• OJR's Approach to ESG
• Initiatives towards Climate Change
• Environmental Initiatives
• Social Initiatives
• Governance Initiatives
• Sustainable Finance

• ESG Policy
• Material issues - Our Sustainability Priorities -
• Sustainability Committee
• Membership and Signatories
• Awards and Accreditations
• ESG Report
• Sustainability-related disclosures (SFDR)

ESG Policy

ORIX Asset Management Corporation, the asset manager for ORIX JREIT Inc. (hereafter, “OJR”), has established our ESG Policy as follows.

We at ORIX Asset Management Corporation, believe that it is vital to consider issues surrounding ESG (environment, society and governance) in order to achieve sustainable asset management. We have established our ESG Policy to put these beliefs into practice and to achieve stable growth in unitholder value, which is in line with OJR's management philosophy.

＜Basic stance＞

• Based on a management philosophy that aims for the stable growth of unitholder value, we recognize risks and opportunities from an ESG standpoint and identify material issues for sustainability and set individual targets to address those material issues. By acting accordingly, we believe we can achieve medium-to-long-term growth of OJR and respond to social issues such as those listed as the United Nation’s SDGs.
• We implement the Sustainability Policy of the ORIX Group, to which we belong, through our actions and by supporting and respecting the international norms and initiatives noted in a separate appendix (including international norms and others that the ORIX Group supports).

1. Respect for human rights and compliance with labor practices

• In keeping with the ORIX Group’s Human Rights Policy and international norms, we respect human rights and do not tolerate any type of discrimination or inhumane treatment for reasons of race, nationality, gender, disability, religion, or age, and we strive to guarantee equal opportunities of all employees as well as tenants and business partners. This includes, but is not limited to, freedom of association, the right to collective bargaining, the elimination of forced labor, unfair low-wage labor and long work hours, and a ban on child labor.
• We will foster a culture that embraces diverse perspectives and values, establish an environment where diversity can flourish and foster mutual growth, and promote efforts towards DE&I (Diversity, Equity, and Inclusion).
• We strive to promote opportunities for employment that are motivating and productive and endeavor to provide working environments and practices that are free, fair, safe and respects human rights.

2. Response to climate change

• We view climate change as a globally shared priority issue and as a medium-to-long-term risk. In order to realize a decarbonized society, we take mitigation measures to reduce the emission of greenhouse gases and have adaptation strategies to not only reduce the impact but also to turn it into an opportunity. Specifically, we aim to achieve net-zero GHG emissions by 2050 by promoting energy management, such as improving the energy efficiency of our properties, promoting energy conservation, and introducing renewable energy.

3. Consideration for the environment (response to the ecosystem, biodiversity, waste and water resources)

• We ascertain and assess the impact that our business activities have on the environment (e.g. the use of natural habitats, ecosystems and resources, and the emission of pollutants and waste) from the viewpoint of risks and sustainability and strive to reduce our environmental load by complying with environmental laws and taking a preventive approach.
• We contribute to a recycling-oriented society by efficiently using water and other resources, reducing and recycling waste, and preventing pollution by appropriately managing toxic substances and wastewater.
• We consider our impact on biodiversity and ecosystems and strive to protect the environment.

4. Collaboration with stakeholders

• We hold dialogues with our stakeholders including unitholders, tenants and business partners, local communities and our executives and employees. This not only raises reliability and transparency, but the feedback received from stakeholders is also reflected in business activities.
• We contribute to the development of local communities through participation and communication.
• We encourage business partners such as property managers and building managers to implement the matters laid out in this policy and promote adherence throughout the supply chain.
• We collaborate with financial institutions to promote sustainable finance initiatives.

5. Promotion of health and comfort for customers (tenants and users)

• We contribute to improve customer satisfaction as well as community health and sanitation levels while at the same time enhancing the value of our properties through asset management focused on health, safety and comfort.

6．Response to executives and employees

• We are mindful of the importance of a healthy and comfortable work environment for executives and employees by promoting DE&I and work-life balance.
• We endeavor to develop the skills of executives and employees, and strive to hire diverse and talented staff and improve the quality and efficiency of the operations we provide.
• We continually provide education and awareness-building activities on ESG to raise the understanding and knowledge of executives and employees.

7. Risk management, compliance, and fair business practices

• We comply with relevant laws and regulations and our actions are governed by the highest ethical standards. We conduct our business in a fair manner.
• We have established internal system designed to appropriately manage risk and compliance and work to eliminate conflicts of interest.
• We do not tolerate corruption such as bribery, money laundering, fraudulent transactions, or transactions with anti-social forces.

8. 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 initiatives that help quantify our ESG performance, such as obtaining environmental certification for properties owned by OJR as well as ESG evaluation for real estate investment corporations.

＞Click here to view the appendix of ESG Policy

In addition, "Guidelines for Reducing Energy and Greenhouse Gases", "Guidelines for Management of Resources and Waste", "ESG Guidelines for Procurement and Other Transactions", and "Guidelines for ESG Investment and Management", "Guidelines for Sustainable Finance", established based on the above-mentioned ESG Policy, lay out quantitative targets, specific initiatives, and an organizational structure etc. These measures are being implemented.

Material issues – Our Sustainability Priorities -

In February 2019, ORIX JREIT Inc. (“OJR”) defined material issues for sustainability that incorporate the perspective on the environment, society and governance (collectively, “ESG”), based on our management philosophy: Aim for sustainable growth of unitholder value.
By setting targets for each issue and going through the plan-do-check-act (“PDCA”) cycle to achieve them, we will work to help resolve the globally shared SDGs (social issues of the sustainable development goals) adopted by the United Nations in 2015, and to realize the medium-to-long-term growth of OJR.

	OJR's Material Issues	Outline	Relevant SDGs
	Promotion of climate change countermeasures (reduction of greenhouse gas emissions)	•Reduce greenhouse gas emissions by installing equipment that contributes to improving energy efficiency and energy saving at our properties. •Work for visualization of objectivity and performance by acquiring various “green building” certifications for these properties.
	Waste management	•Promote efficient use of resources including water, waste reduction and recycling. •When disposing of waste, comply with laws and regulations and dispose properly including hazardous substances.
	Improve the health, safety and well-being for customers (tenants and users)	•At our properties, improve the satisfaction of customers and enhance the competitiveness of the properties by conducting environmental and energy-saving measures and asset management aimed at improving health, safety and well-being. •Work for visualization of objectivity and performance by acquiring various “green building” certifications for these properties. •Increase the intangible and tangible resiliency of properties through our asset management so that it leads to customer satisfaction.
	Information disclosure and dialogue with stakeholders	•Contribute to a sustainable society by engaging in dialogue through our business activities with various related parties including investors, customers, business partners, local communities, officers and employees. •Proactively disclose ESG-related information to aforementioned various related parties. •In addition to evaluation and certification of our properties, make other appropriate efforts including ESG assessments of OJR.
	Collaboration with property managers (“PM”) and building managers (“BM”)	•Request business partners such as PM and BM to understand and collaborate with the intent and content of our ESG Policy. Also, when selecting and evaluating business partners, consider the status of their compliance with our guidelines. •Cooperate with PM and BM to ascertain and calculate energy consumption and greenhouse gas emissions, and to promote reduction efforts. •Share and address initiatives to reduce energy consumption and greenhouse gas emissions between PM/ BM and tenants. •Raise awareness of ESG among PM and BM.
	Good workplace environment including diversity	•Aim to improve the health and well-being of officers and employees by giving consideration to a good workplace environment including diversity and work-life balance.
	Development of the competencies of executives and employees	•Conduct ongoing education and awareness-raising activities regarding ESG for officers and employees, and strive to improve awareness and knowledge. •Retain the knowledge and capabilities necessary for work, promote acquisition of qualifications to improve the quality and efficiency of work provided. •Secure diverse and capable human resources by developing the competencies of officers and employees.
	Thorough compliance	•Maintain an internal system to ensure appropriate risk management and thorough compliance with laws and regulations. •In particular, close watch on conflicts of interest and work to eliminate abuses in transactions between interested parties where conflict of interest is a concern.

KPI Targets Corresponding to Material Issues (Numerical Targets)

	Period	Targeted period	Targets
Promotion of Climate Change Countermeasures (reduction of greenhouse gas emissions)	Long Period	2050	Aim for net zero by 2050 in accordance with the Paris Agreement. Reduce GHG emissions 90% or more over 2021 (including all Scopes 1, 2 and 3) in 2050.
	Middle Period	2030	Reduce GHG emissions 42% over 2021 (including Scopes 1, 2 and areas of Scope 3 over which OJR has operational control). Reduce GHG emission intensity 42% over 2021 (including energy-derived emissions over which OJR has operational control in Scopes 1, 2 and 3). Derive 50% of electricity from renewable energy. Achieve Green Building Certification ratio of 80% or higher based on floor area.
	Short Period		Aiming to reduce by an average of 1% or more a year the energy consumption intensity of the properties based on the intensity over the past five years.
Waste Management	Middle Period	2030	We measure the amount of waste (both waste managed by OJR and other detectable waste) and maintain the landfill disposal rate at 1% or less in 2030.
Management of Water Resources	Short Period		We ascertain the water use in properties held by OJR, promote its efficient use, and set a target of no increase in water use compared to the previous year.
Sustainable Finance	Middle Period	2030	Sustainable finance ratio in 2030: 50％ Sustainable finance ratio in 2027: 30％

Material Issues Identification Process

Sustainability Committee

ORIX Asset Management Corporation, OJR‘s asset management company, has established a Sustainability Committee to systematically proceed with initiatives based on our ESG policy on an ongoing basis. The Sustainability Committee is composed of OAM’s President and CEO (chairman of the committee) and the officers in charge of each department, including all other directors. They meet four or more times per year in principle, and will deliberate and receive reports on sustainability-related matters including climate change and ESG risks. Activity reports and future plan are reported to the board of directors of OJR once a year.

Membership and Signatories

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)
https://www.gbj.or.jp/english/

Supporting the TCFD Recommendations

ORIX Asset Management Corporation, OJR's asset management company, has signed on as a supporter of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board and joined the Japan TCFD Consortium in October 2019.

The TCFD released a final recommendation report to encourage voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to investors, lenders, insurers, and other stakeholders.

> Click here to view details about the TCFD and here to view details about the TCFD Consortium.

Signatory of Principles for Responsible Investment (PRI)

ORIX Asset Management Corporation, OJR's asset management company, became signatory of “Principles for Responsible Investment (PRI)” in April 2022.

> Click here to view details about PRI.

Signatory of Principles for Financial Action for the 21st Century

ORIX Asset Management Corporation, OJR's asset management company, is a signatory of “Principles for Financial Action towards a Sustainable Society (also known as Principles for Financial Action for the 21st Century)” since March 2019. The 7 principles were established as the action guidelines for financial institutions seeking to fulfill their roles and responsibilities necessary for a sustainable society. ORIX Asset Management Corporation fully endorses the concept of the principles.

> Click here to view details about the 21 century financial behavior principle.

Signatory of Japan Climate Initiative (JCI)

ORIX Asset Management Corporation, OJR's asset management company, became a signatory of JCI in 2022.
JCI is a network of non-governmental actors in Japan that are making proactive efforts to achieve the goal of limiting global warming to 1.5℃.

Awards and Accreditations

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

CDP Assessment

CDP(Carbon Disclosure Project) is an international environmental NGO established in the UK in 2000 to promote corporate environmental disclosure upon request from institutional investors and others.

CDP assessment questionnaire spanning topics such as governance, risk management, business strategy, and targets and performance is used to score companies among eight levels: Leadership (A/A‐), Management (B/B‐), Awareness (C/C‐), and Disclosure (D/D‐).

We received an A- rating on the Climate Change Assessment by CDP in 2022 and 2023.

＞Click here to view details about CDP (Carbon Disclosure Project)
＞Click here to view details about OJR’s Initiatives towards Climate Change

ESG Finance Awards

◆The ESG Finance Awards

The ESG Finance Awards was established by the Ministry of the Environment in 2019 to recognize and reward the efforts of investors, financial institutions, and other organizations that are actively engaged in ESG finance and green projects and have made an outstanding impact on the environment and society, as well as companies that incorporate important environment-related opportunities and risks into their management strategies to enhance corporate value and generate an impact on corporate value and the environment.

◆Certification Results

OJR won silver in the fundraiser category at the Ministry of the Environment’s 4th ESG Finance Awards.

Main Reasons for winning:
The novelty and impact of the OJR’s initiatives, such as being the first J-REIT to raise funds through positive impact finance based on the UNEP FI framework, were highly evaluated. The Silver Award was given because of the high expectations for future development, including the challenge to identify the impact of social items such as improving customer health, safety, and comfort and cooperation with stakeholders and supply chains, as well as climate change measures and waste and water resource management.

OJR won bronze in the fundraiser category at the Ministry of the Environment’s 5th ESG Finance Awards.

Main Reasons for winning:
OJR has set an ambitious target for sustainable finance ratio of over 50% by March 2030, and formulated their action plan as a “transition roadmap” in order to achieve GHG emission reduction set as SPT “Sustainability Performance Target”. The action plan was also evaluated since OJR developed a measure involving tenants and aims to contribute to the decarbonization of related supply and value chains. The Bronze Award was given in anticipation of expanding initiatives for Scope3, especially for embodied carbon reduction.

>Click here to view details about OJR’s Sustainable Finance including this ESG Finance Awards.

ESG Report

OJR has issued ESG report with the objective of reporting to unitholders and all other stakeholders regarding OJR/OAM’s approach to ESG as well as the ESG initiatives taken by OJR and OAM.
For GRI Standards and SASB Standards, please refer to Appendix of our ESG Report.

• January 2024ESG Report 2023 (Revised)PDF(9.6MB)

View past reports

Sustainability-related disclosures (SFDR)

Please see our dedicated page.