• ▼Sustainability Target
• ▼Environmental Performance
• ▼Environment-friendly Initiatives

Sustainability Target

The Asset Manager considers efforts such as energy conservation and reducing greenhouse gas emissions in relation to asset management to be serious environmental issues. As such, it establishes individual policies and strives to reduce the burden it puts on the environment.
The Asset Manager formulated various policies. A target for reduced energy usage (medium to long-term target) is established as follows.

Indicator	Annual target	Long-term target (over the 10-year period from 2018 to 2027)
Energy consumption	1% reduction of intensity	10% reduction of intensity
GHG emissions	1% reduction of CO2 emission intensity	10% reduction of CO2 emission intensity
Water consumption	－	Reduction of consumption intensity to less than its FY ended Mar. 2018 (base year) level
Waste management	－	Increase in recycling rate to more than its FY ended Mar. 2018 (base year) level

(Note)	Targeted at properties designated by the Asset Manager’s Sustainability Committee or its secretariat. Learn more about the Sustainability Committee.

Environmental Performance

Energy consumption

	FY ended Mar. 2017 (base year)	FY ended Mar. 2018
Number of properties	143	153
Total consumption (MWh)	76,440	113,614
Consumption intensity (MWh/㎡)	0.1253	0.1186
Reduction rate of intensity (%)	-	-5.4%

GHG emissions

	FY ended Mar. 2017 (base year)	FY ended Mar. 2018
Number of properties	143	153
Total emissions (t-CO2)	34,336	51,117
Emission intensity (t-CO2/㎥)	0.0556	0.0536
Reduction rate of intensity (%)	-	-3.4%

Water consumption

	FY ended Mar. 2017 (base year)	FY ended Mar. 2018
Number of properties	142	149
Total consumption (㎥)	391,637	509,810
Consumption intensity（㎥/㎡）	0.8205	0.8088
Reduction rate of intensity (%)	-	-1.4%

Waste management (recycling rate)

	FY ended Mar. 2017 (base year)	FY ended Mar. 2018
Number of properties	6	9
Total amount (t)	1,202	1,998
Recycling rate (%)	54.2%	53.0%

(Notes)

1.	Aggregation period The aggregation period is from every April to the following March. Results are updated annually in principle.
2.	Calculation method Environmental performance is calculated only for DHR-owned properties for which the requisite data are available. Energy consumption intensity and GHG emission intensity are calculated by dividing total electricity usage and CO2 emissions by intensity denominator (gross floor area (㎡)).

Environment-friendly Initiatives

DHR implements the following environment-friendly measures for its properties.

■Energy saving measures

■Greening and countermeasures against heat island effect

■Promotion of green leases

Aiming to improve the environmental performance of portfolio assets through a collaborative effort with tenants, DHR is promoting green leases.

In a green lease agreement, the building owner and the tenants jointly cooperate by proactively entering into agreements and memorandums of understanding regarding the reduction of the environmental burden of the property, such as through energy savings, and improvement of the workplace environment, and by putting the details of these undertakings into practice.

	Number of properties with green lease agreements	Ratio of green lease agreements
Green lease agreements	28 properties	25.0%

(Notes)

1.	Contract status is stated as of March 31, 2019.
2.	Ratio of green lease agreements = total gross floor area of properties under green lease agreements / total gross floor area of overall portfolio (Excluding the properties where only land is owned and Shibaura Island Bloom Tower.)
3.	Gross floor area is based on the area listed on the inspection certificate of each property.
4.	Ratio of green lease agreements shown is rounded to the nearest tenth.

■Installation of solar power generation systems

	Number of properties	Power generated in FY ended Mar. 2019
Properties with solar power generation facilities	15 properties	13,815MWh

■Supply chain management

The Asset Manager has established the criteria for selecting property management (PM) companies and evaluates all PM companies annually. Its evaluations cover a system for sustainability initiatives in addition to property management, property engineering management, leasing and other capabilities.

To achieve the energy reduction targets for properties owned by DHR, the Asset Manager will continue to promote measures to reduce environmental burden in cooperation with PM companies, building management (BM) companies and other suppliers.

■Management of multi-use properties

Capitalizing on its status as a diversified REIT, DHR also owns multi-use properties. DHR believes multi-use properties help to reduce environmental burden and contribute to revitalizing neighborhoods and communities through such means as reducing travel distances between workplaces, shopping and other popular destinations.

■Investment in existing urban development zones

Daiwa House Group enhances landscapes and local residents’ convenience through investments in properties developed through redevelopment, land readjustment or other such projects.

■Acquisition of environment-friendly properties

The large-scale commercial complex “iias Tsukuba” was selected as an exceptional example in the “Commercial Facilities and Accommodations Category” of the “Energy-Efficient Lighting Design Awards 2012,” sponsored by the Ministry of the Environment, due to the work they underwent to change to LED lighting after opening in October 2008.

(1) Energy saving and minimum maintenance realized through full scale introduction of LED lighting
Electricity consumed was reduced by approximately 68% compared to the fluorescent lighting originally installed, since lights of areas such as interior walkways and parking structures, outdoor signs, the workspaces other than the sales floors, and restrooms were all changed to LED lighting.
Compared to fluorescent and incandescent lighting, LED lighting gives off less heat, helping to suppress rising room temperatures, which also contributes to saving energy on air conditioning.
Furthermore, consideration is also given to the maintenance aspect by using the suitable LED lights in each place, such as adopting long-lasting kinds of LED lights in outdoor signs installed on the top of the buildings where changing lights is difficult.

(2) Lighting design conscious of the brightness of the space
Warm white lights are used for indoor lighting to produce a warm and relaxed atmosphere. Furthermore, our lighting design realizes energy conservation while ensuring brightness and safety such as by reconsidering illuminance levels for interior walkways and giving consideration to light leakage from shops and shop sign illumination.
These lighting designs create pleasant shopping spaces while making each shop’s display stand out. As a result, they provide a high level of satisfaction not only for customers but also for each shop.

About the “Energy-Efficient Lighting Design Awards”
Sponsored by the Ministry of the Environment, this award aims to spread “new energy-efficient lighting designs” that create attractive spaces while achieving excellent energy saving results, and to contribute to limiting peak demand of power consumption. The evaluation covers: (1) the results of installing energy saving lighting (2) design, innovation, creativity, and comfort (3) reproducibility, ability to contribute to the region, and autonomy as a model and (4) practicality, economic efficiency, etc.

Furthermore, installation of solar power generation facilities and wall greening took place at this property, and going forward, DHR is promoting acquisition of environment-friendly properties.

■Pollution prevention

Before adding any property to its portfolio, DHR shall conduct detailed environmental due diligence on the matters listed below. During the due diligence process, DHR comprehensively assesses the property’s investment value, weighing its impact on DHR’s overall portfolio, contribution to expected increase in value and other relevant considerations while consulting a fair real-estate appraisal by a third party with sufficient skill and experience in due diligence studies.
a. Geology and ground, buried objects, soil contamination, etc.
b. Status with respect to hazardous substances (asbestos, PCBs, etc.)

■Long-term environmental vision of “Challenge ZERO 2055”

Looking ahead to 2055, which marks the 100th anniversary of the foundation of Daiwa House, Daiwa House Group formulated a long-term environmental vision of “Challenge ZERO 2055” in FY ended Mar. 2017. Daiwa House Group aims to realize a sustainable society in accord with its Group Management Vision of being a Group that co-creates value for individuals, communities and lifestyles. It will challenge to reduce its environmental impact to zero with respect to four environmental priority themes (mitigation of and adaptation to climate change, harmony with the natural environment, conservation of water and other natural resources, and prevention of chemical pollution) through the three stages of procurement, business activities, and products/services.

Learn more about Daiwa House Group’s long-term environmental vision “Challenge ZERO 2055”

■Violations of environmental laws and regulations and environmental accidents

There were not any significant violations of environmental laws and regulations or significant environmental accidents at DHR-owned properties that would affect stakeholders in FY ended Mar. 2019.