Guidelines for ESG Initiatives
Mitsui & Co., Logistics Partners Ltd., an asset manager of JLF has established "Guidelines for ESG Initiatives ".
1. Basic Stance
Mitsui & Co., Logistics Partners Ltd. (hereinafter referred to as the “Asset Manager”), as the asset manager for Japan Logistics Fund, Inc., recognizes the importance of environmental, social and governance (ESG) aspects in real estate investment management business.
As its initiatives for environment and society, the Asset Manager shall consider reducing the environmental burden and building trust with various stakeholders in and outside the company, and aims at realizing a sustainable society and contributing to society through the conduct of investment management operations. Moreover, in its corporate governance initiatives, the Asset Manager shall ensure legal compliance, establish risk management systems and strive for timely and appropriate information disclosure to investors and other relevant persons.
The Asset Manager has established a “Sustainability Policy” (hereinafter sometimes referred to as the “Policy”) and shall promote ESG initiatives which shall be led by “Sustainability Promotion Liaison Meeting.” In addition, it has established “Sustainability Goals” and shall work to implement various measures.
2. Sustainability Policy
The Asset Manager has established a “Sustainability Policy,” as described below, with an eye to conducting a real estate investment management business that considers the reduction of the environmental burden, safety and security and the improvement of comfort, as well as a variety of different types of coordination and cooperation with various stakeholders.
I. Contribute to sustainable environment
To achieve the social responsibility of improving environmental performance of the managed properties, we shall contribute to environmental sustainability by continuously reducing the environmental impact of the managed properties and mitigating environmental burden.
(i) Improve efficiency in energy use and respond to climate change
We shall promote efficient use of energy in real estate investment management and work to reduce carbon emissions by means such as the introduction of technology and facilities that contribute to energy saving and creation and switchover to electricity with lower carbon dioxide emission factor. In addition, it shall strive to respond to climate change through carbon offsetting and so forth.
(ii) Preserve water environment
We shall work to preserve water environment by conserving water and introducing water-saving equipment, among other measures.
(iii) Promote resource saving and waste disposal reduction
We shall work to implement initiatives for resource saving and waste disposal reduction through the three Rs (reduce, reuse and recycle).
(iv) Consider biodiversity
Through landscape management and so forth that give consideration to biodiversity, we strive to coexist with the natural environment and contribute to building a society in harmony with nature.
(v) Consider environmental attributes of building materials
In executing repair work and add-value renovations of properties, we shall consider using environmentally friendly building materials.
II. Create a pleasant and healthy work environment and endeavor to educate officers and employees
In accordance with the Act on Investment Trusts and Investment Corporations, investment corporations may not hire employees. Their investment management operations are performed practically by officers and employees of asset managers. Recognizing that human resources are its greatest assets, the Asset Manager shall work to create a healthy and pleasant work environment where each officer and employee can maximize his/her potential and shall implement initiatives for human resources development, including the provision of support for professional education and training and the establishment of an evaluation and feedback system.
In the implementation of this Policy, the Asset Manager shall also endeavor to improve social and environmental awareness among its officers and employees by continuously conducting educational and familiarization activities.
III. Cooperate and coordinate multimodally with a wide range of stakeholders
The Asset Manager shall stress dialogues with tenants, property managers and other business partners, as well as local communities and other external stakeholders, work to build trust relationships with them and strive to promote ESG initiatives.
The Asset Manager shall consider health, safety and comfort of the tenants occupying the properties, practice disaster prevention drills based on public and private partnerships and promote initiatives based on a business continuity plan (BCP).
IV. Ensure legal compliance and establish corporate governance and risk management systems
(i) Ensure legal compliance
Recognizing legal compliance as one of the most important management initiatives, Directors of the Asset Manager shall lead efforts to promote legal compliance in the execution of business operations and ensure that officers and employees are fully aware of the importance of legal compliance. In addition, all officers and employees shall not only comply with laws, regulations and rules but endeavor to uphold high moral values and to sincerely and appropriately carry out their duties.
(ii) Establish corporate governance and risk management systems
The Asset Manager has established internal systems for the development of regulations, rules, procedures and manuals to be observed in its business conduct and the enhancement of corporate governance, in its effort to improve transparency in decision-making and avoiding conflicts of interest and to manage and mitigate various risks associated with the execution of business operations.
V. Disclose information to investors and other relevant persons and utilize environmental certifications and evaluations
The Asset Manager shall strive to proactively disclose information pertaining to the Policy and the status of implementation of initiatives based on the Policy to investors and other relevant persons. In addition, it shall explore the utilization of environmental certifications and evaluations in order to materialize the outcome of initiatives based on the Policy.
VI. Review the Policy
To ensure the effectiveness of the Policy, the Asset Manager shall review the Policy, considering social situations, changes in people’s awareness, advances in technology and other circumstances.
3. Sustainability Promotion Structure
I. Sustainability Promotion Liaison Meeting
Sustainability Promotion Liaison Meeting shall pursue ESG initiatives in accordance with the Sustainability Policy.
Sustainability Promotion Liaison Meeting is attended by the President, General Manager of each department and others, and General Manager of Corporate Planning and Finance Department manages Sustainability Goals. Regular meetings are held once every three months, in general, to review the Sustainability Policy and Goals and various initiatives pertaining to sustainability considering social situations and the status of investment by the Investment Corporation.
Sustainability Promotion Liaison Meeting has established a framework for monitoring the status of implementation of ESG initiatives on an annual basis and has organized a structure to implement measures whenever necessary for activities which require improvement.
4. Sustainability Goals
Recognizing energy saving, the reduction of greenhouse gas emissions, etc. as important environmental concerns in asset management operations, the Asset Manager has established individual policies, as described below, and shall work to reduce environmental burden.
The Asset Manager has established a Sustainability Promotion Liaison Meeting to promote sustainability initiatives and has set energy consumption reduction targets (mid- to long-term goals) and matters for goal management, as described below.
I. Establish targets for reducing energy consumption and water usage (mid- to long-term goals)
In accordance with the Act on Rationalizing Energy Use (hereinafter referred to as the “Act”), the Asset Manager established a target for the next five years of reducing energy consumption intensity (Note) compliant with the Act and greenhouse gas (GHG) emission intensity (Note) by an average of no less than 1% annually, in its entire portfolio.
In addition, it aims at bringing water usage intensity down year on year on a fiscal year basis.
II. Goal Management
At Sustainability Promotion Liaison Meeting, the Asset Manager shall manage the progress made with the mid- to long-term goals and clarify the cause of increase/decrease in usage.