MIRAI Corporation
Climate Impact & Sustainability Data (2023-04 to 2024-03)
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:47,131 tCO2e/year
Scope 1 Emissions:546 tCO2e/year
Scope 2 Emissions:11,738 tCO2e/year
Scope 3 Emissions:34,846 tCO2e/year
Total Energy Consumption:89,538 MWh/year
Water Consumption:557,377 m3/year
Waste Generated:3,366 tons/year
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Achieved 4 stars and Green Star in the 2023 GRESB Real Estate Assessment
- Reduced GHG emission intensity by 2% compared to the previous year (planned values)
- Converted entire facility at Mi-Nara to LEDs, resulting in expected 2% reduction in energy consumption compared to the previous year
- Switched some properties to renewable energy sources, resulting in 31,956 MWh of renewable energy use (April 2023 - March 2024)
- 71.4% of assets (excluding land) have environmental certifications (as of end of June 2024)
Social Achievements
- Implemented various measures to ensure tenant safety and comfort, including disaster preparedness, health considerations, and universal design facilities
- Conducted tenant satisfaction surveys to improve services
- Supported local communities through events, sponsorships, and collaborations
- Introduced a unitholder benefit program offering discounts at various hotels
Governance Achievements
- Established a Sustainability Committee to promote ESG initiatives
- Established “Related-Party Transaction Rules” and “Conflict of Interest Transaction Management Manual” to prevent conflicts of interest
- Established a robust compliance structure with Compliance Rules, Compliance Manual, and a Compliance Program
- Actively engaged in IR activities with both institutional and individual investors
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions by 2050
Short-term Goals:
- Reduce GHG emission intensity of the portfolio by 5% over the next 5 years
- Reduce energy consumption intensity of the portfolio by 5% over the next 5 years
Environmental Challenges
- Heightened geopolitical risk impacting sustainability promotion
- Climate change risks, including transition risks (policy changes, technology evolution, market shifts) and physical risks (extreme weather events, sea-level rise)
Mitigation Strategies
- Setting long-term targets for environmental performance (reducing GHG emission and energy consumption intensity by 5% over 5 years)
- Implementing various environmental initiatives (LED lighting conversion, energy conservation measures, renewable energy introduction, green lease agreements)
- Conducting scenario analysis based on IEA and IPCC data to assess climate-related risks and opportunities
- Establishing a climate-related risk management system for identification, assessment, and management of risks and opportunities
- Implementing green finance initiatives (Green Bonds and Green Loan)
Supply Chain Management
Responsible Procurement
- Sustainable Supply Chain Policy (Mitsui & Co. Group); criteria include respect for international standards, human rights, environmental impact reduction, and safety and security of products and services
Climate-Related Risks & Opportunities
Physical Risks
- Typhoons, torrential rains, floods, inundation damage, sea-level rise, extreme weather conditions
Transition Risks
- Carbon taxes, GHG emission regulations, stricter energy conservation standards, stricter reporting requirements, evolution of energy-saving technologies, penetration of renewable energy, reflecting environmental performance in real estate appraisal values, deterioration in financing conditions, changing tenant needs
Opportunities
- Increased demand for properties with high environmental performance, expansion of investor base, resource efficiency (providing energy-saving equipment and services to tenants)
Reporting Standards
Frameworks Used: GRI Standards
Third-party Assurance: Sustainability Accounting Co., Ltd. (limited assurance on selected environmental data)