Basic policy | Kenedix Residential NEXT Investment Corporation

Basic policies

Basic policies / Sustainability committee

The Investment Corporation and the Asset Management Company aim to contribute to the sustainable development of society (sustainability) by addressing environmental and social issues through investment and management of real estate that takes the environment, society and governance (ESG) into consideration. The environment surrounding the real estate in which the Investment Corporation invests and manages changes from day to day including changes in housing conditions due to diversification of lifestyles, rapid aging of the population, and increased demand for accommodations by foreigners due to the shift to major industrialization of tourism. As a result of changes in natural environments and diversification of society as well as those changes, we recognize that the challenges to be tackled are complex and diverse. The Investment Corporation and the Asset Management Company have established a “Sustainability Policy” and are promoting Initiatives for Sustainability with the aim of solving as many issues as possible and contributing to the realization of sustainable societies. In addition, we have separately established an “Environmental Policy” as a policy for dealing with environmental issues, and we are focusing on our efforts on real estate investment and management that takes the environment into consideration. We also aim to contribute to the achievement of SDGs (Sustainable Development Goals) by sharing the Kenedix Group's Materiality (Material issues) established by Kenedix, the parent company of the Asset Management Company. In promoting Initiatives for sustainability, the Investment Corporation will place importance on dialogue with investors as well as various stakeholders related to the Investment Corporation and the Asset Management Company through management properties and strive to disclose appropriate information.

サスティナビリティに関する方針

Sustainability Policies

The Asset Management Company has positioned initiatives on ESG (Environmental, Social and Governance) awareness as an important business management issue. To promote initiatives on ESG, the Asset Management Company has established the following Sustainability Policies.

1. Contribution to sustainable environment
We make positive contribution to sustainability by reducing the negative impact to the environment through continuously reducing energy and water consumption, CO2 emission and waste; and by eliminating and managing of hazardous materials to carry out the social mission of improving the environmental performance of properties we manage.

2. Commitment to diverse society
We contribute to realize the diverse society, considering the social impact of our properties. We endeavor to deliver built environment where safety, health and wellbeing and diversity of tenants and local community are secured.

3. Stakeholder engagement
We manage our properties as a responsible real estate asset management company by stressing the importance of engagement with our stakeholders such as investors, tenants, business partners, local communities and property management companies.

4. Attractive working environment
We aim to deliver attractive working environment by implementing measures to promote employees' health & wellbeing and diversity & equal opportunites. We develop capabilities of employees to help them achieve the best performance by providing various educational opportunities such as trainings.

5. Responsible organization
We ensure compliance and sound risk management in our entire business activities. We are committed to responsible property investment by a responsible organization by aligning with global ESG initiatives and proactively disclosing ESG information.

Established on September 5, 2018
Kenedix Real Estate Fund Management, Inc.

Environmental Policies

We at Kenedix Residential Next Investment Corporation and Kenedix Real Estate Fund Management, Inc. practice environmental awareness in conducting investment management by establishing the environmental policies stated below and proactively utilize environmental certification and assessment systems conducted by external assessment organizations.

1.Compliance with Environmental Laws and Regulations

We promote investment management with environmental awareness, in compliance with environmental laws and regulations.

2.Promotion of Energy Conservation Measures

Recognizing the importance of resources and energy, we promote systematic endeavors for energy conservation measures at the real estate properties we manage.

3.Reduction of Environmental Burdens

Intending to reduce the burdens on the environment, we endeavor to take measures for reducing CO2 emissions and wastes as well as promoting recycling, etc.
We also fully exercise caution in handling hazardous substances and environmental pollutants.

4.Disclosure of Environmental Information

We endeavor to disclose necessary information, such as our environmental policies and the status of our environmental initiatives, to a variety of stakeholders including unitholders, tenants and business partners.

5.Environmental Education and Enlightenment

We endeavor to enhance environmental awareness of our officers and employees by internally implementing environmental education and enlightenment programs.

Established on January 26, 2016
Kenedix Residential Investment Corporation
Kenedix Real Estate Fund Management, Inc.

Kenedix Group Materiality (Material issues)

The Investment Corporation and the Asset Management Company share the materials (Material issues) set by Kenedix, the parent company of the Asset Management Company. Kenedix Group will make commitment to find solutions to these issues both in business and society by making initiatives that reflect the opportunities and risks associated with each issue. Furthermore, we intend to contribute to achieving the SDGs by carrying measures for our materiality.

Sustainability committee

The initiatives for sustainability are promoted under the leadership of the Sustainability Committee established in the Asset Management Company.
The Sustainability Committee consists of the Head of Residential REIT Department as the chairperson, and the Heads of each Division in Residential REIT Department as members. The Committee holds meetings every three months in principle to discuss policies, targets, approaches on sustainability issues and monitors the progress. What is discussed at the Committee is reported to the Asset Management Committee of the Asset Management Company, as well as KDR’s Board of Directors.

ケネディクスグループにおけるサステナビリティへの取組み

Sustainability initiatives of the Kenedix Group

For details on the sustainability initiative of Kenedix group, please refer to the Kenedix website and the asset management company website.