Climate Change Data

Environmental Metrics

ESG Focus Areas

• Reduce environmental impact and generate energy
• Continuously improve compliance and governance
• Create communities closely tied to localities and promote high-quality town management
• Proactively harness new technologies to develop smart cities that serve as platforms for ultra-smart societies
• Create new industries through open innovation
• Achieve a society where a diverse workforce can thrive
• Achieve health, safety and security in people's daily lives
• Establish ultra-smart societies by creating neighborhoods

Environmental Achievements

• Six office complexes (six buildings) designated as Top Level Offices and eight office complexes (11 buildings) as Semi-Top Level Offices under the Excellent Designated GHG Offices program.
• Operates five megasolar power stations with a planned total generating capacity of 72 MW.
• Nihonbashi Smart Energy Project, Japan’s first project for supplying electricity and heat to surrounding areas, including existing buildings.

Social Achievements

• Achieved 100% return rate from childcare leave for more than 20 years among regular Mitsui Fudosan employees.
• Certified as an Excellent Enterprise of Health and Productivity Management 2019 (White 500) in the large enterprise category.
• Nihonbashi Life Science Innovation Promotion Project, encouraging and revitalizing cooperation among industry, government and academia in the life science domain.
• Opened new Mitsui Garden Hotels in Otemachi, Gotanda, Nihonbashi, and Kanazawa.

Governance Achievements

• Established Compensation Advisory Committee and Nomination Advisory Committee.
• Introduced a corporate officer system.
• Appointed outside directors to strengthen the oversight functions of the directors and enhance management transparency.
• Established internal consultation service for compliance issues.

Climate Goals & Targets

Environmental Challenges

• Temporary effects due to natural disasters such as earthquakes and heavy rains.
• Shrinking and aging populations, particularly in regional Japanese cities.
• Further expansion of the E-commerce market.
• Diversifying customer needs in regard to property sales, rental properties, and reforms.
• Increasing competition for site purchasing.
• Changes in the social environment (shrinking working population, working style reform, worsening of personnel shortages, etc.)
• Changing office needs, starting with office sharing.
• Mass supply of class S and A buildings and manifestation of secondary vacancies.
• Increasing supply of new advanced logistics facilities.
• Chronic personnel shortages in the logistics industry.
• Fall in the amount of asset acquisition in the J-REIT market.
• Increasing competition for business opportunities.
• Use Group capabilities to further strengthen site strategy.
• Develop a product strategy that anticipates customer needs.
• Develop a location strategy that takes into account population and supply trends.

Mitigation Strategies

• Successfully implemented measures to increase value for visiting customers at retail properties.
• Continuously increase value for customers visiting existing properties.
• Deepen inbound strategy.
• Intensify marketing strategy using ICT.
• Promote fashion E-commerce mall “&mall”.
• Offer broader range of housing options that anticipate customer needs.
• Strengthen coordination between Group housing companies.
• Use the Group’s capabilities to seize business opportunities such as rebuilding and conversion projects.
• Further strengthen neighborhood creation.
• Strengthen and promote tenant leasing.
• Strengthen engagement in WORKSTYLING business.
• Provide new business infrastructure and utilize ICT to strengthen existing businesses.
• Use group capabilities and ability to offer solutions to strengthen tenant leasing.
• Cultivate a new exit strategy.

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather patterns increasing the risk of damage to business activities.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: Excellent Enterprise of Health and Productivity Management 2019 (White 500), Kurumin certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Investment
• Sustainable Urban Development

Environmental Achievements

• Joined RE100 (aiming for 100% renewable energy in operations by 2050)
• Endorsed TCFD recommendations
• Reduced energy consumption per square meter by 3.4%
• Reduced GHG emissions per square meter by 7.0%
• Achieved 98.5% recycling rate for food waste at commercial facilities
• Implemented various initiatives for water conservation, waste reduction, and biodiversity conservation.

Social Achievements

• Launched various initiatives for work-life balance, including childcare support, eldercare support, and flexible work arrangements.
• Achieved 99.8% health checkup/medical examination rate among employees.
• Implemented stress checks for employee mental health.
• Continued 100% return rate for employees on parental leave.
• Promoted diversity and inclusion initiatives.
• Supported community engagement through various projects and partnerships.

Governance Achievements

• Established ESG Promotion Committee and ESG Promotion Subcommittee.
• Implemented robust risk management and compliance systems.
• Strengthened corporate governance through board diversity and executive compensation linked to ESG performance.
• Issued green bonds to finance sustainable projects.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Supply chain disruptions
• Maintaining high standards of ESG performance across a large and diverse group of companies.
• Balancing economic growth with environmental and social responsibility.

Mitigation Strategies

• Scenario analysis to assess climate-related risks and opportunities.
• Implementation of energy efficiency measures and renewable energy initiatives.
• Development of sustainable procurement standards.
• Strengthening of risk management and compliance systems.
• Active stakeholder engagement to address concerns and identify opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement standards covering various aspects, including human rights, labor standards, environmental protection, and corporate ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, heat waves

Transition Risks

• Changes in regulations, market shifts towards decarbonization

Opportunities

• Development of energy-efficient buildings and sustainable urban development projects

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: Null

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

UN Sustainable Development Goals

• Multiple SDGs are mentioned in the report, but not comprehensively listed.

The report explains how various initiatives contribute to the SDGs, but does not provide a detailed mapping.

Sustainable Products & Innovation

• Energy-efficient buildings, sustainable urban development projects

Awards & Recognition

• Good Design Award (Mitsui Fudosan Residential)
• Health Management Excellent Company Certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Water Resource Management
• Biodiversity
• Supply Chain Management
• Corporate Governance

Environmental Achievements

• Selected for inclusion in the CDP Climate Change A List (Highest Evaluation)
• Acquired SBT Initiative Certification for Greenhouse Gas (GHG) Emission Reduction Targets

Social Achievements

• Affiliation with RE100 (100% renewable energy)
• Established a Code of Employee Conduct with regard to human rights
• Formulated Sustainable Procurement Standards

Governance Achievements

• Introduced Outside Auditors
• Introduced Corporate Officer System (separation of management and execution)
• Introduced Outside Directors
• Established Corporate Auditor’s Department
• Established Compensation Advisory Committee
• Established Nomination Advisory Committee

Climate Goals & Targets

Environmental Challenges

• Changes in office and housing needs associated with remote work
• Changes in the need for real retail facilities associated with growth in E-commerce
• Geopolitical risks caused by US-China tensions
• Changes in social awareness of sustainability and tightening of regulations concerning properties
• Risk of prolonged economic stagnation due to COVID-19
• Risk of interest rate and tax hikes due to shift from monetary easing policy
• Delayed recovery in inbound customers due to the COVID-19 pandemic
• Decrease in business travel demand due to restricted activity and changes in working styles
• Imposition of business restrictions due to new epidemics
• Decline in visitors due to population decline and the emergence of new competing facilities
• Expansion of consumer activity unrestricted by location and time as EC spreads
• Intensification of competition for land acquisition due to entry of new players
• Overheating of leasing competition due to high-volume supply of new properties
• Decline in housing-related demand due to rising interest rates and worsening business sentiment
• Contraction of domestic housing-related market due to population decline

Mitigation Strategies

• Business development matched to market characteristics
• Maintenance and strengthening of competitiveness by discerning changes in the market environment and reworking product planning
• Strengthening the value of real facilities and enhancing the value of facilities visits by offering compelling content that attracts visitors
• Enhancement of member customers’ frequency of use and purchase unit price though the promotion of One to One marketing
• Capture of wide-ranging purchasing demand by promoting an omni-channel
• Achievement of business planning, leasing, etc. through provision of logistics consulting and other solutions to customers
• Promotion of differentiation from competitors by enhancing storage and operational efficiency of facilities through mechanization and digitalization
• Creation of new value utilizing our logistics facilities development know-how
• Maintenance of high profit margins and contract rates through a product lineup centered on central Tokyo, large-scale projects, and redevelopment
• Enhancing the ability to capture business opportunities through strengthening of cooperation among Group companies and mutual customer referrals
• Provision of proposals and solutions for optimal “Homes and Living” for every life stage of diverse customers
• Deepening and expansion of loyal customers through the one-stop provision of diverse products and services

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Intensification of abnormal weather patterns
• Average temperature increase

Transition Risks

• Major carbon tax increase
• Energy conservation measures
• Customer conduct change

Opportunities

• Cost control through introduction of low-carbon materials
• Share expansion as a result of ZEH becoming requirement
• Creation and sales of carbon credits as a result of ZEH construction
• Shift to buildings with superior environmental performance
• Propagation of technology for renewable energy and energy conservation
• Expansion of energy conservation renovation business
• Reduced air conditioning costs through AI
• Reduced lighting and heating costs due to increased energy conservation performance

Reporting Standards

Frameworks Used: TCFD

Certifications: SBT

Awards & Recognition

• CDP Climate Change A List

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diverse Workforce
• Health, Safety, and Security
• Open Innovation
• Environmental Impact Reduction
• Compliance and Governance

Environmental Achievements

• 14.2% reduction in energy consumption per base unit (0.03479 kℓ of oil equivalent/m2 per year)
• Achieved total reduction of 28.4% in CO2 emissions against mandated reduction of 11.2%
• Reduced water intake per base unit from 0.851㎥/㎡ to 0.708㎥/㎡

Social Achievements

• Achieved 99.5% health checkup and screening rate for employees
• 100% return rate from childcare leave for regular employees
• Launched various initiatives to promote diversity and inclusion

Governance Achievements

• Established ESG Promotion Committee and ESG Management Committee
• Implemented a robust compliance program
• Introduced a corporate officer system to enhance management soundness and efficiency

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Maintaining strict compliance and strengthened governance in international business
• Addressing social challenges such as a falling birthrate and aging society

Mitigation Strategies

• Adopted TCFD recommendations and joined RE100
• Bolstered compliance and governance structures
• Implemented neighborhood creation initiatives addressing social issues

Supply Chain Management

Supplier Audits: 6 supplier questionnaires and 2 on-site surveys

Responsible Procurement

• Sustainable forest resource procurement
• Sustainable procurement standards

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Intensification of abnormal weather patterns
• Increased number of extremely hot days

Transition Risks

• Major carbon tax increase
• Energy conservation measures
• Changes in customer conduct

Opportunities

• Cost control through low-carbon materials
• Expansion of energy conservation renovation business
• Reduced air conditioning costs through AI

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

Sustainable Products & Innovation

• ZEH (Zero Energy House) buildings
• Smart Breeze air-conditioning system

Awards & Recognition

• Minister of Land, Infrastructure, Transport and Tourism Award for Urban Design Corporations
• Ishikawa Award by the City Planning Institute of Japan
• Good Design award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Achieved 100% health checkup and screening rate for steady-basis employees in FY2021 and FY2022.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Contribute to industrial competitiveness
• Coexist with the environment
• Health and vitality
• Safety and security
• Diversity and inclusion
• Compliance and governance

Environmental Achievements

• Reduced CO² emissions by 10.1% from 2019 to 2023 (442,000 t-CO²)
• Increased renewable energy share to 12.7% in 2023
• Achieved 100% new building external environmental certification acquisition rate
• Reduced energy consumption per unit by 1.1% in 2023
• Increased waste recycling rate to 78.2% in 2023
• Completed PPA solar power generation facilities at Hiroshima and Kumamoto airports
• Launched the "Kurashi no Sasukatsu" app for automatic CO² reduction point accumulation
• Obtained "Natural Symbiosis Site" certification for Hokkaido Rumoi group-owned forest
• Commenced construction of Japan's largest and tallest timber-framed rental office building in Nihonbashi
• Completed a 4-story all-timber carbon-zero rental apartment building
• Developed a sustainability-linked finance framework

Social Achievements

• Launched open innovation support programs for startups at Mitsui's Lab & Office
• Expanded Nihonbashi's space business base with JAXA as a core tenant
• Promoted collaboration between public, private, and academic sectors in Kashiwa-no-ha area
• Opened a research and development base in Kashiwa-no-ha Smart City with SMC
• Achieved a cumulative investment of 1 trillion yen in Mitsui Fudosan Logistics Parks in 2023
• Opened "THE [] STORE" for weekly pop-up shops of EC brands
• Launched a fixed-price plan for startup companies in shared offices
• Launched a collaboration with JR East's "STATION WORK"
• Supported the growth of young artists through the "Sono Aida" art project
• Opened a community lab in Tokyo Nihonbashi
• Invested in Caelux Corporation, a startup developing perovskite solar cells
• Launched a food innovation platform "&mog"
• Opened a new facility for EC brand support
• Selected as a business applicant for the Tsukiji district urban development project
• Established an Innovation Promotion Headquarters
• Opened "LaLa arena TOKYO-BAY"
• Concluded a major partnership contract with the JFA
• Held the 25th Mitsui Fudosan Sports Academy Basketball Academy
• Launched a joint project with TBS on pickleball
• Implemented large-scale renovations at Tokyo Dome City
• Opened the second LaLaport CLOSET showroom store
• Opened a pavilion to experience the view of a 50-story super high-rise tower
• Launched "mitaseru," a curated gourmet platform
• Significantly renewed the Mitsui Shopping Park app
• Launched "HUBHUB," a new business utilizing mobile units
• Successfully held the "Hibiya Music Festival 2023"
• Introduced a model room using Mixed Reality
• Installed sanitary products in office floor toilets in Tokyo Midtown Yaesu
• Held health forums and seminars for employees
• Certified as a "Health Management Excellent Company 2024 (White 500)" for 8 consecutive years
• Supported the employment expansion and career advancement of people with mental disabilities through SUPERYARD
• Promoted sports-based urban development
• Installed VUEVO Display for smooth communication
• Expanded temporary childcare services "YASMO"
• Supported D&I initiatives of companies in Mitsui's Office

Governance Achievements

• Improved the ratio of outside directors
• Established an ESG Promotion Committee and ESG Promotion Sub-committee
• Strengthened risk management system
• Implemented compliance training
• Established internal and external consultation desks
• Enhanced corporate governance structure
• Evaluated the effectiveness of the board of directors
• Participated in the UN Global Compact
• Obtained SBT initiative certification
• Signed the Principles for Responsible Investment (PRI)
• Joined RE100
• Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Climate Goals & Targets

Environmental Challenges

• Decreasing urban competitiveness, declining workforce, economic stagnation in Japan
• Severe social issues impacting existing business profits
• Environmental destruction leading to loss of natural capital
• Government regulations on environmental protection increasing costs
• Threats from natural disasters and infectious diseases
• Challenges in responding to diverse customer needs in a rapidly changing society
• Difficulties in responding to diverse customer needs in a rapidly changing society
• Need for flexible systems to address individual challenges like childcare and nursing care
• Risk of value depreciation of assets due to disasters and pandemics

Mitigation Strategies

• Strengthening group company collaboration, developing customer-centric products, enhancing urban development
• Providing new business infrastructure to customers, promoting DX, developing a location strategy considering population dynamics and supply trends
• Strategic construction of asset portfolios including overseas assets
• Developing a group action plan for achieving a decarbonized society
• Developing disaster response plans, improving disaster-resistant facilities, implementing disaster drills
• Developing the "Mitsui Fudosan 9-BOX Infection Control Standards"
• Combining digital and real-world experiences to maximize real-world value
• Utilizing sports and entertainment to enhance real-world experiences
• Supporting corporate health management through &well
• Providing support for childcare and nursing care, creating barrier-free buildings
• Providing digital support services to meet diverse needs
• Promoting D&I as a key management strategy
• Implementing various initiatives for diverse employees
• Promoting women's active participation through environmental improvements and career support
• Positioning compliance as a top priority in group management
• Strengthening the board of directors' structure
• Implementing risk management plans in group companies
• Establishing a crisis management center
• Concluded a disaster prevention agreement with Zama City
• Strengthening disaster response capabilities at Tokyo Midtown
• Implementing a stable energy supply project in the Nihonbashi 1-chome area
• Supporting the employment expansion and career advancement of people with mental disabilities
• Supporting the Japanese wheelchair rugby team

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with construction companies and material suppliers for GHG emission reduction
• Use of timber from group-owned forests

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, typhoons, heavy rains)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Renewable energy development
• Green power utilization

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, SBT

Certifications: LEED, CASBEE, BREEAM, DBJ Green Building, Nearly ZEB

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Perovskite solar cells
• Timber from group-owned forests

Awards & Recognition

• CDP Climate Change A List (3 consecutive years)
• Supplier Engagement Leader
• Nadeshiko Brand (3 consecutive years)
• MSCI Japan Women's Empowerment Index (WIN) (7 consecutive years)
• Health Management Excellent Company 2024 (White 500) (8 consecutive years)