Overview
ARUHI has defined Materiality based on our Basic Sustainability Policy to connect our social and environmental endeavors with business strategies, and ultimately with the growth of both society and our company.
In our social activities, we recommend 'livable communities' suited to the values and lifestyles of each customer, suggest the best house for them (including user-friendly houses for the elderly and people with disabilities), provide advice on homebuying and information about the best housing loans so that we can offer a fulfilling, sustainable lifestyle for each customer. We also contribute to regional revitalization in collaboration with local governments and businesses.
In our environmental efforts, ARUHI helps mitigate environmental burdens and address climate change by building a stock-based circular society. To this end, we are committed to promoting the second-hand market and offering green housing loans, aiming to build a circular society where good houses are passed on and used for many years.
To provide a broad array of products and services in this initiative, ARUHI has defined Sustainable Finance Framework.
Based on the Framework, ARUHI plans to procure funds through green bonds/green loans, social bonds/social loans, and sustainability bonds/sustainability loans (collectively, "sustainable finance"). We expect that this helps decarbonize society, address social issues, and build a sustainable society.
Developed in accordance with principles including the Green Bond Principles (GBP) 2021 and Social Bond Principles (SBP) 2021 defined by the International Capital Market Association (ICMA), this Framework has been rated for conformity to these principles by a second opinion from Rating and Investment Information, Inc. (R&I).
Use of funds under Sustainable Finance Framework
The procured funds under this Framework are expected to be used for investments and refinancing of new and existing projects qualified as green projects or social projects as described below:
| Program | Category | Technical standard | Applicability | Related SDGs | |
|---|---|---|---|---|---|
| Primary energy consumption grade | Insulation grade | ||||
| New houses |
|
||||
| Flat 35 S |
ZEH
|
ZEH | Equivalent to 6 | Equivalent to 5 | |
|
Interest Plan A
(Energy saving) |
Approved low-carbon housing | 6 | 5 | ||
| Housing with insulation grade 5 or higher and primary energy consumption grade 6 | 6 | 5 or higher | |||
| Approved performance improvement plan housing | 6 | 5 | |||
|
Interest Plan B
(Energy saving) |
Housing with insulation grade 4 and primary energy consumption grade 6 | 6 | 4 | ||
| Housing with insulation grade 5 or higher and primary energy consumption grade 4 or 5 | 4 or 5 | 5 or higher | |||
|
Interest Plan A
(Durability and modifiability) |
Long-life quality housing | 6 | 5 | ||
|
Interest Plan A not mentioned above
|
Housing with insulation grade 4 or higher and primary energy consumption grade 4 or higher | 4 or higher | 4 or higher | ||
| Housing that meets the building energy consumption performance standards | 4 or higher | 4 or higher | |||
|
Interest Plan B not mentioned above
|
Housing with insulation grade 4 or higher and primary energy consumption grade 4 or higher | 4 or higher | 4 or higher | ||
| Housing that meets the building energy consumption performance standards | 4 or higher | 4 or higher | |||
| Flat 35 | Housing with insulation grade 4 or higher and primary energy consumption grade 4 or higher | 4 or higher | 4 or higher | ||
| Housing that meets the building energy consumption performance standards | 4 or higher | 4 or higher | |||
| Flat 35 regional cooperation type |
Regional revitalization
(greening) |
Housing with insulation equivalent to grade 6 or 7 | - | Equivalent to 6 or equivalent to 7 | |
| Preowned houses | |||||
| Flat 35 S |
ZEH
|
ZEH | Equivalent to 6 | Equivalent to 5 | |
|
Interest Plan A
(Energy saving) |
Approved low-carbon housing | 6 | 5 | ||
| Housing with insulation grade 4 and primary energy consumption grade 6 | 6 | 4 | |||
| Housing with insulation grade 5 or higher and primary energy consumption grade 4 or higher | 4 or higher | 5 or higher | |||
| Approved performance improvement plan housing | 6 | 5 | |||
|
Interest Plan A
(Durability and modifiability) |
Long-life quality housing | 6 | 5 | ||
| Flat 35 regional cooperation type |
Regional revitalization
(greening) |
Housing with insulation equivalent to grade 6 or 7 | ー | Equivalent to 6 or equivalent to 7 | |
- * Flat 35 S technical standards apply.
| Program | Category | Technical standard | Applicability | Related SDGs |
|---|---|---|---|---|
| The grade of measures for attending the elderly | ||||
| New houses |
|
|||
| Flat 35 S |
Interest Plan A
(barrier-free accessibility) |
Housing with measures for attending the elderly, etc., grade 4 or higher (grade 3 is acceptable for exclusive parts of condominium buildings.) |
4 or higher (3 or higher) |
|
|
Interest Plan B
(barrier-free accessibility) |
Housing with measures for attending the elderly, etc., grade 3 or higher | 3 or higher | ||
| Preowned houses | ||||
| Flat 35 S |
Interest Plan A
(barrier-free accessibility) |
Measures for attending the elderly, etc. for housing, grade 3 or higher | 3 or higher | |
|
Interest Plan B
(barrier-free accessibility) |
Measures for attending the elderly, etc. for housing, grade 2 or higher | 2 or higher | ||
- * Flat 35 S technical standards apply.
| Program | Eligibility | Related SDGs | |
|---|---|---|---|
| The regional cooperation type | Community revitalization |
Housing that meets the requirements for projects by local public agencies collaborating with the Japan Housing Finance Agency to actively promote regional revitalization (Project examples) [1]For purchasing a house for moving to regional areas (U/I/J-turns) [2]For purchasing a house built using local materials [3]For purchasing a house for moving to areas that are actively attracting more residents from outside such areas [4]For purchasing a house that contributes to disaster prevention and mitigation |
|
| Measures to address the issue of abandoned houses | For purchasing an abandoned house that meets the requirements for projects by local public agencies collaborating with the Japan Housing Finance Agency to actively promote regional revitalization | ||
| childcare support | For a case where a family with a small child/children meets the age and other criteria and the house that they are purchasing meets the requirements, both defined by the local government of the municipality that they are moving to | ||
| The local migration support type | When a person living or working in the 23 wards of Tokyo moves to a prefecture or municipality (outside of Tokyo region excluding disadvantage area) that runs a regional revitalization program to attract people to move to the area, and when such a person starts a business or is employed there (need to be eligible for financial assistance for relocation) | ||
- * Flat 35 technical standards for housing durability and other loan eligibility should be met.
Management of Funds
ARUHI's financial department manages funds procured in this Framework and allocates them to eligible projects using an internal management system. ARUHI manages the total balance of procured sustainable finance in a way not to exceed the balance of the portfolio of eligible projects.
Should the total balance of procured sustainable finance exceed the balance of the portfolio of eligible projects, the excess amount will be managed in cash and cash equivalent. As for re-allocation, funds are re-allocated to another eligible project that meets the eligibility criteria.
Reporting
ARUHI discloses a fund allocation status report and impact report annually on its website and through other channels. The initial disclosure will be made within a year of procuring funds. Any significant changes after the allocation of procurement funds will be disclosed as appropriate.