KDXR was the first J-REIT to participate in the "GRESB Real Estate Assessment" in 2011, an annual benchmarking assessment for real estate companies and funds. Since then, we have been awarded "Green Star" for 12 consecutive years by achieving high performance both in "Management Component," which evaluates policies and organizational structures for ESG promotion, and the "Performance Component," which assesses environmental performance and tenant engagement at properties owned.
In the 2023 GRESB Real Estate Assessment, KDXR earned the highest evaluation of “5 Stars” for second consecutive year. Moreover, KDXR have received "A" rating, the highest level of ESG-related information disclosure.

The Asset Management Company expressed its support for the recommendations made by the Task Force on Climate-related Financial Disclosures (“TCFD”) and also joined the TCFD Consortium, a group of domestic companies that support TCFD recommendations in October 2021.
TCFD is an international initiative established by the Financial Stability Board (“FSB”) at the request of the G20 for the purpose of discussing the disclosures of climate-related financial information and the responses by financial institutions. TCFD publishes recommendations for companies to disclose their governance, strategy, risk management, and metrics and targets for climate-related risk and opportunities.

Moreover, TCFD Consortium is a group of companies and financial institutions that support the TCFD recommendations. Consortium was established with a view to further discussion on effective corporate disclosures of climate-related information and initiatives to link disclosed information to appropriate investment decisions on the part of financial institutions and other organizations.
KDXR and the Asset Management Company will work to expand information disclosure based on TCFD and continue to actively promote ESG (Environment, Social and Governance) initiatives based on “Sustainability Policies” established by the Asset Management Company.

KDXR has obtained Science Based Targets (SBT) certification for GHG emission reduction targets.
Science Based Targets are GHG emission reduction targets certified as science-based by the Science Based Targets initiative (“SBTi”), an international joint initiative established in 2015 by CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). In order to acquire SBT Certification, the targets must be consistent with the levels required by the international framework, the Paris Agreement (to reduce the increase in global average temperature due to climate change to a maximum of less than 2 degrees Celsius above the level during the Industrial Revolution).

For details on our GHG emission reduction targets, please refer to Environmental Initiatives.

PRI comprises an international network of investor signatories that works to realize the Six Principles established for the financial industry in 2006 under the leadership of then United Nations Secretary-General, Kofi Annan.
PRI encourages the incorporation of ESG issues (Environment, Social and Governance) into investment decision-making processes, with the aim to help companies enhance long-term investment performance and better fulfill their fiduciary duty.
Kenedix, Inc. the parent company of the Asset Management Company, has signed to the PRI and is ambitious to become a real estate asset management company that commit responsible investment through the practice of PRI.

PFA21 (Principles for Financial Action for the 21st Century) has been established by drafting committee with participation of various financial institutions in October 2011 as the action guidelines of financial institutions who seek to fulfill their responsibilities and roles required for the formation of a sustainable society. Signing financial institutions will implement initiatives based on the seven principles as much as possible based on their own businesses. It has been positioned as a starting point to collaborate without being restricted by business categories, scale or region.
Kenedix, Inc. and the Asset Management Company have signed to the PFA21 and are ambitious to become real estate asset management companies that commit to responsible investment through the practice of the PFA21.

Through the implementation of various initiatives related to health management, the Asset Management Company has been certified as a “Health & Productivity Management Outstanding Organization 2023 (large enterprise category)” by Nippon Kenko Kaigi, which recognizes organizations that practice excellent health & productivity management.
The certified health & productivity management outstanding organizations recognition program is a program that recognizes large corporations, small and medium-sized companies, and other corporations that practice particularly excellent health management as "organizations that think about employee health management from a managerial perspective and engage in it strategically," based on initiatives that meet local health issues and health promotion initiatives promoted by Nippon Kenko Kaigi.