Investor Presentaiton
ESG Measures ~Disclosures based on the TCFD Recommendations~
Disclosed Climate-related financial information based on the TCFD Recommendations
Disclosures based on the Task Force on Climate-related Financial Disclosures
Based on Disclosure Items Recommended by the TCFD, which we expressed its support in July 2020, we disclosed information on financial impact based on
multiple scenario analyzes as first time in J-REITS in addition to an overview of climate change risks and opportunities.
TCFD
TASK FORCE ON
CLIMATE-RELATED
FINANCIAL
DISCLOSURES
Outline of Disclosure based on TCFD Recommendations
Identify climate change-related risks and opportunities
(Disclosure Items Recommended by the TCFD)
Disclosure Item
Governance
Strategy
Risk management
Metrics and Targets
Set three patterns of scenarios, 4° C scenario, 2° C scenario, and 1.5 ° C scenario,
mainly referring to future climate forecasts published by the IEA and IPCC
Analyze and verify financial impact for each identified risk and opportunity
(World view of 2 °C scenario)
Disclosure Details
Organizational governance relating to climate-related risks and opportunities
Actual and potential impacts from climate-related risks and opportunities on the
organization's businesses, strategies, and financial planning
The organization's climate-related risk identification, assessment, and management
processes
Metrics and targets used to assess and manage climate-related risks and
opportunities
(Identification of Climate Change Related Risks and Opportunities)
Category
Risk and Opportunity Factors
Costs for energy-generating and energy-conserving
buildings decrease as a result of stricter regulations
on total building carbon emissions and energy
conservation standards and advances in ZEB (net
zero energy building) technologies
Financial impacts
(1) Costs for retrofitting
(modification of existing
buildings to increase energy
efficiency) will be incurred
(2) Lower utility expenses as
Type
Risk
Opportunity
a result of adoption of ZEB
The use by banks of screening determination
methods that take the environmental
performance of buildings into consideration
will spread, and financing amounts will
increase substantially
Investor
Bank
Government
BANK
AA
(Financing)
⚫ Restrictions on total building emissions will be
introduced and building energy conservation
standards will be tightened
⚫ Subsidies for improving energy efficiency will
be introduced
Restrictions on emissions will be strengthened
through carbon taxes and emissions trading
(regulations)
(Interest/repayment)
Tenant
NMF
(Real estate leasing)
&
(Investment)
(Distributions)
ESG investment will become a main means
of investment and demands for investment
targets to disclose ESG information will grow
The adoption of ZEB for new buildings
will advance as a result of it being made
mandatory and other means
Transition
Risks
Policy
Introduction of carbon taxes, introduction of
emissions trading systems
(3) Increased carbon tax burdens
(4) Costs for purchase of
renewable energy credits will be
incurred
Risk
Markets
Reputation
Disclosure systems relating to building energy
efficiency assessments expanded and made
mandatory
Changes in investment stances in conjunction with
the increase of ESG investors
Changes in financing determination by banks in
accordance with responsible banking principles
Increase in companies that seek carbon neutrality
Selection of properties by companies and tenants
with an emphasis on energy generation and energy
conservation
Selection of properties by companies and tenants
with an emphasis on disaster preparedness
(5) Certification and other costs will
be incurred
(6) Lower capital procurement
costs as a result of green
bonds, green loans, etc.
(7) Higher occupancy rates at
energy-generating and energy-
conserving buildings
(8) Lower occupancy rates at
buildings with high disaster
risks
Opportunity
(Rent)
Tenants that emphasize energy
creation and energy conservation
Acute
will increase substantially
Physical
Risks
Sea level rise
Chronic
Increases in intense rain, storms and flooding,
landslides, and high tides
(9) Loss of sales opportunities due
to building flooding
(10) Increase in repair costs and
casualty insurance premiums
due to building flooding
Risk
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