Mitsui Fudosan

Mitsui Fudosan only discloses emissions and floor area using the same boundaries for 2021. To demonstrate transition, the company should disclose at least three years of historic emissions data. Additionally, the company should disclose its emissions and floor area for each of its property management and construction segments separately. Without this information, it is not currently possible to provide a meaningful assessment of the company’s future emissions intensity trend or its alignment with its 1.5°C carbon budget. 

Mitsui Fudosan has developed a low-carbon transition plan that applies to both its construction and property management business segments. While the plan is informed by climate scenario analysis and the implications of a 1.5°C scenario, it only considers the company’s housing, office and retail properties business. Mitsui Fudosan can improve should expand its scenario analysis to its whole portfolio and include additional scenarios and parameters. Mitsui Fudosan has developed a Sustainably Linked Loan Framework and Green Finance Framework to finance its transition to low-carbon buildings, it can also build on this with a clear forward looking financial plan.

Mitsui Fudosan has implemented a Sustainable Procurement Standard requiring suppliers to reduce their energy consumption and GHG emissions by improving energy efficiency and using renewable energy. The company is also developing tools for calculating emissions during construction and is developing design guidelines to reduce emissions during construction. Though the Standards apply to all, only six suppliers filled out a questionnaire designed to raise awareness of the policy. To improve its supplier engagement, the company should create quantified targets and reporting requirements for all suppliers. It should then establish a process to engage with suppliers that don’t meet its requirements.

The company has set a target to reach net-zero by 2050 and an interim target to achieve a 40% reduction in the Group’s scope 1, 2 and 3 emissions by 2030, compared to 2019. Additionally, Mitsui Fudosan has a Science Based Targets initiative (SBTi)-validated target to reduce its scope 1 and 2 emissions by 46% by 2030 (compared to 2019).

The company aims to achieve Zero Emission Housing standards for all its mid, hi-rise and exclusive housing units and 50% in its rental units by 2030. The company plans to realise self-sufficiency in building materials by using owned forest resources. It also plans to secure stable renewable resources by creating solar capacity of 380 million kWh/year by 2030 (an increase from 80 million kWh/year in 2021).

To promote the transition plan the company has executed USD 720 million in sustainably linked loans to date. Within its construction activities, the company has adopted a manual for calculating GHG emissions during construction and actively uses owned forests for high-rise wooden buildings and houses.

Mitsui Fudosan has developed a solar project (80 million kWh/year) and completed strategic renovation of properties. The company provides what it describes as ‘green power’ options to investors, tenants and buyers and has sought to increase energy-saving measures such as optimising air conditioning loads and adopting LEDs.

Mitsui Fudosan is working to transition to a low-carbon economy. It has set targets and is investing in measures to help it reach its goals. However, the company’s incomplete emissions intensity disclosure means its progress is not quantifiable.

No evidence was found that Mitsui Fudosan commits to social dialogue or engages with the categories of stakeholders t 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 that the company undertakes low-carbon transition planning to mitigate the social impacts of the 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.

No public commitment was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found that the company actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found that the company assesses employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. 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 Mitsui Fudosan 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.

Mitsui Fudosan commits to respecting human rights. However, no evidence was found the company also supports the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

No evidence that Mitsui Fudosan has policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

Mitsui Fudosan commits to protecting customer data; however, no evidence was found. Furthermore, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company does not disclose its global tax strategy, and no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption. However, no evidence was found that the company has a lobbying and political engagement policy. Furthermore, no relevant disclosure was found of the company’s expenditure on lobbying activities.