Sustainability is MCUBS MidCity’s Aim

As a REIT focused on office properties in the three major metropolitan areas, MCUBS MidCity shares the same concept about sustainability with Mitsubishi Corp. -UBS Realty Inc. (MCUBS) that outsources its asset management, and is forging ahead with initiatives.
MCUBS MidCity conducts its investment and operational activities in accordance with "Responsible Property Investment Policy" a policy set out by the asset manager.

MCUBS recognized the importance of sustainability at an early stage and as an asset manager, promoted ESG activities.
Then, as a response to the “sustainable development goals” (SDGs) promoted by the United Nations as a new set of common global goals, ESG materiality (key issue) and the SDGs that are closely related to them were adopted, and we will continue to endeavor to bring about a sustainable society through reduction of environmental impact, creation of social value, and sound asset management for all stakeholders.

Closely Related SDGs to ESG Materiality of MC-UBS Group

MCUBS MidCity has adopted MCUBS’s policy and worked together with the MC-UBS Group, through the Sustainability Committee to study the sustainability vision and goals and ways of working towards making sustainability a reality. It is thought that, with increasing interest in ESG, the concept of sustainability will become more precise through the identification and visualization of materiality related to sustainability issues when conducting dialogue on the subject or cooperating in initiatives with stakeholders.

Level of Importance ★★★

This table can be scrolled sideways.

Most important
ESG materiality
Target KPI Risk Opportunity Closely related
SDGs
Response to
sustainability
certifications
Improving proportion
of environmental
certifications
Setting KPI, the proportion of the properties acquiring the environmental certification of the total portfolio
  • Decline in assessment among tenants and investors who base their assessments on sustainability
  • Improve environmental performance of properties
  • Expand the range of investors
Improving
sustainability
activities through
participation in
GRESB and other
external evaluation
institutions
GRESB
Acquiring “5 Star”

MSCI
Acquiring “AA” rank
Building resilience Implementing
disaster prevention
measures
BCP expansion
  • Increase in expenses for recovery, compensation, etc., after natural disasters
  • Increase in property competitiveness
Response to climate
change
Reduction in CO2
emission
Recuction in GHG by 1% or more per year
  • Drop in tenant sales & increase in property damages due to physical impact of climate change
  • Decline in assessment by tenants & investors
  • Cost reduction with efficient energy use
Energy efficiency Improvement in
energy
consumption
Reduction of the amount used of electricity and fuel for reduction in GHG by 1% or more per year
  • Increase in energy-related expenses
  • Reinforcement of environmental regulations
  • Cost reduction with efficient energy use
Introduction of
renewable energy
use
Purchasing Green power at the time of contract renewal when there is economic rationality
Ensuring of health
and well-being of
and convenience
for people (tenants)
Improvement in
tenant employee
space
Improving communication space and refresh space at the time of renewal
  • Decline in property competitiveness
  • Manpower outflow due to declining work conditions
  • Improved sustainability assessment by assessment bodies and investors
  • Improvement in employee satisfaction and tenant assessment & satisfaction
CASBEE-WO certification Considering additional acquisition of CASBEE-WO certification

Level of Importance ★★

This table can be scrolled sideways.

Important
ESG materiality
Target KPI Risk Opportunity Closely related
SDGs
Efficient water
use
Reduction in
water
consumption
Reduction of the amount used of water for reduction in GHG by 1% or more per year
  • Impact of shortage or quality decline of water resources on surrounding areas
  • Rise in cost with increase in water consumption volume
  • Cost reduction with reduction in water consumption
Waste disposal Reduction in
wastes
Monitoring the amount of waste and disclosing the management status on the Web at properties with multiple tenants that it directly manages
  • Reputation risk caused by increase in wastes
  • Increase in processing cost
  • Processing cost reduction with reduction in wastes
Partnership with
tenants
Introduction of
green lease
Considering additional scheme of green lease
  • Greater tenant burden regarding safety and the environment
  • Decline in tenant satisfaction
  • Devolution into property attractive to the tenant
  • Generation of stable revenues
Execution of
tenant
satisfaction
survey
Improving tenant satisfaction by conducting the tenant satisfaction survey once a year
Collaboration
with local
communities
Providing land
to community
events
・Cooperating for UNICEF fundraising and campaign for United Nations Refugee Support Activities

・Planning uchimizu (watering) event and flower event and holding them in each property
  • Degradation of the environment surrounding the real asset
  • Decline in reputation in the neighboring area
  • Revitalization of neighboring areas
  • Improvement of corporate image

Questions concerning MC-UBS sustainability

Mitsubishi Corp.-UBS Realty Inc.

URL :https://www.mc-ubs.com/english/