Green Finance

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The Investment Corporation has established the Green Finance Framework under the belief that providing investment opportunities for investors who are active in ESG investment through green financing is of social significance.

The Investment Corporation has received Green 1(F), the highest rating in “JCR Green Finance Framework Evaluation” from Japan Credit Rating Agency, Ltd. as a third-party evaluation for the Green Finance Framework.

Green Finance Framework

1.Use of Procured Funds

Funds raised through green bonds or green loans will be used to acquire properties that meet the following eligible criteria or to refinance the funds.

【Eligible criteria】

Properties which have received or will receive any of the following certifications from third-party certification bodies

DBJ Green Building Certification 3 Stars, 4 Stars or 5 Stars
CASBEE for Buildings (New Construction) B+ Rating, A Rating or S Rating
BELS Certification 3 Stars, 4 Stars or 5 Stars
LEED Certification Silver, Gold or Platinum

2.Evaluation/selection Process of Projects

Under the advice of the asset manager of the Asset Manager, the Finance Department will consider the suitability for eligible criteria, and then evaluate and select the projects.
Raising funds through green financing for the project is examined by the Asset Manager’s Sustainability Promotion Committee, deliberated by the DOI Investment Committee and the Board of Directors, and approved by the Board of Directors of the Investment Corporation.

【Selection process of projects】

Selection process of projects

3.Management of Procured Funds

Setting the total acquisition price of eligible green assets as the maximum issuance amount of green bonds, the Investment Corporation manages so that, as long as there is an unredeemed balance of the relevant green bonds, the total amount of the outstanding green bonds does not exceed the total acquisition price of eligible green assets.
In addition, the Investment Corporation internally tracks and manages the allocated funds for each portfolio asset as long as there is an unredeemed balance of the relevant green bonds. In the case where all or part of the net proceeds of the green bond is not immediately allocated to eligible green assets, the Investment Corporation first identifies such unallocated funds, and then manages all or part of the funds in cash and cash equivalent until such is allocated to eligible green assets.

4.Impact Reporting

As long as there is an unredeemed balance of the relevant green bonds, the Investment Corporation will annually disclose allocation, the number of the buildings of eligible green assets and environmental performance indices on its website. The reporting as of May 31, 2021, is as follows.

(Allocation Reporting)

The Investment Corporation confirmed that the net proceeds of the green bonds are fully allocated to eligible green assets in accordance with its Green Bond Framework, and that the total amount of the outstanding green bonds does not exceed the total acquisition price of eligible green assets.

Total amount of the outstanding green bonds 3,900 million yen
Total acquisition price of eligible green assets 286,073 million yen
Total issue
amount
(million yen)
Interest rate Issue date Redemption date Issue period Allocation status
Seventh Series of Unsecured Investment Corporation Bonds 1,500 0.310% September 11, 2020 September 11, 2025 5 years Fully allocated to part of the repayment funds for short-term borrowings for the acquisition of Daiwa Harumi, one of the eligible green assets
(Green bond)
Eighth Series of Unsecured Investment Corporation Bonds 2,400 0.600% September 11, 2020 September 11, 2030 10 years
(Green bond)
Total 3,900

(Impact Reporting)

  • The number of the buildings, the total amount of the floor area of eligible green assets
Environmental certification FY2020 FY2021
Number of properties Total floor area Number of properties Total floor area
CASBEE for Real Estate 29 260,801.22㎡ 29 260,801.22㎡
DBJ Green Building Certification 2 82,282.76㎡ 2 82,282.76㎡
LEED 1 15,012.46㎡ 0
Portfolio Total 30 301,093.10㎡ 30 301,093.10㎡
  • When several certifications have been obtained for the same property, it is counted as one property so as to calculate the total value without any duplication.
  • For sectional ownership buildings, the total floor area is calculated based on the ownership ratio of the Investment Corporation.
  • Quantitative indicators regarding eligible green assets
FY 2020 FY 2021
Energy Consumption 52,679 MWh 50,540 MWh
CO2 emissions 21,381 t-CO2 20,799 t-CO2
Water consumption 142,262m³ 141,939m³
  • Calculated based on data of eligible green assets for which the Investment Corporation has energy management authority from April 2020 to March 2022.
  • Figures for FY2020 have been revised retrospectively after careful examination of the data.