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.”

1. Protection of the environment, including addressing climate change 

We will actively invest in renewable energy power generation equipment to help mitigate climate change issues, aiming to realize a decarbonized society. We will consider the impact that the assets we manage have on natural capital and biodiversity in the regions in which they are located, and we will exercise appropriate risk management and also work on initiatives to protect them. Additionally, we will work to reduce environmental impact at the assets we manage by encouraging environmental practices such as improvement in energy efficiency, waste reduction and resource recycling.
By accurately identifying and evaluating environmental risks and opportunities such as the foregoing and properly managing them, we will achieve sustainable investment and operation.

2. Engagement with stakeholders, including employees, and social responsibility

We will build a work environment in which diverse human resources can fulfil their potential, and employees are offered flexible work options to suit their lifestyles. We will develop ongoing education and training programs for employees aimed at developing expertise in the renewable energy field and ESG-related knowledge and skills. Further, we will make respect for human rights across the entire supply chain a fundamental principle, and will collaborate with stakeholders in efforts to conduct business responsibly, giving consideration to work environments and workplace safety.
We will also build relationships of trust through active communication with local communities in which the assets we manage are located, and we will help realize a society in which we harmoniously coexist with local communities.

3. Basis for asset management with fairness and integrity

We will instill a Code of Conduct based on high ethical standards while also ensuring compliance with laws and regulations, and we will aim to maximize unitholder value through appropriate management of conflicts of interest. We will ensure transparency and accountability by building a robust governance framework.
We will also make ESG information disclosures in compliance with domestic and international frameworks, and strengthen ESG initiatives and information disclosures through constructive dialogue with investors and other stakeholders.

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