【H1】Sustainability

Environment Initiatives

Green Bond

Green Bond

Policy and Approach

MHR has a policy of raising investment funds for environmentally friendly projects by issuing green bonds in order to promote environmental initiatives and contribute to the realization of a sustainable society.
For the issuance of green bonds, MHR has formulated a Green Bond Framework conforming to the Green Bond Principles 2018 stipulated by the International Capital Market Association and the Green Bond Guidelines, 2017 by the Ministry of the Environment. MHR conducts management based on this framework.

Green Bond Framework

Use of Funds Procured

Funds procured of the green bonds will be allocated to acquire the assets that meet the following eligibility criteria (Eligible Green Projects), to refinance existing loans or to redeem investment corporation bonds (including green bonds) already issued, which was necessary for the acquisition of Eligible Green Projects.

Eligibility Criteria

An asset that has obtained any of the following certifications. Certifications are limited to those which have been obtained or renewed within the last 24 months as of the date of the green bond issuance or at the time of reporting or those which are scheduled to be acquired or renewed in the future.

  • Rank of A or S in CASBEE Real Estate Certification System
  • Rank of A or S in CASBEE Real Building Certification System
  • Four stars or five stars in the DBJ Green Building Certification
  • Four stars or five stars in the BELS (Building-housing Energy-efficiency Labeling System) Certification
Process for Project Evaluation and Selection

MIM’s Sustainability Committee selects projects that meet the eligibility criteria, and the President & CEO makes decisions. The Sustainability Committee is comprised of MIM’s President & CEO, all General Managers, persons in charge in departments related to ESG, among others.

Management of Funds Procured

The funds procured of the green bonds are allocated and managed by the finance department of MIM using internal electronic files. As long as there is a green bond issue balance, MIM annually confirms that the total amount of the issue balance of green bonds does not exceed the total acquisition price of the Eligible Green Projects.
If the total amount of the funds procured of the green bonds are not immediately allocated to Eligible Green Projects, MIM will specify the amount of the unallocated funds procured and, pending their allocation to Eligible Green Projects, manage the amount equal to the unallocated funds procured in cash or cash equivalents.

Reporting
1. Allocation Reporting

MHR will disclose on its website that the funds procured of the green bonds are fully allocated to Eligible Green Projects in accordance with its Green Bond Framework and that the total amount of the issue balance of green bonds does not exceed the total acquisition price of Eligible Green Projects.
As long as there is a green bond issue balance, MHR will annually report the total acquisition price of Eligible Green Projects, Green bond issuance balance and allocation amount on its website.
MHR will also disclose any material change in the situation of the allocation of green bond funds procured even after the completion of their allocation.

Total Acquisition Price of Eligible Green Projects

As of November 30, 2021                    

Property Name Rank Acquisition
Price
(mn yen)
CASBEE Real Estate
Certification System
DBJ Green Building
Certification
Roppongi Hills Mori Tower Rank S 115,380
ARK Mori Building Rank S 62,480
Koraku Mori Building Rank A 27,200
Akasaka Tameike Tower (office) Rank A 37,200
Atago Green Hills MORI Tower Rank S 29,798
ARK Hills South Tower 4 Stars 19,150
Toranomon Hills Mori Tower Rank S 56,300
Holland Hills Mori Tower Rank S 16,330
Total acquisition price 363,838
Green Bond Issuance Balance and Allocation Amount

As of November 30, 2021

Bond Issuance
Date
Maturity
Date
Issuance
Balance
Allocated
Amount
Unallocated
Amount
20th Series Unsecured
Investment Corporation Bond
November
25, 2020
November
25, 2025
3,500
million yen
3,500
million yen
21st Series Unsecured
Investment Corporation Bond
February
22, 2021
February
21, 2031
2,000
million yen
2,000
million yen
22nd Series Unsecured
Investment Corporation Bond
July
30, 2021
July
30, 2031
1,800
million yen
1,800
million yen
23rd Series Unsecured
Investment Corporation Bond
November
30, 2021
November
28, 2031
1,500
million yen
1,500
million yen
2. Impact Reporting

MHR will annually disclose the following quantitative indicators on its website as long as there is a green bond issue balance (within the scope practically possible).

  • CO2 emissions (kg/t) (Scope 1, Scope 2, primary unit)
  • Energy consumption (GJ)
Carbon Dioxide Emission Energy Usage
Scope 1
(t-CO2)
Scope 2
(t-CO2)
Intensity
(kg-CO2/m²)
Electricity
(GJ)
DHC
(GJ)
City gas
(GJ)
Year 2020 985 15,383 79.4 102,634 41,302 19,761
*

*
*
Carbon dioxide emissions are calculated based on the "Manual for Calculating and Reporting Greenhouse Gas Emissions" by the Ministry of the Environment and the Ministry of Economy,Trade and Industry.
Intensity is calculated by dividing the carbon dioxide emissions (Scope1・2) by the calculated total floor area.
The energy usage of city gas is calculated by multiplying the amount of city gas used by the unit calorific value specified in the "Manual for Calculating and Reporting Greenhouse Gas Emissions" by the Ministry of the Environment and the Ministry of Economy, Trade and Industry.

Eligibility of Green Bond Framework

MHR has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for the eligibility of green bond framework.
For details of the second-party opinion, please refer to the following website.
Second-party opinion from Sustainalytics