1. Home
  2. ESG Initiatives

ESG Initiatives

Daiwa House Asset Management Co., Ltd. (hereinafter referred to as the “Asset Manager”) is dedicated to investing in and managing real estate and other assets across a broad range of sectors that meet social needs in pursuit of sustained unitholder-value accretion through stable revenue and steady growth of assets over the medium to long term. The Daiwa House Group’s basic approach is “Creating Dreams, Building Hearts.” As a group that co-creates value for individuals, communities and people’s lifestyles, the Daiwa House Group aims to build trust relationships with stakeholders and contribute to society through its business, and to realize a sustainable society by meeting the challenge of achieving “zero environmental impacts.”
The Asset Manager shares the Daiwa House Group’s basic approach and considers that including consideration for environment, society, and governance (hereinafter referred to as “ESG”) in its real estate investment management operations and advisory services contributes to ensuring stable revenue and steady growth of assets over the medium to long term.
Learn more about Daiwa House Group’s CSR activities

■Signing on to Principles for Responsible Investment (PRI)

The “Principles for Responsible Investment (PRI)” is an international network of institutional investors working to realize the following six principles. The PRI is supported by the United Nations Environment Programme Finance Initiative (UNEP FI) and the United National Global Compact (UN Global Compact). The investors who are signatories to the PRI declare to include ESG issues into investment decisions, and while helping the beneficiaries enhance long-term investment performance and fulfilling their fiduciary duty as signatories, they aim to create an abundant world for all stakeholders.

<The six Principles for Responsible Investment >

  1. 1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. 2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. 3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. 4. We will promote acceptance and implementation of the Principles within the investment industry.
  5. 5. We will work together to enhance our effectiveness in implementing the Principles.
  6. 6. We will each report on our activities and progress towards implementing the Principles.
For details, please refer to the PRI website: https://www.unpri.org/

The Asset Manager agreed with the basic approach of the PRI and became a signatory in February 2021.

■Eco Action 21 Certification and Registration Program

“Eco Action 21” is a third-party evaluation system to certify and register organizations which implement appropriate environmental initiatives, establish, operate, and maintain environmental management system, and promote environmental communication in accordance with the “Eco Action 21 Guideline” (Note) formulated by the Ministry of Environment.

(Note) “Eco Action 21 Guideline” formulated by the Ministry of the Environment covers three areas of environmental management systems, environmental performance assessments, and environmental activity reporting, and consists of 14 items or requirements based on the PDCA cycle.

Scope of certification and registration is the whole organization and all activities of the Asset Manager.

For details, please refer to the Eco Action 21 website: http://ea21.jp/
The Asset Manager was certified and registered in March 2020.

■Environmental Performance

Energy consumption

FY ended
Mar. 2019
(base year)
FY ended
Mar. 2020
FY ended
Mar. 2021
Total consumption (kWh) 77,075 78,930 89,817
Consumption intensity (kWh/million yen) 23.47 22.56 21.45
Reduction rate of intensity (%) - -3.9% -8.6%

GHG emissions (Scope 2)

FY ended
Mar. 2019
(base year)
FY ended
Mar. 2020
FY ended
Mar. 2021
Total emissions (t-CO2) 35.6 35.9 39.6
Emissions intensity (t-CO2/million yen) 0.0108 0.0103 0.0095
Reduction rate of intensity (%) - -5.3% -12.7%

(Notes)

1.  Aggregation period
 The aggregation period is from every April to the following March. Results are updated annually in principle.
2.  Calculation method
 Calculated based on electricity usage consumed by the Asset Manager in its office.
 Energy consumption intensity and GHG emissions intensity are calculated by dividing total electricity usage and CO2 emissions
 by intensity denominator (gross sales (million yen)).

■Diversity and Inclusion

The Daiwa House Group is actively promoting the creation of workplaces in which diverse employees can work flexibly.
Learn more about Daiwa House Group’s workforce diversity initiatives

■Sustainability surveys for employees

The Asset Manager recognizes human resources as its greatest asset and participates in the Sustainability Survey (formerly CSR Awareness Survey) conducted by the Daiwa House Group every year to verify how well the Principles of Corporate Ethics and Code of Conduct are being practiced in the workplace and the employment satisfaction level (100% response rate). The Asset Manager explains the survey results to officers and employees (including fixed-term employees, temporary employees and part-time employees), gives feedback, and encourages them to build a better workplace environment.
(Note) Surveys and analyses are outsourced to third-party institutions. Learn more about Daiwa House Group’s sustainability survey

■Personnel Data

FY ended Mar. 2018 FY ended Mar. 2019 FY ended Mar. 2020 FY ended Mar. 2021
Total personnel (Note 1) 59 61 60 59
Male personnel / percentage of total 44 / 74.6% 43 / 70.5% 42 / 70.0% 40 / 67.8%
Female personnel / percentage of total 15 / 25.4% 18 / 29.5% 18 / 30.0% 19 / 32.2%
Manager (Note 1) (Note 2) 24 21 22 27
Male personnel / percentage of total 24 / 100.0% 21 / 100.0% 21 / 95.5% 24 / 88.9%
Female personnel / percentage of total 0 / 0.0% 0 / 0.0% 1 / 4.5% 3 / 11.1%
New hires 8 2 2 13
Separations 0 1 7 2
Separation rate (Note 3) 0.0% 1.6% 11.7% 3.4%
Monthly average overtime hours 13.7 hours 12.0 hours 12.8 hours 13.6 hours
Average tenure 4.4 years 5.0 years 5.5 years 5.1 years
Average days of annual paid vacation taken /
paid vacation usage rate
12.2 days / 68.1% 12.7 days / 68.6% 12.5 days / 66.3% 13.1 days / 71.7%
Percentage of personnel who had health checkup 100% 100% 100% 100%
Occupational accident frequency rate (Note 4) 0.0% 0.0% 0.0% 0.0%
(Note 1)  Headcounts are as of April 1 of each fiscal year.
(Note 2)  Senior manager and above.
(Note 3)  Separation rate is the rate of separations to total personnel using total personnel as of April 1 of each fiscal year.
(Note 4)  Occupational accident frequency rate = (occupational injuries/fatalities ÷ total man-hours worked) × 1,000,000
 For more details, visit the following URL. (in Japanese only)
 http://anzeninfo.mhlw.go.jp/yougo/yougo22_1.html

■Benefits and Welfare

The Daiwa House Group recognizes the importance of promoting good health among its workforce and thereby improving labor productivity through consistent measures to eliminate excessively long working hours and help employees manage their health.
Based on such recognition, the Asset Manager has introduced employee leave/vacation programs such as the following in addition to celebratory event leave, bereavement leave, maternity/paternity leave, child caregiving leave (Note) and elder caregiving leave (Note).
(Note) Contract workers can also take advantage of these programs.

Program Summary
Special paid vacation Up to five days per year separately from annual paid vacation to promote employees’ health, etc.
Accumulated paid vacation Unused annual paid vacation days accumulate up to 20 days per year to a maximum of 100 days. Employees may use their accumulated paid vacation days as personal sick leave, maternity/paternity leave, family caregiving leave or community co-creation leave
Family caregiving leave Five days per year to care for ill family members
Community co-creation leave Five days per year to participate in activities that contribute to society, training for such activities, etc.

■Introduction of Cumulative Investment Unit Investment Program

In December 2013, the Asset Manager introduced a cumulative investment unit investment program in the aim of increasing the price of DHR investment units and further improving growth of DHR and medium- to long-term investor value by having officers and employees of the Asset Manager pay close attention to investment unit prices of DHR and raising their awareness of performance.

■Introduction of Investment Unit Ownership Program

In November 2019, the Asset Manager introduced an investment unit ownership program of DHR for its officers and employees in response to the Japan Securities Dealers Association’s issuance of guidelines on investment unit ownership programs in May 2018.
(Note) Daiwa House introduced an investment unit ownership program of DHR for its officers in November 2018, and for its employees in June 2020.

■Internal Reporting System and Whistleblower Protections

The Asset Manager has established whistleblower liaisons internally and externally and set up a process to appropriately handle consultations with or reports from whistleblowers on organizational or personal conduct that poses (or may pose) compliance issues, including violations of laws/regulations and ethically problematic conduct, in accord with the Whistleblower Protection Act and the Cabinet Office’s Whistleblower Protection Act guidelines for private businesses.
Additionally, whistleblowers are protected from prejudicial treatment in any form.

■Policy on and Approach to Human Resources Development

As stated in its Company Philosophy (Corporate Creed), the Daiwa House Group aims to “develop people through business.” We believe that human resources are the Group’s greatest assets.
To take advantage of the abilities and unique talents of our employees and develop human resources capable of contributing to society, we implement various training and programs that combine on-the-job and off-the-job training.
Learn more about Daiwa House Group’s human approach and policies regarding human resources development

■Target Management and Performance Evaluation Program

The Asset Manager runs a target management and performance evaluation program to (1) foster communication between superiors and subordinates, (2) strengthen human resource development, (3) increase motivation with respect to roles and results (performance), and (4) clarify evaluation criteria and gain better understanding of evaluations.
Employee performance evaluations are determined by evaluation of performance benchmarked against individualized targets, evaluation of skills/conduct and a compliance evaluation. The issues for improvement are shared through the performance review and follow-up interviews.
Additionally, “ESG initiatives in response to societal demands” was added as a performance evaluation criterion from the second half of FY ended Mar. 2019.

■Support for Operational Skills Development and Training

The Asset Manager has established a system for providing funding for the registration and renewal of professional qualifications and a system for providing congratulatory payments for acquiring professional qualifications to encourage the acquisition of knowledge, qualifications, and licenses. The purpose is to increase the motivation of all employees (including fixed-term employees, temporary employees, and part-time employees) with respect to self-development, improve their abilities and talents, continuously and steadily secure human resources with the specialized skills necessary to contribute to the achievement of business objectives, and assess the environmental friendliness of DHR’s properties.

Number of the Asset Manager’s employees with qualifications (66 personnel in total as of March 31, 2021)

Credential Credentialed personnel (Note)
ARES (Association for Real Estate Securitization) Certified Master 26
Real Estate Transaction Agent 58
Real Estate Appraiser 2
First-Class Architect 2
Certified Real Estate Consulting Master 5
Office Building Manager 9
TOEIC score of 700+ 8
CASBEE Accredited Professional for Buildings 2
CASBEE Accredited Professional for Real Estate 1

(Note) Includes personnel who have passed the credentialing exam but are not yet credentialed.

■New Employee Training Program

To help new employees acquire operational knowledge as quickly as possible, the Asset Manager provides training on the following topics:
●Explanation of the operations of each department ●Compliance ●Insider trading regulations ●Human rights ●System-related risks ●Email use ●Etiquette ●Disaster prevention/crisis management ●CSR ●Basic knowledge related to buildings ●Basic knowledge related to J-REIT, etc.

■Training on Operational Expertise

The Asset Manager provides training on the topics below to officers and employees (including temporary employees and part-time employees).

Program FY ended Mar. 2018 FY ended Mar. 2019 FY ended Mar. 2020 FY ended Mar. 2021
Compliance training 7 8 9 12
Sustainability training 1 1 1 1
Information security training 2 2 2 2
Training for general managers and above 0 0 1 0
Training for senior managers and group managers 0 0 1 0
Real estate market training 4 5 5 5
New hire training 5 3 4 5
Other training 3 4 4 18
Architectural training 18 0 0 19

■Human Resources Dispatched from Sponsor

DHR’s sponsor supplies the Asset Manager with human resources with a wealth of experience in areas such as real estate sales transactions, leasing, property management, finance and IT system operations. Learn more about Daiwa House Group’s human resource development philosophy and policies

■Support for Community Activities

The Asset Manager supports community co-creation activities, partly through “Community Co-Creation Leave Program” it has established to facilitate employees’ participation in activities that contribute to society, training for such activities and other such endeavors. Community co-creation activities supported by the Asset Manager include (1) preservation of the natural environment (litter pickup activities, recycling movements), (2) education and youth development (school visits, experiential learning programs, athletic coaching), (3) social welfare (elder/juvenile/disabled welfare), (4) international cooperation (overseas volunteering, foreign language interpreting, etc.), (5) volunteer training and required credentialing programs (classes in invalid care skills, sign language), (6) community outreach (neighborhood association events) and (7) disaster relief activities. Specific activities include litter cleanup activities in response to calls from public park and facility management offices, participation in a book donation project, and volunteering for daily conversational practice for elderly Chinese returnees to learn Japanese conversation and interact with others in Japanese.

A litter cleanup activity in response to a public park authority’s call for volunteers

Learn more about Daiwa House Group’s track record of community co-creation activities

■Officers and Employees’ Violations/Accidents

There were no significant violations committed by or accidents involving the Asset Manager’s officers and employees that would influence stakeholders. (Fiscal year ended March 2021)