ENVIRONMENTAL INITIATIVES

Policy and Structure

The progression of global warming is a serious issue threatening the sustainability of humankind and the existence
of the social economy. As a result, we consider environmental issues on a worldwide scale. Regarding the Paris
Agreement drafted at COP 21 and the draft version of “Japan’s Promise” submitted to the United Nations, the Japanese
government made a Cabinet decision called the Plan for Global Warming Countermeasures on May 13, 2016.  This
decision is to comprehensively and systematically promote global warming countermeasures

Tosei Asset Advisors (“TAA”) works on environmental impact reductions for properties across Japan under our
management to materialize the “Tosei Group Eco Declaration” and “Eco-Mission.”

The Private Fund Division established the ESG Committee (Committee Chairperson: Division Head of
Private Fund Division) to promote initiatives that reduce the impact on the environment. This Committee
developed the ESG plan, energy conservation manual, GHG reduction manual, water conservation manual, green
procurement manual, renovation manual, biodiversity guidelines, adaption guidelines to climate change, etc. We
communicate the manuals and policies to all staff, and the implementation status is checked based on the
management system.

The Private Fund Division’s environmental management system (EMS) organizational chart

Environmental initiatives of our private funds and Tosei REIT are as follows.

Participation in GRESB Real Estate Assessment

The following funds under our management participated in the GRESB and obtained the following results.

OSJ Kinshicho TMK (already divested)

OSJ NSY TMK(already divested)

  • GRESB is an annual benchmark that measures environmental, social, and governance (“ESG”) considerations by
    real estate companies and funds in real assets.
  • For more information about GRESB

DBJ Green Building Certification

TAA obtained the Green Building Certification for an office building in Sumida Ward (March 30, 2018).

Office building in Sumida Ward

TAA obtained the Green Building Certification for an office building in Yokohama City (December 20,
2018).

Structure Steel Structure
No. of floors 9 stories above ground and one below
Constructed 1992
Gross floor area 4,747.21m²

TAA obtained the Green Building Certification for an office building in Yokohama City (December
20, 2018).

Office building in Yokohama City

DBJ Green Building Certification is established by the Development Bank of Japan (DBJ) in April 2011 to
support real estate (“Green Buildings”) with high environmental and social awareness.

Structure Steel Reinforced Concrete / Steel Structure
No. of floors 18 stories above ground and one below
Constructed 1993
Gross floor area 50,304.72m²

Acquisition of BELS

TAA acquired “Building Energy-efficiency Labeling System” (BELS) Certification for the
following office buildings.

  • What is BELS? BELS evaluates energy conservation performance of buildings
    through a third-party evaluative organization and accredits them based on the Guidelines on the
    Energy Consumption Performance of Buildings

Office building in Taito Ward

Structure Steel Reinforced Concrete / Steel Structure
No. of floors 9 stories above ground and one below
Constructed 1992
Gross floor area 4,237.031m²

Shin Yokohama Center Building

Structure Steel Reinforced Concrete Structure
No. of floors 9 stories above ground and two below
Constructed 1990
Gross floor area 5,809.25m²

Office building in Sumida

Structure Steel Structure
No. of floors 9 stories above ground and one below
Constructed 1992
Gross floor area 4,747.21m²

MARK SQUARE AKIHABARA

Structure Steel Reinforced Concrete Structure
No. of floors 8 stories above ground
Constructed 1985
Gross floor area 1,426.21m²

ORCHID PLACE Shiba 4-chome Building

Structure Steel Reinforced Concrete Structure
No. of floors 10 stories above ground
Constructed 1988
Gross floor area 2,565.12m²

Kasuga-cho Building

Structure Steel Reinforced Concrete Structure
No. of floors 8 stories above ground and one below
Constructed 1985
Gross floor area 2,274.26m²

  • Please click here for information on
    the acquisition of BELS at Tosei REIT.

Appointment as a Fund Manager in Business Promotion Program for Creation of Quake-Resistant and Energy-
Efficient Real Estate by the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of
the Environment

In 2013, TAA was selected as a manager of the first semi-governmental real estate fund operated by Real
Estate Sustainability & Energy-Efficiency Diffusion (Re-Seed) in a project to promote the creation of
quake-resistant and energy-efficient real estate. The program fosters renovation and reconstruction of old
and underutilized real estate to high-quality real estate with quake resistance and environmental
performance.  It capitalizes on the private fund’s expertise after the government’s providing risk money to
induce private investment. TAA was selected as a manager of the second semi-governmental real estate fund in
2014 and 2017.

Earthquake-resistant ・environmental real estate formation promotion business

 

2013 Appointment in the first project i in Taito Ward
http://www.re-seed.or.jp/news1/detail/16
(The first project of this business)
2014 Appointment in the second project at Shin Yokohama Center Building
http://www.re-seed.or.jp/news1/detail/26
(The second project of this project)
2017 Appointment in Sumida Ward
http://www.re-seed.or.jp/news1/detail/49
Appointment in Yokohama City
http://www.re-seed.or.jp/news1/detail/50

Environmental Initiatives at an Office Building in Sumida Ward

Structure Steel Structure Constructed 1992
No. of floors 9 stories above ground and one below Gross floor area 4,747.21m²
  • Developed “Office Building in Sumida Ward ESG Plan“Environmental Management Plan”
  • Installed LED lighting throughout the whole building (1,333 units)
  • Installed an electric-powered tent (to mask solar radiation heat)
  • Renovated for water conservation (lavatories)Quarterly monitoring of energy, water
    consumption,GHG emissions and waste emissions
  • Conducted energy conservation diagnostics
  • Conducted environmental risk assessment
  • Assessed subcontractors for green procurement
  • Distributed sustainability guide including environmental and consideration matters to
    tenants
  • Posted environmental conservation educational posters in common-use spaces
  • Concluded a green lease agreement (a lease contract which includes articles
    on environmental consideration)
  • Energy management
    Reduced energy consumption, GHG emissions, and water consumption by 5% over 5 years, 1%
    reduction per unit year
    2.5% reduction waste emissions over five years, 0.5% reduction each year

Environmental Initiatives at an Office Building in Yokohama City

Structure Steel Reinforced Concrete / Steel Structure Constructed 1993
No. of floors 18 stories above ground and one below Gross floor area 50,304.72m²
  • Developed “Yokohama City Office Building ESG Plan” and “Environmental Management Plan”
  • Installed LED lights (3,432 units)
  • Renovated for water conservation (lavatories)
  • Saved electricity through the installation of inverter
  • Quarterly monitoring of energy, water consumption, GHG emissions and waste
    emissions
  • Confirmation of the accuracy of the data on energy and water consumption,
    GHG emissions, etc. by an external contractor.
  • Conducted energy conservation diagnostics
  • Conducted environmental risk assessment
  • Assessed subcontractors for green procurement
  • Optimized the environment inside the building and managed its energy by
    implementing the BEMS (Building Energy Management System)
  • Distributed sustainability guide including environmental consideration
    matters to tenants
  • Posted environmental conservation educational posters in common-use spaces
  • Concluded a green lease agreement (a lease contract which includes articles
    on environmental consideration)
  • Energy management
    Reduced energy consumption, GHG emissions, and water consumption by 5% over 5 years, 1%
    reduction per unit year
    2.5% reduction waste emissions over five years, 0.5% reduction each year

Energy Conservation Measures

  • The Private Fund Division has developed the renovation manual and promotes construction work for
    energy saving and greening.

LED lights installation

2014 Office building in Taito Ward LED lights installation(126 units)
Hotels in Nagoya City LED lights installation(178 units)
2015 Shin Yokohama Center Building LED lights installation(1,174 units)
2016 Hotels in Nagoya City LED lights installation(6 units)
2017 Residences in Nagoya City(56 residences) LED lights installation(145 units)
Residences in Kitakyushu City(45 residences) LED lights installation(22 units)
Residences in core cities around Japan LED lights installation(73 buildings)
2018 Office building in Sumida Ward LED lights installation for the whole building(1,333 units)
Office buildings in Yokohama City LED lights installation(3,432 units)
Residences in Shinjuku Ward(705 residences) LED lights installation(4,276 units)
2019 Residences in Toshima Ward LED lights installation(61 units)
Residences in Sumida Ward LED lights installation(27 units)
Residences in Tokyo Minato Ward LED lights installation(2 units)
Residences in Fukuoka City LED lights installation(2 units)
Before installation(residence in Setagaya Ward, Tokyo)
After installation(residence in Setagaya Ward, Tokyo)
Before installation(residence in Naka Ward, Nagoya City)
After installation(residence in Naka Ward, Nagoya City)

Reduction of electricity usage through the improvement of thermal insulation performance

Installation of electric-powered tent to mask solar radiation
(office building in Sumida Ward)
Installation of electric-powered tent to mask solar radiation
(office building in Sumida Ward)
Installation of thermal insulation material(residence in Chofu City)
Installation of thermal insulation material(residence in Chofu City)

Reduction of electricity usage by replacing the air condition

In 2014, Tosei Asset Advisors installed 56 indoor apparatuses and 22 outdoor apparatuses at
an office building in Taito Ward, and it intends to reduce the use of electricity by replacing air
conditioners when necessary for properties across Japan of which asset management has been entrusted to
Tosei Asset Advisors.

Before replacing air conditioner(residence in Nagoya City)
After replacing air conditioner(residence in Nagoya City)

Introduction of energy management system

Understanding of energy consumption in exclusive usable areasby HEMS (Home Energy
Management System)(residence in Nagoya City)
Energy management of the environment inside the buildingby implementing BEMS (Building
Energy Management System)(office buildings in Yokohama City)

Reuse of Resources Through Measures Against Deterioration Due to Aging (painting on eaves)
and Environmental Consideration Through the Reduction of Waste

Before installation(residence in Minato Ward)
After installation(residence in Minato Ward)
Installation in progress(residence in Minato Ward)
After installation(residence in Minato Ward)

Initiatives on Greening

Greening of entrance(office building in Shinagawa Ward)
Rooftop greening(residence in Koto Ward)
Before greening work(residence in Chiba City)
After greening work(residence in Chiba City)

Use of Renewable Energy (initiatives on solar power generation)

Solar panel installed on the rooftop(retail facility in Kashiwa City, Chiba Prefecture)
Solar panel installed on the rooftop(residence in Nagoya City)

Environmental Performance

Energy per square meter (residence)

2017 2018 2019 2020 2021 2022
Electricity use per square meter(KWH/㎡) 115 88 83 91 70 78
Water use per square meter(㎥/㎡) 0.05 0.05 0.04 0.22 0.34 2.46
CO₂ use per square meter
(t-CO₂/㎡)
Scope 1 0 0 0 0 0 0
Scope 2 0.06 0.04 0.04 0.04 0.03 0.04

※ The properties that form the data population are residences (common areas) entrusted by private
placement funds, and the number of properties listed above depends on our standards.
※Our private fund aims to reduce CO2 emissions, electricity consumption, and water consumption by 5% for
5 years and 1% per year.
※Water use per square meter(㎥/㎡) differ from past years due to changes in calculation methods.

Energy per square meter (Other than residence)

2022
Electricity use per square meter(KWH/㎡) 189
Water use per square meter(㎥/㎡) 0.46
Heat(MJ/㎡) 399
CO2 use per square meter
(t-CO2/㎡)
Scope 1 0.00
Scope 2 0.04
Scope 3 0.06

※ The properties that form the data population are other than residence entrusted by private placement
funds, and the number of properties listed above depends on our standards.
※ Our private fund aims to reduce CO2 emissions, electricity consumption, and water consumption by 5%
for 5 years and 1% per year.

Total energy(residence)

2022
Electricity use(KWH) 12,701,657
Water use(㎥) 401,922
CO₂ use
(t-CO2)
Scope1 0
Scope2 5,772

Total energy (Other than residence)

2022
Electricity use(KWH) 39,379,837
Water use(㎥) 73,446
Heat(MJ) 60,786,972
CO₂ use
(t-CO2)
Scope1 0
Scope2 8,551
Scope3 12,055

Environmental Assessment upon Property Acquisition

Upon acquiring property by the private fund under our management, a series of due diligence works and onsite
inspections are conducted, and outside experts prepare engineering reports. The contents are verified
internally before entering a purchase and sale contract.
TAA conducts an environmental risk assessment of hazardous substances, industrial waste management, soil
contamination, and the like for all its acquisition properties. The specific procedures thereof are provided
in the “Due Diligence Operations Implementation Manual”, “DD Survey Sheet”, “Real Estate Appraisal & ER
Checklist”.
Property acquisition decisions are made at the Investment Management Committee, and it is convened only
after an environmental risk assessment has been Constructed for the new acquisition property.

Environmental Initiatives at Office Buildings of Tosei Asset Advisors

  • Reduced office power use by controlling overtime work
  • Save on air-conditioning fees by using fans for air circulation
  • Educate employees about environmental consideration
  • Conserve power through computers with automatic log-off feature
  • Announcements about environmental consideration in the company
  • Reduce CO2 by collecting plastic bottle caps
  • Introduced motion sensors at toilets
  • Posters encouraging people to use the stairs
  • Save on air conditioning fees through “cool biz” and “warm biz” initiatives
  • Reuse unnecessary stationery
A poster encouraging people to use the stairs
Poster promoting “cool biz”
Reusing stationery
Collecting plastic bottle caps