Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Social Contribution
• Governance
• Human Rights

Environmental Achievements

• Reduced energy consumption per square meter by 17.6% and CO2 emissions per square meter by 24.8% from 2018 to 2021.
• Achieved AAA rating in Tokyo's energy performance evaluation system for Kyobashi Trust Tower.
• Implemented various waste reduction initiatives in hotels (e.g., eliminating plastic straws, reducing single-use shampoo).

Social Achievements

• Implemented various initiatives to improve employee well-being and work-life balance.
• Conducted tenant and hotel operator satisfaction surveys.
• Participated in community events and volunteer activities.
• Introduced Pure wellness rooms in some hotels.

Governance Achievements

• Established a robust compliance system with a compliance officer and committee.
• Implemented measures to manage conflicts of interest.
• Developed and published a policy on customer-centric business operations.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks such as increased tax burdens due to carbon taxes, rising repair costs due to stricter energy efficiency standards, and potential damage from natural disasters.
• Transition risks related to changes in environmental policies and social values.
• Maintaining high levels of ESG performance across the portfolio.

Mitigation Strategies

• Conducting scenario analysis to identify and assess climate-related risks and opportunities.
• Implementing energy efficiency measures and renewable energy adoption.
• Developing alternative sourcing strategies and disaster preparedness plans.
• Strengthening ESG monitoring of suppliers and partners.

Supply Chain Management

Responsible Procurement

• Considering sustainability performance when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, heavy rain, flooding, sea-level rise, extreme temperatures

Transition Risks

• Carbon taxes, stricter energy efficiency standards, changes in social values regarding environmental performance

Opportunities

• Improved energy efficiency, increased revenue from environmentally friendly properties

Reporting Standards

Frameworks Used: GRESB Real Estate Assessment, TCFD

Third-party Assurance: 株式会社安井建築設計事務所 (for environmental data)

UN Sustainable Development Goals

• Various SDGs (implied, not explicitly listed)

The company's initiatives contribute to various SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Initiatives
• Social Initiatives
• Governance Initiatives

Environmental Achievements

• Introduced LED lighting and lighting equipment with human sensors in many properties.
• Conserved a large camphor tree using traditional methods, creating a biodiversity-conscious biotope.
• Achieved a 5% reduction in energy consumption intensity compared to the baseline.
• Ito-Yokado Shonandai obtained CASBEE real estate assessment certification.
• Hiroo MTR Building and Tenjin Prime newly acquired DBJ Green Building Certification.

Social Achievements

• Continued efforts to ensure tenants’ safety and security, including measures against COVID-19.
• Implemented initiatives to improve tenant comfort, including renovations and barrier-free access.
• Conducted satisfaction surveys of tenants and hotel operators.
• Held ESG seminars with the participation of hotel management parties.
• Implemented various employee well-being initiatives, including leave systems and mental health support.

Governance Achievements

• Implemented training and awareness-raising activities on compliance for all executives and employees.
• Established a multi-layered compliance structure with a Compliance Officer and Compliance Committee.
• Established policies to prevent damages caused by antisocial forces and insider trading.
• Adopted the Principles for Customer-Oriented Business Conduct.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including damage to properties from extreme weather events.
• Transition risks related to changes in energy conservation standards and social values.
• Maintaining high tenant and hotel operator satisfaction.

Mitigation Strategies

• Conducted a scenario analysis of climate change risks and opportunities.
• Integrated climate-related risk management into company-wide risk management programs.
• Set metrics and targets to monitor efforts to reduce climate-related risks and create new business opportunities.
• Regularly conducts satisfaction surveys and implements improvement measures based on feedback.

Supply Chain Management

Responsible Procurement

• Assessment of candidates’ sustainability activities when selecting property management companies.
• Collaboration with tenants and suppliers on green leases and waste reduction.

Climate-Related Risks & Opportunities

Physical Risks

• Damage to properties from typhoons, flooding, and rising sea levels

Transition Risks

• Toughening of energy conservation standards, changes in tenant demand, and shifts in social values

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD

Certifications: DBJ Green Building Certification, CASBEE

Third-party Assurance: Yasui Architects & Engineers, Inc. (for total CO2 emissions, energy consumption and water consumption)

Awards & Recognition

• 4 Stars in GRESB Rating
• Green Star designation in GRESB Real Estate Assessment
• A level for GRESB Public Disclosure