Environmental Initiatives

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Energy Management

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)
Item Unit FY2018 FY2019 Item FY2018 FY2019
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.

Waste Management

Unit FY2018 FY2019
Waste Weight t 8,759 5,930
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.

Water Use

Unit FY2018 FY2019
Water Use 1000m³ 224 220
  • 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.

Environmental Care

Renewable energy power generation

Total of renewable energy generation out of OJR’s entire portfolio is as below.

Unit FY2018 FY2019
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

  • Water conservation(use of well water)
  • Water conservation(use of well water)

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, Cross Residence Osaka Shinmachi etc.

  • Seafort Square Center BuildingSeafort Square Center Building
  • MG Shirokanedai BuildingMG Shirokanedai Building
  • Belle Face Osaka ShinmachiCross Residence Osaka Shinmachi
  • *The photo of this apparatus is just a sample image.
    *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
  • intervillage OH!MAGARI

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 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

  • Morioka Minami Shopping Center Sansa

Accreditations on Properties

Total of GFA coverage ratio

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.

CASBEE

◆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.

◆Certification Results

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.

◆Certification Results

BELS

◆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.

◆Certification Results

Green Finance

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).

As of April 20, 2021

AUM of OJR
(Acquisition price)
Eligible Green Assets Eligible Green Dept
688billion yen
(113 properties)
378 billion yen
(49 properties)
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).

Allocation Reporting

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

Impact Reporting

◆Accreditations on Eligible Green Assets

Please refer to the accreditations on our properties.

◆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)
FY2018 36,988 28,030 493 120 105 19,738 -
FY2019 66,535 158,690 7,745 153 571 10,593 28,550
  • 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.

External Review

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.
https://www.jcr.co.jp/en/greenfinance/