The matters resolved by and reported to the Sustainability Committee chaired by the Chief Sustainability Officer (CSO) are overseen and supervised by being reported as needed to the Board of Directors, which meets at least once every three months and is chaired by the President of the asset manager, as well as the Board of Directors of each investment corporation, which meets at least twice a month in principle.
The Sustainability Committee, which held once a quarter in principle, identifies material risks and opportunities related to sustainability including climate change and natural capital, and plays a central role in sustainability activities by resolving policies, strategies, systems, and sustainability goals and monitoring performance.
For details, please refer to “Sustainability Promotion Structure”.
Dependencies and impacts as well as risks and opportunities on climate change and natural capital are sorted out in consideration of the Company’s business activities and then reviewed for each investment corporation, led by the sustainability staff of each division. Dependencies and impacts as well as identified risks and opportunities, along with their degree of impact, are reported to, and discussed and confirmed by the Sustainability Committee.
The asset manager led by the person in charge of sustainability issues, holds meetings (hereinafter referred to as "subcommittees") as necessary to discuss and examine in detail sustainability-related issues and promotion methods at the working level, either within the division or in cooperation with other divisions. Through the subcommittees, individual issues are discussed, and information is shared to raise awareness and understanding of the issues among those in charge, and to integrate sustainability considerations into the daily investment and management process.
Matters discussed and considered by the subcommittees are reported to the Sustainability Committee by each division, and the Sustainability Committee monitors that progress.
Moreover, each investment corporation collects and monitors monthly environmental data for properties. To work on initiatives for environmental matters, including metrics and targets and efforts to address climate change, and collect environmental data, we have established an environmental management system and strive to continually strengthen and improve our initiatives by implementing a PDCA cycle.
The asset manager operates the Risk Management Committee, in which senior management personnel serve as members. The Committee grasps and investigates matters related to major risks and formulates countermeasures and management policies. It checks the risks and opportunities affecting business operations, including climate change, at each division once every three months using a Risk Control Matrix (RCM), and reports to the committee for evaluation and management.
We recognize the critical importance of what ecosystems can provide and are committed to protecting ecosystems and mitigating any potential impacts on biodiversity.
The Company recognizes that human life and economic activities are based on natural capital, including biodiversity. The Company will continue to examine the relationship between its business activities and natural capital with reference to the TNFD recommendations.
The TNFD recommendations favor the LEAP approach as a means of identifying and assessing the relationship between business activities and nature. This process was used to analyze the dependencies and impacts of the Company on nature and to select potential priori ty locations.
The TNFD recommendations encourage the use of the ENCORE tool to identify dependencies and impacts on natural capital in the sectors in which a company operates. Referring to real estate management as the sector in which it has direct operations, the Company considered its dependencies and impacts on natural capital that ought to be considered. In its considerations, the Company took account of the status of the relevant actions taken in each fund, in reference to the real estate management sector. After that, it identified dependencies and impacts.
In its current review, although the Company has analyzed high dependency items as not applicable, it believes that land use in its real estate operations has the potential to have a high impact on species, water, and habitat through the impact factors of use of terrestrial ecosystems and GHG emissions. The Company anticipates that these impacts pose a risk of land use change due to climate change, such as the occurrence of fires and floods.
At the start of analysis, ecological information was organized for four areas, taking into account the asset holdings of each fund. Based on this assessment, potential priority locations have been selected. In the assessment process, reference is made to external data on interface with nature to identify sensitive locations as potential locations. While each of these areas meets at least one of the criteria for a sensitive location and thus could be a potential location, given the asset status of each fund, the Company will continue to consider priority locations.
This table can be scrolled sideways.
| Fund | Area | Number of properties | Segment |
|---|---|---|---|
| JMF | Omotesando | 13 properties | Urban retail / Mixed-use |
| Narashino | 2 properties | Urban retail / Mixed-use | |
| Fujisawa – Sagami River | 13 properties | Residence | |
| Osaka | 1 property | Urban retail / Mixed-use / Office / Residence | |
| IIF | Narashino | 4 properties | Logistics facilities / Manufacturing and R&D facilities, etc. |
| Fujisawa - Sagami River | 4 properties | Logistics facilities / Manufacturing and R&D facilities, etc. | |
| Osaka | 4 properties | Logistics facilities |
The Company recognizes the critical importance of what ecosystems can provide and is considering initiatives at properties held by JMF and IIF to help protect ecosystems and mitigate any potential impacts on natural capital. The initiatives it is promoting in relation to preserving biodiversity at properties include the establishment of green zones, consideration for the use of native species, and management of green space in accordance with the Green Space Management Manual.