Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Acquired DBJ Green Building Certification for 7 properties, increasing the percentage of certified properties (area basis) from 60.0% to 78.1% and (property basis) from 36.4% to 55.7%
• Nisseki Yokohama Building acquired a 2-Star BELS evaluation.
• Second Green Bond issuance (5 billion yen, 15-year term).
• Achieved Green Star/5-Star rating in the 2020 GRESB Real Estate Assessment for the sixth consecutive year.

Social Achievements

• Implemented initiatives to improve tenant satisfaction (disaster prevention measures, events, renovations).
• Conducted annual employee satisfaction surveys.
• Implemented various employee wellbeing initiatives (flexible working hours, leave systems, health checkups).
• Supported employee skill development through training programs and professional certification acquisition.

Governance Achievements

• Japan Excellent Asset Management Co., Ltd. (JEAM) signed the Principles for Responsible Investment (PRI).
• MSCI ESG Rating upgraded from “BBB” to “A”.
• Executed sustainability finance (2 billion yen sustainability loan).

Climate Goals & Targets

Environmental Challenges

• Potential for personal/material damage due to increased frequency of extreme weather events.
• Risks related to regulatory changes and advancements in energy-saving technology.
• Potential decrease in tenant satisfaction.
• Potential decrease in investor evaluation due to insufficient sustainability initiatives.

Mitigation Strategies

• Implementing energy-efficiency upgrades (LED lighting, high-efficiency equipment).
• Improving operating methods for air-conditioning and lighting.
• Regularly measuring greenhouse gas emissions and working to reduce CO2 emissions.
• Conducting tenant satisfaction surveys and implementing improvements based on feedback.
• Proactive engagement with stakeholders and transparent information disclosure.

Supply Chain Management

Responsible Procurement

• Assessment of sustainability-related initiatives of property management companies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events leading to personal/material damage

Transition Risks

• Regulatory changes and advancements in energy-saving technology

Opportunities

• Reduction of operating costs through improved environmental performance

Reporting Standards

Frameworks Used: GRESB

Certifications: DBJ Green Building Certification, BELS, CASBEE Real Estate Certification

Third-party Assurance: Ernst & Young Shinnihon LLC (limited assurance)

Awards & Recognition

• Green Star/5-Star rating in GRESB Real Estate Assessment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Social Initiatives
• Governance

Environmental Achievements

• Reduced CO2 emissions by switching power at 22 properties (73.1% of portfolio by floor area) to CO2-free electricity.
• Obtained green building certifications for three more properties, bringing the total to 25 properties (84.6% of portfolio by floor area).
• Obtained BELS certification for one more property, bringing the total to four properties (16.1% of portfolio by floor area).

Social Achievements

• Donated emergency food stocks to food banks.
• Conducted tenant satisfaction surveys and implemented improvements based on feedback.
• Implemented various employee wellbeing initiatives, including flexible working hours and leave systems.

Governance Achievements

• Established an EMS operation manual.
• Established a new environmental KPI (green building certification ratio).
• Undertook examinations for acquiring SBT certification.
• Regularly reviewed climate change risks and opportunities.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks (extreme weather, flooding, regulatory changes, market shifts)
• Maintaining high tenant satisfaction.
• Ensuring business continuity in case of disasters.

Mitigation Strategies

• Risk assessment using hazard maps, reinforcements to reduce property damage, improving energy efficiency, switching to renewable energy, promoting green leases, implementing disaster prevention measures and a business continuity plan (BCP).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy established, considering sustainability initiatives when selecting suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Storms and floods
• Inland flooding
• Sea level rise
• Increased demand for air conditioning

Transition Risks

• Increased taxes on GHG emissions
• Strengthening of energy conservation standards
• Technological obsolescence
• Changes in tenant demand
• Changes in investor/lender stance

Opportunities

• Provision of disaster-resistant facilities and services
• Attracting tenants with efficient and low-emission facilities
• Responding to changes in investor/lender stance on ESG investments

Reporting Standards

Frameworks Used: TCFD, GRESB

Certifications: DBJ Green Building Certification, CASBEE Real Estate Certification, CASBEE Wellness Office Certification, BELS

Third-party Assurance: Ernst & Young ShinNihon LLC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives such as switching to CO2-free electricity and obtaining green building certifications contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Star (9th consecutive year) and 5 Stars (4th consecutive year) in 2023 GRESB Real Estate Assessment