Diamond Realty Management Inc.

Support for the Initiative and
Efforts to Acquire Environmental Certifications

PRI

The Principles for Responsible Investment (“PRI”) is an international network of investors organized to realize the six principles proposed to the financial services sector by the then Secretary-General of the United Nations in 2006.
The principles advocate possible actions for incorporating Environmental, Social and Governance (ESG) issues into investment decision-making process to enhance long-term investment results for beneficiaries.

The Six Principles of the PRI
  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.

For details, please see “Principles for Responsible Investment“.

TCFD (Task Force on Climate-Related Financial Disclosures)

TCFD (Task Force on Climate-Related Financial Disclosures) is the organization which was established by the Financial Stability Board (FSB) at the request of the G20, chaired by Michael Bloomberg, to consider how to disclose climate-related information and respond to financial institutions. TCFD published its final report in June 2017, encouraging companies and others to disclose the following items related to climate change related risks and opportunities.

  • Governance

    Disclose the organization’s governance around climate-related risks and opportunities.

  • Strategy

    Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.

  • Risk Management

    Disclose how the organization identifies, assesses, and manages climate-related risks.

  • Metrics and Targets

    Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

For details, please refer the “Task Force on Climate-related Financial Disclosures” website (English only).

Climate Change Resilience Policy

Purpose

We recognize that climate change is an important (material) issue that causes dramatic changes in the natural environment and social structure and has a significant impact on our management and business as a whole. Recognizing this, we have established this “Climate Change Resilience Policy” (the “Policy”) as a policy for addressing risks and opportunities related to climate change and for addressing business and strategy resilience (Toughness and Power to recover) to climate-related challenges.

Our awareness of climate-related issues

We recognize the resilience of our operations to climate change and climate-related challenges as follows:

  • As indicated in the Paris Agreement (2015), IPCC Special Report (2018), and IPCC Sixth Assessment Report (Working Group I, 2021), the progress of climate change is a scientific facts. Progress in climate change is a (material) challenge that brings dramatic changes to the natural environment and social structure and has a significant impact on our management and business as a whole.
  • As a result of the progress of climate change, the occurrence and expansion of weather and climate disasters are expected, such as intensified typhoons and heavy rains, frequent heat wave and droughts, and ongoing global sea level rise. They could have a significant impact on our business.
  • As a global effort to mitigate climate change, the transition to decarbonization of the socioeconomy is anticipated, such as establishment of a framework for reducing greenhouse gas emissions and strengthening of emission regulations. This change can have a significant impact on our business.
  • Recognizing that climate change is a systemic financial risk, investors and many other stakeholders require to disclose information on climate-related risks and opportunities. Greater transparency, particularly through promoting climate-related risk disclosures in line with the recommendations of the Climate-Related Financial Disclosure Task Force (TCFD), is a significant challenge for us.
  • Identifying, evaluating and managing climate-related risks and opportunities and enhancing the resilience of our operations are also critical to our ability to generate sustainable and stable long-term revenues in our real estate private fund operations (“our operations”).

Basic Policies and Commitments

Based on the aforementioned awareness , we have identified the following as our basic policies and commitments for climate change and resilience:

  • We support the international targets set out in the Paris Agreement and work continuously to reduce greenhouse gas emissions in order to contribute to climate change mitigation.
  • [Governance] We have established a governance structure to address climate-related risks and opportunities associated with our operations as follows:
    • The Chief Executive Officer for Climate-Related Issues shall be the President and CEO who is the Chairman of the Sustainability Committee, and the Executive Officer for Climate-Related Issues shall be the Managing Director COO.
    • The executive officer responsible for climate-related issues regularly reports to the Sustainability Committee on matters relating to climate change responses, including the identification and assessment of impacts from climate change, the management of risks and opportunities, the progress of adaptation and mitigation efforts, and the establishment of indicators and targets. The Sustainability Committee deliberates and considers responses to matters that have been reported, as necessary, and then makes decisions based on the Sustainability Committee Guidelines. The executive officer responsible for climate-related issues reports regularly to the Board of Directors on the progress made in addressing climate-related issues.
  • [Strategy] We establish and properly operate processes to identify, assess and manage the impact of climate-related risks and opportunities on our business, strategies and financial plans. For identification and evaluation of the climate-related risks and opportunities, we shall utilize the scientific and academic knowledge in a systematic and objective manner.
  • [Managing Risks and Opportunities] By managing identified climate-related risks and opportunities and driving efforts to increase resilience, we seek to realize business risk reduction and value creation opportunities and to generate sustainable and stable revenues over the long term.
  • [Metrics and Targets] We set indicators and targets for managing climate-related risks and opportunities, and with respect to indicators, we also pay attention to consistency between our operational strategies and overall risk management. Disclosure will also include the established targets and the results against the targets.
  • We endorse TCFD recommendations and disclose climate-related information about our business to investors and other stakeholders in accordance with the disclosure framework recommended.

UNGC (United Nations Global Compact)

United Nations Global Compact (UNGC) is a voluntary initiative in which each company / organization acts as a good member of society by demonstrating responsible and creative leadership, and participates in the creation of a global framework for achieving sustainable growth.Since its inauguration by UN Secretary-General Kofi Annan at the 1999 Davos Conference, by 2021, more than 17,500 companies and organizations in about 160 countries around the world have agreed, and they carry out corporate activities in accordance with 4 fields “human rights,” “labor,” “environment” and “anti-corruption” and 10 principles of the United Nations Global Compact(UNGC)

Ten Principles of the United Nations Global Compact (UNGC)

  • Human Rights

    • Principle1

      Businesses should support and respect the protection of internationally proclaimed human rights; and

    • Principle2

      make sure that they are not complicit in human rights abuses.

  • Labor

    • Principle3

      Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

    • Principle4

      the elimination of all forms of forced and compulsory labor;

    • Principle5

      the effective abolition of child labor; and

    • Principle6

      the elimination of discrimination in respect of employment and occupation.

  • Environment

    • Principle7

      Businesses are asked to support a precautionary approach to environmental challenges;

    • Principle8

      undertake initiatives to promote greater environmental responsibility; and

    • Principle9

      encourage the development and diffusion of environmentally friendly technologies.

  • Anti-corruption

    • Principle10

      Businesses should work against corruption in all its forms, including extortion and bribery.

For details, please refer the “United Nations Global Compact” website (English only).

GRESB (Result of DPR)

GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major European pension funds who played leading roles in launching Principles for Responsible Investment (PRI).

DREAM Private REIT Inc. (“DPR”), which has commissioned DREAM to manage its assets, is designated by the GRESB Real Estate Assessment in 2020, as “4 Stars” in the Relative Assessment for second consecutive year, and “Green Star” for third consecutive year, achieving high performance within the participants. In addition, DPR is selected for Asia Sector Leader in 2020 (Diversified, Non-listed), for the first time.

CASBEE Real Estate

CASBEE (Comprehensive Assessment System for Built Environment Efficiency/ Building environment Performance Comprehensive Assessment System ) is a system which evaluate and grade the environmental efficiency of the building.
For the details on CASBEE, please refer below website.
https://www.ibec.or.jp/CASBEE/english/

Certified properties (as of April 1, 2022)

  • MCUD Kawasaki Ⅰ

    • Certification rank:
      S
    • Address

      3-14-1, Kitamigata, Takatsu-ku, Kawasaki-shi, Kanagawa

    • Structure

      Steel frame structure and alloy plated steel sheet roofing

    • Floors

      4 floors above ground

    • Completion

      February 2016, March 2018 (Developed in 2 phases)

    • Total floor area (registered area)

      89,939.54㎡

  • MCUD Zama

    • Certification rank:
      S
    • Address

      2-6-35, Hironodai, Zama-shi, Kanagawa

    • Structure

      Steel frame structure and alloy plated steel sheet roofing

    • Floors

      4 floors above ground

    • Completion

      January 2018

    • Total floor area (registered area)

      18,487.67㎡

  • Kobe Minato Warehouse

    • Certification rank:
      S
    • Address

      2-1 Nadahama-cho, Nada-ku, Kobe-shi, Hyogo

    • Structure

      Steel-framed reinforced concrete/steel-framed with galvanized alloy steel sheet roof

    • Floors

      4 floors above ground

    • Completion

      February 2009

    • Total floor area (registered area)

      70,109.21㎡

  • Logistics Park Noda Funakata

    • Certification rank:
      S
    • Address

      2-1-3 Izumi, Noda-shi, Chiba

    • Structure

      Flat-roofed, steel structure/galvanized alloy steel sheet roof

    • Floors

      5 floors above ground

    • Completion

      July 2009

    • Total floor area (registered area)

      111,977.23㎡

  • Daikokucho Logistics Center

    • Certification rank:
      S
    • Address

      5-24 Daikoku-cho, Tsurumi-ku, Yokohama-shi, Kanagawa

    • Structure

      Steel/steel-framed reinforced concrete structure/galvanized alloy steel sheet roof

    • Floors

      4 floors above ground

    • Completion

      February 2010

    • Total floor area (registered area)

      89,316.19㎡

  • AEON MALL Kobe Kita

    • Certification rank:
      S
    • Address

      8-1-1 Kozudai, Kita-ku, Kobe-shi, Hyogo

    • Structure

      Steel/steel-framed reinforced concrete structure/flat roof

    • Floors

      5 floors above ground/1 basement floor

    • Completion

      November 2006

    • Total floor area (registered area)

      128,050.62㎡

  • SG Realty Maishima

    • Certification rank:
      S
    • Address

      2-5-33, Hokuko Shiratsu, Konohana-ku, Osaka-shi, Osaka

    • Structure

      Steel frame structure and alloy plated steel sheet flat roofing

    • Floors

      6 floors above ground

    • Completion

      May 2014

    • Total floor area (registered area)

      95,539.04㎡

  • Kawasaki Mizue Logistics Center

    • Certification rank:
      S
    • Address

      4-6, Mizue-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

    • Structure

      Reinforced concrete alloy plated steel sheet roofing

    • Floors

      5 floors above ground

    • Completion

      November 2008

    • Total floor area (registered area)

      102,014.46㎡

  • PUZZLE GINZA

    • Certification rank:
      S
    • Address

      2-5-19, Ginza, Chuo-ku, Tokyo

    • Structure

      Flat-roofed, steel structure

    • Floors

      10 floors above ground

    • Completion

      February 2016

    • Total floor area (registered area)

      2,399.90㎡

  • MUZA Kawasaki (Office Part)

    • Certification rank:
      S
    • Address

      1310 Omiya-cho, Saiwai-ku, Kawasaki-shi, Kanagawa

    • Structure

      Steel structure Steel/steel-framed reinforced concrete

    • Floors

      27 floors above ground/2 basement floor

    • Completion

      December 2003

    • Total floor area (registered area)

      114,322.47㎡(Whole building)

  • Ichikawa Chidoricho Logistics Center

    • Certification rank:
      S
    • Address

      13 Chidori-cho, Ichikawa-shi, Chiba

    • Structure

      Steel/steel-framed reinforced concrete structure, partially steel structure

    • Floors

      4 floors above ground

    • Completion

      February 2011

    • Total floor area (registered area)

      66,914.18㎡

  • MCUD Honmoku

    • Certification rank:
      S
    • Address

      4-2 Toyoura-cho, Naka-ku, Yokohama-shi, Kanagawa

    • Structure

      Steel structure

    • Floors

      4 floors above ground

    • Completion

      January 2016

    • Total floor area (registered area)

      66,523.47㎡

DBJ Green Building

The DBJ Green Building Certification is a certification system established by the Development Bank of Japan (“DBJ”) in April 2011 and currently, it is deployed in four typical properties: office buildings, logistics, retail residences. Based on the comprehensive evaluation system developed by DBJ, which includes consideration for the social requirements from various stakeholders surrounding the properties in addition to their environmental performance, DBJ identifies and certifies real estate properties with high environmental and social awareness (“Green Building”) sought in today’s real estate market. Certification is provided by Japan Real Estate Institute (JREI).
For the details on DBJ Green Building Certification, please refer below website.
http://igb.jp/en/index.html

Certified properties (as of April 1, 2022)

  • SG Realty Higashimatsuyama

    • Properties with exceptionally high environmental & social awareness
    • Address

      1 Bandouyama, Higashimatsuyama-shi, Saitama

    • Structure

      Steel frame structure and alloy plated steel sheet roofing

    • Floors

      3 floors above ground

    • Completion

      October 2015

    • Total floor area (registered area)

      73,902.11㎡

Our future efforts

We will work on environmental and energy saving measures and efficiency of energy use for our properties, and strive to improve the environmental value caused by consideration for the environment and reduction of environmental load.

BELS (Energy rating)

BELS is a public system that evaluates and certifies the energy-saving performance of a building that the operators are required to make efforts to display under the Act on the Improvement of Energy Consumption Performance of Buildings (Building Energy Efficiency Act) enacted in April 2016.

Certified properties (as of April 1, 2022)

  • Shinanounyu Urayasu Logistics Center

    • 5 stars
    • Address

      10-6, Chidori, Urayasu-shi, Chiba , and others(Dwelling display undeveloped area)

    • Structure

      Reinforced concrete, Flat-roofed

    • Floors

      6 floors above ground

    • Completion

      January 2001

    • Total floor area (registered area)

      14,208.00 ㎡

  • MCUD Kawasaki Ⅰ

    • 5 stars
    • Address

      3-14-1, Kitamigata, Takatsu-ku, Kawasaki-shi, Kanagawa

    • Structure

      Steel frame structure and alloy plated steel sheet roofing

    • Floors

      4 floors above ground

    • Completion

      February 2016, March 2018

    • Total floor area (registered area)

      89,939.54 ㎡

  • Ichikawa Chidoricho Logistics Center

    • 5 stars
    • Address

      13 Chidori-cho, Ichikawa-shi, Chiba

    • Structure

      Steel/steel-framed reinforced concrete structure, partially steel structure

    • Floors

      4 floors above ground

    • Completion

      February 2011

    • Total floor area (registered area)

      66,914.18 ㎡

  • Kawasaki Mizue Logistics Center

    • 2 stars
    • Address

      4-6, Mizue-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

    • Structure

      Reinforced concrete alloy plated steel sheet roofing

    • Floors

      5 floors above ground

    • Completion

      November 2008

    • Total floor area (registered area)

      102,014.46 ㎡

  • Logistics Park Noda Funakata

    • 5 stars
    • Address

      2-1-3 Izumi, Noda-shi, Chiba

    • Structure

      Flat-roofed, steel structure/galvanized alloy steel sheet roof

    • Floors

      5 floors above ground

    • Completion

      July 2009

    • Total floor area (registered area)

      111,977.23 ㎡

  • MCUD Kawasaki Ⅱ

    • 5 stars
    • Address

      3-1, Shiraishicho , Kawasaki-ku, Kawasaki-shi, Kanagawa

    • Structure

      Steel structure

    • Floors

      4 floors above ground

    • Completion

      January 2017

    • Total floor area (registered area)

      23,767.56 ㎡

  • MCUD Zama

    • 5 stars
    • Address

      2-6-35 Hironodai, Zama-shi, Kanagawa

    • Structure

      Steel sheet roofing with steel alloy plating

    • Floors

      Four floors above ground

    • Completion

      January 2018

    • Total floor area (registered area)

      18,487.67㎡

  • Kobe Minato Warehouse

    • 5 stars
    • Address

      2-1, Nadahama-cho, Nada-ku, Kobe-shi, Hyogo

    • Structure

      Reinforced concrete and steel-framed
      alloy-plated steel sheet roofing

    • Floors

      Four floors above ground

    • Completion

      February 2009

    • Total floor area (registered area)

      70,109.21㎡

  • DPR Hiratsuka Logistics Center

    • 5 stars
    • Address

      6-15,Shinmachi, Hiratsuka-shi, Kanagawa

    • Structure

      Steel frame structure and alloy plated steel sheet roofing

    • Floors

      Four floors above ground

    • Completion

      May 2016

    • Total floor area (registered area)

      29,067.95㎡

  • Daikokucho Logistics Center

    • 5 stars
    • Address

      5-24,Daikokucho,Tsurumi-ku, Yokohama-shi, Kanagawa

    • Structure

      Steel frame and steel reinforced concrete structure and alloy plated steel sheet roofing

    • Floors

      Four floors above ground

    • Completion

      February 2010

    • Total floor area (registered area)

      89,316.19㎡

Our future efforts

We will continue to promote initiatives to ensure “sustainability” of the environment and society as a whole.

Tokyo Low-Carbon Small and Medium-Sized Model Building

Tokyo Low- Carbon Small and Medium-sized Model Building is a building classified as A1 or higher, which serves as a benchmark for low-carbon buildings with low CO2 emissions, based on the “Low-Carbon Building Assessment Index (Low-Carbon Building Benchmark)” announced in May 2012 by the Tokyo Metropolitan Government, with the aim of creating a real estate market in which low-carbon buildings with low CO2 emissions are evaluated.
The Tokyo Metropolitan Government has published small and medium-sized tenant buildings that are actively working on energy conservation of A1 or higher in the low-carbon building benchmark as “Low-Carbon Small and Medium-Sized Model Buildings.”

Certified properties (as of April 1, 2022)

  • Summit Ojisakuradadori

      • Certification rank

        A3

    • Address

      5-1-40 Oji, Kita-ku, Tokyo

    • Structure

      Steel structure

    • Floors

      3 floors above ground

    • Completion

      February 2017

    • Total floor area (registered area)

      8,018.11㎡

  • Espoir Omotesando

      • Certification rank

        A3

    • Address

      4-25-15 Jingumae, Shibuya-ku, Tokyo, and others

    • Structure

      Main Building (Reinforced concrete, steel-framed land roof, copper sheet roofing)

    • Floors

      4 floors above ground / 2 basement floors

    • Completion

      December 2005

    • Total floor area (registered area)

      7,157.32㎡

  • Olympic Minowa

      • Certification rank

        A2+

    • Address

      1-14-1 Higashi-Nippori, Arakawa-ku, Tokyo

    • Structure

      Flat-roofed, steel structure

    • Floors

      3 floors above ground / 1 basement floor

    • Completion

      March 1998

    • Total floor area (registered area)

      6,379.35㎡