Green Finance
Basic Policy
JHR manages its assets in consideration of "Environmental, Social and Governance (ESG)" and, as part of its efforts, aims to achieve a sustainable environment and society through the implementation of green finance.
Green Finance Framework
JHR formulated the Green Finance Framework in accordance with the Green Bond Principles, Green Loan Principles, Green Bond Guidelines, and Green Loan Guidelines.
Established in January 2024
Revised in August 2024
Use in Procured Funds
JHR will allocate the funds procured through the Green Finance to the following three purposes that meet the Eligibility Criteria below: (1) for the acquisition of green buildings or refinancing of the funds used for the acquisition, (2) for renovation work, and (3) for the acquisition or installation of renewable energy generation equipment.
●Eligibility criteria
- Green building
Properties that have obtained or renewed certification from any of the following third-party certification organizations or properties that intend to obtain or renew such certification:
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: | 3 stars or higher | ||
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: | B+ or higher | ||
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: | B+ or higher (provided that the buildings were completed within 3 years from the construction completion date.） | ||
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: | 3 stars or higher* | ||
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: | Level 4 or higher* | ||
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: | Silver rank or higher (For LEED BD+C, v4 and later) | ||
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: | Very good or better (v6 or later) | ||
- Renovation work
Renovation work that meets any of the following:
- Renovation work that has the effect of reducing any of the following: CO2 emissions, energy consumption, or water consumption by 30% in real estate managed by JHR
- Renovation work intended to improve one or more stars or ranks of certification by third-party certification organizations as defined in the Eligibility Criteria 1
- Renewable energy
Acquisition or installation of the following renewable energy power generation equipment.
- Solar power generation
- Onshore wind power generation (limited to equipment with output of less than 20kW)
- Biomass power generation (limited to equipment where fuel is sourced from its location or adjacent prefectures)
Process for Project Evaluation and Selection
JHRA's Finance Group and ESG Team will select project candidates for which the procured funds will be used, and decisions will be made by the Investment and Operation Committee, the Board of Directors and JHR’s Board of Directors.
Management of Procured Funds
JHR will promptly allocate the total procured funds to projects that meet the Eligibility Criteria. JHR will set the maximum amount of the Green Finance as the total of the following funds (hereinafter called "Eligible Green Debt Amount") and will manage the balance of the Green Finance so that it does not exceed the Eligible Green Debt Amount:
- The amount calculated by multiplying "the total acquisition price of green buildings owned by JHR that meet the Eligibility Criteria (1) (a)" by "the interest-bearing debt ratio to the total assets (b)" at the end of the fiscal period that can be calculated at the time of confirmation
- The expenditures required for renovation work that meets the Eligibility Criteria (2)
- Funds for the acquisition and installation of renewable energy power generation equipment that meets the Eligibility Criteria (3)
(as of the end of December 2025)
| Ⅰ | JPY124.8Bn (= (a) JPY267.2Bn x (b) 46.7%) |
|---|---|
| Ⅱ | － |
| Ⅲ | － |
| Eligible Green Debt Amount (Ⅰ＋Ⅱ＋Ⅲ) |
JPY124.8Bn |
Reporting
●Fund allocation status reporting (as of the end of June 2026)
The fund allocation status of JHR related to the Green Finance is as follows.
| Green Finance Balance | JPY 40.05Bn |
|---|---|
| Unallocated Green Finance | － |
＜Green Loan＞
| Loan Name | Loan Amount | Unallocated Amount | Borrowing Date | Principal Repayment Date | Collateral |
|---|---|---|---|---|---|
| Term Loan 101 | JPY3.3Bn | － | March 29, 2024 | March 29, 2030 | Unsecured/ Unguaranteed |
| Term Loan 111 | JPY1.4Bn | － | September 30, 2024 | September 30, 2032 | Unsecured/ Unguaranteed |
| Term Loan 121 | JPY4.4Bn | － | March 31, 2025 | March 31, 2034 | Unsecured/ Unguaranteed |
| Term Loan 122 | JPY7.0Bn | － | September 30, 2025 | September 29, 2028 | Unsecured/ Unguaranteed |
| Term Loan 124 | JPY7.0Bn | － | September 30, 2025 | September 29, 2034 | Unsecured/ Unguaranteed |
| Term Loan 125 | JPY1.0Bn | － | November 20, 2025 | September 30, 2031 | Unsecured/ Unguaranteed |
| Term Loan 132 | JPY10.9Bn | － | March 31, 2026 | March 31, 2033 | Unsecured/ Unguaranteed |
| Term Loan 133 | JPY3.25Bn | － | June 30, 2026 | March 31, 2032 | Unsecured/ Unguaranteed |
＜Green Bond＞
| Name | Balance | Unallocated Amount | Issue Date | Redemption | Collateral |
|---|---|---|---|---|---|
| Fourteenth unsecured investment corporation bonds of JHR (Pari passu covenants between investment corporation bonds are attached.) (Green Bond) |
JPY1.8Bn | － | September 11, 2025 | September 10, 2032 | Unsecured |
●Impact reporting
JHR will disclose the following information annually as long as the green finance balance remains:
- Reporting on green buildings
- Name and number of properties, total floor area, certification type and certification rank
- CO2 emissions (t-CO2), electricity consumption (MWh), and water consumption (㎥) of all subject properties
- Reporting on renovation work
Not applicable
- Reporting on renewable energy
Not applicable
Evaluation by External Organization
JHR has received the following evaluation from Japan Credit Rating Agency, Ltd. (JCR) regarding the eligibility of its Green Finance Framework.
| Evaluation Agency | Evaluation Subject | Evaluation | ||
|---|---|---|---|---|
| JCR | Green Finance Framework | Overall Evaluation | Green 1 (F) | |
| Greenness Evaluation (Use of Proceeds) |
g1 (F) | |||
| Management, Operation and Transparent Evaluation | m1 (F) | |||
| * | For details, please refer to JCR's news release and website. Website of JCR: https://www.jcr.co.jp/en/greenfinance/ |
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