Sustainability

Ⅲ. Environmental Considerations

A. Environmentally Conscious Asset Management

ADR’s properties will be managed with environmental consideration through the following measures.

a. Extending the lifespan of properties through large-scale repairs and value-enhancement renovations

b. Installing LED lighting
As of January 2019, LED lighting is installed in 59 properties (22% of portfolio).

c. Installing water-saving toilets

d. Installing heat shielding paint roofing

e. Encouraging tenants to conserve energy usage through posters on common area billboards and periodical “RESIDIA News” and sending of sustainability guides

f. Setting of green-lease clauses.

g. Including a criterion concerning initiatives taken on environment in selecting a property manager.

h. Working together with building managers towards shared goals on environmental concerns.

i. Introducing car sharing in parking lots of properties
As of January 2019, 3 properties (1% of portfolio) have parking lots for car sharing.

1. Extending the Economic Life of Building Structures through Large-scale Repairs and Value Enhancement Renovations

ADR aims to raise unitholders’ value while contributing to the environment (e.g. reducing life cycle CO2 emissions) by extending the economic life and maintaining the value of building structures through large-scale repairs and value enhancement renovations.

2. Environmental Targets and Results (energy consumption, CO2 emissions, water usage and waste volume)

Establishing Policies

ADIM has established policies on “energy conservation,” “greenhouse gas emission reduction,” “water conservation” and “waste management” to improve energy efficiency of ADR’s properties and making effort to reduce the properties’ energy consumption and greenhouse gas emission.

Environmental Targets

1% average annual reduction is the medium to long-term target on reducing energy consumption and greenhouse gas emission for the whole property portfolio.

Items

Short-term Target

Long-term Target

Energy Consumption

1% annual intensity reduction

5 year (FY2014 through FY2019) /5% total reduction in intensity

GHG Emission (CO2)

1% annual intensity reduction

5 year (FY2014 through FY2019) /5% total reduction in intensityNote

Water Usage

avoid increase in intensity

5 year (FY2017 through FY2021) /avoid increase in intensity

Waste Volume

avoid increase in intensity

5 year (FY2014 through FY2019) /avoid increase in intensity

Note : The reduction target is the same for both Scope1 and Scope2.

 

Total Usage

(MWh)

FY2014

FY2015

FY2016

FY2017

FY2018

Intensity
(MWh/㎡)

Actual

Same Store Coverage

Energy

Consumption

Electricity

20,469

19,495

21,937

20,957

21,632

21,480

21.6%

0.0226

0.0205

0.0230

0.0215

0.0222

0.1034

Fuel

1,540

1,715

1,574

1,718

1,827

1,803

21.6%

0.0018

0.0018

0.0017

0.0019

0.0020

0.0093

District Heating and Cooling

2,854

3,208

3,077

3,256

3,228

3,228

100.0%

0.0704

0.0792

0.0759

0.0803

0.0797

0.0797

 

Total Usage(t)

FY2014

FY2015

FY2016

FY2017

FY2018

Intensity (t/㎡)

Actual

Same Store Coverage

GHG

Emission

(CO2)

Total

10,337

11,783

12,547

24,830

25,975 25,727 24.0%
0.0114 0.0124 0.0132 0.0252 0.0266 0.0410

Direct Emission

Scope1

233 292 289 298 323 319 37.7%
0.0003 0.0003 0.0003 0.0031 0.0034 0.0089

In-direct Emission

Scope2

10,104 11,491 12,258 11,854 12,205 12,122

24.3%

0.0112 0.0121 0.0129 0.0122 0.0125 0.0518

Scope3 Note

- - - 12,678 13,447 13,287 65.1%
- - - 0.0130 0.0138 0.0212

Note: Calculated by multiplying the amount of garbage discharged at the property by incinerator emission factor.

 

Total Usage(㎡)

FY2014 FY2015

FY2016

FY2017

FY2018

Intensity(㎡/㎡)

Actual

Same Store Coverage

Water Usage

140,987 154,546 193,347 199,537 208,277 201,383

25.0%

0.1557 0.1628 0.2027 0.2051 0.2136 0.8400
    FY2014 FY2015 FY2016

FY2017

FY2018

Actual

Same Store Coverage

Waste

Volume

Total Amount(t)

- 2 5,934 6,436.4 6,837.4 6,795.6

65.1%

Intensity(t/㎡)

- 0.0000 0.0062 0.0066 0.0070 0.0069

Recycling Rate (%)

-

0.0%

13.4%

17.7%

17.6%

17.6%

Notes:

  1. Review period
    The fiscal year starts on April and end on March of the following year.
  2. Calculation method
    1. “Intensity” is calculated as follows.
      Total Usage or Emission (MWh) ÷ Total Property Floor Space (m2)
    2. ”Same Store” only compares properties that have annual data for both 2017 and 2018 on energy consumption / GHG emissions / water usage / waste volume. Properties were excluded if they have been newly acquired, disposed, developed,  renovated, or if the properties’ data acquisition rate vary between the reporting period.
    3. “Coverage” is calculated as follows.
      Total Floor Space of Data Collected (m2) ÷ Total Property Floor Space (m2)

3. Setting Green-lease Contract Clauses

44.2% of tenants are under leasing contract with clauses concerning energy and water conservation (green-lease contract) as of January 2018

Also ADR will insert green lease clause in the management consignment contract with property manager at the time of future consignments and contract renewals.

And based on the contract, ADR has received proposals concerning LED installation once a year from the building managers.

4. Supply Chain Management

ADIM has established a Green Procurement Policy to put the sustainability policy’s specific component into practice with the cooperation from its suppliers.

Since FY2016, to strengthen the engagement with suppliers, major suppliers including all property management companies that ADIM uses as a vendor have been evaluated by conducting surveys at the start of the contract and annually in accordance to the policy, on how they are addressing sustainability issues.

Since we believe it is important to have our major suppliers’ understanding and cooperation, on FY2017 we have re-notified our Green Procurement Guideline to our major venders, property management companies and building management companies.

B. Urban Area Investments

By investing in various kinds of urban properties, ADR promotes the reduction of environmental burden and contribute to the revitalization of cities and communities.

1. Investments in Flexible / Mixed Use Properties

ADR invests in flexible/mixed use properties (as of January 2019, 76 properties, 28% of the portfolio), thereby contributing in reducing environmental impact, revitalizing the area and providing convenient facilities to tenants and local residents. In addition, those flexible /mixed use properties have stores and squares open to public which contributes to the revitalization of the cities and the communities, by providing places for people gather.

The flexible / mixed use properties that ADR invests in are;

  1. Properties close to train stations which promote the use of public transportations thereby reducing CO2 emissions
    92% (on acquisition price) of properties are located within 10 minute walk from the nearest train station.
  2. Properties with convenient facilities such as a supermarkets or convenient stores attached.
  3. Properties with open space which are publicly accessible. (As of January 2019, 7 properties (3% of portfolio))
  4. Universal design properties that are accessible to senior citizens.

2. Investments Towards Urban Revitalization and Redevelopment Properties

ADR contributes in promoting urban revitalization and redevelopment through investments in the revitalization and redeveloped properties.

In revitalization projects, block districts are re-zoned, lands are more highly utilized and properties within the redevelopment will draw in people to the community thereby revitalizatizing the area.

(There are legal restrictions to the amount of development that J-REITs are allowed to do.)

Urban redevelopment properties acquired by ADR.

  1. Pianetta Shiodome
  2. RESIDIA Minami-Senjyu
  3. RESIDIA TOWER Kami-Ikebukuro
  4. Pacific Royal Court Minato Mirai Ocean Tower
  5. RESIDIA Tsutsujigaoka

3. Investments Towards Existing Urban Brownfield Redevelopment

By investing in existing urban brownfield redevelopment properties ADR contributes in the usage of existing infrastructures such as existing water supply systems, electricity grid, public school facilities. It will also prevent urban sprawl which will save energy involved in commuting and prevent development of green lands.

C. Cooperation between the Sponsor Group Companies

ADR works together with ADIM’s sponsor group companies in various fields to lessen its environmental burden and contribute to local communities.

  1. Acquisition of sponsor group developed properties
    ADIM advises on the residential market to help sponsor group companies to succeed in developing flexible / mixed use properties that will satisfy ADR’s acquisition criteria.
  2. Property management
    The sponsor group property manager who manages the largest share of ADR’s properties cooperates with ADR not only in such measures as promoting energy savings but also in measures such as placing AED equipments in publicly accessible area, whereby contributing to local communities.

D. Other Initiatives

ADR takes other environmentally friendly measures such as placing green open spaces on its property sites to alleviate heat island effect, paving the property grounds with interlocking paving blocks to lessen inner-city flooding and land subsidence.