Policy and Approach to Natural Capital
DHR and the Asset Manager share the Daiwa House Group’s basic approach of “Creating Dreams, Building Hearts.” To attain a sustainable society, it is essential that we include environmental, social, and governance considerations in real estate investment management operations. We also believe that this will contribute to DHR’s basic policy of ensuring stable revenue and achieving steady asset growth over the medium to long term. As such, the Asset Manager established the Sustainability Policy in April 2017, and has been applying it to its real estate investment management business.
Our lives and economic activity are underpinned by the gifts of nature, which we receive through the ecosystem—the foundation of biodiversity. While the environmental issue of loss of natural capital, including biodiversity, may increase risks in the value chain, contributing to solving environmental issues through business can also lead to sustainable growth. Addressing climate change, reducing overconsumption, engaging in sustainable production, investing in biodiversity, and promoting other initiatives in the context of the business activities of DHR and the Asset Manager should contribute to the pursuit of nature positivity and increase our competitiveness.
Various Initiatives
- Membership in the TNFD Forum
- Registration as a TNFD Adopter
- Joining the Japan Business Initiative for Biodiversity (JBIB)
- Joining the 30 by 30 Alliance for Biodiversity
General Requirements
The following “General Requirements” have been added in the TNFD to the TCFD framework.
General Requirements | |||
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(1) Application of materialityIdentify material issues (materialities), including natural capital related to sustainability, through the process below.
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(2) Scope of disclosure■Scope of nature-related assessments and disclosures
■Process for determining the scope of nature-related assessments and disclosuresReports to the Compliance Committee, the Asset Manager’s Board of Directors, and DHR’s Board of Directors after discussion at the Sustainability Committee. |
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(3) Geographic location
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(4) Integration with other sustainability information
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(5) TimelineShort-term: 1 year or less |
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(6) EngagementDaiwa House Group shall strive to have dialogues and consultations with the stakeholders so as to understand the influence that our business activities may bear upon human rights from the viewpoint of those affected and to address and improve it. |
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Governance | Strategy | Risk and Impact Management | Metrics and Targets |
Disclose governance related to nature-related dependencies, impacts, risks, and opportunities. | Disclose the impact of nature-related dependencies, impacts, risks, and opportunities on business models, strategies, and financial plans when such information is material. | Disclose the process used to identify, assess, prioritize, and monitor nature-related dependencies, impacts, risks, and opportunities. | Disclose metrics and targets used to assess and manage significant nature-related dependencies, impacts, risks, and opportunities. |
Examination of Risks and Opportunities in Line with the LEAP Approach
LEAP Approach
In line with the LEAP (Locate, Evaluate, Assess, Prepare) approach designed to assess nature-related risks and opportunities as outlined by the TNFD, DHR identified and analyzed nature-related dependencies and impacts (Note) on DHR’s operations, as well as identified and evaluated nature-related risks and opportunities.
LEAP Approach Conducting Analysis
Governance
Sustainability Promotion System, Supervision by Board of Directors, and Role of Top Management
See “Sustainability Promotion System,” our Sustainability Policy and Promotion System.
Sustainable Procurement Policy
Biodiversity
In procuring wood, strive to use wood that has been verified as legal and sustainable, or procure 100% recycled wood.
See here for other sustainable procurement policies.
Timber Procurement Policy
Any development business comes with the potential risks of losing business opportunities or incurring costs to revitalize that ecosystem if any loss of the ecosystem occurs in the region. In the long term, there are concerns that, if demand for timber, one of the materials handled by the Daiwa House Group, grows with a focus on legality and sustainability, there will be difficulties in the procurement of such timber.
Therefore, based on the environmental and social standards outlined in the Biodiversity Guidelines [Timber Procurement], which is part of the Daiwa House Group’s Supply Chain Sustainability Guidelines for goods (construction materials, etc.) procured and delivered to DHR by suppliers, the Asset Manager works to promote the property management companies to use timber that includes:
- Certified timber: timber certified by various agencies
- Recycled timber: timber recycled from scrap construction materials
- Timber recommended by Daiwa House: timber determined to be above a certain level in 10 check items other than (1) and (2) (three legality items and seven sustainability items).
ZERO Deforestation* Policy
The Daiwa House Group will:
- Procure timber from suppliers advocating a policy of zero deforestation
- Purchase from suppliers who handle timber with respect for human rights and safety of indigenous people and workers in the country of origin
- Purchase timber whose traceability can be verified
- Expand the use of timber subject to the zero deforestation policy to plywood formwork panels, main equipment, fittings, and wallpaper in addition to structural materials, base materials, batten cleats, and flooring materials
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Zero deforestation timber is:
(1) Timber without damage to biodiversity due to clear-cutting of natural forests
(2) Timber planted in a manner that does not damage high carbon stocks (HCS)
(3) 100% recycled materials
See Stakeholder Engagement for more information.
Strategy
Creation and Utilization of a Heatmap of Dependencies and Impacts on Nature
DHR has developed a heatmap using ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) (Note 1) and the SBTN Materiality Screening Tool (Note 2) developed by UNEP (United Nations Environment Programme) and has organized the degree of nature-related dependencies and impacts in real estate management (direct operations) and construction (upstream) into five levels.
Using the organized results and following the LEAP (Locate, Evaluate, Assess, Prepare) approach, we have identified and analyzed nature-related dependencies and impacts on DHR’s operations, as well as identified and evaluated nature-related risks and opportunities.
- ENCORE: https://encore.naturalcapital.finance/en
- SBTN Materiality Screening Tool: https://sciencebasedtargetsnetwork.org/wp-content/uploads/2023/05/SBTN-Materiality-Screening-Tool-v1.xlsx
Heatmap of Dependencies
Confirmed a high dependency on surface water in real estate management (direct operations).
Heatmap of Impacts
Confirmed a very high impact on “Terrestrial ecosystem use” and high impacts on “Solid waste” and “GHG emissions” in real estate management (direct operations)
Methodology for Analyzing Nature-related Dependencies and Impacts
Analyzing Nature-related Dependencies and Impacts
The aforementioned heatmap was used as a reference to analyze the nature-related dependencies and impacts of the top 100 properties (80.1% coverage) based on acquisition price as high-priority properties for DHR.
Methodology for Analyzing Nature-related Dependencies
Evaluation item | Evaluation method | |
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Ecological status of the property area | (1) Ecological integrity (Note 1) | |
(2) Ecological importance (Note 2) | ||
(3) Water stress (Note 3) | ||
Dependency status | Energy | Amount used (Note 4) |
Water | Amount used (Note 5) | |
Resources | Land area of the property is scored and evaluated (Note 6) | |
Overall evaluation (dependency) |
Energy | Amount used (Note 4) |
Water | Water use and water stress are scored and evaluated | |
Resources | Land area of the property is scored and evaluated (Note 6) |
Methodology for Analyzing Nature-related Impacts
Evaluation item | Evaluation method | |
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Impact status | Waste | Amount of waste (Note 7) |
GHG | GHG emissions (Note 8) | |
State of ecosystem services/crisis | Ecological integrity and importance are scored and evaluated | |
Overall evaluation (impact) | Waste | Ecological integrity, importance, and amount of waste are scored and evaluated |
GHG | Ecological integrity, importance, and GHG emissions are scored and evaluated |
- Evaluated using the WWF Risk Filter Suite, which assesses the state of ecosystems.
https://riskfilter.org/biodiversity/explore/map - The area surrounding the property (within a 1 km radius) was evaluated based on (1) Whether or not it is designated as a nature conservation area, (2) The number of plant species listed in the Red Data Book, (3) The number of bird species listed in the Red Data Book, and (4) The number of useful plant species.
https://biodiversity-map.thinknature-japan.com/ - Evaluated using the WRI Aqueduct indicator, which assesses the amount of water resources.
https://www.wri.org/applications/aqueduct/water-risk-atlas/#/?advanced=false&basemap=hydro&indicator=w_awr_def_tot_cat&lat=-14.445396942837744&lng=-142.85354599620152&mapMode=view&month=1&opacity=0.5&ponderation=DEF&predefined=false&projection=absolute&scenario=optimistic&scope=baseline&timeScale=annual&year=baseline&zoom=2 - Evaluated based on annual electricity consumption.
- Evaluated based on annual water consumption.
- Evaluated based on land area.
- Evaluated based on annual amount of waste, assuming that the waste is disposed of in the vicinity.
- Evaluated based on annual GHG emissions assuming Scope 1.
Results of Dependency Analysis
Results of Nature-related Dependency Analysis
The results of the analysis confirmed a high score (high dependency) for resources.
The results of the analysis of the top ten properties based on acquisition price and the top 100 properties based on acquisition price (80.1% coverage) in terms of nature-related dependencies are as follows.
Asset class | Property number | Property name | Acquisition price (millions of yen) |
Location | Dependency | ||||||||
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Ecological status of the property area | Dependency status | Overall evaluation (dependency) | |||||||||||
Energy | Water | Resources | Energy | Water | Resources | ||||||||
Ecological integrity | Ecological importance | Water stress | Amount used | Amount used | Scored evaluation | Amount used | Scored evaluation | Scored evaluation | |||||
Retail | RM-012 | iias Tsukuba | 34,120 | Tsukuba City, Ibaraki | ★★★ | ★ | ★★ | ★★★ | ★★★ | ★★★ | ★★★ | ★★★ | ★★★ |
Logistics | LM-004 | DPL Nagareyama I | 32,600 | Nagareyama City, Chiba | ★★★ | ★★ | ★★ | ★★★ | ★ | ★★★ | ★★★ | ★★ | ★★★ |
Logistics | LM-006 | DPL Nagareyama III | 32,000 | Nagareyama City, Chiba | ★★★ | ★★ | ★★ | Unevaluated | Unevaluated | ★★★ | Unevaluated | ★ | ★★★ |
Other | OT-006 | GRANODE Hiroshima | 28,800 | Hiroshima City, Hiroshima | ★★ | ★★★ | ★★ | ★★ | ★★ | ★★★ | ★★ | ★★★ | ★★★ |
Logistics | LB-006 | D Project Urayasu II | 26,000 | Urayasu City, Chiba | ★★★ | ★★ | ★★ | ★ | ★ | ★★★ | ★ | ★★ | ★★★ |
Logistics | LM-001 | DPL Misato | 16,831 | Misato City, Saitama | ★★★ | ★ | ★★ | ★★ | ★ | ★★★ | ★★ | ★★ | ★★★ |
Logistics | LB-002 | D Project Hachioji | 15,400 | Hachioji City, Tokyo | ★★★ | ★★ | ★★ | ★★★ | ★ | ★★★ | ★★★ | ★★ | ★★★ |
Logistics | LB-066 | D Project Hiratsuka | 15,200 | Hiratsuka City, Kanagawa | ★★★ | ★★ | ★★ | ★ | ★ | ★★★ | ★ | ★ | ★★★ |
Logistics | LM-002 | DPL Fukuoka Kasuya | 13,300 | Kasuya District, Fukuoka | ★★ | ★★ | ★★ | ★ | ★ | ★★★ | ★ | ★ | ★★★ |
Logistics | LB-060 | D Project Itabashi Shingashi | 12,300 | Itabashi Ward, Tokyo | ★★★ | ★ | ★★ | ★★ | ★ | ★★★ | ★★ | ★★ | ★★★ |
Average score of 100 properties (Note) | 2.8 | 1.8 | 2.0 | 1.6 | 1.3 | 2.6 | 1.6 | 1.8 | 2.6 |
- The average scores are calculated via weighting by acquisition price. (Lowest ★ 1.0 to Highest ★ ★ ★ 3.0)
Results of Nature-related Impact Analysis
The results of the analysis confirmed a high score (high impact) for GHG.
The results of the analysis of the top ten properties based on acquisition price and the top 100 properties based on acquisition price (80.1% coverage) in terms of nature-related impacts are as follows.
Asset class | Property number | Property name | Acquisition price (millions of yen) |
Location | Impact | ||||
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Impact status | State of ecosystem services/crisis | Overall evaluation (impact) | |||||||
Waste | GHG | Waste | GHG | ||||||
Amount of waste | Emissions | Scored evaluation | Scored evaluation | Scored evaluation | |||||
Retail | RM-012 | iias Tsukuba | 34,120 | Tsukuba City, Ibaraki | ★★★ | ★★★ | ★★ | ★★★ | ★★★ |
Logistics | LM-004 | DPL Nagareyama I | 32,600 | Nagareyama City, Chiba | ★ | ★★★ | ★★★ | ★★ | ★★★ |
Logistics | LM-006 | DPL Nagareyama III | 32,000 | Nagareyama City, Chiba | Unevaluated | Unevaluated | ★★★ | ★ | ★ |
Other | OT-006 | GRANODE Hiroshima | 28,800 | Hiroshima City, Hiroshima | ★ | ★★ | ★★★ | ★★ | ★★★ |
Logistics | LB-006 | D Project Urayasu II | 26,000 | Urayasu City, Chiba | ★ | ★★ | ★★★ | ★★ | ★★★ |
Logistics | LM-001 | DPL Misato | 16,831 | Misato City, Saitama | ★ | ★★ | ★★ | ★★ | ★★★ |
Logistics | LB-002 | D Project Hachioji | 15,400 | Hachioji City, Tokyo | ★ | ★★★ | ★★★ | ★★ | ★★★ |
Logistics | LB-066 | D Project Hiratsuka | 15,200 | Hiratsuka City, Kanagawa | ★ | ★ | ★★★ | ★★ | ★★ |
Logistics | LM-002 | DPL Fukuoka Kasuya | 13,300 | Kasuya District, Fukuoka | ★ | ★ | ★★ | ★ | ★ |
Logistics | LB-060 | D Project Itabashi Shingashi | 12,300 | Itabashi Ward, Tokyo | ★★★ | ★★ | ★★ | ★★★ | ★★★ |
Average score of 100 properties (Note) | 1.3 | 1.8 | 1.6 | 1.9 | 2.2 |
- The average scores are calculated via weighting by acquisition price. (Lowest ★ 1.0 to Highest ★ ★ ★ 3.0)
Process of Nature-related Scenario Analysis
Based on the analysis of the LEAP approach, scenario analysis is conducted to evaluate the impact on DHR’s business under different scenarios and to assess strategic resilience to nature-related risks and opportunities.
Scenario Analysis Process
Step 1: Identify material nature-related risks and opportunities
- Identify nature-related risks and opportunities
- Assess nature-related risks and opportunities and identify material risks and opportunities
- Set parameters related to material risks and opportunities
Classification | Type | Anticipated timeframe | Description of risks and opportunities | |
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Risk | Physical | Acute | Short to long term | Increased repair costs of buildings and exteriors due to extreme weather conditions, as well as the degradation and cessation of natural ecosystem functions, etc., caused by increased GHG emissions |
Decreased rent income due to increased natural disasters such as typhoons and floods caused by heavy rains | ||||
Increased non-life insurance premiums due to increased natural disasters such as typhoons and floods caused by heavy rains | ||||
Transition | Market | Medium to long term | Business risks, risks of exclusion from the supply chain, and risks of lower earnings if unable to respond to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | |
Reputation | Medium to long term | Declined investment unit prices and increased funding costs due to delays in biodiversity response | ||
Opportunity | Market | Medium to long term | Increased business opportunities, avoiding exclusion from the supply chain, and increased earnings opportunities when responding to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | |
Funding | Medium to long term | Increased investment unit prices and decreased funding costs due to biodiversity response | ||
Resilience | Long term | Enhanced resilience and reduction of future cost incurrence risks and business risks by enhanced response to biodiversity |
Step 2: Set nature-related scenarios
- Identify relevant scenarios based on the information in Step 1 and other factors
- Set nature-related scenarios (social image)
Overview of anticipated scenarios
Scenario A | |
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Transition risk | High |
Physical risk | Low |
A scenario in which efforts in policy, institutional, and financial aspects of biodiversity conservation are strengthened and promoted, while nature destruction and loss of ecosystem services are curbed.
Transition risk is higher than in Scenario B, but physical risk is lower.
Scenario B | |
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Transition risk | Low |
Physical risk | High |
A scenario in which efforts in policy, institutional, and financial aspects of biodiversity conservation fail to make progress, resulting in the further destruction of nature and the loss of ecosystem services.
Transition risk is lower than in Scenario A, but physical risk is higher.
Step 3-1: Evaluate impact on business in Scenario A and Scenario B
- Assess the materiality for DHR and its stakeholders (rated on a scale from ★ (high) to ★ (low) depending on the level of materiality)
Description of risks/opportunities and materiality assessment
Classification | Type | No. | Description of risks and opportunities | Materiality assessment (Note) | |
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Risk | Physical | Acute | (1) | Increased repair costs of buildings and exteriors due to extreme weather conditions, as well as degradation and cessation of natural ecosystem functions, etc. | ★★★★★ |
(2) | Decreased rent income due to increased natural disasters | ★★★ | |||
(3) | Increased non-life insurance premiums due to increased natural disasters | ★★★ | |||
Transition | Market | (4) | Business risks, risks of exclusion from the supply chain, and risks of lower earnings if unable to respond to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | ★ | |
Reputation | (5) | Declined investment unit prices and increased funding costs due to delays in biodiversity response | ★★★★ | ||
Opportunity | Market | (6) | Increased business opportunities, avoiding exclusion from the supply chain, and increased earnings opportunities when responding to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | ★★ | |
Funding | (7) | Increased investment unit prices and decreased funding costs due to biodiversity response | ★★★★ | ||
Resilience | (8) | Enhanced resilience and reduction of future cost incurrence risks and business risks by enhanced response to biodiversity | ★★★★ |
Step 3-2: Evaluate impact on business in Scenario A and Scenario B
- Analyze the impact on business in each scenario based on each scenario set in Step 2 and the material nature-related risks and opportunities together with related parameters identified in Step 1
Step 4: Evaluate strategic resilience to nature-related risks and opportunities and consider additional measures
- Evaluate the resilience of DHR’s strategies to nature-related risks and opportunities
- Consider additional measures
Impact on Business and Countermeasures
Classification | Type | Description of risks and opportunities | Business impact | Countermeasures | ||
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Scenario A | Scenario B | |||||
Risk | Physical | Acute | Increased repair costs of buildings and exteriors due to extreme weather conditions, as well as degradation and cessation of natural ecosystem functions, etc. | Large | Large |
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Decreased rent income due to increased natural disasters | Large | Large | ||||
Increased non-life insurance premiums due to increased natural disasters | Medium | Medium | ||||
Transition | Market | Business risks, exclusion from the supply chain, and risks of lower earnings if unable to respond to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | Large | Large |
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Reputation | Declined investment unit prices and increased funding costs due to delays in biodiversity response | Medium | Medium | |||
Opportunities | Market | Increased business opportunities, avoiding exclusion from the supply chain, and increased earnings opportunities when responding to the rising biodiversity needs of customers (e.g., obtaining biodiversity-related environmental certifications (JHEP, ABINC, etc.)) | Large | Large | ||
Funding | Increased investment unit prices and decreased funding costs due to biodiversity response | Medium | Medium | |||
Resilience | Enhanced resilience and reduction of future cost incurrence risks and business risks by enhanced response to biodiversity | Large | Large |
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Risk and Impact Management
- While recognizing nature-related dependencies, impacts, and risks as one of the business risks that could pose a significant impact in the medium to long term, the Asset Manager sees such risk as areas of potential and manages the risk by incorporating it into our overall risk management process. The Asset Manager has established the “Risk Management Regulations” and “Risk Management Implementation Guidelines” as internal regulations in order to accurately identify risks and opportunities inherent in business, including those that are nature-related, develop a system for appropriately managing potential losses and profits when the identified risks and opportunities are realized, ensure the soundness of management and operate business in a fair manner.
- The Asset Manager’s Board of Directors shall oversee the development of an appropriate risk management system based on the “Risk Management Policy” after considering where and what the risk is in accordance with the strategic goals set separately by the Board of Directors. The President and CEO shall be fully responsible for all risks in accordance with the provisions of the “Daiwa House Group Risk Management Regulations,” develop an appropriate risk management system and be responsible for promoting and implementing risk management. In addition, the Compliance Officer, who is responsible for risk management, shall establish methods including measurement, monitoring, and management based on the type of risk along with the risk management policy and shall develop internal regulations to ensure the effectiveness of these methods.
- The Asset Manager has established the following risk and impact management system.
Metrics and Targets
Metrics and Targets and Initiatives to Achieve Targets
- DHR has established and is working to achieve quantitative metrics and targets for nature-related risks/opportunities and dependencies/impacts that are considered to be material in business operations.
- DHR has set a target for the obtainment of biodiversity-related certifications in addition to climate-related targets and will disclose progress in the Sustainability Report and on the website.
- DHR will consider setting targets based on the guidance of the Science Based Targets Network (SBTN) in the future.
TNFD | TCFD | Category | Subject of management | Metrics | Target | Initiatives to achieve the target | |
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✓ | Risk | Market | Impact on business from rising biodiversity needs of customers | Biodiversity-related certifications | Increase the number of certified properties from two in FY2023 to five or more in FY2030 |
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Opportunities | |||||||
✓ | ✓ | Dependency | Energy consumption | Energy consumption intensity (gross floor area basis) | Reduce by 10% in FY2027 with FY2017 as the base year |
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✓ | ✓ | Water consumption | Water consumption intensity (gross floor area basis) | Reduce to below the intensity in FY2027 with FY2017 as the base year |
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✓ | ✓ | Impact | Waste discharge | Recycling rate | Exceed the rate of FY2017 in FY2027, with FY2017 as the base year |
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✓ | ✓ | GHG emissions | GHG emissions | Reduce total emissions by 42% in FY2030 with FY2020 as the base year Net zero in FY2050 SBTi |
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Obtaining Biodiversity-related Certifications
Obtaining JHEP Certification (Royal Parks Toyosu)
Overview of JHEP certification
JHEP is a certification system to objectively and quantitatively evaluate and certify the degree of contribution to biodiversity conservation. JHEP compares biodiversity values before and after a project, and if the values after a project are equal to or greater than those before a project, it is certified by a third-party organization as a project that contributes to biodiversity, with evaluation rank represented on a six-tier (AAA to B+) scale.
Please see below for the details of JHEP certification.
Website for JHEP certification: https://www.ecosys.or.jp/certification/jhep/index.html
Points highlighted in JHEP certification
- While the subject property is surrounded by commercial areas and offices, there is an abundance of greenery on the exterior and rooftop.
- No species on the List of Invasive Alien Species for the Prevention of Ecosystem Damage or unevaluated alien species are being used, and there are no plans to use them in the future.
Please see below for the details of Royal Parks Toyosu’s evaluation.
Audit report of JHEP certification: https://www.ecosys.or.jp/certification/jhep/case/case111report.pdf
Case study of JHEP certification: https://www.ecosys.or.jp/certification/jhep/case/case111.pdf
Obtaining ABINC Certification (Royal Parks Hanakoganei)
Overview of ABINC certification
ABINC is a system to evaluate and certify biodiversity-friendly initiatives based on the Guideline for Offices Promoting Symbiosis with Life Forms developed by the Japan Business Initiative for Biodiversity (JBIB), and no evaluation rank is assigned.
Please see below for the details of ABINC certification.
Website for ABINC Certification: https://www3.abinc.or.jp/
Points highlighted in ABINC certification
- A diverse environment is maintained, with woodlands, grasslands, and waterside areas, as well as relatively large trees.
- A rain garden has been created, and efforts are being made to consider rainwater circulation.
Please see below for the details of Royal Parks Hanakoganei’s evaluation.
ABINC certified properties in the 14th evaluation: https://www3.abinc.or.jp/facility/14th_creature_facilites/
Dependency and Impact Status
Energy Data (Dependencies)
Energy consumption
- Current status
- While the intensity is decreasing due to the promotion of energy-saving measures, the total amount is increasing due to an increase in the number of properties owned and an increase in the coverage ratio.
- Countermeasures
- See “Metrics and Targets and Initiatives to Achieve Targets.”
Water consumption
- Current status
- While the intensity is decreasing due to the installation of water conservation equipment, the total amount is increasing due to an increase in the number of properties owned and an increase in the coverage ratio.
- Countermeasures
- See “Metrics and Targets and Initiatives to Achieve Targets.”
Emissions Data (Impact)
GHG Emissions of Portfolio Properties
- Scope 2 (location-based)
- Current status
- While the intensity is decreasing due to the promotion of energy-saving measures and the introduction of renewable energy, the total amount is increasing due to an increase in the number of properties owned and an increase in the coverage ratio.
- Countermeasures
- See “Metrics and Targets and Initiatives to Achieve Targets.”
Waste management (recycling rate)
- Current status
- While the recycling rate is increasing due to the promotion of recycling, the total amount is increasing due to an increase in the number of properties owned and an increase in the coverage ratio.
- Countermeasures
- See “Metrics and Targets and Initiatives to Achieve Targets.”
- <Aggregation period> From April to March every year.
- <Calculation method> Calculated using only portfolio properties for which the requisite data are available. Emission intensity is calculated by dividing total electricity usage and CO2 emissions by intensity denominator (gross floor area (m2)).
Promotion of Environmentally Friendly Tree Name Plates
DHR is using tree name plates for the properties it owns in the hope that tenants will feel closer to nature and nurture their planting with affection for many years.



Introduction of Biodiversity Protection Program
DHR is reducing the use of plastics by switching the location of provision of hair and tooth brushes from rooms to an amenities counter near the front desk at some of its hotels.
“QiZ GATE URAWA” is reducing plastic waste by using recycled trash bags made from used stretch films, which would be normally disposed of as trash, for the trash bags in common areas.