Environmental

Biodiversity

Biodiversity

Information Disclosure Based on TCFD and TNFD Recommendations

Governance

System of Supervision by the Board of Directors of KJRM Holdings / each investment corporations

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 of KJRM Holdings, which is chaired by the President & CEO who also serves as CSO and meets at least once every three months, as well as the Board of Directors of the investment corporation, which meets at least twice a month in principle.

The Sustainability Committee

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”.

Risk Management

Organizational Process of Identifying and Evaluating Environment-related Risks, etc.

Dependencies and impacts as well as risks and opportunities on climate change and natural capital are sorted out in consideration of KJRM'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.

Process of Managing Natural Capital-related Risks, etc. and Organizational Initiatives

KJRM 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.

Integration into Overall Risk Management

KJRM 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.

Integration into Overall Risk Management

Information Disclosure Based on TNFD Recommendations

Basic Policy

We recognize the critical importance of what ecosystems can provide and are committed to protecting ecosystems and mitigating any potential impacts on biodiversity.

Relationship with Natural Capital

We recognize that human life and economic activities are based on natural capital, including biodiversity. We will continue to examine the relationship between our business activities and natural capital with reference to the TNFD recommendations.

LEAP Approach

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 our business activities on nature and to select potential priority locations.

Dependencies and Impacts

The TNFD recommendations encourage the use of the ENCORE tool to identify dependencies and impacts on natural capital in our operating sectors. Referring to real estate management as the sector in which we have direct operations, we considered the dependencies and impacts on natural capital that ought to be considered. In its considerations, we 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.

Heat Map of Dependencies and Impacts

Heat Map of Dependencies and Impacts
  • *Heat Map of Dependencies and Impacts (created using ENCORE)
    ENCORE Partners (Global Canopy, UNEP FI, and UNEP-WCMC) (2024). ENCORE: Exploring Natural Capital Opportunities, Risks and Exposure. [yOn-line], [insert month/year of the version downloaded], Cambridge, UK: the ENCORE Partners. Available at: https://encorenature.org.
    DOI: https://doi.org/10.34892/dz3x-y059.

In our current review, although we have analyzed high dependency items as not applicable, we believe that land use in our 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. We anticipate that these impacts pose a risk of land use change due to climate change, such as the occurrence of fires and floods.

Interface with Nature

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 our business activities on nature and to select potential priority locations.

TNFD priority locations (overlap between sensitive locations and material locations) + five requirements for sensitive locations and descriptions of material locations

TNFD priority locations (overlap between sensitive locations and material locations) + five requirements for sensitive locations and descriptions of material 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
Biodiversity Evaluatioin Map
  • Sources:Biodiversity Assessment Map (Biodiversity Chart), Ministry of t he Environment
    National Land Information Web Mapping System, Environmental Imp act Assessment Database System (EADAS), KBA Map (Conservation International Japan), Ecologically or Biologically Significant Marine Areas Identified by Japan (Ministry of the Environment)
    Esri, Maxar, Earthstar Geographics, and the GIS User Community

Initiatives for Biodiversity

We recognize the critical importance of what ecosystems can provide and are considering initiatives at properties held by JMF and IIF to help protect ecosystems and mitigate any potential impacts on natural capital. The initiatives we are 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.

DFF Inc., KJR Management