LRQA Independent Assurance Statement
Relating to HEIWA REAL ESTATE’s Environmental and Social Data 2022
This Assurance Statement has been prepared for Heiwa Real Estate Co., Ltd. in accordance with our contract.

Terms of Engagement
LRQA Limited (“LRQA”)was commissioned by Heiwa Real Estate Co., Ltd. (“the Company”) to provide independent
assurance on its environmental and social data within its Integrated Report, Sustainability Report, the Corporate
Website (“the report”) and so on for the fiscal year 2022, that is, from 1 April 2022 to 31 March 2023, against theassurance criteria below to a limited level of assurance and the materiality of the professional judgement of theverifier using ISAE 3000 (Revised) and ISO 14064-3:2019 for greenhouse gas (“GHG”) emissions.
Our assurance engagement covered the Company’s operations and activities in its consolidated subsidiaries’
operations and activities in Japan and specifically the following requirements :• Verifying conformance with the Company’s reporting methodologies• Evaluating the accuracy and reliability of data for the selected indicators listed below 1 :Environmental 2 3 4 5• Total Energy usage ( [kWh]・Floor-area intensity [kWh /m2]) 6 7• Renewable energy usage [kWh]6 7• Scope 1 GHG emissions (Total [tonnes CO2e]・Floor-area intensity [tonnes CO2e/m2]) 6• Scope 2 GHG emissions [Market-based and Location-based](Total [tonnes CO2e]・Floor-area intensity [tonnes CO2e/m2]) 6• Scope 3 GHG emissions (Category 1 8, 2 8, 3 6, 5 6, 6, 7 8, 11 8, 12 8, 13 8 9)10 (tonnes CO2e)• GHG emissions (Scope 1 + Scope 2 + Scope 3 (Category13 9) )(Total [tonnes CO2e]・Floor-area intensity [tonnes CO2e/m2])• Water consumption volume (Total [m3])・Floor-area intensity[m3/m2]) 6• Waste disposal volume; Recycled material volume (Total [tonnes]・Floor-area intensity [tonnes/m2]) 6
Social 8• Rate of paid day-off for employees (%)• Rate of cancer screening test for employees (%)• Rate of physical check-up for employees (%)• Number of occupational accidents (Fatal accidents)
Our assurance engagement excluded the other data and information of the Company’s suppliers, contractors andany third-parties mentioned in the report.
1

LRQA undertook a limited assurance engagement of the environmental and social data designated with a mark such as “✓” within its Integrated
Report, Sustainability Report, and the Corporate Website and so on.
2
GHG quantification is subject to inherent uncertainty.
3
For jointly owned properties and quasi-co-owned properties, the percentage of ownership is ascertained, and the value corresponding to thepercentage of ownership is included.
4
Excluding some data of wastes, recycled materials, gas and water managed under tenants’ direct contracts, not available thereof.
5In addition, when buildings were purchased in the middle of the year, data values are also calculated on a pro rate basis, which are used as KPI.
(Waste disposal volume and recycled material volume are aggregated on an annual basis only.)
6
The company and the Tokyo Shoken Kaikan Co.,Ltd. are covered.
7
Energy usage for Scope 1, Scope 2, and Scope 3 (Category 13) respectively shows their values in specific scope.
8The company is only covered.
9
Scope 3 GHG emissions are calculated on both of market-based and location-based for Category 13.
10In Category 2 of Scope 3, the data of pre-owned properties are aggregated as new ones (In Category 1, 11, and 12 of Scope 3, the data of inventory
assets are included).
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LRQA’s responsibility is only to the Company. LRQA disclaims any liability or responsibility to others as explained inthe end footnote. The Company’s responsibility is for collecting, aggregating, analysing and presenting all the dataand information within the report and for maintaining effective internal controls over the systems from which thereport is derived. Ultimately, the report has been approved by, and remains the responsibility of the Company.

LRQA’s Opinion
Based on LRQA’s approach nothing has come to our attention that would cause us to believe that the Company has
not, in all material respects:• Met the requirements of the criteria listed above• Disclosed accurate and reliable environmental and social data
The opinion expressed is formed on the basis of a limited level of assurance11 and at the materiality of the professional
judgement of the verifier.

LRQA’s Approach
LRQA’s assurance engagements are carried out in accordance with ISAE 3000 (Revised) and ISO 14064-3:2019. Thefollowing tasks were undertaken as part of the evidence gathering process for this assurance engagement:• Auditing the Company’s data management systems to confirm that there were no significant errors, omissions
or misstatements in the report. We did this by reviewing the effectiveness of data handling procedures,instructions and systems, including those for internal verification;• Interviewing with those key people responsible for compiling the data and drafting the report.
• Sampling datasets and traced activity data back to aggregated levels;• Verifying the environmental and social data and records for the fiscal year 2022;• Visiting Fukuoka Shoken Building and Fukuoka Heiwa Building to confirm the data collection processes, record
management practices, and to physically check their facilities; and• Verification against the Company headquarters was conducted remotely via email, phone, and Microsoft Teams.
The Report includes a deduction from Company’s emissions relating to offsets. We have verified that these offsets
were acquired and that their inclusion in the Report is reasonable. We have not performed any procedures regarding
the providers of these offsets and express no opinion on whether they have, or will, result in a reduction of CO2e.

Observations
It is expected for the Company to standardize the data collecting forms and enhance sharing of the purpose ofreporting in order to improve the accuracy and comprehensiveness of the data.

LRQA’s Standards, Competence and Independence
LRQA implements and maintains a comprehensive management system that meets accreditation requirements for
ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use inaccreditation or other forms of recognition and ISO/IEC 17021-1 Conformity assessment – Requirements for bodies
providing audit and certification of management systems – Part1: Requirements that are at least as demanding as therequirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional
Accountants issued by the International Ethics Standards Board for Accountants.
LRQA ensures the selection of appropriately qualified individuals based on their qualifications, training andexperience. The outcome of all verification and certification assessments is then internally reviewed by senior
management to ensure that the approach applied is rigorous and transparent.
This is the only work undertaken by LRQA for the Company and as such does not compromise our independence or
impartiality.
11

The extent of evidence-gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance
engagements focus on aggregated data rather than physically checking source data at sites. Consequently, the level of assurance obtained in alimited assurance engagement is lower than the assurance that would have been obtained had a reasonable assurance engagement beenperformed.
Page 2 of 3Signed

Dated: 29 September 2023

Yoshinori Shibata
LRQA Lead Verifier
On behalf of LRQA Limited
10th Floor, Queen's Tower A, 2-3-1 Minatomirai, Nishi-ku, Yokohama, JAPANLRQA reference: YKA00001041

LRQA, its affiliates and subsidiaries, and their respective officers, employees or agents are, individually and collectively, referred to in this clauseas 'LRQA'. LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on theinformation or advice in this document or howsoever provided, unless that person has signed a contract with the relevant LRQA entity for theprovision of this information or advice and in that case any responsibility or liability is exclusively on the terms and cond itions set out in thatcontract.
The English version of this Assurance Statement is the only valid version. LRQA assumes no responsibility for versions translated into otherlanguages.
This Assurance Statement is only valid when published with the report to which it refers. It may only be reproduced in its entirety.
Copyright © LRQA, 2023.

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