Environmental

Environmental Initiatives

Climate Change

The impact of climate change on the environment, society, peoples’ lifestyles and corporate activities has intensified in recent years. As frameworks to reduce greenhouse gases, such as the 2015 Paris Agreement, are adopted at an increasing rate, not only nations and governments, but also private sectors are expected to fulfill their responsibilities to society.
Such being the case, JLF strives to contribute to the transition to a low-carbon society through initiatives including greenhouse gas reductions, while making efforts to adapt to climate hazards and natural disasters.

Targets (KPI)
・Over 5 years, reduce an annual average of 1% or more of legally compliant energy consumption and greenhouse gas intensities*.
・Reduce water consumption intensity compared to the previous fiscal year.

Intensity is calculated by dividing total annual consumption volume by gross leasable area (㎡)

1．Performance results

item	unit	FY2017	FY2018	FY2019
Total energy consumption	GJ	319,382	302,052	265,156
Fuels	GJ	40,745	23,859	5,129
Electricity	GJ	278,637	278,193	260,027
Energy use intensity (*1)	GJ/㎡	0.2519	0.2334	0.1940
Total Greenhouse gas emissions (*2)	t-CO2	40,580	37,536	34,331
Total Greenhouse gas emissions intensity (*1)	t-CO2/㎡	0.0320	0.0290	0.0251
Total water usage	㎡	163,865	172,909	163,798
Public drinking water	㎡	163,378	172,432	163,266
recycling water	㎡	487	476	531
Water use intensity (*1)	㎥/㎡	0.1293	0.1336	0.1198
Total weight of non-hazardous waste (*3)	t	49	54	49
Data
Number of properties (*4)		46	48	50
Floor area (*5)	㎡	1,267,744	1,293,966	1,367,058
Percentage of whole portfolio covered (*6)	%	100	100	100

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.
The waste volume data available to us are for the common area in our Managed Assets.
Include properties acquired or sold within the fiscal year.
Figures are Total rentable are of the properties.
Calculated based on floor area.

2．Examples of initiatives

Please refer to the latest presentation material for resent examples of initiatives.

I.　Energy saving

Replace existing lighting equipment with LED lightings to save energy and extend lighting lifetimes. When replacing lighting equipment, JLF shares the estimates of expected energy savings with its tenants in advance. In some cases, an agreement is executed where JLF receives a portion of the savings in electricity charges as rental income.

(1) Installation of a variety of LED lighting equipment

（As of January 31, 2021）

Area converted to LED lightings	Annual savings
960,070㎡（65.2% of the portfolio）	126,389kWh

Office
Warehouse
Warehouse

(2) Renewal of air-conditioning equipment

We endeavor to save energy by upgrading to the latest, energy-efficient HVAC systems.
Track record (February 1, 2020 through January 31, 2021)

Units upgrade
20

II.　Energy creation

(1) Installation of photovoltaic panels

Rooftop solar panels are installed to generate power from renewable energy.
(Results for FY 2019)

Solar installations	Annual power generation
4 properties	1,459,399kWh

III.　Water saving

Environmental Understanding and Basic Policy Related to Water Resources
JLF understands water resources and their sustainable use to be an essential element in JLF's business activities and their sustainability. In this context, JLF strives to minimize water use across its business activities by improving efficiency and reducing consumption.

(1) Installation of water saving toilet facilities

JLF is committed to water conservation by upgrading to modern toilets and sinks with improved water efficiency.

②(2) Introduction of water-saving equipment

IV. Biodiversity

(1) Soil contamination prevention and soil contamination countermeasures

JLF conducts soil contamination surveys when acquiring properties.
Furthermore, on joint developments pursued with partners, JLF ensures that countermeasures have been implemented on land with issues such as soil contamination prior to further development.
For example, in a joint development project with a partner pursued in the Tokyo Metropolitan Area, the plot to be developed was formerly the site for a manufacturing plant, and chemical substances presumed to have been used at the plant were detected in the soil. Although the impact on human health would have been negligible, the level detected exceeded legally permissible levels. JLF confirmed that the landowner removed the chemical substances and land remediation was approved by a third party and the local municipality before moving forward with the development.
Soil contamination would have remained If the land were left idle, but JLF's pursuit of the property development together with its partner contributed to environmental improvement in the locality.

(2) Facility greening (rooftop greening, wall greening, setup of greenbelt, protection of native species)

By promoting the greenification of logistics facilities (on rooftops and exterior walls) and actively establishing green zones, JLF helps suppress temperature rise caused by heat island phenomena and improve visual aesthetics in the communities. JLF also contributes to biodiversity conservation by planting indigenous plant species.

Other Environmental Initiatives

Damage from Natural Disasters

JLF implements a variety of countermeasures to prepare against natural disasters.

・Flooding countermeasures
As a countermeasure against flooding during typhoons or sudden heavy downpours, JLF raises the land upon which development or redevelopment properties are to stand.
Additionally, JLF prevents flooding by raising the level of foundations for high-voltage stepdown transformer cubicles to help avoid electrical system failures in its logistics centers.

・Earthquake countermeasures
We obtain a property's PML before acquisition and quantitatively analyze the risk of building collapse due to seismic activity.

・Countermeasures against soil liquefaction and tsunamis
Before acquiring a property, JLF makes acquisition decisions by referring to sources such as soil liquefaction forecasting maps publicized by government bodies to assess the risk of soil liquefaction and tsunamis during an earthquake.

Waste Management

We endeavor to minimize waste from properties in the portfolio through monitoring of waste volumes and appropriate management.

Building Versatility

JLF owns highly versatile facilities, with space that can be converted to office or manufacturing applications.

Urban Development (Enhancing local economic activity through property development and redevelopment)

JLF conducts redevelopment (OBR) of portfolio assets and also implements joint development efforts with partners. Property developments and redevelopment projects resulting in modern, large-scale logistics properties contribute to revitalization of local economy by creating jobs in the vicinities.
Retail shops located in some portfolio properties are open to the public and therefore contribute to improved everyday convenience in the areas that lack retail stores.
Additionally, JLF recruits mobile phone companies to install their antennas on portfolio properties, which has contributed to improved cellular coverage in the community.

Technical Evaluation of Environmental and Social Risks at Portfolio Assets

JLF regularly conducts technical evaluations of environmental and social risks of portfolio assets. Aside from conducting risk management, JLF also evaluates environmental initiatives.
More specifically, based on a building condition evaluation report acquired once every 5 years, JLF drafts maintenance plans aimed at facilitating the long-term use of the building. Additionally, a portfolio PML is calculated every fiscal period, and the potential impact in the event of an earthquake is evaluated.
As part of the appraisal of portfolio assets that takes place each fiscal period, property access and public transportation availability are also reviewed in calculating an appraisal value.