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Environmental Charter

The MC-UBS Group formulated the Environmental Charter, which sets out our environmental principles and action plans.
MCUBS then formally established it in June 2013.


Environmental Charter

At Mitsubishi Corp.-UBS Realty Inc., we consider the Earth itself to be our most important stakeholder and are continuously working toward the realization of a sustainable society through our business activities.
  • We will strive to reduce greenhouse gas emissions by continuously implementing new efficiency measures and embracingnew technologies.
  • We will promote the sustainable use of natural resources including energy, minerals, food stocks, and water throughout our global business operations.
  • We recognize the critical importance of what ecosystems can provide and are committed to protecting ecosystems and mitigating any potential impacts on biodiversity.
  • We will strive to create and enhance environmental benefits by undertaking conservation activities and reducingour environmental footprint.
  • We will continue to actively engage and work with our various stakeholders openly and transparently and disclose information on the environmental impacts of our business operations in an appropriate and timely manner.
  • We will conduct all of our activities in compliance with environmental laws while adhering to international rules and social standards.

Environmental Approvals and Evaluations for Group Assets

IIF actively engages in sustainability activity, but we also believe in the importance of obtaining objective evaluations and certifications for this activity. In order to meet the demands of investors, tenants and various stakeholders in the global market, IIF has obtained a wide range of certifications ranging from valuating building performance to evaluating entire funds.

Conditions Regarding the Acquisition of Certifications

IIF have received several positive overall ratings of our funds under management from GRESB (Global Real Estate Sustainability Benchmark), the current global standard for real assets. We received certification in their early stages which became the first J-REIT to be selected as a Sector Leader in 2013. In 2018, we received the highest ranking given by GRESB, the Green Star, for the sixth consecutive years, respectively.
Regarding performance evaluations on real estate, we have acquired certifications for CASBEE for Real Estate, DBJ Green Building, and BELS. For further details, please see below.
Going forward, we will maintain its policy of improving the ratings of its overall funds under management while increasing its proportion of properties with certifications from external parties.
 

GRESB

IIF achieved the highest ranking of Green Star among the four ranked evaluations using the Global Real Estate Sustainability Benchmark conducted in 2018, for six consecutive years.
GRESB

The Global Real Estate Sustainability Benchmark (GRESB) is a system for carrying out benchmark evaluations of the environmental, social and governance (ESG) performance of real estate companies and the like. In addition to the GRESB Real Estate Valuation, a system for valuating real estate, the GRESB Publicly Disclosed Valuations was initiated with five levels of public disclosure that disclosed data on the environment, society, and governance exclusively.

IIF was Designated as Highest Grade “Green Star” for Six Consecutive Years

IIF was designated by the GRESB (Global Real Estate Sustainability Benchmark) Real Estate Assessment as "Green Star," the highest ranking of the four categories for the six consecutive years in 2018.

2018

2018
Real Estate
Green Star (sixth consecutive year) : 4 stars
Public Disclosure : A

2017

Real Estate
Green Star : 5 stars

2016

Real Estate
Green Star : 5 stars

Certification for CASBEE for Real Estate

CASBEE® (Comprehensive Assessment System for Built Environment Efficiency) is an evaluation system that ranks buildings and structures in terms of their environmental performance. In addition to each building's ability to reduce its environmental impact across a variety of areas including energy and resource conservation as well as recycling, this system comprehensively evaluates the environmental performance of each building and structure including its aesthetic appeal.
*CASBEE® is a registered trademark owned by the Institute for Building Environment and Energy Conservation (IBEC) and is used with permission.
 
Certification for CASBEE for Real Estate
Number of Properties Classified by Evaluation Ranking
S : 2 property (first rating acquired in 2018) 
A : 7 properties (first rating acquired in 2014) 
B+ : 1 properties (first rating acquired in 2016)

IIF properties have received the certification as below.
*Detailed examples of our environmental approval and evaluation

S ★★★★★

IIF Nishinomiya Logistics Center
IIF Nishinomiya Logistics Center
* Evaluation is for the extension of this property

A ★★★★

B+ ★★★

DBJ Green Building Certification

Under the DBJ Green Building system, the Development Bank of Japan (DBJ) certifies real estate properties with high environmental and social awareness, based on five evaluation ranks (one star "★" to five stars "★★★★★"), using a comprehensive scoring model developed independently by DBJ.
Number of Properties Classified by Evaluation Ranking
4 stars: 3 properties (first rating acquired in 2015) 
3 stars: 2 properties (first rating acquired in 2015)

In 2012, IIF Koshigaya Logistics Center and IIF Noda Logistics Center have received the certification as the first logistics properties owned by J-REIT. On October 2015, five properties owned by IIF, including the two properties awarded in 2012, were awarded the certification.

4 ★★★★

3 ★★★

BELS Certification

BELS certification is provided under a public evaluation system, which evaluates the energy conservation performance of non-residential buildings. In the BELS system, five levels of energy conservation performance are evaluated by a third party based on various criteria, irrespective of whether they are new buildings or existing buildings. BELS certification, which is the first public evaluation system specific to energy conservation performance in Japan, is expected to promote further improvements by providing appropriate information and promoting the energy conservation performance of buildings.
bels
Number of Properties Classified by Evaluation Ranking
5 stars: 2 properties (first rating acquired in 2016) 
4 stars: 2 properties (first rating acquired in 2014) 
2 stars: 4 properties (first rating acquired in 2016)
*”Maintenance Center 1” and “Maintenance Center 2” were evaluated separately.
 

IIF has obtained certifications for the following properties.

5 ★★★★★

4 ★★★★

IIF Nishinomiya Logistics Center
IIF Nishinomiya Logistics Center
* Evaluation is for the extension of this property

2 ★★

IIF Haneda Airport Maintenance Center(Maintenance Center 1 / Maintenance Center 2)
IIF Haneda Airport Maintenance Center *”Maintenance Center 1” and “Maintenance Center 2” were evaluated separately.

Medium-to-Long-Term Goals and Environmental Performance

IIF works actively on energy conservation measures that relate to asset management, with the aim of creating a sustainable society through the reduction of environmental impact.

Medium-to-Long-Term Goals

Based on the Act on Rationalizing Energy Use (Energy Saving Act), IIF’s goal is to reduce the units of consumption related to energy use by one percent or more of the yearly average.

Specific Initiatives to Reduce Impact on the Environment

  • Business activity that incorporates energy conservation and control of CO2
  • Reduce waste
  • Promote efficient use of water
  • Permeate the concept of reducing the impact on the environment among, and strengthen partnership with persons associated with IIF’s business activity

Environmental Performance

IIF's environmental performance was as follows:
*1 Excludes properties with land with leasehold interests. Each of the above figures are calculated as of;
  2018: January 2019
  2017: January 2018
  2016: December 2016
*2 CO2 emissions are calculated in accordance with the guideline of “A Standard for Calculation/Report/Disclosure of Greenhouse Effect Gas Emission" by Ministry of the Environment of Japan and "Handbook of Reporting on lobal Warming" by the Tokyo Metropolitan Government.
*3 Calculation method for Fuel based on the usage (Mwh)of city gas and heavy oil for 2017 and 2018. For 2016, usage (m3)of city gas and propane gas is used .

Climate Change

With climate change becoming a growing problem with each passing year, we are implementing environmentally friendly and energy-saving measures for our properties and making efforts toward more efficient energy use in order to show greater consideration for the environment and lessen our environmental impact. To lower CO2 emissions, one of the risk factors for climate change, we are moving forward with a system that will assess and manage emissions across our entire portfolio.

CO2 Emissions

CO2 Emissions
Data and emissions per unit are calculated based on the total leasable floor area (after considerations for rate of occupancy).

CO2 emissions and energy amount
2017 100%
2016 100%

Aggregation period
2017: January 2017–December 2017
2016: January 2016–December 2016

Energy

IIF implements environmentally friendly and energy-saving measures and makes efforts toward more efficient energy use for the properties to show greater consideration for the environment and lessen its environmental impact.
We collectively manage energy, fuel, and water consumption and analyze the accumulated data, which is both accurate and highly transparent to actively manage reduction of energy use.

Energy Consumption / Gas Consumption

Energy Consumption / Gas Consumption
Data and emissions per unit are calculated based on the total leasable floor area (after considerations for rate of occupancy).

CO2 emissions and energy amount
2017 100%
2016 100%

Aggregation period
2017: January 2017–December 2017
2016: January 2016–December 2016

Example of Initiatives

Cooperating with tenants, IIF actively implements energy-saving measures, such as installing light-emitting diode (LED) lighting and solar power.

LED lighting

Replacing existing lighting with LED lighting saves energy and extends the lives of lamps.
In the process of conversion to LED lighting, the expected reduction in electrical capacity is discussed beforehand with the tenant and in some cases contracts are concluded in which a portion of the savings generated from the reduction of electricity use can be paid as rent.

plus 9 other properties


Solar power

Solar panels are installed on the roofs of facility buildings to save energy by using renewable sources.

plus 5 other properties


ESCO business

The Energy Service Company (ESCO) business is an energy-saving facilitation business with the basic policy of covering energy-saving renovation costs (including construction cost, interest, and ESCO business operator's expenses) by reducing electricity and fuel, utility expenses. IIF is involved in energy-saving activities using the ESCO business.

Water

IIF is working towards the sustainable use of resources and actively engages in initiatives that make effective use of water resources. In cooperation with tenants, IIF is engaged in initiatives to use water effectively by, for example, use of water for on-site spraying of pumped water from 100 m underground with an automatic water supply device.

Water Use

Water Use
Data and emissions per unit are calculated based on the total leasable floor area (after considerations for rate of occupancy).

CO2 emissions and energy amount
2017 100%
2016 100%

Aggregation period
2017: January 2017–December 2017
2016: January 2016–December 2016

Example of Initiatives

Effectively using water resources by tapping intermediate water

Automated pumping machine at IIF Mitaka Card Center
Automated pumping machine at IIF Mitaka Card Center

The IIF Mitaka Card Center uses water resources effectively by tapping intermediate water, which is hauled from a well through automated pumping machine, for the premises' sprinkler systems. Intermediate water is also used as daily water in the event of an emergency or disaster.

Waste

IIF has been making efforts to minimize the amount of waste produced by its properties, monitor the amount of waste generated, and appropriately manage waste production.

Waste and Recycling Rate

Waste and Recycling Rate
Data and emissions per unit are calculated based on the total leasable floor area (after considerations for rate of occupancy).

CO2 emissions and energy amount
2017 100%
2016 100%

Aggregation period
2017: January 2017–December 2017
2016: January 2016–December 2016

Biodiversity

IIF recognizes the critical importance of what ecosystems can provide and is committed to protecting ecosystems and mitigating any potential impacts on biodiversity.

Example of Initiatives

Establishing Green Zones

IIF Noda Logistics Center
IIF Noda Logistics Center

IIF creates green zones at each of its properties to help reduce the heat island effect and the amount of CO2 emissions.

Total greening area
7.8ha (78,000㎡)

Pollution Prevention

IIF strives to create and enhance environmental benefits by undertaking conservation activities and reducing its environmental footprint with MCUBS, the asset management of IIF.

Assessments When Acquiring Real Estate Properties

When acquiring real estate properties, IIF takes various environmental factors into consideration before making invest¬ment decisions: property inspections, land history investiga¬tions, and other related research on environmental risk factors.
During soil and environmental investigations, third-party experts perform environmental pollution investigations. Prior to executing any purchase agreement, IIF will have experts conduct a soil and environmental contamination survey to assist it in assessing a property’s environmental risks. IIF will use the pre-investment assessment workflow chart to determine whether the investment would be appropriate.
Concerning soil contamination, its property acquisition manual stipulates that investment targets shall be, in principle, properties “that are very unlikely to have soil contamination or that cannot eliminate the possibility of having soil contamination but are very unlikely to carry environmental damage risk.”

Pre-Investment Assessment Workflow

Pre-Investment Assessment Workflow
*1 If we are unable to determine solely from a review of historical records that there is no risk of soil contamination or that no other environmental contamination exists (for example, a manufacturing facility that utilized toxic or other hazardous substances in the past), we will conduct interviews with the seller.
*2 If we are unable to determine from interviews with the seller that there is no risk of soil or other environmental contamination, we will conduct a soil and groundwater contamination survey.
*3 If a contamination concern exists, but the necessary remediation would be technically or economically infeasible (for example, remediation is extremely difficult due to structures existing above the contaminated area), we will recommend a price adjustment.
*4 If, after discussions with the seller, remediation is deemed technically and economically feasible, we will conduct site remediation or require the seller to do so.

Building Safety

IIF is working to maintain the safety of its buildings by conducting building and earthquake risk assessments at the time of acquisition as well as collecting engineering reports on a regular basis.

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