Society

ESG Initiatives

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

1.　Cooperation with stakeholders

I.　ESG efforts with tenants and the implementation of a tenant satisfaction survey

(1) ESG efforts with tenants and the conclusion of a green lease

ESG efforts with tenants and the conclusion of a green lease. JLF cooperates with tenants on its environmental efforts. In particular, JLF shares information on energy and water consumption with tenants and calls for energy saving, water saving, sorting and reduction of waste, and idling stop. In addition, JLF encourages tenant companies to raise their environmental awareness by working on the visualization of the amount of power generated by photovoltaic panels by setting up a dedicated tablet at a logistics facility in some properties it holds (Yokohama Machida).
JLF has also concluded a green lease with some tenants, which stipulates the promotion of environmental consciousness for both the building owner and tenants.

Percentage of Green leases implemented (as of March 31, 2021)

Number of tenants	Leasable area（㎡）	Percentage of portfolio (by area)
18	339,294.06	26.1%

Percentage of ESG training sessions held for tenants (as of March 31, 2021)

Number of tenants	Leasable area（㎡）	Percentage of portfolio (by area)
73	1,058,746.22	81.3%

(2) Implementation of a tenant satisfaction survey

JLF implements a tenant satisfaction survey to obtain the requests and opinions of tenants. JLF shares survey results with the property manager and the building management company, which leads to improvements in building specifications, equipment and services.

(3) Consideration for the safety, amenity and health of users

JLF checks the compliance of properties when it acquires them and the compliance and safety of properties after acquiring them by regularly obtaining an ER to enable users to be able to safely use the properties.
In addition, to create a pleasant working environment for the users, JLF considers the health of the users and enhances amenities by setting up a break room and a kiosk at some properties and regularly assessing the air-conditioning.

II.　ESG efforts with property managers

When JLF implements ESG efforts for its properties, JLF asks property managers for cooperation. JLF also sets requirements for corporate ethics, human rights and industrial health and safety for the property managers and monitors whether those requirements are practiced.

Additionally, to enhance ties with third-party property managers, JLF holds training sessions with these property management companies on sustainability and ESG. JLF also shares with them the results and targets on energy consumption for the properties they manage as part of its efforts to engage their cooperation in achieving these targets.

Percentage of ESG training sessions held for property managers (as of March 31, 2021)

Number of properties	Percentage of portfolio	Leasable area（㎡）	Percentage of portfolio (by area)
50	100.0%	1,301,723.89	100.0%

Percentage of property managers receiving energy consumption reports (FY 2019)

Number of properties	Percentage of portfolio	Leasable area（㎡）	Percentage of portfolio (by area)
50	100.0%	1,389,242.41	100.0%

III.　Efforts for contribution to the local community

(1) Connection with the local community

JLF works to vitalize communication with tenants and local residents through cleaning activities in cooperation with the property managers, the building management companies and tenants.

(2) Contribution to the safety of the local community

JLF works to contribute to the safety of tenants and local residents by installing security cameras that are able to monitor areas surrounding the property, on vending machines at the facility for some properties.

IV. Initiatives of the asset management company for the education of officers and employees

Regarding human resources as the largest asset, the asset management company makes efforts to create a healthy and pleasant working environment so that individual officers and employees will be able to fully exercise their abilities and advances efforts for the cultivation of human resources through professional education, training and assistance.
In addition, to implement these guidelines, the asset management company will make efforts to raise the awareness of the officers and employees by continuously implementing educational and enlightenment activities with consideration for the environment and society.

(1) Implementation of officer and employee satisfaction survey

JLF's asset manager conducts an employee satisfaction survey on an annual basis for all employees (both full-time and part-time employees alike).
The asset manager fleshes out the thoughts of both officers and employees on the substance of their work and the workplace environment (health and welfare) through the survey and the results are leveraged to generate ideas on how best to encourage officers and employees to exhibit their abilities. Furthermore, social activities among employees are organized to facilitate the realization of these ideas. Feedback on the survey results and idea generation is also given annually by the CEO.

Results of the latest employee satisfaction survey

(2) Support for acquiring qualifications and receiving training

■Support for acquiring qualifications
Qualification acquisition assistance program is available to all employees and officers (full-time and part-time employees alike) to support those who are willing to brush up their skills.

Overview and Track Record of our Qualification Acquisition Assistance Program

■Implementation of In-house Training
JLF’s asset manager regularly conducts training for compliance and employee development, targeting all officers and employees (both full-time and part-time employees alike).

• Based on the sponsor Mitsui & Co., Ltd.’s employee career development program, all officers and employees (both full-time and part-time employees alike) may participate in grade-specific training, selective training and interactive programs engaging officers and employees together, among others, for human resource development.
• Quarterly compliance training sessions are conducted for all officers and employees (both full-time and part-time employees alike).
  

  Primary topics include:
  information management; stakeholder transactions; understanding of and dealing with financial regulations; antisocial forces; insider trading regulations; legal bookkeeping and legal document delivery; major issues noted during securities inspections of financial instruments business operators, etc.

• Training on the economic environment and real estate market is conducted regularly, bringing in outside lecturers, creating an environment where the latest information on market trends and other knowledge required for real estate investment management can be acquired.

(3) Appropriate employee evaluation and feedback

JLF has a goal-setting and evaluation feedback structure that is transparent and facilitates communication between supervisors and their employees. Every year, all employees (both full-time and part-time employees alike) participate in initial (goal-setting), interim (progress check and advice) and final (feedback on evaluation results) evaluation interviews.

(4) Consideration for work-life balance

The asset management company strives to enhance systems and support with consideration for work-life balance, including the enhancement of the childcare leave and the nursing care leave systems and the flexible working hour system, enabling each office and employee to be able to continue working energetically according to their lifestyles.

• Support for achieving balance between work and raising a family

  All officers and employees (Both full-time and part-time employees alike) are eligible for the family leave program, which has been more fulfilling than legal requirements since FY 2014. The work environment allows any officers and employees, regardless of gender, to actively participate in family responsibilities as part of a program that promotes achieving a work-life balance.

  • Childbirth attendance leave system: Able to take up to three days.
  • Salary during leave before and after childbirth and childcare leave: Salary will be paid for up to eight weeks after the commencement of childcare leave, during the leave, before and after childbirth.
• Special paid leave system

  The asset management company has introduced a special paid leave system to increase the motivation of officers and employees and fulfill their daily needs.

  • Anniversary (one day a year)
  • Volunteering (five days a year)
  • Recognition of many years of service (10 years, 15 years and 20 years) and the payment of a special bonus
  • Long-term injury and disease holiday (maximum 40 days): Paid leave that lost effect can be accumulated and taken as leave during long-term injury or disease
• Flexible working hour system

  All officers and employees (Both full-time and part-time employees alike) are eligible for flexible work-hour and hourly paid leave programs. These programs are designed to help officers and employees achieve harmony between work and life in a way that suits their individual lifestyles. JLF has a work environment where individuals’ work volumes are assessed and a reasonable working style is achieved in each department. Thus, there was no need to set up no-overtime days; officers and employees can adjust their workloads as necessary and complete their work before the workday is over.

(5) Promoting health and improving benefits

The asset management company strives to promote health and improve benefits for all officers and employees (Both full-time and part-time employees alike) through the following initiatives:
All officers and employees receive support to maintain good health and safety in the form of health check-ups and partial financial aid for health examinations.
As for benefits, a corporate defined benefit pension fund has been introduced in addition to a complete social insurance system.

items	FY2017	FY2018	FY2019
Number of officers and employees	28	27	26
(Number of directly employed officers and employees)	24	23	23
Average years of service	6	6	8
Utilization rate of paid leave	78%	74%	76%
Consultation rate of medical examination	100%	100%	100%

*As of March 31, 2021, there are no part-time employees employed at the asset management company.

(6) Employee hotline

In the event an employee falls victim to harassment or some other problem, either inside or outside the company, he/she can notify and consult an assigned attorney anonymously via a hotline.

V.　Disaster response and safety of buildings

The asset management company works to maintain the safety of buildings in peacetime and promotes efforts to prevent damage from expanding and quickly implements recovery when a disaster occurs.

(1) Diagnosis of building safety and earthquake risk

JLF and the asset management company diagnose the compliance and safety of buildings and the earthquake risk at the time of acquiring properties by obtaining an engineering report. In addition, the asset management company is working to maintain the safety of buildings held by regularly obtaining an engineering report on an ongoing basis.

(2) Efforts for resilience against disasters

The asset management company has established the internal structure necessary to prevent damages from expanding, secure business continuation and quickly recover to a normal state of work when a disaster occurs. In addition, to promptly verify the condition of assets held when a disaster occurs, the asset management company has developed a communication and verification system involving the property manager.
On top of that, the asset management company has installed on-site power generators that can used during a power outage and toilets that are available for use even during a disaster by using private power generation and well water at some properties.