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Environmental

Environmental Charter and Approvals

Environmental Charter

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

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

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.
 
Building Certified Ratio (As of July 31, 2021)

This table can be scrolled left and right.

Category Certification Number of
Properties
Green Certified
Buildings
Gross Floor
Area
(m2) *
Green Certified
Buildings *
Green Building Certification CASBEE for Real Estate 19 30.7% 413,465.54 27.3%
DBJ Green Building 5 8.1%
Energy-saving Certification BELS 12 19.4% 267,144.79 17.6%
*The figure shown above is the floor area of CASBEE and DBJ Green Building combined as these certifications are defined as “ Green Building Certifications”.
**Exclude duplication
 

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   : 8 certifications (first rating acquired in 2018) 
A   : 14 certifications (first rating acquired in 2017) 
B+   : 1 certification   (first rating acquired in 2020)
*IIF Shinagawa IT Solution Center is excluded from the above figures since it was sold on August 2, 2021.
 

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

S ★★★★★

A ★★★★

B+ ★★★

DBJ Green Building Certification

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 2012) 
3 stars: 2 properties (first rating acquired in 2014)

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

4 ★★★★

3 ★★★

BELS Certification

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: 7 properties (first rating acquired in 2016) 
4 stars: 4 properties (first rating acquired in 2014) 
3 stars: 1 property (first rating acquired in 2021) 
2 stars: 3 properties (first rating acquired in 2016)
*IIF Haneda Airport Maintenance Center 1 and Maintenance Center 2 were evaluated separately.
*IIF Shinagawa IT Solution Center is excluded from the above figures since it was sold on August 2, 2021.

IIF has obtained certifications for the following properties.

5 ★★★★★

4 ★★★★

3 ★★★

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.

Environmental Performance

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.
IIF's environmental performance was as follows:
  No. of
Properties
owned*1
Electricity
Electricity*2
(Mwh)
Fuel
Fuel*3
(Mwh)
Water
Water
(Thousand m3)
  CO2 emissions
CO2 emissions*4,5
(Thousand tCO2)
2020 62 190,541 65,296 656 99
2019 58 151,381 11,241 532 74
2018 53 146,045 12,977 549 75
2017 51 139,627 12,997 543 75
2016 41 125,801 12,435 362 66
2015 37 138,913 7,633 363 79
Aggregation Period
2020: February 2020– January 2021
2019: February 2019– January 2020
2018: February 2018– January 2019
2017: February 2017– January 2018
2016: January 2016– December 2016
2015: January 2015– December 2015

*1 Excludes properties with land with leasehold interests. The number of properties is calculated as of;
2020: January 2021
2019: January 2020
2018: January 2019
2017: January 2018
2016: December 2016
2015: December 2015
*2 The figures of electricity is the total amount of purchased electricity and on-site consumed renewable energy.
*3 Calculation method for Fuel based on the usage (Mwh) of city gas and heavy oil after 2016. For 2015, usage of city gas and propane gas is used .
*4 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, "Handbook of Reporting on Global Warming" by the Tokyo Metropolitan Government and “the Act on Promotion of Global Warming Countermeasures” etc.
*5 The amount of CO2 emissions is the total of Scope 1, Scope 2 and Scope 3. With regard to the figure for 2020, 79Thousand t-CO2 of Scope3 derives from 190,541MWh of electricity and other fuels. 10MWh out of 190,541MWh of electricity is covered by green power.
*6 “WEB information” as the source of the figures for 2020 in “Environmental Performance” above has been given limited assurance by a third party organization (Ernst & Yong ShinNihon LLC).

Initiatives for Reducing Environmental Impact

IIF is responding to the problem of climate change, which is becoming more serious year by year, by implementing environmentally-friendly and energy-saving measures and making efforts toward more efficient energy use in its properties to give greater consideration to the environment and lessen its environmental impact. Also, to reduce CO2 emissions, which are one of the risk factors for climate change, it has established systems for understanding and managing CO2 emissions in its portfolio as a whole.

CO2 Emissions

CO2 Emissions

Data and emissions per unit is calculated based on the total floor area (after considerations for occupancy status).

Date collection rate
2020 100.0%
2019 100.0%
2018 100.0%
2017 100.0%
2016 100.0%
2015 100.0%

Aggregation period
2020: February 2020– January 2021
2019: February 2019– January 2020
2018: February 2018– January 2019
2017: February 2017– January 2018
2016: January 2016– December 2016
2015: January 2015– December 2015

IIF Supports “Zero Emission Tokyo” Initiatives

IIF Supports “Zero Emission Tokyo” Initiatives

In support of initiatives by the Tokyo Metropolitan Government’s Bureau of Environment to make zero CO2 emissions in Tokyo, IIF has donated 1,341tons of CO2 credits acquired through energy conservation efforts in accordance with Tokyo’s Cap -and- Trade Program

For details, please refer to the website of Tokyo Metropolitan Government Bureau of Environment
www.kankyo.metro.tokyo.jp/en/climate/index.html
 
*Tokyo Cap-and-Trade Program Credit: Japan’s first mandatory emission trading scheme to donate CO2 credits (excess reduction credits) acquired through energy conservation efforts.

Energy

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 environmental 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 is calculated based on the total floor area (after considerations for occupancy status).

Date collection rate
2020 100.0%
2019 100.0%
2018 100.0%
2017 100.0%
2016 100.0%
2015 100.0%

Aggregation period
2020: February 2020– January 2021
2019: February 2019– January 2020
2018: February 2018– January 2019
2017: February 2017– January 2018
2016: January 2016– December 2016
2015: January 2015– December 2015
Energy Consumption / Gas Consumption

Example of Initiatives

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.

Properties:
IIF Haneda Airport Maintenance Center
IIF Haneda Airport Maintenance Center

IIF Shinonome Logistics Center
IIF Higashi-Osaka Logistics Center
IIF Yokohama Tsuzuki Logistics Center
IIF Noda Logistics Center
plus 9 other properties

Solar power

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

Properties:
IIF Tosu Logistics Center
IIF Tosu Logistics Center

IIF Kobe Logistics Center
IIF Misato Logistics Center
IIF Iruma Logistics Center
IIF Fukuoka Hakozaki Logistics Center II
plus 5 other properties

Water

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 is calculated based on the total floor area (after considerations for occupancy status).

Date collection rate
2020 100.0%
2019 100.0%
2018 100.0%
2017 100.0%
2016 100.0%
2015 100.0%

Aggregation period
2020: February 2020– January 2021
2019: February 2019– January 2020
2018: February 2018– January 2019
2017: February 2017– January 2018
2016: January 2016– December 2016
2015: January 2015– December 2015

Example of Initiatives

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

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 is calculated based on the total floor area (after considerations for occupancy status).

Date collection rate
2020 89.6%
2019 93.4%
2018 100.0%
2017 100.0%
2016 100.0%
2015 94.5%

Aggregation period
2020: February 2020– January 2021
2019: February 2019– January 2020
2018: February 2018– January 2019
2017: February 2017– January 2018
2016: January 2016– December 2016
2015: January 2015– December 2015

Biodiversity

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 (78,000m2)

Pollution Prevention

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.

Due diligence

Recognizing that hazardous substances related to soil contamination and buildings (PCB, asbestos, etc.) are one of the risk factors in real estate transactions. Adequate and reasonable measures are taken in light of socially accepted ideas and trustee obligations, and legal regulations, complaints, and other risk management are implemented in relation to hazardous substances related to soil contamination and buildings.
  1. To accurately calculate the risk for the judgment materials for the acquisition of real estate
  2. Minimize risk in acquiring real estate
  3. Compliance with laws and regulations regarding soil contamination, etc. after acquisition of real estate (soil contamination countermeasures laws)

Assessments When Acquiring Real Estate Properties

When acquiring real estate properties, IIF takes various environmental factors into consideration before making investment decisions: property inspections, land history investigations, 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

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.