- OJR's Approach to ESG
- Initiatives towards Climate Change
- Environmental Initiatives
- Social Initiatives
- Governance Initiatives
OJR compiles accurate and transparent data by collectively managing the aggregation of its energy usage and Greenhouse Gas Emission via an outsourcing contractor. Furthermore, this data is analyzed in order to continuously manage energy reductions.
|Energy Consumption||Greenhouse Gas Emission（t-CO₂）|
|Electric Power Consumption||MWh||90,615||89,522||Direct Emission(SCOPE1)||1,348||657|
|Fuel Use||MWh||7,416||7,745||Indirect Emission(SCOPE2)||53,594||13,504|
|District Heating & Cooling Use||GJ||167,857||158,690||Emission by Tenants(SCOPE3)||-||62,985|
|(Conversion)||MWh||46,627||44,081||Portion under management by OJR out of SCOPE3||-||36,999|
|Portion under management by tenants out of SCOPE3||-||25,986|
|Total of Energy Consumption||MWh||144,658||141,348||Total of Emission||-||77,146|
|(Crude Oil Equivalent)||Kl||28,144||27,672||Portion under management by OJR out of total emission||54,942||51,160|
|Energy Consumption Intensity||Kl/㎡||0.04235||0.04126||Greenhouse Gas Emission Intensity||0.08268||0.07628|
|Floor area as a basis of Intensity calculation(㎡)||664,526||670,725||Floor area as a basis of Intensity calculation(㎡)||664,526||670,725|
- As for the numerical targets, please see "Guidelines for Reducing Energy and Greenhouse Gases".
- Energy consumption is calculated in accordance with the Energy Conservation Act, covering the portion of the properties for which are under OJR’s operational control of energy management.
- The electricity emission factors for greenhouse gas emissions are based on the base emission factors for each electric utility in FY2018, which are to be used in the calculation of greenhouse gas emissions under the Greenhouse Gas Emissions Calculation, Reporting and Publication System, based on the Global Warming Countermeasure Promotion Law.
- Tenant emissions are used as Scope 3 in calculating greenhouse gas emissions in FY2019.
・Calculated figures corresponding to SCOPE1 and SCOPE2 in FY 2018.
- The primary units of greenhouse gas emissions are calculated for the portion of emissions for which are under OJR’s operational control.
- Each fiscal year is the period from April to March of the following year. The fiscal year 2018 refers to the period from April 2018 through March 2019, and the period for each year thereafter is displayed.
|Number of Covered Properties||-||60||69|
|Landfill Disposal Rate||%||1.57%||1.47%|
- As for the numerical target, please see "Guidelines for Management of Resources and Waste".
- Waste weight includes gross industrial waste and gross general waste.
- Fiscal year 2018 data indicates the waste weight from April 2018 to March 2019 for the above eligible properties for which data were submitted for facilities where the buildings were owned as of March 31, 2019. Data for subsequent years indicates the total waste weight for each year since the preceding year.
- For fiscal year 2019, the amount of waste generated decreased due to the impact of the corona virus pandemic on some large facilities, which made it difficult to handle data submissions.
- As for the numerical target, please see "Guidelines for Management of Resources and Waste".
- Indicates water usage for common areas of the properties under OJR’s operational control.
- Each fiscal year is the period from April to March of the following year. FY2018 refers to the period from April 2018 to March 2019. Subsequent years refer to the period of one year from the previous fiscal year.
Renewable energy power generation
Total of renewable energy generation out of OJR’s entire portfolio is as below.
|Renewable Energy Generation||kWh||5,860||5,852|
Water conservation（use of well water）
Properties：SAPPORO BRICK CUBE
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.
- Seafort Square Center Building
- MG Shirokanedai Building
- Cross Residence Osaka Shinmachi
*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
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.
For new lease agreements on many properties, they include clauses regarding environmental issues such as reduction of energy usage, waste weightage and requesting tenants collaboration 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
Accreditations on Properties
Total of GFA coverage ratio
- Total of GFA (Gross Floor Area) coverage ratio is calculated based on the registered gross floor space excluding land rights. In the case where the certification was acquired for a specific section of a multi usage facility, we use the entire floor space of this property. Some types of certification had been acquired for some properties, but the area of these properties was not double counted.
- Each point in the graph refers to the date of the financial announcement for each period.
◆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.
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.
> Click here to view details about DBJ Green Building Certification.
◆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.
OJR aims to further promote ESG considerations in our asset management and strengthen our financial foundation through broadening our investor universe, particulary those interested in ESG investment through green finance.
Green Finance Framework
◆Use of proceeds
Funds acquired through green financing shall be allotted to funds for the acquisition of assets which meet the eligible criteria (Note 1) (hereinafter referred to as “Eligible Green Assets”), funds for renovation work which meets the eligible criteria (Note 2) or funds for repayment of loans or redemption of investment corporation bonds required for such purposes.
◆Project evaluation and selection process
The Sustainability Committee is composed of members including CEO of ORIX Asset Management Corporation where it examines the asset selection, evaluation and funding methods that meet the “Eligible Criteria”. The ultimate decision is made by the Investment Committee.
◆Management of Proceeds
The total amount of funds procured through green bonds or green loans shall be managed so as not to exceed the eligible green debt (Note 3).
|AUM of OJR
|Eligible Green Assets||Eligible Green Dept|
|378 billion yen
|164 billion yen|
- Based on acquisition price
- Calculation Method of Dept of Eligible Green Project
Eligible Green Assets × LTV at the end of FP38 ended Feb. 28, 2021 (43.5%)
- Assets meeting the eligible criteria (Eligible Green Assets) are assets that have acquired or are scheduled to acquire/recertify the following certifications.
・3-star, 4-star or 5-star ratings in DBJ Green Building Certification
・3-star, 4-star or 5-star ratings in BELS Certification
・B+, A or S rankings in CASBEE Certification
・Silver, gold or platinum ratings in LEED Certification
- Renovation work which meets the eligible criteria is renovation work, etc. which correspond to either of the following.
・Renovation work which aim to increase the rating or ranking by more than one in one of the certifications for Eligible Green Assets
・Renovation work which is able to reduce energy consumption, CO₂ emissions or water use by 30% or more
・Installation or acquisition of equipment related to renewable energy
- Eligible green debt is the amount of debt calculated by multiplying the total acquisition price of Eligible Green Assets with the actual ratio of interest-bearing debt against total assets (LTV) (as of the end of the last period for which calculation on the date of payment of investment corporation bonds or drawdown date is possible, or as of the end of February of the year).
|Name||Total issue amount (billion yen)||Date of payment||Maturity||Appropriate amount of green finance (billion yen)||Unfilled amount of green finance (billion yen)|
|1st OJR Green Bonds||7.0||July 18, 2019||July 18, 2024||7.0||0|
|2nd OJR Green Bonds||2.0||July 7, 2020||July 6, 2035||2.0||0|
|3rd OJR Green Bonds||3.0||July 1, 2021||June 30, 2031||3.0||0|
◆Accreditations on Eligible Green Assets
◆Energy Consumption, Water Use and CO₂ Emissions of Eligible Green Assets
|Electric Power Consumption (MWh)||District Heating & Cooling (GJ)||Fuel Consumption (MWh)||Water Use (km³)||CO₂ Emissions (t-CO₂)|
|Direct Emission (SCOPE1)||Indirect Emission (SCOPE2)||Emission by tenants (SCOPE3)|
- The figures in the above table each indicate the total energy usage of the green-qualified properties for which OJR is the energy management authority. The number of properties included in the total may change from year to year.
- CO₂ emissions are calculated based on the method defined in the Ministry of the Environment's "Mandatory Greenhouse Gas Accounting and Reporting System”.
- Starting from this fiscal year, CO2 emissions by tenants are calculated as Scope 3. For fiscal year 2018, calculations are based on Scope 1 and Scope 2.
Regarding the eligibility of the green finance framework, OJR has received a Green 1 (F) rating, the highest rating, in the JCR Green Finance Framework Evaluation from the Japan Credit Rating Agency, Ltd. (JCR), an institution which assesses green finance.