PROMOTION OF ENVIRONMENTAL AND/OR SOCIAL CHARACTERISTICS (SUMMARY
OF SFDR ARTICLE 8 PRE-CONTRACTUAL DISCLOSURE)
What environmental and/or social characteristics are promoted by Invincible Investment Corporation(“INV”)?
INV and Consonant Investment Management Co., Ltd. (“Asset Manager”) (hereinafter referred tocollectively as “we,” “us” or “our”) recognize the importance of environmental, social, and governance(“ESG”) considerations in real estate investment management from the viewpoint of sustainability such as
economic and social development and contributing to global environmental conservation, and designate
improvement of sustainability as an important management issue. We also have established the basic policies
for sustainability on the belief that the incorporation of ESG considerations into the real estate investment
management business, which is our primary business, is essential to maximizing unitholder value over themedium to long term.
What sustainability indicators are used to measure the attainment of the environmental or social
characteristics promoted by INV?
We use the following indicators to measure the attainment of the E/S characteristics we promote.
•GRESB Real Estate Assessment. The GRESB is an annual benchmarking assessment to measure
ESG integration of real estate companies and funds. It was founded in 2009 by a group of major
European pension funds who played leading roles in launching Principles for Responsible
Investment (“PRI”). The GRESB Real Estate Assessment is characterized by evaluating
sustainability initiatives of real estate companies, REITs, and real estate funds, rather thantargeting individual real estate. In the 2021 GRESB Real Estate Assessment, INV received the“2-Star” GRESB Rating, which is based on overall GRESB scores and its quintile position amongparticipants. INV was also awarded the “Green Star” designation by achieving high performancein both the “Management Component” that evaluates policies and organizational structure for
ESG promotion, and the "Performance Component" that assesses environmental performanceand tenant engagement of properties owned. Furthermore, INV was highly evaluated for its ESG
information disclosure efforts and received the “A Level”, which is the highest for GRESB Public
Disclosure assessing the substantiality of ESG information disclosure.

•Environmental targets. The Asset Manager has formulated an “Energy Conservation Policy”,“Greenhouse Gas Emissions Reduction Policy”, “Water Saving Policy” and “Waste ManagementPolicy”, which stipulate initiatives to reduce environmental impact occurred by real estate
investment management operations. Through the cycle of planning, implementation,performance management, and improvement set forth in an “Environmental Management System(“EMS”) Operation Manual” that stipulates the details for operating these policies, the AssetManager strives to continuously reduce the environmental impact.

•Tenant Satisfaction Survey. The Asset Manager conducted a satisfaction survey for all residentsof our residential properties (excluding three residences for students with fixed-rent subleases) in
March 2022 through an external research organization. We continuously collect opinions andrequests of residents and share them with property management companies to improvebuilding/equipment specifications and services.

What investment strategy does INV follow?
INV, making focused investments in hotels and residential properties as core assets, shall manage
its assets with an aim to secure stable growth and profits over the medium and long term. INV also recognizes
its social responsibility to the environment and local communities as a J-REIT and therefore proactively
implements ESG-friendly investment management and sustainability initiatives that take advantage of assets’characteristics and carry out social contribution activities such as voluntary cleanup on roads and rivers.
Prior to our investment in a property, the Asset Manager conducts due diligence review of theproperty, including investigation of soil contamination and toxic substances such as asbestos, Freon gas andPCBs by obtaining real estate appraisal reports and engineering reports in addition to conducting economical,physical and legal assessment. For overseas property, INV complies with laws and regulations regarding theenvironment and geology in the country or region where properties are located and makes a comprehensive
judgment on whether or not to invest, taking into account the practices in the region.
What is the policy to assess good governance practices of the investee companies and INV?
INV invests directly or indirectly through trust beneficiary interests in real estate and real estaterelated assets. Therefore, due diligence (including the assessment of good governance practices) in relation
to investee companies is not applicable to INV.
While there is no third-party rating used to assess our governance practices, we, along with the AssetManager, have introduced the following measures to assess and enhance our governance systems:
restrictions on related-party transactions, risk management and internal audit system.
What is the asset allocation planned for INV?
INV’s asset allocation is 100% in real estate and real estate-related assets. INV has no environmentrelated certifications for its portfolio properties as of May 31, 2022. We target to acquire such certifications,such as BELS and CASBEE, prioritizing hotels which represent major portions of INV’s portfolio in termsof gross floor area.
REMUNERATION AND SUSTAINABILITY RISKS (SFDR ARTICLE 5 DISCLOSURE)
The Asset Manager has a remuneration policy in place which aims to support its strategy, values
and long-term interest, including its interest in sustainability. The Asset Manager’s remuneration policy
is consistent with the integration of sustainability risks, as follows:•Remuneration, methods of calculation and payment, and timing of payment are determinedaccording to the Asset Manager’s compensation rules.

•Base salary for each employee of the Asset Manager is determined every year on March at theAsset Manager’s discretion, considering factors such as performance of and economic conditions
surrounding the Asset Manager, and such employee’s duties/position, performance, ability,achievement and contribution, which may include those with respect to ESG.

•Employees may receive various allowances such as unemployment benefit, commutation benefit,
retirement allowance, and overtime and day-off work charge.

•Employees may receive bonuses, which amount is determined by the Asset Manager considering
the performance and profits of the Asset Manager and the achievement and contribution of each
employee, which may include those with respect to ESG.