Touchstone Capital Management (“TSCM”) has a fiduciary duty to constantly fulfil our obligations in the interest of our investors as an asset manager.
In fulfilling our role based on trust and confidence of investors, TSCM recognizes that consideration for the Environment(E), Society(S), Governance(G)(hereinafter collectively referred to as “ESG”) and Safety are critical factors in increasing the value of assets under management.
Through our business operations that consider ESG and Safety centered on the following items, TSCM aims to improve medium-to-long-term value for our investors, the Environment and all stakeholders surrounding us, and contribute to the development of a sustainable society.
1.TSCM will analyze and assess the impact and risks of Environmental, Social and Safety issues/problems when making any investment and asset management decision.
2.TSCM will propose solutions or improvements that contribute to the promotion of sustainability regarding Environment, Society and Safety in order to contribute to increasing the investment value of assets under management and their portfolios.
3.TSCM will strive to reduce greenhouse gas emissions by embracing environmentally conscious technologies and systems, etc.
4.TSCM will support investors in resolving environmental issues by emphasizing the creation and improvement of environmental value created through the environmental load reduction and environmental conservation.
5.In order to implement the Policy, TSCM endeavors to collaborate and cooperate with investors, business partners, tenants of assets under management, and facility users.
TSCM will promote the following activities based on the Policy in order to incorporate considerations for ESG and Safety into our business operations of real estate investment management.
1.Obtaining external evaluations and certifications under ESG
LEED GOLD Certification: 3 properties
(Office buildings in Tokyo, 2 of which are currently under our management)
2.Efforts for energy saving and reducing greenhouse gas emissions
TSCM will consider the implementation of power saving (LED lighting, shielding of solar radiation heat, optimization of indoor environment and energy management, etc.), the introduction of highly energy-efficient equipment and operation methods (installation of solar panels on building roofs, etc.), and the use of renewable energy, etc.
3.Efforts for resource saving, environmental conservation, waste reduction/recycling
TSCM will evaluate and implement the environmental values created by environmental load reduction and environmental conservation, such as water-saving (restroom facilities) and greening promotion (entrance, rooftop, etc.).
4.Conduct of environmental risk assessment and Ensuring and improving safety
TSCM will appropriately assess environmental risks such as soil contamination and hazardous chemical substances, and consider measures to strengthen the resistance and resilience of building against various disasters Various disasters, including natural disasters caused by earthquakes, climate change, etc.
5.Collaboration and cooperation with investors
Through obtaining external certifications under ESG, implementation of various measures related to ESG and Safety (hereinafter referred to as “ESG measures”), purchase of green power, consideration of green lease agreements, etc., TSCM will provide support toward achieving the environmental goals and solving environmental issues set by investors.
6.Collaboration and cooperation with operational parties (PM, BM, etc.)
TSCM will encourage all parties involved in the operation of property management companies, etc., to collaborate and cooperate on ESG measures, and ask for their cooperation in business operations to realize timely and appropriate disclosure of information on ESG and improvement in satisfaction of tenants and facility users.
7.Contribution and encouragement to tenants and users of assets under management
TSCM will encourage tenants and facility users to support and cooperate on ESG measures, and strive to operate in a manner that contributes to the maintenance and improvement of safety and comfort in moving in and using the property.
8.Enlightenment and education for directors and employees, maintenance of internal systems
In order to increase the effectiveness of the Policy, TSCM will engage in enlightenment and educational activities on ESG and Safety for directors and employees, and promote the improvement and development of organizational capabilities and systems (resilience) to respond appropriately to environmental and social changes and events such as disasters.