Initiatives for ESG
MEL is committed to endeavoring to enhance consideration towards the environment, social contributions and corporate governance to improve the sustainability of society. We recognize that this is an important social responsibility for a listed enterprise to assume, and also believe that it is essential for maximizing our unitholder value.
To put our commitment into practice, MEL together with its asset management company, Mitsubishi Jisho Investment Advisors, Inc. ("MJIA"), shares the sustainability objectives, and continues to embed sustainability into our business.
Signing of PRI
The Principles for Responsible Investment ("PRI") comprises an international network of investor signatories that works to realize the Six Principles established for the finance industry in 2006 under the leadership of the then United Nations Secretary-General, Kofi Annan. This network is promoted through the United Nations Environment Programme ("UNEP") and the United Nations Global Compact ("UNGC").
PRI encourages the incorporation of Environment, Social and Governance issues into investment decision-making processes, with the aim to help companies enhance long-term investment performance and better fulfill their fiduciary duty. As of March 2019, approximately 2,300 institutions, representing more than US$86 trillion in assets under management, have signed on to PRI.
Asset Management Company agreed with the basic approach of PRI and became a signatory in March 2020.
<The Six Principles>
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
GRESB assesses the sustainability performance of real assets across the globe. The assessment was established in 2009 primarily by major European pension funds which took the lead in Principles for Responsible Investment (PRI). The GRESB Real Estate Assessment is distinguished by its comprehensive evaluation of initiatives for sustainability of property companies, REITs and real estate funds. MEL participated in the 2019 GRESB Real Estate Assessment for the first time and has been awarded the prestigious “Green Star” rating and received “4 Star” rating, the second highest rating out of five.
Participation in UNGC
UNGC is a voluntary, global initiative supporting a global framework for sustainable growth through the demonstration of creative, responsible leadership by the respective corporations and organizations as principled members of society.
First proposed in 1999 by the then United Nations Secretary-General Kofi Annan, participants currently number more than 13,000 organizations and companies based in 160 countries (as of July 2018). It engages in activities based on ten universally-accepted principles in the four areas of human rights, labor, environment, and anti-corruption.
Mitsubishi Estate Co., Ltd. became a signatory of the UNGC and Mitsubishi Estate Group was registered as participants in April 2018. Along with this, Asset Management Company has participated in this initiative as a member of Mitsubishi Estate Group.