Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 5% reduction in energy consumption intensity over five years (target)
• 5% reduction in greenhouse gas emissions intensity over five years (target)
• 5% reduction in water consumption intensity over five years (target)
• Received a "Green Star" rating in the GRESB Real Estate Assessment 2019
• Acquisition of DBJ Green Building Certification for multiple properties
• Received an award for fiscal 2015 Minato City Local Green City Development for Kita-Aoyama Sancho-me Building
• Awarded an "A" grade from SMBC in recognition of its commitment to environmental initiatives

Social Achievements

• Concluded disaster cooperation agreement with Takatsuki City for Takatsuki-Josai Shopping Center
• Introduced a trial run of bike sharing at Kitano Hankyu Building
• Implemented a park-and-ride at Dew Hankyu Yamada
• Supporting startups through "FIVE LAB" at HEP Five
• Regular employee satisfaction surveys at multiple properties
• Various training sessions for tenant employees at multiple properties
• Hosting social gatherings and trips for tenant employees
• Providing building environments that make it easy to work at Shiodome East Side Building
• HEP Five received the ES Award multiple times, and HANKYU NISHINOMIYA GARDENS received the Gold Award at the Japan SC Awards in 2013

Governance Achievements

• Established a Sustainability Policy in March 2019
• Established a Sustainability Promotion System with a Sustainability Promotion Committee
• Designated KPMG AZSA LLC as the Accounting Auditor
• Established robust compliance and internal audit systems with multiple check functions
• Established a Compliance Committee with outside experts to deliberate on conflicts of interest transactions
• Formulated a compliance manual and compliance program
• Appointed a person responsible for preventing unreasonable demands and excluding anti-social forces

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Seek the cooperation of suppliers involved in the management and renovation of real estate

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRESB

Certifications: DBJ Green Building Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Star rating in GRESB, DBJ Green Building Certification, Minato City Local Green City Development award, SMBC "A" grade

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 35% by fiscal 2030 (compared to fiscal 2018)
• Reduced energy consumption by 1% annually
• Reduced water consumption by 10% by fiscal 2030 (compared to fiscal 2018)
• Achieved 2 Stars in GRESB Real Estate Assessment and Green Star designation for the fifth consecutive year.
• Acquired DBJ Green Building Certification for multiple properties.
• Acquired CASBEE for Real Estate Certification for multiple properties (S and A ranks).

Social Achievements

• Implemented various initiatives to improve employee well-being, including health management programs, flexible work arrangements, and remote work options.
• Conducted employee satisfaction surveys and implemented improvements based on the results.
• Provided training for employees of tenants to improve customer service and social media skills.
• Created a comfortable work environment for employees, including providing amenities such as a cafeteria and baby rooms.
• Supported local communities through participation in local events and offering venues for local events.

Governance Achievements

• Established a Sustainability Promotion System with a Sustainability Promotion Committee.
• Announced support for the TCFD recommendations and joined the TCFD Consortium.
• Established a robust compliance system with a Compliance Department and Compliance Committee, including outside experts.
• Implemented a risk management system with regular risk assessments and internal audits.
• Implemented an asset management remuneration system linked to investor interests.

Climate Goals & Targets

Environmental Challenges

• Transition risks related to policy and legal regulations (carbon tax, carbon pricing, GHG emission regulations), technology dissemination, market changes (energy mix), and changes in tenant tastes.
• Physical risks related to extreme weather, rising average temperatures, and rising sea levels.

Mitigation Strategies

• Conducting risk assessments from the viewpoints of possibility of occurrence and the degree of impact.
• Monitoring the status of countermeasures once a year.
• Deliberating on climate change-related risks and their impact on business at the Sustainability Promotion Committee.
• Implementing various initiatives to reduce energy consumption, water consumption, and GHG emissions.
• Preparing measures to minimize damage and speed up recovery from natural disasters.

Supply Chain Management

Responsible Procurement

• Considering sustainability initiatives (environmental management system, respect for human rights and diversity, corporate ethics system, community activities) as criteria for selecting property management companies and suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Rise in average temperature
• Rise in sea level

Transition Risks

• Policy and legal regulations (carbon tax, carbon pricing, GHG emission regulations)
• Technology dissemination
• Market changes (energy mix)
• Changes in tenants' tastes

Opportunities

• Introduction of renewable energy
• Conversion of buildings into ZEB
• Meeting tenants' needs for buildings with high environmental performance
• Securing new ESG-conscious investors

Reporting Standards

Frameworks Used: TCFD

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

Awards & Recognition

• GRESB 2 Stars and Green Star
• GRESB A Level for Public Disclosure
• HEP Five ES Award (multiple times)
• HANKYU NISHINOMIYA GARDENS Gold Award at Japan SC Awards
• HANKYU NISHINOMIYA GARDENS Developer Award Chosen by Tenants

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 22.2% from 2018 to 2023.
• Reduced water consumption intensity by 13.3% from 2018 to 2023.
• Introduced renewable energy to large properties such as Grand Front Osaka and Hankyu Nishinomiya Gardens.
• Achieved a Green Star rating in the GRESB Real Estate Assessment for six consecutive years.
• Over 70% of buildings have LED lighting in common areas (excluding backyards), with 3 buildings having LED lighting throughout.

Social Achievements

• Continued certification as a Health & Wellbeing Management Excellent Company.
• Implemented various health management initiatives, including providing vegetables in the office, group lunches, and walking events.
• Consistently high tenant satisfaction scores.
• Implemented a variety of employee engagement initiatives, including employee outings and social gatherings.
• Introduced a free sanitary napkin service in HEP FIVE.

Governance Achievements

• Established a Sustainability Promotion Committee.
• Obtained a Green1(F) rating for its Green Finance Framework from JCR.
• Implemented a performance-linked compensation system for some employees.
• Established an ethics hotline for reporting unethical behavior.

Climate Goals & Targets

Environmental Challenges

• Increasing operating costs due to rising energy and fuel prices.
• Increased renovation costs due to rising construction material prices and stricter regulations for ZEB/ZEH buildings.
• Potential for damage to properties from natural disasters.
• Potential impact of climate change on tenant needs and asset value.

Mitigation Strategies

• Implementing energy efficiency measures, such as upgrading heating equipment and introducing renewable energy.
• Regular risk assessments and monitoring of climate-related risks.
• Planned maintenance and capital expenditure to prevent accidents and minimize damage from disasters.
• Collaboration with tenants on energy and water conservation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Considering sustainability performance when selecting PM companies and suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (typhoons, floods)

Transition Risks

• Changes in energy prices and regulations
• Changes in tenant preferences

Opportunities

• Development of energy-efficient buildings and renewable energy adoption.

Reporting Standards

Frameworks Used: GRESB, TCFD

Certifications: DBJ Green Building, CASBEE

Third-party Assurance: Sustainability Accounting Office

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Health & Wellbeing Management Excellent Company
• Osaka Prefecture Health Promotion Award spin-off project 'Workplace Kenkatsu 10' Award (Special Award)