Policy and Basic Approach
Sustainability Policy
The Daiwa House Group’s basic approach is “Creating Dreams, Building Hearts.” As a group that co-creates value for individuals, communities and people’s lifestyles, the Daiwa House Group aims to build trusting relationships with stakeholders and contribute to society through its businesses, and to realize a sustainable society by meeting the challenge of achieving “zero environmental impacts.” Daiwa House Asset Management Co., Ltd. shares the Daiwa House Group’s basic approach as DHR’s asset manager, and considers that including consideration for ESG in its real estate investment management operations contributes to DHR’s basic policy of ensuring stable revenue and steady growth of assets over the medium to long term. Therefore, we have established the following “Sustainability Policy” to guide our real estate investment management.
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1. Prevention of global warming
We will promote energy conservation measures through the installation of energy conservation equipment and so forth to realize a carbon-free society. We will also consider introduction of renewable energy power generation facilities and acquisition of properties that have such equipment installed.
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2. Harmony with the natural environment (preservation of biodiversity)
We will aim for a society that is able to pass on abundant natural resources to future generations in order to protect and improve natural capital. We will also promote planting and management considering harmony with the surrounding environment.
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3. Conservation of natural resources (protecting water resources, reducing waste)
We will work towards the realization of a recycling-oriented society by promoting water conservation measures through the installation of water conservation equipment. We will also promote 3R activities (reduce, reuse, and recycle) for resources.
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4. Prevention of chemical pollution
We will aim to realize a society where people and ecosystems do not suffer adverse effects from chemical substances by promoting reduction, substitution and appropriate management of harmful chemical substances when managing real estate, and taking efforts to minimize risks.
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5. Establishment of an internal framework and initiatives for employees
We will establish an internal framework for promoting sustainability and take steps to develop human resources by conducting regular education and training for employees. We will also aim to create workplaces where people can work safely and healthily, and workplaces where diverse employees can work flexibly.
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6. Building of trusting relationships with external stakeholders
We will aim to build trusting relationships with external stakeholders and we will work on our suppliers to enhance the satisfaction of tenant customers and promote CSR in our supply chain. We will undertake neighborhood co-existence activities with local residents.
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7. Promotion of communication through information disclosure
We will proactively disclose ESG-related information and utilize dialogues with stakeholders, such as investors, in our future business activities. Furthermore, we will aim for continuous acquisition of Green Building Certification.
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8. Compliance with laws and regulations, and risk management
We will comply with ESG-related laws and regulations. Moreover, we will strive to implement appropriate risk management, such as giving consideration for the environmental and social impacts in risk evaluations when acquiring real estate and promoting awareness of human rights.
Learn more about Daiwa House Group’s CSR Guidelines
Sustainability Promotion System
To promote awareness of ESG based on the Sustainability Policy, the Asset Manager is working to secure an appropriate system for promoting sustainability. To do this, it established the “Regulations Concerning the System for Promoting Sustainability” and rules regarding topics such as internal framework, collaboration with stakeholders, and information disclosure policy. In addition, a meeting of the Sustainability Committee must be held at least once a month, in principle, to examine goals and measures related to sustainability. The Asset Manager is working to achieve these goals and implement various measures. Moreover, in principle, the Head of the Sustainability Committee annually directs the Committee to assess the status of all sustainability initiatives and to review them as necessary.
Organizational Chart
Sustainability Committee
Committee Head | President and CEO |
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Operating officer | General Manager, Sustainability Promotion Department |
Executing officer | Head of Daiwa House REIT Division, Head of Private Fund Division |
Members | All full-time Directors, Heads of Division, General Managers (excluding Compliance Officer) and other selected officers and employees |
Observers | Outside expert advisor Compliance Officer |
Frequency of meetings | At least once a month |
Function and role | Deliberations and approvals regarding sustainability-related policy and strategy development and execution of sustainability-related operations, and reporting to the Board of Directors and the DHR Board of Directors as appropriate |
Number of Sustainability Committee Meetings Held
Fiscal year ended March 2019 | Fiscal year ended March 2020 | Fiscal year ended March 2021 | Fiscal year ended March 2022 | Fiscal year ended March 2023 |
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6 | 6 | 5 | 9 | 12 |
Number of reports on sustainability-related matters
Asset Manager Board of Directors | DHR Board of Directors | |
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Number of reports on sustainability-related matters (Fiscal Year Ended March 2023) |
12 | 12 |
Main Items Reported and Resolved (Fiscal Year Ended March 2023)
Sustainability Committee
Reports
Sustainability implementation plan and results, annual schedule of sustainability-related operations, creation of sustainability reports, sustainability evaluations, submittal of responses to/reception of results of GRESB assessments, submittal of responses to/reception of results of CDP Climate Change Program, status of environmental certifications, listing on CDP Supplier Engagement Leaderboard, application for/acquisition of 2023 Health & Productivity Management Outstanding Organizations (SME category) certification, selection as an Environmentally Sustainable
Resolution
Purchase of non-fossil certificates, ESG website improvements, revision of Sustainable Procurement Policy, fundraising (Green Loans, Sustainability Linked Loans), joining the Japan Business Initiative for Biodiversity (JBIB), participating in the 30 by 30 Alliance for Biodiversity, formulating sustainability-related budgets
Asset Manager Board of Directors and DHR Board of Directors
Monthly reports
Sustainability budget and performance, climate change-related matters, external evaluation-related matters, environmental certification of portfolio properties, seminar attendance, etc.
Individual reports
Purchase of non-fossil certificates, ESG website improvements, creation of sustainability reports, status of conclusion of Green Lease agreements, status of environmental performance, questions from investors about ESG-related initiatives in IR activities, status of initiatives on principles of customer-first operations, climate change-related risk assessment, participation in initiatives, status of climate change-related initiatives, status of internal training
Resolution
Payment of sustainability index-linked fees
Concept of Sustainability Promotion Based on the PDCA Cycle