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.

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


The actual performance of reduction in energy intensity is as follows.

2015 2016 2017
Energy intensity (kl) 0.05174 0.04947 0.05283
Energy intensity (MJ) 1,981 1,894 2,022
YonY performance (%) 96.5 95.6 106.8
Note1: Energy intensity is calculated by dividing total energy use equivalent to crude oil (kl/year) by total occupancy floor area (m2/year) and also converted into MJ per m2/year.
Note2: YonY performance for 2017 increased due to acquisitions of new assets in 2017. YonY performance on a same-store basis is 97.5%.

■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 Fululu Garden Yachiyo Blumer HAT Kobe
Passaggio Nishiarai
(installed in 2015)
Fululu Garden Yachiyo
(installed in 2016)
Blumer HAT Kobe
(installed in 2016)
Unicus Ina Ashico Town Ashikaga MONA Shin-Urayasu
Unicus Ina
(installed in 2016)
Ashico Town Ashikaga
(installed in 2016)
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 MONA Shin-Urayasu Blumer HAT Kobe
Blumer Maitamon (Entrance) MONA Shin-Urayasu (Rooftop) Blumer HAT Kobe (Rooftop)

Social initiatives

■Local events at our properties

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

Fululu Garden Yachiyo ロゼオ水戸 ウニクス伊奈
Minna no Concert
Fululu Garden Yachiyo
Roseo Festival
Roseo Mito
Summer Festival
Unicus Ina

■Collaboration with local communities

We entered into agreements with Yoshikawa City and Ina Town under which a part of Unicus Yoshikawa and Unicus Ina, respectively, can be used as a temporary shelter at times of emergency. We also agreed with Yachiyo Police Station to provide coupons at Fululu Garden Yachiyo to the elderly who voluntarily returned their driver’s license.

Signing of agreement (Unicus Yoshikawa)

Signing of agreement
Signing of agreement (Fululu Garden Yachiyo)

■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

Providing lectures on shopping centers

Installation of AEDs and emergency supplies

Supporting Japan Association for UNHCR

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

MONA Shin-Urayasu

About Japan Association for UNHCR

About Japan Association for UNHCR

■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


■Acquisition of 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.

gresbKRR has been awarded a “Green Star” Rating for three 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 three 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 acquisition of GRESB Rating.

September 20, 2018
Notice Concerning Acquisition of “Green Star” Rating in GRESB Real Estate AssessmentPDF(142KB)

Visit the GRESB website for more details

■Acquisition of 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. The original certified date is shown as the certified date. If the certification rank is updated, the date of update is indicated as the certified date.

Certified properties Certification rank Certified date
Fululu Garden Yachiyo five stars(four stars) March 3, 2017
MONA Shin-Urayasu four stars(four stars) September 1, 2017
Blumer HAT Kobe three stars(three stars) June 29, 2016
Roseo Mito three stars(three stars) June 29, 2016
Ashico Town Ashikaga three stars(three stars) June 29, 2016
Daikanyama Address Dixsept three stars(three stars) June 28, 2017
Passaggio Nishiarai three stars(three stars) June 29, 2018
Unicus Ina two stars(two stars) May 20, 2015
Unicus Yoshikawa two stars(two stars) May 20, 2015
Blumer Maitamon two stars(two stars) May 20, 2015
Yumemachi Narashinodai Mall one star(two stars) June 28, 2017
Kawamachi Yahagi Mall one star(two stars) June 28, 2017
Carino Esaka one star(two stars) June 28, 2017
Sun Street Hamakita one star(two stars) June 28, 2017
Gourmet City Chiba-Chuo one star(two stars) June 14, 2018
Resora Obu Shopping Terrace one star(two stars) June 14, 2018

■Certified properties and floor area ratio

The number of certified properties: 16
Certified floor area: 462,015.35m2 (65.32%)
as of June 30, 2018

Note: The ratio is the percentage of certified floor area to the gross floor area of properties owned by KRR (707,294.75m2, calculated on a pro-rata basis of ownership ratio for compartmentalized ownership, excluding land-only properties). As of June 30, 2018, KRR owns 41 properties that are eligible for certification, excluding 12 land-only properties.

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