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 group aims to build trust 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.”
DHR shares the basic stance of the Daiwa House Group and engages in Green and Sustainability Finance to further promote real estate investment management that considers ESG.
Green Finance Framework
Third-party Evaluation
DHR has obtained a rating of “Green 1 (F)” for our Green Finance Framework. This is the highest rating offered in JCR Green Finance Framework Evaluations conducted by the third party, Japan Credit Rating Agency, Ltd. (JCR).
For details on this evaluation, see the JCR website at https://www.jcr.co.jp/en/greenfinance/
Eligibility Criteria
Funds procured through Green Bonds or Green Loans are applied to the acquisition of eligible green assets that meet the eligibility criteria below, refinancing of those funds or funding or refinancing renovation work.
Eligible green assets
Properties that have received or will receive one of the following four third-party certifications:
- DBJ Green Building Certification: 3 Stars, 4 Stars or 5 Stars
- CASBEE for Real Estate Certification: B+ rating to S rating
- BELS Certification: 3 Stars, 4 Stars or 5 Stars
- LEED Certification: Silver, Gold or Platinum
Renovation work
Renovation work that can reduce energy consumption, CO2 emissions or water usage by 30% or more
Management of Financing
The eligible green debt amount is calculated by multiplying the sum of the total acquisition price of eligible green assets and the total amount of renovation work that meets the eligibility criterion 2 (total amount of eligible green assets) by the interest-bearing debt to total assets ratio (LTV) as of the end of the most recent fiscal period. This is the maximum amount for Green Finance.
Period | February 2024 (36th Fiscal Period) |
---|---|
Total amount of eligible green assets (millions of yen) | 393,819 |
LTV | 42.8% |
Eligible green debt amount (millions of yen) | 168,555 |
Reporting
Reporting on Status of Fund Allocation
Balance (millions of yen) | |
---|---|
Green Finance | 33,500 |
Green Bonds | 15,000 |
Green Loans | 18,500 |
- The amount stated refers to the balance as of March 1, 2024.
The following table provides information about DHR’s status of fund allocation regarding Green Finance.
Green Bonds
Name | Outstanding issue (millions of yen) |
Interest rate | Issue date | Maturity | Unallocated amount (millions of yen) |
Third-party evaluation |
---|---|---|---|---|---|---|
9th Unsecured Investment Corporation Bonds | 6,000 | 0.53% | November 25, 2019 |
November 22, 2029 |
- | JCR Green Bond Evaluation “Green 1” |
10th Unsecured Investment Corporation Bonds | 2,400 | 0.34% | May 27, 2020 |
May 27, 2025 |
- | JCR Green Bond Evaluation “Green 1” |
11th Unsecured Investment Corporation Bonds | 1,600 | 0.64% | May 27, 2020 |
May 27, 2030 |
- | JCR Green Bond Evaluation “Green 1” |
12th Unsecured Investment Corporation Bonds | 1,000 | 1.00% | May 27, 2020 |
May 25, 2040 |
- | JCR Green Bond Evaluation “Green 1” |
14th Unsecured Investment Corporation Bonds | 4,000 | 0.50% | April 15, 2021 |
April 15, 2031 |
- | JCR Green Bond Evaluation “Green 1” |
Green Loans
Lender | Loans executed and outstanding (millions of yen) |
Interest rate | Borrowing date | Repayment date | Unallocated amount (millions of yen) |
Third-party evaluation |
---|---|---|---|---|---|---|
Sumitomo Mitsui Banking Corporation; Sumitomo Mitsui Trust Bank, Limited; MUFG Bank, Ltd.; Mizuho Bank, Ltd.; Development Bank of Japan Inc.; Mizuho Trust & Banking Co., Ltd.; Shinsei Bank, Limited; The Yamanashi Chuo Bank, Ltd.; Kansai Mirai Bank, Limited; Shinkin Central Bank; The Bank of Kyoto, Ltd.; The Yamaguchi Bank, Ltd. |
10,500 | 0.56419% | September 3, 2021 |
August 29, 2031 |
- | JCR Green Loan Evaluation “Green 1” |
The Dai-ichi Life Insurance Company, Limited | 1,000 | 1.40% | September 29, 2023 |
September 30, 2033 |
- | JCR Green Loan Evaluation “Green 1” |
SBI Shinsei Bank, Limited | 1,000 | 1.30087% | October 2, 2023 |
March 31, 2032 |
- | JCR Green Loan Evaluation “Green 1” |
Kansai Mirai Bank, Limited | 1,000 | 1.30087% | October 2, 2023 |
March 31, 2032 |
- | JCR Green Loan Evaluation “Green 1” |
Mizuho Bank, Ltd.; The Chiba Bank, Ltd.; The Keiyo Bank, Ltd.; The Yamaguchi Bank, Ltd.; Kansai Mirai Bank, Limited |
5,000 | 0.74354% | March 1, 2024 |
February 28, 2029 |
- | JCR Green Loan Evaluation “Green 1” |
Impact Reporting
DHR will annually disclose the following indicators on its website for as long as the funds procured through green finance are outstanding.
-
Number and type of environmental certifications of portfolio assets
Please refer to "External Evaluations" for details.
- Water consumption
- Electric power consumption (energy consumption)
-
CO2 emissions (GHG emissions)
Please refer to "Environmental Performance" for details.