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Environment

Climate change

As part of the Investment Corporation’s aim to increase unitholder value through stable, long-term growth in asset value, we recognize that climate change has a major impact on societies/industries and is an unavoidable risk that is closely related to our business activities. By contributing to the reduction of greenhouse gases (“GHG”) mainly through the reduction of energy consumption, we aim to contribute to a sustainable society. LRA’s management team recognizes that ESG related risks, including climate change, are one of the most important topics of focus in our business. The Sustainability Promotion Committee, chaired by LRA’s CEO, formulates initiatives/policies for ESG risks and monitors the status of such activities.

Objectives and KPIs

We will monitor GHG emissions per unit on a gross floor area basis using Key Performance Indicators (“KPI”). We will aim to reduce emissions per unit by 30% by 2030 compared to 2017 emission levels (target setting done in 2021). In addition to the KPIs mentioned above, we aim to reduce GHG emissions by introducing LED lighting (for the properties that do not have them yet), as well as introducing highly efficient energy-saving equipment. The introduction of these measures will be based on the timing of medium to long-term repair plans (12 years) of the engineering report and the more near-term repair/maintenance plan (5 years) of the management company. The repair/maintenance plan is prepared every year and updated each time in consideration of the building status.

Examples of Initiatives
  • Installation of LED lighting

  • Installation of solar panels

  • Installation of lighting sensors

  • Execution of green leases
    (Sharing electricity consumption data with tenants
    and establishing a cooperative system for energy conservation)

  • Energy conservation audits by
    external organizations are conducted
    for two properties every year

  • Posting of energy conservation awareness notices

Water resources

Effective utilization of limited resources such as water are essential for the achievement of a sustainable society. We will also strive to use water efficiently and actively work to reduce consumption.

Objectives and KPIs

With regard to the water consumption in our portfolio of properties, we will monitor water consumption per unit on a gross floor area basis as a KPI, and aim to reduce water consumption per unit by 5% by 2030 compared to 2017 (target setting done in 2021).

Examples of Efforts
  • Introduction of water efficient toilets

  • Introduction of rainwater tanks for irrigation to increase water supply efficiencies

Waste reduction

The Investment Corporation will continue to monitor and appropriately manage waste production, thereby reducing the amount of waste produced from its properties and improving the recycling rate of waste.

Examples of Efforts
  • Posting of waste separation notices

Response to pollution

As a part of the property acquisition process, the Investment Corporation conducts environmental due diligence work (hiring specialists for confirming documentation from the seller, engineering reports and on-site surveys) and makes decisions after conducting risk assessments in consideration of environmental factors such as soil contamination, asbestos, PCBs and other harmful substances.

Biodiversity

Recognizing the importance of ecosystems to the environment, the Investment Corporation is working to protect biodiversity by designating greenery space on the properties it owns.