms, including the Universal Declaration of Human Rights and the UN Global Compact.

Climate Goals & Targets

Environmental Challenges

• Energy inefficiency in some real estate assets.
• Managing GHG emissions (Scope 3 emissions remain high).

Mitigation Strategies

• Implementing measures to reduce environmental impact after acquisition, including obtaining environmental certifications and installing eco-friendly equipment.
• Aiming to reduce combined Scope 1 and Scope 2 GHG emissions by 42% by FY2030 and achieve net-zero GHG emissions by FY2050.
• Aiming to reduce energy consumption intensity by 10% by FY2030 and not increase waste generation intensity by FY2030.

Supply Chain Management

Supplier Audits: Annual evaluation of major suppliers since 2019

Responsible Procurement

• Sustainability Procurement Policy
• Sustainability Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR

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