Environment Initiatives

Climate Change

CO2 (Climate Change)

Policy and Approach

Greenhouse gas emissions have been increasing steadily and it is believed that global warming will affect long-term changes to the climate and in fact is already causing various types of abnormal weather.

Working to reduce greenhouse gas emissions and engaging in other measures against global warming will contribute to easing the impact on the climate. Moreover, providing real estate properties with excellent functionality in terms of addressing these challenges is likely to engender more positive opinion and stronger support from tenants and this will lead to the enhanced competitiveness of the portfolio.

MHR and MIM will aim to match compact cities compounded with multifaceted urban functions together with the various high energy-efficient systems to realize cities with excellent environmental efficiency.

Through comprehensive and high-quality management of these urban areas, we will continue our efforts to reduce carbon emissions and engage in initiatives to counter global warming and climate change.

Participation in Japan Climate Initiative

Mori Building Investment Management Co., Ltd. (MIM), which is MHR's asset management company, joined the Japan Climate Initiative (JCI) in October 2020, supporting its founding declaration. As a member of JCI, MIM aims to realize the decarbonized society envisioned by the Paris Agreement by taking in the experiences of companies, local governments, and others who have implemented climate change initiatives with a pioneering spirit and putting them into practice.

Supporting the TCFD Recommendations

MIM announced in May 2020 its support for the recommendations issued in June 2017 by TCFD (The Financial Stability Board’s Task Force on Climate-related Financial Disclosures) , which was established by The Financial Stability Board (FSB).
MIM will press ahead with risk management and initiatives for climate change based on the recommendations and carry out information disclosure.

Reduction Greenhouse Gas Emissions

Objective and Performance of Reduction Greenhouse Gas Emissions

Transitions of Carbon Dioxide Emission and Intensity

Figures, with the exception of some, are verified and validated by an independent third party. Scope 1 is entirely CO2.
[Boundary] Offices of MHR and MIM and properties owned by MHR (Cover rate: See the table below)

* Carbon dioxide emissions are calculated based on the "Manual for Calculating and Reporting Greenhouse Gas Emissions" by the Ministry of the Environment and the Ministry of Economy,Trade and Industry.
  Also, intensity is calculated by dividing the carbon dioxide emissions by the calculated total floor area.   
Transitions of Energy Usage and Intensity

* The energy usage of city gas is calculated by multiplying the amount of city gas used by the unit calorific value specified in the "Manual for Calculating and Reporting Greenhouse Gas Emissions" by the Ministry of the Environment and the Ministry of Economy,Trade and Industry.
  Also, intensity is calculated by dividing the energy usage by the calculated total floor area.   

Promotion and Supervisory System

As to initiatives concerning climate change, the Sustainability Committee established in MIM plays a central role in conducting risk management, drawing up policies and programs, monitoring progress and such.

Hideyuki Isobe, the Chairperson of the Committee and President & CEO of MIM, presides over all the activities as the person with final authority and responsibility.

Furthermore, the Boards of Directors of MHR and MIM periodically receive reports on risk management and progress status of programs concerning climate change from the Sustainability Committee, and together they supervise all risks by reviewing the effects of risk management processes and giving directions for new actions as necessary.

(Matters reported at the Boards of Directors)
Progress status of reduction of CO2 and risk management was reported at the 3rd Board of Directors held on July 2020, and actions to be taken going forward were discussed.

Climate Change Risk Management

MHR manages risks related to climate change independent of other risk management processes of the entire company.
Upon announcing its support for TCFD in May 2020, MHR reidentified risks and opportunities posed by the impacts of climate change.
A project team headed by the President & CEO of MIM was established, and under this leadership, the team conducted analyses from a broad and long-term perspective that integrated the views of the entire company.
Going forward, existing initiatives will be further strengthened, and the Sustainability Committee will develop policies and programs to address the identified risks and monitor progress.

Climate-Related Risks and Opportunities

MHR believes that the impact of physical risks on its busines is limited because its buildings have always been highly disaster resistant; because MHR has invested in properties in areas that have low flood risk, etc., and because it has installed sophisticated energy conservation equipment. On the other hand, MHR anticipates a certain level of impact from tighter regulations on energy conservation, meeting tenant demands for energy-efficient properties, and if the performance of MHR’s properties in energy conservation is relatively poor. Furthermore, fund-raising costs are expected to be impacted if the number of ESG investors increase, and performance in energy conservation at MHR’s properties will become more important.

Promotion of Energy Saving

Introduction of The Energy Saving Technologies
<High-efficiency Air-conditioning System LOBAS>

LOBAS (Low-carbon Building and Area Sustainability) is an air conditioning system that optimally combines multiple energy-conserving technologies, including the use of medium-temperature chilled water and low-temperature warm water, and heat collection using heat pumps (turbo chillers).
Based on an electrical system, it is expected to conserve energy by approximately 40% compared to conventional methods.

    1.   Air-conditioning system using medium-temperature chilled and low-temperature warm water
 Air-conditioning method separating sensible heat and latent heat treatment using 13°C medium-temperature
 chilled water and 37°C low-temperature warm water.

2.   Heat recovery heat source system 
 Use of waste heat from the turbo refrigerator cooling water, and adoption of heat recovery turbo chillers.
3.  Large-scale thermal storage tank system
 Combination of a large-depth (approximately 30m) cylindrical vertical thermal storage tank and a flat connected
 multi-level dipping weir heat storage tank (6,700m³ in total)
<Building Energy Management System>

Building Energy Management System (BEMS) is a system that enables energy-conserving operations by assessing energy usage conditions and indoor environments in buildings.
Energy usage conditions are checked in real time through centralized management. Accumulating and analyzing data also enables the elimination of excess and wasteful use of energy.
At Toranomon Hills Mori Tower, MB have implemented Smart-BEMS (S-BEMS) which, in addition to existing functions, has functions for clarifying criteria for determining normal and abnormal measured values, further increasing the efficiency of data analysis.

<Switching Grid Lighting to LED>

At buildings adopting grid ceiling lighting fixtures, MHR has a method for leaving the lighting fixtures and changing only the light sources to LED, for the purpose of improving energy conservation performance, prolonging equipment life, and conserving resources.
This removes the need for ancillary work (restoration work and removal of sprinkler heads, air outlets, emergency lighting, sensors etc.) when changing light sources, greatly simplifying construction and conserving resources.
MHR is also undertaking the switch to LEDs at Roppongi Hills Mori Tower, ARK Mori Building, and other buildings.

1. Existing fixtures
(fluorescent lights)
2. Lamps, ballasts etc.

3. Installation of LED units

4. Attach louver,
switch to LED
Building Management System to Measure Energy Efficiency

MHR has introduced a system that measures and manages energy efficiency by measuring and monitoring energy usage at all office properties it owns.

Green Lease

Tenant’s energy consumption through the usage of air conditioning, lighting, etc. has a considerable impact on an office building’s environmental performance.
Close collaboration with our tenants is a key factor in achieving optimal energy efficiency.

MHR holds an environmental countermeasure council once or twice a year depending on the office building.
The council generates a report on the efforts to improve sustainability and raises awareness for power saving methods.

As a reference for tenants to draw specific measures for conservation of energy, MHR has provided, at all office properties it owns, “WEB cloud services” as a tool to make tenants’ energy usage visible.
(Properties with the service as a percentage of all owned properties: 98% based on acquisition price)

In addition to these efforts, MHR is further deepening relationships with tenants by introducing “green leases” which serve to align financial incentives and secure commitments from both parties.
MHR is gradually expanding this approach since the introduction of the first green lease in ARK Hills South Tower. 

Collaboration and Commercial Agreement with Suppliers

In the real estate leasing business, the PM company is a stakeholder as well as the most important supplier to MIM.
MIM believes it is essential to share sustainability values with the PM company to promote sustainable business practices.

In order to share our values with the PM company, MIM reviews the systems, policies and other activities related to sustainability twice a year by written notice.
In addition, MIM evaluates the PM company with an external evaluation agency once a year to share and raise awareness through feedback interviews and compliance exchange meetings with the PM company.

In addition to these efforts, with respect to the environmental performance of assets under management, various measure such as additional environmental countermeasure construction work are examined and monitored based on reports from the PM company.
External relative environmental performance evaluation is also carried out through the GRESB real estate evaluation and other review processes.

MIM outsources global warming countermeasures for office properties to the PM company for a fee, and makes full use of the environment-related know-how cultivated by the PM company.
MIM works with the PM company to maintain and improve the environmental performance of MHR’s properties.

Transition of Green Power Generation

As part of measures against global warming, solar power generation systems have been installed at Roppongi Hills and Toranomon Hills for effective use of unused and natural energy.
The power generated is used in lighting, etc. within the facilities.

Greening promotion

Promotion of Greenery and Heat Island Measures

As part of initiatives to adapt to climate change, MHR has promoted greenery.
MHR aims to increase the “green ratio” by proactively undertaking the landscaping of open spaces and rooftops.

Green Ratio of Major Development Projects (2019)
Name Completion Green ratio
ARK Hills 1986 43.3%
Atago Green Hills 2001 51.9%
Roppongi Hills 2003 30.1%
Toranomon Hills 2014 30.4%
(Reference) All of Minato-ku 21.8%

The roof top of Suntory Hall at ARK Hills

Mohri Garden at Roppongi Hills

Heat Island Measures

Spaces where trees have been planted have various elements that provide coolness, such as the water-retention effect of the ground supporting the trees, transpiration of the leaves and shading from direct sunlight.
It is said that these spaces help to relieve the heat island phenomenon.

Thermal images from aerial photographs clearly show this effect as MHR-owned properties such as Roppongi Hills, ARK Hills and Atago Green Hills have more “blue areas” that represent a lower surface temperature than their surroundings due to having many plants on site. (Photo By Skymap Co., Ltd. )