Climate Change Data

United Urban Investment Corporation

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Energy Consumption:291,588 MWh
Water Consumption:1,881,000 m³

ESG Focus Areas

  • Energy Management
  • Water Management
  • Management of Tenant Sustainability Impacts
  • Climate Change Adaptation
  • Governance

Environmental Achievements

  • Lowered energy consumption intensity by more than 1% on a five-year average.
  • Achieved the highest rank of “S” for seven consecutive years in the Classification of Business Operators by the Ministry of Economy, Trade and Industry.
  • ESG financing five times since 2019, raising a total of ¥28.0 billion.

Social Achievements

  • Introduced green lease agreements and memorandums to share energy and water consumption data between owners and tenants.
  • Many properties use smart meters and individual meters to measure electricity/water consumption, feeding the data back to tenants for cost calculation.

Governance Achievements

  • Periodic disclosure of energy data of properties.
  • Incorporation of energy management into real estate investment and management process.

Climate Goals & Targets

Medium-term Goals:
  • 40% reduction in GHG emissions compared to 2014.
Short-term Goals:
  • Lower energy consumption intensity by more than 1% on a five-year average.

Environmental Challenges

  • Difficulty in understanding energy consumption trends in some properties where tenants manage consumption independently.
  • Potential for increased exposure to flood risk due to climate change.
  • Potential increase in energy costs and capital investment burden due to future government regulations on energy efficiency and carbon emissions.
Mitigation Strategies
  • Energy Saving Committee and Energy Saving Working Group monitor energy consumption trends and implement operational improvement measures and facility upgrades.
  • Improving disaster prevention measures of properties to reduce physical risks.
  • Promoting greening of portfolio by acquiring environmental certifications to reduce negative financial impacts due to regulation risks and improve reputation.

Supply Chain Management

Responsible Procurement
  • Basic Supply Chain Sustainability Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Increased average temperature
  • Increased number of intense hot days
  • Typhoons and torrential rain
Transition Risks
  • Government regulations on energy efficiency and carbon emissions
  • Transition to a low-carbon and decarbonized society
Opportunities
  • Green premiums for properties with green building certifications
  • Methods to raise funds through green bonds/green loans
  • Mitigating environmental impact reduces building operation costs.

Reporting Standards

Frameworks Used: GRI, SASB

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

Awards & Recognition

  • Highest rank of “S” for seven consecutive years in the Classification of Business Operators by the Ministry of Economy, Trade and Industry.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Scope 1: 3,000 t-CO2e/year (2023); Scope 2: 15,000 t-CO2e/year (2023); Scope 3: 82,000 t-CO2e/year (2023)
Scope 1 Emissions:3,000 t-CO2e/year (2023)
Scope 2 Emissions:15,000 t-CO2e/year (2023)
Scope 3 Emissions:82,000 t-CO2e/year (2023)
Total Energy Consumption:2,403,915 GJ/year (2023)
Water Consumption:2,320,000 m3/year (2023)
Waste Generated:Non-hazardous: 5,099 tons/year (2023); Hazardous: 108 tons/year (2023)

ESG Focus Areas

  • Climate Change
  • Environmental Footprint Reduction
  • Sustainable Cities and Community Contribution
  • Human Rights
  • Good Working Environment
  • Stakeholder Cooperation
  • Internal Sustainability Systems
  • Legal Compliance
  • Information Disclosure

Environmental Achievements

  • Achieved 83.9% environmental certification coverage (based on total floor area) as of end of May 2024.
  • Received a “4 Stars” in GRESB Rating and a “Green Star” designation for the ninth consecutive year in the 2023 GRESB Real Estate Assessment.
  • Achieved a “B” rating in CDP Climate Change assessment.

Social Achievements

  • Maintained 100% employee participation in performance feedback and career consultations.
  • Implemented universal design in most properties to enhance accessibility.
  • Offered properties as disaster prevention/evacuation centers for local communities.

Governance Achievements

  • Established a Sustainability Policy in March 2022.
  • Sustainability finance framework received JCR’s highest rating, “SU1(F)” in June 2023.
  • Supports TCFD recommendations and discloses climate change-related information.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero GHG emissions by FY2050.
Medium-term Goals:
  • Reduce combined Scope 1 and Scope 2 GHG emissions by 42% by FY2030 compared to FY2021.
  • Include Green Lease clauses in all lease contracts with office tenants by end of November 2030.
Short-term Goals:
  • Reduce water consumption intensity by 5% by FY2025.
  • Increase environmental certification coverage to 80% by end of November 2024.

Environmental Challenges

  • Reliance on tenants and property management companies for property-level raw data.
  • Challenges in independently verifying the accuracy of raw data provided by tenants and property management companies.
  • Climate-related risks such as more frequent and severe heavy rains, rising average temperatures, and increased and more severe tropical cyclones.
Mitigation Strategies
  • Engaged an independent third-party accounting firm for assurance report on portfolio-level data.
  • Implemented water damage countermeasures, changed insurance coverage, and formulated a BCP manual.
  • Implemented energy-saving initiatives, GHG emission reduction initiatives, water-saving initiatives, and waste management initiatives.

Supply Chain Management

Responsible Procurement
  • Basic Supply Chain Sustainability Policy
  • Supply Chain Sustainability Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • More frequent and severe heavy rains
  • Increased average temperature
  • Increased and more severe tropical cyclones
Transition Risks
  • Tighter GHG emission regulations
  • Transition to construction-related low-carbon technology
  • People’s behavior becoming more environmentally conscious
Opportunities
  • Stronger investment appetite for real estate with excellent environmental performance

Reporting Standards

Frameworks Used: GRI Standards, SASB (Real Estate Industry) Framework

Certifications: DBJ Green Building Certification, CASBEE for Real Estate, BELS and ZEB Certification, SBTi (Science-Based Targets initiative) Certification, Eco-Action 21

Third-party Assurance: Sustainability Accounting Co., Ltd.

Awards & Recognition

  • GRESB 4 Stars Rating
  • GRESB Green Star designation (9 consecutive years)
  • MSCI Japan ESG Select Leaders Index constituent