The matters resolved by and reported to the Sustainability Committee chaired by the Chief Sustainability Officer (CSO) are overseen and supervised by being reported as needed to the Board of Directors of KJRM Holdings, which is chaired by the President & CEO who also serves as CSO and meets at least once every three months, as well as the Board of Directors of the investment corporation, which meets at least twice a month in principle.
The Sustainability Committee, which held once a quarter in principle, identifies material risks and opportunities related to sustainability including climate change and natural capital, and plays a central role in sustainability activities by resolving policies, strategies, systems, and sustainability goals and monitoring performance.
For details, please refer to “Sustainability Promotion Structure”.
Dependencies and impacts as well as risks and opportunities on climate change and natural capital are sorted out in consideration of our business activities and then reviewed for the investment corporation, led by the sustainability staff of each division. Dependencies and impacts as well as identified risks and opportunities, along with their degree of impact, are reported to, and discussed and confirmed by the Sustainability Committee.
We led by the person in charge of sustainability issues, holds meetings (hereinafter referred to as "subcommittees") as necessary to discuss and examine in detail sustainability-related issues and promotion methods at the working level, either within the division or in cooperation with other divisions. Through the subcommittees, individual issues are discussed, and information is shared to raise awareness and understanding of the issues among those in charge, and to integrate sustainability considerations into the daily investment and management process.
Matters discussed and considered by the subcommittees are reported to the Sustainability Committee by each division, and the Sustainability Committee monitors that progress.
Moreover, the investment corporation collects and monitors monthly environmental data for properties. To work on initiatives for environmental matters, including metrics and targets and efforts to address climate change, and collect environmental data, we have established an environmental management system and strive to continually strengthen and improve our initiatives by implementing a PDCA cycle.
We operate the Risk Management Committee, in which senior management personnel serve as members. The Committee grasps and investigates matters related to major risks and formulates countermeasures and management policies. It checks the risks and opportunities affecting business operations, including climate change, at each division once every three months using a Risk Control Matrix (RCM), and reports to the committee for evaluation and management.
We recognize the critical importance of what ecosystems can provide and are committed to protecting ecosystems and mitigating any potential impacts on biodiversity.
We recognizes that human life and economic activities are based on natural capital, including biodiversity. We will continue to examine the relationship between its business activities and natural capital with reference to the TNFD recommendations.
The TNFD recommendations favor the LEAP approach as a means of identifying and assessing the relationship between business activities and nature. This process was used to analyze the dependencies and impacts of our business activities on nature and to select potential priori ty locations.
The TNFD recommendations encourage the use of the ENCORE tool to identify dependencies and impacts on natural capital in the sectors in which a asset manager operates. The TNFD recommendations encourage the use of the ENCORE tool to identify dependencies and impacts on natural capital in our operating sectors. Referring to real estate management as the sector in which it has direct operations, we considered the dependencies and impacts on natural capital that ought to be considered. In its considerations, we took account of the status of the relevant actions taken in each fund, in reference to the real estate management sector. After that, it identified dependencies and impacts.
In the current analysis, visual comfort is evaluated as a high dependency item. In the real estate business, visual elements such as landscapes and green spaces play an important role in providing an attractive environment for residents and users. Locations rich in nature, such as areas surrounded by greenery or near parks, are considered one of the elements that enhance the appeal and value of real estate assets. In addition, it is recognized that land use and water use in real estate operations may have a certain impact on species, water, and habitats. Based on the relationship between dependency and impact on natural capital, we identified potential risks and opportunities to business arising from future changes in the natural environment. Going forward, we will organize and evaluate the content through scenario analysis.
At the start of analysis, ecological information was organized for four areas, with Fujisawa and the Sagami River treated as separate areas, taking into account the asset holdings of IIF. Based on this assessment, potential priority locations have been selected. In the assessment process, reference is made to external data on interface with nature to identify sensitive locations as potential locations. While each of these areas meets at least one of the criteria for a sensitive location and thus could be a potential location, we will continue to consider priority locations, taking into account factors such as the status of IIF’s assets.
This table can be scrolled sideways.
| Fund | Area | Number of properties | Segment |
|---|---|---|---|
| IIF | Narashino | 4 properties | Logistics facilities / Manufacturing and R&D facilities, etc. |
| Fujisawa - Sagami River | 4 properties | Logistics facilities / Manufacturing and R&D facilities, etc. | |
| Osaka | 4 properties | Logistics facilities |
IIF recognizes the critical importance of what ecosystems can provide, and has established green zones on its properties and checks for soil contamination in order to mitigate any potential impacts on natural capital and contribute to its preservation.
IIF Shonan Health Innovation Park opens up part of its green space to local residents every Sunday, providing them a place where they can enjoy a stroll in nature.
The green space within IIF Shonan Health Innovation Park, called Shonan iPark forested area, has been certified as a Nationally Certified Sustainably Managed Natural Sites under the Act on Promoting Activities to Enhance Regional Biodiversity, recognizing areas where biodiversity is conserved through private initiatives.
Community Engagement
IIF Shonan Health Innovation Park:
Environmental preservation agreement with Fujisawa City and Kamakura City
IIF recognizes the critical importance of what ecosystems can provide and is committed to protecting ecosystems and mitigating any potential impacts on biodiversity.