MCUBS’s Vision for Sustainability

Supported by the funds procured from investors and other parties, MCUBS manages various types of properties, including commercial facilities, industrial facilities, and offices. Amid the rising level of interest from global investors toward environmental, social, and governance (ESG) factors, the Company is undertaking ESG-related initiatives based on an awareness shared across the organization.
 
The Company has formulated the Environmental Charter and the Responsible Property Investment Policy as a clarification of its strategies and policies. In doing so, the Company is integrating ESG considerations into its investment and asset management processes. The Company is also working to incorporate ESG within its Mission, Vision & Core Values with the aim of establishing a shared awareness of ESG across the Company.

Our Sustainability Goals

MCUBS has set the following sustainability goals to realize its vision for sustainability incorporating the ideas of the Sustainable Development Goals (SDGs).
  1. Reduce environmental impact
  2. Create social value / Improve health and well-being of employees / Contributing to the local communities
  3. Practice sound asset management for all stakeholders

Specific Initiatives to Reduce Impact on the Environment

  1. Installation of solar power panels and other environmentally friendly facilities to improve the profitability of assets
  2. Monitoring of energy consumption
  3. Monitoring of ESG activities of funds under management through participation in surveys conducted by GRESB and other external evaluation institutions, after which survey results are utilized to make further improvements

Collaboration between Mitsubishi Corporation and UBS AG

Our Sustainability Committee keeps in close communication with our sponsor, Mitsubishi Corporation. Starting with the adoption of a sustainability strategy based on Mitsubishi’s Three Principles, this communication has led to the sharing of know-how and examples of successful initiatives between the Company and Mitsubishi. In addition, examples of our Green Buildings were showcased in Mitsubishi’s ESG Data Book 2018, issued in December 2018.
 
Meanwhile, our other sponsor, UBS AG, is engaging in advanced ESG activities on a global scale. By having employees seconded to the Company from UBS participate in our Sustainability Committee, we are able to learn about examples of global initiatives and acquire relevant knowledge, which we then leverage within our own sustainability activities. Furthermore, we mutually share know-how and expertise with UBS, and examples of the MCUBS’s initiatives have been introduced as best practices in the CSR reports published by UBS.

ESG Materiality and the SDGs

Through the meetings of the Sustainability Committee, MCUBS has examined its vision and targets for sustainability and carried out efforts toward their realization. As the level of interest toward ESG is rising, we have identified and visualized ESG material issues related to sustainability (materiality). By doing so, we have further clarified the dialogue we hold with global stakeholders and the efforts we pursue in collaboration with other organizations. These issues were identified based on the Company’s Corporate Philosophy and Environmental Charter but also incorporate the ideas of the Sustainable Development Goals (SDGs), globally shared goals promoted by the United Nations.


ESG Materiality Selection Process 

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In 2018, through the ESG materiality selection process detailed above, we have identified the following ESG materiality as having a high level of importance to MCUBS at this time. In 2019, we organized opportunities and risks about it, and set new KPIs.

First, as a real estate asset management company, it is absolutely essential that MCUBS ensures the quality of the buildings it manages through certifications and other means and addresses issues related to climate change and energy efficiency. Also, we will strive to improve building comfort and convenience and to raise the awareness of tenant employees about ESG, and strive to increase satisfaction to achieve this goal.
 
Next, in addition to responding to climate change and energy efficiency, we must work together with our tenants and local community members to address the issues of efficient water use and waste disposal. By doing so, we will work to establish partnerships and build green communities.

Going forward, after further clarifying the level of priority of these issues and working to visualize them, we will strive to achieve their resolution while promoting dialogue with all of our stakeholders.

List of Sustainability Issues

  • Response to sustainability certifications
  • Building resilience
  • Response to climate change
  • Energy efficiency
  • Ensuring of health and well-being of and convenience for people (tenants)
  • Employee cultivation and level of satisfaction
  • Efficient water use
  • Waste disposal
  • Partnership with tenants
  • Collaboration with local communities
  • Biodiversity in areas surrounding our buildings
  • Employee diversity
  • Compliance
  • Supply chain management

Closely Related SDGs to ESG Materiality of MCUBS

Level of Importance ★★★

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Most important
ESG materiality
Target KPI Risk Opportunity Closely related
SDGs
Response to
sustainability
certifications
Improving proportion of environmental certifications Defined by each investment corporation
  • Decline in assessment among tenants and investors who base their assessments on sustainability
  • Improve environmental performance of properties
  • Expand the range of investors
Improving sustainability activities through participation in GRESB and other external evaluation institutions Participate every year
Building resilience Implementing disaster prevention measures Defined by each investment corporation
  • Increase in expenses for recovery, compensation, etc., after natural disasters
  • Increase in property competitiveness
Response to climate
change
Disclosure in compliance with the TCFD framework Disclosure in compliance with a shared framework (Target year: 2020)
  • Drop in tenant sales & increase in property damages due to physical impact of climate change
  • Decline in assessment by tenants & investors
  • Cost reduction with efficient energy use
Reduction in CO2 emission Defined by each investment corporation
Energy efficiency Improvement in energy consumption Defined by each investment corporation
  • Increase in energy-related expenses
  • Reinforcement of environmental regulations
  • Cost reduction with efficient energy use
Introduction of renewable energy use Defined by each investment corporation
Ensuring of health
and well-being of
and convenience
for people (tenants)
Improvement in tenant employee space Defined by each investment corporation
  • Decline in property competitiveness
  • Manpower outflow due to declining work conditions
  • Improved sustainability assessment by assessment bodies and investors
  • Improvement in employee satisfaction and tenant assessment & satisfaction
CASBEE-WO certification Defined by each investment corporation
Development of the office environment and implementation of employee satisfaction survey Survey conducted biannually
Improvement in paid leave usage rate Paid leave usage rate at 70%
(Target year: 2020)
Employee cultivation
and level of
satisfaction
Improvement in employee training program menu Providing menu for a program offering choices for all employees
(Target year: 2020)
  • Outflow of talent
  • Emergence of risks with decline in compliance awareness
  • Development & recruitment of competitive human resources
  • Assurance of customer trust through improved compliance awareness
Employee participation in compliance training 100%
(Target year: 2020)

Level of Importance ★★

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Important
ESG materiality
Target KPI Risk Opportunity Closely related
SDGs
Efficient water use Reduction in water consumption Defined by each investment corporation
  • Impact of shortage or quality decline of water resources on surrounding areas
  • Rise in cost with increase in water consumption volume
  • Cost reduction with reduction in water consumption
Waste disposal Reduction in wastes Defined by each investment corporation
  • Reputation risk caused by increase in wastes
  • Increase in processing cost
  • Processing cost reduction with reduction in wastes
Partnership with
tenants
Introduction of green lease Defined by each investment corporation
  • Greater tenant burden regarding safety and the environment
  • Decline in tenant satisfaction
  • Devolution into property attractive to the tenant
  • Generation of stable revenues
Execution of tenant satisfaction survey Defined by each investment corporation
Collaboration with
local communities
Support of social welfare organizations Two or more organizations per year
  • Degradation of the environment surrounding the real asset
  • Decline in reputation in the neighboring area
  • Revitalization of neighboring areas
  • Improvement of corporate image
Providing land to community events Defined by each investment corporation

Our ESG Materiality and Closely Related SDGs

MCUBS’s corporate activities are based on long-term perspectives of the environment, society and governance in which ESG is taken into account. From the perspective of the degree of influence on both society and MCUBS, the goal is sustainable growth of the company and contributing to the SDGs, which, as a global company, is a sustainable development goal, through a focused approach on the identified materiality and creating economic and social value.

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EEnvironment
Goal
Contributing SDGs
Objective of principal initiatives/Examples of initiatives Social benefits Company benefits
Reduce environmental impact
Control CO2 emissions
・Reduce paper media
・Dimmable lighting
・Reduce environmental impact ・Promote operational efficiently

・Improve health and well-being of employees

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SSociety
Goal
Contributing SDGs
Objective of principal initiatives/Examples of initiatives Social benefits Company benefits
Create social value / Improve health and well-being of employees
Respect for human rights
・Support for UNHCR and UNICEF
・Support for social welfare organizations

Improve health and well-being of employees
・Office incorporates natural light and planting
・Furniture that is adjustable to various health-conscious configurations
・Regular worker satisfaction survey

Contribute to the community and raise awareness about the environment
・Support activities for the Great East Japan Earthquake
・Participate in local activities
・Bring about a symbiotic society

・Revitalize local community and economy
・Contribute to the social activities

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GGovernance
Goal
Contributing SDGs
Objective of principal initiatives/Examples of initiatives Social benefits Company benefits
Practice sound asset management for all stakeholders
Comprehensive corporate governance system
・Enhauce Management Structure (Dicision-making process, Basic Compliance Policy, Stracture on risk management)
・Eliminate anti-social forces
・Anti-corruption
・Commit to fiduciary responsibility

Information disclosure to stakeholders
・Proper disclosure

Maximize investor value
・Sigh/Participate in International initiatives
・Maintain and develop a sound market ・Practice sound and efficient asset management

What are SDGs?

In September 2015, the "United Nations adopted the Transforming our world: the 2030 Agenda for sustainable development. " The Agenda set forth declarations and goals as action plans for humankind, the earth and prosperity. These goals are known as the Sustainable Development Goals (SDGs). The SDGs consist of 17 goals and 169 targets. What characterizes the goals is the fact that they are inextricably linked to each other. The reason for this is the fact that the various global-scale issues are connected in a profound and complicated way and each economic, social and environmental issues have to be resolved with an integrated approach. It is the SDGs, the “new signposts” where the world will work as one to make it a better place. The United Nations has made a call for action for the goals to be realized by 2030. MCUBS contributes to the SDGs 2030 goal through the initiative of Vision 2025.

ESG Report

We published this ESG report, with the hope of sharing the company’s basic ESG approach and activities to all of our stakeholders, including our unitholders. We make it referring to GRI standards and SASB (Real Estate Industry) for a high level of interest in sustainability.We would be grateful if you promote a better understanding about the ESG activities of MCUBS. MCUBS will continue to take ESG activities proactively.

Questions concerning MCUBS sustainability

Mitsubishi Corp.-UBS Realty Inc.

URL :https://www.mc-ubs.com/english/contact/