Kenedix Real Estate Fund Management, Inc. contributes to society through investment management activities and creation of real estate value.
Sustainability Policies
We have positioned initiatives on ESG (Environmental, Social and Governance) awareness as an important business management issue. To promote initiatives on ESG, we have established the following Sustainability Policies.
1.
Contribution to sustainable environmentWe make positive contribution to sustainability by reducing the negative impact to the environment through continuously reducing energy and water consumption, CO2 emission and waste; and by eliminating and managing of hazardous materials to carry out the social mission of improving the environmental performance of properties we manage.
2.
Commitment to diverse society
We contribute to realize the diverse society, considering the social impact of our properties. We endeavor to deliver built environment where safety, health and wellbeing and diversity of tenants and local community are secured.
3.
Stakeholder engagement
We manage our properties as a responsible real estate asset management company by stressing the importance of engagement with our stakeholders such as investors, tenants, business partners, local communities and property management companies.
4.
Attractive working environment
We aim to deliver attractive working environment by implementing measures to promote employees' health & wellbeing and diversity & equal opportunities. We develop capabilities of employees to help them achieve the best performance by providing various educational opportunities such as trainings.
5.
Responsible organization
We ensure compliance and sound risk management in our entire business activities. We are committed to responsible property investment by a responsible organization by aligning with global ESG initiatives and proactively disclosing ESG information.
Environmental Policies
The officers and employees of Kenedix Real Estate Fund Management, Inc. ("KFM") will undertake investment management operations in accordance with the following environmental policies. KFM supports the international goals set forth in the Paris Agreement and is committed to continuously make efforts to mitigate climate change. We also endeavor to contribute to the shift towards a circular economy by using resources efficiently.
1.
Compliance with Environmental Laws and RegulationsKFM will promote environment-friendly investment management operations by adhering to environmental laws and regulations.
2.
Promotion of Energy Conservation MeasuresKFM will systematically advance energy conservation measures at its managed properties, maintaining a strong awareness of the importance of natural and energy resources.
3.
Reduction of Environmental BurdenKFM will undertake initiatives to reduce GHG (Greenhouse gas), water consumption and waste emissions as well as promote recycling at its managed properties, underscoring its commitment to alleviating its environmental burden. In addition, KFM will take sufficient care when handling harmful substances and environmental pollutants.
4.
Challenge to Achieve Net Zero GHG EmissionsTo achieve Net Zero, KFM has established long-term targets for reducing GHG emissions of its REITs and will work internally and externally.
5.
Disclosure of Environmental InformationKFM will work to disclose necessary information to a variety of concerned parties, including investors, tenants and business partners, in such areas as its environmental policies and measures.
6.
Environmental EducationKFM will take steps to improve the environmental consciousness of its officers and employees through internal education.
Initiatives for Climate Change
Basic views
Global warming, as the main factor for climate change, has been the primal topic at international meetings and the 2015 Paris Agreement adopted a new framework for the first time in 18 years since the Kyoto Protocol. In this agreement, one of the goals is to keep the increase in global average temperature to well below 2℃, preferably to 1.5℃, compared to pre-industrial levels. In addition, at COP26 in 2021, the Glasgow Climate Pact agreed that the 1.5℃ target remains in sight and scaled up actions on dealing with climate impacts. Each Investment Corporation recognizes that efforts for climate change are the most important issue for our business activities and properties under management.
Support for TCFD recommendations
The Asset Management Company expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) and also joined the TCFD consortium, a group of domestic companies that support TCFD recommendations in October 2021.
TCFD is an international initiative established by the Financial Stability Board (“FSB”) at the request of the G20 for the purpose of discussing the disclosures of climate-related financial information and the responses by financial institutions. TCFD publishes recommendations for companies to disclose their governance, strategy, risk management, and metrics as well as targets for climate-related risks and opportunities.
On the other hand, the TCFD Consortium is a group of companies and financial institutions that support the TCFD recommendations. The consortium was established with a view to further discussions on effective corporate disclosures of climate-related information and initiatives to link disclosed information to appropriate investment decisions on the part of financial institutions and other organizations.
Each Investment Corporation and the Asset Management Company will work to expand information disclosure based on TCFD and continue to actively promote ESG (Environment, Social and Governance) initiatives based on “Sustainability Policies” established by the Asset Management Company.
For more details of initiatives for climate change, please refer to the following PDF.
Converting emergency guide lights and lighting to LED
We are encouraging reduction of electricity consumption at each of our owned properties from the perspective of environmental consideration and cost reduction. Our efforts include converting emergency guide lights, lighting in common-use areas/leased areas, etc. to LED for actively promoting reduction of light bulb replacement costs and electricity expenses.
Cooperating with communities in bicycle sharing
We have offered portions of our property sites to serve as bicycle parking for bicycle sharing introduced in various locations in Tokyo. Such cooperation enhances convenience for tenants and local residents as well as serves the public interest.
Entering into Green Lease (Note) Agreements
KDO has executed Green Lease Agreements with some of its tenants.
KDO conducted LED lighting installation works for tenant office spaces at the expense of KDO based on the agreements. A certain ratio of a reduced amount of electricity charges and maintenance costs (costs for exchanging fluorescent bulbs) has been paid by the tenants in return.
(Note) Green Lease means one of the environment-conscious initiatives to reduce environmental burden through sharing the economic merits generated as a result of energy-saving renovation works among building owners and tenants in order to lessen building owners' investment burden and thus promote such renovations to create more environmentally-friendly office buildings.
Cost reduction impact for tenants
Installation of SATOYAMA Units
A "SATOYAMA Unit" is a group planting unit of conventional seeds and plants remaining dormant in deserted village forests (called "satoyama"). We have installed the units at the entrance of KDX Residence Okachimachi. Through the installation of the "SATOYAMA Units," we contribute to activities for restoring satoyama, as well as provide a comfortable living environment and help prevent bicycles from being left in no-parking areas.
Installation of LED lights in common areas
We implement a variety of initiatives to conserve energy from the viewpoints of environmental awareness and cost reduction. As one measure in this endeavor, we replace lighting fixtures in common areas, etc. with LED lights. By doing so, we work to reduce the costs for replacing lights as well as electricity charges.
Promotion of LED lighting
We promote installation of LED lighting to reduce replacement costs and to conserve energy. We also make efforts to reduce environmental burden by undertaking initiatives to reduce CO2 and waste emissions.
Passaggio Nishiarai
Blumer HAT Kobe
Unicus Ina
Collaboration with local communities
We are making efforts to enliven local communities by holding community-participating events at our properties and cooperating in disaster prevention.
Roseo Festival
Roseo Mito
Summer Festival
Unicus Ina
Signing of agreement to
provide support in cases
of disaster
Ashico Town Ashikaga
Social contribution activities
We support the activities of Japan for UNHCR (United Nations High Commissioner for Refugees) by providing use of the common areas of our properties for their fund-raising campaigns.
Passaggio Nishiarai
LED lighting installation
We promote installation of LED lighting to reduce replacement costs and to conserve energy. Furthermore, we make efforts to reduce the environmental burden by undertaking initiatives to reduce CO2 and waste emissions.
Initiatives to raise tenants’ awareness
We have introduced an ESG service “EaSyGo” with the aim of creating a better life and work environment in one of our buildings by visualizing and improving ESG initiatives for the benefit of workers and the local community. By engaging workers in actions tied to ESG, we expect not only to raise their awareness of environmental issues, but also to increase the value of the actual building through visualizing the social and economic impacts.
Cooperating with communities in bicycle and electric kickboard sharing
We provide a part of land within the site areas of our properties and operate them as ports for bicycle sharing. Moreover, we started providing sites for new electric kickboard sharing ports.
These are expected to generate various positive impacts such as enhancement of attractiveness of the city, vitalization of community/tourism, measure to reduce abandoned bicycles, reduction of GHG emissions and promotion of health.
GRESB Membership
GRESB (Global Real Estate Sustainability Benchmark) is an annual benchmark that measures the environmental, social, and governance (ESG) considerations in the real estate sector. Many institutional investors use GRESB assessments when selecting investment targets and for dialogues with companies where they have made investments.
Kenedix Real Estate Fund Management, Inc., is a participant member of GRESB.
For more information on GRESB, visit the GRESB website from the link to the right.
Signing on to the PFA 21
The PFA21 (the Principles for Financial Action for the 21st Century) is the guideline of financial institutions to fulfill their responsibilities and roles required for the formation of a sustainable society. Signing financial institutions will implement initiatives based on the seven principles as much as possible based on their own businesses.
Kenedix Real Estate Fund Management, Inc. has signed on to the PFA21 and is ambitious to become a real estate asset management company that commits to responsible investment through the practice of the PFA21.
For more information on the 21st Century Principles of Financial Action, visit the PFA21 website from the link to the right.
Human Capital Development
As part of the engagement process with its employees, the Kenedix Group takes measures and adopts programs for developing employees' capabilities and enhancing their professional skills, as described below.
Evaluation
Employees receive their evaluation every six months. Management holds interviews with each employee to discuss his/her career opportunities.
Talent pipeline development strategy
Kenedix Real Estate Fund Management constantly accepts experienced professionals from a pool of talent from Kenedix, Inc., its sponsor.
Training and capacity development programs
Implementation of various education and training sessions
The company provides its employees with various programs to enhance their skills and capabilities such as the training for new employees, specialized teach-in sessions for sustainability and compliance, management/leadership development trainings, and English-speaking programs, etc.
Encouraging to obtain professional qualifications
The Kenedix Group supports the careers of its employees. Employees are encouraged to obtain professional qualifications, and the costs for these qualifications are covered by the company. The number of licensed employees are as follows.
Real estate notaries
79
ARES certified masters
37
Licensed senior architects
6
Real estate appraisers
2
Certified building administrators
12
Certified real estate consulting masters
11
Chartered members of SAAJ
6
Certified public accountants (Japan)
2
Certified public accountants (US)
2
Tax accountants
1
(Note) As of December 31, 2022.
Childcare leave and nursing-care leave systems
In addition to the requirement by laws and regulations, the company provides financial support for its employees travel to and from childcare facilities during their commute, and allow employees to take special leave for nursing care.
Grievance procedure
The company provides a formal grievance procedure, where employees are allowed to report any personal issues or issues regarding the company to external counselors, without being noticed by the company.
Stable employment
The company adopts various measures to improve the workplace environment so that employees can work continuously over a long period of time. The company and its sponsor, Kenedix, Inc. have never conducted lay-offs or other employment adjustment since their establishment. For reference, the latest employee turnover rate at Kenedix Real Estate Fund Management was 8.2% for 2020, 12.0% for 2021 and 3.5% for 2022.
(Note) The turnover rate figures do not include employee transfer within the Kenedix Group.
Sustainability Initiatives of the Kenedix Group
Please note that KPI’s website is only available in Japanese.
