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Firstly I would like to offer my sympathy and condolences to all those affected by COVID-19. I would also like to express my respect and gratitude to healthcare professionals and to essential workers in critical infrastructure, such as energy and logistics, who are working to prevent further spread of COVID-19.

The COVID-19 pandemic is not over yet and continues to put the brakes on social and economic activity. In addition, severe natural disasters caused by climate changes are also occurring more frequently, and sustainability initiatives are becoming more and more important. Aware of the role we play in the social infrastructure, we are focusing all our energies on the health, safety and peace of mind of our tenants and workforce through management of the real estate we own and on actions to mitigate environmental impacts, including reducing GHG emissions and effectively utilizing water resources. Every year the responsibilities and roles we must fulfil keep on growing and we are also aware through our dialogue with various stakeholders of their rising expectations of us. Whilst such societal issues will severely impact our business activities, we see them as a potential business opportunity to create new value for sustainable growth and we position our commitment to sustainability as a top priority in our management strategies.

Last year (2020), JPR and TRIM identified five high priority material issues based on an assessment of their social impact in the future. Among these issues, action on climate change is a particularly important theme and TRIM declared its support for the TCFD recommendations in May 2021, committing to use scenario analysis in the development of business strategy. We will continue actively promoting action on climate change, including conserving energy, using renewable energy, and building resilience.

Meanwhile in social initiatives, as a member of the Tokyo Tatemono Group, TRIM supports the Universal Declaration of Human Rights in the International Bill of Human Rights, international labor standards such as the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights, and has established a Human Rights Policy based on the UN Guiding Principles on Business and Human Rights.

J-REITs, which invest in real estate, operate on the principle of co-existence and co-prosperity with society, and we believe that our sustainability initiatives are essential for our sustainable growth. Based on this awareness, TRIM intends to improve long-term returns of investors and contribute to the realization of a sustainable society and urban development by implementing initiatives that squarely address social issues. We look forward to your continued support and encouragement in the future.

Yoshihiro Jozaki, Executive Officer,
Japan Prime Realty Investment Corporation

Role in Society and Value Creation Process of JPR

Role of JPR in Society

JPR believes that, as a J-REIT, its role in society consists of the following.

  1. Role of returning real estate rental revenues and other earnings to investors
    (Creating an environment in which a wide range of investors can participate in real estate investment and enjoy stable distributions)
  2. Role of supplying funds for long-term stable investment to the real estate investment market
    (Supporting activation and stabilization of the real estate investment market through the integration of real estate and finance and transparent information disclosure)
  3. Role of forming, regenerating and utilizing real estate stock
    (Promoting improvements in real estate stock through buildings with improved earthquake resistance and lower environmental impact and the creation of comfortable, convenient spaces)

Value Creation Process of JPR

JPR will contribute to resolving the changing issues faced by society through the creation of five types of value.

Value Creation Process of JPR

Sustainability Policy

For JPR to grow stably over the medium to long term, it is essential to address such social requirements as considerations for the environment, society and corporate governance. TRIM has established the "Sustainability Policy" as part of its endeavors to enhance sustainability.

Sustainability Policy

Based on its corporate philosophy of working with integrity and commitment to its responsibilities, TRIM has resolved to contribute to the sustainable development of society and the investment management business through discussion and cooperation with its stakeholders (including investors and tenants), while aiming to maximize value for JPR's unitholders.

Initiatives on Behalf of Tenants

We will work with integrity and responsibility in responding to tenants, and endeavor to provide them with new and distinct values as well as enhancing their satisfaction.

Initiatives on Behalf of the Environment

Recognizing the importance of addressing environmental issues, we will aim to reduce he environmental load by managing the assets owned by JPR.

  • We will promote energy saving and the reduction of greenhouse gas emissions.
  • We will endeavor to make effective use of water resources and work on the "3Rs" (reuse, reduce and recycle).
  • We will strive to proactively disclose information on environmental issues.

Initiatives on Behalf of Local Communities

We will work to coordinate with local communities by managing the assets owned by JPR, in an effort to contribute to enhancing the brand value of the area in which such assets are located.

Initiatives on Behalf of Employees

We will respect each of our employees to achieve an employee-friendly workplace, helping them enhance their abilities in their specialties.

Initiatives on Behalf of Society

We will abide by laws and regulations as well as the rules of society, and conduct business operations with a focus on transparency and objectivity while maintaining our high moral standards.

Sustainability Management

In 2018, TRIM established the Sustainability Committee to continuously promote sustainability initiatives systematically.
Chaired by the President and CEO, the overall Sustainability Committee consists of the Sustainability Committee, which comprises managerial personnel of TRIM, and the Secretariat, a subordinate organization of the Committee. The Sustainability Committee meets at least four times a year, in principle. In addition, the Sustainability Committee conducts activities such as setting sustainability targets, monitoring and assessing sustainability activities, and raising awareness among officers and employees, and the details of major activities of the Committee are reported to the Board of Directors of JPR and TRIM.
TRIM established an organization dedicated to sustainability (Sustainability Group), which focuses on running the Sustainability Committee and tackling each material issue.

Sustainability Management

International Initiatives

Signing of the Principles for Responsible Investment (PRI)

The Principles for Responsible Investment (PRI) refers to the six principles (see below for specific descriptions) as well as the international network of investors established to realize those principles. PRI is promoted by the United Nations Environment Programme ("UNEP") and the United Nations Global Compact ("UNGC").
PRI encourages companies to incorporate environmental, social and corporate governance ("ESG") issues into decisions on investments. By incorporating these perspectives into the investment decision-making processes, PRI aims for companies to enhance the long-term performance of their beneficiaries and further fulfill their fiduciary duties.
TRIM became a signatory to PRI in May 2019, in agreement with its fundamental thinking.


Acquisition of ranking in GRESB Real Estate Assessment

GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) awareness of real estate companies and funds, as well as the name of organization which runs the assessment system. It was founded in 2009 primarily by major European pension fund groups. Of the survey subjects, GRESB Real Estate Assessment covers real estate companies and funds that are mainly engaged in managing existing properties.
With regard to JPR's initiatives on sustainability, the 2020 survey acknowledged its superiority both in the "Management Component" and "Performance Component" dimensions, and designated JPR as "Green Star" for the seventh consecutive year. Moreover, JPR was granted "5 Stars" for the second consecutive year, which is the highest mark in GRESB Rating. In addition, JPR received an "A," the highest rating, in GRESB Public Disclosure (Evaluation of ESG Disclosure Level).

The following initiatives taken by JPR were acknowledged in the assessment of the survey:

  • Enhanced management and strategy for sustainability, including establishment of objectives and reinforcement of the implementation system
  • Concrete actions for appropriately understanding ESG risks and improving on ESG issues
  • Strengthened efforts in establishing relationships with tenants and other stakeholders


Inclusion in MSCI Japan ESG Select Leaders Index

The index is designed to target companies with relatively high Environmental, Social and Governance ("ESG") performance from among the MSCI Japan Investable Market Index (IMI) Top 700 Index. The index has been selected as one of the ESG indices for passive investment by Japan's Government pension Investment Fund (GPIF). The index is reviewed periodically for reconstitution based on MSCI ESG Ratings, market capitalization and other criteria. In a review conducted in May 2021, JPR was newly included in the index in the real estate sector.


  • The inclusion of JPR in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names in notifications about this matter do not constitute a sponsorship, endorsement or promotion of JPR by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

Materialities and SDGs

JPR and TRIM recognize that the realization of a sustainable society is essential for stable growth in the medium and long runs. TRIM approaches sustainability from the two perspectives of stakeholders' societal demands and business domains and determined materiality (material issues) for enhancing the social value provided through business activities as follows.

Materiality determination process

TRIM determined five material issues as social issues to be solved through business activities. JPR and TRIM will implement sustainability measures to solve these issues and also focus on the enhancement of ESG management.

Steps when considering materiality

Step 1 Consider and identify social issues

TRIM listed up social issues linked to business activities by categories of environment, society and governance, with reference to the SDGs and other international targets, reporting standards such as the GRI Sustainability Reporting Standards and Sustainability Accounting Standards Board (SASB) standards, to broaden its understanding.

Step 2 Assess and prioritize the identified issues

TRIM assessed 16 social issues and measured their importance. In its assessment, TRIM used the two assessment criteria of societal significance (stakeholders' needs) and business relevance (domains which are relevant to current business or have future business potential), and scored issues based on the following six perspectives.

Societal needsBusiness relevance
Comparison with other companies in the same industry Analysis of existing initiatives
Industry analysis Interviews with senior management
Expert reports Workforce interviews

Step 3 Validate

TRIM validated the proposed material issues in light of the material issues of other companies in the same industry, the assessment criteria of ESG rating agencies, and exchanges of views with outside consultants.


Step 4 Determine materiality

Following approval of the proposed and validated material deliberates by TRIM's Sustainability Committee, TRIM determined the ESG-related material issues which are important for JPR and TRIM and reported these to TRIM's Board of Directors and JPR's Board of Directors.

SDGs is an abbreviation for Sustainable Development Goals and represents the global goals to be achieved by 2030 adopted at the Millennium Summit of the United Nations. The SDGs have set 17 goals in a wide range of areas in light of a variety of social issues in developing and developed countries, and investment corporations and companies are expected to contribute to their achievement.

Sharing the philosophy of the SDGs, JPR and TRIM will contribute to the achievement of the goals through their business activities.


Materiality and Strategy target of JPR and TRIM (2030)


Stakeholder Engagement

Major stakeholders of JPR and TRIM are tenants, local communities, employees, unitholders, investors and business partners. TRIM emphasizes stakeholder engagement by which TRIM uses dialogues with stakeholders for its asset management and business management through a variety of day-to-day mechanisms.

StakeholdersThinking of dialogueMethods of dialogue
Tenants Work to improve services and the level of satisfaction by reflecting voices of tenants. ・ Tenant satisfaction survey
・ Collaboration on energy saving and disaster prevention
Local communities Contribute to local communities by working to enhance their value through community activities. ・ Participation of volunteers in cleaning activities
・ Participation in local events and festivals
Employees Make efforts to cultivate professional human resources by working to realize a rewarding workplace where employees can sense their growth. ・ Variety of education and training
・ Award programs
・ Periodic personnel interviews
・ Customer satisfaction surveys
Unitholders and investors Aim to build a long-term relationship of trust with unitholders and investors and acquire appropriate recognition through sincere and fair information disclosure and active communication. ・ General meeting of unitholders
・ Results briefings
・ IR meetings (Japan and overseas)
・ Seminars for individual investors
Business partners such as property managers (PMs) Aim to establish a relationship of trust and achieve mutual development through fair and equitable transactions with business partners. ・ Sharing of Sustainable Procurement
Periodic information sharing
・ Implementation of workshops