Group Action Plan to Realize a Decarbonized Society
-- Disclosure of Initial Year Progress in FY2021
Steady start toward net zero GHG emissions by FY2050
Achieved a single fiscal year reduction of 10% (compared with FY2019) and
three-year average reduction of 8% (compared with the period from FY2018 to FY2020)

June 29, 2022
Mitsui Fudosan Co., Ltd.

Tokyo, Japan, June 29, 2022 - Mitsui Fudosan Co., Ltd., a leading global real estate company headquartered in Tokyo (hereinafter “Mitsui Fudosan”), announced today that the company has disclosed its initial year progress in FY2021 on GHG emissions based on the Group Action Plan to Realize a Decarbonized Society (“Action Plan”) *1 formulated in November 2021.

As symbolized by the and sign “&”, the Mitsui Fudosan Group has been contributing to the development of society and the economy as well as preservation of the global environment. It has done so under the principles of “Coexist in Harmony with Society,” “Link Diverse Values,” and “Achieve a Sustainable Society,” guided by the Group Vision “& EARTH.”

With regards to climate change, medium- to long-term goals for greenhouse gas (GHG) emissions (GHG emission reduction target of 40% by FY2030 and net zero by FY2050, both compared with FY2019) were set and an Action Plan was developed as a comprehensive and concrete strategy in November 2021. In the initial year of FY2021, a single fiscal year reduction of 10% (compared with FY2019) and three-year average reduction of 8% from FY2019 to FY2021 (compared with the period from FY2018 to FY2020) were achieved.

Since the Group’s GHG emissions fluctuate greatly depending on the lineup of properties completed and sold each fiscal year, we will disclose the three-year average emissions together with the single fiscal year results.

  1. Future emissions of sold properties (Scope 3-11): Single fiscal year decrease of 2.6%, three-year average decrease of 11.8%, both compared with FY2019
    Main reason: Due to low sales of large-scale properties.
  2. Emissions during construction of completed/sold properties (Scopes 3-1, 3-2): Single fiscal year decrease of 24.4%, three-year average decrease of 11.6%, both compared with FY2019
    Main reason: Due to fewer cases of completion or sales of large-scale properties.
    *Major large-scale properties completed: Tokyo Midtown Hibiya (FY2018), Otemachi One (FY2019), Miyashita Park (FY2020)
  3. Emissions during operation (Scopes 1, 2, 3-13): Single fiscal year increase of 3.3%, three-year average increase of 0.1%, both compared with FY2019
    Main reason: Due to grouping of Tokyo Dome business.

[Characteristics of Mitsui Fudosan GHG emissions]

Regarding the Group’s GHG emissions, Scopes 1 and 2 which are emitted internally both directly and indirectly account for approximately 15%, and Scope 3, emitted from supply chains, the majority, in particular emissions during construction of completed/sold properties (Scopes 3-1, 3-2), and future emissions of sold properties (Scope 3-11) account for 62% of the total. Since emissions fluctuate greatly depending on the lineup of properties completed and sold each fiscal year, figures for three-year average emissions have been calculated and disclosed together with the single fiscal year results. We will continue to actively disclose information through ESG reports, etc. from the next fiscal year onward.

Further, for the progress of various KPIs related to ESG issues in FY2021, please refer to ESG Report 2021*2 which discloses them.

*1 Group Action Plan to Realize a Decarbonized Society
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1124/
*2 ESG Report 2021
https://www.mitsuifudosan.co.jp/esg_csr/kpi_progress/(Japanese)

■Mitsui Fudosan Group’s contribution to SDGs

https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/
The Mitsui Fudosan Group aims for a society that enriches both people and the planet under the principles of coexist in harmony with society, link diverse values and achieve a sustainable society, and advances business with an awareness of the environment (E), society (S) and governance (G), thus promoting ESG management. By further accelerating its ESG management, the Group will realize Society 5.0, which the Japanese government has been advocating, and contribute significantly to achieving the SDGs. Additionally, the Group formulated the following Group guidelines related to “Realize a Decarbonized Society” and “Diversity & Inclusion Promotion” in November 2021. The Mitsui Fudosan Group will continue to work toward solving social issues through neighborhood creation.

References
Group Action Plan to Realize a Decarbonized Society
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1124/
Diversity & Inclusion Promotion Declaration and Initiative Policy
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1129_02/

*The initiatives covered in this press release are contributing to three of the UN's SDGs.

Goal 7 Affordable and Clean Energy
Goal 13 Climate Action
Goal 15 Life on Land