Sustainability

ESG Policy

HEIWA REAL ESTATE REIT, Inc.

The Heiwa Real Estate Group, as a company pursuing the realization of an affluent urban environment by providing comfortable offices and living spaces, is aware of the weight of its social responsibilities and strictly complies with any and all laws, regulations and rules. Moreover, the Group aims to be a company that perpetually earns the trust of society by observing the highest ethical standards. In accordance with this basic policy established as the Group's Code of Conduct, the Investment Corporation will strive to conduct business operations while taking into consideration the environment, society, and governance (ESG), and contributing to the development of a sustainable society as well as increasing medium- to long-term shareholder value.

1. Realizing sustainable urban development with safety and security

The Investment Corporation will promote disaster preparedness and support for people with disabilities to provide safety and security, and through these actions seek to increase the value of its properties. The Investment Corporation will also consider the risks and opportunities related to climate change and promote the reduction of energy consumption and the introduction of renewable energy to contribute to the realization of a low carbon society, and will advance the adaption of our portfolio to climate change.

2. Contributing to local communities

The Investment Corporation will place importance on coexistence with local communities as a good corporate citizen, and will endeavor to resolve problems faced by local communities by attracting tenants and through other methods, and will build trust by strengthening relations with the local area as well as increase the competitiveness of the Investment Corporation’s properties by boosting local-area value through operating properties that contribute to the development of areas to provide a comfortable life.

3. Creating a rewarding work environment

In cooperation with the Asset Management Company, the Investment Corporation will promote efforts to create a healthy, rewarding work environment, and will secure mental and physical comfort as well as a sense of affluence. The Investment Corporation will also endeavor to respect each individual employee, eliminate any and all discrimination and harassment, proactively work to enhance the professional expertise of the officers and employees through human resource development including training and support for the acquisition of qualifications, and increase business growth, stability, and operational capacity by securing excellent human resources.

4. Strengthening corporate governance

The Investment Corporation will promote the establishment of an effective governance system that ensures the objectivity and diversity of its directors as well as reduce operational risks by strictly complying with laws and regulations pertaining to the Investment Corporation's operations, social norms and corporate ethics.

5. Sustainability-related education and awareness building

The Investment Corporation will conduct sustainability-related education and awareness building activities for the officers and employees of the Asset Management Company, the properties managers of the Investment Corporation, other suppliers, tenants, and all others concerned to enhance the level of motivation to achieve sustainability.

6.Facilitating communications

The Investment Corporation will endeavor to ensure transparency and communicate extensively with society through the acquisition of external certifications and the timely and accurate disclosure of information, and it will proactively disclose its ESG policies, activities, and other necessary information to unitholders, tenants, local communities, and business partners while seeking to build stakeholder trust and obtain appropriate ratings.

Established: May 14, 2021

Environmental Initiatives

In accordance with its environmental policies, Heiwa Real Estate REIT, Inc. has established specific strategies for reducing environmental impact with regard to important environmental issues, including saving energy and water and reducing waste output at properties under its ownership, and is working to tackle these issues.

Target Setting

Heiwa Real Estate REIT, Inc. sets annual targets with regard to the following environmental indicators, and works to ascertain and manage progress in achieving them.

Indicator (unit base) Target
Energy consumption Improve overall unit energy consumption for properties requiring submission of notification in accordance with the Act on the Rational Use of Energy by at least 1% year on year
As a medium term target, reduce average unit energy consumption over a five year period by at least 1%
GHG (greenhouse gas) emissions Do not allow overall GHG emissions to increase for properties requiring submission of notification in accordance with the Act on the Rational Use of Energy
Water consumption Do not allow overall water consumption to increase for properties requiring submission of notification in accordance with the Act on the Rational Use of Energy
Waste output Increase overall recycling rates for offices (excluding assets under indirect management) year on year

Performance Data

Energy Consumption
Fiscal Year 2019 2020 Percentage change year on year
Total consumption (MWh) 17,441 17,218 -1.28%
Consumption Intensity(MWh/㎡) 0.120 0.119 -1.00%
GHG (CO2) Emissions
Fiscal Year 2019 2020 Percentage change year on year
Total consumption(t-CO2) 8,057 7,635 -5.24%
Emissions Intensity (t-CO2/m2) 0.055 0.053 -4.96%
Water consumption
Fiscal Year 2019 2020 Percentage change year on year
Total consumption(㎥) 134,298 133,644 -0.49%
Consumption Intensity(㎥/㎡) 0.923 0.921 -0.2%
Waste output
Fiscal Year 2019 2020 Percentage change year on year
Total output (t) 997 986 -1.15%
Recycling rate (%) 50.7 51.7 1.95%

Notes regarding the above performance data

  • The above data displays actual values for common parts of residences, common and private parts of office buildings under the ownership of Heiwa Real Estate REIT, Inc. Values for shared properties are calculated according to percentage ownership.
  • Unit values are calculated after adjustment for ownership period and occupancy rate for each property.

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