Policy Regarding ESG

Policy Regarding ESG

Daiwa Securities Living Investment Corporation (the "Investment Corporation") and Daiwa Real Estate Asset Management Co., Ltd. (the "Asset Manager") will focus on the following items in the asset management for the Investment Corporation judging that emphasizing ESG (Environment, Social and Governance) contributes to the enhancement of the Investment Corporation's medium- to long-term corporate value.

1. Initiatives on Environmental Protection (Environment)

We will proactively promote initiatives on environmental protection such as resource and energy-saving measures such as the introduction of facilities and equipment contributing to environmental protection at the properties owned by the Investment Corporation.

2. Connection to Society (Social)

We will proactively disclose information and fulfill accountability to all of stakeholders including investors in the Investment Corporation and correspondent banks through IR activities, etc. We will accomplish social missions of a listed investment corporation and its asset manager by providing high-quality and comfortable residential spaces in partnership with the property management companies to all of the tenants occupying the Investment Corporation’s properties. In addition, the Asset Manager aims to achieve an ideal working environment that places importance on work life balance of officers and employees while endeavoring to develop human resources through such as training inside and outside the company, to contribute to society through excellent asset management.

3. Corporate Governance (Governance)

The Asset Manager and the Investment Corporation will conduct highly transparent and reasonable decision making by observing the laws and regulations and various rules while being aware of the importance of corporate ethics and compliance. In addition, the Asset Manager will make efforts to enhance the internal control environment such as preventing conflicts of interests and implementing risk management, conduct educational and enlightenment activities for officers and employees, etc. to fulfill the duty of care of good managers and fiduciary duty (fiduciary liability).

Sustainability Initiatives

The Asset Management Company established the rules on the sustainability promotion system in November 2017 to implement the Investment Corporation's policy regarding ESG in a thorough manner and designated the President & CEO as the "Chief Executive for Promoting Sustainability," in addition to establishing a "Chief Sustainability Officer" and "Sustainability Promotion Committee."

The "Sustainability Promotion Committee" is composed of members including the CEO and Chief Sustainability Officer. It is held more than once every three months in principle and matters regarding the promotion of sustainability such as individual policies, goals and various measures regarding sustainability are discussed.

In the above rules, "Sustainability" is defined as an action to conduct asset management taking into consideration the environment and society, and having it contribute to the creation of a sustainable society as well as aim to stabilize and sustainably develop business activities of the Investment Corporation and the Asset Management Company.

In addition, we established various policies for energy saving, reduction of greenhouse gas emissions, water saving and sustainable procurement in properties owned by the Investment Corporation in February 2018 to set a specific management policy based on the above rules.

We have set the following goals regarding the reduction of energy, etc. for rental housing among properties owned by the Investment Corporation in the various policies mentioned above.

  • Reduction of energy consumption intensity by 1% per year (5% in 5 years)
  • Reduction of CO2 emission intensity from energy sources by 1% per year (5% in 5 years)
  • Reduction of water consumption intensity by 0.2% per year (1% in 5 years)

As for the sustainable procurement policy, we established guidelines for the selection and evaluation standards of property management companies as well as suppliers, and started cooperating with the Investment Corporation in the implementation of ESG and monitoring of compliance with the standards.