Sustainability
Environment
Our policies and initiatives for the environment are introduced here.
Policy on Climate Change
1. Policy
We recognize climate change as a critical issue that will bring about dramatic changes in the natural environment and social structure and will significantly impact business activities overall. Based on this recognition, we will aim for sustainable and stable earnings over the long term by appropriately assessing the risks and opportunities posed by climate change and incorporating them in the business management and the investment management policies of both IRM and the investment corporations that we manage.
2. Governance system to address climate change
To systematically promote sustainability improvement activities, we have established two organizations: the Sustainability Promotion Committee, which is chaired by the representative director, and the Sustainability Practical Committee, which is composed of employees responsible for actual sustainability-related work in each department. The Sustainability Promotion Committee meets more than twice a year to implement a PDCA cycle with the aim of improving asset value over the medium to long term. The PDCA cycle consists of the following steps: formulate sustainability goals and initiatives, identify and evaluate climate-related risks and opportunities, analyze climate-related risks and manage them company-wide, monitor environmental performance as well as the results of ESG evaluation by external organizations, check the degree of achievement of goals, and reset goals for remaining challenges and new challenges. The Sustainability Practical Committee, on the other hand, is responsible for pursuing various measures necessary to achieve the goals. The goals are set by the representative director, who is the chief executive officer of sustainability, and the progress made toward goals and on initiatives is reported to the Boards of Directors of IRM and each investment corporation more than once a year.
Supporting the Recommendations of the Task Force on Climate-related Financial Disclosures
In March 2020 we expressed support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD)*. We recognize climate change as a critical issue that will affect the continued growth of IRM as well as the investment corporations we manage in the years to come. Based on the TCFD recommendations, we will continue to contribute to the achievement of a sustainable society by assessing the impact of climate change on our businesses, counteracting risks and taking advantage of opportunities, and proactively disclosing related information.
* TCFD was established in 2015 by the Financial Stability Board, which consists of central banks and financial regulators of the world’s major countries. In June 2017, TCFD issued recommendations urging companies to disclose information on climate-related business risks and opportunities in the medium to long term, their impact on corporate finances, specific actions and strategies to address those risks, and other factors in order to mitigate risks that could destabilize financial markets.
Participation in the Japan Climate Initiative
Subscribing to the fundamental principles of the Japan Climate Initiative (JCI), we became a member in July 2019.
Following the adoption of the Paris Agreement for the prevention of global warming in 2015, JCI was established by a coalition led by Japanese corporations, municipalities, NGOs, and other bodies actively working to address climate change. It is intended to serve as a network for voluntary efforts toward society’s decarbonization. JCI is aiming for the achievement of a decarbonized society by creating a nation-wide movement, supporting the activities of its member organizations while urging the government to take action, and cooperating with the international community.
For more information, please visit the Japan Climate Initiative website.
Supply Chain Management
We has established a Sustainability Procurement Policy （Former Green Procurement Policy）to put the sustainability policy’s specific component into practice with the cooperation from its suppliers.
To strengthen the engagement with suppliers, All property management companies that our uses as a vendor have been evaluated by conducting surveys at the start of the contract and annually in accordance to the policy, on how they are addressing sustainability issues.
Since we believe it is important to have our major suppliers’ understanding and cooperation, We have notified our Sustainability Procurement Guideline to our major venders, property management companies and building management companies.
