Initiatives on Behalf of the Environment
Recognizing the importance of addressing environmental issues in the real estate investment management business, JPR strives to reduce its environmental footprint by upgrading facilities and improving operations at the properties it owns. In pursuing eco-friendly management, JPR also considers issues such as facility user comfort and biodiversity.
- Climate change
- Conservation of water resources
- Reduction of waste and management of hazardous substances
- Promoting renewable energy
- Promotion of wall greening and rooftop greening
- Cooperation with tenants
- Improvement in effectiveness in cooperation with property managers
- Consideration for the environment in real estate investment
- Green Finance
- Sustainability certification
Environmental problems, such as climate change and issues related to resources, water, and ecosystem, are growing more serious due in part to the globalization of economic activities and the increase of the population. Many companies in Japan are tangibly affected by disasters including floods triggered by torrential rains. There also has been progress in the creation of international frameworks. The 2 °C target set by the Paris Agreement accelerates companies' activities to address climate change. On the other hand, laws, regulations, and other rules are expected to be tougher, reflecting the target.
JPR and TRIM recognize that climate-change-related issues will have a major impact on their business.
JPR and TRIM have identified five material issues in two aspects, social demand from stakeholders and business domains. Addressing climate change is included among the targets. In addition, TRIM includes initiatives related to climate change in its Sustainability Policy. Recognizing the importance of addressing environmental issues, we will aim to reduce environmental load through managing the assets owned by JPR.
- We will promote energy saving and reduction of greenhouse gas emissions.
- We will endeavor for effective use of water resources and work on the "3Rs" (reuse, reduce and recycle) of waste.
- We will strive to proactively disclose information on environmental issues.
Support for TCFD
In May 2021, TRIM announced its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability Board (FSB). Moving forward, TRIM will analyze risks resulting from climate change and opportunities to be created by climate change measures and proactively disclose its initiatives based on the four thematic areas of the TCFD recommendations (governance, strategy, risk management, and metrics and targets).
TRIM has established the Sustainability Committee in accordance with its Sustainability Regulations. Chaired by the President and CEO of the company, the committee meets four times every year, in principle. Activities of the Sustainability Committee include deliberation on basic policies, monitoring activities, and the establishment of system for promoting sustainability.
|Type of risk/opportunity||Risk that was identified||Time span||Level of impact|
|Level of impact|
||Increase in operation costs resulting from the introduction of a carbon tax||Medium to long||High||High|
|Cost increase resulting from the increase of energy prices||Medium to long||Low||Middle|
|Loss of tenants due to a delay in taking green building measures||Short, medium, and long||High||Low|
|Withdrawal of investors due to a delay in taking green building measures||Medium to long||High||Low|
|Physical risks||Increase in energy consumption attributed to chronic temperature increase||Medium to long||Middle||Middle|
|Increase in repair costs associated with water damage risk||Short, medium, and long||High||High|
|Opportunities||Increase in rents for green buildings||Medium to long||High||Low|
|Cost reduction effect of energy conservation and use of renewable energy||Medium to long||Low||Low|
(2) Implementation of scenario analysis
We have analyzed the following scenarios.
ⅰ. 1.5/2 °C scenario (significant impact from regulations)
A scenario in which laws and regulations are tightened to control climate change
ⅱ. 4°C scenario (great impact of climate change)
A scenario in which natural disasters grow serious because of delays in addressing climate change
(3) JPR's strategies and targets
TRIM addresses climate change risks by classifying them into transition risks and physical risks and captures newly created opportunities in managing real estate investment.
|Financial impact||Carbon tax imposed under tightened environmental laws and regulations leads to an increase in the risks surrounding the operations of owned properties.|
|Financial impact||A delay in taking green building measures results in a failure to cater to the needs of companies aiming to achieve carbon neutrality. This leads to a loss of tenants and a loss of fixed-amount income, such as rents and CAM charges.|
|Financial impact||A delay in taking green building measures leads to financial institutions' withdrawal from loans and investments, resulting in increased funding costs.|
|Financial impact||If the risk of water damage due to climate change, such as that caused by typhoons or flooding, increases owned properties may incur water damage, resulting in the generation of repair costs.|
|Financial impact||Tenants are increasingly demanding properties with high environmental performance due to tougher laws and regulations, resulting in an increase of asset value and real estate rental revenues.|
(4) Low carbon transition plan
JPR has set a target of reducing CO2 emissions by 30% by 2030 (in terms of emission intensity; compared to the 2017 level). The following initiatives are being advanced to achieve this target.
Measures for attainment of goal
JPR and TRIM work on environmental and energy-saving measures such as replacing equipment with items with higher energy efficiency and improving management methods, and they promote the reduction of CO2 emissions by measuring the value of greenhouse gas emissions.
Switch of energy suppliers
- Review of power comapanies
JPR monitors current CO2 emission factors on a regular basis and is working to reduce CO2 emissions by reviewing power supply contracts. We not only make judgments based on CO2 emission factors but also check the evidence, the mix of energy sources and ways to offset our carbon footprint.
- Introducing renewable energy sources
Renewable energy is defined as energy that is produced by natural resources and does not produce greenhouse gases. Examples include solar energy, wind energy, geothermal energy, small and medium hydropower, and biomass. JPR considers introducing 100% renewable energy contracts whilst curbing increases in energy costs.
Initiatives for improvement of repairing equipment
- Upgrading to highly energy-efficient equipment
Power consumed by air-conditioning equipment represents a significant percentage of the power consumed by all buildings, with power demand increasing sharply during the hot summer months in particular. JPR carries out planned upgrades of air-conditioning equipment in order to improve cost efficiency and comfort while reducing CO2 emissions.
- Upgrading to LED lighting
JPR is reducing power consumption by steadily introducing LEDs in common-area lighting and emergency exit lighting.
- Upgrading to lighting fixtures with motion detectors
Motion detectors respond to the movement of people and changes in brightness to provide illumination only when needed; as a result, lights do not remain on because people forget to turn them off, which reduces power consumption. JPR is working to reduce power consumption by installing motion detectors in bathrooms, staff kitchens, and stairways when carrying out common-area renovations so that lights will be turned off when these areas are not in use.
Initiatives for improvement of operations
At the facilities JPR operates, steps are also being taken to carefully coordinate equipment operation and control operation according to the season in order to reduce power consumption in common areas.
|Lighting||Dimming lighting when rooms are vacant||Creating standards for turning lighting on and off and promoting turning lights off when rooms are vacant|
|Floor management of common-area lighting||Managing common areas according to use by tenants|
|Air-conditioning equipment||Changing air-conditioning temperature to recommended values||Recommending that tenants adopt appropriate temperature settings for air-conditioning|
|Turning off air-conditioning power in empty rooms||Turning off air-conditioning equipment power in empty areas to stop consumption of standby power|
|Prohibiting entry of outside air during pre-warming/ pre-cooling||Restricting the entry of outside air during pre-warming/pre-cooling in order to reduce air-conditioning loads|
|Other equipment||Changing contract demand||Reviewing method of operating control equipment for the purpose of reducing contract demand and turning off equipment that is always on standby where appropriate|
|Improving power factor using condensers||Improving power factor through careful control of condensers and reducing electrical circuit and transformer energy loss|
|Seasonal adjustment of heated toilet seat temperatures||Managing toilet seat heating and washing water temperatures by adjusting the settings according to the season|
|Seasonal management of times when outdoor lights are turned on||Automatically turning off exterior lights and managing the times when they are lit according to the season|
Improving building resilience
TRIM conducts onsite inspections of all portfolio properties (except land with leasehold interest) at least once a year, in principle, to assess whether they are equipped to withstand disaster (including typhoon, heavy rain, flood, and earthquake), checking for any new risks and seeking to mitigate the risk of damage, loss or degradation of the properties.
TRIM also increases resilience through the prediction of disasters, regularly checking hazard map updates and monitoring the areas in which portfolio properties are located.
Managing tenants in a crisis
TRIM regularly conducts disaster drills at every portfolio property to ensure that building tenants are able to take steps to rapidly ensure the safety of their workforce and prevent escalation of the disaster.
Examining renewable energy adoption
Renewable energy sources such as solar and wind are promising forms of energy which do not produce greenhouse gases and will not be affected by regulatory risks in the future, and the generation costs of renewables have fallen sharply around the world. JPR and TRIM use renewable forms of energy at portfolio properties based on verification of economic efficiency, stability and safety and on the individual characteristics of each property.
Monitoring of environment-related data
In addition to pursuing environmental and energy-saving measures, JPR periodically measures greenhouse gas emissions and strives to reduce the amount of CO2 emitted at its properties.
|Category/Unit||FY 2017||FY 2018||FY 2019||FY 2020|
|Electricity Use||Total (MWh)||95,436||93,444||91,730||89,156|
|Gas Use||Total (MWh)||17,908||17,992||17,008||16,352|
|Heat Consumption||Total (MWh)||11,999||12,217||11,682||14,038|
|Energy consumption||Total (MWh)||125,344||123,653||120,421||119,546|
|Category/Unit||FY 2017||FY 2018||FY 2019|
- The data shown in the table is based on the data that is available to JPR.
- The energy consumption and scope 1 emissions data does not include relevant data derived from emergency generator fuel.
- Energy consumption, water use and GHG emissions data is also broken down into office property and retail property categories for further verification. The intensity is presented based on the calculation of (Total amount of electric power or CO2)/(Total floor area of equities (m2) x (Average occupancy rate per year (%))
Conservation of water resources
JPR switches to apparatuses with greater water-saving effects with the renewal of toilets and kitchenettes. In addition, JPR works to reduce consumption by managing and measuring it appropriately in cooperation with tenants.
In some of the properties it holds, JPR has installed water recycling facilities for rainwater and recycles water to reduce water consumption.
|Category/Unit||FY 2017||FY 2018||FY 2019||FY 2020|
|Category/Unit||FY 2017||FY 2018||FY 2019|
Reduction of waste and management of hazardous substances
Reduction of the amount of waste produced
By sorting industrial waste and enhancing recycling efforts, JPR is actively working to reduce the amount of waste produced. With the support of tenants and cleaning companies, the following waste-reducing initiatives have been implemented:
- Expanding the scope of recycling
- Recycling used fluorescent light tubes and batteries
- More thorough sorting rules
- Enhancing recycling and educational activities
Waste and Recycling Rate
|Category||FY 2017||FY 2018||FY 2019|
|Annual waste amount (t)||5,137||4,950||4,813|
- This graph aggregates data for properties owned by JPR, excluding properties where tenants dispose of waste themselves.
- The waste amount and recycling rate data is data for FY2017 (from April 1, 2017 to March 31, 2018), FY2018 (from April 1, 2018 to March 31, 2019) and FY2019 (from April 1, 2019 to March 31, 2020).
- Three small buildings are not included in the totals because they do not engage in activities such as gathering waste data.
Management of hazardous substances
Treatment of asbestos
- With the Ordinance on Prevention of Health Impairment due to Asbestos (the Ministry of Health, Labour and Welfare) coming into effect in July 2005, employers have been obliged to take measures such as the removal, containment and enclosure of sprayed asbestos if it could disperse in a building where their employees work.
- JPR had carried out the removal of sprayed materials such as asbestos at the time of facility renovations, before the Ordinance came into effect, and all the necessary measures such as removal, containment and enclosure have been completed in locations with a high frequency of use, such as offices and corridors.
- In properties that contain asbestos and other sprayed materials, JPR inspects and verifies that the asbestos is below the standard value by measuring the status of the asbestos on an ongoing basis when JPR measures the air environment based on the Act on Maintenance of Sanitation in Buildings.
- When acquiring a property, JPR has experts conduct an investigation upon concluding a sales contract to ensure that environmental pollutants such as asbestos are managed appropriately.
Treatment of PCB
If PCB is contained in a property owned by JPR, JPR treats the PCB according to related laws and regulations after removing the electrical equipment that contains PCB. During the period until the treatment, JPR stores and manages the electrical equipment appropriately based on the PCB storage and management standards of the environment bureau of each prefecture.
Promoting renewable energy
Tokyo Square Garden and Olinas Tower, which are owned by JPR, use renewable energy through the introduction of solar power generation equipment. The amount of power generated is as follows.
|Portfolio (Unit)||FY 2017||FY 2018||FY 2019||FY 2020|
|Olinas Tower (KWh)||5,400||5,412||5,388||4,708|
|Tokyo Square Garden (KWh)||4,551||4,578||3,655||3,304|
- The amount of power generated is a value for interests owned by JPR.
Promotion of wall greening and rooftop greening
As a part of JPR's brand strategy, JPR greens the walls and rooftops of properties using environmentally accepted plants. This helps create a natural environment in cities and promotes the inhabitation of diverse organisms. The wall and rooftop greening also has the effect of reducing the electricity consumption of air-conditioning through thermal insulation and the effect of reducing the thermal load inside buildings.
Cooperation with tenants
Promotion of a green lease contract
A green lease contract makes arrangements to reduce environmental loads such as through energy savings and improving the work environment, with the building owner and the tenants working together. In lease contracts of JPR, a green lease clause is standardized to promote the reduction of environmental loads in cooperation with the tenants.
Example of conclusion of green lease agreement (Niigata Ekinan Center Bldg.)
JPR's tenants include corporations and organizations with strong environmental awareness and JPR is pushing for the conclusion of green lease agreements which create a win-win situation for both parties. JPR concluded a green lease agreement for Niigata Ekinan Center Bldg.
The main points are as follows:
- Reduction of CO2 emissions and costs through switch to LED
- Improvement of property quality through mitigation of environmental impact
Improvement in effectiveness in cooperation with property managers
To promote initiatives to reduce environmental loads, cooperation with the property managers (PMs), who manage and operate properties on site, is essential. JPR and TRIM regularly share information with the PMs and discuss initiatives on energy-saving and environmental issues.
JPR and TRIM also hold workshops for the PMs and others to raise their awareness of sustainability and enhance their readiness.
Consideration for the environment in real estate investment
Mitigation of environmental risks as part of due diligence in acquisitions
When acquiring a new property, JPR and TRIM always check the environmental and social risks such as soil contamination by using outside experts in addition to site visits and investigations before concluding a sales contract, to avoid the risks.
Urban Revitalization and Redevelopment
Tokyo Tatemono, JPR's main sponsor, harnesses natural energy and actively uses advanced energy-saving technologies in its developments. JPR works with the Tokyo Tatemono Group to promote sustainable urban development.
JPR does not invest in new development projects but considers the environment, fully complying with environmental laws and regulations to address issues such as soil contamination based on the Tokyo Tatemono Group Environmental Policy.
To implement green finance, JPR has formulated the Green Finance Framework in accordance with the Green Bond Principles 2018 and the Green Bond Guidelines 2017 Edition.
Framework of Green Finance
Use of proceeds from Green Finance
Proceeds from Green Finance will be allocated as follows.
- To fund purchases of existing or new assets classed as Eligible Green Assets (explained later)
- To fund the repayment of loans needed to purchase Eligible Green Assets
- To fund the redemption of investment corporation bonds needed to purchase Eligible Green Assets
Eligible Green Assets
Eligible Green Assets will be selected from among assets that have received or will receive certification under either of the following standards.
- DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
- CASBEE: B+ Rank, A Rank or S Rank
Management of proceeds
Eligible green liabilities will be calculated by multiplying the total acquisition price of Eligible Green Assets in the portfolio by the ratio of interest-bearing liabilities to total assets (LTV) and this amount will be set as the maximum amount of Green Finance.
Status of Finance
Outstanding Balance of Green Bonds Issued
As of December 31, 2020 11,000 million yen
|Issue Amount (million yen)||5,000|
|Issue Date||July 31, 2019|
|Maturity Date||July 31, 2029|
|Use of proceeds||･ The acquisition on May 31, 2010 JPR Sendagaya Bldg. (2 billion yen)
･ The acquisition on August 8, 2012 Yakuin Business Garden (3 billion yen)
|Issue Amount (million yen)||6,000|
|Issue Date||November 26, 2020|
|Maturity Date||November 26, 2030|
|Use of proceeds||･ The acquisition on May 31, 2010 JPR Sendagaya Bldg. (6 billion yen)|
Eligible Assets (as of the end of December 2020)
|DBJ Green Building Certification||CASBEE|
|Tokyo Square Garden||18,400||★★★★★||ー|
|Shinjuku Center Bldg.||21,000||★★★★||ー|
|JPR Sendagaya Bldg.||15,050||★★★★||ー|
|Oval Court Ohsaki Mark West||3,500||★★★★||ー|
|Omiya Prime East||6,090||★★★||ー|
|Rise Arena Bldg.||5,831||★★★||ー|
|Yume-ooka Office Tower||6,510||★★★||ー|
|BYGS Shinjuku Bldg.||15,121||★★★||ー|
|Shinagawa Canal Bldg.||2,041||★★★||ー|
|Kawasaki Dice Bldg.||15,080||★★★||ー|
|JPR Kojimachi Bldg.||5,750||ー||
|JPR Musashikosugi Bldg.||7,260||ー||S|
|Musashiurawa Shopping Square||4,335||ー||S|
|Sompo Japan Sendai Bldg.||3,150||ー||S|
|JPR Umeda Loft Bldg.||13,000||ー||S|
|Housing Design Center Kobe||7,220||ー||S|
|JPR Nihonbashi-horidome Building||5,100||ー||A|
|JPR Shibuya Tower Records Bldg.||12,000||ー||A|
|JPR Chiba Bldg.||2,350||ー||A|
|JPR Yokohama Nihon Odori Bldg.||2,927||ー||A|
|Kawaguchi Center Bldg.||8,100||ー||A|
|JPR Ueno East Bldg.||3,250||ー||A|
|JPR Nagoya Fushimi Bldg.||4,137||ー||A|
|Yakuin Business Garden||10,996||ー||A|
|JPR Yokohama Bldg.||7,000||ー||B|
|Number of Eligible Green Assets (properties)||28|
|Total Acquisition Price of Eligible Green Assets (JPY million)||256,574|
|Eligible Green Asset liabilities (JPY million)||88,172|
|Total amount of floor area of Eligible Assets (㎡)||453,472|
|Total Energy Consumption of Eligible Assets (2020, MWh)||73,417|
|Total CO2 Emissions of Eligible Assets (2020, t)||28,320|
|Total Water consumption of Eligible Assets (2020, ㎥)||283,517|
- The Number of Eligible Assets and LTV are as of December 31, 2020.
JPR will announce the following indicators as of December 31 each year for as long as the Sustainability Finances are outstanding.
a) Status of allocation of proceeds
b) Number of properties classed as Eligible Assets
c) The levels of third-party certifications acquired by each Eligible Green Asset
d) The total amount of floor area of Eligible Assets
e) Energy consumption*
f) CO2 emissions*
g) Water consumption*
h) Improvement effects with repairs and maintenance
* For the indicators e-g, JPR will announce annual aggregate figures for the Eligible Green Assets. In the case of certain properties, JPR will disclose information to the extent that JPR has energy control authority.
JPR obtained Green 1 (F) rating, the highest possible, in a "Green Finance Framework Evaluation" by Japan Credit Rating Agency, Ltd. (JCR), which is a third-party evaluation organization, regarding the eligibility of its Green Finance Framework.
Please click on the link below for further details. https://www.jcr.co.jp/en
Status of Acquisition of Environmental Certification
|Item||Dec. 2018||Jun. 2019||Dec. 2019||Jun. 2020||Dec. 2020||Jun. 2021|
|Number of properties||17||21||23||26||30||36|
|Total floor area||223,389||352,458||359,132||414,241||453,472||489,927|
|Percentage of properties with environmental certification||34.0%||53.4%||54.4%||60.1%||65.5%||71.4%|
Acquisition of DBJ Green Building Certification
The DBJ Green Building Certification is a certification system to select superior real estate that meets the demand of the times by scoring buildings based on the scoring model originally developed by Development Bank of Japan Inc. Its purpose is to promote properties that are environmentally friendly, equipped to mitigate disaster and prevent crime, as well as meet the social requirements surrounding real estate from various stakeholders (“Green Buildings”). The results are evaluated in five ranks.
The website of DBJ Green Building Certification: http://igb.jp/en/index.html
|Property||Certification Level||Acquisition Date|
|Tokyo Square Garden||★★★★★||Jul. 2017|
|Olinas Tower||★★★★★||Dec. 2018|
|JPR Sendagaya Bldg.||★★★★||Dec. 2018|
|Oval Court Ohsaki Mark West||★★★★||Dec. 2018|
|Shinjuku Center Bldg.||★★★★||Mar. 2019|
|Omiya Prime East||★★★||Dec. 2018|
|Rise Arena Bldg.||★★★||Dec. 2018|
|Yume-ooka Office Tower||★★★||Dec. 2018|
|Kanematsu Bldg.||★★★||Dec. 2018|
|BYGS Shinjuku Bldg.||★★★||Dec. 2018|
|Shinagawa Canal Bldg.||★★★||Dec. 2018|
|Kawasaki Dice Bldg.||★★★||Jun. 2019|
|JPR Crest Takebashi Bldg.||★★||Dec. 2018|
|Shinjuku Square Tower||★★||Mar. 2019|
Acquisition of CASBEE for Building Certification
CASBEE, which stands for Comprehensive Assessment System for Built Environment Efficiency, is a system for comprehensively assessing the environmental performance of buildings. Efforts to develop and popularize the system in Japan are being made under the leadership of the Ministry of Land, Infrastructure, Transport and Tourism.
This system comprehensively evaluates a quality of buildings, including indoor comfort and consideration for the landscape, on top of the aspect of environmental consideration, such as energy saving and the use of materials and equipment with a lower environmental burden.
For details of the System, please refer to the website of CASBEE
|Property Name||Certification Level||Acquisition Date|
|Musashiurawa Shopping Square||S||Jun. 2019|
|JPR Umeda Loft Bldg.||S||Jun. 2019|
|Housing Design Center Kobe||S||Jun. 2019|
|JPR Kojimachi Bldg.||S||Dec. 2019|
|FUNDES Ueno||S||Dec. 2019|
|JPR Musashikosugi Bldg.||S||Jun. 2020|
|Sompo Japan Sendai Bldg.||S||Jun. 2020|
|JPR Shinsaibashi West||S||Jun. 2021|
|Yakuin Business Garden||A||Jun. 2018|
|JPR Shibuya Tower Records Bldg.||A||Jun. 2019|
|Kawaguchi Center Bldg.||A||Jun. 2020|
|JPR Nihonbashi-horidome Building||A||Dec. 2020|
|JPR Chiba Bldg.||A||Dec. 2020|
|JPR Yokohama Nihon Odori Bldg.||A||Dec. 2020|
|JPR Ueno East Bldg.||A||Dec. 2020|
|JPR Nagoya Fushimi Bldg.||A||Dec. 2020|
|JPR Yokohama Bldg.||B||Dec. 2020|
Acquisition of BELS certification
BELS is an abbreviation for Building-Housing Energy-efficiency Labeling System. It is a performance labeling system created for the purpose that a third-party organization accurately conducts the evaluation and indication of energy efficiency performance of non-residential buildings in accordance with the Assessment Guidelines on Energy Efficiency Performance of Non-residential Buildings (2013) established by the Ministry of Land, Infrastructure, Transport and Tourism.
A third-party organization evaluates energy efficiency performance and other elements based on various scales. Evaluation results are represented by the number of stars (★ to ★★★★★).
Yakuin Business Garden is located in the urban area of Fukuoka City. As the building name indicates, the property has a wide, vacant lot open to the public, where 23 kinds of plants provide a different appearance season by season, including the corridor of zelkova trees that dye the air green. It is a space of greenery full of healing and comfort, where not only the facility users but also many other people feel relaxed. JPR endeavors to promote greenery as an initiative to enhance the asset value as well as to support town creation.
[Won the 10th "Award for Town Creation with Flowers and Greenery" in 2013]