Mitsubishi Estate

Mitsubishi Estate has targets to reduce its scope 1 and 2 absolute emissions by 70% and to reduce its scope 3 absolute emissions by 50% by 2030 compared to 2019. It also has a net-zero target to reduce its scope 1, 2 and 3 absolute emissions by 90% by 2049 compared to 2019. Moreover, the SBTi has validated that these targets are consistent with a 1.5°C scenario. Mitsubishi Estate is on track to meet its absolute emissions reduction targets for 2030 and 2049.

The company only reports the emissions and floor area of the services buildings it managed between 2018 and 2021. The data shows a decrease in its service buildings’ in-use emissions intensity of about 19% annually over this period. The company does not report any data for its residential property management activities. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance. Mitsubishi Estate should report in-use emissions intensities for all its building activities for at least the last three years and outline its commitments to renovate buildings in its portfolio.

Mitsubishi Estate does not disclose the expected in-use emissions intensity data, or sufficient floor area and in-use absolute emissions data, for the buildings it developed between 2016 and 2021. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance. In addition, Mitsubishi Estate does not quantify its commitments to perform renovations for clients to significantly reduce the emissions intensity of existing buildings.

Mitsubishi Estate aims to develop a biomass power plant with the potential to power 4,800 households. It also plans to promote the use of renewable power and the installation of solar panels at its logistics facilities. The company intends to commercialise a new hydrogen technology developed by Clean Planet Inc., to ensure that all new condominiums for sale or lease meet the Net Zero Energy Housing Mansion (ZEH-M) standard by 2025-2026. It is also engaging in the development of hybrid hotels that use wood for the structure. However, there is a lack of detail on the profitability, current size, growth potential and deployment schedule of these business models.

Mitsubishi Estate has set SBTi-validated targets to reduce its scope 1 and 2 absolute emissions by 70% and to reduce its scope 3 absolute emissions by 50% by 2030 compared to 2019. Along with this, the company has set a net-zero target to reduce its scope 1, 2 and 3 absolute emissions by 90% by 2049 compared to 2019.

Mitsubishi Estate has published a low-carbon transition plan which uses climate scenario analysis to investigate transitional and physical risks until 2050. Furthermore, in addition to its 1.5°C aligned and SBTi-validated targets, the company has an RE100 target to achieve 100% renewable electricity by 2050.

Mitsubishi Estate will utilise USD 182 million in green bonds maturing in 2023. The company is engaging in low-carbon and renewable energy business activities, using low-carbon building materials, and aiming for all its new condominiums to meet the net zero oriented ZEH-M standard.

The company has disclosed insufficient data between 2016 and 2021 to provide a meaningful assessment of the historical emissions intensity trend for all its activities. Data reported for the company’s service buildings showed that the emissions intensity for these properties decreased between 2018 and 2021.

Mitsubishi Estate acknowledges climate change as an issue, has a transition plan which is supported by USD 182 million in green bonds and has set targets aligned with its 1.5°C pathway. But it does not publicly report sufficient data to assess its building-related activities’ performance.

No evidence was found of Mitsubishi Estate’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

Mitsubishi Estate discloses the measures it takes to ensure that it creates jobs which embed equality of opportunity for women and vulnerable groups. In particular, it undertakes targeted hiring of women and has a centre to support employment of people with disabilities. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Mitsubishi Estate identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Mitsubishi Estate commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. The company describes its process for assessing its human rights risks and discloses what it considers to be its salient human rights issues. However, it can strengthen its disclosure on its human rights due diligence process and human rights grievance mechanisms for workers and affected stakeholders.

Mitsubishi Estate expects its business relationships to respect the health and safety of their workers and discloses some workforce diversity information. The company can, however, strengthen its disclosure on these and other decent work practices.

Mitsubishi Estate has a policy statement prohibiting bribery and corruption, and it describes its process to identify bribery and corruption risks. The company can, however, strengthen its disclosure and commitments on this topic and other key ethical business topics, including personal data protection, tax, and lobbying and political engagement.