Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Responding to Climate Change

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono Group

Policy and Concept

Support for TCFD

Special Feature
Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building
Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

SocialDiversity & Inclusion
Work-Life Balance
Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate GovernanceRisk Management

Under the Paris Agreement, an agreement was reached to limit
the average global temperature increase to less than 2°C
compared to pre-industrial levels, and efforts to decarbonize
are being made in many countries. The real estate industry as awhole and Tokyo Tatemono must strive to reduce greenhousegas (GHG*) emissions deriving from real estate holdings andbusiness activities.
The Tokyo Tatemono Group Environmental Policy calls for
us to lead the community in the prevention of global warming.
The Group strives to develop real estate that is superior inenvironmental performance (through deployment of energysaving equipment and other features). We continue to workwith building management companies and tenants on
operational aspects. At the same time, in response to climatechange risks, we are developing real estate that is resistant towind, flooding, and other natural disasters.
* “Greenhouse gas” (GHG) is the general term for a gas that causes a greenhouse effectin the Earth’s atmosphere.

Environmental Management P.15

Climate change is a social issue that calls for global
collaboration. As such, it is a priority that Tokyo Tatemono mustalso address.
The Tokyo Tatemono Group considers the increasingly
severe natural disasters caused by climate change, such as
storm and flood damage, to be a major risk to its assets. On
the other hand, Japan’s declared goal of achieving a carbon
neutral society with zero GHG emissions by 2050 can be
expected to lead to the further spread and expansion of green
investment in areas such as sustainable energy, which we
expect will lead to new business opportunities for our Group.
The Group announced its endorsement of the TCFD in June
2020. We will continue to accelerate our GHG emissions
reduction efforts to contribute to the achievement of SDGs aswell as the 2°C target set forth in the Paris Agreement. We also
recognize the importance of disclosing financial information
related to climate change, and will work to expand our
information disclosure in accordance with TCFD
recommendations.

Governance

At Tokyo Tatemono Group, the Sustainability Committee
discusses the formulation of policies for addressing risks andopportunities linked to climate change as well as importantmatters such as our GHG emissions reduction efforts andprogress against our reduction targets. Chaired by thepresident, the Committee reports its findings to the Board of
Directors for discussion. The Sustainability Committee
proposes and formulates policies and strategies for importantmatters related to the promotion of sustainability, such as GHG
emissions reduction targets and studies toward expanding theuse of renewable energy. In addition, the Sustainability
Promotion Committee, a subordinate organization of the
Sustainability Committee, examines specific measures for
implementing these policies.

Governance Structure
Board of Directors
Report and agenda

Supervision

Sustainability Committee
Committee Chair:	President
Committee members:	Chairman of the Board of Directors, executive officers
concurrently serving as directors, general manager of the
Planning Department, general manager of the Corporate
Communications Department, general manager of the
Human Resources Department, general manager of theGeneral Affairs and Compliance Department, generalmanager of the Building Engineering Department, and otherpersons designated by the President
Secretariat:	Sustainability Promotion Group, Corporate Communications
Department
Assistant:	Corporate Planning Group, Planning Department
Activity Report

Information Disclosure

Compliance
Supply Chain Management

Sustainability Promotion Committee

Stakeholders

Data
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Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Responding to Climate Change

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono GroupSpecial Feature

Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

SocialDiversity & Inclusion
Work-Life Balance
Human Resource Investment and Development

Type*1 IPCC (Intergovernmental Panel on Climate Change): an institution that provides clear
scientific opinions of the status of climate change and its socioeconomic impact.
*2 IEA (International Energy Agency): an independent body within the OECD thatfacilitates policy cooperation on energy security and energy.

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

Current scenario(4°C scenario)

GovernanceCorporate GovernanceRisk Management
Compliance
Supply Chain Management

Data

Transitional scenario(2°C scenario)

A scenario in which the average temperature rises by about
4 °C compared to pre-industrial levels as a result of failure to
introduce stricter government policies and strengthen
regulations, such as regulations to curb GHG emissions, andof failure by businesses to take effective action in response to
climate change. Acute effects include more frequent extreme
weather events and more intense heavy rainfall, while chronic
effects include rising sea levels.
A scenario in which the average temperature rise comparedto the pre-industrial levels is kept below 2°C by improving
low-carbon technologies, expanding renewable energy, andpromoting energy conservation. In this scenario, companies
around the world are strongly required to respond to climatechange by introducing carbon taxes and strengthening
policies to regulate emissions in order to curb GHG
emissions.

PhysicalAcute

Physical

Chronic

Transition

Policiesandregulations

Risk

The Two Scenarios Used in the Analysis

Contents

Period of impact

Frequent and intense heavy rains
Longer construction periods and higher construction costs for real estate under development
Operation and management: Facility failure and suspension of lifeline functions due to flooding at owned properties

Short term

Development and Sales:

Temperature rise
Operation and management: Failure of machinery and equipment at owned properties due to solar radiation and high heat

Carbon pricing
Development and Sales:

Short term

Medium-term

Increase in procurement prices of materials such as steel and cement

Operation and management: Increase in energy costs including electricity

Policiesandregulations

Development, operation, and management:

Strengthen environment-related certification standards
Procurement of materials and installation of equipment necessary to meetthe standards

Medium-term

Transition

Products &Services romote energy conservation and efficiency / Spread renewable energy / Raise environmental awarenessP
among customers
Development, operation, and management: Increase in demand for green buildings, ZEB and ZEH, etc., and decrease incosts related to supply
Increased opportunities to acquire tenants due to strengthened measures tocreate energy and conserve energy

Medium-term

Transition

Products &Services

Improved reputation due to strengthening of environmental laws and regulations
Improving the reputation of our own environmentally friendly buildings

Medium-term

Transition

Opportunity

Improving Quality and Customer Satisfaction

Climate change risk is recognized as one of the most importantrisks that could have a significant impact on the managementof the Tokyo Tatemono Group, and is managed within acompany-wide risk management framework. The Sustainability
Committee examines each policy and strategy for minimizing
risk and targeting opportunities associated with climate changerisks. These are reported to the Board of Directors andincluded in its agenda as necessary.

Identify Risks and Opportunities; Assess Materiality

Health Management / Occupational Safety and HealthRespect for Human Rights

Set target

Responding to Climate Change

Risk Management

Estimate business impact

External Evaluation and Certification for Green Building

Assess materiality

Sustainability FinanceSet up scenarios

Environmental Management

Risk Analysis Review Process
Identify risks and opportunities

Environment

Strategy (scenario analysis)

Drawing from multiple scenarios published by the IPCC*1 andthe IEA*2, the Tokyo Tatemono Group based its analysis on two
scenarios: the current scenario (4°C scenario), in which
temperatures rise by 4°C or more compared to pre-industrial
levels by 2100, and the transition scenario (<2°C scenario), in
which temperature rise is limited to less than 2°C. The scope of
the analysis was to identify the main risks and opportunities—
primarily for the Group’s core businesses, the Commercial
Properties Business and Residential Business—and to assess
their materiality in terms of their expected degree of impact on
the Group’s finances. The period of impact was categorized in
to short-term (1-5 years), medium-term (5-10 years), andlong-term (>10 years). Based on the results of this analysis,
the Group set its targets for its initiatives toward realizing
a decarbonized society.

Development, operation, and management:

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Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Responding to Climate Change

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono GroupSpecial Feature
Environment

Through the Sustainability Promotion Committee, we willcontinue to monitor our climate change-related measures.
Using a PDCA cycle, we will explore better approaches while
also reviewing risks and opportunities.

Environmental Management

Target for 2050
Net zero CO2 emissions*1
Ensure that 100% of the electricity consumed in our businessactivities is from renewable energy sources*2.

Risk Management P.63

Sustainability FinanceTarget for 2030

External Evaluation and Certification for Green Building

A 40% reduction in CO2 emissions compared to fiscal 2019.
Ensure that 40% of the electricity consumed by our real estateholdings is from renewable energy sources.
In principle, develop ZEB*3 and ZEH*4 in all new office buildings,
logistics facilities, and condominiums.
In principle, acquire green building certification for all newly
developed office buildings and logistics facilities.

Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

Indicators and Targets

The Tokyo Tatemono Group has for some time been conducting
quantitative monitoring of GHG emissions and announcing theresults of this monitoring. In addition, in May 2021, we havealso set the targets shown on the right for addressing climatechange and achieving a carbon-neutral society.

Social*1 CO2 emissions: Total emissions from Scope 1, 2 and 3. Scope 1: Direct emissions
that occur from the use of fuel by the Group, Scope 2: Indirect emissions that occur
from the use of electricity and heat purchased by the Group, Scope 3: Indirectemissions that occur from other business activities (building construction, use of soldreal estate, etc.)*2 Includes consumption of non-fossil fuel certificates categorized as renewable energy.
*3 Zero Energy Buildings (ZEB) is a building that aims to achieve annual primary energy
consumption balance of zero by maximizing energy independence through the use ofadvanced technologies that enable significant energy savings and the introduction ofrenewable energy. ZEB consists of Nearly ZEB (energy savings of at least 75%), ZEB
Ready (energy savings of at least 50%) and ZEB Oriented (energy savings of at least
40% in office buildings and 30% in hotels with a floor space of 10,000m2 or more),each of which will be included in the Group’s initiatives.
*4 Zero Energy Houses (ZEH) reduces total energy consumption through measures suchas heat insulation and energy savings as well as generating energy through power
generation to balance out the annual primary energy consumption to zero. ZEH-M,
the zero energy housing standard for condominiums, consists of Nearly ZEH-M(energy savings of at least 75%), ZEH-M Ready (energy savings of at least 50%) andZEH-M Oriented (energy savings of at least 20%), each of which will be included in
the Group’s initiatives.

(Data) KPIs and Targets P.74

Diversity & Inclusion
Work-Life Balance
Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockEnergy Consumption (Crude Oil Equivalent)(kl/Thousand m2)(t-CO2)60

60,00030,000Contributing to Our Communities

21,592GovernanceCorporate Governance

Scope 1 (Fuel-Derived)

Unit Load(kl)

22,083

35.4

23,89524,16535.0

34.2

23,49734.0

Scope 2Development and Promotion of ZEB

Unit Load(t-CO2/Thousand m2)

73.1

44,62980

65.3

42,14765.2

44,55962.3

44,263

Tokyo Tatemono is registered in the ZEB Leading Owner
Registration System and we aim to contribute to the promotion

41,82450.8

28.6

15,000

Climate Change Initiatives in the Commercial Properties
Business

GHG Emissions (Facilities subject to the Act on the
Rational Use of Energy)

Energy Consumption (Facilities subject to the Act on the
Rational Use of Energy)

この建物⽤途のエネルギー消費量30

30,00042,07639,74541,25941,39239,29050 ％削減40
建築物省エネルギー性能表⽰制度

Risk Management

国⼟交通省告⽰に基づく第三者認証
2019年7⽉19⽇交付

Compliance
2,553

Supply Chain Management
0

Data
Third-Party Assurance

2016

2017

2018

2019

2020

(Data) Energy Consumption and CO2 Emissions P.68

0

0

2016

2,402
2017

3,300
2018

2,871
2019

2,534
2020

0

ZEB Leading Owner Mark

(Data) Energy Consumption and CO2 Emissions P.68

ZEB Ready Certification Label

この建物⽤途のエネルギー消費量50％削減

2019年7⽉19⽇交付 国⼟交通省告⽰に基づく第三者認証

TOKYO TATEMONO GROUPSUSTAINABILITY REPORT 2021

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Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Responding to Climate Change

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono GroupSpecial Feature
Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building
Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

Socialof ZEB. The Hareza Tower is the first high-rise, mixed-use
building to receive ZEB Ready certification, thanks to theinstallation of a highly versatile facility system that includes LED
lighting, brightness sensor and motion sensor controls, and ahigh-efficiency air-cooled heat pump package, as well as
consideration of appropriate design conditions, such as theselection of 500 lux lighting fixtures for dedicated office areas.
Adoption and Upgrading of Energy-saving Equipment
and Devices

In the buildings that we own, we are actively adopting andupgrading energy-saving equipment and devices, and in particular,
we are systematically promoting the use of LED lighting. As ofthe end of FY2020, 91% of our buildings had alreadycompleted or were in the process of converting to LEDs.

Diversity & Inclusion

Switching Headquarters Building to Renewable Energy

Work-Life Balance

In July 2020, we began using non-fossil fuel certificates toswitch all of our electricity consumption at the Tokyo Tatemono
Yaesu Building, which serves as our headquarters building, torenewable energy. This initiative involves the supply of electricity
using Non-Fossil Fuel Certificates with Tracking, which certify
the environmental value of solar power generation. It is
expected to reduce annual CO2 emissions by approximately
1,700 tons.

Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights
Improving Quality and Customer Satisfaction
Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate GovernanceRisk Management
Compliance

As a first step in this initiative, we will install large-capacity
solar panels at T-LOGI Kuki, a logistics facility developed by
Tokyo Tatemono. The electricity generated will be consumed
onsite at the facility, which will acquire ZEB certification as anenvironmentally friendly logistics facility. In addition, surplus
electricity that cannot be fully consumed by T-LOGI Kuki will be
self-consigned to SMARK ISESAKI, a commercial facility
owned by Tokyo Tatemono.
Similar to T-LOGI Kuki, the T-LOGI series of logistics facilities
scheduled for construction in the future will also be equippedwith solar panels and promote energy conservation to realize
environmentally friendly logistics facilities (ZEB Logistics). In
addition, we will build a self-consignment business model inwhich a number of T-LOGI facilities will supply electricity to a
designated facility (SMARK ISESAKI).

Hold Energy Conservation Promotion Meetings

Tokyo Tatemono holds an Energy Conservation Promotion
Council every year in cooperation with tenants at offices
subject to the Tokyo Metropolitan Government’s Total Volume
Reduction System. We explain our energy-saving activities andreduction targets, and introduce tenants’ energy-saving efforts.
Through this council, we aim to enhance the energy-saving
activities of both our company and tenants.
Introduction of Green Lease Provisions

In buildings owned by our company, we are working withtenants to introduce green lease clauses into the template oflease contracts in order to reduce the environmental impact ofenergy conservation and other measures and to improve theworking environment even in dedicated areas.

Image of Self-Consignment Business
1

2

SMARK ISESAKI

T-LOGIKuki
T-LOGI
Series3

Generation and Use of Renewable Energy

In December 2020, we signed a basic agreement with Tokyo
Gas Co., Ltd. to implement environmentally friendly initiatives
using renewable energy.

Cooperative Initiatives with Tenants

1

ZEB Logistics with solar power generation
Self-consignment of surplus electricity
3 The same scheme will be used for other T-LOGI facilities that will be developed in the future
2

Monitor Displaying Energy Consumption

At Shijo-Karasuma FT Square, in conjunction with the replacementof the central monitoring system in 2019, monitors were
installed on the first basement floor and first floor that display
the amount of each utility (electricity, gas, and water) being
used in the building each day. Visually displaying energy
consumption in this way
enables Tokyo Tatemono asbuilding manager to work
together with our tenants tobe environmentally conscious.

Supply Chain Management

Monitor displaying energy consumption

Data
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Corporate Philosophy, Group Profile, Contents, Editorial Policy

Management

Special Feature

Environment

SocialGovernance

Data

Third-Party Assurance

Environment
Corporate Philosophy, Group Profile, Contents, Editorial Policy
Management

Responding to Climate Change

Message from the President and CEO
ESG Management
Materiality of the Tokyo Tatemono Group

Climate Change Initiatives in the Residential BusinessSpecial Feature
Environment
Environmental Management
Sustainability Finance
External Evaluation and Certification for Green Building
Responding to Climate Change
Pollution Control and Resource Recycling
Water Resources
Biodiversity
Responding to Natural Disasters

SocialDiversity & Inclusion
Work-Life Balance
Human Resource Investment and Development
Health Management / Occupational Safety and HealthRespect for Human Rights

Promote the Development of ZEH-M (ZEH Mansion)

Tokyo Tatemono was registered under the ZEH Developer
Registration Program in May 2018. Since then, we have worked
as a ZEH Developer to aid the spread of ZEH-M apartments.
Following an open submission process, Brillia Tower Seiseki
Sakuragaoka Blooming Residence was selected by the Ministryof Economy, Trade and Industry as the first and only project in
the Tokyo metropolitan area for the fiscal 2019 Super-High-Rise
ZEH-M Demonstration Project.*
This condominium meets the ZEH-M Oriented standard forhigh-rise apartments with six or more floors due to its
improvement in outer wall insulation performance, the adoptionof high-insulation doors, the use of high-efficiency hot watersupply equipment, etc.

Use of Green Power Certificates

Since May 2016, we have been using the framework of GreenPower Certificates to switch to 100% renewable energy
sources for the electricity used in our Brillia brand condominium
model rooms. In 2020, we utilized Green Power Certificates forapproximately 420,000 kWh of electricity.

Development of Mega Solar BusinessTokyo Fudosan Kanri has been involved in the mega solar
business since 2012. Through this company, we are developing
solar power plants mainly in the northern Kanto region. As ofthe end of December 2020, we had eight plants with a total
power generation capacity of approximately 13MW.

* The unofficial English translation of the official Japanese name of this METI project isthe “Super-High-Rise ZEH-M Demonstration Project of the 2019 Support Subsidy for
Promoting Energy-Saving Investment (Project for Promotion of Innovative Energy-Saving
Investment Implementation in Housing/Buildings) (Net Zero Energy House Support
Project).” This is a key demonstration project necessary to formulate design guidelines
for promoting ZEH for multiple-dwelling residences. The project partially subsidizes
expenses for ZEH conversion of shared dwellings incurred by operators who provide
design specifications and energy performance-related data.

Improving Quality and Customer Satisfaction
Oyama Solar Power Plant

Revitalizing and Utilizing Real Estate StockContributing to Our Communities

GovernanceCorporate Governance

Iwaki Solar Power Plant

List of Solar Power Plants
Name (Location)

Power generation
capacity

Date ofoperation

Oyama Solar Power Plant(Oyama City, Tochigi Prefecture)785kW

February 2013

Iwaki Solar Power Plant(Iwaki City, Fukushima Prefecture)

2,454kW

November 2013

Joso Solar Power Plant (JosoCity, Ibaraki Prefecture)

672kW

September 2014

Hatoyama Solar Power Plant(Hatoyama-machi, Hiki-gun,
Saitama Prefecture)

1,908kWMarch 2015

Tochigi Hirai Solar Power Plant(Tochigi City, Tochigi Prefecture)

1,559kWMarch 2015

Tochigi Nishikata Solar Power
Plant (Tochigi City, Tochigi
Prefecture)

1,884kW

June 2015

Shirakawa Solar Power Plant(Tanakura-machi,
Higashishirakawa-gun,
Fukushima Prefecture)

2,034kW

November 2015

Higashihiroshima Solar Power
Plant (Higashihiroshima City,
Hiroshima Prefecture)

1,086kW

December 2015

Risk Management
ComplianceHatoyama Solar Power Plant

Supply Chain Management

Data

Brillia Tower Seiseki Sakuragaoka Blooming
Residence

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