Climate Change Data

Daiwa House REIT Investment Corporation

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:162,062 t-CO2e/year (FY2024)
Scope 1 Emissions:364 t-CO2e/year (FY2024)
Scope 2 Emissions:0 t-CO2e/year (FY2024)
Scope 3 Emissions:161,698 t-CO2e/year (FY2024)
Renewable Energy Share:9.2% (FY2024)
Total Energy Consumption:332,592 MWh/year (FY2024)
Water Consumption:2,048,582 m3/year (FY2024)
Waste Generated:24,722 tons/year (FY2024)
Carbon Intensity:0.0384 t-CO2e/m2 (FY2024)

ESG Focus Areas

  • Climate Change
  • Biodiversity
  • Human Rights
  • Diversity, Equity, and Inclusion

Environmental Achievements

  • Reduced total GHG emissions (Scope 1+2) by 97.4% compared to FY2020 in FY2023
  • Achieved 73.7% environmental certification acquisition ratio (based on gross floor area) as of March 31, 2024
  • Achieved 99.7% green lease agreements signed (based on gross floor area) as of March 31, 2024
  • Reduced water consumption intensity to 0.5693 m3/m2 in FY2023
  • Improved recycling rate to 71.5% in FY2023

Social Achievements

  • Introduced wellness leave system, childcare leave benefits, return-to-work benefits, and allowance for replacing work of coworkers on long-term leave
  • Achieved 100% male employee participation in childcare leave in FY2023
  • Improved percentage of paid leave taken to 74.9% in FY2023
  • Improved percentage of female managers to 21.4% and female line managers to 6.3% in FY2023

Governance Achievements

  • Introduced Sustainability Index-linked Fees, linked to remuneration for Executive Director of DHR and directors of the Asset Manager
  • Received a perfect 5/5 points sustainability assessment by external expert advisors in FY2023
  • Established a robust compliance system with regular training and internal audits

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero total GHG emissions (value chain) by FY2050
Medium-term Goals:
  • Reduce total GHG emissions (Scope 1+2) by 42% by FY2030 (FY2020 as base year)
  • Increase the number of properties with biodiversity-related certification to five or more by FY2030
  • Increase the percentage of properties with environmental certification (based on gross floor area) to 75% or higher by FY2030
  • Increase the percentage of green lease agreements signed (based on gross floor area) to 100% by FY2030
  • Improve eNPS score to -8 or higher by FY2030
  • Improve employee turnover to 0% by FY2030
  • Improve average employee tenure to 10 years or more by FY2030
  • Improve percentage of paid leave taken to 85% by FY2030
  • Improve percentage of female managers to 39% or more by FY2030
  • Improve percentage of female line managers to 20% or more by FY2030
Short-term Goals:
  • Reduce energy consumption intensity by 10% in FY2027 (FY2017 as base year)
  • Reduce water consumption intensity to below FY2017 levels by FY2027
  • Improve recycling rate to exceed FY2017 levels by FY2027

Environmental Challenges

  • Rising biodiversity needs of customers
  • Increased natural disasters due to climate change
  • Maintaining high employee engagement scores
  • Maintaining low employee turnover
Mitigation Strategies
  • Obtaining biodiversity-related environmental certifications
  • Implementing sustainable finance strategies
  • Improving workplace environment and work-life balance
  • Investing in employee development and training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supply Chain Sustainability Guidelines, including a Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Increased repair costs due to extreme weather
  • Decreased rent income due to natural disasters
  • Increased non-life insurance premiums
Transition Risks
  • Business risks from inability to meet rising biodiversity needs of customers
  • Reputational damage from delays in biodiversity response
Opportunities
  • Increased business opportunities from meeting rising biodiversity needs
  • Increased investment unit prices and decreased funding costs due to biodiversity response
  • Enhanced resilience and reduction of future cost incurrence risks

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Ministry of the Environment Environmental Reporting Guidelines 2018, TCFD Recommendations, TNFD Recommendations

Certifications: Null

Third-party Assurance: Verification and assurance based on ISAE 3000 and ISAE 3410

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • CDP Climate Change Program A List (3 consecutive years)
  • GRESB Real Estate Assessment 5 Stars (2 consecutive years)
  • Global and Regional Sector Leader in GRESB Real Estate Assessment
  • Dow Jones Sustainability Asia/Pacific Index component company
  • ARES ESG Award 2023 Best Recommendation Award in Governance Category
  • ESG Finance Awards Japan Environmentally Sustainable Company (2 consecutive years)
  • ESG Finance Awards Japan Progressive Company in Environmental Disclosure