Hankyu Hanshin REIT, Inc.

Sustainability

Environmental Initiatives

Environmental Targets

In a Sustainability Promotion Committee meeting conducted in March 2019, the following environmental targets were established.

  1. Energy consumption: 5% reduction over five years
  2. Greenhouse gas emissions: 5% reduction over five years
  3. Water consumption: 5% reduction over five years
  • The base year will be fiscal 2018.

Energy Consumption and Intensity

  Fiscal 2018
Consumption Intensity
Energy consumption 87,434,495kwh 270.5kwh/㎡・year
Water consumption 451,584㎥ 1.4㎥/㎡・year
Greenhouse gas emissions 29,405t 0.09t/㎡・year
  • Data retention rate: 99.2% (excludes lot properties of owned properties)

Energy Management

Established the Energy Conservation Policy

Based on the "Energy Conservation Policy" established in March 2019, HHR and HHRAM will continually seek to understand the energy consumption levels of the portfolio and measure the rate of achievement against the targeted values. Considerations for operational improvements and equipment investments will be made for energy inefficient properties, and we will continually aim to reduce energy consumption across the entire portfolio.

[Example]

  • For measures that require equipment investments such as installing LED lighting and switching to high efficiency air conditioning, measures that are the most cost-effective will be prioritized based on consideration of the lifecycle costs, etc.

Selected as a body eligible for receiving subsidy of the fiscal 2017 ASSET Project by the Ministry of Environment

The ASSET Project (Note) is a project that aims to significantly and efficiently reduce CO2 emissions by introducing advanced facilities that are promoted by the Ministry of Environment and by accelerating operational improvement. As part of the project, HHR participated in CO2 reduction project by upgrading a freezer at Kitano Hankyu Building, and was selected as a body eligible to receive subsidies.

  • Advanced technologies promotion Subsidy Scheme with Emission reduction Targets
Kitano Hankyu Building

Selected as body by the Ministry of Environment eligible to receive subsidy of CO2 Reduction Promotion Project through Facilities Optimization Repair

During the parts replacement of air conditioners conducted in fiscal 2018 at HANKYU NISHINOMIYA GARDENS, highly efficient machines were installed. As this contributed to the reduction of CO2 emissions, HHR was selected as a body eligible to receive subsidies for the Ministry of Environment’s CO2 Reduction Promotion Project through Facilities Optimization Repair.

HANKYU NISHINOMIYA GARDENS

Leading project to reduce carbon footprint in housing / buildings

A leading project to reduce carbon footprint in housing / buildings is a project that is selected after the government solicits entries of housing / building projects to become leading projects for carbon footprint reduction, and offers support for them from its budget by subsidizing part of the projects’ cost, such as maintenance costs. GRAND FRONT OSAKA was chosen as a leading project in 2009 and has been supported for its environment-friendly design. Its "organizing an integrated water and green network over multiple city blocks," "adoption of highly effective carbon footprint reduction technology" and "building a sustainable management system" initiatives were adopted to realize its environment-friendly design such as extensive greenery on the rooftops and in the surrounding city blocks, natural ventilation system and adoption of a solar power system.

GRAND FRONT OSAKA
(Umekita Plaza and South Building)
GRAND FRONT OSAKA
(North Building)

Countermeasures against urban heat islands

As a countermeasure against urban heat islands that occur in the summer, we have installed a fountain and mist spraying system in the roof-top garden of HANKYU NISHINOMIYA GARDENS, water sprinklers on the roofs of cinema complexes, a mist spraying system at the main entrance of HEP Five, and water facilities such as cascades and a mist projection system at the Umekita Plaza of GRAND FRONT OSAKA. These have contributed to cutting CO2 emissions by reducing the load placed on air conditioners.

<Mist spraying system>
<Fountain>

Coating roofs with heat barriers

At Kita-Aoyama San cho-me Building the roof has been coated with a heat barrier, which prevents the room temperature from rising in the 3rd floor. This has contributed to cutting CO2 emissions by reducing the load placed on air conditioners.

Kita-Aoyama San cho-me Building

Promoting the installation of LED lighting

HHR promotes the installation of LED lighting at each of the properties in the portfolio. At HEP Five and HANKYU NISHINOMIYA GARDENS, all of the common area lights have been upgraded to LED lighting, excluding the lights in the backyard. Installation of LED lighting was completed at Shiodome East Side Building in fiscal 2019.

Using the cooling and heating sources of a district heating and cooling system

Sphere Tower Tennozu uses the steam and cold water supplied by a district heating and cooling system owned by TENNOZ AREA SERVICE INC. District heating and cooling systems are plants that centrally produce cold water and steam for the cooling and heating and hot-water supply of the entire area, which is distributed through a network of supply pipes. Through the centralization of boiler and chiller facilities, these systems conserve energy by improving operating efficiency, and also contribute to the prevention of air pollution and global warming, thereby contributing to environmental protection.

Sphere Tower Tennozu

Utilization of renewable energies

Implementation of solar power generator facilities

Solar panels were installed above the south parking lot of HANKYU NISHINOMIYA GARDENS (along Yamate Kansen), and the power generated is used to illuminate the lights. Solar panels were also installed on the roof of HEP Five, and the clean natural energy is used to light up the Ferris wheel. A monitor indicating the quantity of energy generated by the sunlight has been set up in the atrium on the first floor.

Installation of wind turbine generator system

At HANKYU NISHINOMIYA GARDENS, a hybrid-type generator that combines a Savonius wind turbine with solar panels is used to illuminate the rooftop lights.

Promoting green walls and planting vegetation

At GRAND FRONT OSAKA, there is the 500-meter-long "Icho Namiki" (row of ginkgo trees) that encircles the building, and the "Keyaki Namiki" (row of zelkova trees) that runs east-west between the South Building and the North Building. The 4,000 m2 garden on the north side of the North Building is a space where people can experience the changes in the four seasons, and people enjoy walks in the garden throughout the year. Moreover, on the roof of the 9th floor of the South Building and the North Building, there is a rooftop garden totaling more than 10,000 m2. This space lightens the mood of those who visit, and is also a place where office workers can exchange ideas.
In addition, the Sky Garden on the rooftop of HANKYU NISHINOMIYA GARDENS is a space of relaxation for those who visit. This is because vegetation indigenous to the Rokko mountain range is planted in the garden such as trees, cherry trees, and fruit trees, based on the facility concept of "harmony with the natural environment."

<Row of ginkgo trees>
<Rooftop garden>

Water Resource Initiatives

Established the Water Conservation Policy

Based on the "Water Conservation Policy" established in March 2019, HHR and HHRAM will continually seek to understand the water consumption levels of the portfolio and measure the rate of achievement against the targeted values. Considerations for operational improvements and equipment investments will be made for water resource inefficient properties, and we will continually aim to reduce water consumption across the entire portfolio.

[Example]

  • For measures that require equipment investments such as switching to water conservation equipment and installing water-saving devices, measures that are the most cost-effective will be prioritized based upon consideration of the lifecycle costs, etc.

Reusing rainwater

At HANKYU NISHINOMIYA GARDENS, GRAND FRONT OSAKA, and METS OZONE, rainwater is stored and reused as sprinkling water for plants and for flushing toilets.

Using water reclamation equipment

Sphere Tower Tennozu has water reclamation equipment, which cleans water resources discharged from office buildings and reuses the water to flush toilets, etc.

Installation of kitchen wastewater pretreatment equipment

By preparing kitchen wastewater pretreatment equipment at HANKYU NISHINOMIYA GARDENS, the pollutants found in kitchen wastewater produced by cafés and restaurants are reduced by processing it with mixed-microbial communities, before draining it into public sewage systems. As a result, HANKYU NISHINOMIYA GARDENS is able to maintain water quality that largely exceeds the standard value of Nishinomiya City.

Waste Management

The management of waste

HHR and HHRAM regularly seek to understand the figures submitted by the waste managers of the portfolio.

Charging by waste amount

At HANKYU NISHINOMIYA GARDENS and GRAND FRONT OSAKA, the waste disposed by each tenant is measured on an exclusive measurement device, and a fee is assessed based on the quantity of waste produced. This system has contributed to the suppression of waste generated by tenants.

Thorough waste sorting and recycling

At Dew Hankyu Yamada and HEP Five, cardboard, paper, cans, glass bottles, and plastic bottles are sorted and recycling is conducted thoroughly.

External Certifications

Acquisition of "Green Star" Rating in GRESB Real Estate Assessment

GRESB (The Global Real Estate Sustainability Benchmark) is an annual benchmark, which measures environmental, social, and governance ("ESG") considerations in the real estate sector.

In the GRESB Real Estate Assessment conducted in 2019, HHR was highly evaluated in both "Management & Policy" and "Implementation & Measurement," and received a "Green Star" rating. HHR also received "3 Star" in the GRESB Rating which is a five-grade relative evaluation based on the total GRESB Score.

Acquisition of DBJ Green Building Certification

DBJ Green Building Certification is a program which Development Bank of Japan grants certifications after assessing properties in five ranks, from the perspective of environmental and social considerations.
In the future, HHR will continue to work to expand the number of certified properties.

Properties with the best class environmental & social awareness

HANKYU NISHINOMIYA GARDENS
HANKYU NISHINOMIYA GARDENS

Properties with exceptionally high environmental & social awareness

HEP Five
HEP Five

Received an award for fiscal 2015 Minato City Local Green City Development

The award for Minato City Local Green City Development was established by Minato City, Tokyo in fiscal 2004 with the aim to further promote greening in the city.
It is a program to commend private buildings for their environmental considerations and outstanding greening planning.

Kita-Aoyama San cho-me Building
Kita-Aoyama San cho-me Building

Environmental Considerations Rating obtained from Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation ("SMBC") and the Japan Research Institute developed an evaluation program that takes into consideration corporate environmental initiatives when originating loans.

HHR was awarded an "A" grade from SMBC in recognition of its commitment to environmental initiatives in asset management, based on the SMBC Environmental Considerations Lending Program.

[Factors contributed to the favorable grade]
  • Implementing initiatives for energy conservation and renewable energy as well as water-saving and waste reduction under the Sustainability Policy established in November 2018, understanding their effects and widely promoting participation targeting even tenants and employees of tenants.
  • Encouraging holders of quasi co-ownership interest in properties to obtain third-party certifications on environmental considerations and obtaining favorable grades for HANKYU NISHINOMIYA GARDENS and HEP Five matching the characteristics of the respective properties.
  • Implementing company-wide initiatives for environmental management and corporate management by having employees set personal goals on sustainability.