• ▼Participation in GRESB Real Estate Assessment
• ▼Environmental Certifications
• ▼SMBC Environmental Assessment Loan
• ▼MUFG ESG Rating Certificate for J-REITs supported by JCR

Participation in GRESB Real Estate Assessment

■About GRESB

"Global Real Estate Sustainability Benchmark (GRESB)" is a benchmark developed by a group of leading European pension funds. It evaluates the ESG performance of real estate companies and funds, and is becoming a de facto standard among major European, American and Asian institutional investors utilized in their investment decision-making processes.
DHR has participated in the assessment since 2017.

For details, please refer to the GRESB website: https://gresb.com/

Environmental Certifications

DHR is having its properties externally certified and evaluated by third parties to increase objectivity and reliability with respect to its initiatives to reduce its properties’ environmental burden and boost medium- to long-term asset values. Certified rate of DHR’s properties that have obtained environmental certifications are shown in the table below.
DHR plans to increase the rate of certified properties to its properties to 50% or more (on a gross floor area basis).

■Environmental certification status (Note 1)

	Number of certified properties	Number of portfolio properties (Note 3)	Proportion of certified properties (based on number of properties)	Certified square measure (gross floor area (Note 2))	Portfolio square measure (Note 3) (gross floor area (Note 2))	Certified rate (based on gross floor area)
DBJ Green Building certification	26	216	12.0％	1,201,377.12㎡	3,005,690.05㎡	40.0％
BELS certification	9	216	4.2％	448,209.48㎡	3,005,690.05㎡	14.9％
CASBEE certification	1	216	0.5％	144,099.52㎡	3,005,690.05㎡	4.8％

(Note 1)	Certified status shows numeral values as of September 30, 2019.
(Note 2)	Gross floor area is based on the area listed on the inspection certificate of each property.
(Note 3)	Excluding the properties where only land is owned and Shibaura Island Bloom Tower.
(Note 4)	Certified rate is rounded to the nearest tenth.

■About DBJ Green Building Certification

DBJ Green Building Certification Program was launched by Development Bank of Japan Inc. (DBJ) for the purpose of supporting the properties which give proper care to environment and society (Green Building). The program evaluates, certifies and supports properties which are required by society and economy. It makes comprehensive assessment of properties, while evaluating various factors which range from properties' environmental features to their communication with stakeholders, such as disaster prevention and proper care for surrounding communities.

For details, please refer to the website of DBJ Green Building Certification: http://igb.jp/en/index.html

■DBJ Green Building Certified Properties

	2 properties	DPL Misato D Project Kakegawa
Total	2 properties
	10 properties	D Project Machida D Project Hachioji D Project Kuki I D Project Kuki II D Project Kuki IV D Project Kuki V D Project Kawagoe III D Project Tomisato II DPL Fukuoka Kasuya Royal Parks Hanakoganei
Total	10 properties
	9 properties	D Project Urayasu II D Project Inuyama D Project Urayasu III D Project Kaminokawa Royal Parks Toyosu Royal Parks Wakabadai ACROSSMALL Shinkamagaya FOLEO Otsu Ichiriyama Naha Shin-Toshin Center Building (Daiwa Roynet Hotel Naha-Omoromachi)
Total	9 properties
	5 properties	D Project Noda D Project Sendai Izumi II D Project Kitahachioji III D Project Itabashi Shingashi Pacific Royal Court Minatomirai Urban Tower
Total	5 properties
	26 properties
Total	26 properties

■About CASBEE for Real Estate Certification

CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a method designed to comprehensively assess the environmental efficiency of buildings and promoted throughout Japan, under the guidance of the Ministry of Land, Infrastructure, Transport and Tourism.
CASBEE for Real Estate Certification is a system where third-party institutions examine and certify assessment results prepared in accordance with CASBEE for Real Estate. The certification rank is represented by the number of stars on a four-tier scale from five stars (“S”) to two stars (“B”).

■CASBEE For Real Estate Certified Properties

	1 property	iias Tsukuba
合計	1 property

■About BELS Certification

The Act on the Improvement of Energy Consumption Performance of Buildings (Building Energy Efficiency Act) calls on real estate companies and certain other parties to label the energy saving performance of buildings. BELS (Building-Housing Energy-efficiency Labeling System) is a system where third-party institutions evaluate the energy saving performance of buildings based on evaluation standards set by the Ministry of Land, Infrastructure, Transport and Tourism, and the certification rating is represented by the number of stars on a five-tier (★★★★★ - ★) evaluation scale.

■BELS Certified Properties

★★★★★	3 properties	D Project Machida D Project Noda D Project Kuki V
Total	3 properties
★★★★	1 property	D Project Kuki II
Total	1 property
★★★	1 property	D Project Tosu III
Total	1 property
★★	4 properties	D Project Urayasu II D Project Inuyama D Project Kawagoe III D Project Kaminokawa
Total	4 properties
	9 properties
Total	9 properties

（Note）	Regarding D Project Inuyama, the building additionally acquired as of April 10, 2018 was certified.

Learn more about Daiwa House Group’s ESG Index and external evaluations

SMBC Environmental Assessment Loan

■About SMBC Environmental Assessment Loan

SMBC Environmental Assessment Loans are offered to corporate borrowers by Sumitomo Mitsui Banking Corporation (“SMBC”) under a program where the borrowers’ environmental conscientiousness is rated on a seven-tier scale with “AAA” as the highest rating, based on proprietary assessment standards set by SMBC and The Japan Research Institute, Limited.

■Overview of the assessment

In recognition of its commitment to environmental initiatives, DHR received an “A” rating for maintaining high standards in the environmental management, environmental communication and implementation of environmental protection measures. In this assessment, DHR was highly rated on the following three points in particular.

(1)	To promote ongoing initiatives to reduce portfolio properties’ environmental burden, the Asset Manager has formulated Sustainability Policy, and set a medium- to long-term target of “reducing individual properties’ energy consumption intensity and CO2 emission intensity by 10% over the 10-year period from 2018 to 2027” in the aim of reducing DHR’s overall portfolio’s environmental burden.
(2)	To raise employees’ environmental consciousness, the Asset Manager has incorporated sustainability initiatives (e.g. participation in community co-creation activities) and proposals to tenants (e.g. installation of LED lighting) as matters evaluated in employee performance evaluations.
(3)	Among specific environmental initiatives, DHR enters into green lease agreements with tenants and promotes installation of LED lighting and solar power generation facilities in coordination with tenants.

MUFG ESG Rating Certificate for J-REITs supported by JCR

■About MUFG ESG Rating Certificate for J-REITs supported by JCR

MUFG ESG Rating Certificate for J-REITs supported by JCR, provided by Mitsubishi UFJ Research and Consulting Co., Ltd. with support from Japan Credit Rating Agency, Ltd. (“JCR”), intends to evaluate J-REITs’ initiatives and implementation measures with regard to ESG issues, and the certification rating is represented on a five-tier scale with “S” being the highest rating.

■Overview of the assessment

DHR and the Asset Manager received an “S” rating for broad-based initiatives in all areas of ESG. In particular, the following factors were highly evaluated in the assessment.

　

(1)	Establishing a system and taking measures to promote sustainability based on the Sustainability Policy
(2)	Promoting reduction of GHG emissions proactively at portfolio properties
(3)	Taking measures to improve living environment of residents and working environment of employees
(4)	Ensuring a sense of compliance as a company