Sustainability
Sustainability is JRF’s Aim
As a professional of retail facilities management, JRF shares the same concept about sustainability with Mitsubishi Corp. -UBS Realty Inc. (MCUBS) that outsources its asset management, and is forging ahead with initiatives. JRF conducts its investment and operational activities in accordance with "Responsible Property Investment Policy" a policy set out by the asset manager.
MCUBS recognized the importance of sustainability at an early stage and as an asset manager, promoted ESG activities.
Then, as a response to the “sustainable development goals” (SDGs) promoted by the United Nations as a new set of common global goals, ESG materiality (key issue) and the SDGs that are closely related to them were adopted, and we will continue to endeavor to bring about a sustainable society through reduction of environmental impact, creation of social value, and sound asset management for all stakeholders.
Closely Related SDGs to ESG Materiality of MC-UBS Group
JRF has adopted MCUBS’s policy and worked together with the MC-UBS Group, through the Sustainability Committee to study the sustainability vision and goals and ways of working towards making sustainability a reality. It is thought that, with increasing interest in ESG, the concept of sustainability will become more precise through the identification and visualization of materiality related to sustainability issues when conducting dialogue on the subject or cooperating in initiatives with stakeholders.
Level of Importance ★★★
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| Most important ESG materiality |
Target | KPI | Risk | Opportunity | Closely related SDGs |
|---|---|---|---|---|---|
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Response to sustainability certifications |
Improving proportion of environmental certifications |
Acquiring certifications for 80% or more of the total portfolio (Total floor area basis) (Target year: 2021) |
・Decline in assessment among tenants and investors who base their assessments on sustainability |
・Improve environmental performance of properties ・Expand the range of investors |
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| Improving sustainability activities through participation in GRESB and other external evaluation institutions |
・GRESB Acquiring “Green Star” ・CDP Acquiring more than “B” score |
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| Building resilience |
Implementing disaster prevention measures |
Preparing emergency supplies at 100% of the properties where such supplies can be kept ・Developing an emergency communication network that covers 100% of properties ・Collecting engineering reports (ERs) regularly for 100% of properties |
・Increase in expenses for recovery, compensation, etc., after natural disasters | ・Increase in property competitiveness |
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Response to climate change |
Reduction in CO2 emission |
Reduction in CO2 emission per unit (right axis) by 23% compared with 2015 (Target year: 2030) |
・Drop in tenant sales & increase in property damages due to physical impact of climate change ・Decline in assessment by tenants & investors |
・Cost reduction with efficient energy use |
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| Energy efficiency |
Improvement in energy consumption |
Reduction in energy consumption per unit by 20% compared with 2015 (Directly Managed properties) (Target year: 2030) |
・Increase in energy-related expenses ・Reinforcement of environmental regulations |
・Cost reduction with efficient energy use |
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| Introduction of renewable energy use |
Installing at least one renewable energy facility with economic rationality at directly managed properties (Target year: 2030) Fivefold increase in the number of directly managed properties that have introduced green power compared with 2019 (Target year: 2030) |
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Ensuring of health and well-being of and convenience for people (tenants) |
Improvement in tenant employee space |
Renovating employee lounges and restrooms at 100% of directly managed properties (Target year: 2030) |
・Decline in property competitiveness ・Manpower outflow due to declining work conditions |
・Improved sustainability assessment by assessment bodies and investors ・Improvement in employee satisfaction and tenant assessment & satisfaction |
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Level of Importance ★★
This table can be scrolled sideways.
| Important ESG materiality |
Target | KPI | Risk | Opportunity | Closely related SDGs |
|---|---|---|---|---|---|
| Efficient water use |
Reduction in water consumption |
Reducing water consumption per unit by 5% at directly managed properties compared with 2015 （Target year: 2030） |
・Impact of shortage or quality decline of water resources on surrounding areas ・Rise in cost with increase in water consumption volume |
・Cost reduction with reduction in water consumption |
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| Waste disposal | Reduction in wastes |
Implementing comprehensive waste management (waste amount, waste treatment operators, final treatment sites) at 100% of directly managed properties (Target year: 2022) |
・Reputation risk caused by increase in wastes ・Increase in processing cost |
・Processing cost reduction with reduction in wastes |
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Partnership with tenants |
Execution of tenant satisfaction survey |
Conducting tenant satisfaction surveys at 100% of directly managed properties (Target year: 2025) |
・Greater tenant burden regarding safety and the environment ・Decline in tenant satisfaction |
・Devolution into property attractive to the tenant ・Generation of stable revenues |
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| Promoting environmental consideration to tenants |
Proposing (environmentally friendly) interior design criteria for tenants at 100% of directly managed properties (Target year: 2025) |
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Collaboration with local communities |
Providing land to community events |
Conducting programs that contribute to communities at 100% of directly managed properties where events can be conducted (Target year: 2025) |
・Degradation of the environment surrounding the property ・Decline in reputation in the neighboring area |
・Revitalization of neighboring areas ・Improvement of corporate image |
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JRF’s Sustainability that Takes ESG into Account
As a member of the MC-UBS Group, JRF’s corporate activities are based on long-term perspectives of the environment, society and governance in which ESG is taken into account. From the perspective of the degree of influence on both society and the MC-UBS Group, the goal is sustainable growth of the Group and contributing to the SDGs, which, as a global company, is a sustainable development goal, through a focused approach on the identified materiality and creating economic and social value.
This table can be scrolled sideways.
| EEnvironment | |||
| Goal Contributing SDGs |
Objective of principal initiatives/Examples of initiatives | Social benefits | Company benefits |
|---|---|---|---|
| Reduce environmental impact / Reduce units of energy consumption by more than 1% per year
|
Control CO2 emissions ・Convert lighting to LED ・Update energy-saving devices for air-conditioning ・Install EV charging equipment ・Install solar panels ・Green lease ・Issue Green Bonds Reduce waste ・Redesign rubbish bins Promote efficient use of water ・Reuse rainwater ・Install water-saving toilets |
・Reduce environmental impact | ・Improved NOI ・Strengthen tenant partnership ・Increase in facility value |
This table can be scrolled sideways.
| SSociety | |||
| Goal Contributing SDGs |
Objective of principal initiatives/Examples of initiatives | Social benefits | Company benefits |
|---|---|---|---|
Create social value / Improve health and well-being of tenant employees
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Improve health and well-being of tenant employees ・Improve employee's break space Disaster prevention measures ・Establish a disaster prevention center at the time of a disaster ・Conduct a risk survey Contribute to the community and raise awareness about the environment ・Implement ESG study meeting for PM ・Greening of facilities ・Provide sites for regional events ・Provide venues locations for UHNCR activity ・Raise funds through the Kodomo no Mirai Second-hand Books project ・Hold Light-Down campaign ・Hold a Waste Not, Want Not” campaign" |
・Bring about a symbiotic society ・Revitalize local community and economy ・Bring about a sustainable society |
・Strengthen tenant partnerships ・Strengthen building resilience ・Increase facility users ・Improve recognition level |
This table can be scrolled sideways.
| GGovernance | |||
| Goal Contributing SDGs |
Objective of principal initiatives/Examples of initiatives | Social benefits | Company benefits |
|---|---|---|---|
| Practice sound asset management for all stakeholders
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Comprehensive corporate governance system ・Governing body made up of General Meeting of Unitholders, Board of Directors and Accounting Auditors ・Transparent management fees ・Transparent decision-making ・Thorough awareness of compliance issues ・Eliminate anti-social forces ・Commit to fiduciary responsibility Information disclosure to stakeholders ・Timely disclosure/optional disclosure/IR activity ・Disclose information to ESG investors Maximize investor value ・Sign on to and participate in international initiatives ・Obtain external evaluation/certification |
・Maintain and develop a sound market | ・Practice sound and efficient asset management ・Expand investor base" |