Sustainability Activities (ESG)
Climate Change Strategies
Basic Policy and Approach
Climate Change Strategies
Basic Policy and Approach
The damage to human life and property caused by extreme weather events such as heat waves, heavy rain, and drought is becoming more serious each year.
The real estate industry is known to emit a particularly large proportion of greenhouse gases as a percentage of all industries. The Mitsubishi Estate Group, which owns a large number of properties in and outside Japan, recognizes it has a great responsibility, and considers it essential to address climate change in order to achieve the Mission of Mitsubishi Estate Group, which is to contribute to society through urban development.
In order to identify the impact of climate change on business activities and take appropriate action, in May 2020, the Group implemented analysis and information disclosure*1 in line with the TCFD information disclosure framework (governance, strategy, risk management, and metrics and targets around climate-related risks and opportunities). Based on the results of this analysis, the Group will further strengthen its governance and business strategies related to climate change in order to appropriately manage and respond to climate-related transition risks (including regulatory, technological, market, and reputation risks) and physical risks (acute and chronic risks).
Moreover, collaboration with a broad range of external stakeholders is essential for the Group as it implements initiatives aimed at realizing a carbon-free society. To this end, in April 2020, Mitsubishi Estate joined the Japan Climate Leaders' Partnership (JCLP)*2, a coalition of companies acting against the climate crisis, and working to collaborate with other companies to enact policy proposals to the government with the aim of decarbonization.
The Mitsubishi Estate Group will respond steadily to climate change by deepening the initiatives it takes through its business activities in line with this basic policy and approach.
Goals and Achievement Status
Goals and Achievement Status
Goals
Under the basic policy and approach described above, the Mitsubishi Estate Group has formulated medium-to-long term reduction targets for the Group's overall greenhouse gas emissions. In April 2019, these targets were approved as being based on scientific evidence by the Science Based Targets (SBT) initiative. In March 2022, the Group revised its targets in line with the Net-Zero Standard published by the SBTi in October 2021 based on its 1.5°C scenarios (Targets approved by the SBT initiative in June 2022).
In January 2020, Mitsubishi Estate joined RE100, a global collaborative initiative aimed at switching to electricity derived from renewable energy for 100% of the electricity used in business. In March 2022, Mitsubishi Estate revised its GHG reduction targets in line with the SBTi’s Net-Zero Standard and renewed the Group’s renewable energy rate target to achieve 100% group-wide by fiscal 2025.
GHG Emissions Reduction Targets (revision in March 2022)
(Targets approved by the SBT initiative in June 2022)
- Reduce Scope 1 + 2 by 70% or more and Scope 3 by 50% or more by fiscal 2030 compared to fiscal 2019 emissions
- Achieve net-zero emissions by 2050 (reduce Scope 1, 2, and 3 by 90% or more. Neutralize residual emissions*)
- Emissions that remain unabated within the value chain in the target year are termed “residual emissions.” The SBTi standard requires neutralizing any residual emissions using forest absorption and carbon removal technologies outside the value chain to counterbalance the impact of these unabated emissions and to achieve net-zero emissions.
Renewable Energy Rate Target (revision in March 2022)
Joined RE100
- Achieve 100% group-wide by fiscal 2025
Achievement Status
In order to achieve the targets above, the Group is implementing measures such as the use of high-efficiency equipment in the operation of office buildings, which is the Group's core business. In addition, given that factors such as external temperature and building operating conditions impact energy usage, we work with tenants to conserve energy and reduce GHG emissions.
As part of its efforts to reduce Scope 2 emissions, the Group is working to introduce electricity sourced from renewable energy (renewable power) in the properties it owns. The Group also actively takes steps in the properties it develops to obtain certifications, including those for ZEB and ZEH, with the aim of achieving advanced environmental performance and energy efficiency. Furthermore, for building and construction materials, which are the main source of Scope 3 emissions, the Group is enhancing collaboration throughout the supply chain to drive reductions in its development and construction work.
See the following for data on GHG emissions and the ratio of renewable power.
ESG Data > Environmental data > (1) KPI > 1. Climate Change (GHG Emissions, Energy Use)
Energy Management Initiatives> Introducing "Super Tube" to Enhance District Heating-Cooling and Cogeneration Systems
Energy Management Initiatives
Utilizing District Heating-Cooling and Cogeneration Systems
Since Marunouchi Heat Supply began operating in 1976, it has developed a district heating-cooling network in the Otemachi, Marunouchi, Yurakucho area and supported energy management for the entire area. The steam and cold water generated by its plants are supplied to buildings through underground tunnels and used for air conditioning. Most of the buildings the Group owns in this area benefit from this system.
In the Marunouchi area, new technology has been introduced by taking advantage of building reconstruction within the district heating-cooling network connection area as an opportunity to install a new or updated plant. Constructed in December 2020, the “Supertube” is a highly earthquake-resistant 250-meter long culvert running north to south along Marunouchi Naka-Dori Avenue which is 30 meters underground. The heat supply pipes inside it form an arterial network that will underpin the stable supply of energy in the Marunouchi area. The supply of heat generated by the high-efficiency equipment at the Marunouchi Nijubashi Building plant through the Super Tube will reduce CO2 emissions and increase energy efficiency in the Yurakucho district.
With the construction of the Super Tube, the steam network linking the Marunouchi 1-chome, Marunouchi 2-chome, and the Yurakucho districts is now complete, and the mutual backup function between plants in an emergency has also been strengthened. Moreover, the effective use of unused heat is being promoted through the supply of exhaust heat generated by the cogeneration system to multiple buildings in the area through the steam network.
Formulation of Smart Energy Urban Development Action 2050
Smart Energy Urban Development Action 2050
In March 2021, Mitsubishi Estate formulated Smart Energy Urban Development Action 2050, a vision for a decarbonized urban economy, concentrating on the Otemachi, Marunouchi, Yurakucho area. The two companies will work on symbiotic and comprehensive energy policies that fully capitalize their management resources with the aim of next-generation urban development to maximize both environmental value and socioeconomic activity.
Central to Smart Energy Urban Development Action 2050 is the realization of an urban microgrid that will contribute to energy resilience, climate change countermeasures, and decarbonization in this area. The creation of an urban microgrid contributes to climate change countermeasures and decarbonization during normal times, while also ensuring energy resilience to support business continuity in the area in the event of a major earthquake and other emergencies, thereby maximizing socioeconomic activity of this central business district.
Smart Energy Urban Development Action 2050 has set out three management strategies: (1) supply management strategy, (2) supply and demand management strategy, and (3) linkage and business management strategy. Measures will be implemented in these three directions.
Outline of the Strategies
Outline of the Strategies
(1) Supply Management Strategy
| Decarbonization of electricity (proactive introduction of renewable energy) | We will proactively introduce renewable energy in order to drive decarbonization of electricity. |
|---|---|
| Decarbonization of heat and construction of optimum energy portfolio | Together with optimizing the combined heat and power portfolio, we will promote decarbonization of heat, which will contribute to the overall portfolio. |
| Business continuity based on integrated heat and power and self-owned power sources; enhanced efficiency through area supply control | In addition to building a system that can supply each building with heat and electricity in an integrated manner, we will establish an autonomous emergency system through the ownership and operation of self-sustainng power sources and further improve efficiency in normal times through area supply control. |
| Area supply management and load levelling control using demand response*1, heat and power storage, and VPP*2, etc. | We will build systems that will manage heat and power supply within the area effectively, including coordinated supply among buildings and time band leveling, utililizing demand response, power and heat storage, VPP and other methods. |
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- Demand response: refers to changing power demand patterns by controlling energy usage volume on the energy consumer side
- Virtual Power Plant (VPP): A cloud-based distributed power plant that uses information technology to aggregate the capacities of different distributed energy resources and function as if it were a physical power plant
(2) Supply and Demand Management Strategy
| An approach with long-term building stock in mind | We will manage from the perspective of the future building portfolio with an eye on the long-term rebuilding schedule in the area. |
|---|---|
| Making newly developed buildings emissions-free | For buildings developed in the future, we will study measures that contribute to maximizing energy conservation performance and make buildings emissions-free. |
| Improvement of energy consumption efficiency in existing buildings | We will make effectively timed investments that contribute to greater energy conservation and smarter building design and operation with an eye on the repair life cycle of existing buildings. |
| Upgrading of management through "BENI," an independently developed next-generation cloud-based BEMS platform | We are developing our own next-generation cloud-based building and energy management system (BEMS) that will contibute to improving the operational efficiency of the diverse parties involved in building operation, as well as visualizing and providing an overall picture for energy conservation activities. |
| Demand-side load management using demand response and power and heat storage, etc. | We will engage in energy demand-side load management using demand response, power and heat storage, and other methods to encourage more efficient energy use. |
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(3) Linkage and Business Management Strategy
| Participation in renewable energy business and contribution to regional revitalization | In addition to participating in renewable energy projects across Japan, we will contribute to regional revitalization and local community development that helps to promote industry and create jobs in varied regions. |
|---|---|
| Development of cocreation with energy businesses | We will develop relationships for cocreation that go beyond business transactions as an energy consumer with businesses in energy-related fields, including power generation, transmission and distribution, electricity retail, gas supply, and aggregator business. |
| Promotion of collaborative verification and R&D in the Marunouchi area | We will provide our assets in the area as demonstration fields for the implementation and verification of new technologies, thereby contributing to their establishment. |
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Promoting Renewable Energy>Promoting Use of Renewable Power in Buildings
Promoting Renewable Energy
In achieving its medium-to-long term targets (SBTs) for greenhouse gas emissions reductions and the target for the ratio of renewable power (RE100), the Mitsubishi Estate Group believes that it is imperative to switch the electricity used in the buildings it owns and operates to electricity derived from renewable energy. Based on this recognition, the Group is steadily implementing a switch to renewable power. In fiscal 2022, the rate of renewable electricity reached 50% as a result of transitioning to electricity derived from renewable sources at almost all of the approximately 50 Company-owned office buildings and commercial facilities*1 located in Tokyo and Yokohama, as well as Company-owned office buildings in Hiroshima and Sendai. The initiative is still expanding. The renewable electricity introduced by the Group complies with RE100, combining green electricity and FIT non-fossil-fuel energy certificates with tracking information. Since the buildings will be powered entirely by renewable electricity,*2 the tenants of said buildings are effectively deemed to be using renewable electricity.
- “Company-owned buildings” refers to buildings and commercial facilities of which the Company owns a 50% equity stake or higher, excluding buildings owned in the capital-recycling business and buildings slated to be redeveloped. Regarding buildings and commercial facilities of which the Company owns less than a 50% equity stake, the Company intends to introduce renewable energy-based electricity at certain properties in collaboration with building operators and other parties.
- Electricity supplied by gas cogeneration systems, etc., is generated using carbon-neutral city gas.
See the following for the list of buildings that have introduced renewable energy.
List of Buildings Introducing Renewable Energy
Procurement of Renewable Energy with Additionality through Virtual PPAs
In November 2023, Mitsubishi Estate concluded virtual PPAs, schemes for trading the environmental value of renewable energy, with two power generation companies in order to accelerate the switch to renewable energy in urban centers where there is a large demand for power such as the Marunouchi area.
A virtual PPA is a scheme that allows power users to contribute to the new development of renewable energy plants regardless of the distance from the area of demand, thereby increasing the volume of renewable power generation. This makes the scheme a new option for power users who find it difficult to generate renewable energy onsite in urban areas.
Some of the power generation has already commenced operation, and the plan is to ultimately procure around 4.4 MW (AC) in non-FIT non-fossil fuel certificates, including power generation that will commence operation in the future. The solar power plants are all newly constructed, which means the virtual PPAs are procurement of environmental value with additionality.* We believe that the scheme for procuring environmental value with additionality provided through virtual PPAs will contribute to its use in the new buildings that will continue to be developed in the future. Some of the environmental value will be supplied to the offices at Mitsubishi Estate’s head office (Otemachi Park Building, Chiyoda-ku, Tokyo).
- The idea is to replace existing thermal power generation by establishing new renewable energy generating facilities, thereby contributing to reduction of GHG emissions. Various international initiatives are starting to put an emphasis on this approach, including its partial inclusion in the technical requirements revised by RE100 in December 2022.
Overview of Virtual PPA
Promoting Use of Renewable Power in Logistics Facilities
Promoting Use of Renewable Power in Logistics Facilities
Logicross Zama Komatsubara (completed in March 2022)
Logicross Zama Komatsubara (completed in March 2022), one of the Logicross logistics facilities Mitsubishi Estate develops, obtained Zero Energy Building (ZEB) certification, a first for Mitsubishi Estate, by utilizing an in-house consumption scheme using electricity generated with the facility’s solar panels.
Promoting Use of Renewable Energy at Premium Outlets®
Promoting Use of Renewable Energy at Premium Outlets®
Installed solar panels (Fukaya-Hanazono Premium Outlets)
Premium Outlets® nationwide operated by Mitsubishi Estate • Simon began using 100% renewable energy for electricity (“renewable power”) used in communal areas such as the dining areas of food courts and toilets in June 2022. The renewable power used is sourced by purchasing green energy certificates*. Ami Premium Outlets and Shisui Premium Outlets will also use power generated by carport-type solar power generators.
Fukaya-Hanazono Premium Outlets, which opened in October 2022, is the first Premium Outlets to operate on renewable power for all the electricity used in the facility, including tenant exclusive-use areas. The approximately 8,000MWh of electricity for the entire facility (estimated annual usage) is covered by solar panels and green energy certificates. In addition, the facility features the active adoption of a design that promotes natural light and ventilation, which enhances the environment for visitors in addition to reducing energy consumption.
- A system in which green power is treated as power with the “environmental added value” of reducing CO2 emissions with this value certified by a third party and traded in the form of certificates.
Using Renewable Power in Condominiums
Mitsubishi Estate Residence has been promoting the use of renewable power in condominiums to achieve a 50% reduction in GHG emissions by 2030 compared with 2019, the target set in January 2022.
Expanding Installation of Solar Panels on Condominiums
Mitsubishi Estate Residence has been working to utilize renewable energy by installing the soleco energy-creation system that combines high-voltage collective power systems with solar power systems in newly built condominiums with more than 40 residential units as a general rule since 2010. Mitsubishi Estate Residence will proceed with installation of solar panels on newly built condominiums for sale with less than 40 residential units where soleco has not been installed, while also introducing “soleco+*” for newly built condominiums for lease.
- An electricity supply system that combines solar panels and non-fossil fuel energy certificates
Switching All Electricity in Condominiums to Non-Fossil Fuel Energy Sources (Carbon Offsetting Using Electricity with Non-Fossil Fuel Energy Certificates)
Mitsubishi Estate Residence will switch to electricity with non-fossil fuel energy certificates for the electricity that the customers purchase at The Parkhouse brand of condominiums for sale. Mitsubishi Estate Residence will switch to electricity with non-fossil fuel energy certificates for the high-voltage collective power purchased at The Parkhouse brand of condominiums and enable customers to contract for electricity with non-fossil fuel energy certificates at the time of delivery for The Parkhabio brand of condominiums for lease. By doing this, the company will realize the supply of electricity with non-fossil fuel energy certificates that does not emit CO2 in all newly built condominiums for sale and lease by 2030. Approximately 60%* of the energy that customers use at home is electricity, so switching to electricity free of fossil fuels can reduce CO2 emissions in the daily lives of customers.
- Based on research by Mitsubishi Estate Residence
Energy Management Initiatives>Promoting the Use of Carbon Neutral City Gas
Promoting Energy-Saving Measures
Promoting ZEB and ZEH in New Buildings and Rental Apartments to Reduce Environmental Impact
Otemachi Gate Building
Mitsubishi Estate acquired its first ZEB Ready (office category) certification for Otemachi Gate Building, a high-rise tenant office building, previously known as Uchi-Kanda 1-chome Project, which is scheduled for completion at the end of January 2026. The energy conservation measures employed in this project are tested at the Group’s headquarters to ensure they are energy efficient and facilitate a comfortable environment. Starting with this property, the Group aims to achieve high environmental performance in line with ZEB requirements for all new buildings to be developed. Furthermore, Mitsubishi Estate Residence makes it its goal to meet or exceed the ZEH-M Oriented Standard in new condominiums and new rental apartments under its CO2 emissions reduction strategies (formulated in January 2022). The entire Group will work together to reduce the environmental impact of its buildings and to provide new value.
Combining Energy Saving and Energy Creation to Enable Sustainable Living The First ZEH-M Ready Feature for The Parkhouse Brand
Reducing CO2 Emissions in Condominiums for Sale and for Lease
Condominium Household Account Books (Japanese only)
In addition to introducing ZEH-M and renewable energy under the CO2 emissions reduction strategy, Mitsubishi Estate Residence will gradually transition to using concrete mixed with blast furnace cement, which emits fewer CO2 emissions, as a general rule for on-site piling in all new condominiums for sale or rent that it develops as part of its efforts to reduce CO2 emissions during construction.
Since 2013, Mitsubishi Estate Residence has been distributing Condominium Household Account Books to those considering buying a unit in The Parkhouse brand of condominium for sale. This account book presents approximation of utilities and other running costs to be incurred after moving into the condominium and communicates energy conservation performance in monetary value, thereby helping potential customers make more informed purchasing decisions.
Since October 2021, Mitsubishi Estate Residence has been disclosing the CO2 emissions of each unit, which is expected to encourage residents to reduce emissions in their daily lives. In its renovation (purchase and resale) business as well, Mitsubishi Estate Residence provides customers with Energy Conservation Performance Reports, which disclose information on energy performance following the style of the Condominium Household Account Books. Mitsubishi Estate Residence will continue to accelerate its efforts to introduce the ZEH-M standard, renewable energy, and take other initiatives.
Combining Aerotech with Solar Power Generation to Meet Net Zero-Energy House (ZEH) Standards
Combining Aerotech with Solar Power Generation to Meet Net Zero-Energy House (ZEH) Standards
Aerotech is a central air conditioning system that Mitsubishi Estate Home offers in its custom-built homes. It provides heating, cooling, and ventilation for the home using a single indoor unit. The Aerotech system delivers the industry's top-class heating and cooling efficiency that helps lower power consumption while allowing residents to control room temperatures across the entire residence, including the bath and toilet. Since its debut in 1995, the system has been installed in more than 90% of the company's custom-built detached homes, and is in use in more than 10,000 houses. Aerotech is continuing to evolve as an entire-home air conditioning system pioneer.
Starting October 2019, Mitsubishi Estate Home, in collaboration with a service provider, began offering Zuttomo Solar for Aerotech, a service that provides free installation of solar power generation equipment in detached custom-built homes. By combining solar power generation with features such as Aerotech and the Home Energy Management System (HEMS), CO2 emissions can be reduced by nearly 361 kg per year compared with homes heated and cooled using individual heat pump air conditioners. Furthermore, the annual power capacity delivered by the solar power generation system (approximately 2,600 kWh equivalent*1) significantly exceeds annual heating and cooling energy expenditures (approximately 2,100 kWh equivalent*1).
Mitsubishi Estate Home established the CO2 Emissions Reduction Strategy in June 2022. Utilizing its Aerotech and Zuttomo Solar for Aerotech services, the company will continue promoting the Net Zero Energy House (ZEH) and the Nearly-ZEH*2 initiatives (target ZEH percentage by fiscal 2030: 85%) by upgrading the insulation performance of properties, using highly efficient equipment, and making innovations in design techniques.
- Figures are simulations by Mitsubishi Estate Home assuming an approximately 150 square meters model plan (as of July 2023).
- Advanced housing that looks ahead to ZEH. It features a highly insulated exterior shell and highly efficient, energy saving equipment with annual primary energy consumption close to zero through use of renewable energy, etc.
Initiatives proposed by the Architectural Design and Engineering Group; Environmental Architecture of Sharing Wellness and Happiness / Net Zero Energy Building (ZEB)
Initiatives Proposed by the Architectural Design and Engineering Group; Environmental Architecture of Sharing Wellness and Happiness / Net Zero Energy Building (ZEB)
Mitsubishi Jisho Desing Inc. has defined "environmental architecture" as architecture that allows residents and users to share wellness and happiness to offer high added value architectural design. it aims to be environmentally conscious, provide comfort, promote wellness, and deliver personal design for higher productivity. This new concept delivers the design of comprehensive environmental where interactions among people create new and diverse values.
ZEB Initiatives—Achieving both Net Zero Energy Building and Comfort
In addition to improving "energy efficiency" toward ZEB, we are introducing a variety of environmentally friendly technologies in large-scale buildings with the aim of creating a highly comfortable working environment that provides diverse work styles and worker preferences. These technologies have been introduced through the development of new systems, the experimental stage, and the demonstration stage in small and medium-sized buildings, and we are working on the design of tenant office buildings with next-generation energy efficiency and comfort based on simulations and actual measurements.
Organizing Global Warning Prevention Council Meetings
Working Together with Tenants
Organizing Global Warning Prevention Council Meetings
Mitsubishi Estate has been organizing yearly Global Warming Prevention Council meetings since 2008, collaborating with the tenants in its buildings. The Council meetings are convened for an explanation of CO2 emission reduction and energy-saving initiatives, based on the Tokyo Metropolitan Environmental Security Ordinance and the Energy Saving Act, and to provide updates on their progress. Mitsubishi Estate will continue this initiative to provide tenants with information on energy-saving activities underway in the building, their concrete reduction targets, and energy-saving methods that can thereby promote energy-saving activities together with its tenants.
Publication of the Sustainability Guide
Publication of the Sustainability Guide
Since fiscal 2019, Mitsubishi Estate and Japan Real Estate Asset Management have jointly published the Sustainability Guide, which is distributed to office tenants with support from Mitsubishi Jisho Property Management.
In order to realize the sustainable urban development and contribution to the SDGs set out by the Mitsubishi Estate Group, it is necessary to collaborate with all stakeholders involved in urban development and build cooperative relationships. The guide will primarily be utilized as a communication tool for promoting collaboration with office tenants to help facilitate a sustainable world.
- Main Topics
- Sustainability Guide Vol.1 (published 2019) : New office spaces and workstyle reform
- Sustainability Guide Vol.2 (published 2021) : What an office should be like in the "new normal" era・Recycling waste
Green Lease Program Benefits Both Owners and Tenants
Green Lease Program Benefits Both Owners and Tenants
Japan Real Estate Asset Management (JRE-AM), which provides asset management services for Japan Real Estate Investment (JRE), has been actively promoting renovations of equipment in building stock aimed at reducing environmental impact. Its aim is to build a portfolio that is highly rated by tenants and investors that prioritize environmental performance of buildings.
In general, building owners are reluctant to introduce environmental equipment renovations because they do not necessarily produce economic benefits commensurate with the investment. In these circumstances, JRE-AM has introduced a Green Lease Program under which a portion of the reduction in energy usage fees received by tenants is returned to building owners for a certain period. Taking advantage of the program, the company has been progressively converting lighting in tenant use areas to LED. This also has the advantage of dramatically reducing electricity fees for tenants, creating a "win-win" benefit for both tenants and building owners.
By expanding the Green Lease Program, JRE-AM will continue to provide value-added, environmentally-friendly real estate that contributes to CO2 reduction.
Establishing New Green Lease Clause
Establishing New Green Lease Clause
In order to promote energy conservation in collaboration with tenants, Mitsubishi Estate has established a new green lease clause in its lease agreement template.
See the following for the percentages of agreements based on the green lease clause.
