Kenedix Retail REIT Corporation

Securities Code:3453

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  2. Features of KRR
  3. Initiatives for Sustainability

Initiatives for Sustainability

We believe that our selective investments in local shopping centers for daily needs with specialty stores or supermarkets as their main tenants give us the ability to enliven local communities and to enhance social infrastructure. In regard to this investment philosophy, we also believe that it is important to promote environmental and social consideration measures.

Basic policies / Sustainability committee

■Sustainability Policies

The Asset Manager has positioned initiatives on ESG (Environmental, Social and Governance) awareness as an important business management issue. To promote initiatives on ESG, the Asset Manager has established the following Sustainability Policies.

  • Contribution to sustainable environment
    We 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.
  • 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.
  • 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.
  • 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.
  • 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.

Established on September 5, 2018
Kenedix Real Estate Fund Management, Inc.

■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.

  • Compliance with Environmental Laws and Regulations
    KFM will promote environment-friendly investment management operations by adhering to environmental laws and regulations.
  • Promotion of Energy Conservation Measures
    KFM will systematically advance energy conservation measures at its managed properties, maintaining a strong awareness of the importance of natural and energy resources.
  • Reduction of Environmental Burden
    KFM will undertake initiatives to reduce CO2 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.
  • Disclosure of Environmental Information
    KFM 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.
  • Environmental Education
    KFM will take steps to improve the environmental consciousness of its officers and employees through internal education.

Established on October 22, 2015
Kenedix Retail REIT Corporation
Kenedix Real Estate Fund Management, Inc.

■Sustainability committee

The initiatives for sustainability are promoted under the leadership of the Sustainability Committee established in the Asset Manager.
The Sustainability Committee consists of the Head of Retail REIT Department as the chairperson, and the Heads of each Division in Retail REIT Department as members. The Committee holds meetings every three months in principle to discuss policies, targets, approaches on sustainability issues and monitors the progress. What is discussed at the Committee is reported to the Asset Management Committee of the Asset Manager, as well as KRR’s Board of Directors.

■Material issues of the Kenedix Group

Kenedix has established material issues in order to identify subjects that are critical for achieving sustained growth of the Kenedix Group along with stakeholders and society. We will make commitment to find solutions to these issues both in business and society by making initiatives that reflect the opportunities and risks associated with each issue. Furthermore, we intend to contribute to achieving the SDGs by carrying measures for our materiality.

Material issues of the Kenedix Group

Key areas and applicable SDGs Material issues
Contribution to a sustainable environment Reduction of energy consumption and CO2 emissions
Reduction of water consumption and waste materials
Collaboration with tenants for environmental initiatives
Commitment to a diverse society Providing properties with environmental and social considerations
Improving resilience/climate adaptation
Initiatives for an aging society
Stakeholder engagement Continuous improvement of customer satisfaction
Community engagement
Managing conflicts of interests
Attractive working environment Recruiting, employee retention and career advancement
Health and wellbeing of employees
Diversity and equal opportunities
Responsible organization Compliance
Risk management
Commitment to responsible investments

Environmental initiatives

■Sustainability goals

The Asset Manager has established the Sustainability Committee based on the Environmental Policies to advance measures for sustainability, and has developed medium to long-term energy reduction targets, and targets management measures as follows.

1. Medium to long-term reduction targets for energy consumption
Reduce the energy intensity by an annual average rate of 1% or more in five years in accordance with the Act on Rationalizing Energy Use (the Energy Saving Act)
Set individual targets for properties subject to local regulations on measures to cope with global warming
2. Management measures to achieve targets
Hold the Sustainability Committee meetings to manage the progress and results of medium to long-term targets, and to identify the factors for change in energy use

KRR has set energy reduction targets as follows.

Reduction targets
Energy intensity Annual average of 1% for 5 years
GHG emissions Annual average of 1% for 5 years
Water use Not to increase
Waste volume Not to increase


The actual performance of reduction in energy intensity, GHG emissions, water use and waste volume is as follows.

Unit 2015 2016 2017 2018
Energy intensity (kl) 0.05174 0.04947 0.05283 0.05215
(MJ) 1,981 1,894 2,022 1,996
YonY performance (%) - 95.6 106.8 98.7
Total portfolio usage (kl) 20,622 23,279 28,826 30,422
GHG emissions (t-CO2) 0.10248 0.09560 0.09998 0.09574
YonY performance (%) - 93.3 104.6 95.8
Total portfolio emissions (t-CO2) 40,847 44,986 54,551 55,852
Water use (m3) 0.54816 0.63938 1.06067 1.25185
YonY performance (%) - 116.6 165.9 118.0
Total portfolio Water Use (m2) 375,327 488,612 702,872 865,905
Portfolio coverage (%) 100% 100% 100% 100%
Waste volume (t) 0.00909 0.01005 0.01630 0.01350
YonY performance (%) - 110.7 162.1 82.9
Note1: "Energy use" and "GHG emissions" are calculated by dividing total annual performance by total occupancy floor area (m2/year).
Note2: "Water use" and "Waste volume" are calculated by the total floor area of the entire portfolio.

■Example of environmental initiatives

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
    Passaggio Nishiarai
    (installed in 2015)
  • Blumer HAT Kobe
    Blumer HAT Kobe
    (installed in 2016)
  • Unicus Ina
    Unicus Ina
    (installed in 2016)
  • Ashico Town Ashikaga
    Ashico Town Ashikaga
    (installed in 2016)
  • Carino Esaka<br />(installed in 2017)
    Carino Esaka(installed in 2017)
  • MONA Shin-Urayasu
    MONA Shin-Urayasu
    (installed in 2017)
Greening of facilities

Greening of facilities creates energy-saving effects such as mitigation of outdoor temperature, as well as relaxing effects for customers, providing refreshing spaces

  • Blumer Maitamon
    Blumer Maitamon (Entrance)
  • MONA Shin-Urayasu
    MONA Shin-Urayasu (Rooftop)
  • Blumer HAT Kobe
    Unicus Ina (Wall)
Solar panel installation

We installed solar panels at Unicus Ina to decrease CO2 emissions.

  • Unicus Ina
    Unicus Ina
  • 2019 Power generation results(Note)
    283,143 kWh

    (Note)The figures are for the period April to December 2019.

Social initiatives

■Local events at our properties

We are making efforts to enliven local communities by holding community-participating events at our properties

  • Roseo Mito
    Roseo Festival
    Roseo Mito
  • Unicus Ina
    Summer Festival
    Unicus Ina
  • Unicus Kamisato
    Kamisato Farmers Market
    Unicus Kamisato

■Collaboration with local communities

We entered into agreements with Yoshikawa City, Ina Town and Konosu City under which a part of Unicus Yoshikawa, Unicus Ina and Unicus Konosu (Land) respectively, can be used as a temporary shelter at times of emergency.

  • ウニクス吉川
    Signing of agreement (Unicus Yoshikawa)

■Initiatives with tenants

Green lease agreements

Green lease is an agreement specifying that property owners and tenants shall cooperate to reduce environmental burden. We have entered into green lease agreements with some of our tenants.

Tenant satisfaction survey

We are performing tenant satisfaction surveys in some of our properties.

■Social contribution activities

  • sc-academy
    Providing lectures on shopping centers
  • aed
    Installation of AEDs and emergency supplies
Supporting Japan for UNHCR

We support the activity of Japan for UNHCR (United Nations High Commissioner for Refugees) by providing common areas of our properties for their fund-raising campaign.

    Passaggio Nishiarai

About Japan for UNHCR

About Japan Association for UNHCR

Supporting for UNICEF

We support the activity of UNICEF (United Nations Children's Fund) by providing common areas of our properties for their fund-raising campaign.

  • sc-academy
    Blumer Maitamon

■Human capital development

KRR is not allowed to hire employees under the provisions of the Act on Investment Trusts and Investment Corporations, and the Asset Manager's employees substantially manage its assets. Kenedix Real Estate Fund Management, Inc., the asset manager of KRR, has the policy that human resources are crucial for sophisticated investment management and has undertaken various initiatives to promote it. Please refer to the Asset Manager's website for details.

The Asset Manager website


The number of certified properties Certified floor area(㎡) Ratio(%)(Note)
DBJ Green Building Certification 14 340,251.61 47.0
Certification for CASBEE
for Real Estate
2 52,232.95 7.2
※as of March 31, 2020
Note: The ratio is the percentage of certified floor area to the gross floor area of properties owned by KRR (723,374.38m2, calculated on a pro-rata basis of ownership ratio for compartmentalized ownership, excluding land-only properties).

■GRESB Evaluation

GRESB is an annual benchmark assessment which measures environmental, social, and governance (ESG) considerations in the real estate sector. It was established in 2009 primarily by major European pension fund groups, which led the Principles for Responsible Investment. GRESB attracts attention as leading institutional investors have joined the high-visibility assessment and used GRESB to select and dialogue with investment targets. As a result, there are many real estate companies, REITs and private funds worldwide that annually participate in the GRESB Real Estate Assessment.

KRR has been awarded a “Green Star” Rating for four years in a row since its first participation in the GRESB Real Estate Assessment in 2016, as its efforts for improving sustainability performance were evaluated, receiving high evaluation on both “implementation and measurement” and “management and policy”. KRR also earned four star (out of five star) GRESB Rating, which is calculated relative to the global performance of reporting entities.

Please refer to the following KRR press release for the earning of GRESB Rating.

September 10, 2019
Notice Concerning Earning of “Green Star” Rating in GRESB Real Estate Assessment and Achieving the Highest GRESB Score in “Eastern Asia/ Retail/ Listed” CategoryPDF (133KB)

Visit the GRESB website for more details

■DBJ Green Building Certification

The DBJ Green Building Certification Program was launched by Development Bank of Japan Inc. (DBJ) in April 2011 to support real estate that meets environmental and social considerations. The program evaluates and certifies real estate with environmental and social considerations, taking into account each property's environmental features and measures taken for various stakeholders, such as disaster and community-conscious measures.

There are five levels of certification ranks: properties with the best class environmental and social awareness (five stars), properties with exceptionally high environmental and social awareness (four stars), properties with excellent environmental and social awareness (three stars), properties with high environmental and social awareness (two stars), and properties with satisfactory environmental and social awareness (one star).

We received DBJ Green Building Certification for the following properties. For properties that have been reassessed, the certified date is the reassessment date.

Certified properties Certification rank Certified date
MONA Shin-Urayasu
four stars (four stars)
September 1, 2017
Blumer Maitamon
two stars (four stars)
March 4, 2019
Daikanyama Address Dixsept
four stars (four stars)
June 29, 2019
Passaggio Nishiarai
three stars (three stars)
June 29, 2018
Blumer HAT Kobe
three stars (three stars)
June 29, 2018
Roseo Mito
three stars (three stars)
June 29, 2018
Ashico Town Ashikaga
three stars (three stars)
June 29, 2018
Unicus Yoshikawa
two stars (three stars)
March 4, 2019
Kawamachi Yahagi Mall
three stars (three stars)
June 29, 2019
Carino Esaka
three stars (three stars)
June 29, 2019
Sun Street Hamakita
one star (three stars)
June 29, 2019
Unicus Ina
two stars (two stars)
September 1, 2017
Resora Obu Shopping Terrace
one star (two stars)
June 8, 2018
Yumemachi Narashinodai Mall
one star (two stars)
June 29, 2019

■Certification for CASBEE for Real Estate

CASBEE is an evaluation system for rating the environmental performance of buildings, developed under the auspices of the Ministry of Land, Infrastructure, Transport and Tourism. The system rates the overall environmental performance of buildings from two perspectives; the evaluation of the environmental quality and performance of buildings themselves and the external environmental load of buildings.

Certified properties Certification rank Certified date
Homecenter Kohnan Sunadabashi S rank March 31, 2020
Musashi Ranzan Distribution Center A rank March 31, 2020

Visit the CASBEE website for more details

■Environmental Considerations Rating from Sumitomo Mitsui Banking Corporation

Awarded an "A" grade from Sumitomo Mitsui Banking Corporation in recognition of its commitment to environmental initiatives in asset management, based on SMBC Environmental Considerations Lending Program.

■MUFG ESG Rating Certificate for J-REIT supported by JCR

Awarded the highest rank of "S" in "MUFG ESG Rating Certificate for J-REIT supported by JCR" by Mitsubishi UFJ Research and Consulting Co., Ltd.

■Other awards and recognition

KRR was awarded Green Award of Saitama Prefecture in 2018 for the greening plan at Unicus Ina.

  • Award ceremony
    Award ceremony

Sustainability initiatives of the Kenedix Group

  • Kenedix, Inc.
  • Asset Manager
    Asset Manager

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