Protecting the Environment

Basic Policy on Environment

We will actively address environmental issues and aim to balance between a rich environment in the future and business activities.

Responding to Climate Change

Keihanshin Building recognizes that the climate change problem brings about dramatic changes to the natural environment and social structure, and that it is a key issue (materiality) that has an impact on our Company’s overall management and business. Based on this recognition, we evaluate the impact of long-term and highly uncertain climate change on our business, and respond appropriately to medium- to long-term changes including the transition toward a decarbonized society and physical impacts such as climate change and rising sea levels, by building the corporate structure, enhancing the efficiency of energy use, reducing greenhouse gas emissions, and other means.

Information Disclosure Based on TCFD Recommendations

In November 2021, the Company announced its endorsement of the Task Force on Climate-related Financial Disclosures (TCFD). Taking this opportunity, the Company is assessing the impact of climate change on its business, and from June 2022, has been disclosing climate change-related information in line with the framework recommended by the TCFD.
In view of the need to enhance information disclosure on the financial impact that climate change and other sustainability issues have on a company, which enables investors to make appropriate investment decisions, the Company recognizes anew that initiatives to address climate change and other sustainability issues will contribute to the medium- to long-term enhancement of its corporate value.

Sustainable Use of Resources and Contribution to Recycle-oriented Society

We will strive to make effective use of limited resources through prolonging the lives of buildings, reducing waste, conserving water or other methods, thereby contributing to the realization of a recycle-oriented society.

Targets of Initiatives

【1】Reduce Scope 1 and 2 GHG emissions by 46% by FYE March 2031(compared to the FYE March 2020)

【2】Promote the acquisition of green building certifications by the fiscal year ending March 31, 2031(Acquire certifications for 50% or more of the total floor space of all properties)

With an aim to acquire green building certifications for 50% or more of the total floor space of all properties, we will promote building performance improvement in terms of energy conservation, safety, and water conservation while prolonging the lives of building structures.

Initiatives

Progress and results of targets and KPIs

GHG emissions

Targets: Reduce Scope 1 and 2 GHG emissions by 46% by FYE March 2031(compared to the FYE March 2020)

Approximately 93% of the Company’s total supply chain GHG emissions in the fiscal year ended March 31, 2023 consists of Scope3 GHG emissions. Of Scope3 GHG emissions, approximately 85% are GHG emitted by the business activities of tenants (customers) of our leasing properties (Category 13), and approximately 79% of the Company’s total supply chain GHG emissions consists of those emitted by the business activities of tenants (customers) of our leasing properties. This distinctive figure is due to the fact that we lease datacenter buildings.

Compared to office buildings, datacenter buildings use a larger amount of electricity to operate and cool IT equipment. However, we believe that we are making a certain contribution to energy conservation and GHG emissions reduction in society as a whole through efforts such as having datacenter users transfer and consolidate their servers and other IT equipment scattered across multiple locations into a state-of-the-art datacenter building with high energy efficiency.

We believe that in order to reduce GHG emissions across the entire Company, it is essential to promote energy conservation initiatives in cooperation with tenants (customers) and encourage them to consider the use of renewable energy. We will continue to work to reduce GHG emissions in cooperation with tenants (customers).

Actual GHG emissions and GHG emission intensity

Ratio of Scope1, 2, and 3 for FYE Mar. 31, 2023

Energy usage

KPI: reduce energy consumption intensity by 10% through energy conservation by the fiscal year ending March 31, 2031 compared to the fiscal year ended March 31, 2020

※Aggregation of portions corresponding to Scope1 and 2, and properties leased as a whole building to a single tenant per property are excluded. Total floor space is calculated based on operation rate

Introduction of solar power generation

KPI: use of renewable energy

In order to reduce GHG emissions from energy use, we are working to introduce electricity derived from renewable energy sources, in addition to the promotion of energy conservation.
We have switched to electricity derived from renewable energy sources for some of the owned properties, starting from the fiscal year ending March 31, 2024. In addition to purchasing electricity from outside sources, we have installed solar panels on the rooftop of the Fuchu Building.
The introduction of such renewable energy is expected to contribute to the reduction of GHG emissions from our business activities in the fiscal year ending March 31, 2024 and beyond.

Solar panels on the Keihanshin Fuchu Building

Ratio of properties with green building certifications by total floor space

We promote the acquisition of green building certifications, such as CASBEE Real Estate Certification and BELS Certification, in order to objectively assess the condition of our buildings through external evaluations, and at the same time, to use them as a reference for further improvement and enhancement.

Overview of CASBEE Real Estate Certification

The CASBEE (Comprehensive Assessment System for Building Environmental Efficiency) is a method for rating the environmental performance of buildings. The method comprehensively assesses building quality, including interior comfort and attention to the surrounding scenery, in addition to care for the environment (such as use of materials and equipment that conserve energy with a minimal environmental impact). For more information on CASBEE, please see the link below.

CASBEE Real Estate Certification assessment ranking

The CASBEE Real Estate Certifications we have obtained are as follows:

KPI

The Company considers “Strengthening of resilience to climate change” as a material issue that must be addressed in order to achieve sustainable enhancement of corporate value and help realize a sustainable society. Our KPI linked to this material issue is raise the ratio of certified green buildings to all the owned properties by floor space (%) to 50% and higher by the fiscal year ending March 31, 2031 and acquire green building certifications for all newly constructed properties in the future.

Green Building Certification Acquisition Rate

Overview of BELS Certification

BELS (Building-Housing Energy-efficiency Labeling System) assesses and labels non-residential buildings in terms of energy conservation performance, etc. based on the Evaluation Guidelines for Indicating Energy Conservation Performance of Non-Housing Buildings (2013) established by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT). BELS uses an assessment method that conforms to the revised Energy Conservation Standards (fully enforced on April 1, 2014). For more information on BELS, please see the link below (available in Japanese only).

BELS Certification assessment ranking

The BELS Certification we have obtained is as follows:

  • BELS Certification assessment ranking

Of net sales of 18.8 billion yen for the fiscal year ended March 31, 2023, net sales from seven properties with green building certifications are 5.6 billion yen, accounting for approximately 30% of total net sales.

Initiatives to realize a recycle-oriented society

Prolong the lives of buildings

Instead of resorting to the scrap-and-build approach, we are making efforts to use buildings over a long period of time to save resources and control waste emissions. In addition, under the concept of “preventive maintenance,” we carry out repairs and renovations as appropriate, thereby preventing major accidents and extending the service life of buildings. The Kawaramachi Building, where our head office is located, was completed in April 1962 and is over 60 years old. The entire building was renovated in 1999, and is still in active operation as an office building with modern features in harmony with the antique interior, with no signs of being obsolescence.

High energy conservation performance (example of the Toranomon Building)

The Toranomon Building uses airflow windows*, a zoned air conditioning system, and LED lighting for system ceilings. The building contributes to reducing the burden on the environment with its high-spec energy-conservation performance, such as automatic light adjustment by sensors.

  1. Airflow is directed between an outer and an inner layer of glass, mitigating the afternoon sun in summer and the cold in winter, and achieving both comfort and energy conservation.

Cross-section view of an airflow window

To reduce water usage and the volume of waste

Keihanshin Building considers the appropriate use of limited resources important for protecting the environment and local communities and contributing to the realization of a recycling-oriented society, and it is also essential for the sustainable growth of the Company. Based on this recognition, we have formulated policies aimed at reducing water consumption and the volume of waste generated, and are working on water conservation and waste reduction.