2. Strength of OJR
  3. Initiatives for ESG

Initiatives for ESG

When conducting asset management for ORIX JREIT Inc. (“OJR”), we engage our duties with due consideration to the environment, society and governance (collectively, “ESG”) and established the following “ESG Policy”, for achieving stable growth of unitholder value, which is OJR’s management philosophy.

ESG Policy

1. Reduction of environmental load and formation of a recycle-based society
We focus on reduction of greenhouse gas emission through improvement of energy efficiency and introduction of energy-saving facilities/equipment on properties owned by OJR among other measures. Furthermore, we seek to create a recycle-based society by promoting efficient use of water and other resources as well as reduction/recycling of waste.
2. Collaboration with stakeholders
We strive to contribute in forming a sustainable society by engaging dialogue with various stakeholders, including unitholders, tenants/business partners, communities, executives and employees, through business activities.
3. Enhancing health, comfort for tenants, executives and employees
We work to improve our tenants’ health, safety and comfortability through our asset management capability. In addition, strengthening our asset competitiveness while enhancing health and comfort for our executives and employees by creating a pleasant working environment through diversity, work-life balance etc. towards the realization of our corporate slogan, “Keep Mixed”.
4. Risk management and compliance
We work to eliminate negative effects of transactions between parties, etc. that may cause conflict of interest by particularly paying close attention to conflicting interest transactions, while developing various in-house systems for appropriate risk management and thorough compliance with laws and regulations as well as internal rules.
5. ESG education/enlightenment activities
We work to enhance awareness and knowledge of ESG among executives and employees through continuous education/enlightenment activities.
6. Promotion of information disclosure and visualization of ESG
We proactively disclose information on ESG to various stakeholders, including unitholders, tenants/business partners, communities, executives and employees. As part of such efforts, we take proper initiatives, such as obtaining environmental certification for properties owned by OJR as well as ESG evaluation for real estate investment corporations, to visualize our ESG performance.

In addition, "Energy Usage/Greenhouse Gas Emission Reduction Policy", "Water Conservation Policy", and "Waste Weight Management Policy", established based on the above-mentioned ESG Policy, lay out quantitative targets, specific initiatives, and an organizational structure etc. These measures are being implemented.

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Sustainability Committee

ORIX Asset Management Corporation, OJR's asset management company, has established a Sustainability Committee composed of senior management including President and CEO as well as other board members to systematically proceed with initiatives based on our ESG policy on an ongoing basis.
The Sustainability Committee will meet four or more times per year in principle, and will share information on sustainability, examine targets for issues and individual measures, and will receive reports on progress in achieving targets and on evaluation analysis.

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MSCI Japan ESG Select Leaders Index

OJR was included in the MSCI Japan ESG Select Leaders Index as of December 2018. The MSCI Japan ESG Select Leaders Index is an index to represent companies with high ESG performance selected based on the data from the MSCI Japan IMI Top 700 Index. The Government Pension Investment Fund (GPIF) has also selected the MSCI Japan ESG Select Leaders Index as one of their ESG indices for their passive investment.
OJR sees inclusion in the index as having favorable effects to increase the liquidity of our investment units and further broaden our investor universe.

MSCI Japan ESG Select Leaders Index

> Click here to view details about the MSCI Japan ESG Select Leaders Index.

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GRESB Assessment

■What is the Global Real Estate Sustainability Benchmark?

GRESB is a benchmark established by some European pension funds to measure consideration of the environment and society by real estate companies and real estate institutions. This benchmark is used by major institutional investors in Europe, North America and Asia to make investment decisions.

>Click here to view details about the GRESB survey.

■Certification Results

GRESB Assessment

GRESB Assessment

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■What is CASBEE?

CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a comprehensive environmental performance assessment system that is under the initiative of the Ministry of Land, Infrastructure, Transport and Tourism for buildings being developed and promoted in Japan. There are 5 classifications for the 21 assessment items, namely energy/greenhouse gas, water, resource use/safety, biodiversity/land, and internal environment. Assessments are indicated based on a five-rank scale of C Rank to S Rank.

Click here to view details about CASBEE.

■Portfolio coverage ratio over total floor space on properties with CASBEE Certification

24% as of August 31, 2018 excluding land rights

■Certification Result

OJR has acquired evaluations on the following properties based on the assessment by Bureau Veritas Japan Co., Ltd.

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DBJ Green Building Certification

■What is DBJ Green Building Certification?

DBJ Green Building Certification is a system under which the objective of promoting an increase of real estate that demonstrates high consideration not only for environmental performance of the building but also disaster prevention and anticrime measures as well as societal demands from various stakeholders of real estate (Green Building), the Development Bank of Japan Inc. conducts an assessment based on a scoring model that it developed and then selects real estate that meets the needs of the times.


> DBJ Green Building For more information about authentication please click here.

■Portfolio coverage ratio over total floor space on properties with DBJ Green Building Certification

33% as of August 31, 2018 excluding land rights

■Certification Results

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■What is BELS?

BELS (Building-Housing Energy-efficiency Labeling System) is the third-party certification system to rate houses and building in accordance with duty to make effort to label energy saving performance in the Act on Improving Energy Consumption Performance for Architectural Structures. Houses and building are evaluated based on the value of BEI (Building Energy Index) derived from the primary energy consumption based on the government-designated energy consumption performance standard of architectural structures.
The evaluation and indication based on the system shall be implemented by the registered organizations as operators of BELS operations, which fall under registered housing performance evaluation organizations that are members of the evaluation association, designated construction confirmation authorities or registered building research agencies.
The evaluation is given according to a scale of one to five stars.

■Portfolio coverage ratio over total floor space on properties with BELS

17% as of August 31, 2018 excluding land rights

■Certification Result

Based on evaluation of Japan ERI CO.,LTD., and The Building Center of Japan, OJR received the certification for the following properties.

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Membership in Green Building Japan(GBJ)

OJR became a member of Green Building Japan (“GBJ”) as of August 24, 2018 in support of GBJ’s aims as a forum connecting people interested in promoting a sustainable built environment .


※Website of Green Building Japan(GBJ)


Energy Management

OJR compiles accurate and transparent data by collectively managing the aggregation of its energy usage and CO₂ emissions via an outsourcing contractor. Furthermore, this data is analyzed in order to continuously manage energy reductions.

< Energy Usage Statistics (for properties under control of OJR) >
  Electric Power Consumption
Electric Power Consumption
District Heating & Cooling
District Heating & Cooling
Fuel Intensity
Fuel Intensity
Water Use Intensity
Water Use Intensity
CO2 Emissions
CO₂ Emissions*
          SCOPE1 SCOPE2
FY2017 98,702 167,762 8,332 520   1 58
FY2016 102,853 170,502 11,036 691 2 60
FY2015 89,432 57,701 6,631 519   1 48
Icons made by Vectors Market from www.flaticon.com is licensed by CC 3.0 BY
As for the numerical targets, please see "Energy Usage/Greenhouse Gas Emission Reduction Policy" as well as "Water Conservation Policy".
CO₂ emissions are calculated based on the method defined in the Ministry of the Environment's "Mandatory Greenhouse Gas Accounting and Reporting System."
Increase of each energy statistics is due to acquisition of multi-purpose facilities, etc. during FY2016.
Scope 1 refers to direct emissions of greenhouse gases originating from the use of fuels and other materials in facilities.
Scope 2 refers to indirect emissions resulting from the use of electricity, heat and steam supplied by other companies.
Plese see the following details on Scope 1 and 2.

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Waste Management

  Electric Power Consumption
weight of waste
  CO2 Emissions
Recycling Rate
FY2017 8,430   53.4%
FY2016 7,549 60.7%
FY2015 6,992   64.8%
Icons made by Vectors Market from www.flaticon.com is licensed by CC 3.0 BY
As for the numerical target, please see "Waste Weight Management Policy".
The data for FY2015 is the total weight of the waste reported from April 2015 to March 2016 for 51 properties at facilities where properties were owned as of the end of March 2016, and the data for FY2016 is the total weight of the waste reported from April 2016 to March 2017 for 53 properties at facilities where properties were owned as of the end of March 2017, and the data for FY2017 is the total weight of the waste reported from April 2017 to March 2018 for 60 properties at facilities where properties were owned as of the end of March 2018.

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Communication with Stakeholders

OJR will continue to contribute to building a sustainable society through business dialogue with our investors, tenants/business partners, local communities and employees.

■Communication with Stakeholders

Communication with Stakeholders

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Balanced pursuit of tenant comfort and environmental care

■Pursuit of tenant comfort

Nagoya Itochu Building:Example of seismic retrofitting
Before renovation After renovation
Before renovation After renovation

By covering the existing exterior with a glass curtain wall, we modernized the image of the building. Because it was a building that was designed and constructed under the old earthquake resistance standards, upon acquiring certification under the Act on Promotion of Seismic Retrofitting of Buildings, we completed seismic retrofitting.

Round-Cross Shiba Daimon:Example of exterior and Common area renovations
Before renovation After renovation
Before renovation After renovation
Before renovation After renovation

Construction was done to move the parking space, widen the entrance area, in order to raise satisfaction and convenience for tenants.

Round-Cross Tamachi:Example of renovations to first floor Common area and bathrooms on each floor
Before renovation After renovation
Before renovation After renovation
Before renovation After renovation
aune Kohoku:Attract restaurant tenant, install common rest space
Image drawing of renovation After renovation
Image drawing of renovation After renovation

Upon tenant replacement, we attracted a restaurant tenant with a high ability to attract customers. In order to improve the convenience of the customers, we also installed a common rest space.


■Environmental care

Solar panel

Property:Komaki Logistics Center
Generates a portion of the electricity consumed at the office building

  • Komaki Logistics center
  • Komaki Logistics center

Water conservation(use of well water)

Well water is used to rinse toilets and the cold/heated water for the air conditioning system


Properties:ORE Sapporo Building
Well water is used to rinse toilets.

  • ORE Sapporo Building
  • ORE Sapporo Building

■LED illumination


Properties:Seafort Square Center Building, MG Shirokanedai Building, Belle Face Osaka Shinmachi etc.

  • Seafort Square Center BuildingSeafort Square Center Building
  • MG Shirokanedai BuildingMG Shirokanedai Building
  • Belle Face Osaka ShinmachiBelle Face Osaka Shinmachi
  • LED
    *The photo of this apparatus is just a sample image.

- Conducted with purposes of incresing tenant satisfaction, improving building specifications, reducing costs, etc.

- There are cases where rents increase due to coinciding tenant's needs for installing LED lightings

■Reducing electric power consumption and CO₂ emissions

Property:intervillage OH!MAGARI
We are working with tenants to reduce electric power consumption and CO₂ emissions through a program that makes it possible to compare electric power consumption, perform analysis, and manage targets.

  • intervillage OH!MAGARI
  • mietaro

■Contributing to the Health and Comfort of Tenants and the Community

OJR has contributed to the health and comfort of its tenants and the community by installing a bicycle sharing system at its MG Ichigaya Building. This initiative also relates to OJR’s response to the issue of climate change through the reduction of CO2 emissions and other measures.

  • Contributing to the Health and Comfort of Tenants and the Community

■Green Lease

For new lease agreements on many properties, they include clauses regarding environmental issues such as reduction of energy usage, waste weightage and requesting tenants cooperation when acquiring green building certifications.
Furthermore, OJR has addressed green leases arising from refurbishment such as the example below.

An example of green lease
Property:Morioka Minami Shopping Center Sansa
Introduction of green lease, in which OJR benefits (in electricity bill reductions) together with tenants from energy-saving improvement investments (LED lighting installation work) being implemented

  • Morioka Minami Shopping Center Sansa

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Connections with Business Partners

ORIX Asset Management Corporation, ORIX JREIT’s asset management company, aims to create a sustainable society, as stipulated in the ESG Policy, through its asset management. To this end, “ESG Policy on Procurement and Other Transactions” was established to rigorously ensure that property managers and other business partners take into account the environment and social norms during Procurement and other transactions.
OJR also at times will enter in property management agreements with property managers to include clauses regarding ESG.
OJR assesses the following ESG related measures on business partners related to outsourcing contracts in addition to evaluating management capability and service quality, OJR will conduct this assessment upon each contract followed by once every year.
Measures on environmental issues (E) ・Awareness of energy conservation and reduction of environmental load,
 including reduction of energy consumption and waste
・Priority on environment- and health-friendly products and service procurement
・Formulation of policies and establishment of systems for environmental
 friendliness and energy conservation
Measures on social issues (S) ・Respect for basic human rights
・Consideration of occupational health and safety in workplaces
・Elimination of human rights violations, including unfair discrimination, forced
 labor and child labor
Measures on governance (G) ・Compliance with all laws and regulations and internal company rules
・Conduct with a strong sense of ethics

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Connections with Communities

We carry out initiatives that contribute to society with the aim of coexisting with and revitalizing the communities.

We have organized the summer event, Seafort Paradise, at Tennozu Seafort Square
Property:Seafort Square Center Building
We have organized the summer event, Seafort Paradise, at Tennozu Seafort Square
We have supported the summer event, "Act de yaramaika Hamamatsu matsuri.
Property:Hamamatsu Act Tower
We have support the summer event, Act de yaramaika Hamamatsu matsuri
Together with the Promotion Committee of Yokohama Minato Mirai 21 Area, we played a key role in invigorating the community.
Property:Cross Gate
Coexisting with the region's nature and ecosystems and contributing to local community
Property:Hotel Nikko Himeji
To conserve biodiversity, we are revamping plantings using native plants to avoid disturbling the region's original ecosystem.
Creating an open local community whereby restaurants are renovated barrier-free and leafy vegetables produced in city's disability support centers are being used.
Before renovation After renovation
Before renovation After renovation
Contributions to communities
AED for use by anyone in the community were installed in commercial facilities owned by OJR, which helped to improve the safety and security of tenants and people in the community.

【Example of AED installation】
Example of AED installation

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Proactive IR activities

■IR activities during the latest year

IR activities Number of times
Financial results briefing 2
Investor meetings 221(of which 89 were overseas)

Events for individual investors
7 in total
Financial results briefings for individual unitholders 5 in total
Property tours for institutional investors 3
As of April 19, 2018
We proactively visit institutional investors in Japan and institutional investors in Europe, North America, and Asia.
We are also involved in IR activities that provide opportunities for direct communication with individual investors by holding briefings for individual unitholders and participating in events for individual investors held by securities companies.

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Connections with Employees

As a member of the ORIX Group, ORIX Asset Management Corporation, OJR's asset management company pro-actively works to enhance various programs and improve the working environment for employees.

ORIX Asset Management Corporation Human Capital Strategies

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Notes: 1. This diagram illustrates the main contractual relationships and contract counterparties centered on ORIX JREIT, in the case of real estate owned directly by ORIX JREIT. Those appearing here may differ in cases where ORIX JREIT retains real estate trust beneficiary interests or holds real estate in other formats.
Notes: 2. Excluding residential properties, in principle.
Notes: 3. Residential properties only, in principle.
An investment corporation established based on the Act on Investment Trust and Investment Corporations holds assets under management. Investment corprations are prohibited to hire employees under law, and are required to outsource operations. ORIX Asset Management Corporation has been entrusted by OJR with the authority related to the management of assets, and invests in actual real estate and real estate trust beneficiary interests with the funds invested by investors and borrowing from financial instiutions.

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Summary of the asset management structure used by OJR and its Asset Management Company

OJR entrusts asset management operations and institutional management to ORIX Asset Management Corporation (OAM), as the Asset Management Company. OAM’s fundamental management policy is to achieve highly consistent, efficient and transparent investment operations so as to grow OJR into a sound and highly profitable J-REIT. OJR has constructed a framework for pursuing business activities and supervising management, which is incorporated into OJR’s daily business.

Organizational Chart

Organizational Chart

Based on Article 95 of the Act on Investment Trusts and Investment Corporations, OJR's Board of Directors consists of one executive director, as well as three supervisory directors, which exceeds the number of executive directors by more than one.
Based on Article 109 of the Act, the executive director executes the duties of OJR and represents OJR.
Based on Article 111 of the Act, supervisory directors supervise the executive director's execution of duties. Moreover, in line with Article 100 of the Act, a person who has a personal interest in OJR or ORIX Asset Management Corporation cannot be appointed as supervisory director.
Directors' remuneration will not exceed 800,000 yen per person per month, with the monthly amount to be determined by the Board of Directors. Please refer to Article 31 of the Articles of Incorporation for more details. The Article of Incorporation are revised by the decision of the General Meeting of Unitholders.
The remuneration paid to each director is disclose in the Asset Management Report for each fiscal period.

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Related Links
Portfolio Map

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