Climate Change Data

Daiwa House Logistics Trust

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:848.13 tCO2e (Scope 2)
Scope 1 Emissions:N.A.
Scope 2 Emissions:848.13 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:68.8% of Japan properties
Total Energy Consumption:6,378.64 GJ
Water Consumption:9,205 m3
Waste Generated:42,538 tons
Carbon Intensity:0.02 tCO2e/m2

ESG Focus Areas

  • Prevention of global warming
  • Harmony with the environment
  • Conservation of natural resources
  • Prevention of chemical pollution
  • Establishment of an internal framework and initiatives for employees
  • Building of trusting relationships with external stakeholders
  • Promotion of communication through information disclosure
  • Compliance with laws and regulations, and risk management

Environmental Achievements

  • Increased solar energy capacity from 15.4MWp to 16.1 MWp with the acquisition of DPL Ibaraki Yuki
  • Maintained high proportion of green-rated properties at 94.8%, by NLA, including DPL Ibaraki Yuki
  • Progressively replaced a portion of lightings with LED lights in D Project Matsuyama S
  • All renewed/new leases entered into since listing contained “green” clause

Social Achievements

  • All employees participated in two CSR activities: trash-picking and tree-planting
  • Maintained zero incidents of serious injuries or fatalities
  • 85.7% response rate for annual tenant survey

Governance Achievements

  • 100% attendance for annual business ethics training
  • Zero breach of laws and regulations
  • Zero breaches of business ethics, anti-corruption and anti-bribery practices

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase solar power capacity to at least 90% of Japanese properties by 2030
  • Ensure female employee representation is no less than 35%
  • Appoint a female Director in the next three years
  • 100% of newly acquired properties in Japan are Green Certified by 2030
  • Provide ESG training annually by 2030
Short-term Goals:
  • Increase solar power capacity to at least 68% of Japanese properties
  • Consider LED lighting installation (D Project Kuki S) and have LED lighting of at least 90% of the portfolio
  • Maintain zero incidents of serious injuries or fatalities
  • Maintain good safety of the properties by conducting regular third-party inspection and ensuring prompt rectification of any findings
  • Maintain at least 80% of tenants respond to the annual tenant survey
  • Conduct at least two CSR activities

Environmental Challenges

  • Foreign exchange volatility (JPY weakening against SGD)
  • Increased competition for Japan logistics properties
  • Rising interest rates
  • Rising operational costs in the logistics sector (labor costs, truck freight, fuel)
  • Shortage of truck drivers
  • Restrictions on overtime hours for truck drivers
Mitigation Strategies
  • Hedging policy to systematically hedge distributions on a one-year rolling basis
  • 100% of borrowings in fixed rate and JPY
  • Leveraging Sponsor's pipeline of properties for acquisitions
  • Exploring options for refinancing JPY10.0 billion loan
  • Implementing more efficient operational strategies (automation, labor-saving equipment)
  • Seeking growth opportunities in a disciplined and sustainable approach

Supply Chain Management

Supplier Audits: Annual checks on all vendors

Responsible Procurement
  • Compliance with MAS Outsourcing Guidelines
  • Incorporation of anti-corruption, human rights, environmental considerations, and business continuity plans in contractual agreements

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme heatwaves
  • Flooding
  • Windstorms
Transition Risks
  • Carbon pricing
  • Changing customer behaviours
Opportunities
  • Development of energy-efficient products
  • Green building certifications

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD recommendations, MAS Guidelines on Environmental Risk Management

Certifications: DBJ Green Building Certification, BELS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through energy efficiency, renewable energy, and emissions reduction

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed