Through the renewal of facilities in investment properties and collaboration with business companies that have business relationships with ADR, we are progressively implementing energy-saving, water-saving, and other environmentally friendly initiatives in all properties we own.

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

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

g.Introducing car sharing in parking lots of properties
As of July 2024, 5properties (1.7% of portfolio) have parking lots for car sharing.

h.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.

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

IRM has established policies on “Environmental performance data management standards” to improve energy efficiency of ADR’s properties and making effort to reduce the properties’ energy consumption and greenhouse gas emission.

Environmental Targets

For the entire portfolio, we aim to reduce energy consumption by 20% (intensity) and greenhouse gas emissions by 51% (total amount) for SCOPE 1 and 2 by FY2030, and achieve net zero emissions in FY2050 (compared to FY2018).

In FY2023, ADR achieved the 100-percent sourcing of energy used in the common spaces of its properties from renewable energy sources and a 100-percent offset of Scope 2 GHG emissions  through the following initiatives.

●Purchase of non-fossil certificates (for the power used in the common areas of properties)
※Purchased FIT non-fossil certificates with tracking information in the renewable energy value market through a vendor (Whole Energy, Inc.)
●Introduction of green heat certificates (for the heat used in the common areas of Pacific Royal Court Minatomirai Ocean Tower)
※Purchased green heat certificates from an issuer (Japan Natural Energy Company Limited)

≪What is a FIT (non-fossil fuel certificate)?≫
FIT: Feed-in Tariff for renewable energy
Non-fossil Certificate...Certificates are issued for electricity generated from "non-fossil power sources (methods of electricity production)" that do not use fossil fuels such as oil and coal.

GHGScope3 calculations are made to determine CO2 emissions throughout the supply chain and to promote efforts toward net zero emissions. (from FY2022)

And ADR has installed electric energy measurement systems in 188 properties (77.3% of the portfolio by total floor space) as of the end of July 2024, in order to improve the actual coverage rate of electricity consumption in our properties. By installing this system, it will be possible to measure the electricity consumption of the exclusive part. ADR encourages tenants to conserve usage through various enlightenment measures.

For tenants, IRM are implementing various enlightenment measures related to energy conservation.

Energy Consumption

GHG Emission（Scope1,2）

GHG Emissions (Scope 3)

*Calculated using the guidelines for the calculation of GHG emissions of an organization throughout the supply chain provided by the Ministry of the Environment of Japan.

*The categories not mentioned above either do not have any emission source or are calculated in Scope 1 or 2.

*The data for FY2022 has been retroactively recalculated in accordance with the revised calculation method.

*In calculating Category 13 “Leased assets (subject: Exclusive use areas of owned properties),” for properties for which actual energy consumption in the exclusive use areas of owned properties cannot be determined, estimates based on estimation methods confirmed by a third-party guarantee organization were used.

Water Usage

Waste Volume

*Past performance data may be revised retroactively in accordance with the revision of calculation methods, etc.

*Figures are rounded to the nearest indicated digit.

3. Independent assurance statement (limited assurance)

 Environmental performance data for FY2023, with a few exceptions, has been obtained from Sustainability Accounting Co., Ltd. as Independent assurance statement (limited assurance)  in accordance with the International Standard for Assurance Engagements ISAE 3000 and ISAE 3410.
The figures in the assurance report include data on properties acquired and sold during the period, and therefore the figures differ from the above actual values.

4. Setting Green-lease Contract Clauses

66.7% of tenants are under leasing contract with clauses concerning energy and water conservation (green-lease contract) as of July2024.

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

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 July 2024, 88properties, 31% 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
   93% (on acquisition price) of properties are located within 10 minute walk from the nearest train station as of July 2024.
   In addition, ADR has established criteria (access quality and number of minutes on foot) for the distance from the nearest station regarding property acquisition, within 10 minutes on foot for single and compact types, and within 15 minutes for family and large types.
2. Properties with convenient facilities such as a supermarkets or convenient stores attached.
3. Properties with open space which are publicly accessible. (As of July 2024, 7 properties (2.4% of portfolio))
4. Universal design properties that are accessible to senior citizens.
   In principle, ADR’s properties have wheelchair-accessible leads (slopes, handrails, private parking lots) installed in the relevant properties based on the Building Standards Act.
   In addition, although it is not legally required, a handrail was installed at BRANCHEILE Kohoku 2 based on requests from tenants.

2. Investments Towards Urban Revitalization

By investing in properties developed through urban revitalization project, we contribute to the revitalization of towns and communities and the improvement of convenience for residents in the surrounding areas