Our Approach to Sustainability Sustainability Management

Basic Policy on Sustainability

CSIF and CSAM aim to build a more sustainable economy and society through expansion of the use of renewable energy in Japan in line with their basic philosophy of “Aiming to advance the widespread adoption and use of renewable energy to build a more sustainable economy and society.”

Furthermore, amid the growing focus on corporate responsibility to address global issues such as climate change and human rights abuses in recent years, CSIF and CSAM recognize that integrating environmental, social and governance (ESG) considerations into the investment decision and management process is essential for enhancement of unitholder value in the medium and long term.

In light of the foregoing, CSIF and CSAM invest in and manage solar power plants in accordance with the following Sustainability Policy, to realize both the “development of a sustainable society through achievement of the basic philosophies” and “enhancement of unitholder value in the medium and long term.”

Sustainability Policy

Environmental Initiatives

Investment in renewable energy power generation facilities which will help solve climate change issues, we will contribute to climate change mitigation by actively investing in renewable energy power generation facilities with very low greenhouse gas emissions.

Consideration for neighboring ecosystems

We will consider the risk that our business sites and our assets, especially our renewable energy power generation facilities, will impact the surrounding area including neighboring ecosystems and biodiversity and will exercise appropriate risk management and also work on initiatives to protect them.

Energy-saving measures and waste management

We will seek to improve the energy efficiency of the assets we manage, be more selective in the energy we use, and reduce waste, and we will implement initiatives for continuous improvement.

Social Initiatives

Development of workplaces where diverse human resources can actively participate

We will implement training and awareness-raising activities to help employees develop ESGrelated knowledge and skills and we will also support the active participation of diverse human resources and flexible work styles and develop pleasant working environments which give consideration to health and comfort.

Governance Initiatives

Enhancement of corporate governance

We will ensure that conflicts of interest are properly managed, going beyond legal compliance and bearing in mind a stringent Code of Conduct, and we will strive to enhance corporate governance for maximization of unitholder value.

Stakeholder engagement through information disclosure and ESG ratings

We will make ESG disclosures to various stakeholders, including investors, in accordance with frameworks both in Japan and overseas and will promote constructive dialogue.

Approach to Sustainability

CSIF and CSAM stipulate the following approach to investment in renewable energy power generation facilities.

Guidelines on Investment in Renewable Energy Power Generation Facilities

■Investment in clean energy

Solar power plants and other power plants in which CSIF can invest in (hereinafter collectively referred to as “Renewable Energy Power Generation Facilities”) shall contribute to (1) reducing CO2 emissions and (2) mitigating environmental destruction, either directly or indirectly, and clean energy power stations with no resource waste and a high probability of improving the environment.

■Identifying business risks when acquiring renewable energy power generation facilities

At the time of acquisition of renewable energy power generation facilities, its negative impact on the environmental and social aspects shall be checked by in-house departments with expertise by obtaining a soil contamination report, structural integrity report and technical due diligence report produced by a third party. Where the subject facilities have a risk, it shall be judged that a countermeasure is taken and that the negative impact is unlikely to exceed environmental improvement effects.

■Establishing the SRI selection process

Eligibility criteria and the selection process of green projects shall be established. In the due diligence of new investment projects implemented by CSIF, it shall be judged that the renewable energy power generation facilities will (1) not damage the health of people in the neighborhood or negatively impact the local municipality, and (2) not be involved in forced labor in the supply chain and in the development. At the same time, risks shall be identified by the Acquisition and Asset Management Department of CSAM as Asset Manager. Where a negative environmental impact has been identified, countermeasures shall be taken by applying knowledge of internal and external specialists to eliminate factors causing the impact. In addition, where solar power generation facilities or the similar facilities are to be acquired from a related party, the acquisition shall be deliberated and resolved by CSAM’s Compliance Committee in advance.

Sustainability Implementation System

■Sustainability Committee

The Sustainability Committee was established mainly to deliberate on and determine basic policies and other matters relating to sustainability activities implemented by CSIF and CSAM.

■Sustainability Committee Members

Chief Sustainability Officer: CEO and Representative Director (Committee Chair)
Committee Members: All officers (Directors and Executive Officers), Chief Compliance Officer and all General Managers of Departments
Secretariat: Asset Management Department
Implementation of decisions: Every department

■Matters to be deliberated on and determined by the Sustainability Committee

  • (1) Formulation and revision of basic policy and basic plan for sustainability activities
  • (2) Formulation and revision of annual priorities for sustainability activities
  • (3) Monitoring of progress of sustainability initiatives
  • (4) Deliberation on and determination of disclosure of material information about sustainability activities
  • (5) Responding to inquiries internally and externally with matters related to sustainability activities
  • (6) Verification of and recommendations on the company’s management policies and business activities from a sustainability perspective
  • (7) Matters deliberated and determined at the request of each Department General Manager
  • (8) Matters deemed necessary by the Committee Chair or matters specified separately in the Company’s internal rules
  • (9) Other matters incidental thereto

■Matters to be reported to the Sustainability Committee

  • (1) Matters concerning the results of the Company’s sustainability activities
  • (2) Matters deliberated on and determined by the Sustainability Committee which are referred to the Board of Directors
  • (3) Matters deemed necessary by the Committee Chair and matters specified separately in the Company’s internal rules
  • (4) Other material matters concerning the Company’s sustainability activities

■Frequency of Sustainability Committee meetings

Convened by the Committee Chair and held at least once every six months, in principle