Sustainability Initiatives and Policy
IAL’s asset management company, ITOCHU REIT Management Co., Ltd. (“IRM”), carries out sustainability-related initiatives based on the following principles, basic policy, and organizational structure.
Principles for Sustainability
As a member of the ITOCHU Group, IRM is guided by three basic principles established at the time of ITOCHU Corporation’s founding called sampo yoshi in Japanese, meaning “Good for the seller, good for the buyer, and good for society.”
A strong sense of ethics and responsibility as well as a passionate approach are embedded in IRM’s management philosophy. By fostering a corporate culture based on this approach, IRM’s management believes that it can proactively promote sustainability. With a firm grasp of expected standards of environmental, social and governance (ESG) performance, which are increasingly demanded by stakeholders today, IRM intends to promptly initiate relevant measures going forward.
Basic Sustainability Policy
1. Environmental stewardship
(1) Reduce energy consumption (decarbonization) and conserve resources
In cooperation with its tenants, IRM shall consider installing more energy-efficient equipment and make use of renewable energy sources at its properties in order to proactively reduce electricity consumption, conserve water, and facilitate recycling.
(2) Utilize environmental certification programs
IRM shall actively strive to acquire environment-related certifications from third-party organizations as a means to add more value to its properties, meet environmental standards expected by stakeholders, and incorporate such standards in its asset management policy.
2. Social contribution
(1) Place importance on human resources training
IRM shall work to improve the expertise of each of its members and raise their awareness of ESG while facilitating opportunities for training in and outside the company
(2) Respect human rights and promote workplace reforms
IRM shall aim to maintain a comfortable work environment by fostering a corporate culture that respects individuals and prohibits discrimination and harassment, and proactively implementing measures for raising productivity.
(3) Implement sustainability policies together with suppliers
IRM shall give consideration to the environment and social contributions in its business activities in cooperation with all companies in its supply chain, particularly property management and building management companies.
(4) Cooperate with tenants
IRM shall give further consideration to the environment and social contribution social contributions in cooperation with its tenants, and work together with the ITOCHU Group to provide services that benefit the businesses of tenants and facilities that enable them to operate dependably with respect to health, comfort and safety.
(5) Benefit areas surrounding properties and the real estate market as a whole
IRM shall give consideration to the communities directly surrounding its properties and work to help expand and develop Japan’s logistics real estate and J-REIT markets.
3. Corporate governance
(1) Comply with the law and prohibit improper conduct
IRM shall establish and maintain organizations that ensure compliance with relevant laws and regulations while strictly prohibiting improper conduct, and work to entrench these principles in its corporate culture.
(2) Disclose accurate and timely information to unitholders and other stakeholders
IRM shall make sure to promptly provide accurate and clear information, and proactively disclose financial and non-financial data, including ESG-related information.
(3) Build sound relations with the ITOCHU Group and other stakeholders
IRM shall aim to create value through its collaborative growth relationship with its sponsor, the ITOCHU Group, while making absolutely sure to consider transactions with stakeholders and protect the interests of unitholders.
For information about ITOCHU Corporation’s sustainability initiatives, please refer to the following webpages.
- Basic policies related to sustainability:
- Material sustainability issues:
Sustainability Committee Established
IRM established its Sustainability Committee for the purpose of executing its Basic Sustainability Policy. The committee sets sustainability-related goals, oversees the progress of their achievement, and formulates, implements, and reports on various related measures.
- Representative Director, President & CEO
- Executive member
- General manager of the General Affairs & Human Resources Department
- General manager of the Investment & Asset Management Department
- General manager of the Finance & Planning Department
- General manager of the Compliance & Risk Management Office
- Other members
- Members of the committee secretariat who are responsible for each department
Participation in International Initiatives
Acquisition of GRESB real estate assessment scores
GRESB Real Estate Assessment is an annual benchmark that measures sustainability performance of property companies and real estate asset managers around the world. By knowing where it stands against its peers with reference to the benchmark, IAL intends to identify areas for improvement, and to further improve upon its environmental, social and governance (ESG) performance.
IAL has been awarded the “Geen Star” status, with “three star” GRESB rating.
For more details, please refer to the press release at the following link: https://www.ial-reit.com/file/en-news-33a086b6846b6b13d8d119e89bc5b023336bd2f9.pdf
Participation in the United Nations Global Compact
ITOCHU Corporation, the parent company of IRM, joined the United Nations Global Compact in April 2009. An international initiative aimed at achieving the sustainability of the international community, the Global Compact consists of ten principles organized under the categories of human rights, labour, environment, and anti-corruption. Abiding by these principles, ITOCHU Corporation strives to fulfill its social mission, which it has named “Committed to the Global Good.”
For more information, please refer to the following webpage:
The Ten Principles of the UN Global Compact
- Human Rights
Businesses should support and respect the protection of internationally proclaimed human rights; and
make sure that they are not complicit in human rights abuses.
Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced and compulsory labour;
the effective abolition of child labour; and
the elimination of discrimination in respect of employment and occupation.
Businesses should support a precautionary approach to environmental challenges;
undertake initiatives to promote greater environmental responsibility; and
encourage the development and diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its forms, including extortion and bribery.