Disclosure Based on TCFD Recommendations

Tosei Corporation
September 28, 2022

Index• The Company's Perceptions of Climate Change Issues

・・・P2• Supporting the Recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD)

・・・P2• Core Elements of Recommended Climate-Related Financial Disclosures by TCFD

・・・P3

• Governance・・・P4• Strategy

・・・P5• Risk Management

・・・P13• Metrics and Targets

・・・P15

1

The Company's Perceptions of Climate Change Issues
Since the Paris Agreement of 2015, climate change has become an urgent global challenge, and the need toaddress environmental issues has become a common understanding among countries around the world. The
current climate system and the scale of the changes observed in the climate are unprecedented in hundreds ofthousands of years. The IPCC Sixth Assessment Report, published in 2021, warns that anthropogenic climatechange is already affecting many weather and climate extremes in all regions of the world and that unless GHG
emissions are significantly reduced over the next few decades, it will cause more severe and frequent natural
disasters. The world must hold the increase in global average temperature to below 2°C or even to 1.5°C
above the pre-industrial level by the end of the 21st century. Efforts to reduce GHG emissions are being madeworldwide, and in Japan, the movement toward the achievement of a decarbonized society has been
accelerating since the Japanese government’s declaration on Net Zero GHG Emissions by 2050.
Under these circumstances, the Tosei Group recognizes that the climate change will cause dramatic changes in
the natural environment and social structure, and that it is an issue that will have a significant impact on ourbusiness. We also are aware that natural disasters could reduce the value of real estate and stricter
government environmental regulations could significantly affect our business activities, strategies and financial
plans. Tosei has established the Tosei Group ESG Policy and Action Guidelines and has also included initiatives
to address environmental and social issues in its current medium-term management plan, Infinite Potential
2023. We will continue to strive to implement ESG management that takes sustainability into considerationand contribute to the realization of a sustainable and decarbonized society through our corporate activities.

The Tosei Group ESG Policy
The Tosei Group has a mission of creating new value and inspiration in all aspects of real estate as a
global-minded group of seasoned professionals. It regards its commitment to the Environment, Socialand Governance as a priority management challenge. It will seriously address the social issues associatedwith real estate to contribute to society and achieve its own continuous growth.

Supporting the Recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD)
We have expressed our support for the recommendations of the Task Force on Climate-related Financial
Disclosure (TCFD) and are a member of the TCFD Consortium, an organization of supporters in Japan. Based on
the TCFD recommendations, we will analyze the risks and opportunities posed by climate change to ourbusiness, and strive to further enhance climate-related information disclosure.

2

Core Elements of Recommended Climate-Related Financial Disclosures by TCFD
This document discloses climate-related information base on the four thematic areas recommended by the
TCFD.

Governance

The organization’s governance around climate-related risks and opportunities.

Strategy

The actual and potential impacts of climate-related risks and opportunities on
the organization’s businesses, strategy, and financial planning.

Risk Management

The processes used by the organization to identify, assess, and manage
climate-related risks.

Metrics and Targets

The metrics and targets used to assess and manage relevant climate-related risks
and opportunities.

3

Governance
Recommended Disclosures
Disclose the organization’s governance around climate-related risks and opportunities.
a) Describe the board’s oversight of climate-related risks and opportunities.
b) Describe management’s role in assessing and managing climate-related risks and opportunities.

Organization Framework
Tosei Group has established the Sustainability Committee, which reports directly to the Board of Directors, topromote ESG management practices that take sustainability into account. Based on the Tosei Group ESG Policy
and ESG Action Guidelines, the Sustainability Committee formulates policies to improve the Group's overallsustainability, including addressing climate change, formulates annual activity plans for ESG promotion,
monitors, provides advice and guidance the progress of each measures and departmental activities.
The Sustainability Committee is chaired by the Chief Sustainability Officer appointed by the President and Chief
Executive Officer, and its members are appointed by the Chief Sustainability Officer. In principle, thecommittee holds six meeting a year, and its deliberations, activity status, and reported matters are reported
monthly to the Board of Directors.

The Sustainability Committee identifies, classifies, analyzes, and evaluates risks and opportunities, andformulates organizational measures and response plans for adaptation and mitigation for climate-related risks
in accordance with the Regulations for Risk Management Related to Climate Change. The measures approvedby the Board of Directors are linked to business strategies under the leadership of the Sustainability
Committee and are directed to the Group companies and their respective business units.

Role of the Board of Directors
The Board of Directors has the highest responsibility for climate change-related risk management, and shallestablish the necessary organizational structure, appropriately supervise it, and provide instructions asnecessary. In addition, based on reports from the Sustainability Committee, the Board of Directors
appropriately monitors and supervises the progress of each measure and program, reviewing the policies anddirecting improvements to the promotion system as necessary. In addition, ESG promotion targets, including
climate change, are set as items for evaluation and reward of full-time directors in charge of ESG.

4

Strategy
Recommended Disclosures
Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s
businesses, strategy, and financial planning where such information is material.
a) Describe the climate-related risks and opportunities the organization has identified over the short,medium, and long term.
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy,
and financial planning.
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related
scenarios, including a 2°C or lower scenario.
To understand the possible impact of future climate change on our group's business and to reflect such impact
into our business strategy, we chose multiple future climate change scenarios defined by international
institutions and identified risks and opportunities of the hypothetical world under each scenario. The details of
the scenario analysis are as follows.

Determining Targets for the Analysis
In this scenario analysis, all our group's businesses are included as the target. Regarding the possible impact onreal estate holdings, the analysis covers office buildings, commercial facilities, detached houses, apartmentbuildings, hotels, and logistics facilities as asset classes that are expected to be strongly affected by climatechange, while pre-owned condominiums units, which have a small impact, were excluded from the analysis.

Determining Time Frames for the Analysis
In analyzing the scenarios, we used 2030 (medium-term) and 2050 (long-term) as time frames for the scenario
analysis, considering the effects of climate change assumed in each scenario parameter will materialize in themedium to long term.

Global average temperature change relative to 1850–1900

2030
2050
(Mid-term) (Long-term)

AR6 Climate Change 2021: The Physical Science Basis
The graph is added to Panel (a) Global surface temperature changes by our company

5Strategy
Assumptions Underlying Each Scenario
The TCFD recommendations advise the use of several scenarios, including a 2°C or lower scenario, to examine
the resilience of the organization in an uncertain future.
Our group used the following two scenarios for our study and analysis.
(1) 1.5°C–2°C increase scenario (high transition risks, low physical risks)
Under this scenario in which regulations and policies are strengthened for decarbonization, measures
to address climate change are taken, and temperature rise is expected to be around 1.5 -2°C in 2100.
Companies are strongly required to respond to climate change, and if they do not, customer outflow
and reputation risks will increase, resulting in higher transition risks, while physical risks will be
relatively low, as the severity and increase of disasters caused by climate change will be suppressed
into a certain extent.
(2) 4°C increase scenario (low transition risks, high physical risks)
Under this scenario in which climate change measures are not adequately addressed and temperaturesrise from pre-industrial levels to about 4°C by 2100. Physical risks are assumed to increase, including
more severe natural disasters, sea level rise, and an increase in extreme weather events. This will
increase the competitiveness of products and services with superior BCPs. On the other hand,transition risks will be lower, as government regulations will not be strengthened.
Mainly Referenced Scenario Parameters
Institutions/
Organizations
Transition
Risks

IEA
(International Energy
Agency)1.5～2°C Scenario
・WEO2020;
Sustainable Development
Scenario (SDS)Net Zero Emissions by 2050
case (NZE2050)

4°C Scenario―

・ETP2017;
Beyond 2°C Scenario (B2DS)

Physical Risks

IPCC(Intergovernmental
Panel on Climate
Change)

IPCC Sixth Assessment Report;
IPCC SSP1-2.6

6

IPCC Sixth Assessment Report;
IPCC SSP5-8.5

Strategy
Future World View of Each Scenario

1.5°C - 2°C Scenario
Scenario in which laws and regulations will require companies to take decarbonization and low-carbon
initiatives, however, the severity and increase of disasters caused by climate change will be limited to acertain extent.
Buyer
SellerFinancial Institutions /(Construction
Policy(Real Estate Investors)
Investors
Companies, etc.)(Tenant/End user)◼Regulations on carbon
emissions, energy
consumption, and theenvironmental
performance ofbuildings will betightened.

◼In investment andfinancing decisions, theimportance of acompany's
environmental
initiatives and theenvironmental
performance of its
buildings will increase.

◼Customers will preferreal estate with highenvironmental
performance.

◼Decrease in building
costs due to improved
development
technology related toenvironmental realestate.
◼Increase in building
costs due to priceshifting ofenvironmental measurecosts.

Real Estate Industry / Our company◼Increase in construction and operating costs due to regulatory measures◼Increased sales opportunities for environmentally certified buildings and ZEB/ZEH◼Increased opportunities to obtain financing, investment, and subsidies through expansion of eco-friendly
renovation and development initiatives

4°C Scenario
Scenarios in which natural disasters such as typhoons and floods become more severe, sea levels rise due
to chronic temperature increases, and material prices rise.
Policy◼Laws and regulations
regarding disasterprevention andmitigation will betightened.

Financial Institutions /Investors◼Interest inenvironmental
considerations will notincrease.
◼In investment andfinancing decisions, theimportance of physicalrisks of buildings will
increase.

Buyer(Real estate investors)(Tenant/end user)

Seller(construction
companies, etc.)◼Customers will preferreal estate with highsafety performanceagainst natural disasters.

◼Lack of progress in thedevelopment of energysaving technologies◼Rising temperatures will
increase the cost of
materials andconstruction labor.

Real Estate Industry / Our company◼Decrease in property values in areas where flooding damage is a concern◼Increased occurrence of building damage due to extreme weather events◼Increased sales opportunities for real estate with disaster-prevention features

7

Strategy
Identification of Risks/Opportunities Based on Scenario Analysis and Evaluation of Financial Impact
Based on the two climate-related risks and opportunities (Transition risks/opportunities and Physicalrisks/opportunities) categorized in the TCFD recommendations, we have identified the major risks andopportunities that are expected to have a significant impact on our business for each scenario. For each of theidentified risks and opportunities, we evaluated the financial impact using parameters published byinternational organizations. The degree of impact on the Group was assessed on a four-point scale (major,
medium, minor, and minimal) based on the materiality standards of the Tokyo Stock Exchange for timely
disclosure, qualitative judgments take into account. Details are as follows.

Transition Risks・Opportunities
Financial Impact
Category

Regulation/Policy

Time
Frame

Item/Contents

1.5 4°C
2°C
Scenario
Scenario

Introduction of carbon tax
Risks• Operating costs will increase in accordance with GHG
emissions due to the introduction of a carbon tax and carbon
price.

Mid to
Long
term

Minor

Minimal

Mid to
Long
term

Minor

Minimal

Mid to
Long
term

Minor

Minimal• Construction costs will increase affected by rising material
prices.
Tighter GHG emission regulations
Risks• Tighter regulations will increase construction costs as
ZEH(M)/ZEB becomes mandatory for new offices,condominiums, and detached houses.
• Tighter regulations will increase renovation costs by requiringexisting buildings to be decarbonized (renovation to ZEB
Ready levels).
Opportunities• The spread of ZEB-enabling technologies is expected toreduce the construction cost, which may mitigate the cost
increase due to ZEB-enabling measures.
• Actively promoting the decarbonization of buildings will
increase the competitiveness of properties.
Reputation Change in behavior of investors and financial institutions
Risks• Interest burden will increase due to higher lending rates forcompanies reluctant to take environmental measures, etc.
Opportunities• Active implementation of environmental measures will
improve corporate reputation and credibility, leading toincreased credit lines and preferential interest rates.
• The liquidity of eco-friendly real estate will improve, and sales
opportunities will increase.
8Strategy
Resilience of the Group and the Results of the Analysis
Results of the scenario analysis indicate that the financial impact on the Group from transition risks, especiallyin the "medium to long term" time frame, will be emerge as a result of changes in the social transformation
associated with the transition to a decarbonized society (1.5 °C - 2°C Scenario), specifically through thestrengthening of various government regulations (adoption of carbon taxes, mandatory ZEH/ZEB levels, etc.),
and changes in the behavior and preferences of investors and financial institutions.
The Group intend to switch using electricity generated from renewable energy sources for its head office andcompany-operated hotels. We will also promote internal resource and energy conservation efforts to reduce
the Group's GHG emissions. moreover, we will aim to minimize risks and maximize opportunities bysystematically promoting environmentally friendly product developments, renovating buildings toenvironmentally friendly real estate specifications, and acquiring environmental real estate certifications.
Physical Risks・Opportunities
Financial Impact
Time
Frame

Category

Item/Contents

Acute

Increased severity of extreme weather events
Risks• Properties located in areas with high inundation risks due toflooding and storm surge will have lower price appreciation(asset value) due to higher risks premiums for investors.
• Repair costs will increase due to flood and storm surge damage.
Opportunities• Enhanced BCP measures for buildings will minimize risks andincrease the market competitiveness of the properties.

Chronic

Short
to
Mid
term

1.5 4°C
2°C
Scenario
Scenario

MinimalMinor

Sea Level Rise
Risks
• As sea level rises, existing buildings will chronically be inundated.

Mid toLong Minimal Minimal
term

Supply Chain Confusion
Risks• Construction costs will rise due to supply chain disruptions
caused by increased extreme weather events and soaring
material prices due to oil dependence.

Mid toLong Minimal
term

Minor

Resilience of the Group and the Results of the Analysis
Results of the scenario analysis indicate that financial impact from physical risks on the Group, especially in the"medium to long term" time frame, will emerge as a result of intensifying of extreme weather events in society
where climate change measures are not sufficiently implemented (4°C scenario). We make investment
decisions only after comprehensively considering various factors, including flood risks. Also, regularly checks
the risk status of its property portfolio using hazard maps, and takes appropriate business continuity planning(BCP) measures by reviewing the portfolio, purchasing insurance, and implementing countermeasureconstruction. Through these efforts, we aim to minimize risks while maximizing opportunities.

9

工事

Strategy
Strategies and Measures Developed Based on the Results of Scenario Analysis
Considering the aforementioned scenario analysis results, the Group will promote and consider the following
measures in its management strategy and financial plan to minimize risks and maximize opportunities.
Utilize Renewable Energy
In order to reduce GHG emissions (Scope 1 and 2), we will promote the use of renewable energy in the fixed
assets owned by our group and gradually switch the electricity used at the Tamachi Head Office building andowned hotels to that derived from renewable energy* from 2022 onward.
*Renewable energy includes the use of non-fossil certificates classified as renewable energy.

Reduce CO2 Emission through Revitalization BusinessTosei’s Revitalization Business is not only attractive as an investment product, but also leads to the utilizationand extension of existing resources and is environmentally friendly. This means that, Tosei’s model as theutilization of existing used properties can reduce total amount of CO2 generated due to construction by 54% incomparison to the Scrap and Build Model during 100-year term.（According to our estimation）(t-CO2)■ Building life-extension renovation(Conducted in place of Periodic repairs every 30 to 40 years.)■ Periodic repair (every 10 years)■ New construction (including associated demolition work)

7,595.5

Reduces CO2
emissionsabout 54%.
*Our company’s estimation

This amount of
reduction is equivalent
to the amount of CO2
absorbed by

3,452.9

about 294 hectaresof Japanese cedar trees
in one year.

CO2 emissions from construction

CO2 emissions from construction

Rebuild every 30 years(Scrap and Build Model)(TOSEI Value –Up Model)

修繕工事

長寿命化改修工事

修繕工事
TOSEI 新築・解体工事
Revitalization Model

長寿命化改修工事

Assumptions
Assuming that a newly constructed office building (total floor area: 10,000m2 , steel-framed reinforced concrete structure) will bemaintained for 100 years*
TOSEI Value-Up Model• Repair and maintenance work to be carried out every 10 years (8 times in total), and life-extension work to be carried out once
every 30 to 40 years (2 times in total).
• Lengthening of service life = large-scale repair work for air conditioning, water supply, elevators, water-saving toilets, etc.
Scrap and Build model• Repair work every 10 years (9 times in total), and once every 30-40 years, Demolish the existing building and build a new similarbuilding (2 times in total).
* In order to extend the life of the building frame up to 100 years, it is assumed that the neutralization diagnosis of the building
frame and its treatment have been taken. In addition, CO2 emissions from the work related to neutralization diagnosis andtreatment are not considered.

10Strategy
Promotion of LED Installation in Used Office Buildings
The Group is promoting the installation of LED lighting in the fixed assets it owns. To date, we have installed
LED lighting throughout four existing office buildings and one existing logistic facility and reduced electricity
consumption by an average of approximately 20% to 30%. This is expected to improve tenant satisfaction by
reducing electricity consumption and costs, increasing the brightness of the buildings, and eliminating the needfor maintenance.

Awajicho Tosei BL

Shinbashi Frontier BL Toranomon Tosei BL

Shinden Logistics

Promotion of Acquiring Environmental Real Estate Certification
We are promoting energy-saving renovations, including the installation of LED lighting in buildings. We are also
promoting the acquisition of certifications that evaluate the environmental performance and social aspects ofreal estate and use these certifications to enhance the value of our assets and for leasing.

Sano-shi Logistic Facility Project (tentative name)Shinden Logistics

Toranomon Tosei BL
11

Tamachi Tosei BL

Yotsuya Tosei BL

Strategy
Energy Conservation Efforts in Development Properties
The Group is actively adopting equipment and materials that contribute to greenhouse gas reduction andenergy conservation in the properties it develops. We are also working to build houses that meet the ZEH (Net
Zero Energy House) standard, and from December 2020 to November 2021, we supplied 13 ZEH houses. We
are developing products that incorporate the most advanced housing equipment and systems, including solar
power generators, energy- and water-saving equipment, and IoT. We will continue with these efforts to provide
houses that combine high energy-saving performance and comfort.
Major Environmentally-Conscious Equipment Installations• Energy-saving water heater (Eco-Jozu, ENE-FARM)• Double-layered glass• LED lighting, motion sensor lighting• Highly insulated design(equivalent to heat insulation performance grade 4)• Highly insulated sashes• Solar power generation system• Rainwater utilization equipment(rainwater tank, water-retaining interlocking)• Water-saving faucets, water-saving toilets• Recycled materials• Rooftop greenery, rooftop green/vegetable garden• Electric car charging facilities• Car sharing, bicycle rental

Example of
ZEH construction

Solar power
generation system

High-performanceheat-insulating material

Energy Meter

Green Leasing

To promote energy conservation in the properties we own, we are working
with tenants to conserve energy. We conduct periodic surveys of tenants inour buildings regarding building management and operation systems,
facilities, etc., to understand their needs. In addition, we are implementing
green leases for operational improvements, mainly for tenants of buildingsthat have undergone whole-building LED construction, to confirm their
willingness to work with owners on various energy-saving activities in termsof building operation. We are also working on economical green leases forsome of our properties that return the energy-saving benefits of installingenergy-efficient equipment to the owners. Moreover, we are striving to raiseenergy conservation awareness among tenants and curb energy use of thebuilding by distributing Sustainability Guides, which provide key points forenergy conservation activities, and show trends in the usage of building water,light, and heat consumption, and by displaying posters calling for energy andresource conservation.

Energy Conservation
Promotion Poster

For more information, please visit our website.
https://www.toseicorp.co.jp/english/csr/environment/
12

Sustainability guidebooks

Risk Management
Recommended Disclosures
Disclose how the organization identifies, assesses, and manages climate-related risks.

a) Describe the organization’s processes for identifying and assessing climate-related risks.
b) Describe the organization’s processes for managing climate-related risks.
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into
the organization’s overall risk management.

Process for Identifying and Assessing Climate-related Risks and Opportunities
The Sustainability Committee, responsible for risk management related to climate change, conducts regulargroup-wide surveillance once a year and identifies climate-related risks and opportunities based on the results.
The identified climate-related risks and opportunities are evaluated on two scales, “likelihood” and “impact”
based on multiple assumptions (scenarios) about future climate change defined by international organizations
and others. The results of the analysis are reported to the Board of Directors each time they are performed.
Climate-related risks and opportunities in this analysis are based on the following definitions.
① Transition Risks
Risks associated with the transition to a low-carbon society, which are risks brought about by changes in policies andlegal regulations to address climate change, as well as changes in technological development, market trends, market
valuations, etc.
(i) Current Regulations(Policy and Legal)

Risks related to policy actions that attempt to constrain actions that contribute to theadverse effects of climate change(ii) New Regulations(Policy and Legal)

Risks related to policy actions that seek to promote adaptation to climate change(iii) Technology

Risks related to technology that may change or evolve with climate change amongsuppliers of materials and services related to each of the Group's businesses(iv) litigation

Risks related to climate-related litigation claims being brought before courts.

(v) Market

Risks associated with changes in the markets relevant to the business of the Group
companies as society transitions to a low-carbon and decarbonized society in relation
to climate change(vi) Reputation

Risk of changes in the Group' s reputation with customers, investors, various suppliers,
communities, governments, and others related to the Group in relation to climatechange.

② Physical Risks
Risk of exposure to acute or chronic damage from climate change and other causes brought about by climate change.
③ Opportunity(i) Resource Efficiency

Opportunities related to improving resource efficiency in the business activities of ourGroup.

(ii) Energy Source

opportunities from shifting to low-carbon energy sources to meet the energy needs ofour group companies' business activities(iii) Products and Services

opportunities arising from low-carbon and climate change adaptive products andservices of our group companies.

(iv) Market

opportunities for our Group to enter new markets as we transition to a low-carbon
economy(v) Resilience

opportunities arising from enhancing various adaptive capacities of our groupcompanies to cope with climate change

13

Risk Management
Processes to Manage Climate-related Risks and Opportunities
Of the identified risks and opportunities, the Sustainability Committee creates a plan for each element that theTosei Group should address in an organized manner, and the Board of Directors approves the plan. The plan isformulated based on the basic framework of risk management, namely "avoidance," "acceptance,""mitigation," and "transfer”.
Under the supervision of the Board of Directors and in accordance with the instructions of the Sustainability
Committee, the approved risk response plans are implemented by the respective business operation systemsof Tosei and its group companies. The Sustainability Committee also takes the lead in linking the risk
management plan to the business strategy by providing instructions to each Group company and theirrespective business organizations.

Status of Company-wide Risk Management Integration
The Risk and Compliance Committee, which is a committee directly under the Board of Directors, is responsible
for centralized and cross-sectional risk management of the Tosei Group. The committee is responsible for
implementing basic measures for the Group's risk management, responding to management crises that may
occur as risks emerge, and overseeing and managing the various risks surrounding the Group's businesses.
Climate Change Risks and Opportunities, which are of particular importance among the company-wide risks
and should manage following the framework recommended by the TCFD, are led by the Sustainability
Committee under the supervision of the Board of Directors. The Risk and Compliance Committee ensure theintegrated Enterprise Risk Management by assisting and supporting the Sustainability Committee in its
implementation of various measures.

14

Metrics and Targets
Recommended Disclosures
Disclose the metrics and targets used to assess and manage relevant climate-related risks andopportunities where such information is material.
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in linewith its strategy and risk management process.
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and therelated risks.
c) Describe the targets used by the organization to manage climate-related risks and opportunities andperformance against targets.

Disclosure Elements of Greenhouse Gas (GHG) Reduction Target
The Tosei Group has set the goal of achieving net-zero greenhouse gas emissions in Scope 1 and 2 in FY2050 tokeep the global temperature increase below 1.5°C. In addition, the Company will pursue the following
reduction targets over the medium term, with FY2022 as the base year.
Details
Base Year*1

FY2022（From December 2021 to November 2022）

Reduction Target*2

Scope 1; direct emission of GHGs by business operators themselves, such as fromcombustion of fuelScope 2; indirect emission of GHGs associated with the use of electricity, heat, andsteam

Target Year /Reduction Ratio

Long-term Target: Net-zero by FY2050
Mid-term Target: 50% reduction from base year by FY2030*1 In FY2020 and FY2021, the Group‘s own hotels operated at low occupancy due to the impact of COVID-19, resulting in extremely
low gas and electricity consumption at all hotels. Therefore, we have set FY2022, which is close to the normal year, as the base year
for our group's greenhouse gas emissions reduction efforts. Actual results for FY2022 will be announced on our website once they
have been collected.
*2 The GHGs emitted by our group consist of GHGs emitted directly from our company through the usage of city gas used at ourheadquarter, sales offices, and company-operated hotels and gasoline used in company vehicles (Scope1), and GHGs emitted
indirectly through the usage of electricity at our headquarter, sales offices, and company-operated hotels and district heat andcooling used at our headquarter office (Scope2).

GHGs Mid- and Long-term Reduction Targets (Scope 1+2)
（％）
100

50%
Reduction

80
60

100%
Reduction

Net zero emissions

40• To gradually switch to renewableenergy sources for electricity usedat the head office building andhotels owned by the company• Continuous promotion of energysaving activities

200

Major Initiatives

FY2022
2022年
(Base
Year)

（基準年）

FY2030FY20502030年
2050年(Mid-term
Target) (Long-term
Target)（中期目標）（長期目標）
15

Metrics and Targets
Greenhouse Gases (GHG) Emissions
unit

FY2020

FY2021

FY2022(Base Year)

Scope1 (Direct GHG emissions)

t-Co2

135

197

(Forecast) 500

Scope2(Indirect emissions associated with energy sources)

t-Co2

1,318

1,696

(Forecast) 3,500

Total (Scope1+2)

t-Co2

1,453

1,893

(Forecast) 4,000

Note*The greenhouse gas emissions shown above are the total emissions from the business activities of all domestic consolidated
subsidiaries of the Tosei Group, based on the GHGs Protocol's control criteria.
*The figures for FY2020 include estimates in some cases.
*For FY2021 calculation, the Princess Group, which became a consolidated subsidiary in October 2021, is not included.
*The figures for FY2022 are estimates based on data available as of the date of publication (September 28, 2022). Actual results will
be announced on our website once they have been collected.

16