Environmental Initiatives Environmental Initiatives

JRE has set environment-related KPIs including CO2 reduction targets for FY2030.
To reach our FY2030 goals we will carry out various initiatives with the cooperation of internal and external partners.

Environmental Initiatives Environmental Initiatives

Environmental Performance

Based on the Sustainability Policy items “1. Climate change initiative (promoting decarbonization and strengthening resilience)” and
“2. Contribution to resource conservation including water and resource recycling”, JRE has set reduction targets for energy consumption and greenhouse gas emissions in order to improve the environmental performance of its real estate portfolio.
In order to achieve these targets, JRE’s asset management company, Japan Real Estate Asset Management Co., Ltd., implements measures to improve the operational performance of buildings, conduct energy efficiency retrofits, and engage tenant on energy efficiency based on its “Energy Conservation Policy”, which stipulates operational policies for improving energy efficiency of the real estate portfolio, and “GHG Emissions Reduction Policy”, which aims to create a decarbonized society.

CO2 Reduction Targets and KPIs for FY2030

In response to the growing concerns over the risks from climate change, JRE recognizes that reduction of greenhouse gas (GHG) emissions is of critical importance in light of enhancing the sustainability of our future business. We have been working to reduce energy consumption and GHG emissions of its portfolio, and has achieved a lower consumption and emissions than the previous levels. We verified the possibility of reducing CO2 emissions from over 70 of our properties and established reduction targets for FY2030. Going forward, JRE will contribute to a shift to a decarbonized society through the reduction of GHG emissions while securing its preparedness to natural disasters and other phenomena arising from climate change.

■Related information: Climate Change Initiative

Environmental Performance Data

Key Performance Indicator (KPI)

Achieve 80% reduction in CO2 emissions by FY2030 compared with the 2019 level.

Achieve 12kg-CO2/m² or below of CO2 intensity by FY2030.

* Please view the table below while scrolling horizontally.

FY 2019
(Base year)
FY 2020 FY 2021 FY 2022 % change
(vs FY2019)
Total CO2
emissions
Total t-CO2 102,942 93,378 71,019 29,836 -71.02%
  Scope1 (Fuels) t-CO2 3,208 3,304 3,011 2,786 -13.18%
Scope2 (Electricity, District Heating & Cooling) (Market-based method) t-CO2 42,436 39,748 32,350 14,380 -66.11%
Scope1 + Scope2 Subtotal

The target has been approved by SBTi in 2022.

t-CO2 45,645 43,052 35,361 17,166 -62.39%
Scope3 (Fuels, electricity and District Heating & Cooling that occur in tenant controlled areas.)

Category#13:Downstream Leased Assets

t-CO2 57,297 50,326 35,658 12,670 -77.89%
Intensity (Scope1 + Scope2 + Scope3) kg-CO2/m² 77.7 69.1 51.8 22.2 -71.47%
 
Total Total (Scope1 + Scope2 + Scope3) MWh 246,064 231,097 226,719 223,673 -9.10%
Intensity (Scope1 + Scope2 + Scope3) MWh/m² 0.186 0.171 0.165 0.166 -10.51%
  Fuel Use Total (Scope1+Scope3) MWh 22,466 22,874 22,190 19,717 -12.23%
Intensity (Scope1+Scope3) MWh/m² 0.017 0.017 0.016 0.015 -13.60%
Other heat
consumption※1
Total (Scope2+Scope3) MWh 30,436 30,220 29,300 29,660 -2.55%
Intensity (Scope2+Scope3) MWh/m² 0.023 0.022 0.021 0.022 -4.07%
Electricity Use Total (Scope2 + Scope3) MWh 193,162 178,003 175,229 174,296 -9.77%
Intensity (Scope2 + Scope3) MWh/m² 0.146 0.132 0.128 0.130 -11.17%
Intensity (Scope2 MWh 79,728 75,818 73,773 73,903 -7.31%
Intensity (Scope3 MWh 113,434 102,185 101,456 100,393 -11.50%

Amount purchased from a District Heating and Cooling (DHC) system provider

Key Performance Indicator (KPI)

Achieve 90% Renewable Energy (Scope2)Rate by FY2030 / 100% by FY2050

* Please view the table below while scrolling horizontally.

FY 2019 FY 2020 FY 2021 FY 2022
Renewable Energy Rate (Scope2)*2

Joined RE100 in 2022.

% 1.6 2.0 16.4 72.9
<Reference>
Renewable Energy Rate (Scope2 & Scope3)*2
% 1.6 2.3 20.9 73.7

Electricity of each scope is calculated.

Key Performance Indicator (KPI)

Achieve 20% reduction in water use (intensity) by FY2030 compared with the 2019 level.

* Please view the table below while scrolling horizontally.

FY 2019
(Base year)
FY 2020
FY 2021 FY 2022 % change
(vs FY2019)
Water Total 886,256 655,641 645,753 689,740 -22.17%
Intensity m³/m² 0.669 0.485 0.471 0.513 -23.38%
Key Performance Indicator (KPI)

Achieve more than 90% waste recycling rate by FY2030.

* Please view the table below while scrolling horizontally.

FY 2019
(Base year)
FY 2020 FY 2021 FY 2022
Waste Total waste t 8,095 5,850 5,729 5,868
Recycling t 4,540 3,248 3,170 3,229
Recycling rate*3 % 56.1 55.5 55.3 55.0

Recycling / Total waste

* Please view the table below while scrolling horizontally.

FY 2019
(Base year)
FY 2020
FY 2021 FY 2022
Data coverage CO2 emissions and energy amount 100% 100% 100% 100%
Water consumption 100% 100% 100% 100%
Waste generated 100% 100% 100% 100%
  • As we examined the data accuracy, some of the above data may differ from the previously disclosed data.
  • As a general rule, the above data covers all properties held at the end of March of each fiscal year. For detailed calculation criteria, please refer to the “Environmental Performance Data/Supplementary Items”.

Environmental Performance Data / Supplementary Items (254KB)

CO2 Emission Coefficient of Each Power Supplier

  • The above “Environmental Performance Data” was prepared based on the “WEB information” attached below which has been given limited assurance by a third party organization (Ernst & Yong ShinNihon LLC).

WEB information

Independent Assurance Report

Report on Measures against Global Warming

Under this program, businesses that own or utilize medium or small facilities in Tokyo notify the Tokyo Metropolitan Government of CO2 emissions and the state of efforts to combat global warming at each location by filing a Report on Measures against Global Warming. The program’s goal is, through compilation of the report, to keep track of CO2 emissions at each site and ensure that ongoing steps are taken to combat global warming.

The program requires a business to submit and publicly release a report if the total amount of energy used at all medium and small facilities that it operates in Tokyo equals or exceeds 3,000 kl a year in crude oil equivalent.

JRE has submitted its report to the Tokyo Metropolitan Government under the program.
In FY2022, JRE was certified as an excellent business entity in global warming countermeasure (FY2022 SS★ rank) by the Tokyo Metropolitan Government Bureau of Environment.
Tokyo Metropolitan Government under the program (available only in Japanese)

an excellent business entity in global warming countermeasure (FY2022 SS★ rank)  an excellent business entity in global warming countermeasure (FY2022 SS★ rank) 

JRE has also been implementing measures towards the Tokyo Metropolitan Government’s Tokyo Cap-and-Trade Program (mandatory emissions trading scheme).

Tokyo Cap-and-Trade Program

List of JRE Buildings subject to Tokyo Cap & Trade Program

Environmental Management Systems (EMS)

1. Grasping Accurate Data and Executing a PDCA Cycle

JRE measures and gains an understanding of the energy consumption, water use, and waste of each building on a monthly basis. We outsource data calculation and data analysis to a company specializing in EMS to execute its PDCA cycle. If there is a large difference in the aggregated data from the previous month or year, we investigate the cause by conducting interviews with the property manager and ensuring accurate data. We also constantly monitor the reduction effects of green refurbishments such as LED and AC upgrades.
Aggregated data disclosed in “WEB information” has been given limited assurance in accordance with ISAE 3000 (International Standard on Assurance Engagements 3000) by a third party organization (Ernst & Yong ShinNihon LLC).

2. Monthly Data Entry, Analysis, and Feedback

JRE-AM recognizes environmental data aggregated via EMS as important indicator, as well as performance data. Therefore, the data and a analysis of the various indicators are reported to the Chief Sustainability Officer (President & CEO) on a monthly basis. This is not a matter of simply circulating documents. Instead, these indicators are reported and analyzed at meeting and are an important part of decision-making for future asset management and CAPEX investments.

PDCA Cycle for Environmental Data

PDCA Cycle for Environmental Data

Contributions to the Environment through Real Estate Investment Management

Incorporating ESG Criteria for Property Acquisition

JRE has newly added the following factors to the assessment criteria (such as location and building specifications) it applies when acquiring properties.

ESG criteria to be incorporated
  • Green building certifications
  • Environmental performance including CO2 emissions

In establishing the abovementioned framework, JRE has obtained a second-party opinion from CSR Design Green Investment Advisory, Co., Ltd.

Please click here for more information for ESG criteria.

Procedure of Real Estate Investment

Environmental risk assessment at the time of acquisition

When acquiring real estate properties, JRE conducts on-site inspections and also investigates on soil contamination and toxic substances such as asbestos and PCBs by obtaining real estate appraisal reports and engineering reports in addition to receiving related disclosure materials from the sellers.

Environmental considerations in urban redevelopment project

Our sponsor, Mitsubishi Estate Co., Ltd. focuses proactively on environmental creation development through using natural energy and adopting energy-saving technologies. JRE, in cooperation with Mitsubishi Estate group, promotes sustainable urban development. Mitsubishi Estate Co., Ltd. is environmentally conscious, ensuring compliance with soil contamination and other environmental laws and regulations based on the “Mitsubishi Estate Group 2030 Goals for SDGs”.

GRAND FRONT OSAKA

JRE acquired GRAND FRONT OSAKA (North Building) and GRAND FRONT OSAKA (Umekita Plaza and South Building) in October 2021, ensuring that enough countermeasures have been implemented on the brownfield land.

The north district of the Osaka Station in which GRAND FRONT OSAKA is situated is the largest terminal in western Japan where seven stations and 12 railway lines converge. The property is directly connected to JR Osaka Station via a pedestrian deck and enjoys close proximity to Umeda Station on the Hankyu and Hanshin lines as well as various subway lines, making transportation extremely convenient.

GRAND FRONT OSAKA

In terms of the environment, the property has a high standard of safety due to its excellent earthquake resistance from adoption of the latest damping structure. The property also forms a network of water and greenery in unison with the several blocks with greening, water features, etc. on rooftops and on the ground, realizing a harmonious environment as a whole.
Moreover, the property employed highly effective low‐CO2 technologies such as natural ventilation, high‐efficiency heat source systems, and solar power generators as well as establishing a network of Building Energy Management Systems (BEMS) of each of its buildings which centralizes control of energy consumption as an entire property. As initiatives for the entire development area, an organization called Town Management Organization (TMO) is set up and it develops city‐wide CO2 reduction management in a bid to realize a low‐carbon society. As such, the property has been selected by the Ministry of Land, Infrastructure, Transport and Tourism as “Leading Low‐CO2 Model Business for Residences and Buildings”, serving as an “environmental showcase leading the realization of a sustainable society.”

GRAND FRONT OSAKA

Consideration to urban greenery and biodiversity

JRE’s sustainability policy stipulates that it will contribute to conserving biodiversity and ecosystem. JRE gives consideration to biodiversity in the operation of buildings by endeavoring to conserve and improve the ecosystem on property premises and adjacent urban green areas and natural areas.

Note that while JRE does not invest in new development projects, the sponsor Mitsubishi Estate Co., Ltd. pursues sustainable land use using certification systems such as Association for Business Innovation in Harmony with Nature and Community (ABINC) certification and SITES certification at the time of development.
For details on the efforts of Mitsubishi Estate Co., Ltd., please refer to the website.

Otemachi Park Building Biodiversity Preservation Initiatives

At Otemachi Park Building, located in the vicinity of the Imperial Palace, we have taken biodiversity into consideration, creating homes for a variety of flora and fauna by including a variety of trees and bushes, birdhouses, porous stone walls and waterscapes into the design. Under the leadership of our sponsor, Mitsubishi Estate Co., Ltd., we conduct monitoring of the living creatures in the area both as part of our cleaning and plant maintenance duties, and as an activity that the community can participate in as efforts to visualize the biodiversity network centered on the Imperial Palace and to collect and disseminate information aimed at high-quality green space management and greater environmental awareness.

In recognition of the efforts to conserve biodiversity in these spaces, the building has been certified by the Organization for Landscape and Urban Green Infrastructure under the Social and Environmental Green Evaluation System (SEGES) for creating green spaces, issued. Furthermore, it has acquired ABINC certification in the urban/SC category, issued by the Association for Business Innovation in Harmony with Nature and Community (ABINC).

In fiscal 2023, Otemachi Park Building’s Hotoria Plaza was certified as an Other Effective area-based Conservation Measures (OECM) site.
For details, please refer to the link. (available only in Japanese)

Hotoria Square

Hotoria Square

Waterscape that serves as home to various creatures

Waterscape that serves as home to various creatures

Investment in retrofit that contributes to resource productivity, higher efficiency, and lower environmental impact

JRE steadily implements the renewal plans made for the facilities in our properties in order to reduce the environmental impact of the buildings.

* Please view the table below while scrolling horizontally.

Work details Targeted building Period Energy use reduction effect CO2 emissions reduction effect Remarks
Upgrading to
LED lighting
NHK Hiroshima
Broadcasting
Center Building
2016 - 2017 ▲189.9MWh / year ▲32% ▲136.5 tCO2 / year Estimation based
on the specifications
Upgrading to
LED lighting
Kanazawa Park
Building
2017 - 2019 ▲969.8 MWh / year ▲28% ▲587.4 tCO2 / year Estimation based
on the specifications
Upgrading the
air-conditioning system
JRE Nishi-Shinjuku Terrace 2016 - 2018 ▲173.8 MWh / year ▲22% ▲63.7 tCO2 / year Estimation based
on the specifications

Investment in retrofit that contributes to resource productivity, higher efficiency, and lower environmental impact

Investment in retrofit that contributes to resource productivity, higher efficiency, and lower environmental impact

Photo: Refurbishments of JRE Shiba 2Chome Daimon Building

Proactive Introduction of Renewable Energy

Accelerated Use of Electricity Made from Renewable Energy (RE100 Compatible)

JRE accelerates the use of electricity made from renewable energy recognized by RE100* ("renewable electricity"). As of September 2022, JRE had completed the switch to renewable electricity at its properties of 100% operational control. JRE proactively introduces renewable electricity into the buildings other than 100% operational control and further accelerates the reduction of CO2 emissions.

RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.

Accelerated Use of Electricity Made from Renewable Energy (RE100 Compatible) Accelerated Use of Electricity Made from Renewable Energy (RE100 Compatible)

JRE’s Switch to Renewable Electricity (Outline)

JRE’s Switch to Renewable Electricity (Outline)

Utilization of Onsite Renewable Energy

JRE promotes the reduction of CO2 through the utilization of renewable energy in solar generation at some of the office buildings owned by JRE such as Otemachi Park Building, the ARGYLE aoyama, Shinjuku Front Tower, Toyosu Foresia, Toyosu Front, GRAND FRONT OSAKA (North Building) and GRAND FRONT OSAKA (Umekita Plaza and South Building).

Otemachi Park Building

Otemachi Park Building

Otemachi Park Building

Reuse and Recycle of Water

Some of the buildings owned by JRE are equipped with facilities for reusing rainwater and greywater, as JRE endeavors to reduce the consumption of tap water.

Environmental contribution in collaboration with tenants

Aiming to make environmental contributions by collaborating with tenants, JRE has been gradually introducing Green Leases in terms of both operational improvement and efficiency retrofits.
Moreover, JRE is conducting diverse sustainability initiatives together with our tenants.

Examples
  • Distribution of sustainability guide
    For details on sustainability guide, please click here.
  • Holding Global Warming Prevention Committee with tenants
  • Introduction of an online system that enables tenants to check their energy use
  • Participation in the energy conservation month campaign and energy efficiency promotion on other occasions

Collaboration with Suppliers

Green Procurement Policy

JRE-AM which is JRE’s asset management company, has set the Green Procurement Policy as one of the policies to implement the specific items upheld in the Sustainability Policy. The Green Procurement Policy provides guidelines on the selection of products to be procured by JRE-AM as well as on the selection and evaluation of suppliers. JRE-AM has been promoting sustainability measures across its supply chain based on this Policy.

PM company selection criteria and evaluation measures

JRE has established selection criteria for property management (PM) companies to which it commissions the management of properties, and evaluates all of the PM companies once a year, in principle. In addition to the companies’ building management and maintenance abilities, JRE evaluates the PM companies by their environmental friendliness in terms of operations, occupational health and safety measures for their employees, and understanding of and cooperation with the Sustainability Policy set by JRE-AM. Moreover, JRE requests the PM companies to make proposals to help JRE reduce environmental impacts, such as energy efficiency measures in buildings. In this way, JRE makes environmental improvement efforts in cooperation with the PM companies.

Other measures

JRE makes contracts with professional firms to conduct energy assessment of a selection of our properties, and utilizes the results to understand the current level of their energy performance and to formulate improvement plans for the future.