Materiality and KPIs

ESG Materiality and KPIs

Materiality

Through the meetings of the Sustainability Committee, the asset manager has examined its vision and targets for sustainability and carried out efforts toward their realization. As the level of interest toward sustainability is rising, the asset manager has further clarified the responses to be taken by identifying and visualizing related to sustainability materiality through dialogue with global stakeholders and collaborative efforts with other organizations. These issues were identified based on the Company’s Corporate Philosophy and Sustainability Policy.

Materiality

List of Sustainability Issues

  • Response to sustainability certifications
  • Building resilience
  • Response to climate change
  • Energy efficiency
  • Ensuring of health and well-being of and convenience for people (tenants)
  • Employee cultivation and level of satisfaction
  • Efficient water use
  • Waste disposal
  • Partnership with stakeholders
  • Biodiversity in areas surrounding our buildings
  • Human rights
  • Diversity, equity, and inclusion
  • Compliance
  • Supply chain management

Materiality and KPIs

Level of Importance ★★★

This table can be scrolled sideways.

Materiality Target KPI Progress in FY2024 Risk Opportunity Related SDGs
Response to sustainability certifications Improving proportion of environmental certifications
  • Acquiring certifications for 70% or more of Logistics facilities (Target year: 2025)
  • Acquiring certifications for 60% or more of the total portfolio
  • Five properties re-acquired Certification for CASBEE for Real Estate
  • One property newly acquired BREEAM
 Decline in assessment among tenants and investors who base their assessments on sustainability
  • Improve environmental performance of properties
  • Expand the range of investors
 [9] INDUSTRY, INNOVATION, AND INFRASTRUCTURE
[11] SUSTAINABLE CITIES AND COMMUNITIES
Improving sustainability activities through participation in GRESB and other external evaluation institutions GRESB: Acquiring five Star Acquired four stars
CDP: Acquiring “Leadership” level Acquired A (Leadership)
Response to climate change Reduction in GHG emission Reduce total emissions by 42% compared to 2021
Target: Scope 1&2
(Target year: 2030)
  • Completed switch to LEDs at three properties, in process at one property
  • Completed conversion to green energy by installing solar panels at two properties
  • Completed purchase of green electricity at one property
  • Drop in tenant sales & increase in property damages due to physical impact of climate change
  • Decline in assessment by tenants & investors
 Cost reduction with efficient energy use [13] CLIMATE ACTION
Energy efficiency Improvement in energy consumption Reduction in energy consumption per unit* by 30% compared with 2015 (Target year: 2030)
  • Increase in energy-related expenses
  • Reinforcement of environmental regulations
 Cost reduction with efficient energy use [7] AFFORDABLE AND CLEAN ENERGY
Introduction of renewable energy Switching to electricity procured from renewable energy in IIF’s directly managed properties (Target year:2030) Completed purchase of green electricity at one property
Building resilience Implementing disaster prevention measures Completion of construction of emergency call tree Completion of construction of emergency call tree Increase in expenses for recovery, compensation, etc., after natural disasters Increase in property competitiveness [9] INDUSTRY, INNOVATION, AND INFRASTRUCTURE
[11] SUSTAINABLE CITIES AND COMMUNITIES
Ensuring of health and well-being of and convenience for people (tenants) KJRM Implementation of employee satisfaction survey Survey conducted annually Implemented
  • Target: all employees
  • Response rate: 100%
  • Decline in property competitiveness
  • Manpower outflow due to declining work conditions
  • Improved sustainability assessment by assessment bodies and investors
  • Improvement in employee satisfaction and tenant assessment & satisfaction
 [3] GOOD HEALTH AND WELL-BEING
Diversity, Equity, and Inclusion KJRM Development of working environments where employees can fulfill their potential and achieve a work-life balance Achievement of a 50% utilization rate of parental leave by male employees (at least one employee taking parental leave) 33.4% as of December 31, 2024 Outflow of talent
  • Achievement of work-life balance and support for continued employment
  • Recruitment of talent
 [5] GENDER EQUALITY
[8] DECENT WORK AND ECONOMIC GROWTH
KJRM Further promotion of women’s active participation in the workplace to continue fostering groundbreaking innovation Raise the percentage of female employees in management roles to 20% (target year: 2027) 13.2% as of December 31, 2024
Employee cultivation KJRM Employee participation in compliance training 100% Training conducted annually 100% participation rate
  • Outflow of talent
  • Emergence of risks with decline in compliance awareness
  • Development & recruitment of competitive human resources
  • Assurance of customer trust through improved compliance awareness
 [8] DECENT WORK AND ECONOMIC GROWTH

Level of Importance ★★

This table can be scrolled sideways.

Materiality Target KPI Risk Opportunity Related SDGs
Efficient water use Reduction in water consumption Keeping water use per unit* at the same level as 2015
(Target year: 2030)
  • Impact of shortage or quality decline of water resources on surrounding areas
  • Rise in cost with increase in water consumption volume
 Cost reduction with reduction in water consumption [6] CLEAN WATER AND SANITATION
Waste disposal Reduction in wastes Improvement of recycling rate that properties under IIF’s management
(2022 comparison)
  • Reputation risk caused by increase in wastes
  • Increase in processing cost
 Processing cost reduction with reduction in wastes [11] SUSTAINABLE CITIES AND COMMUNITIES
[12] RESPONSIBLE CONSUMPTION & PRODUCTION
Collaboration with local communities Providing land to community events
  • Existing Property Maintenance for the actual condition
  • New Property Consideration of the plan based on the negotiation with tenants
  • Degradation of the environmental surrounding the real asset
  • Decline in reputation in the neighboring area
  • Revitalization of neighboring areas
  • Improvement of corporate image
 [17] PARTNERSHIPS FOR THE GOALS
  • *Calculated based on the total floor space (after considerations for occupancy rate)
DFF Inc., Industrial & Infrastructure Fund Investment Corporation, Mitsubishi Corp. - UBS Realty Inc.