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
I. 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, 140 Investor Members (with more than $47 trillion in assets under management) 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 2021, 1,520 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/).
Please refer to GRESB website for more details (https://gresb.com/).
II. Assessment Result
In the 2021 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 fourth 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.
JLF also received the highest “A Level” for the GRESB Public Disclosure, which assess the width of ESG disclosure.
Consent with initiatives
Principles for Responsible Investment (PRI)
Mitsui & Co., Logistics Partners, Ltd, the asset manager of JLF, agrees with the basic philosophy of PRI and became a ratifying institution in August 2021.
* 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.
the Principles for Financial Action for the 21st century (the PFA 21)
Mitsui & Co., Logistics Partners, Ltd, the asset manager of JLF, agrees with the basic philosophy of the PFA 21 and became a ratifying institution in July 2021.
* the PFA 21: The PFA21 has been established by drafting committee with participation of various financial institutions in October 2011 as the action guidelines of financial institutions who seek to fulfill their roles and responsibilities in shaping a sustainable society.
The Principles
- Recognize the responsibilities and roles that one should fulfill, and promote the best efforts toward the formation of a sustainable society through each business, taking into account the perspective of a preventive approach.
- We will contribute to the formation of a sustainable global society through the development and provision of financial products and services that contribute to the development of "industries that contribute to the formation of a sustainable society" represented by the environmental industry and the improvement of competitiveness.
- From the perspective of regional promotion and sustainability improvement, we will support the environmental consideration of small and medium-sized enterprises, the improvement of citizens' environmental awareness, disaster preparedness and community activities.
- Recognizing that it is important for diverse stakeholders to collaborate in the formation of a sustainable society, we will endeavor not only to participate in such efforts but also to take a proactive role.
- In addition to complying with environment-related laws and regulations, we will actively work to reduce the environmental burden such as resource saving and energy saving, and strive to reach out to our suppliers.
- Recognizing that activities to enhance the sustainability of society are management issues, we will endeavor to disclose information on our efforts.
- In order to actively implement the above efforts in daily work, we will raise the awareness of our executives and employees regarding environmental and social issues.
ESG Data
1．Performance results
| item | unit | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|
| Total energy consumption | GJ | 301,124 | 282,169 | 255,288 |
| Fuels | GJ | 22,590 | 21,872 | 24,312 |
| Electricity | GJ | 278,535 | 260,297 | 230,976 |
| Energy use intensity (*1) | GJ/㎡ | 0.2286 | 0.2062 | 0.1958 |
| Total Greenhouse gas emissions (*2) | t-CO2 | 37,865 | 35,807 | 29,872 |
| Total Greenhouse gas emissions intensity (*1) | t-CO2/㎡ | 0.0287 | 0.0262 | 0.0229 |
| Total water usage | ㎡ | 172,909 | 163,798 | 139,946 |
| Public drinking water | ㎡ | 172,432 | 163,266 | 138,458 |
| recycling water | ㎡ | 476 | 531 | 1,488 |
| Water use intensity (*1) | ㎥/㎡ | 0.1313 | 0.1197 | 0.1074 |
| Data | ||||
| Number of properties (*3) | 48 | 50 | 51 | |
| Floor area (*4) | ㎡ | 1,317,079 | 1,368,353 | 1,303,538 |
| Percentage of whole portfolio covered (*5) | % | 100 | 100 | 100 |
| Total weight of non-hazardous waste | t | 54 | 49 | 6,468 |
| Amount recycled | t | 6 | 3 | 3,968 |
| Recycle rate | ％ | 10 | 6 | 61 |
| Percentage of whole portfolio covered (*5) | ％ | 10 | 10 | 76 |
- Intensity = Consumption / Floor area
- 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 is excluded.
- Include properties acquired or sold within the fiscal year.
- Figures are Total floor area of the properties.
- Calculated based on floor area. Non-hazardous waste is calculated based on the number of properties.
- A limited assurance has been obtained from a third-party institution (Ernst & Young ShinNihon LLC) with regard to the following “Environmental information (details)”, which served as the basis for the above “Environmental Performance Results”.
Environmental information (details) PDF
2．Status of green building certification
Percentage of portfolio with green building certification
| Type of certification | Number of properties | Leasable area (㎡) |
Percentage of portfolio (by area) |
|---|---|---|---|
| DBJ Green Building certification |
15 | 572,847 | 44.0% |
| BELS | 3 | 153,067 | 11.8% |
Certification acquisition (%) as of July 31, 2021
List of properties that have obtained DBJ Green Building certification
| Certification | Year | Property |
|---|---|---|
| 4 Stars | 2018 | M-6 Funabashi Nishiura Logistics Center |
| M-12 Yokohama Fukuura Logistics Center | ||
| M-13 Yachiyo Logistics Center Ⅱ | ||
| M-19 Souka Logistics Center | ||
| M-26 Sagamihara Logistics Center | ||
| M-31 ShinKiba Logistics Center Ⅱ | ||
| M-32 Yokohama Machida Logistics Center | ||
| 2019 | M-11 Yachiyo Logistics Center | |
| M-24 Shin-Koyasu Logistics Center | ||
| 3 Stars | 2018 | M-5 Urayasu Chidori Logistics Center |
| M-22 Musashimurayama Logistics Center | ||
| 2019 | M-28 Chiba Kita Logistics Center Ⅱ | |
| M-25 Misato Logistics Center | ||
| M-39 Saitama Kisai Logistics Center | ||
| M-40 Kazo Logistics Center |
List of properties that have obtained BELS certification
| Certification | Year | Property |
|---|---|---|
| 5 stars | 2020 | M-11 Yachiyo Logistics Center |
| 2021 | M-19 Souka Logistics Center | |
| M-22 Musashimurayama Logistics Center |
3. Status of asset manager employees
| items | FY2017 | FY2018 | FY2019 | FY2020 |
|---|---|---|---|---|
| Number of officers and employees | 28 | 27 | 26 | 31 |
| (Number of directly employed officers and employees) | 24 | 23 | 23 | 28 |
| Average years of service | 6 | 6 | 8 | 6 |
| Utilization rate of paid leave | 78% | 74% | 76% | 41% |
| Consultation rate of medical examination | 100% | 100% | 100% | 100% |