Policy and Promotion Framework/ESG Report

We consider our efforts to achieve Net Zero by 2050 and to address climate change and social issues as important issues in our business activities, and have established the "Sustainability Policy" and will contribute to the realization of a sustainable society by implementing this policy in our asset management operations and overall business activities.

1. Efforts toward achievement of Net Zero by 2050
   We will contribute to achieving Net Zero by 2050 and to mitigating climate change by reducing greenhouse gas emissions from the operation of our property holdings by installing energy efficient equipment and adopting renewable energy.
2. Consideration and conservation of the global environment
   We will contribute to the preservation of the global environment by analyzing data on environmental impacts, understanding the impact of our business activities on the environment, and giving due consideration to ecosystems and biodiversity.
3. Resource conservation and waste reduction
   Through collaboration with stakeholders, We will contribute to the achievement of a society that conserves and recycles resources by encouraging tenants to conserve electricity and water and to recycle waste.
4. Creating a Great Place to Work
   We will promote the creation of a work environment that is healthy and comfortable so that individual executives and employees can fully demonstrate their abilities. We will also promote initiatives that take DEI and human rights into consideration and foster an organizational culture that recognizes and respects diversity.
5. Contribution to tenants and local communities
   We will strive to offer high quality properties to tenants and contribute to local communities through collaboration with our employees and other stakeholders including property management companies.
6. Legal compliance and the establishment of an organizational structure
   We will establish an appropriate organizational structure to ensure compliance with ESG-related laws and regulations to prevent risks.
7. Transparent disclosure
   When disclosing our ESG-related policies and initiatives, we will take the perspective of unitholders and make disclosures easy to understand.

To realize our Sustainability Policy,we have established KPIs for material issues, which are the priority challenges that the Company and our investment corporations must find solutions to, and we are implementing a PDCA cycle for target achievement.

In order to systematically pursue sustainability improvement activities, we have established the Sustainability Promotion Committee, which is chaired by the representative director, and the Sustainability Practical Committee, which is composed of employees responsible for actual operations in each department. The Sustainability Promotion Committee meets more than twice a year to implement a PDCA cycle with the aim of improving asset value over the medium to long term. The PDCA cycle consists of the following steps: formulate sustainability goals and initiatives, identify and evaluate climate-related risks and opportunities, analyze climate-related risks and manage them company-wide, monitor environmental performance as well as the results of ESG evaluation by external organizations, verify the degree of achievement of goals, and reset goals for remaining challenges and new challenges. In addition, the Sustainability Practical Committee is responsible for pursuing the various measures necessary to achieve the goals.
Goals are set by the representative director, who is the chief executive officer of sustainability, and the progress made toward goals and on initiatives is reported to the Board of Directors and to each investment corporation’s executive committee ｍore than once a year.

We publish ESG Reports in order to communicate the status of sustainability promotion of our company and the investment corporations we manage.