CSR DESIGN CSR Design Green Investment Advisory, Co., Ltd.

BUSINESS

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Services for Real Estate and
Infrastructure Sectors

Support in Improving ESG Assessment

01.GRESB
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GRESB（http://gresb.com/）, is an annual benchmarking assessment to measure Environment, Social and Governance (ESG) integration of companies and funds developing, owning or managing real assets (real estate and infrastructure), and the name of its governing body. We provide support for GRESB participation and results analysis services to companies in the real estate and infrastructure sectors.

For more information on GRESB, please click here.

Our Strengths

We have been officially promoting GRESB in the Japanese market since 2011, and is designated as the recommended Premier Partner for Japan.
While participating as a member of various committees and working groups of the GRESB Foundation, which develops the assessment criteria, we actively communicate relevant information in Japan to the GRESB and gather information on the future direction of development.
With the knowledge we have gained and data accumulated since the early days of the GRESB and our close communication with the GRESB, we provide accurate support to participants for accurate reporting and score improvement.

Examples of Our Consulting Services

Participation Support

We offer the following one-stop services for your participation in the GRESB.
Since GRESB's published materials and information are basically only available in English, we have developed tools to support Japanese-language and support more than 100 companies in the real estate and infrastructure sectors (J-REITs, private REITs, private funds, real estate developers, infrastructure companies, etc.) every year.

  • ●Provision of Japanese-language survey forms, reference guides*, response tools, and webinars*

    ●Advice for your responses and consistency check

    ●Calculation of expected score based on your responses prior to submission to GRESB*

  • ●Translation of responses into English and online entry of responses

    ●Support in responding to the Validation and the Review Period

*For Real Estate only

Response Analysis

We will analyze the assessment results of your responses you submitted in comparison to other participants in Japan.
GRESB also provides an assessment report for each individual company, but we provide a more detailed and easy-to-read report in Japanese that summarizes your company's response data in addition to the trends of other companies' responses in various aspects and indicators. In addition, we also categorize issues that are expected to arise in the following year, estimate score improvement, and propose the direction of your future initiatives. (For Real Estate only)

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Provisional Response Analysis (Gap Analysis)

For those companies considering participation in the GRESB, we offer a "provisional response analysis" in which we calculate your score and analyze the potential for improvement based on your responses, assuming that you had participated in the most recent assessment. This service is useful not only for gathering information from your company and relevant business partners prior to participation, but also for expanding your initiatives in anticipation of participation.

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02.CDP
CDP ACCREDITED PROVIDER 2023

CDP, an international NGO that promotes corporate disclosure of environmental information, in its five-year strategy "Accelerating the rate of change" from 2021 to 2025, has clarified that by 2025 it will expand the scope of disclosure in the environmental sector from the existing "climate change," "water security" and "deforestation" to "biodiversity," "ocean," "land use," "food production" and "waste".

Based on this, new questions are added to the CDP questionnaires every year in response to international trends and investor requests regarding climate change and the natural environment, such as the inclusion of biodiversity-related questions in the Climate Change 2022 Questionnaire and plastics-related questions in the Water Security 2023 Questionnaire. Furthermore, the International Sustainability Standards Board (ISSB) climate-related disclosure standards (IFRS S2) will be incorporated into the CDP questionnaire in 2024, accelerating the expansion of sustainability-related disclosures on a global basis.

The number of companies surveyed has also increased: in 2022, the companies requested to respond to the CDP Climate Change Questionnaire were expanded to include all Tokyo Stock Exchange Prime Market companies. In 2023, those for the CDP Water Security Questionnaire were also expanded.

The conventional three questionnaires that cover climate change, water security, and forests will be integrated starting in 2024, which will further increase the need for action and information disclosure on various environmental issues, with simultaneous resolution of the towoe issues of climate and nature and consideration of both in mind. The real estate and infrastructure sectors, which are considered to have a relatively high impact on climate change, water, and deforestation, are no exception, and it is expected that more emphasis will be placed on the disclosure of such environmental information and that disclosure requirements from all stakeholders will increase.

Our Strengths

We have been a scoring partner of CDP in the climate change, forest and water (only for 2023) areas since 2021, and have expertise in preparing responses based on our knowledge of the CDP questionnaire and scoring experience. In addition to supporting ESG information disclosure, including TCFD compliance, we also focus on services pertaining to climate change-related initiatives, such as climate change risk analysis and support for obtaining SBTi certification, as well as participating in the TNFD Forum to gather information on the TNFD disclosure framework. With this knowledge, we support real estate and infrastructure companies in responding to CDP questionnaires.

Examples of Our Consulting Services

Support in Preparing Responses

For companies that will start responding to the CDP questionnaires in the coming year or later, we provide a one-stop support service from summer to winter every year to help them prepare responses. Specifically, we provide an overview of the questions, response tools for use when preparing responses and answering questions, and advice, etc. In particular, with regard to the climate change questionnaire, we can propose a response framework for some open-ended questions, support in compiling numeric data, estimate the expected score at a certain point, and identify issues to be improved.

Support for Responses and Follow-up after Results are Released

For companies that respond to the CDP questionnaires, we provide one-stop consulting services to prepare for the submission of responses, including support for administrative procedures between CDP and your company, explanation of the question outline and changes from the previous year, provision of response tools for use when preparing responses and answering questions, and advice. We also explain how to read the CDP Score Report (English), which will be issued after score release.

For the Climate Change Questionnaire, we also provide an analysis report service either before or after the score release after submission of responses, which includes the identification of issues at the question level, calculation of the expected score (before release), advice on your activities, and simulation of the expected score after addressing the issues.

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03.PRI
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The PRI (Principles for Responsible Investment) was proposed by former United Nations Secretary-General Kofi Annan and established in 2006 as an investor initiative in conjunction with the United Nations Environment Programme Finance Initiative (UNEP FI) and the United Nations Global Compact, and sets forth six principles for responsible investment. The principles include the integration of Environmental, Social, and Governance (ESG) issues into the investment decision-making process in order to achieve a long-term sustainable international financial system.
Investors may become PRI signatories by demonstrating their commitment to the Principles, and are required to submit an annual report on their responsible investment (RI, so-called ESG investment) practices every year.

The six Principles for Responsible Investment
  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the Principles.
  6. We will each report on our activities and progress towards implementing the Principles.

Our Strengths

Since we became the PRI signatory in 2012, we created and chaired working groups for both real estate and infrastructure of PRI Japan. Currently, we are the members of Real Estate Advisory Committee and Japan Advisory Committee, and based on our accumulated ESG knowledge in the real estate and infrastructure sectors, as well as in the asset owner and financial sectors, we provide comprehensive support to signatory institutions in preparation for the annual report described above.

Examples of Our Consulting Services

Support in Preparing for an Annual PRI Report

We provide the following one-stop services for PRI signatories in conducting their annual reports.

・Explanation of an overview of the annual report and the response process

・Provision of a Japanese version of the response sheet

・Advice on the responses and consistency check

・English translation of responses and online input on behalf of signatory institutions

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04.MSCI
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MSCI publishes the the ESG indexes, such as MSCI Japan ESG Select Leaders Index, which is composed of selected companies that excel in ESG based on the MSCI ESG Ratings. In addition, the trend to take ESG ratings into account as part of the investment process has become widespread in recent years, and the importance of ESG ratings is expected to continue to increase in the future.

Our Strengths

We provide issuers with advice on how to improve their ratings, and analyze the ratings of their competitors, leveraging our accumulated ESG expertise in the real estate and infrastructure sectors, and using data we purchase from MSCI.

Examples of Our Consulting Services

Analysis of Current Assessment

Regarding the assessment in each issuer's ESG ratings report, we compare the current assessment with your existing and ongoing initiatives and disclosed information to identify areas where improvements can be made. For this purpose, we perform an analysis by comparing the current assessment results with those in the J-REIT and real estate sectors

Advice on Disclosure to Improve Ratings

We provide advice on the content of disclosures that should be enhanced in order to improve the MSCI ratings. Specifically, we offer advice on structure and items, content and wording, and review of your company's drafts.

Support for Feedback

We provide support for providing feedback to MSCI so that the status of ESG disclosure is more accurately reflected in the assessment. Specifically, we will prepare a feedback draft regarding the assessment posted on the MSCI Issuer Portal and finalize it after consulting with you. We will also follow up on the results of the feedback.

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Support for Sustainability System Establishment

01.Officers and Employees Trainings ・Suppliers Trainings

We plan and conduct sustainability/ESG themed training, mainly for real estate developers, asset managers, property managers, as well as for those who manage infrastructure funds/assets.

Our Strengths

Although most of the sustainability/ESG trends come from international institutions overseas, we take in the primary information and provide the topics that are closely watched in a timely manner. Also, based on our daily sustainability/ESG consulting experiences especially in real estate and infrastructure sectors, we aim to share the understanding of “why responses to sustainability/ESG are necessary” among the officers and employees by conveying the recent trends in the industry and their backgrounds.

Examples of Our Consulting Services

Officers and Employees Trainings

We plan and conduct sustainability/ESG trainings for officers and employees of developers and asset managers. (Trainings for officers and employees of property managers and tenants are also available upon request.)

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02.Support for Materiality Development

We have been increasingly feeling the sustainability issues on climate change and human rights have the significant impact on the sustainability of corporate activities. Under such circumstances, it is essential to incorporate the sustainability issues into management in order to achieve long-term sustainable improvement of the corporate values.

The Sustainability issues include various elements. The materiality identification process examines which of these issues should be prioritized. The process derives the materiality for your organization while considering the elements surrounding your organization, such as corporate mission/vision, laws and regulations/policies, and stakeholders.

Our Strengths

We support materiality development with the characteristics of real estate and infrastructure sectors in mind, based on our accumulated knowledge on these sectors.
Also, we promote and support the cross-organizational examinations in accordance with our idea that it is desirable for managers and each department to be involved with materiality because it is closely related to management strategy and management planning.
In addition, it is important to take into account the ideas from stakeholders and experts in identifying materiality. By taking advantage of our network in real estate and infrastructure sectors that we have acquired over the years, we are able to propose the examination process that take into account the opinions of experts.

Examples of Our Consulting Services

We provide support in examining materiality using a long list of items asked in global ESG assessments and ESG disclosure frameworks relevant to real estate companies and J-REITs. This long list quantifies the level of materiality in questions on GRI, CDP, and GRESB, after sorting out the content based on the intent of each item. Then, we move ahead on examinations based on materiality of your group companies and sponsors and your business environment and strategies. We recommend a process that involves management and each department, and we can also propose dialogues with stakeholders and experts.
Once materiality is identified, we provide support for its disclosure on your website and various reports. In many cases, we also provide advice on indicators and targets linked with each materiality item.

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03.Support for Policy Development

We support the establishment of corporate structure through the development of “Sustainability Policy” (or “ESG Policy”) and various policies that are predicated on all sustainability initiatives. After thorough meetings with our clients, we tailor-make policies to align with the asset management policies and workflows. We also provide support for the development of new policies and update of existing policies, such as climate change/resilience policy and DEI (Diversity, Equity, and Inclusion) promotion policy.

Our Strengths

It is expected that more practical initiatives will be required for sustainability. Based our daily consulting experiences in sustainability/ESG consulting especially in real estate and infrastructure sectors, we provide support in light with the industry’s latest activities and their backgrounds, enabling us to develop policies with a view to each company's future initiatives.

Examples of Our Consulting Services

Development of “Sustainability Policy”

We support the development of major policies that are predicated on all sustainability initiatives. Many real estate companies and funds have their own sustainability policies reflecting their respective characteristics and share them on their websites.

Development of “Sustainability Promotion System Regulation”

We develop regulations that define the corporate structure (decision of responsible personnel, committee, and reporting process) that manages the sustainability initiatives.

Development of “Energy Management Policy”

We develop specific policies on energy saving and utilization of renewable energy in property management. This policy is a top-priority one along with “GHG Emissions Management Policy” among environment-related policies.

Creation of “Environment Management System (EMS) Manual”

Based on the individual policies for energy, GHG, water, and waste, etc. we create manual for the purpose of establishing, operating, and maintaining (creation of system) in order to efficiently and effectively reduce environmental burden in accordance with PDCA cycle. This manual is intended for future Eco-Action 21 initiatives.

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Support for Sustainability Information Disclosure

01.Climate Change Response

As a big turning point of adoption of Paris Agreement in 2015, while information disclosure based on TCFD recommendations (disclosure of regimes and risks associated with climate change) has disseminated globally, decarbonization initiatives and enhancement of resilience have been progressing day by day. In 2020, it was declared that Japan will achieve a decarbonized society by 2050, and internationally, it was agreed to pursue efforts to limit temperature increase to 1.5°C at COP26 (26th Conference of the Parties to the United Nations Framework Convention on Climate Change) in 2021 and to transition away from fossil fuels at COP28 in 2023.

In 2023, the International Sustainability Standards Board (ISSB) released a sustainability disclosure standards, and in 2024, the Sustainability Standards Board Japan (SSBJ) released an exposure draft of a sustainability disclosure standards in Japan. The market and society are increasingly demanding that companies address climate change.

Our Strengths

We make analyses that capture investors’ expectations based on the latest trends of climate change-related information disclosure and climate scenarios conducted by our researchers and consultants, and international trends related transition risk analysis we obtain as a member of CRREM committee (described below).

Examples of Our Consulting Services

Development of Internal System and Qualitative Analysis on Financial Impact in relation to Climate Change

We support the establishment of foundation for cross-organizational initiatives on climate change-related issues involving management level, through training for your officers and employees and support for development of climate change policy. Also, we provide support for information disclosure in line with TCFD recommendations, ISSB Sustainability Disclosure Standards, and SSBJ Sustainability Disclosure Standards, through qualitative scenario analyses of financial impact of climate risks and opportunities on your business.

Quantitative Analyses on Climate Change-related Financial Impact

We conduct quantitative analyses of the financial impact of climate risks and opportunities on business. In addition to quantifying business risks and opportunities using various literature and statistics, we conduct analyses on transition risks using CRREM (as described later) and constructive analyses on physical risks using GIS (Geographic Information System).

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    Creation of waterfall chart based on quantification
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    Space analysis of properties using GIS
Formulation of Decarbonization Roadmap and Transition Plan

We support in the development of a roadmap for achieving net zero, an important component of the transition plan required by the CDP, TCFD, ISSB, etc., using our tools (which enables preparation of roadmaps for the entire organization and for each application).

In addition, we support your organization in formulating a transition plan to address climate-related risks and opportunities that is comprehensive in its elements, including governance, financial planning, and engagement, with reference to the TCFD, CDP, etc.

Transition Risks Analyses using CRREM

  • We conduct analyses on risks of stranded assets (excessive carbon emission reduction pathways) of individual property in portfolio and the entire portfolio, using CRREM (Carbon Risk Real Estate Monitor) which visualizes the real estate transition risks. In the analyses, we sort out and report the results of changes in transition risks when energy efficiency retrofit and renewable energy are introduced. (See chart on the right for sample)

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    Sorting out the analysis condition
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    Ratio of stranded assets in portfolio
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    Analysis result for each property
Support for SBT (Science-Based Target) Setting and Application

  • SBT (Science-Based Target) is greenhouse gas (GHG) reduction target that are scientifically consistent with the targets set by the Paris Agreement (which limits global temperature increase to well below 2℃ above pre-industrial levels, and also to 1.5℃). We support the development of GHG emissions reduction target and application process for SBTi (Science-Based Target Initiative) to receive SBT certification.

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    Support for development of GHG emissions reduction pathway
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    Support for SBTi application process
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02.ESG in General

In recent years, there has been an active debate on sustainability information disclosure both domestically and internationally. Globally, the Sustainability Disclosure Standards Board (ISSB), established under the IFRS Foundation, has developed sustainability-related disclosure standards. In Japan, the Sustainability Standards Board of Japan (SSBJ) is studying standards for Japan.

Our Strengths

Based on the knowledge we have accumulated in the real estate and infrastructure sector, we support information disclosure that takes into account the characteristics of the real estate and infrastructure sector. We also work with a team that investigates trends in sustainability information disclosure to provide advice based on the latest trends.
Regarding disclosure related to ESG in general, we not only provide disclosure support that refers to GRI and SASB, but also support service focusing on ESG evaluation items such as MSCI and FTSE. We also provide disclosure advice based on the movement to expand sustainability information disclosure both domestically and internationally.

Examples of Our Consulting Services

Support for GRI-compliant Disclosure

  • The Global Reporting Initiative (GRI) is an international non-profit organization established in 1997 to develop standards for sustainability reporting. GRI is used by more than 10,000 organizations in over 100 countries and is considered the most widely used sustainability reporting standards in the world.
    In October 2021, GRI Standards 2021, a revised version of the GRI Standards, was released to the public, and ESG data disclosed after January 2023 are required to be in line with GRI Standard 2021.

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    Source: System of GRI Standards , GRI 1: Foundation 2021

We compare your company’s disclosures with the disclosure items required by the GRI, provide advice on new disclosures, and assist in the preparation of GRI Content Index.

Support for SASB-compliant Disclosure

The standards set by the SASB (Sustainability Accounting Standards Board) are a globally accepted sustainability disclosure standards originating in the United States. It is characterized by the creation of sector-specific standards and the establishment of sector-specific disclosure indicators. It is now integrated into the IFRS Foundation and incorporated into the Sustainability Reporting Standards prepared by the ISSB, and has been attracting more attention in recent years.We support the creation of Content Index and provide advice on disclosure content and descriptions. Additionally, for participants in the GRESB Real Estate Assessment, we will provide a Content Index tool that allows you to directly use the responses used in the GRESB report.

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Assessment and Provision of Opinion on Impact Investment

01.Assessment and Provision of Opinion on Impact Investment

We carefully examine your real estate investment project, verify its compatibility with the existing established frameworks*, and provide advice on whether it is consistent with their requirements. When we find it consistent, we issue a third-party opinion. We also provide clients in the formation stage of the project with a basic explanation on impact real estate investment and advise them on how to meet the requirements for impact real estate investment.

* Positive Impact Finance Principles, Positive Impact Real Estate Investment Framework, United Nations Environment Programme Finance Initiative (UNEP FI); Concept Paper on Impact Finance, Ministry of the Environment; Practical Guidance for “Social Impact Real Estate,” Ministry of Land, Infrastructure, Transport and Tourism; etc.

Our Strengths

We have long been involved in the formulation of positive impact finance frameworks at home and abroad, which puts us in a position to get the latest information at any time through our achievements and networks. Our CEO, Ryuichi Horie, was involved in the formulation of the Positive Impact Real Estate Investment Framework as an advisor to the UNEP FI Property Working Group, and has contributed to the organization of the Practical Guidance for “Social Impact Real Estate” promoted by the Ministry of Land, Infrastructure, Transport and Tourism as a member of the review committee. In addition, our research group served as the secretariat for the Positive Impact Finance Task Force FY 2020 of the Ministry of the Environment, involved in the development of the Concept Paper on Impact Finance and the Green Impact Assessment Guide.

Examples of Our Consulting Services

Description of the Basics of Impact Investment

We will describe the basics essential for practicing positive impact investment, for example the principles and framework of positive impact investment as well as concepts and terminology indispensable for considering your projects.

Advice on Structuring Impact Investment Projects

After hearing your intentions regarding your project, we will conduct a comprehensive analysis using an existing established framework to advise you on positive impacts that can be identified and negative impacts that need to be managed. If necessary, we will also provide advice on what should be changed to establish your project as an impact investment as well as the design of indicators available for monitoring.

Provision of Third-party Opinion

We will issue a third-party opinion in Japanese (and a summary in English) which indicates that your project is compatible with an existing framework.

Typical examples of a third-party opinion include:
  • ●Third-Party Opinion on List of Impact KPIs for Social Impact Real Estate Investment and Finance of MUFG Bank, Ltd. on February 22, 2024
  • ●Third-party opinion on the impact investment regarding Meiji Yasuda Hall Fukuoka of Meiji Yasuda Life Insurance Company on October 6, 2023
  • ●Third-party opinion on the impact investment regarding KARUIZAWA COMMONGROUNDS of Japan Metropolitan Fund Investment Corporation on March 30, 2022
  • ●Third-party opinion on the impact investment project of the Dai-Ichi Life Insurance Co., Ltd. related to the refurbishment of properties under management of Obihiro City on March 30, 2021
  • ●Third-party opinion on the impact investment project of Industrial & Infrastructure Fund Investment Corporation on January 9, 2019
Provision of an Impact Measurement and Management (IMM) Confirmation

To ensure the practice of Impact Measurement and Management (IMM) that is strongly required in impact investment, we issue a report by checking that the creation of positive impacts and the control of negative impacts are appropriately measured and managed for your projects, and whether the results are correctly applied to business administration.

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Services for Governmental Agencies,
Public Institutions, and Business Companies

01.Overseas Trend Research and Recommendations regarding Sustainable Finance

We research the latest trends in sustainable finance at home and abroad to provide recommendations for governmental agencies, international institutions, and other organizations.

Our Strengths

Our researchers have earned Ph.D.s or master’s degrees from famous overseas universities, and have extensive experience in multilingual literature and interview research. Their areas of expertise include politics, economics, law, finance, and natural sciences. We are able to quickly grasp the latest trends, incorporating information obtained through our networks with the United Nations Environment Programme-Finance Initiative (UNEP-FI), United Nations Principles for Responsible Investment (PRI), PCAF, GRESB, CDP, TNFD (Task Force on Nature-related Financial Disclosure) Forum, etc. Our research services are characterized by our ability to conduct research and analysis from a multifaceted perspective.

Examples of Our Research Services

Research Activities for Governmental Agencies

We carry out research on sustainable finance, ESG investment, and impact investment for governmental agencies. Our experience includes international trend research on energy efficiency and decarbonization policies in countries and cities, focusing on the areas of finance and climate change, biodiversity and ecosystem conservation, circular economy, and chemical substances as well as the building and real estate sectors.

Achievements

  • Contracted research, analysis, and dissemination regarding the promotion of the green finance market (Ministry of the Environment, subcontracted)

    We analyzed and discussed themes that can be particularly important when forming a sustainable finance market in Japan, for example global discussions on biodiversity conservation as shown by TNFD (Taskforce on Nature-related Financial Disclosures), and international trends to curb greenwashing, and provided suggestions for domestic policies.

  • Survey and Other Work for Creating Green Finance Model Cases (Ministry of the Environment)

    We conducted hearings on two of the cases selected as models in the Impact Finance category under the Ministry of the Environment's 2021 "Green Finance Model Case Creation Project," and summarized their initiatives and results. In addition, focusing on the role of Green FinTech as a measure to expand the green finance market, we investigated the latest trends in Singapore and Switzerland, and based on the findings, examined its potential in Japan.

  • Contracted research on overseas emissions trading schemes, etc. (Tokyo Metropolitan Government)

    The report covers trends in overseas emissions trading schemes such as the EU ETS (European Emissions Trading Scheme) and CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation). In addition, the report summarized technologies related to carbon capture and storage such as DACCS and BECCS, the latest trends in systems and policies surrounding such technologies, and the current status of carbon crediting for carbon reduction and removal activities.

  • Contracted research and groundwork toward the promotion of practical ESG finance (Ministry of the Environment, subcontracted)

    Major global trends in sustainable finance were identified to research, analyze, and report on their details, such as the further development of sustainability information disclosure, as evidenced by the International Sustainability Disclosure Standards released by ISSB (International Sustainability Standards Board) and the draft European Sustainability Reporting Standards published by EFRAG (European Financial Reporting Advisory Group), as well as the publication of the methods for measuring biodiversity impact, such as PBAF, and the announcement of guidance for financial institutions on their net zero transition plans by GFANZ (Glasgow Financial Alliance for Net Zero).

  • Contracted development of the Green Finance Portal site for the ESG Finance Step-up Promotion Program (Ministry of the Environment, subcontracted)

    International policy trends in sustainable finance were researched, analyzed, and reported, including movement in the EU and other countries to regulate and mandate the disclosure of climate-related information (according to TCFD recommendations) and sustainability information as well as the global status of establishing sustainability taxonomy that sets criteria for evaluating the sustainability of economic and other activities.

  • Research and analysis of impact finance (Ministry of the Environment)

    We served as the administrative secretariat for a review committee in the Ministry of the Environment, which discusses basic ideas and evaluation methods for impact finance that seeks to achieve both economic returns and greater social returns. In the review meeting, we developed the final product, a guidance for evaluation methods, by providing the latest trends, examples, and related information.

  • Contracted support operations for the adoption and expansion of ESG finance in Japan through the ESG Finance Step-up Promotion Program (Ministry of the Environment, subcontracted)

    Interviews were conducted on international impact investment and loan initiatives to discuss the mapping of various global frameworks and their applicability in the domestic market environment.

  • Contracted research on emissions trading systems and other schemes in overseas jurisdictions (Tokyo Metropolitan Government)

    With a focus on the EU ETS and RGGI in the US, changes in the reform of the emissions trading systems were researched in terms of overseas exchanges and their schemes, auctions in particular.

  • Contracted research on the effects of climate change measures in overseas jurisdictions (Tokyo Metropolitan Government)

    We organized the trends in energy efficiency measures for buildings taken by cities into policy maps and carried out case studies on the understanding of their effects and procedures for providing information.

Research Activities for International Institutions

In research for international institutions, we have organized measures related to sustainable finance in Japan and overseas, issued a questionnaire to financial institutions, and interviewed stakeholders.

Achievements
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02.Research and Recommendations for Various Domestic and International Measures for Energy Efficiency and Decarbonization of Buildings and Cities

We can answer requests from different standpoints by leveraging our relationships with a variety of domestic and international entities involved in real estate, infrastructure, and ESG investment. Feel free to contact us if you are having trouble finding targeted information on sustainability measures for buildings or cities.

Our Strengths

We can provide deliverables for your desired theme in your preferred format by combining our domestic and international knowledge accumulated by acting as GRESB’s recommended Premier Partner for Japan with the insight of our research team that has been involved in research work for governmental agencies.

Examples of Our Consulting Services

Research on Advanced Cases Overseas

On themes that match your wishes, we can research regional development in overseas cities, the sustainability measures and certification systems of overseas developers, and so on to provide the results in the format you specify.

Research on Regulations for Buildings toward Decarbonization

We also undertake research on policy trends at country and city levels, such as what plans cities have for decarbonization and what kind of regulations are actually applied to buildings.

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Services for Asset Owners
and Financial Institutions

01.Consulting on ESG Investing and Financing in the Real Estate and Infrastructure Sectors

Asset owners and financial institutions are expected to play an important role in providing finance for sustainable economic growth, and many national and international initiatives, including the Principles for Responsible Investment (PRI), call on them to promote sustainable investment and lending.
Asset owners and financial institutions need to respond to societal demands to build an evolved financing process that incorporates ESG factors, which is essential to maintaining a balance between economic return and sustainability.

Our Strengths

As a premier partner of GRESB, we possess cutting-edge and comprehensive expertise in the trends of ESG in real estate and infrastructure. Consequently, we can provide asset owners and financial institutions with global and domestic insights on incorporating ESG factors into their real estate and infrastructure investing and financing processes.

Examples of Our Consulting Services

Support for Establishing Investment and Financing Processes Utilizing ESG

We offer guidance to asset owners and financial institutions on integrating ESG factors into their current investment and financing processes for real estate and infrastructure. Considering the ESG-responsive features of each property type (e.g., office, retail, hotel, etc.), we support them in building investment and financing processes by providing pertinent information on the specific ESG factors to prioritize in investment execution and allocation.

Reporting on ESG integration

In connection with the consultancy services mentioned above, we can also generate reports as an objective opinion on the positioning of the investment and financing process. These reports offer a third-party perspective on the appropriateness of the investment and financing process in terms of ESG promotion, etc. As such, they can be utilized as compelling external documentation for market appeal.

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02.Climate Change Consulting

Since the adoption of the Paris Agreement in 2015, which marked a major turning point, global efforts toward decarbonizatione and enhancement of resilience have been progressing steadily. In 2020, it was declared that Japan will achieve a decarbonized society by 2050, and globally, it was agreed to pursue efforts to limit temperature increase to 1.5°C at COP26 (26th Conference of the Parties to the United Nations Framework Convention on Climate Change) in 2021 and to transition away from fossil fuels at COP28 in 2023.

In 2023, the International Sustainability Standards Board (ISSB) released sustainability disclosure standards, and in 2024, the Sustainability Standards Board Japan (SSBJ) released an exposure draft of sustainability disclosure standards in Japan. The market and society are increasingly demanding that companies address climate change.

Our Strengths

We support financial institutions in responding to climate change based on the latest developments in climate-related disclosures and climate scenarios provided by our research team, and the global trends in portfolio decarbonization that we have access to as the PCAF Japan Secretariat.

Examples of Our Consulting Services

Analysis of Climate Change-Related Risks and Opportunities

We provide qualitative and quantitative analysis of the financial impact of climate change risks and opportunities on your business, including commentary on climate-related scenarios by the IPCC, IEA, NGFS and others, as well as quantification of business risks and opportunities using literature and statistics, financed portfolio analysis, transition risk analysis on your owned real estate properties using CRREM, physical risk analysis using GIS (geographic information systems) and we also advise on disclosing them.

Materiality Development Support

We identify materiality using a long list of items asked for in global ESG assessments and ESG disclosure frameworks that are relevant to asset owners and financial institutions as a starting point. We recommend involving management and other departments in the materiality study process based on your company's business environment and strategy, and can propose stakeholder and expert involvement.
Once the materiality has been identified, we can also support its disclosure on your website and in various reports. In many cases, we also advise on te metrics and targets linked to each materiality item.

Development Support for Sustainability Policy and Sustainability Promotion System

We formulate sustainability policies by considering your company's materiality, existing policies and strengths, and regulations that define sustainability promotion systems aligned with your company's governance structure.

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03.Advice on Impact Assessment and Provision of Opinion on Impact Investment

We provide advice and services for impact assessment of your investment and loan. As for the issue of an opinion, we will carefully examine your investment project, verify its compatibility with the existing established frameworksM*, and provide advice on whether it is consistent with their requirements. When we find it consistent, we issue a third-party opinion.

* Positive Impact Finance Principles, Positive Impact Real Estate Investment Framework, United Nations Environment Programme Finance Initiative (UNEP FI); Concept Paper on Impact Finance, Ministry of the Environment; Practical Guidance for “Social Impact Real Estate,” Ministry of Land, Infrastructure, Transport and Tourism; etc.

Our Strengths

We have long been involved in the formulation of positive impact finance frameworks at home and abroad, which puts us in a position to get the latest information at any time through our achievements and networks. Our CEO, Ryuichi Horie, was involved in the formulation of the Positive Impact Real Estate Investment Framework as an advisor to the UNEP FI Property Working Group, and has contributed to the organization of the Practical Guidance for “Social Impact Real Estate” promoted by the Ministry of Land, Infrastructure, Transport and Tourism as a member of the review committee. In addition, our research group served as the secretariat for the Positive Impact Finance Task Force FY 2020 of the Ministry of the Environment, involved in the development of the Concept Paper on Impact Finance and the Green Impact Assessment Guide.

Reference:

Examples of Our Consulting Services

Description of the Basics of Impact Investment

We will describe the basics essential for practicing positive impact investment, for example the principles and framework of positive impact investment as well as concepts and terminology indispensable for considering your projects.

Advice on Structuring Impact Investment Projects

After hearing your intentions regarding your project, we will conduct a comprehensive analysis using an existing established framework to advise you on positive impacts that can be identified and negative impacts that need to be managed. If necessary, we will also provide advice on what should be changed to establish your project as an impact investment as well as the design of indicators available for monitoring.

Provision of Third-party Opinion

We will issue a third-party opinion in Japanese (and a summary in English) which indicates that your project is compatible with an existing framework.

Typical examples of a third-party opinion include:
  • ●Third-Party Opinion on List of Impact KPIs for Social Impact Real Estate Investment and Finance of MUFG Bank, Ltd. on February 22, 2023
  • ●Third-party opinion on the impact investment regarding Meiji Yasuda Hall Fukuoka of Meiji Yasuda Life Insurance Company on October 6, 2023
  • ●Third-party opinion on the impact investment regarding KARUIZAWA COMMONGROUNDS of Japan Metropolitan Fund Investment Corporation on March 30, 2022
  • ●Third-party opinion on the impact investment project of the Dai-Ichi Life Insurance Co., Ltd. related to the refurbishment of properties under management of Obihiro City on March 30, 2021
  • ●Third-party opinion on the impact investment project of Industrial & Infrastructure Fund Investment Corporation on January 9, 2019
Provision of an Impact Measurement and Management (IMM) Confirmation

To ensure the practice of Impact Measurement and Management (IMM) that is strongly required in impact investment, we issue a report by checking that the creation of positive impacts and the control of negative impacts are appropriately measured and managed for your projects, and whether the results are correctly applied to business administration.

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04.Training Sessions for Executives and Employees on ESG, TCFD, etc.

We can organize and deliver training sessions on sustainability/ESG topics, mainly for executives and employees of asset owners and financial institutions.

Our Strengths

Currently, many sustainability and ESG trends are spread from overseas, such as from international organizations. We keep track of such primary information and provide our clients with timely updates on hot topics. We will also be able to present the latest developments in the industry and their background, based on our knowledge as the PCAF Japan secretariat and consultancy in sustainability and ESG for asset owners and financial institutions, as well as our positions as advisors and WG chairpersons for financial-related initiatives such as the PRI and PFA21 (the 21st Century Principles of Financial Conduct). Through this, we aim to share an understanding among executives and employees of why sustainability and ESG compliance are necessary.

Examples of Our Consulting Services

Training Sessions for Executives and Employees

We organize and deliver training sessions on sustainability and ESG for executives and employees of asset owners and financial institutions. We can also offer specialized training on themes such as TCFD, PCAF, and sustainable finance/impact investing, tailored to the specific requests of our clients.

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