Sustainability Management
JHR’s Sustainability Approach
Sustainability Policy
●Monitoring and improvement of environmental performance in our portfolio
We promote monitoring environmental performance such as energy consumption, etc. in our portfolio. Also, we share our goals with hotel lessees and operators, and strive to continuously improve environmental performance through optimizing operations and management as well as through facility renovation, etc. Furthermore, we seek assessment from third-party institutions where appropriate.
We take environmental risks into consideration to make investment decisions and to monitor operations of our portfolio.
●Promotion of comfortable, healthy, secure and safe hotels
We care safety, health and barrier-free access etc. of our hotels and promote initiatives to have stronger resilience against natural disaster, etc.
We take safety, health and well-being factors into consideration upon making investment decisions and monitoring operations of hotels in our portfolio.
●Promotion of ESG in value chains
We ask our hotels to understand and to cooperate on sustainability initiatives. At the same time, we promote procurement of products and services with environmental and social considerations.
●Consideration for and contribution to local communities
We strive to contribute to the sustainable development of local community through cooperation with hotel lessees and operators as well as communication and collaboration with local residents and local governments in surrounding communities where hotels are located.
●Initiatives for our officers and employees
We establish work environment that allows diverse ways of working with work-life balance into consideration. We also consistently provide opportunities of professional education and training, with the aim to improve abilities and skills of our employees and raise awareness on sustainability.
●Compliance as corporate citizens
We comply with related laws and regulations as well as social norms, etc. and promote ethical and sincere business activities. Additionally, we strive to reduce governance risks through respecting fundamental human rights at our business and through establishing a proper compliance system.
●Improvement of transparency and engagement with our stakeholders
We disclose financial information as well as ESG related information in a timely and appropriate manner. We will sincerely listen to voices and opinions from our stakeholders through interactive communication, and utilize them to improve our initiatives.
Sustainability Promotion System
In order to carry out initiatives based on the Sustainability Policy in an ongoing, organized manner, JHRA has established ESG Promotion Committee and developed the system shown below.
ESG Promotion Committee consist of management members and officers and employees chosen from various groups involved in promoting ESG, with the President & CEO acting as the chief executive and the Board Director & Head of Finance and Planning Division acting as the operating officer.
System Overview
ESG Promotion Committee | Decision- making and execution based on JHRA's approving authorities |
Reporting |
JHR Board of Directors |
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Contents
Frequency
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Members
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ESG Team Meetings | Sharing |
All officers and employees |
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Contents
Frequency
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Members
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Annual Schedule
Jan.-Mar. | Apr.-Jun. | Jul.-Sep. | Oct.-Dec. | |
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Measures | Implementation |
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ESG Promotion Committee | Check Progress | Check Progress | Check Progress | Evaluating implementation/ Setting targets for next year |
Frequency of Meetings and Trainings
FY2020 | FY2021 | FY2022 | FY2023 | |
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ESG Promotion Committee | 2 | 4 | 4 | 2 |
Trainings for officers and employees | 1 | 3 | 3 | 1 |
ESG Assessment by Third-party Institutions
Acquisition of GRESB Real Estate Assessment
The GRESB is an annual benchmarking program to evaluate Environment, Social and Governance (ESG) considerations of property companies and real estate funds, established in 2009 primarily by major European pension fund groups which took the lead in Principles for Responsible Investment (PRI). The GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives for sustainability of property companies, REITs and real estate funds, not of individual properties.
JHR participated in GRESB Real Estate Assessment from 2018 and has acquired "Green Star" for six consecutive years.
JHR was also selected as "Sector Leader" of Asian Hotel Sector for four consecutive years since 2020 as a participant with the highest result.
Acquisition of SMBC Environmental Assessment
"SMBC Environmental Assessment Loan" is a loan which SMBC set condition of loan based on assessment on status of environmental considerations by the corporation based on environmental assessment standards developed independently by SMBC and the Japan Research Institute, Limited.
JHR has received an "A" grade under the assessment due to initiatives for environmental considerations. This grade is obtained in recognition of our implementation of excellent initiatives for environmental considerations in asset management.
In particular, the following factors are highly rated in the assessment.
- JHR and JHRA have formulated a Sustainability Policy which clearly states their position of considering the environment and stakeholders such as local communities in their asset management.
- As well as conversion to the LEDs in lightning fixtures and introduction of water-saving devices in our major hotels, JHR promotes initiatives to reduce environmental impact alongside with lessees, including adding the Green Lease clause in the fixed term lease agreements with the HMJ Group hotels, the major hotel group of JHR.
- JHR actively promotes to acquire third-party certifications such as BELS (Building-Housing Energy-efficiency Labeling System) to confirm credibility and objectivity of initiatives for reduction of environmental impact in properties owned by JHR.
Timeline of Achievements
- 2017
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- December Establishment of Sustainability Policy
- 2018
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- Hotel Nikko Alivila
- Mercure Okinawa Naha
- February Two properties—Hotel Nikko Alivila and Mercure Okinawa Naha—became the first J-REIT-owned hotels(*1) to acquire BELS(*2) evaluation
- March Received an "A" rating indicating excellent environmentally friendly management, in the SMBC Environmental Assessment Loan(*3)
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September
Participated in GRESB Real Estate Assessment for the first time
Acquired "4-star" in GRESB rating
- 2019
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- Oriental Hotel
Fukuoka Hakata
Station - Okinawa Marriott
Resort & Spa(*4)
- July Issued Hotel Green Bonds (nickname) and used the procured funds to carry out construction works to save energy at the hotels shown to the right
- September Acquired "3-star" in GRESB rating
- 2020
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- Hilton Tokyo Odaiba
- April The Hilton Tokyo Odaiba became the first existing hotel to acquire a CASBEE(*5) "B+ (good)" building certification
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November
Acquired "4-star" in GRESB rating
Selected as "Sector Leader" of Asian Hotel Sector
- 2021
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- Oriental Hotel
Fukuoka Hakata Station
- June As a result of construction works to save energy which carried out by using procured funds through the issuing of green bonds, the Oriental Hotel Fukuoka Hakata Station acquired CASBEE "B+ (good)" building certification
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October
Acquired "4-star" in GRESB rating
Selected as "Sector Leader" of Asian Hotel Sector - November JHRA stated its expression of support for the TCFD(*6) recommendations
- December Identified JHR's materialities (key issues)
- 2022
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- August Released Initiatives for four disclosure themes recommended by TCFD
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October
Acquired "4-star" in GRESB rating
Selected as "Sector Leader" of Asian Hotel Sector
- 2023
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February
Formulated GHG reduction target(*7)
(30% reduction by 2050 compared to FY2017(*8)) - March Released the ESG report(*9)
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October
Acquired "4-star" in GRESB rating
Selected as "Sector Leader" of Asian Hotel Sector
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February
Formulated GHG reduction target(*7)
- 2024
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- UAN kanazawa
- January Formulated the Green Finance Framework: Overall Evaluation of Green 1 (F)
- February UAN kanazawa acquired BELS evaluation
- March Borrowed Green Loans under the Green Finance Framework
(*1) | Based on research by JHRA based on public information. |
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(*2) | BELS (Building-Housing Energy-Efficiency Labeling System) is a display system of energy conservation performance of a building set by Ministry of Land, Infrastructure, Transport and Tourism. |
(*3) | "SMBC Environmental Assessment Loan" is a loan which SMBC set condition of loan based on assessment on status of environmental considerations by the corporation based on environmental assessment standards developed independently by SMBC and the Japan Research Institute, Limited. |
(*4) | Name of properties is as of the date when the construction works were implemented. |
(*5) | CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a method for evaluating and rating the environmental performance of buildings. It is a system that comprehensively evaluates the quality of a building, including environmental considerations such as energy conservation, use of materials and equipment with low environmental impact, as well as indoor comfort and landscaping. |
(*6) | TCFD is an abbreviation for Task Force on Climate-related Financial Disclosures. |
(*7) | Properties owned by JHR are managed by hotel lessees, etc. GHG emissions of JHR fall under Scope 3, Category 13, Leased Assets (Downstream). |
(*8) | The GHG emissions (GHG emissions intensity) for FY2017 (Baseline fiscal year, April 2017 to March 2018) is 0.135 (t-CO2/㎡). |
(*9) | JHR published its first ESG report in March 2023 and plans to release subsequent reports annually every March. |