English Search

Policy

As of May 23, 2023

Sustainability Policy

 Meteorological phenomena caused by drastic changes particularly in temperatures, rainfall, seasons, ocean currents, and winds due to climate change are beginning to transform ecosystems and lifestyles in Japan and elsewhere around the world at an unprecedented rate. As such, we have become subject to unparalleled threats. Moreover, we are encountering a situation where humankind will no longer be able to live sustainably unless we alter our lifestyles in terms of addressing global challenges such as those involving scarce resources, discarded plastics and other such materials, and waste matter.
Since ancient times, travel has acted as a humbling and healing endeavor. It has furthermore helped revitalize communities, delivered adventures that bring new discoveries, and been a source of new awakenings that change history. Continuing forward, Hoshino Resorts REIT, Inc. (HRR) is committed to contributing through tourism by ensuring that human creativity and motivation act to perpetuate a sense of humility and hope, even in the midst of such adversity, and by helping give rise to economies and sustainable new lifestyles that help ensure sustainability of the natural environment and society.
The current sponsor of HRR, Hoshino Resorts, Inc., was founded in Karuizawa, Nagano Prefecture in 1904. Hoshino Resorts upgraded the concept of a traditional Japanese inn, which involved drilling underground hot springs and installing hydroelectric power plants, and went on to operate a facility frequented by numerous cultural luminaries. With the launch of its Liberal Education Art Seminars in 1921, the location became a cultural hub of that era and helped give rise to the notion of seeking therapeutic enjoyment by finding respite in cooler surroundings during the summer. Moreover, at the Hoshino Onsen location Hoshino Resorts embarked on conservation efforts to help preserve ecosystems of the adjacent national woodlands that are home to a treasure trove of wild birds, having been inspired by the words of the founder of the Wild Bird Society of Japan, Godo Nakanishi, who upon staying at Hoshino Onsen made a sensational remark for the times that “we are entering an era where people will come to enjoy observing the wild birds that have long been regarded as food.” These efforts culminated in the woodlands becoming nationally designated as the Karuizawa Wild Bird Sanctuary, thereby helping to preserve that environment to this very day.
Having embraced such sentiment with respect to our operations of the HOSHINOYA Karuizawa luxury resort, which opened in 2005 on the former site of Hoshino Onsen, which is full of nature, we have accordingly engaged in an “Energy In My Yard” (EIMY) approach to produce energy within its area, underpinned by the aim of minimizing the burden on our natural surroundings. HOSHINOYA Karuizawa produces approximately 70% of its energy consumption as a result of progress we have made in terms of generating electricity derived from hydropower, making use of hot spring runoff for heating, building structures featuring energy-efficient designs, and engaging in biomass recycling. In addition, we take action to protect biodiversity and natural habitats by setting up boundaries for human activity with respect to vegetation and organisms of Karuizawa's woodlands, working in conjunction with the Picchio initiative's teams of rangers who specialize in plants and animals.
We maximize revenues from our overnight accommodations by maintaining high levels of guest satisfaction. In addition, whereas the tourism business is one that hinges on extremely robust ties to geographic localities, we believe that enabling guests using accommodations of Hoshino Resorts to experience the appeal of our locations is important from the standpoint of Japan's “tourism-oriented nation” strategy. This approach also contributes to local communities and enables us to achieve a mutually beneficial co-existence with community members from the standpoint of preserving natural environments and contributing to society. This is precisely what HRR aims to achieve with respect to its approach to investment that takes into account the notion of creating shared value (CSV) under its environment, social and governance (ESG) strategy.
We have drawn up the following objectives encompassing four key strategies in that regard.
  • Shifting to a green building approach: We aim to increasingly shift to a green building approach with respect to our facility holdings with the aim of helping to mitigate climate change and major natural disasters. To such ends, when engaging in new construction, renovation, or repairs, we consider and implement options that will decrease environmental loads in areas such as energy consumption, greenhouse gas (GHG) emissions, water consumption, and waste reduction. At the same time, we strive to achieve greater energy resilience which involves considering options for adopting renewable energy.
  • Discarded plastics: We strive to avoid use of plastics to the extent possible in order to help reduce volumes of micro-plastics in the ocean and PET bottle waste on land. Through such initiatives, we will build relationships conducive to enabling cooperation with our suppliers in terms of having a positive impact on lifestyles of our customers. We will furthermore coordinate efforts with all of our operators in addressing not only plastics but also general waste management, and will accordingly enter into green lease agreements with them.
  • Tourism and geographic locations: Whereas tourism and geographic regions are inextricably linked, we are committed to the notion of stimulating the economy while concurrently valuing attributes of our geographic locations. This calls for us to develop workplace environments that embrace the notion of wellness, particularly in the form of providing regular health checkups to improve the health of our executives and employees who conduct our business affairs.
  • We promote diversity (D), equity (E), and inclusion (I) in the way we work, respecting each individual. First, we will provide an environment in which each and every employee can demonstrate his or her individuality and talents, with the aim of achieving co-existence that transcends gender, age and nationality. Moreover, in promoting our business and achieving our goals, we will strive to create an organization in which individual differences are taken into account and what is needed is provided. These efforts help employees deepen their understanding of different values and encourage them to collaborate with local communities and participate in social contribution activities as they come into contact with local culture and history through their daily work in the tourism industry. By doing so, creative and productive ideas will be generated, and new attractions and services will be created. We will actively promote these efforts to realize sustainable management.
HRR is committed to fully carrying out the aforementioned initiatives, while also thoroughly implementing risk management and compliance practices in conducting its business affairs and continuously improving corporate governance. These will be developed using decision-making structures such as the Investment Management Committee, Compliance Committee, and Board of Directors, centered on Hoshino Resort Asset Management Co, Ltd. which undertakes the asset management services.

ESG Committee

We established an internal ESG committee. We will continue to do our best to create shared value, which we believe achieves both social contribution and corporate profit, and to meet the expectations of our shareholders.

Hoshino Resorts' environmental management

 Hoshino Resorts Group sees hotels and local communities as being inseparable. In other words, greater local allure directly contributes to an increase in the hotel business. Likewise, when hotels share the allure of their areas, it helps increase the area’s brand power. Based on this thought, the Hoshino Resorts Group is conducting activities rooted in the region. Hoshino Resorts Group believes that such activities rooted in the region are part of its sustainable corporate competitiveness and that the local technologies, agricultural, forestry and fishery products, tourism resources, etc., that exist in the region are all sources of value.
 Hoshino Resorts Group also believes that environmental management requires development in the areas of ecotourism, zero-emissions operations, and energy grids without environmental impacts.

Hoshino Resorts' environmental managementHoshino Resorts' environmental management

Activities to produce energy within the facility area to minimize the impact on nature.

The energy system that powers HOSHINOYA Karuizawa is called “EIMY (Energy in My Yard).” This system was built on the simple concept of “if energy could be produced within its area” to minimize its burden on the environment in keeping with a resort whose theme is based on the rich natural environment. It makes use of hydroelectric energy, hot spring runoff for heating, building structures featuring energy-efficient designs, and biomass recycling.

Hydroelectric Power Generation
Hydroelectric Power Generation

The river that forms part of the soothing natural scenery also provides an electric power generation system.

Sorting Waste into Multi-Species to Promote Resource Recycling
Sorting Waste into Multi-Species to Promote Resource Recycling

Employees make regular checks to ensure correct sorting in order to promote resource recycling.

Heat Pumps
Heat Pumps

Heat pumps use technology to transfer heat using hot spring runoff and geothermal heat.

Awnings
Awnings

Small awnings attached to the roofs over each guest room function as natural air conditioners.

Installation of seawater desalination plant and balancing social and economic values of Taketomi Island

HOSHINOYA Taketomi Island has a hot water supply heat pump unit that uses seawater desalination heat sources, which integrates solar power generation, energy storage, and a heat pump. In addition to reducing CO2 emissions by approximately 46 tons per year, it is also possible to supply water to people on the island in the event of a disaster.

Solar power generation
Solar power generation

Even in the event of a disaster, cold/hot water and electric power can be self-supplied in the facility.

Seawater desalination
Seawater desalination

Seawater pumped up from underground is desalinated through a special filter (RO) to desalinate the water.

Heat pump
Heat pump

A high-efficiency heat pump that uses desalinated water as its heat source can provide the necessary hot and cold water for lodging facilities while reducing greenhouse gases.

Other effects
Other effects

E: The provision of bottled mineral water in guest rooms, which numbered about 40,000 bottles a year, was abolished. Contributing to the environmental conservation of Taketomi Island.
S: We concluded an agreement with Taketomi-cho on support for evacuees and designated evacuation centers. Safe water supply to islanders is possible.

HOSHINOYA Taketomi Island entered into a partnership agreement with Taketomijima Regional Foundation, a general incorporated foundation dedicated to the conservation of the natural environment of Taketomi Island, for the preservation of the natural environment and sustainable island culture of Taketomi Island.

Three types of collaboration

  1. Development of activities to solve the problem of ocean debris on the island
  2. Restoration of traditional crops throughout the island
  3. Technical cooperation to specialize in traditional crops

The state of ecotourism

Hoshinoya Karuizawa “picchio*”

To uphold the aspirations of those who have loved the natural environment of Karuizawa before us and to protect the ecology for future generations, we launched picchio in 1992. This company is now expanding its activities to include eco-tourism.

  • Picchio, which means “woodpecker” in Italian, is a Hoshino Resorts Group company that is dedicated to ensuring the survival of forests and the creatures that live there for the future.

PicchioPicchio

Protecting and managing black bears

Keeping people safe and saving wild bears from extinction. With this dual objective, Hoshino Resorts explores, practices, and reports ways in which humans and bears can co-exist at an appropriate distance. Since 1998, the organization has tracked and monitored bears, repelled them with the nation’s first “bear dogs (dogs trained to chase away bears),” and developed bear-proof garbage bins. These endeavors succeeded in reducing bear sightings significantly, with the number of cases of bears raiding public trash receptacles falling from 100 in 1999 to 0 in 2009.

Iriomote Island, a World Natural Heritage site

In July 2021, Iriomote Island was registered as a World Natural Heritage Site. To protect the island's natural environment and create a sustainable tourism system, Iriomote Hotel aims to become Japan's first "eco-tourism resort" and is working with the involvement of not only its employees but also hotel guests. Since many visitors to the island are day trippers from Ishigaki Island and there are concerns about environmental burden and overtourism, Iriomote Hotel has limited reservations to stays of two nights or more to promote staying-type tourism. We believe this initiative will lead to an economic spillover effect for the island due to an increase in sojourners and better satisfaction of hotel guests, in addition to conserving nature by reducing GHG emissions through shortened travel distance per night and avoiding overtourism. Based on this, we will establish a cycle of eco-tourism.

Ecological hotel management

Hoshino Resorts Group works to achieve zero emissions.

  • Stop providing and selling plastic (PET) bottles
  • Installing water servers
  • Introduction of detergent-free smart laundries
  • Rental bottle of drinking waterRental bottle of drinking water
  • Smart laundrySmart laundry

Beach cleaning

Employees clean the beach to preserve the marine environment.

  • During beach cleaning activityDuring beach cleaning activity

Nature tours to experience the charm and value of the island

Hoshino Resorts Group works to protect and preserve biodiversity, including endangered and endemic species.

  • Iriomote cat trace tour
  • Holding “World Heritage School” for people to learn about the natural environment
  • Endangered Iriomote catEndangered Iriomote cat
  • World Heritage SchoolWorld Heritage School

Endangered Iriomote cat conservation activities

In order to prevent the Iriomote cat, an endangered species, from being killed on roads, Hoshino Resorts Group conducts weeding activities to increase visibility on the road.

  • Holding “Iriomote Wildcat School”
  • During weeding activityDuring weeding activity