Environmental, Social and Governance Initiatives
Environmental Initiatives
Setting Targets (KPI) for Energy Consumption and Greenhouse Gas (GHG) Emissions
Hulic Reit, Inc. (Hulic Reit) and Hulic REIT Management Co., Ltd. (Hulic REIT Management) are working to reduce the carbon footprint for the entire portfolio to promote energy conservation and measures for prevention of climate change.
Environmental measures are promoted through investment and management operations by implementing a PDCA cycle of regular performance tracking, analysis and execution of measures to achieve reduction targets (KPI) for energy consumption and GHG emissions. Specifically, activities to raise awareness among tenants, utilization of renewable energy, introduction of energy-efficient facilities and equipment, and other efforts are made to reduce GHG emissions.
We have set targets (KPI) for and monitor the performance of the following key indicators.
(1)GHG Emissions
Target (KPI)
- The target (KPI) is reduction of GHG emissions intensity for the entire portfolio by 42% (original target (KPI):30%) relative to the actual figures for 2018 by the end of 2030.
- Net-zero by 2050(Note)
- The target (KPI) is reduction of total GHG emissions in Scope 1 and Scope 2 by 42% relative to the actual figures for 2022 by the end of 2030.
- The target (KPI) is reduction of total GHG emissions in Scope 3 by 25% relative to the actual figures for 2022 by the end of 2030.
- Net-zero by 2050(Note)
- Excludes properties for which we do not have energy management authority including master lease properties, residential parts of properties and non-managerial co-ownership properties, etc.
Actual Figures (Entire Portfolio)(Note 1)(Note 2)(Note 3)(Note 4)(Based on target before revision (KPI))
- GHG emissions
- GHG emissions intensity
- The following is the scope of subject properties for each year in the calculation of actual figures. The same applies hereinafter.
・Subject properties are those held throughout the year (limited to properties for which data is available).
・For the properties that Hulic Reit holds under co-ownership, calculations are based on the figures equivalent to the co-ownership interest held by Hulic Reit at the beginning of each year.
・The following properties are not included in the aggregation in 2023 as they were acquired or sold during the period. The reason for not including them in the aggregation is to facilitate the comparison of the status of reduction of GHG emissions from fiscal 2018, and the impact of the exclusion of the actual figures for the following properties from the 2023 actual figures is minimal.
Properties acquired during the period:Hulic Oji Building, Hulic Kobunacho Building, Hulic Komagome Building, Charm Premier
Den-en-Chofu, Sonare Shakujii, Hulic Kaminarimon Building
Properties sold during the period: Hulic Ginza 7 Chome Building - For the actual figures in 2023 (✓), limited assurance has been received from Ernst & Young ShinNihon LLC.
- Due to the additional acquisition of the past data, etc., we have revised the GHG emission from 2018. Going forward, the past actual figures may be retroactively revised due to the revision of the scope of aggregation.
- GHG emissions are calculated by multiplying energy consumption by the factor, etc. in accordance with the Ministry of the Environment’s “GHG Emissions Accounting, Reporting and Disclosure System.”
(2)Energy Consumption
Target (KPI)
- The target (KPI) is reduction of energy consumption intensity for the entire portfolio by 30% (original target (KPI):25%) relative to the actual figures for 2018 by the end of 2030.
- The basic target (KPI) is reduction of average energy consumption intensity over the past five years for the entire portfolio by 1% or more (2022 as a benchmark(Note)).
- If less than five years, it shall be the average of the applicable period.
Actual Figures (Entire Portfolio)(Note 1)(Note 2)(Note 3)(Based on target before revision (KPI))
- Energy consumption
- Energy use intensity
- The following is the scope of subject properties for each year in the calculation of actual figures. The same applies hereinafter.
・Subject properties are those held throughout the year (limited to properties for which data is available).
・For the properties that Hulic Reit holds under co-ownership, calculations are based on the figures equivalent to the co-ownership interest held by Hulic Reit at the beginning of each year.
・The following properties are not included in the aggregation in 2023 as they were acquired or sold during the period. The reason for not including them in the aggregation is to facilitate the comparison of the status of reduction of energy consumption from fiscal 2018, and the impact of the exclusion of the actual figures for the following properties from the 2023 actual figures is minimal.
Properties acquired during the period:Hulic Oji Building, Hulic Kobunacho Building, Hulic Komagome Building, Charm Premier
Den-en-Chofu, Sonare Shakujii, Hulic Kaminarimon Building
Properties sold during the period: Hulic Ginza 7 Chome Building - For the actual figures in 2023 (✓), limited assurance has been received from Ernst & Young ShinNihon LLC.
- Due to the additional acquisition of the past data, etc., we have revised the energy consumption from 2018. Going forward, the past actual figures may be retroactively revised due to the revision of the scope of aggregation.
Setting targets (KPI) for the percentage of properties that will have acquired green building certification
Hulic Reit and Hulic REIT Management are promoting proactive acquisition of third-party green building certification (Note) with the intention of raising the reliability and objectivity of the achievements of initiatives for reducing environmental footprint and, at the same time, enhancing building value over the medium to long term.
- One in which a third party certifies the initiatives, performance, etc. of a building in reducing environmental footprint, enhancing comfort for users, etc.
(1)Targets (KPI)
We have set targets (KPI) and keep up efforts for acquisition of green building certification for portfolio properties.
Green Building Certification Acquisition Rate
Target (KPI)
■Of entire portfolio, percentage of properties that will have acquired green building certification (Note 1): To be maintained at 50% or more (based on gross floor area (Note 2)(Note 3))
■Of Office properties and Retail properties, percentage of properties that will have acquired green building certification: To be maintained at 60% or more (based on gross floor area)
- Refers to certification by a third-party certification body, such as DBJ Green Building Certification, CASBEE, BELS, and JHEP Certification. The same applies hereinafter.
- In the calculation of the percentage of properties that will have acquired green building certification, the properties subject to calculation do not include properties for which ownership is of the land interest only. The same applies hereinafter.
- In the case of properties which Hulic Reit holds under partial ownership or quasi co-ownership, the calculation is based on the floor area corresponding to its partial ownership or quasi co-ownership interest.
(2)Performance
Of the properties held by Hulic Reit, the actual percentage of properties that have acquired green building certification (based on gross floor area) is as follows:
- Entire portfolio
- Office properties and Retail properties
Promotion of Energy Conservation and Climate Change Countermeasures (1.48MB)
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1.Basic Policy
2.Awareness of Climate-Related Issues and Support for TCFD Recommendations
3.Governance
4.Strategy
5.Risk Management
6.Metrics and Targets (KPI), and Performance
■GHG Emissions
■Energy Consumption
7.Key Utilization of Energy-Conservation and Power-Saving Equipment at Portfolio Properties
■Introduction of LED Lighting
■Adoption of Photovoltaic Equipment
■Introduction of Electricity from Renewable Energy Sources to Properties Owned
■Introduction of energy consumption management system
■Effective Utilization of Subway Seep Water
・HVAC system utilizing subway seep water
■Adoption of Natural Ventilation System
■Adoption of Natural Lighting System
■Adoption of Greening System
・Rooftop greening system to block direct sunlight and thereby reduce HVAC load
・Wall greening system to contribute to combating the heat island effect through transpiration
・Greening of Facilities
8.Environmentally Friendly Initiatives
■Collaborative Initiatives with Tenants
・Green Lease Agreement
■Collaborative Initiatives with Property Management Companies
■Assessment of Risks When Acquiring Properties
Promotion of Proactive Acquisition of Green Building Certification (1.10MB)
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1.Targets (KPI)
■Green Building Certification Acquisition Rate
2.Performance
■Green Building Certification Acquisition Rate (based on gross floor area)
■DBJ Green Building Certification
■BELS
■CASBEE for Real Estate Certification
■CASBEE for Wellness Office Certification
■JHEP Certification
Circular Economy Practices (Effective Utilization of Water Resources, Waste Reduction, Etc.) (129KB)
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1.Effective Utilization of Water Resources
■Examples of Water-Saving at Portfolio Properties
■Performance
2.Waste Reduction
■Examples of Waste Reduction at Portfolio Properties or Hulic REIT Management
■Performance
Investment in Urban Areas (Initiatives on Urban Redevelopment and Urban Revitalization) (512KB)
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1.Investment in Urban Areas
■Investment in Properties Developed Through Urban Redevelopment
■Investment in Properties in Central Tokyo and Near Train Stations
■Investment in Existing Development Zones in Urban Areas
2.Collaboration with Hulic Group
■Main Support Received From Sponsor - Asset Circulation Model -
3.Commitment Related to Greenfield Developments
4.Leasing to Small and Mid-Sized Enterprises (Affordable Lease)
Society Initiatives
Enhancement of Customer (Tenant/User) Satisfaction (688KB)
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1.Specific Initiatives
■Acquisition of CASBEE for Wellness Office Certification for Hulic Toranomon Building
■Implementation of Tenant Satisfaction Surveys
■Implementation of Initiatives in Consideration for the Well-Being of Customers
■Implementation of Initiatives in Consideration for the Safety of Customers
・Implementation of Safety Measures
・Installation of Emergency Supplies in Elevators and AEDs
■Implementation of Initiatives in Consideration for the Comfort of Customers
・Implementation of Renovation Work in Consideration for the Comfort of Customers
・Inviting Food Trucks
・Introduction of Digital Signage
・Introduction of LUUP
・Introduction of Signage in Restrooms
Supply Chain Management (30KB)
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1.Formulation of CSR Procurement Policy
2.Implementation of Monitoring of Counterparties in Procurement and Other Transactions
■Requirements and Checkpoints Based on the CSR Procurement Policy
Disclosure of Information to and Dialogue with Stakeholders (110KB)
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1.Specific Initiatives
■IR Activities in Fiscal 2024Respect for Human Rights (30KB)
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1.Formulation of Human Rights Policy
Motivating Work Environment (Securing of Human Resources, Human Resources Development, Training and DEI(Diversity, Equity and Inclusion), Etc.) (154KB)
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1.Basic Approach to Recruiting, Developing and Training Personnel
2.Specific Initiatives
■Human Resources Development
・Training Programs
・Support for Obtaining Qualifications
・Personnel System
・Periodic Career Interviewing Between Employees and Managers
・Individual Interview with the President and CEO
■Work-Life Balance and Well-Being
・Employee Satisfaction Survey (President Questionnaire)
・Employee Benefits
・Office Environment Improvements
・Leave system
・Prevention of Long Working Hours
・Initiatives for Prevention of the Spread of the Coronavirus
・Complaint and consultation counter for employees
■DEI(Diversity, Equity and Inclusion)
・Breakdown of Employees of Hulic REIT Management
■Other
・Merger or Acquisition Since Fiscal 2014
・Layoffs Since Fiscal 2014
Contribution to Local Communities (548KB)
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1.Specific Initiatives
■Facilities that Link Community Information and People (Ochanomizu Sola City)
■Contributions to Revitalizing Region and Improving Convenience (Hulic Asakusabashi Building)
■Participation in Community Cleanup Activities
■Utilization of Corporate Version of Furusato Nozei
Hulic Group’s Social Contribution Activities (360KB)
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1.Social Contribution as a Company
■Hulic Student Idea Competition
■Hosting Summer Festivals and Donating of a Portable Shrine
■Making the Company’s Nursery Facilities Available to Local Community
■Support for Single-Parent Households
■Hulic Scholarship Program for Training of Welfare Caretakers
■Hulic and the University of Tokyo establish social cooperation program
2.Supporting Employees to Participate in Social Contribution Activities
■Satoyama Conservation ActivitiesGovernance Initiatives
Corporate Governance PDF (103KB)
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1.Hulic Reit’s Corporate Governance
■Hulic Reit’s Governance
■Executive Officers and Supervisory Officers
・Executive Officers and Supervisory Officers in Office and Their Terms of Office
・Criteria for Selecting Executive Officers and Supervisory Officers
■Management Fees, Etc.
・Remuneration for Officers and the Accounting Auditor
・Asset Management Fee
2.Hulic REIT Management’s Corporate Governance
■Breakdown of Full-Time Directors and Employees at Hulic REIT Management
■Remuneration System for Employees and Officers of Hulic REIT Management
■Remuneration for Officers of Hulic REIT Management: Introduction of Performance-Linked Compensation
■Introduction of Investment Unit Ownership Program for Officers and Employees
3.Initiatives for Aligning Unitholder Return with the Interests of the Hulic Group
■Investment Support from the Hulic Group (“Same-Boat Investment”)
■Co-Ownership of Properties with the Sponsor
Compliance PDF (55KB)
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1.Fundamental Approach to Compliance
2.Compliance Structure
■Compliance Committee
■Compliance and Risk Management Department and Compliance Officer
■Investment and Management Decision-Making Process and Prevention of Transactions Involving Conflict of Interest
■Overview of Decision-Making Procedure for Acquisition, Sale, Leasing and Management of Managed Assets in Interested Party Transactions
■Adoption of Voluntary Rules to Prevent Transactions Involving Conflict of Interest
■Establishment of Compliance Rules and Compliance Manual, and Putting Such into Practice
■Implementation of Regular Internal Auditing and Monitoring System (Including the Involvement of Board of Directors)
■Compliance Training and Raising Awareness of Compliance
■Counteracting Anti-Social Forces
■Measures to Prevent Bribery and Corruption
■Response in the Event of Accidents, Etc.
■Compliance Hotline (anonymous reporting and consultation are possible; protection in accordance with the Whistleblower Protection Act)
3.Customer-Oriented Business Conduct
■Policy for Customer-Oriented Business Conduct
Risk Management PDF (30KB)
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1.Fundamental Approach to Risk Management
2.Risk Management Structure
■Establishment of Risk Management Rules and Risk Management Manual, and Putting Such into Practice
■BCP Measures
■Confirmation of the Safety of Employees and Officers
■Information Security
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