SFDR Documents
(Sustainable Finance Disclosure Regulation)
- SFDR Pre-contractual Disclosure
[980KB] - STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONS ON SUSTAINABILITY FACTORS[248KB]
SUSTAINABILITY-RELATED DISCLOSURE
Product name: Nippon Building Fund Inc.
Legal entity identifier: 52990053R8NL2MB32172
Nippon Building Fund Inc. (“NBF”) promotes environmental or social characteristics, but does not have as its objective a sustainable investment within the meaning of Article 9(1) of Regulation (EU) 2019/2088 ("SFDR"). NBF has no employees in accordance with the prohibition on having employees under the Act on Investment Trusts and Investment Corporations of Japan and relies on Nippon Building Fund Management Ltd. (the “Asset Manager”), to manage and operate the properties in NBF’s portfolio. NBF and the Asset Manager are hereinafter referred to collectively as “we,” “us” or “our” unless noted otherwise. References to “fiscal year” or “FY” are to the 12 months began or beginning April 1 of the year specified in line with the fiscal year of the Asset Manager, unless noted otherwise.
Summary
No sustainable investment objective |
The financial products offered by NBF promote environmental or social characteristics, but NBF does not have as its objective sustainable investment. |
|---|---|
Environmental or social characteristics of the financial product |
The Asset Manager established an ESG policy in November 2017, in recognition of the importance of considering ESG (defined below) factors in real estate investment and management. The ESG policy stipulates the implementation of environment-friendly initiatives as well as initiatives targeting stakeholders including investors, tenants, employees, business partners and local communities in our daily asset management operations, based on policies established by Mitsui Fudosan Co., Ltd, NBF’s main sponsor. Under the ESG policy, we undertake efforts to reduce our environmental impact, improve safety, security and comfort for tenants and engage in a diverse range of collaboration and cooperation efforts with various stakeholders. We implement various environmental initiatives at NBF’s properties, as described below. |
Investment strategy |
With our strategy of aiming to achieve consistent growth of assets and stable income, we have developed an urban portfolio focused in central Tokyo and surrounding urban areas where office leasing demand is relatively strong. In order to realize sustainability in our asset management while maximizing NBF’s portfolio value, we consider ESG factors in our investment and asset management processes. In particular, we have established a green finance framework where proceeds are used only to acquire Eligible Green Assets or repay loans or bonds financed for such acquisitions. |
Proportion of investments |
NBF offers financial products which promote environmental or social characteristics, but does not have sustainable investments as its objective. As of June 30, 2024, 98.8% of NBF’s properties were Eligible Green Assets, and 1.2% of NBF’s properties were not Eligible Green Assets based on gross floor area. |
Monitoring of environmental or social characteristics |
In order to measure the attainment of the E/S characteristics we promote, we use the indicators such as (i) acquiring external certifications and assessments for sustainability performance such as GRESB, (ii) acquiring environmental certification, (iii) tracking and disclosing data related to climate change, (iv) conducting customer satisfaction surveys and (v) conducting employee satisfaction survey. Each is further described below. |
Methodologies |
The ESG Promotion Committee, which includes the President and CEO, Director, CIO and CFO, Director, and COO, Compliance Officer, and General Manager of each department of the Asset Manager as its final decision maker, has been established to supervise and promote initiatives on climate change as well as other environmental and social initiatives based on the Asset Manager’s Policy for ESG Initiatives. |
Data sources and processing |
As further described below, the Asset Manager obtains certain ESG-related data from NBF Office Management Co., Ltd., third-party consulting firms and building management companies. In addition, depending on the type of data, the Asset Manager ensures data accuracy and quality through a third-party organization’s external review. |
Limitations to methodologies and data |
As further described below, the primary limitation to methodologies and data is the necessity of reliance on tenants and building management companies for raw data at the property level. |
Due diligence |
When investing in properties using proceeds from green financing, we do not consider properties that do not meet the criteria under our green finance framework. We also investigate use of hazardous substances including asbestos or countermeasures to such substances and soil contamination when investing in properties. |
Engagement policies |
We investigate use of hazardous substances including asbestos or countermeasures to such substances and soil contamination when investing in properties. |
Designated reference benchmark |
NBF has no benchmark index designated as a reference benchmark to meet the environmental or social characteristics promoted by NBF. |
No sustainable investment objective
The financial products offered by NBF promote environmental or social characteristics, but NBF does not have as its objective sustainable investment.
Environmental or social characteristics of the financial product
The Asset Manager established an ESG policy in November 2017, in recognition of the importance of considering environmental, social and governance (“ESG”) factors in real estate investment and management. The ESG policy stipulates the implementation of environment-friendly initiatives as well as initiatives targeting stakeholders including investors, tenants, employees, business partners and local communities in our daily asset management operations, based on policies established by Mitsui Fudosan Co., Ltd, NBF’s main sponsor. Under the ESG policy, we undertake efforts to reduce our environmental impact, improve safety, security and comfort for tenants and engage in a diverse range of collaboration and cooperation efforts with various stakeholders.
We implement various environmental initiatives at NBF’s properties including the following.
- Reducing greenhouse gas emissions and energy consumption from NBF’s properties. We aim to reduce energy consumption by installing energy saving equipment such as LED lighting at NBF’s properties.
- Reducing water use. Some of NBF’s office buildings are equipped with facilities for reusing rainwater and greywater to reduce the consumption of tap water.
- Including “Green Lease” provisions in our agreements. We have executed lease agreements, which include clauses requiring our tenants to collaborate with us in implementing various measures and to promote environmental consideration, including installation of LED lighting at NBF’s properties with the consent of the tenants.
- Collaboration with the Asset Manager and third party. We utilize the expertise of NBF Office Management Co., Ltd. (“NBFOM”) to maintain and increase the competitiveness, occupancy rates and rent at NBF’s properties while effectively advancing environmental initiatives. In meetings with NBFOM that are held once every two months, we share and discuss initiatives and other information concerning the various energy saving and environmental issues. We utilize the support of Nikken Sekkei Construction Management, Inc. as an expert consultant for suggestions on energy management and measures that contribute to increasing the environmental performance of NBF’s portfolio.
We implement various social initiatives at NBF’s properties including the following.
- Providing support to tenants and their employees. To keep good indoor air quality and sanitary conditions and enhance users’ health and productivity, we monitor the indoor environment based on a satisfaction survey of tenants (excluding master lessees) and aim to make NBF’s properties comfortable every day. Based on the survey, we expanded kitchenettes and installed built-in counters for garbage bins, expanded hot water supply rooms with hot water supply rooms with occupancy indicators, installed air purification equipment and sanitizer stations to improve the convenience and cleanliness of Shinjuku Mitsui Bldg. No.2 in 2020.
- Supporting local communities and social development. For the local communities, we hold initiatives such as lunchtime concerts, seasonal events, water sprinkling programs for cooling down and local cleanup programs. In office buildings that have residential portions required under local ordinances, we have performed major renovations on the residential portions to ensure that the residents have adequate space and to improve their living environment. We also manage buildings with consideration given to historical and cultural heritage. For example, Toranomon Kotohira Tower was developed in a manner that protected Kotohira-Gu shrine, a historic property for the area, and is designed to be a mixed-use building with space made available for the shrine office. We also contribute to local communities by providing space for bicycle sharing services at NBF’s properties. In the fiscal period ended on December 31, 2022, the Asset Manager’s employees and their families participated in the “Bridge Washing” at the famous Nihonbashi Bridge.
- Disaster countermeasures. In support of the Minato-ku Regional Disaster Prevention Plan, we provide free-of-charge some of our leasable spaces to store emergency materials at Roppongi T-CUBE, Celestine Shiba Mitsui Bldg. and Shiba NBF Tower.
- Promoting universal design. We introduced universal design at some of NBF’s properties such as widening of ramps and installation of handrails, improvement of interior signage and automation of service entrance doors (for wheelchair accessibility and COVID-19 safety). As part of our capital investment decision-making process, we always review the status of the building’s compliance with the Barrier-Free Law of Japan, accessibility for people with disabilities and accessibility to public transportation around the property. These matters are also periodically reviewed by obtaining engineering reports and other relevant documents following acquisition. Through these inclusive efforts, we aim to manage properties that are comfortable for all office users.
- Respecting human rights. We support the Universal Declaration of Human Rights in the International Bill of Human Rights, international labor standards such as the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights.
- Providing support for employees. The Asset Manager promotes the acquisition of qualifications by its employees such as ARES Certified Master (a qualification obtainable after participating in an educational program that teaches practical expert know-how in real estate and finance). The Asset Manager has also introduced various training programs, including on compliance, and will bear the costs of its employees attending seminars, lectures and courses that lead to self-improvement.
Investment strategy
With our strategy of aiming to achieve consistent growth of assets and stable income, we have developed an urban portfolio focused in central Tokyo and surrounding urban areas where office leasing demand is relatively strong. In order to realize sustainability in our asset management while maximizing NBF’s portfolio value, we consider ESG factors in our investment and asset management processes. In particular, we have established a green finance framework where proceeds are used only to acquire Eligible Green Assets or repay loans or bonds financed for such acquisitions.
- Selection of projects that qualify for green financing. When determining whether to acquire or invest in properties by green financing, we rely on the DBJ and CASBEE certifications. We use green financing to acquire properties that receive (i) three stars or higher out of DBJ’s five-star ranking system, (ii) B+ Rank or higher out of the CASBEE ranking system or (iii) three stars or higher out of BELS’s five-star ranking system.
- Second-party opinion. We have obtained (most recently in February 2021) a second-party opinion from Sustainalytics, a third-party ESG evaluation agency, that our green finance framework is “credible and impactful and aligns with the four core components of the Green Bond Principles 2018 (GBP) and the Green Loan Principles 2020 (GLP)”.
We ensure our investment strategy is implemented on a continuous basis by establishing and maintaining green eligible criteria, and ensuring that any proceeds from our green financing will be used exclusively toward properties that meet such criteria.
We do not invest in investee companies and have therefore opted to provide information on the governance policies adopted by us and the Asset Manager.
We, along with the Asset Manager, have introduced the following measures to assess and enhance our governance systems:
- Adoption of a decision-making process in conflict-of-interest transactions involving independent outside experts. We have adopted a governance structure stricter than what is legally required. The Asset Manager reviews and examines conflict-of-interest transactions through its Compliance Committee, whose members include outside expert(s).
- Corporate Governance. The Asset Manager believes that compliance refers not only to legal compliance but also to compliance with the Asset Manager’s Code of Ethics and Compliance Rules, which include concrete guidelines on how to take ethical actions. In addition, its Compliance Officer promotes company-wide compliance activities by planning and offering a compliance program and training and awareness raising activities for all officers and employees.
Proportion of investments
NBF offers financial products which promote environmental or social characteristics, but does not have sustainable investments as its objective. As of June 30, 2024, 98.8% of NBF’s properties were Eligible Green Assets, and 1.2% of NBF’s properties were not Eligible Green Assets based on gross floor area.
Monitoring of environmental or social characteristics
We use the following indicators to measure the attainment of the environmental or social characteristics we promote:
- GRESB Real Estate Assessment. The GRESB Assessment, established in 2009 primarily by major European pension fund groups, is an annual benchmark survey for evaluating ESG considerations in the real estate sector. It evaluates sustainability efforts by real estate companies and REITs. NBF received a “Green Star” in 2023, for the ninth consecutive year. NBF also received in 2023 a “4-Star”, the second highest rating based on its overall GRESB score.
- Environmental certification of properties: To track the environmental performance of NBF’s properties, we rely on certifications issued by third-party organizations, such as the Development Bank of Japan’s (“DBJ”) Green Building Certification, Comprehensive Assessment System for Built Environment Efficiency (“CASBEE”) certification, Building Energy-efficiency Labeling System (“BELS”) certification and other equivalent certifications. We call NBF’s property that receives any such certifications an “Eligible Green Asset”. With respect to DBJ certifications, we consider a property to have sufficient environmental certification if it received 3 stars or higher out of DBJ’s five-star ranking system. With respect to CASBEE, we consider a property to have sufficient environmental certification if it received B+ Rank or higher out of the CASBEE ranking system featuring Rank S (excellent), Rank A (very good), Rank B+ (good), Rank B- (slightly inferior) and Rank C (inferior). With respect to BELS, we consider a property to have sufficient environmental certification if it received a three stars or higher out of BELS’ five-star ranking system. As of June 30, 2024, 98.8% of NBF’s properties were Eligible Green Assets based on gross floor area.
- Climate change initiatives: The Asset Manager has expressed support for the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board and clarified stronger efforts to address climate-related issues. The Asset Manager aims to assess the financial impact of future climate change risks and opportunities and assertively disclose activities. The Asset Manager also has set a target of reducing energy-based CO2 emissions by 46% or more from that in 2013 by 2030 and intends to promote initiatives addressing climate-related risks and opportunities.
- Social initiatives – tenants: We conduct customer satisfaction surveys targeting the tenants excluding master lessees every year in order to understand the level of satisfaction and needs of tenants, and the PDCA cycle is applied to promptly address any issues identified in the survey. For example, as a response to the result of the surveys, we changed the layout of the common space at NBF Toyosu Canal Front to enhance user-friendliness.
- Social initiatives – employees: The Asset Manager provides all of its employees with regular opportunities to consult with their superiors and directors. This program provides them with opportunity to discuss their careers, receive feedback on their performance and discuss requests to the company. The Asset Manager also conducts an employee satisfaction survey every year as part of its efforts to maintain excellent relations with its employees. The surveys allows the Asset Manager to see whether employees are satisfied about their assigned responsibilities and working environment and requests for company initiatives.
Methodologies
The ESG Promotion Committee, which includes the President and CEO, Director, CIO and CFO, Director, and COO, Compliance Officer, and General Manager of each department of the Asset Manager as its final decision maker, has been established to supervise and promote initiatives on climate change as well as other environmental and social initiatives based on the Asset Manager’s Policy for ESG Initiatives.
The Strategy Planning and ESG Promotion Department assesses ESG risks and opportunities and consults on KPIs and specific measures to reduce GHG emissions such as CO2 with the ESG Promotion Committee, which meets at least once every three months (held as often as necessary) and the final decision maker decides specific targets and measures.
The Strategy Planning and ESG Promotion Department reports on the progress of the decided targets and measures to the Committee at least once every three months. These targets and measures are shared with all officers and employees through briefings, email distribution, posting on the in-house portal, etc.
In addition, the Board of Directors of NBF and the Asset Manager also receive regular reports about once every six months from the ESG Promotion Committee on the progress of risk management and programs related to climate change, review the risk management process and direct new actions as necessary, thereby continually carrying out the monitoring of each initiative.
- GRESB Real Estate Assessment. GRESB is a portfolio-level assessment and is conducted by GRESB through annual submission of our responses and relevant data to GRESB’s questionnaires on ESG matters. The ESG & Business Promotion Department takes the lead in preparing our responses to GRESB questionnaires with the help of an external consulting firm. From around March, each department within the Asset Manager work together to compile relevant ESG data information and after checking with the consulting company and reporting to the ESG Promotion Committee of the Asset Manager, our responses to GRESB’s questionnaires will be submitted around June. The evaluation results are then received in October.
- Environmental certification of properties. Based on the annual ESG plan, the Real Estate Management Department of the Asset Manager, under the supervision of the ESG & Business Promotion Department, collects data in cooperation with NBF Office Management Co., Ltd., an office management services provider, and prepares response data for the certifying organizations. The ESG & Business Promotion Department of the Asset Manager compiles the prepared response data for each property and submits it to the certifying organizations with the cooperation of an external consulting firm. With regard to the acquisition of environmental certifications, reports are made at the ESG Promotion Committee of the Asset Manager, and decisions are made by the President of the Asset Manager.
- Climate change initiatives. The ESG & Business Promotion Department collects basic environmental data, such as electricity and gas consumption data, on a monthly basis from our office building management companies, and data checks and increase/decrease analyses are conducted in cooperation with consulting firms and NBF Office Management Co., Ltd. The amount of CO2 emissions are calculated by multiplying the amount of activity by the emission factor set by each energy supplier. Data collected and compiled by the ESG & Business Promotion Department is reported to the ESG Promotion Committee of the Asset Manager.
- Social initiatives – tenants. The Real Estate Management Department of the Asset Manager, together with NBF Office Management Co., Ltd., conducts an annual tenant satisfaction survey in order to obtain tenants' opinions, satisfaction levels, and needs. The survey is conducted on the office environment and convenience, general operation and management such as cleaning, crime prevention and disaster prevention, as well as the effectiveness of CS activities for each building and the needs of tenants, and is reflected in building management as appropriate. Questions related to ESG initiatives have been added since FY2022. The results of the tenant satisfaction survey are reported to the President, CIO, COO, and the General Manager of the ESG & Business Promotion Department.
- Social initiatives – employees. The Planning and General Affairs Department of the Asset Manager conducts an employee satisfaction survey through interviews annually. The results are fed back to management of the Asset Manager and the entire company, and the survey results are also used as reference in organizational revisions and personnel transfers.
Data sources and processing
We use the following data sources:
- GRESB Real Estate Assessment. GRESB provides assessment questionnaires and announces results of its assessment and rankings thereof annually. At the Asset Manager, each department work together to compile relevant ESG data information and after checking with the consulting firm, our responses to GRESB’s questionnaires will be submitted.
- Environmental certification of properties. The property-related data for obtaining the environmental certifications is collected by the Real Estate Management Department under the supervision of the ESG & Business Promotion Department through scoring sheets answered by the persons in charge of the subject properties. The data compiled by the Real Estate Management Department will be shared with the certifying organizations.
- Climate change initiatives. Basic environmental data, such as electricity and gas consumption, are collected in cooperation with consulting firms and NBF Office Management Co., Ltd. The contents of the basic environmental data are verified by a third-party organization.
- Social initiatives – tenants. The Real Estate Management Department of the Asset Manager, together with NBF Office Management Co., Ltd., conducts an annual tenant satisfaction survey. The survey results are collected and compiled by NBF Office Management Co., Ltd.
- Social initiatives – employees. The Planning and General Affairs Department of the Asset Manager conducts an employee satisfaction survey through interviews annually.
Limitations to methodologies and data
The primary limitation to methodologies and data is the necessity of reliance on tenants and building management companies for raw data at the property level. Like many other real estate investment corporations and asset managers, we rely on raw data provided by the tenants, and independent verification of accuracy of such raw data provided by the tenants presents challenges. In addition, data at the property level provided by the tenants is generally updated on an annual basis. Accordingly, property-specific data will therefore not always be fully up-to-date.
Data at the portfolio level is compiled internally at the Asset Management Company. To ensure the accuracy of compiled data at the portfolio level, we have engaged an independent third-party accounting firm which has provided an assurance report regarding the accuracy and quality of certain parts of the compiled annual data at the portfolio level in accordance with our own criteria and methodologies. However, the assurance report does not provide independent verification of the accuracy of raw data at the property level and the challenges associated with our reliance on the tenants for raw data at the property level remain.
Limitations to the methodologies and data are not expected to affect the attainment of the environmental or social characteristics promoted by NBF in any material way.
Due diligence
When investing in properties using proceeds from green financing, we do not consider properties that do not meet the criteria under our green finance framework. We also investigate use of hazardous substances including asbestos or countermeasures to such substances and soil contamination when investing in properties.
Engagement policies
We investigate use of hazardous substances including asbestos or countermeasures to such substances and soil contamination when investing in properties.
In order to realize sustainability in our asset management while maximizing NBF’s portfolio value, we consider ESG factors in our investment and asset management processes. In particular, we have established a green finance framework where proceeds are used only to acquire Eligible Green Assets or repay loans or bonds financed for such acquisitions.
Designated reference benchmark
NBF has no benchmark index designated as a reference benchmark to meet the environmental or social characteristics promoted by NBF.
REMUNERATION AND SUSTAINABILITY RISKS (SFDR ARTICLE 5 DISCLOSURE)
The Asset Manager has a remuneration policy in place which aims to support its strategy, values and long-term interests, including its interest in sustainability. The Asset Manager’s remuneration policy is consistent with the integration of sustainability risks as follows.
- Base remuneration comprises standard amounts based on position and rank. Performance-based remuneration is based on meeting certain pre-determined targets, where individual and company performance (including with respect to sustainability targets) is taken into consideration. Allowances are provided for transportation and certain other circumstances.
INTEGRATION OF SUSTAINABILITY RISKS IN THE INVESTMENT DECISIONS, AND THE IMPACT OF SUCH RISKS ON THE RETURNS OF NIPPON BUILDING FUND INC. (SFDR ARTICLE 6 DISCLOSURE)
The ESG Promotion Committee, which includes the President and CEO, Director, CIO and CFO, Director, and COO, Compliance Officer, and General Manager of each department of the Asset Manager as its final decision maker, has been established to supervise and promote initiatives on climate change as well as other environmental and social initiatives based on the Asset Manager’s policy for ESG initiatives.
In order to realize sustainability in our asset management and to maximize the value of NBF’s portfolio assets, we have emphasized taking into consideration ESG factors in our investment and asset management processes. The Asset Manager has established a green finance framework in accordance with the 2018 Green Bond Principles and the 2017 Green Bond Guidelines to conduct sustainable finance. Green financing under our green finance framework consists of green bonds where proceeds are used only to acquire Eligible Green Assets or refinance loans or bonds financed for such acquisition.
Under this organizational structure, we have instituted a number of initiatives, at both the portfolio level and the property level, to promote environmental or social characteristics. Such initiatives include climate change initiatives, water resources and waste management initiatives and tenant initiatives.
To address the sustainability risks including the risk of occurrence of damage to the asset value of low-performance buildings due to the impact of environmental performance on real estate prices against the backdrop of the tightening of regulations and change in tenant preference, we promote investment under our green finance framework and try to improve NBF’s portfolio environmental performance through property replacements. We believe that our ESG initiatives contribute to the competitive strengths of NBF’s portfolio and sustainable growth in returns.
While sustainability issues will severely impact our business activities, we believe that such issues may also become potential business opportunities to create new value for sustainable growth. Accordingly, we position our commitment to sustainability as a top priority in our management strategies. We also believe that integrating sustainability factors alongside traditional financial and operational metrics in our investment decision process helps us make a more holistic assessment of a property’s risks and opportunities and is commensurate with the pursuit of superior risk-adjusted returns.
The risk analysis was conducted based on scenarios of rising temperatures developed by international organizations such as the International Energy Agency (“IEA”) and the Intergovernmental Panel on Climate Change (“IPCC”) as information sources. The scenario overviews and main information sources referred to are as follows:
| Scenario | Scenario overview | Main references |
|---|---|---|
4℃ Scenario |
A scenario in which temperatures are assumed to rise by 4℃ compared with pre-industrial levels. |
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1.5℃ Scenario |
A scenario in which temperatures are assumed to rise by 1.5℃ compared with pre-industrial levels. |
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The following table presents the key climate-related risks that we consider may have a financial impact on NBF’s real estate investment management business and the initiatives that we have taken to address those risks, based on the recommendations of TCFD. More information can be found on the website: https://esg.nbf-m.com/en/environment/climate.html.
Type of |
Category |
Principal risks and opportunities |
Factors that may affect business and financial performance |
Financial impact (Millions of JPY) |
Risk management, countermeasures, initiatives |
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|---|---|---|---|---|---|---|---|---|
4℃ Scenario |
1.5℃ Scenario |
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Mid-term |
Long-term |
Mid-term |
Long-term |
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Transition Risks |
Policy and Legal |
Introduction of GHG emissions regulations |
Increase in costs due to responding to legal regulations |
Minor |
Minor |
Moderate |
Major |
|
Strengthening of energy conservation standards |
Increase in renovation costs to improve energy efficiency |
Minor |
Minor |
Major |
Major |
|
||
Increase in property acquisition prices due to scarcity of investment targets |
Minor |
Minor |
Major |
Major |
|
|||
Technology |
Dissemination of new technologies related to environmental performance |
Increase in renovation costs due to introduction of new technologies |
Minor |
Minor |
Moderate |
Minor |
|
|
Market |
Changes in environmental performance values in financing |
Increase in financing costs for properties with relatively low environmental performance |
Minor |
Minor |
Minor |
Minor |
|
|
Change in tenants' needs for environmental performance |
Decrease in rental income from properties with relatively low environmental performance |
Minor |
Minor |
Minor |
Minor |
|
||
Reputation |
Decrease in corporate (brand) value due to delayed response to climate change |
Decrease in rental income (due to decline in brand strength) |
||||||
Physical |
Acute |
Increase in the severity of extreme weather |
Increase in costs of countermeasures |
Minor |
Minor |
Moderate |
Moderate |
|
Decrease in operating revenue at the time of damage |
Moderate |
Moderate |
Moderate |
Moderate |
|
|||
Incurring recovery costs when damage occurs |
Major |
Major |
Moderate |
Moderate |
|
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Chronic |
Rising sea levels |
Increase in costs of countermeasures |
Moderate |
Major |
Minor |
Moderate |
|
|
Rising average temperatures |
Increase in costs due to increased air-conditioning load |
Moderate |
Moderate |
Moderate |
Moderate |
|
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