Environment

The Tokyo Tatemono Group aims to contribute to the development of a sustainable society through environmentally friendly business activities in accordance with its Group Environmental Policy. We have identified promoting a decarbonized society and promoting a recycling-oriented society as material environmental issues for the Group. To address these issues through our business operations, we will aim to realize coexistence with the earth and the environment, a shared value with society.

Global efforts toward decarbonization are accelerating, as shown by the Paris Agreement adopted by the United Nations in 2015 and the Glasgow Accord adopted at COP26 in 2021, which calls for efforts to limit the temperature increase to 1.5°C. In 2021, the Japanese government also declared its aim to achieve carbon neutrality by 2050.

Realizing a decarbonized society is an issue that calls for global solutions. The real estate industry must also strive to reduce greenhouse gas (GHG) emissions deriving from real estate holdings and business activities. The Tokyo Tatemono Group further believes that the intensification of wind, flooding, and other natural disasters owing to GHG emissions could have a significant impact on the assets it owns. From this perspective as well, we recognize the need to prioritize this issue.

The Tokyo Tatemono Group Environmental Policy calls for us to lead the community in the prevention of global warming. In addition, we have identified promoting a decarbonized society as a material issue for the Group, and are addressing this issue through our business we set medium-and long-term target for reduction in GHG emissions, aiming to achieve net-zero CO2 emissions by fiscal 2050.
In addition, we have set the shift to renewable energy, promotion of development of ZEB and ZEH, and acquisition of green building certification as process targets.

Since setting each target, the Group has promoted and accelerated its efforts to reduce GHG emissions. As a result, in February 2023, we decided to strengthen our process targets and bring forward the timing for achieving certain targets, which we announced publicly. In addition, based on these revised targets, we put in place a roadmap (action plan) for reducing GHG emissions in the Group toward FY2050.

The roadmap is designed to achieve both sustainable growth of the Group and the promotion of a decarbonized society.
At the same time, in response to climate change risks, we are developing resilient real estate (resistant to wind, flooding,and other natural disasters).

Chaired by the President, the Group's Sustainability Committee, deliberates, discusses, and reports on important matters such as the identifying climate change risks and opportunities, GHG emission reduction targets and policies, and the status of our efforts to address these issues. Important matters discussed by the Committee are submitted to the Board of Directors or reported to the Board of Directors, which has oversight over the Committee. In addition, the Sustainability Promotion Council, a subordinate body of the Committee that is composed of corporate and business divisions, discusses matters to be brought before the Committee, considering specific measures for achieving the goals that have been set through discussions at the Committee.

Recognizing the importance of reducing GHG emissions to minimize the risk of climate change, the Tokyo Tatemono Group has included medium- and long-term targets for reducing GHG emissions in our KPIs and targets. We conduct quantitative monitoring of GHG emissions and announce the results of this monitoring.

In addition, we have set a short-term target of reducing our energy consumption per unit of production by 1% each year on a five-year moving average basis. As medium- to long-term goals for GHG emissions reduction, we have set the following targets: a 40% reduction of CO2 emissions by FY2030 compared to FY2019; and net zero CO2 emissions by FY2050.

We have also established process targets for introducing renewable energy, promoting ZEB/ZEH development, and acquiring Green Building Certification. Going forward, we will continue to work to further conserve energy and reduce our environmental impact.

The Tokyo Tatemono Group recognizes that, to meet the expectations and demands of our tenants, investors, and other stakeholders, it is essential both to develop and operate real estate with high environmental and social awareness and to make open disclosure of our performance and initiatives related to such real estate.

We have identified promoting a decarbonized society as a material issue for the Group. To address this issue through our business operations, we have established a KPI and target of, in principle, acquiring green building certification* for all newly constructed office buildings, logistics properties, and for-rent condominiums. We also have a policy of acquiring environmental certification as far as possible for existing office buildings and for-rent condominiums.

As water shortages become even more severe worldwide, developed nations and the rest of the world face demands to continuously improve the efficiency of water consumption. The Tokyo Tatemono Group Environmental Policy includes a call for resource-saving activities that are kind to the earth. We have identified promoting a recycling-oriented society as a material issue for the Group. To address this issue through our business operations, we have established KPIs and targets related to water resources. With regard to reducing water consumption, we aim for a year-on-year water consumption unit load reduction of long-term buildings*. To promote the use of recycled water, we aim to equip, in principle, all new office buildings that have a total floor area of over 30,000m² with gray water treatment facilities by fiscal 2030.

We have set a management plan for water use that applies in principle to all properties we own in commercial properties business, which account for 87.4% of our total leasable space. The amount of water used is monitored monthly for each property. If there is a large increase or decrease compared to the amount used in the same month of the previous year, we check the reason for the increase or decrease. This helps to ensure appropriate water use in the future.

As a developer, Tokyo Tatemono recognize that water resources are an essential element for the continued creation of rich and comfortable spaces. We will strive to reduce the use of resources and lessen environmental impact through all available opportunities including conserving the use of water and recycling rainwater and miscellaneous wastewater.

Pollution of the air, soil, and water caused by waste and hazardous substances and the depletion of natural resources are issues shared by all of society. Businesses have an obligation to reduce the waste and hazardous substances generated by their activities and use natural resources effectively.

The Tokyo Tatemono Group Environmental Policy includes a call for resource-saving activities that are kind to the earth. We have also identified promoting a recycling-oriented society as a material issue for the Group. To address this issue through our business operations, we have set KPIs and targets relating to waste emissions from our long-term buildings.* We have set targets for fiscal 2030 of reducing waste emissions by 20% compared to fiscal 2019, and achieving a waste recycling rate of 90%. We are carrying out measures aimed at achieving these targets.

The Group recognizes that we must work to prevent pollution of the air, soil, and water and to use natural resources effectively. We strive to achieve this throughout the entire life cycle of each building, from planning and design to construction, operation and management, as well as demolition. Through these efforts, we are working to reduce our environmental impact.
In the development of buildings, we carry out our planning and design and formulation of construction plans in a way that considers environmental and life-cycle assessments. In operation and management, we strive to reduce waste while curbing and properly managing hazardous substances. In this way, at each of the stages of operation, management, and demolition, we work to prevent air, soil, and water pollution and to use natural resources effectively.

Real estate development is intrinsically interlinked with local ecosystems and natural environments. We must grasp and reflect upon how we impact our surroundings, both directly and indirectly.

Tokyo Tatemono Group is working toward a vision of creating a pleasant city and living with greenery, a commitment that is included in our Group Environmental Policy. We are striving to create a rich and comfortable environment that takes biodiversity into consideration, such as by maximizing the power of greenery, and transplanting trees on our properties in line with the development plan, and by surveying local vegetation and the distribution of organisms, and selecting tree species to plant.

We have put in place environmental guidelines for all properties we develop and operate in the Commercial Properties Business, and for all properties we develop under our own brand name "Brillia" in the Residential Business. Both sets of guidelines establish policies for greening buildings and sites, using greening to mitigate the heat island effect, preserving biodiversity and ecosystems including links to the surrounding greenery, and using greenery for communication with tenants and residents as well as the surrounding area. Both sets of guidelines also put in place policies of obtaining third-party certifications such as ABINC certification and SEGES for properties where it is possible to implement initiatives of a certain scale.
For initiatives of a certain scale in the Commercial Properties Business, our policy is to undergo assessment by impartial third parties. The organizations that assess our initiatives include ABINC, a third-party certification system for biodiversity conservation, and SEGES, a third-party certification system for green space creation.

Sustainability finance refers to bonds and loans to raise funds specifically for the purpose of promoting sustainability by addressing environmental issues such as climate change or social issues such as poverty, health, and economic disparity.

The Tokyo Tatemono Group promotes urban development that contributes to solving social issues. We strive to improve the attractiveness of the areas in which we develop and to increase the value of our entire portfolio of owned office buildings. We aim to channel these efforts toward our sustainable growth as a company.

In this era of dramatic change and increasing uncertainty, we will accelerate the cycle of allocating the funds we raise to projects that help bring about a sustainable society. We will help promote decarbonized, sustainable society by balancing, at a high level across our operations, the need to address social issues with the need for business growth.

Tokyo Tatemono has put in place several finance frameworks to guide its financing. These frameworks apply the four requirements defined in the Green Bond Principles, Social Bond Principles, Green Loan Principles, and Social Loan Principles referred to by the International Capital Markets Association: Use of Proceeds; Process for Project Evaluation and Selection; Management of Proceeds; and Reporting.

Natural disasters such as major earthquakes and typhoons threaten our way of life. Climate change has resulted in frequent destructive typhoons and extreme weather in recent years. As a result, interest is rising faster than ever in the safety of real estate, which is a foundation of our lives.

As a real estate services provider, the Tokyo Tatemono Group believes that improving resilience against disasters in ordinary times and providing safety and comfort to our customers and other stakeholders are important responsibilities.

We have identified contributing to a safe and secure society as a material issue for the Group. To address this issue through our business operations, we will continue to further strengthen our measures against natural disasters.