Environment
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- Environment
Initiatives
Opportunities in Green buildings
AEON REIT Investment Corporation proactively invests in real estate with high environmental performance and promotes activities to reduce the environmental impacts on owned properties.
In addition, to contribute to the realization of a more sustainable society, we obtain objective evaluations through external assessments, which lead to further improvements and enhancements.
Report on reduction targets for energy consumption and CO2 emissions
AEON REIT aims to reduce energy consumption intensity and CO2 emissions intensity by 1% annually on average in its entire portfolio and at individual properties as its medium-term CO2 reduction target.
Specifically, we have set a target of a 5% reduction over a five-year period from fiscal 2020 to fiscal 2024, using fiscal 2019 as the base year.
Aiming to achieve the goal of the Aeon Decarbonization Vision of reducing total emissions of CO2 and other GHGs from its stores to zero by 2040, efforts are being made to reduce energy consumption and switch to renewable energy at stores throughout the Group.
AEON REIT will continue to engage in dialogue with Aeon Group companies and work closely with them to reduce CO2 emissions.
Initiatives at AEON MALL
Many of the properties owned by AEON REIT are operated by AEON MALL, which is actively promoting 100% renewable energy-powered store operations. AEON MALL Miyakonojo Ekimae acquired in February 2023 was one of the properties that achieved this status. In addition to energy efficiency efforts, AEON MALL started the operation of its Machi no Hatsudensho (community power plants), which are self-consumption type low-voltage, decentralized solar power generation facilities, in September 2022, aiming to produce renewable energy for local consumption in cooperation with the local community. The environmentally friendly renewable energy generated by approximately 740 low-voltage solar power stations located in various regions is used in about 30 AEON MALL facilities across the country, with five of them being properties owned by AEON REIT. Plans are in place to launch the second phase of this initiative in the autumn of 2023. The number of power plants spread across different regions is set to increase to 1,390, with power supply extended to 60 malls. Please refer to the section on Machi no Hatsudensho (community power plants) on our website for details (in Japanese only).
Investing in facilities with exceptional environmental performance (Green leases)
AEON REIT invests in facilities with exceptional environmental performance in collaboration with master lessees with the aim of maintaining and enhancing the comfort and productivity of properties and implementing environmental initiatives at its owned properties.
At the end of 2022, we invested in air conditioning with inverter units at AEON MALL Sapporo-Hiraoka and AEON MALL Tomakomai to improve energy efficiency and reduce utility costs. The investment was made not only in consideration of the environment but also to reduce operating costs for the master lessees and allow us to raise rents, thus providing financial benefits all round.
We are also investing in LED lighting and asphalt using recycled materials.
Additionally, AEON Group companies are actively promoting the installation of solar power generation panels and EV charging equipment.
Sharing the cost reduction
| Solar panels | 50% |
|---|---|
| EV charging infrastructure | 86% |
| LED lighting | 100% |
Promoting acquisition of third-party certification
AEON REIT invests in and manages real estate with outstanding environmental performance and that accommodates social demands. We are actively acquiring third-party certification in order to have a solid grasp of objective assessments.
In addition to seeking to enhance the ratio of such real estate in our portfolio, we have set key performance indicators (KPIs) for the ratio of properties that have gained third-party certification with a focus on evaluation results.
We have achieved the figures stated in our medium-term targets as of July 31, 2023, and will continue striving to maintain levels exceeding these targets.
Resource recycling efforts
The Asset Management Company monitors the water usage and waste generation of our owned properties and advances related initiatives in collaboration with the master lessee and subtenants. Efforts are being made to reduce water consumption through the installation of water-saving devices and renovation accommodating the shift to water-efficient toilets.
Moreover, in our commitment to waste reduction, we have implemented a system that quantifies refuse by category and collaborated with subtenants to raise awareness and minimize waste, in addition to standard separation. We focus on recycling as much of the separated waste as possible to minimize overall waste generation.
Achieving a Decarbonized society
The AEON Group has formulated "AEON Decarbonization Vision" and has set the goal of "reducing total CO2 and other emissions from stores to zero by 2040".
Based on this vision, we will work together with our stakehoders such as master lessees and end tenants to promote initiatives aimed at realizing a decarbonized society.
Promotion of "AEON Decarbonization Vision"
In 2018, Aeon established the Aeon Decarbonization Vision with the aim of reducing total emissions of CO2 and other GHGs from its stores to zero through a three-pronged approach with regard to its stores, products and logistics, and by working hand-in-hand with customers. To achieve this goal, in 2020, Aeon set a new target of switching to renewable energy for 50% of electricity consumption at stores in Japan by fiscal 2030. As a result, we are now aiming to achieve the vision by 2040, which is 10 years ahead of the initial target year. We will leverage all the resources at our disposal within the Group to accelerate efforts towards realizing a decarbonized society.
AEON Natural Refrigerants Declaration
The AEON Group is starting to change the refrigerants used for freezer cases and refrigerator cases (cold cases) from CFC substitutes to natural refrigerants (CO2). AEON is the first Japanese retailer to start making the change. All new malls that opened from FY2015 use natural refrigerants. Pre-existing malls will also change their refrigerants one by one.
As AEON takes the lead in the use of natural refrigerants and cold cases, it will contribute to establishing engineering standards, easing regulations, and reducing initial costs in cooperation with the national government and manufacturers, which will lead to higher penetration rates and will contribute to reducing greenhouse gas emissions.
Smart AEON
We launched the Smart AEON initiative in September 2012 to implement the AEON ECO Project. In addition to building facilities that have a lower environmental impact, we have established five criteria (smart energy, electric money and use of the Internet, traffic environment, biodiversity and appearance, and disaster mitigation and local infrastructure), which we focus on in cooperation with local communities. At present, the Investment Corporation owns seven Smart AEON properties.
Biodiversity and land use
Aeon is promoting various initiatives in line with its Aeon Biodiversity Principle action guidelines to advance sustainable resource utilization while conserving biodiversity.
Tree-planting activities
The Aeon Group has been implementing the Aeon Hometown Forests Program since 1991, where a variety of trees suitable for the local environment are planted within the store premises when a new store opens, in collaboration with customers. We consider tree planting activities as a manifestation of the Aeon Basic Principles of "pursuing peace, respecting humanity, and contributing to local communities, always with the customer's point of view as its core." Efforts are undertaken alongside our customers throughout Japan and the world, local communities, and Group employees. In 2013, we achieved the milestone of planting 10 million trees, nurturing Aeon Hometown Forests in various locations worldwide. In addition, at stores with forests that have been established for around one to 30 years through our tree-planting efforts, we conduct customer-participatory wildlife surveys. By identifying the types of plants that form the forests and observing the presence and behavior of birds and insects within these forests over time, we gain insights into the richness of the forest, its ecological functions, and its biodiversity value. Over the course of two years, from 2021 to 2022, we conducted surveys at a total of 101 stores. As a result, we identified a remarkable 1,318 different species of wildlife. This confirms that Aeon Hometown Forests play a crucial role in enhancing the biodiversity value of local communities.
In fiscal 2022, AEON Reit Management also participated in a tree-planting event hosted by the Aeon Environmental Foundation at the Ishinomaki Minamihama Tsunami Memorial Park in Miyagi Prefecture, where AEON MALL Ishinomaki is located. We will continue to actively pursue these initiatives across the Group.
Initiatives at our properties
Aeon is committed to eco-friendly store development, which involves conducting biodiversity assessments and devising strategies for reducing environmental impact during establishment. This approach aims to minimize our stores' impact on the surrounding environment and ecosystems, while also focusing on ecosystem conservation and creation. As part of these efforts, AEON MALL has obtained Association for Business Innovation in Harmony with Nature and Community (ABINC) certification since fiscal 2013. This certification objectively evaluates the status of biodiversity conservation at our stores.
In addition, some malls have wall afforestation. Wall afforestation does not only improve the landscape, but also improves the insulation of the building, suppressing the rise in temperature inside during summer, and reducing the amount of energy used for air conditioning. Lush greenery has also been planted throughout the area around each mall, creating a harmonious relationship with nature and a relaxing space.
Environmental considerations in real estate investment
In recognition of the impact of our business activities on the environment, when acquiring properties, AEON REIT conducts assessments to identify environmental risk factors associated with the land in question, with a focus on contributing to environmental protection.
Property due diligence
At the time of property acquisition, we consider environmental risk factors related to the land in question to inform our decision-making. As a general rule, we select properties for investment that do not have issues related to the use and management of hazardous substances as identified in the building research report (engineering report).
Greenfield development (Addressing undeveloped sites)
The Aeon Group seeks to understand the impact of its business activities on ecosystems and strives to create facilities that consider a lush, green environment. The Group also actively engages in ecosystem conservation efforts around its properties through activities such as tree planting.
AEON REIT and AEON Reit Management collaborate with Group companies in promoting such endeavors and participate in tree planting in an effort to conserve natural environments around our properties. We have also set acquisition targets for Green Building certification for our owned properties and are promoting a shift to green buildings.
Brownfield redevelopment (Soil contamination risk management)
AEON REIT conducts soil contamination checks on the land subject to transaction at the time of property acquisition. A historical land-use survey is undertaken based on an evaluation report by a third-party investigation company regarding the potential for soil contamination. Based on the results of the survey, when there is a possibility of soil contamination on the property, such as former factory sites, we conduct soil sampling assessments. After confirming that appropriate measures have been taken, such as soil improvement or land covering with asphalt or concrete, to ensure that the land is free from health hazards, we proceed with the property acquisition. At the time of acquisition, for properties where the possibility of soil contamination could not be ruled out, we continue to monitor the contamination status periodically through a property management company after acquisition.
Cooperation with stakeholders
The Investment Corporation aims to create malls with less environmental impact in cooperation with sponsors, master lessees, end tenants and local residents.
Green procurement
We promote green procurement to encourage ESG initiatives in the entire supply chain for real estate management.
Criteria for selection of property management companies and their evaluation
We have established criteria for the selection of property management companies that manage our properties and evaluate all property management companies once a year, in principle. We evaluate their ability to manage buildings and build and renovate buildings. We also take their environmental consideration, industrial safety and health for employees, and their understanding of and compliance with the Asset Management Company's sustainability policy into consideration.
We cooperate with them to make improvements. We ask them to make proposals about reducing energy and the environmental impact.
Holding events related to sustainability
We hold events related to sustainability at certain properties to raise customers' and communities' awareness of the environment.