Real Estate

Our Approach to Our Sustainability Themes

We do business with a policy that prioritizes safety, security, and comfort as we decarbonize in consideration of the environment and coexist with communities. We provide products and services with sustainability in mind to help achieve a sustainable society.

RE Investment and Facilities Operation

• We place importance on obtaining explicit third-party certification of the environmental performance, safety, and security of newly developed properties. We are also upgrading to energy-saving equipment and increasing our use of renewable energy as part of our plan to reduce CO₂ emissions from portfolio properties.
• Our facility operation business provides environmentally friendly furnishings and is committed to reducing food waste and loss. We use locally sourced food and ingredients, hire local people, and collaborate with tourism-related organizations and local companies in initiatives to promote the appeal of the areas we serve. Our inns and hotels prioritize the safety and security of guests and meticulously ensure consistently excellent hygiene.

DAIKYO

• We will use ZEH-M Oriented* specifications in developing condominiums as the basis for reducing the energy consumption of properties.

• Net zero energy house. Refers to housing that aims to keep the balance of annual energy consumption to zero or less by conserving energy with outstanding thermal insulation performance and the use of highly efficient facilities, and by creating energy with solar power generation. ZEH-M Oriented refers to condominiums that reduce primary energy consumption by 20% or more from the baseline value.

Business Activities and Sustainability Themes Matrix

Development of environmentally-friendly properties

• #Climate change / Reducing GHG emissions
• #Climate change / Spreading and promoting renewable energy generation

The office building and logistics center properties we develop are equipped with environmental functions and prioritize safety and security. To communicate this quality to third parties, we acquire external certifications including the Comprehensive Assessment System for Built Environment Efficiency (CASBEE). When developing logistics facilities, we make efforts to incorporate environmentally-friendly features such as installation of solar panels to supply energy used in the facility and electric vehicle (EV) charging stands.
For properties in our portfolio, we will formulate a plan to reduce emissions which includes installing new energy-saving equipment during facility renovation and repair and adoption of renewable energy.

Related Link

• ORIX Real Estate Environmental Certification Acquired: LEED/CASBEE(in Japanese)

Development of eco-friendly residences

• #Climate change / Reducing GHG emissions
• #Conserving energy / resources

The Japanese government has set goals in its Strategic Energy Plan “to achieve ZEH (Net Zero Energy House)^*1 with regard to over half of newly constructed made-to-order properties by 2020 and on average for all newly constructed properties, including made-for-sale houses and collective housing, by 2030”. Furthermore, regarding long-term strategy—a growth strategy of the Paris Agreement—the energy plan commits to encouraging the development and spread of innovative building materials and equipment that will enable residential and office average housing stock to achieve net zero energy consumption as early as possible in the latter half of the 21st century.
Lions Ashiya Granfort is Japan's first apartment building certified as Nearly ZEH-M^*2 (completed in May 2019), making it a pioneer in the introduction of ZEH in collective housing. This property will reduce its primary energy consumption^*3 by 32% through energy conservation by means of increased insulation performance and high electricity efficiency using ‘Next Generation ENE-FARM’ residential fuel cells. Additionally, by utilizing solar power to create 48% of its primary energy consumption, the property reduces primary energy consumption by 80% or more through energy conservation and creation.
Furthermore, Daikyo and Anabuki Construction applied for the Ministry of Economy, Trade and Industry's “2018 ZEH-M demonstration project” – a demonstrative business project with the objective of furthering ZEH in collective housing. In 2018, 10 projects were selected to participate through a public appeal, 11 projects were selected in the Ministry of the Environment's “2019 ZEH-M high-rise support project” the following year. Five projects were selected in 2020, and two in 2021. In 2022, three projects were selected as part of the ZEH-M medium high-rise support project.
With the goal of making ZEH-M Oriented^*4 or higher the standard specification for all newly constructed condominiums in the future, Daikyo and Anabuki Construction will continue to actively implement environmentally friendly living spaces.

1. ZEH is an acronym for “Net Zero Energy House,” referring to housing which aims to have annual net energy consumption of zero or less. This is achieved through a combination of energy saving (improving insulation function and installation of energy-efficient equipment) and energy creation (power generation using solar panels or other methods).
2. Nearly Zero Energy Mansion: A collective housing (e.g. apartment building) facility that complies with Nearly ZEH-M guidelines and reduces its primary energy consumption by 75% or more by way of energy conservation and creation
3. Total energy consumed (after thermal conversion) through infrastructure and equipment generating air conditioning and heating, ventilation, hot water, and lighting
4. Housing which complies with ZEH-M Oriented guidelines and reduces its primary energy consumption by 20% or more by way of energy conservation

Related Link

• DAIKYO LIONS ZEH & SURPASS ZEH(in Japanese)

Efforts to protect biodiversity in condominium development

• #Biodiversity / Environmental conservation

As an apartment developer, Daikyo prioritizes its responsibility regarding biodiversity conservation, and is committed to developments that take into consideration the equilibrium and sustainability of the surrounding environment, scenery, and living creatures. Conserving local natural life and the efforts to pass down biodiversity conservation to the next generation are being realized in the form of the Ecological Network PASS, which is being rolled out across the country in many prominent developments. The Ecological Network PASS does environmental research on planned development sites (including the surrounding area within a 2 km radius) and then conducts an evaluation based on the site's green space and water resources. The results of this evaluation determine green space configuration tailored to the area and planting design plans that focus on native species of trees. Daikyo is assessing the planting design plan by its own standards based on the Association for Business Innovation in harmony with Nature and Community (ABINC) certification's standards^*.

• As a third party, ABINC rates and certifies companies based on their efforts managing and utilizing green spaces with respect for biodiversity. This rating and certification are based on Guidelines by the Working Group for Discovering & Sharing Green Values® and Land Use Score Card® by the Japan Business Initiative for Biodiversity (JBIB).

Eco-friendly management of aquariums

• #Climate change / Reducing GHG emissions

Using an artificial seawater production system, the Kyoto Aquarium and Sumida Aquarium have achieved complete artificial seawater operations^*1, making them Japan's first^*2 inland aquariums. The system suppresses CO₂ emissions generated when transporting sea water in large vehicles while helping to maintain a consistent water quality throughout the year, providing a more comfortable environment for creatures living in the aquariums.
The Sumida Aquarium has reduced its energy consumption by changing display lighting to LEDs, and optimizes facility-wide energy use through the introduction of a building energy management system (BEMS). Kyoto Aquarium effectively utilizes natural energy through solar power generation and natural ventilation and lighting, as well as vaporization heat through flower basins and dry mist. They also make efforts to secure water resources by utilizing rainwater and high-function filtration systems.

1. Excludes freshwater
2. Kyoto Aquarium was the first in Japan, followed by Sumida Aquarium

AQTION! – Actions by the aquariums to connect to our planet's future

• #Biodiversity / Environmental conservation
• #Regional vitalization

Kyoto Aquarium and Sumida Aquarium have started an initiative to take action, or AQTION!, for our planet's future. The word AQTION is a portmanteau of the words ‘action’ and ‘aquarium,’ and illustrates the actions the aquariums plan to take. Aquariums will work together with children, who represent the future, and regional societies to global and social issues of which they have special awareness.

Kyoto Aquarium AQTION! Example

• Kyoto Aquarium is participating together with Kyoto City and Kyoto University in a biological survey of the giant Japanese salamander, which has been designated a special natural monument. Some of the salamanders collected for the study are on display in the aquarium. The aquarium both educates the public and raises public awareness of the threat of invasive species.
• With the aim of protecting endangered species living in Kyoto Prefecture, Kyoto Aquarium also works to promote captive breeding and ex-situ conservation programs for freshwater fish and amphibians. These efforts have contributed to conservation of various species, as technological improvements achieved through programs for species native to other prefectures or outside of Japan have allowed for the successful breeding of species which were not possible before.

Sumida Aquarium AQTION! Example

• In order to preserve Tokyo's biodiversity for future generations, Sumida Aquarium educates the public about living things and works together with other institutions in conservation efforts to ensure no further species become extinct.
• In collaboration with Ogasawara Village in Tokyo Prefecture, Sumida Aquarium promotes the beauty of the Ogasawara Islands, which are designated a World Natural Heritage site, and works to conserve green sea turtles, which are in danger of extinction.

Efforts to reduce plastic waste, Promote ‘3Rs’ – Reuse, Reduce, Recycle

• #Promoting a circular economy
• #Waste treatment and reduction

ORIX Hotel Management, which operates a total of 18 facilities and approximately 3,900 hotel and inn rooms, has ceased distributing single-use plastic amenity items in guest rooms beginning April 2022. These amenities are now distributed at the front desk or at a centrally located amenity bar. Going forward, we will gradually shift to amenity items manufactured from alternative, eco-friendly materials.
At the 14 hotel facilities operated by ORIX with eating establishments (such as restaurants) on site, we educate guests about food loss reduction through posters, point-of-purchase notices, or other methods. To reduce food loss, we endeavor to have efficient procurement, adjust buffet operating times, and serve only the necessary amount of food. We also work to promote reuse of food waste, and aim to achieve a 50%^* reuse ratio by 2024.

• Reuse Goal from “Basic Guidelines for Promoting Re-use of Circular Food Resources,” from Food Recycling Law, announced July 12, 2019. (Ministry of Agriculture, Forestry and Fisheries)

ORIX's aquariums have discontinued the use of plastic straws in aquarium cafes since 2019, and replaced them with paper straws. We are steadily adopting more eco-friendly materials, such as shifting from plastic to paper bags in shops and from plastic to paper cups in cafes. Our cafes promote efficient foodstuff procurement and preparation, in an effort to reduce food waste.

Daikyo Astage and Anabuki Community are proactively implementing ‘3-R’ efforts, through garbage reduction (reduce), reuse, and separating recyclable trash (recycling). We offer new condominium residents discounted recycling, repurchase, and storage services, and encourage participation in garbage reduction efforts in residents' daily lives.

Preparing for disasters (disaster prevention, mitigation, BCP)

• #Disaster recovery

ORIX Real Estate is developing logistics facilities and office buildings that support strengthening tenants' BCPs (Business Continuity Plan). In addition to installing emergency generators and storing essential disaster supplies, our properties include seismic isolation and earthquake resistant features for typhoons, earthquakes, and other disasters.
For hotels and inns operated by ORIX, we have disaster manuals which clearly outline procedures for evacuation and sheltering in place and carry out practice drills, with the aim of prioritizing guest safety during disasters. Each facility stores at maximum three days of disaster rations and portable latrines for each overnight guest, and evacuation kits sufficient for the buildings' population are also on hand.

As an apartment developer committed to disaster prevention measures for housing complexes—which have played an essential role since the Great East Japan Earthquake—Daikyo has built a new disaster prevention system “SONA-L SYSTEM” to implement in newly constructed condominium properties across the country. This system has incorporated and placed emphasis on the following two concepts: 'sustainable living post-disaster' and 'prevention measures for varying disasters'.

SONA-L SYSTEM's specific functions:

1. Sustainably supporting life post-disaster
   Supplying electric power to elevators and water pumps during electrical power outages by combining solar power and storage batteries can secure lifelines for sustaining lives. By being able to secure more than a week's worth of electricity and water post-disaster, those affected can stay in their homes without going to disaster shelters.
   * Applicable to a limited number of condominiums
2. Addressing varying disasters
   Flood damage is increasing due to frequent occurrences of torrential rain and similar disasters. Alongside infrastructural developments by the government, Daikyo has formulated the Lions Flooding Prevention Measure Standards which clarifies risk determination standards and methods for constructing countermeasures based on the premise that measures addressing flood damage are of equal importance to earthquakes measures. From the initial site selection, Daikyo checks hazard maps and conducts inspections of the area, examining sites based on strict standards.
3. Augmenting existing disaster prevention measures
   In addition to the measures to support its infrastructural development—such as efforts to guarantee building quality to ensure earthquake safety—Daikyo is also strengthening its soft elements, such as community building efforts to prepare for disaster situations.

ORIX's aquariums have developed their own disaster manuals, and undertake disaster drills to confirm visitor guidance and other measures during emergencies. In the event of a disaster, the aquariums store disaster supplies such as drinking water within the building.

Related Link

• DAIKYO SONA-L SYSTEM(in Japanese)

Efforts to promote adoption of electric vehicles

• #Climate change / Reducing GHG emissions

As the adoption of electric vehicles (EVs) accelerates worldwide, ORIX Hotel Management is introducing Ubiden's IoT-technology enabled WeCharge charging stations in facility parking lots, so EV owners can stay at our hotels and inns with peace of mind.
Facilities with EV charging stations installed: Onyado Toho, Aizu-higashiyama Onsen

Daikyo has increased the percentage of parking spaces equipped with EV charging plugs to 50% of newly developed condominiums, while those spots without charging capabilities will be designed in such a way as they can be easily added in the future. These efforts will also utilize WeCharge charging stations, which accommodate all types of EVs and plug-in hybrid vehicles (PHVs) and allow for total service management (from registration to charge calculation and payment) through a smarphone app. By equipping parking lots with equipment which will allow for easy charging in light of future growth in demand for EVs, we are contributing to both promotion of EVs and realization of a sustainable society.

Promoting renovation and condominium repair busines

• #Promoting a circular economy

While it is customary to periodically fix and maintain real estate for longevity in Western countries, consumers in Japan tend to prefer newly-built properties. Daikyo Anabuki Real Estate is preserving older properties by providing repair work through its renovation business and increasing the value of such properties in the process. This business aims to alleviate buyer hesitance toward second-hand properties while extending property lifespans.
In addition, making use of its group companies' 50 years' worth of experience and knowledge developing condominiums and managing properties, Daikyo Anabuki Construction has conducted repair work for over 6,000 properties, actively taking on repair work projects to cultivate property value and allow residents to inhabit properties long-term with assurance.

Integrated management ESCO business

• #Conserving energy / resources

With a main focus on building management, ORIX Facilities is putting efforts toward an integrated management ESCO business. ESCO provides comprehensive services to help customers achieve energy conservation-related objectives, acquiring a fraction of the avoided costs from energy saved as a profit. It also guarantees energy conservation in the facilities it manages. Unlike the standard ESCO business, the integrated management ESCO business focuses not only on new facilities in which it has installed high efficiency energy saving systems, but also proposes operations improvement ideas for existing facilities as well as assurance, operation, and maintenance services for energy conservation effectiveness in the form of a total package. Through proposing operations improvement solutions, ORIX Facilities can offer high quality facility and energy management alongside energy saving outcomes for customers.

Comprehensive urban planning and redevelopment business

• #Regional vitalization

Comprehensive urban planning business
ORIX Real Estate focuses efforts on urban planning, which encompasses offices, commercial facilities, hotels, conference facilities, and more. Through real estate investment, development, and operation, ORIX Real Estate is contributing to urban planning and the revitalization of local regions.

Redevelopment business
Daikyo has an extensive track record with large-scale redevelopment projects in urban areas with multiple ongoing projects. We are doing our part to create lively cities by participating in these projects from the beginning and placing great emphasis on the opinions of local beneficiaries.

Related Links

• ORIX Real Estate Complex Urban Development and Redevelopment Business
• DAIKYO Redevelopment Business(in Japanese)

Operating serviced offices

• #Promoting a circular economy
• #Improving labor productivity

To help clients adapt to diversified working styles, ORIX Real Estate supports businesses from a multi-pronged approach, by offering serviced offices (rental offices with additional services) with varying locations, size, and facilities. Beginning with Cross Office Shibuya in 2009, ORIX operates seven locations in the Cross Office series within Tokyo (two in Shibuya, one each in Uchisaiwaicho, Mita, Shinjuku, Roppongi, and Hibiya). These offices provide added value and offer unique accents tailored to their locations and the people working there. Cross Office Hibiya, for example, is filled with greenery and is designed on a ‘business wellbeing concept,’ allowing workers to smoothly switch between on and off modes. Cross Office Roppongi features a decorated common space utilizing original art and digital pieces.

Related Links

• ORIX Real Estate Office Building Development Business
• CROSS OFFICE

Regional co-creation efforts in the facilities operation business

• #Regional vitalization

The Regional Co-creation Project was launched in 2021, with 23 facilities operated by ORIX Group in 12 prefectures—including hotels, inns, training facilities, and aquariums—taking part in the project. This project aims to encourage communication between regional companies and municipalities and uncover and create tourism resources while making use of ORIX Group's business foundation. We aspire to accelerate a virtuous cycle that benefits visiting guests, the regions, and our facilities by increasing long-term, stable fans of local regions more than ever before.

As part of this project, ORIX Real Estate signed an Agreement on Friendly Exchange with Ritsumeikan Asia Pacific University (APU) in December 2021. Through this agreement, the two parties aim to conduct research into regional revitalization and its realization, focused on tourism, by combining APU's education and research functions in the tourism studies field and the sensibilities of its diverse international students, with ORIX's management expertise. With the knowledge and experience gained through this initiative, we will strive to nurture students who will work in the tourism industry and in the creation of a sustainable region.

Lectures on aiding senior citizens in disaster situations and dementia support

• #Aging society

Aiming to support and protect the lives of the occupants inhabiting the properties they oversee, apartment maintenance businesses Daikyo Astage and Anabuki Community are holding lectures on how to aid senior citizens in disaster situations and provide support to those with dementia.

Lectures on how to aid senior citizens in disaster situations
To address aging properties as well as aging property occupants, Daikyo Astage and Anabuki Community are holding lectures in collaboration with the Japanese Red Cross Society for occupants on how to aid senior citizens in disaster situations. Lecture attendants learn how senior citizens can maintain independent lives and about the technical skills necessary in supporting senior citizens. Additionally, these lectures provide opportunities for occupants to meet and connect with fellow occupants.

Dementia support
The main responsibility of apartment management staff is to provide support to property occupants. Staff members who, in their day-to-day routines, notice change in occupants' behavior caused by dementia who swiftly report such changes to family members and the police can prevent accidents from occurring. In 2007, Daikyo Astage and Anabuki Community began training their employees to support those living with dementia. Three months after joining, new employees attend the Ministry of Health, Labour and Welfare's ‘Dementia supporters training program’ and register as supportive advocates.

Sustainable asset management

• #Investments and lending that take ESG into account

The investment philosophy of ORIX JREIT, which is managed by ORIX Asset Management, is to achieve stable growth in unitholder value. To that end, sustainable asset management with a commitment to ESG is essential, and ORIX Asset Management has established an ESG Policy aligned with the Task Force on Climate-related Financial Disclosures (TCFD) and the United Nations Environment Programme Finance Initiative (UNEP FI) and is implementing initiatives to counter climate change.

Related Links

• ORIX Asset Management ESG Initiatives
• ORIX JREIT Initiatives towards ESG