【H1】Sustainability

Environment Initiatives

Green Finance

Green Finance

Policy and Approach

MHR has a policy of raising investment funds for environmentally friendly projects through green finance in order to contribute to the realization of a sustainable society and maximize unitholders' value in the medium to long term.
For the raising funds through green finance, MHR has formulated a Green Finance Framework conforming to the Green Bond Principles and other principles and guidelines. MHR conducts management based on this framework.

Green Finance Framework

Use of Funds Procured

Funds procured of the green finance 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.

Eligibility Criteria

Any assets with the following valid certifications that have already been obtained or updated or are planned to be obtained or updated in the future, at green financing or at reporting:

  • A or S Rank by CASBEE for Real Estate
  • A or S Rank by CASBEE for Buildings
  • Four or Five stars by DBJ Green Building
  • Four or Five stars by BELS
  • Gold or Platinum by LEED
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 as Chairperson, Managing Director, all General Managers, and some members of planning department. 

Management of Funds Procured

  • MIM's Financial Department appropriates and manages the Funds Procured on its internal electronic files. 
  • When the total amount of the funds procured from green finance are not immediately allocated to Eligible Green Projects, the unappropriated amount will be specified and the equivalent amount will be managed in cash or cash equivalents until it is allocated to Eligible Green Projects.
  • Unappropriated funds temporarily on hand will be managed as an asset under portfolio management, if Eligible Green Projects where the proceeds were supposed to be invested are sold, fall short of Eligible Green Projects requirements, etc. after all the proceeds are allocated. Portfolio management is a method of managing the balance of the green finance not to exceed Green Eligible Debt, which are calculated by multiplying the sum of the acquisition prices of Eligible Green Projects by the ratio of interest-bearing debt to the total assets (LTV) at the end of the preceding fiscal year. Should it exceed green debts, MIM will manage the amount equivalent to the unappropriated funds in cash or cash equivalents.
  •  

As of November 30, 2023
Total Acquisition Price of 
 Eligible Green Projects
LTV 
(book value basis)
Green Eligible
Debt
Balance of
Green Finance
363,838
 million yen
46.4% 168,821
 million yen
17,000 
million yen


Reporting
1. Allocation Reporting

  • As long as the green finance balance exists, total acquisition price of Eligible Green Projects, the appropriation amount, and the green finance balance will be annually disclosed on MHR's website.
  • Even after the appropriation is completed, if there is a material change in the appropriation status, that will be disclosed on MHR's website.
  •  

Total Acquisition Price of Eligible Green Projects

As of November 30, 2023                    

Property
No.
 Property Name Rank Acquisition
Price
(mn yen)
CASBEE Real Estate
Certification System
DBJ Green Building
Certification
     O-0
 Roppongi Hills Mori Tower Rank S 115,380
     O-1
 ARK Mori Building Rank S 62,480
     O-4
 Koraku Mori Building Rank S 27,200
     O-6
 Akasaka Tameike Tower (office) Rank A 37,200
     O-7
 Atago Green Hills MORI Tower Rank S 29,798
     O-8
 ARK Hills South Tower 4 Stars 19,150
     O-9
 Toranomon Hills Mori Tower Rank S 56,300
    O-10
 Holland Hills Mori Tower Rank S 16,330
Total acquisition price 363,838
Green Finance Balance and Allocation Amount
As of November 30, 2023
Bond/Lender Amount
Allocated
 Amount
Unallocated
 Amount
Issuance/
Drawdown
 Date
Maturity/
Repayment
Date
Target 
property
(Property No.) 
20th Series Unsecured
Investment Corporation Bond
(Green Bond)
3,500 
million yen
3,500 
million yen

November
25, 2020
November
25, 2025
 O-1
21st Series Unsecured
Investment Corporation Bond
(Green Bond)
2,000 
million yen
2,000 
million yen

February 
22, 2021
February 
21, 2031
 O-1
22nd Series Unsecured
Investment Corporation Bond
(Green Bond)
1,800 
million yen
1,800 
million yen

July 
30, 2021
July 
30, 2031
 O-9
23rd Series Unsecured
Investment Corporation Bond
(Green Bond)
1,500 
million yen
1,500 
million yen

November
30, 2021
November
28, 2031
 O-1
Sumitomo Mitsui Trust Bank, Limited
 (Green Loan)
 2,400 
million yen
 2,400 
million yen
 August
31, 2023
 August
31, 2028
O-9
O-10
24th Series Unsecured
Investment Corporation Bond
 (Green Bond)
 3,300 
million yen
  3,300 
million yen
 November
29, 2023
November
27, 2026
O-1
O-4
Sumitomo Mitsui Trust Bank, Limited
 (Green Loan)
 500 
million yen
 500 
million yen
 November
30, 2023
 November
30, 2028
O-1
O-4
Mizuho Bank, Ltd.
 (Green Loan)
 500 
million yen
500 
million yen
November
30, 2023
November
30, 2032
O-1
O-4
SBI Shinsei Bank, Limited
 (Green Loan)
 1,500
million yen
  1,500
million yen
 November
30, 2023
November
30, 2032
O-1
O-4
      Total 17,000 
million yen 
17,000 
million yen 
 


2. Impact Reporting

To the extent that the green finance balance exists, the following indicators will be disclosed annually on MHR's website:(To the extent possible under practical operations in all cases)

  • CO2 emissions (t-CO2) (Scope 1, Scope 2,Scope 3, and intensity )
  • Energy consumption (GJ)
  • Carbon Dioxide Emission Energy Usage (GJ)
    Scope 1
    (t-CO2)
    Scope 2
    (t-CO2)
    Scope 3
    (t-CO2)
    Intensity
    (kg-CO2/m²)
    Electricity

     (Ref.)Renewable energy
    electricity
    DHC

    City gas

    FY 2020 985 15,383 9,234  79.4 102,634 ー         41,302 19,761
    FY 2021 918 15,025 9,911  121.9 102,502 ー         40,318 18,423
     FY 2022     979   11,418 9,750  104.4 104,371 32,853  41,039 19,633
    *

    *
    *
    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・3) 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.

    Evaluation by External Organization

    MHR acquired Green1 (F), the highest rating in “Green Finance Framework Evaluation” from Japan Credit Rating Agency, Ltd. (JCR) as a third-party evaluation of the eligibility of the framework.
    For details of “Green Finance Framework Evaluation ”,please refer to the following.
    “Green Finance Framework Evaluation” from JCR