Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 5-Star GRESB rating and was named Global and Asia Sector Leader.
• Expanded CASBEE certification to 31 properties (61% of properties), aiming for 80% by 2024.
• GLP/MFLP Ichikawa Yokohama received a "ZEB Ready" rating.
• Issued sustainability bonds, a first for the J-REIT market (totaling 31.6 billion yen by March 2021).

Social Achievements

• Implemented COVID-19 response measures for tenants and employees.
• Established an employee stock ownership plan.
• Conducted customer satisfaction surveys (97% intent to continue using GLP Japan in 2019).
• Engaged in CSR activities, including volunteer work and providing disaster relief.

Governance Achievements

• Established an ESG committee.
• Implemented a strict governance structure for related-party transactions.
• Improved transparency through information disclosure, including management call meetings for overseas investors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Maintaining high standards of ESG performance.

Mitigation Strategies

• Implemented infection prevention measures.
• Continuously improving ESG policy to meet evolving standards and expectations.
• Proactive communication with stakeholders.

Supply Chain Management

Responsible Procurement

• Business partnerships for reuse of logistics equipment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB

Certifications: CASBEE, BELS, ZEB Ready

Awards & Recognition

• 5 Stars and Green Star by 2020 GRESB Real Estate Assessment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Saving
• Water Conservation
• Waste Reduction
• Community Engagement
• Disaster Preparedness
• Employee Well-being
• Corporate Governance
• Supply Chain Sustainability

Environmental Achievements

• Achieved a 5-star GRESB rating for two consecutive years.
• Obtained BELS (Building-Housing Energy-efficiency Labeling System) evaluation certification at GLP Kawashima and seven other properties. Seven of the eight properties obtained a ZEB Ready rating.
• Obtained CASBEE certification with ratings of S or A at GLP Urayasu and 12 other properties. The number of properties with CASBEE certification expanded to 51, increasing the environmental certification ratio to 76%.
• Implemented a system for ascertaining data on utility usage across all GLP J-REIT properties.
• Included green lease clauses in all 53 contracts (approximately 850,000 m2) concluded in 2021.
• Transitioned to 100% LED lighting in common areas in all properties in 2022.
• Reduced electricity use by installing LED lighting and large ceiling fans in GLP Urayasu II.
• Increased the proportion of green building certifications (BELS, CASBEE, LEED) in the portfolio to 76%.

Social Achievements

• Concluded disaster agreements with five new municipalities, bringing the total to nine.
• 17 properties available as emergency sites or disaster management bases (capacity of 12,790 people).
• Conducted customer satisfaction surveys with a high rating of 98% for intent to continue using GLP Japan.
• Implemented various initiatives to improve employee well-being, including remote work support and mental health care training.
• Achieved a 92% response rate in employee satisfaction surveys.
• Introduced a whistleblowing system accessible to employees, families, and business partners.

Governance Achievements

• Established an ESG Committee that met seven times in 2021.
• Endorsed the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Endorsed the Principles for Responsible Investment (PRI) and became a certified signatory.
• Joined the Japan Climate Initiative.
• Implemented an ESG DD process to check the impact of investment decisions on ESG.
• Issued the world’s first incentive-based interest rate-type sustainability-linked bonds in the publicly issued bond market.
• Established a Compliance Committee and the position of Compliance Officer.
• Implemented employee training on ethical standards.

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact from energy, water, and waste usage.
• Maintaining high levels of customer satisfaction.
• Ensuring employee well-being and promoting diversity.
• Managing risks associated with real estate investment and operations.

Mitigation Strategies

• Implementing energy-saving initiatives, such as LED lighting and human-presence sensors.
• Regularly conducting customer satisfaction surveys and implementing improvements based on feedback.
• Providing employee support programs, including remote work options and mental health resources.
• Implementing robust risk management strategies, including ESG due diligence and a Compliance Committee.

Supply Chain Management

Responsible Procurement

• ESG due diligence process for property acquisitions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRESB, TCFD, PRI

Certifications: BELS, CASBEE, LEED

Awards & Recognition

• 5-star GRESB rating

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Saving
• Water Resources
• Recycling
• Local Communities
• BCP
• Tenant Employee Initiatives
• Employee Initiatives
• CSR Activities
• Governance Structure
• Unitholder Interests
• Information Disclosure
• Biodiversity

Environmental Achievements

• Increased number of solar power generation facilities to 26, with annual generation increased to about 36,000 MWh.
• Increased facilities with environmental certification to 65 (81% of portfolio), exceeding the 2024 target of 80%.
• Increased facilities with BELS certification to 20 and ZEB rating to 9.
• Achieved 100% data coverage for facilities under GLP J-REIT control.
• Transitioned to 100% LED lighting in common areas in all facilities.

Social Achievements

• Increased the number of disaster agreements with local governments to 12.
• Strengthened disaster prevention activities through drills with local governments and residents.
• Increased supervisory director for GLP J-REIT to enhance governance and promote diversity.
• Made tax-deductible donations to 19 local governments.
• Improved data coverage on waste from 79% to 91%.

Governance Achievements

• A new supervisory director was elected, increasing the number of directors to four, including a female director.
• Established the ESG Committee in 2021 to consolidate information, discuss, and determine policy for initiatives.
• Expanded outstanding balance of ESG bond to JPY 42.9 billion.
• Actively executing ESG loan in addition to ESG bond issuance.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transitional risks from policy changes, market shifts, and physical risks from extreme weather events).
• Reputation risks from potential declines in value and confidence from investors.

Mitigation Strategies

• Endorsed TCFD recommendations and disclosed risk and opportunity for GLP J-REIT impacted by climate change.
• Implemented a risk management system for sustainability, including due diligence for new investments and monitoring of sustainability-related risks at all properties.
• Developed strategies to address climate change risks, including scenario analysis (1.5°C/2°C and 4°C scenarios).
• Implemented BCP measures such as backup power, water supply systems, fuel storage, and seismic isolation structures.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Torrential rains, typhoons, floods, landslides, storm surges

Transition Risks

• Strengthened building energy conservation standards
• Carbon tax and emissions trading system
• Expanded/mandated certification system for building energy efficiency ratings
• Change in investor/lender policies due to growing ESG awareness

Opportunities

• Reduced water and utility costs through improved environmental performance
• Increased investment opportunities with ESG-focused investors, and reduced financing costs with ESG financing
• Greater number of companies working toward carbon neutrality
• Increased occupancy rates in buildings with higher energy-creation and energy-saving performance

Reporting Standards

Frameworks Used: GRESB

Awards & Recognition

• 5 Stars rating by the 2022 GRESB Real Estate Assessment (three consecutive years)
• Global Sector Leader and Regional Sector Leader in the listed and non-listed logistics real estate sector in GRESB