External certifications, consent with initiatives, and ESG data collection
Policy on acquiring external certifications
JLF actively pursues ESG activities. Based on the belief it is important to obtain objective evaluations and certifications of its activities, JLF aims to obtain certifications.
Participation in the GRESB Real Estate Assessment
Overview of GRESB Assessment
GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major European pension funds who played leading roles in launching Principles for Responsible Investment (PRI).
Currently, 150 Investor Members use GRESB data for their investment decision-making and engagement with investees, and several institutions from Japan including Government Pension Investment Fund (GPIF) utilize GRESB Assessment results. In 2023, 2,084 listed or private real estate companies and funds participated in GRESB Real Estate Assessment.
Please refer to GRESB’s website for more details (https://gresb.com/).
Assessment Result
In the 2024 GRESB Real Estate Assessment, JLF received the highest rank “five Stars” in GRESB Rating, which is based on GRESB Overall Score and its quintile position relative to global participants. It also received a Green Star for the seventh consecutive year by achieving high performance both in “Management Component” that evaluates policies and organizational structure for ESG promotion, and “Performance Component” that assesses environmental performance and tenant engagement of properties owned.
MSCI ESG Ratings Evaluation Results
MSCI ESG Ratings researches, analyzes, and rates the extent to which companies adequately manage ESG-related risks and opportunities, and provides an overall corporate ESG rating on a seven-point scale from "AAA" to "CCC".
JLF has received an "A" rating (As of end of July 2024).
MSCI Japan ESG Select Leaders Index
MSCI Japan ESG Select Leaders Index is composed of companies elected by MSCI from among the constituents of the MSCI Japan IMI Index for excellence in ESG initiatives.
JLF is a constituent of the MSCI Japan ESG Select Leaders Index created and published by MSCI.
DISCLAIMER
The inclusion of JLF in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of JLF by MSCI or any of its affiliates. the MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.
Consent with initiatives
Principles for Responsible Investment (PRI)
MLP, the asset manager of JLF, agreed with the basic philosophy of PRI and became a signatory organization in August 2021 as MLP and in April 2024 as Mitsui & Co. Asset Management Holdings Group (including MLP).
* Principles for Responsible Investment (PRI): Investment principles advocated to the finance industry by then Secretary General of the United Nations in 2006. PRI sets forth the following six principles necessary to fulfill ESG responsibilities through investment activities.
the six Principles for Responsible Investment
- We will incorporate ESG issues into investment analysis and decision-making processes.
- We will be active owners and incorporate ESG issues into our ownership policies and practices.
- We will seek appropriate disclosure on ESG issues by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
Obtaining of SBT Approval
JLF has set targets to reduce GHG emissions by the fiscal year ending March 2031. These targets are science-based targets following the goals of the Paris Agreement that “aims to keep the global average temperature well below 2°C above pre-industrial levels and pursue efforts to limit global warming to 1.5°C.” JLF has received the Science Based Targets (SBT) certification from the international SBT initiative in 2022.
Certification Details
| Item | Coverage | Base year | Target year | Target |
|---|---|---|---|---|
| GHG emissions（scope1+2） | All Properties | FY 2021 | FY 2030 | 42% reduction in total emissions |
| GHG emissions（scope3） | All Properties | FY 2021 | FY 2030 | Calculate and reduce total emissions |
ESG Data
1．Performance results
| Item | Unit | FY2022 | FY2023 | increase/ decrease |
Percentage increase/ decrease |
|---|---|---|---|---|---|
| Total energy consumption | MWh | 64,231 | 62,610 | -1,621 | -2.52% |
| Electricity | MWh | 3,681 | 3,785 | +104 | +2.81% |
| Fuels | MWh | 60,550 | 58,825 | -1,724 | -2.84% |
| Renewable energy self-consumption | MWh | 376 | 369 | -7 | -1.82% |
| Utilization of renewable energy-derived electricity | MWh | 649 | 680 | +31 | +4.84% |
| Energy use intensity (*1) | MWh/㎡ | 0.043 | 0.041 | -0.002 | -4.36% |
| Non-fossil fuel certificate utilization | MWh | 1,740 | 1,501 | -239 | -13.73% |
| Item | Unit | FY2022 | FY2023 | increase/ decrease |
Percentage increase/ decrease |
|---|---|---|---|---|---|
| Total Greenhouse gas emissions (*2) | t-CO2 | 27,958 | 24,983 | -2,975 | -10.64% |
| Total Greenhouse gas emissions intensity (*1) | t-CO2/㎡ | 0.019 | 0.016 | -0.002 | -12.32% |
| scope1 | t-CO2 | 0 | 0 | 0 | - |
| scope2 | t-CO2 | 753 | 623 | -130 | -17.26% |
| Non-fossil fuel certificate utilization(*3) | t-CO2 | 753 | 623 | -130 | -17.26% |
| Net CO2 emissions | t-CO2 | 0 | 0 | 0 | - |
| scope3 | t-CO2 | 27,205 | 24,360 | -2,845 | -10.45% |
| Non-fossil fuel certificate utilization(*3) | t-CO2 | 10 | 1 | -9 | -88.95% |
| Net CO2 emissions | t-CO2 | 27,195 | 24,359 | -2,836 | -10.42% |
| Item | Unit | FY2022 | FY2023 | increase/ decrease |
Percentage increase/ decrease |
|---|---|---|---|---|---|
| Total water usage | ㎥ | 125,986 | 123,787 | -2,199 | -1.74% |
| Public drinking water | ㎥ | 123,430 | 121,708 | -1,722 | -1.39% |
| Recycling water | ㎥ | 2,557 | 2,079 | -477 | -18.66% |
| Water use intensity (*1) | ㎥/㎡ | 0.085 | 0.082 | -0.003 | -3.59% |
| Item | Unit | FY2022 | FY2023 | increase/ decrease |
Percentage increase/ decrease |
|---|---|---|---|---|---|
| Total weight of non-hazardous waste | t | 10,166 | 10,602 | +435 | +4.28% |
| Amount recycled | t | 8,373 | 7,879 | -493 | -5.89% |
| Recycle rate | ％ | 82.4 | 74.3 | -8.1 | -9.83% |
| Item | Unit | FY2022 | FY2023 |
| Number of properties (*4) | Properties | 52 | 53 |
| Floor space (*5) | ㎡ | 1,501,960 | 1,514,734 |
| Percentage of whole portfolio covered (*6) | ％ | 100 | 100 |
- Intensity = Consumption / Total floor area under the Building Standard Law (adjusted by occupancy rate)
- Calculated based on the Act on Promotion of Global Warming Countermeasures (“Global Warming Countermeasures Act”). For the emission factors, the actual emission factors provided for in the Ministerial Order on Calculation of Greenhouse Gas Emissions from Business Activities of Specified Emitters are checked every year.
scope 3 aggregates category 13. - The amount of non-fossil certificates purchased is prioritized for the deduction of scope1 and scope2, and if there is a surplus, it is deducted for scope3. 1,740MWh ,762 t-CO2 of non-fossil certificates purchased in FY2022 and 1,501MWh ,624 t-CO2in FY2023. The national average emission factor is used to convert the amount of non-fossil certificates purchased into t-CO2.
- Include properties acquired or sold within the fiscal year.
- Total gross total floor area under the Building Standard Law after taking co-ownership into account in the subject property.
- Calculated based on the total floor area under the Building Standard Law after taking into account the occupancy rate and taking co-ownership into account.
- The figures for each year are calculated based on co-ownership.
- Figures for FY2023 are calculated based on the information provided in the "Environmental Performance Data Independent Verification Report" and "Greenhouse Gas Emissions Independent Verification Report (Limited Assurance)".
A limited assurance has been obtained from a third-party institution (by Ernst & Young ShinNihon LLC for FY 2022 and Japan Audit and Certification Organization for Environment and Quality for FY 2023) with regard to the following “Environmental information (details)”, which served as the basis for the above “ Performance Results”.
Environmental Performance Data Independent Verification Report
Greenhouse Gas Emissions Independent Verification Report (Limited Assurance)
2．Status of green building certification
Percentage of portfolio with green building certification (as of October 1, 2024)
| Type of certification | Number of properties | total floor area under the Building Standard Law (㎡) | Percentage of portfolio (by area) |
|---|---|---|---|
| Certification for CASBEE for Real Estate | 42 | 1,213,348.74 | 80.6% |
| BELS Certification | 20 | 625,561.85 | 41.5% |
| CASBEE Certification for Buildings (New Construction) | 1 | 41,968.06 | 2.8% |
| Percentage of portfolio with green building certification | 46 | 1,320,588.72 | 87.7% |
- Some properties have multiple certifications, so the total of the figures for each certification does not equal the figure for the "Percentage of portfolio with green building certification".
Percentage of the top two ranks of green building certification (as of October 1, 2024)
| Type of certification | Number of properties | total floor area under the Building Standard Law (㎡) | Percentage of portfolio (by area) |
|---|---|---|---|
| Certification for CASBEE for Real Estate | 39 | 1,143,056.75 | 75.9% |
| BELS Certification | 20 | 625,561.85 | 41.5% |
| CASBEE Certification for Buildings (New Construction) | 1 | 41,968.06 | 2.8% |
| Percentage of portfolio with green building certification | 43 | 1,250,296.73 | 83.0% |
- Some properties have multiple certifications, so the total of the figures for each certification does not equal the figure for the "Percentage of portfolio with green building certification".
- The top two ranks are A rank to S rank in Certification for CASBEE for Real Estate, 4 stars to 5 stars in BELS certification, and A rank to S rank in CASBEE Certification for Buildings (New Construction).
Properties with Certification for CASBEE for Real Estate
| Certification | Property |
|---|---|
| S | M-11 Yachiyo Logistics Center |
| M-37 Fujisawa Logistics Center | |
| T-2 Osaka Fukuzaki Logistics Center | |
| A | M-3 Hiratsuka Logistics Center |
| M-4 ShinKiba Logistics Center | |
| M-5 Urayasu Chidori Logistics Center | |
| M-6 Funabashi Nishiura Logistics Center | |
| M-9 Narashino Logistics Center | |
| M-12 Yokohama Fukuura Logistics Center | |
| M-13 Yachiyo Logistics Center II | |
| M-16 Shinonome Logistics Center | |
| M-17 Narashino Logistics Center II | |
| M-18 Ichikawa Logistics Center II | |
| M-19 Souka Logistics Center | |
| M-21 Kashiwa Logistics Center | |
| M-22 Musashimurayama Logistics Center | |
| M-23 Kashiwa Logistics Center II | |
| M-24 Shin-Koyasu Logistics Center | |
| M-25 Misato Logistics Center | |
| M-26 Sagamihara Logistics Center | |
| M-27 Chiba Kita Logistics Center | |
| M-28 Chiba Kita Logistics Center II | |
| M-29 Urayasu Chidori Logistics Center III | |
| M-30 Zama Logistics Center | |
| M-31 Shinkiba Logistics Center II | |
| M-32 Yokohama Machida Logistics Center | |
| M-34 Shiroi Logistics Center | |
| M-35 Toda Logistics Center | |
| M-38 Hanyu Logistics Center | |
| M-39 Saitama Kisai Logistics Center | |
| M-40 Kazo Logistics Center | |
| M-42 Itabashi Logistics Center | |
| T-3 Kiyosu Logistics Center | |
| T-7 Fukuoka Hakozaki Futo Logistics Center | |
| T-9 Fukuoka Kashiihama Logistics Center | |
| T-10 Kasugai Logistics Center | |
| T-11 Takatsuki Logistics Center | |
| O-1 Maebashi Logistics Center | |
| O-6 Ishikari Logistics Center No. 2 and No.7 | |
| B+ | M-20 Tatsumi Logistics Center |
| M-36 Ichikawa Logistics Center III | |
| T-5 Komaki Logistics Center | |
| O-6 Ishikari Logistics Center No. 10 |
Properties with BELS Certification
| Certification | Property |
|---|---|
| Five Star 『ZEB』 | M-41 Kuki Logistics Center |
| Five Star ZEB Ready |
M-2 Urayasu Logistics Center |
| M-6 Funabashi Nishiura Logistics Center | |
| M-11 Yachiyo Logistics Center | |
| M-13 Yachiyo Logistics Center II | |
| M-17 Narashino Logistics Center II | |
| M-19 Souka Logistics Center | |
| M-21 Kashiwa Logistics Center | |
| M-22 Musashimurayama Logistics Center | |
| M-26 Sagamihara Logistics Center | |
| M-27 Chiba-kita Logistics Center | |
| M-30 Zama Logistics Center | |
| M-34 Shiroi Logistics Center | |
| M-37 Fujisawa Logistics Center | |
| T-3 Kiyosu Logistics Center | |
| T-10 Kasugai Logistics Center | |
| T-12 Aisai Logistics Center | |
| Five Star | M-15 Ichikawa Logistics Center |
| M-42 Itabashi Logistics Center | |
| T-7 Fukuoka Hakozaki Futo Logistics Center |
Properties with CASBEE Certification for Buildings (New Construction)
| Certification | Property |
|---|---|
| A | M-2 Urayasu Logistics Center |
3．Status of asset manager employees
| Item | FY2023 |
|---|---|
| Total executives and employees | 35 persons |
| Percentage of full-time employees | 100% |
| Male | 26 persons |
| Female | 9 persons |
| Percentage of female executives and employees | 26% |
| Average Number of Years of Attendance | 6.2 years |
| Number of retirees | 3 person |
| Percentage of retirees | 9% |
| Number of managers | 5 persons |
| Number of male managers | 5 persons |
| Number of female managers | No person |
| Percentage of employees with disabilities | 0% |
| Percentage of foreign employees | 0% |
| of those who have lived abroad | 17.1% |
| Response rate to health examination | 100% |
| Paid leave acquisition rate | 81.3% |