Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption intensity and CO2 emission intensity of the entire portfolio by more than 5% for five years from 2017 (though base year changed to 2017 from 2016 due to system changes).
• Increased percentage of properties with environmental certification from 34% in Dec 2018 to 60.1% in Jun 2020.
• Acquired DBJ Green Building Certification for several properties.
• Granted "Green Star" for the sixth consecutive year in the GRESB Real Estate Assessment and received a "5 Stars" rating and an "A" rating in GRESB Public Disclosure.

Social Achievements

• Consistently enhanced tenant satisfaction through periodic surveys and addressing tenant requests.
• Implemented JPR Best Performance Award to commend BMs at an excellent management level.
• Conducted regular disaster prevention training for building users.
• Engaged in local community initiatives such as rooftop potato cultivation and community events.
• Supported employee development through various training programs and career development initiatives.

Governance Achievements

• Established Sustainability Committee and Secretariat to promote sustainability initiatives.
• Became a signatory to PRI in May 2019.
• Implemented a rigorous system to prevent conflicts of interest in transactions with interested parties.
• Established a Compliance Committee to review transactions with interested parties.
• Established a Compliance Office and helpline for employee consultations and whistleblowing.

Climate Goals & Targets

Environmental Challenges

• Increased costs associated with greenhouse gas regulations.
• Damages due to increased occurrence of abnormal weather.
• Decrease in rental revenue due to fire or earthquake.
• Fall in creditworthiness due to deteriorated relations with local communities.
• Destabilization of management capabilities due to decreased quality of employees.
• Exit of tenants due to dissatisfaction.
• Delay in business due to human rights issues.

Mitigation Strategies

• Implementing energy-saving measures (equipment upgrades, improved management methods).
• Improving building resilience through onsite inspections and disaster drills.
• Managing tenants in a crisis through regular disaster drills.
• Examining renewable energy adoption.
• Monitoring environmental data.
• Implementing green lease contracts.
• Improving cooperation with property managers.
• Checking environmental and social risks when acquiring new properties.
• Formulating Green Finance Framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Damage caused by typhoons and heavy rain
• Increase of average temperatures
• Rising sea levels

Transition Risks

• Tightening of environmental regulation
• Rising energy prices
• Changes in tenant behavior
• Changes in investor behavior

Opportunities

• Expansion of tenant demand by improving the environment and resilience
• Reduction of costs by improving environmental performance

Reporting Standards

Frameworks Used: GRI

Certifications: DBJ Green Building Certification, CASBEE

Third-party Assurance: Lloyd's Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 10th "Award for Town Creation with Flowers and Greenery" (2013)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 30% reduction in CO2 per floor area (compared with the 2017 level)
• Achieved a 10% reduction in water use per floor area (compared with the 2017 level)
• Increased the percentage of properties with environmental certification to 71.4% by June 2021
• Introduced renewable energy sources in some properties (Tokyo Square Garden and Olinas Tower)

Social Achievements

• Consistently improved tenant satisfaction through periodic surveys and responsive actions
• Implemented various initiatives to improve employee well-being, including training, awards, and work-life balance measures
• Conducted community engagement activities, such as cleanup drives and participation in local festivals

Governance Achievements

• Established a Sustainability Committee and Risk Management Committee to oversee ESG initiatives
• Implemented a robust compliance framework and training programs
• Disclosed information transparently to unitholders and investors

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks like carbon tax and physical risks like water damage)
• Maintaining high tenant satisfaction
• Attracting and retaining talent in a competitive job market

Mitigation Strategies

• Implementing scenario analysis to assess climate change impacts and develop mitigation strategies
• Regular tenant satisfaction surveys and responsive actions to address concerns
• Investing in employee training and development, offering work-life balance initiatives, and establishing a long-service award system

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Water damage risk
• Increase in energy consumption due to temperature increase

Transition Risks

• Increase in operation costs due to carbon tax
• Loss of tenants due to delay in green building measures
• Withdrawal of investors due to delay in green building measures

Opportunities

• Increase in rents for green buildings
• Cost reduction effect of energy conservation and use of renewable energy

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Lloyd's Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• GRESB Green Star (7 consecutive years)
• GRESB 5 Stars (2 consecutive years)
• GRESB Public Disclosure 'A' rating
• Inclusion in MSCI Japan ESG Select Leaders Index
• 20th BELCA Award (Shinjuku Center Bldg.)
• 10th "Award for Town Creation with Flowers and Greenery" (Yakuin Business Garden)