Environmental Initiatives

Target on energy consumption etc.,

The Asset Management Company has set long-term goals concerning reduction of the amount of energy used and other efforts for consumption in common areas of residential properties as shown below, and promotes initiatives leading to reduction of environmental burden while continuously monitoring its efforts..

(Residential Facility)

Items	Reduction targets
Energy consumption	5 year（FY2019 through FY2023）/5% total reduction in intensity（Annual average of 1%）
GHG emissions	5 year（FY2019 through FY2023）/5% total reduction in intensity（Annual average of 1%）
Water use	5 year（FY2019 through FY2023）/To prevent increase in intensity

※Healthcare facilities will avoid increasing energy consumption and water usage over 5 years (FY2019-2023)/intensity basis

■Environmental Performance
（Residential）

Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	FY 2019
Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	Actual	Y on Y performance	% change (vs FY2018)	% Change (vs FY 2018) （Comparison of the same condition）
The number of Properties	Properties	106	107	112	-	-	105
Energy Consumption	Total Usage (MWh)	4,994	4,805	5,018	4.4%	4.4%	-
Energy Consumption	Intensity (MWh/㎡)	0.083	0.077	0.070	-9.5%	-9.5%	-4.6%
GHG emissions	Total Usage (MWh)	2,557	2,460	2,449	-0.5%	-0.5%	-
GHG emissions	Intensity (MWh/㎡)	0.043	0.040	0.034	-13.8%	-13.8%	-9.1%
Water use	Total Usage (MWh)	3,986	3,562	3,255	-8.6%	-8.6%	-
Water use	Intensity (MWh/㎡)	0.069	0.060	0.047	-21.3%	-21.3%	-8.7%

（Halthcare）

Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	FY 2019
Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	Actual	Y on Y performance	% change (vs FY2018)	% Change (vs FY 2018) （Comparison of the same condition）
The number of Properties	Properties	13	13	20	-	-	12
Energy Consumption	Total Usage (MWh)	12,438	13,046	25,948	98.9%	98.9%	-
Energy Consumption	Intensity (MWh/㎡)	0.125	0.128	0.175	36.7%	36.7%	3.6%
GHG emissions	Total Usage (MWh)	6,368	6,680	12,662	89.6%	89.6%	-
GHG emissions	Intensity (MWh/㎡)	0.064	0.066	0.086	30.3%	30.3%	-1.3%
Water use	Total Usage (MWh)	203,576	185,566	189,554	2.1%	2.1%	-
Water use	Intensity (MWh/㎡)	1.92	1.82	1.28	-29.8%	-29.8%	6.3%

（Residential+Healthcare）

Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	FY 2019
Items	Unit	FY 2017 Actual	FY 2018 Actual (Baseline year)	Actual	Y on Y performance	% change (vs FY2018)	% Change (vs FY 2018) （Comparison of the same condition）
The number of Properties	Properties	119	120	132	-	-	117
Energy Consumption	Total Usage (MWh)	17,432	17,851	30,965	73.5%	73.5%	-
Energy Consumption	Intensity (MWh/㎡)	0.109	0.109	0.141	29.4%	29.4%	1.3%
GHG emissions	Total Usage (MWh)	8,925	9,140	15,111	65.3%	65.3%	-
GHG emissions	Intensity (MWh/㎡)	0.056	0.041	0.069	68.7%	68.7%	-3.4%
Water use	Total Usage (MWh)	207,562	189,128	192,809	1.9%	1.9%	-
Water use	Intensity (MWh/㎡)	1.27	1.17	0.89	-24.3%	-24.3%	0.3%

(Note 1) The fiscal year starts on April and end on March of the following year.
(Note 2) "Residential Facilities" indicates actual figures for common areas.
(Note 3) "Comparison of the same conditions" compares the same properties owned from the baseline year to the target year. The amount of electricity related to antennas and other incidental equipment installed after the acquisition of the property is not taken into account.
(Note 4)" CO2 emissions figures" are calculated by the Asset Management Company using the substitute value for emissions coefficient for each electric power supplier announced by the Ministry of the Environment.

Example of environmental initiatives

■Installation of LED Lights in Common Area

KDR is making various efforts to conserve energy from the viewpoint of environmental consideration and cost reduction. One of our efforts is to reduce the cost of replacing light bulbs and electricity consumption by changing the lighting fixtures in common areas to LEDs as appropriate.

	1H 2015	2H 2015 1H 2016	2H 2016 1H 2017	2H 2017 1H 2018	2H 2018 1H 2019	2H 2019	Total
Property (props)	4	8	14	10	10	13	59
Expense (mln yen)	9.3	21.2	22.4	11.0	14.6	17.1	95.8
Annual reduction (mln yen)	0.9	7.0	7.7	3.5	3.2	3.4	26.0

■Green Lease　
A green lease is where building owners and tenants collaborate to reach voluntary agreements with regards to energy saving and other measures to reduce environmental burdens of real estate as well as improvements of indoor environments through contracts, memorandums of understanding and such and implement the contents of these agreements.

		Based on the green lease at the KDR-owned healthcare facility “TEN”, KDR conducted LED lighting implementation work for energy-saving at the KDR’s expense. A certain part of the tenant’s benefits of reduction in electricity charges for the lighting equipment and bulb replacement costs resulting from such renovations are paid to KDR as green lease fees.

■Installation of share cycle station

KDR provides a part of the property as a rental cycle base for the purpose of providing services to residents and surrounding residents and reducing environmental impact.

Installation: 5 props

■Remote Surveillance of Road Heating

ロードヒーティングの遠隔監視

We have installed remote surveillance system for road heating (snow melting equipment) at our three properties located in Sapporo. The installations have results in significant reduction in the fuel costs melting snow.

■Installing Secure Lockers for Deliveries

宅配ボックスの設置

Secure lockers for parcels eliminate the need for delivery companies to return to a property when a resident is not home the first time. This reduces transportation CO2 emissions and wasted working time for drivers.

Installation:119 lockers
Installation rate：96％

■Outlets for recharging electric cars

宅配ボックスの設置

Parking areas have outlets so that residents can easily recharge electric cars.

Installation: 3 props

■Posters for conservation of energy and water

省エネ推進ポスターの掲示

Putting up posters in common areas to urge tenants to consider the environment through conservation of energy and water