Policy and Basic Approach

To increase the objectivity and reliability of DHR’s initiatives in reducing the environmental burden of properties, DHR intends to increase medium- to long-term asset value and acquire environmental certifications.
Even at DHR’s properties without any environmental certifications, through initiatives such as conversion to LED lighting and the introduction of energy-saving air conditioning and water saving equipment, DHR works to reduce its environmental impact by promoting energy savings and proper sorting and disposal of waste.

KPIs and Main Initiatives

DHR plans to increase the percentage of properties with environmental certification (gross floor area basis) to 75% or more by the fiscal year ending March 2031.
DHR is proactively working to obtain environmental certifications for its many ongoing efforts to realize a sustainable society in addition to improving environmental performance, for example through converting to LED lighting at its properties.
Additionally, because the Asset Manager has asked its sponsor to consider acquiring BELS Certification, CASBEE Certification for Buildings, and other environmental certifications while their properties are in the development stage, more properties are already certified by the time DHR acquires them.

Percentage of properties that have obtained environmental certifications in the entire portfolio

ZEB/ZEH Certification

Net Zero Energy Building (ZEB) refers to a building that is aimed to achieve zero primary energy expenditures in annual building consumption by working to save energy with improved heat insulation and high-efficiency equipment while maintaining a comfortable indoor environment and by creating energy using solar power generation and other renewable energies. As part of the BELS Certification System, ZEB assessments indicate the progress toward these goals with four different ratings: “ZEB” (highest rating), Nearly ZEB, ZEB Ready, and ZEB Oriented. DHR has set the following targets to further implement ZEB initiatives going forward.

Biodiversity-related Certifications

DHR property Royal Parks Toyosu was certified under the Japan Habitat Evaluation and Certification Program (hereinafter referred to as “JHEP”), and Royal Parks Hanakoganei received certification from the Association for Business Innovation in harmony with Nature and Community (hereinafter referred to as “ABINC” and “ABINC certification”).
DHR has set the following targets in consideration of the impact on business from rising biodiversity needs of customers.

DBJ Green Building Certification

DBJ Green Building Certification

DBJ Green Building certification is a certification system established by the Development Bank of Japan Inc. (DBJ) to support real estate that is environmentally and socially conscious (Green Building). It assesses and certifies properties that are required by society and the economy, based on a comprehensive assessment of environmental performance, disaster prevention, consideration of the community, and other actions taken for various stakeholders, and supports those efforts.

Properties with the best class environmental & social awareness	Properties with the best class environmental & social awareness	Properties with excellent environmental & social awareness	Properties with high environmental & social awareness	Properties with sufficient environmental & social awareness

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

CASBEE for Real Estate Certification

BELS Certification

ZEB and ZEH Certification

“ZEB”	Buildings with reduced primary energy consumption of 100％ or more from the benchmark primary energy consumption including renewable energy in addition to meeting the requirements of ZEB Ready
Nearly ZEB	Buildings with reduced primary energy consumption of 75% or more but less than 100% from the benchmark primary energy consumption including renewable energy in addition to meeting the requirements of ZEB Ready
ZEB Ready	Buildings with reduced primary energy consumption of 50% or more from the benchmark primary energy consumption excluding renewable energy
ZEB Oriented	Buildings with gross area of 10,000 ㎡ or more and reduced primary energy consumption excluding renewable energy compared to the benchmark specified for each use in addition to introduction of unevaluated technology

• Daiwa House Industry Co., Ltd. based on the website of ZEB by the Ministry of the Environment

LEED Certification

JHEP Certification

ABINC Certification

Environmental Certifications