Sustainability MarketDynamics
Japan: SustainabilityMarketDynamics
Keytrends
1
Green growth rate expands
In the full year of 2024, 52 projects acquired LEED certification, significantly exceeding the 30 certifications of the previous year.
The total number of LEED-certified projects since 2009 has reached 306, an increase of 6.6% q-o-q. The total number of CASBEEBD-certified projects increased by 5.4% qo-q, while CASBEE-RE-certified projects saw a 9.9% q-o-q increase.
2
Wellness growth rate shrinks
For the full year 2024, 24 projects acquired WELL certification, significantly exceeding the 18 certifications of the previous year. The total number of WELL-certified projects has reached 55, an increase of 7.8% q-o-q. The total number of Fitwel-certified projects remained unchanged at five. However, the total number of CASBEE-WO-certified projects fell q-o-q for the first time, as some projects reached their expiry date.
3
Special features:
SBTi Buildings Sector Criteria
The Japanese version of Sustainability Market Dynamics features SBTi Buildings Sector Criteria. In August 2024, SBTi released target-setting guidance for the building sector aligned with the Paris Agreement's 1.5°C target. Companies intending to comply will now be required to set in-use operational carbon reduction targets using the Pathway tool, developed in collaboration with CRREM, as well as upfront embodied carbon reduction targets for new construction and large-scale renovations.
Fundamentals
+7.3%
Green-certified projects (average q-o-q)
+2.2%
Wellness-certified projects (average q-o-q)
Note: LEED, WELL and Fitwel refer to all ratings. CASBEE-BD, CASBEE-RE and CASBEE-WO refer to B+ and above.
Source: JLL, USGBC, IBECs, IWBI, Fitwel
LEEDcertificationsacquiredin2024 exceedthoseacquiredin2023
• Nineteen projects acquired LEED certification in 4Q24. Platinum-awarded projects included Goldman Sachs Tokyo Toranomon Office (LEED v4 ID+C: CI). For full-year 2024, 52 certifications were acquired, significantly exceeding the 30 of the previous year. The total number of certified projects since 2009 has reached 306, an increase of 6.6% q-o-q.
• Thirty-eight projects acquired CASBEE-BD certification in 4Q24. The number of acquisitions during the quarter decreased qo-q and y-o-y and was down 10% for the full year of 2024 compared to the previous year. The total number of CASBEE-BD-certified projects increased by 5.4% q-o-q to 486.
• CASBEE-RE certification was acquired by 214 projects in 4Q24. The number of acquisitions during the quarter increased q-o-q and y-o-y; for the full year of 2024, it was up 20% compared to the previous year. The total number of CASBEE-RE-certified projects reached 2,141, an increase of 9.9% q-o-q.
Historical valid green certification by certified year
Source:JLL,USGBC,IBECs
Japan: SustainabilityMarketDynamics
WELLcertificationsawardedtothree officesinTokyoCBD
• Six projects acquired WELL certification in 4Q24. Platinum-awarded projects included Goldman Sachs Tokyo Toranomon Office (WELL v2 Pilot: Office Spaces). For full-year 2024, 24 certifications were acquired, significantly exceeding the 18 of the previous year. The total number of WELL-certified projects has reached 55, an increase of 7.8% q-o-q.
• No projects acquired Fitwel certification in 4Q24. The total number of Fitwel-certified projects remained at five. Although Fitwel is still relatively unknown in Japan, there were about 2,000 valid certifications in 38 countries and regions around the world as of end-4Q24.
• Eight projects acquired CASBEE-WO certification in 4Q24, but nine projects reached their expiry date, as more than five years had passed since the start of CASBEEWO certification. The total number of CASBEE-WO-certified projects was 168, a decrease of 1.2% q-o-q, the first negative q-oq decline.
Source:JLL,USGBC,IBECs
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