NEWS RELEASE
24-D-0590

July 31, 2024
Japan Credit Rating Agency, Ltd. (hereinafter referred to as "JCR") will announce Green Finance Framework Evaluation Results asfollows:

NTT UD REIT Investment CorporationG r e e n F i n a n c e F ra m e w o r k
Affirmation
Overall
Evaluation

Green
Evaluation（Use of Proceeds）

Management,
Operation andTransparency Evaluation

Green 1(F)

g1(F)

m1(F)

Issuer/Borrower

NTT UD REIT Investment Corporation(Security Code: 8956)

Subject

NTT UD REIT Investment Corporation
Green Finance Framework

Evaluation Overview
NTT UD REIT Investment Corporation ﴾hereinafter referred to as “NUD”﴿ is a real estate
investment corporation established as a premier investment corporation in May, 2002 and listedon the Tokyo Stock Exchange ﴾J-REIT securities market﴿ in September, 2002. NTT Urban
Development Corporation ﴾hereinafter referred to as “NTT UD”﴿ made the asset managementcompany of NUD a wholly-owned subsidiary and became a sole sponsor ﴾the current asset
management company is NTT Urban Development Asset Management Corporation ﴾hereinafterreferred to as “UDAM”﴿﴿ in October 2020. Since then, NUD has intensified1its collaboration with
the NTT Group by acquiring rental residences owned by the NTT Group as well as its previous
initiatives, including acquisition of prime properties developed by the sponsor or flagshipproperties owned by the NTT Group ﴾its corporate name has changed to “NTT UD REIT——————————————
1

Its asset size under management increased from 261.8 billion yen in April 2021 to 307.2 billion yen on April 30, 2024 thanks tothe strengthened collaboration with the sponsor.
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Investment Corporation” on April 1, 2021.﴿ NUD has intended to mainly invest in office buildings
or residences in good locations by property type, in particular, in the Tokyo metropolitan area,
aiming to achieve steady growth and secure stable revenues in its assets under management in
the medium to long term.
NUD is aiming to realize sustainability through its business itself on the basis of the Sustainability
Vision established by NTT Urban Solutions, Inc., its sponsor's parent company. NUD has alsoestablished a sustainability policy and promoted its specific initiatives in consideration of theenvironment and society as it has recognized the importance of ESG awareness and worked toreflect the ESG consideration in all aspects of its real estate investment and management
operations from the perspective of placing investors’ interests over the medium to long term as
its top priority.
The subject of this evaluation is a Green Finance Framework ﴾hereinafter referred to as "thisFramework”﴿ defined by NUD so as to use proceeds financed through green bonds and green
loans ﴾hereinafter collectively referred to as "green finance"﴿ exclusively for projects withenvironmental benefits. JCR has evaluated whether this Framework has been aligned with theGreen Bond Principles2, the Green Loan Principles3, the Green Bond Guidelines4 and the Green
Loan Guidelines5. These principles and guidelines are voluntarily published by the International
Capital Market Association ﴾hereinafter referred to as "ICMA"﴿, Loan Market Association
﴾hereinafter referred to as LMA﴿, Asia Pacific Loan Market Association ﴾hereinafter referred to as"APLMA"﴿, Loan Syndications & Trading Association ﴾hereinafter referred to as "LSTA"﴿ andMinistry of Environment, respectively, and are non-legally binding. JCR however refers theseprinciples and guidelines as they are referred to as unified standards domestically and globallyat the current moment.
JCR assigned "Green1 ﴾F﴿" as an overall evaluation to NUD's Framework as a result of its Green
Finance Framework Evaluation on April 1, 2021. JCR is to review this Framework as NUD updated
it in response to the amendments made to the Building-Housing Energy-efficiency Labeling
System ﴾hereinafter referred to as "BELS"﴿ and the introduction of the new BELS standards, whichcame into effect in April 2024.
NUD planned to use the proceeds: ﴾1﴿ to acquire green buildings with a certain level ofcertification or higher or ﴾2﴿ to acquire properties with a certain level of energy efficiency, in thisFramework as of April 2021. The eligibility criteria for green buildings refer to properties thathave obtained or will obtain any of the followings: 3 Stars or more under DBJ Green Building
Certification; B+ Rank or higher under CASBEE for Construction ﴾New Construction, Existing
Building and Renovation﴿; or B+ Rank or higher under Certification for CASBEE for Real Estate; 3Stars or more under BELS Evaluation; or Silver Rank or higher under LEED certification. The
eligibility criteria for energy efficiency have covered properties with an energy reduction rate
﴾hereinafter referred to as "ERR"﴿ of 30 percent or more. JCR has evaluated that the eligibility
criteria set by NUD have been projects with environmental benefits.
Then, NUD changed the eligibility rank of BELS Evaluation and clarified the LEED certification
version for the aforementioned green building standards in July 2024. In light of the above——————————————ICMA ﴾2021, with June 2022 Appendix 1﴿ Green Bond Principles
https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/green-bond-principles-gbp/
3
LMA, APLMA and LSTA ﴾2023﴿ Green Loan Principle
https://www.lsta.org/content/green-loan-principles/4
Ministry of the Environment ﴾2022﴿ Green Bond Guidelines
https://www.env.go.jp/content/000062495.pdf
5Ministry of the Environment ﴾2022﴿ Green Loan Guidelines
https://www.env.go.jp/content/000062495.pdf
2

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mentioned, JCR has evaluated that the green buildings with the changes made havecontinuously had environmental benefits.
As with the previous evaluation, NUD has intended to raise green finance with clear
environmental targets and continued to appropriately identify and manage adverse
environmental effects and take appropriate measures if necessary in making decisions forinvestments in projects. NUD has continuously secured its structure for evaluation and approvalin the Investment Committee after planning and verification were made in accordance with theprocess outlined in the framework in selecting projects. The management of proceeds procured
through green finance has been adequately set out. All reporting details previously disclosed
has been appropriate and information disclosure based on this Framework will be continually
carried out hereafter, ensuring both the appropriateness and transparency of the disclosure
contents. Accordingly, JCR has evaluated that NUD's management and operation structure on
green finance has been adequately established and highly transparent in the same manner as
the previous evaluation.
Consequently, JCR assigned "g1﴾F﴿" for "Green Evaluation ﴾Use of Proceeds﴿," "m1﴾F﴿" for"Management, Operation and Transparency Evaluation" and "Green 1﴾F﴿" for “JCR Green Finance
Framework Evaluation ﴾Overall Evaluation﴿” based on JCR Green Finance Evaluation
Methodology.
JCR has evaluated that this Framework has met the standards for the items required in the Green
Bond Principles and the Green Loan Principles; and the Green Bond Guidelines and the Green
Loan Guidelines formulated by Ministry of Environment.

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Table of Contents■ Review Items■ Review ContentsI.

Use of Proceeds

II.

Selection Criteria and Processes for Use of Proceeds

III.

Management of Proceeds

IV. ReportingV.

Organizational Sustainability Initiatives■ Review Results ﴾Conclusion﴿

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Review Items
In this section, JCR will describe items that shall be confirmed in reviewing the framework. JCR
will mainly confirm items whose details have been changed since the previous evaluation in thereview as follows:1﴿ Use of Proceeds
Whether the category of eligible criteria and use of proceeds of green finance continuously havegreenness after changes are made.
2﴿ Selection Criteria and Processes for Use of Proceeds
Whether the goals to be achieved through green finance and the selection criteria of green
projects and their processes are continuously appropriate.
3﴿ Management of Proceeds
Whether the proceeds raised through green finance are certainly allocated to green projects,
and whether there are a scheme and an internal structure in which the allocation can be easily
tracked and managed.
4﴿ Reporting
Whether the reporting structure for green finance are still properly developed and operated.
5﴿ Organizational Sustainability Initiatives
Whether the management of the issuer continues to highly prioritize sustainability as a material
managerial issue.

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Review Contents
I. The Use of Proceeds
NUD has stipulated the use of proceeds in this Framework as follows: ﴾Changes made this time
are in bold.﴿ The only framework after changes were made is excerpted and stated below.
The Framework for Use of Proceeds ﴾Excerpt﴿
Eligibility Criteria
1. Green Building

Properties that have acquired or are scheduled to acquire certification from either of thefollowing third-party institutions:﴾1﴿ 3 to 5 Stars of the DBJ Green Building Certification
﴾2﴿ B+ to S Rank of CASBEE for Buildings ﴾New Construction/Existing Buildings/Renovation﴿ or
CASBEE Real Estate Certification
﴾3﴿ The Building Energy-efficiency Labeling System ﴾hereinafter referred to as "BELS"﴿: thefollowing levelsi ﴿ FY2016 standard: 3 to 5 Stars ﴾excluding “existing non-conformed buildings”﴿
ii﴿ FY2024 standard:
・Non-residential: Level 4 to Level 6
・Residences with renewable energy facilities: Level 3 to Level 6
・Residences without renewable energy facilities: Level 3 to Level 4
﴾4﴿ Silver to Platinum Rank of LEED Certification ﴾v4 or later in case of LEED BD+C﴿

* Properties for which BOMA360 Performance Program ﴾hereinafter referred to as"BOMA360"﴿ is acquired are included, assuming acquisition of the above certifications.
2. Energy-Saving Functions
Properties with an energy reduction rate ﴾hereafter referred to as "ERR"﴿ of 30 percent or
more.

Evaluation by JCR to the Framework
Of the environmental certification for buildings required by the eligibility criteria defined in thisFramework, NUD has changed the eligibility rank of the BELS evaluation and clarified the versionof the LEED certification.
The overview of the BELS evaluation whose descriptions were changed, which will have effects
on the contents in this Framework and the LEED certification whose version was clarified aredescribed below. JCR has evaluated that the standards stipulated in the revised eligibility criteria
including the aforementioned overview have covered properties that can be expected tocontinuously have significant environmental benefits.

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BELS ﴾Building-Housing Energy-efficiency Labeling System﴿
BELS is an acronym standing for Building-Housing Energy-Efficiency Labeling System and is asystem in which energy-saving performance is evaluated and certified by a third-party evaluation
organization for new and existing buildings. The envelope performance and primary energy
consumption are subject to evaluation, and it is required to have excellent energy-saving
performance for high evaluation. The evaluation results are classified by level based on Building
Energy Index ﴾hereinafter referred to as "BEI"﴿. BEI is a criteria to measure energy-saving
performance relative to a reference value, with design primary energy consumption as thenumerator and reference primary energy consumption as the denominator. Evaluation is madeon a five point scale ranging from one star to five stars under the conventional standard ﴾2016
standard﴿, and two stars satisfy the energy conservation standard.
The energy conservation standard has tightened for large non-residential buildings whose area
is 2,000 m2 or more since the revised Building Energy Efficiency Act came into effect on April 1,
2024. The new energy conservation standard varies depending upon the building use: 25 percent
or more reduction for factories, including logistics facilities and 20 percent or more reduction
for offices, schools, hotels or department stores. Based on this revision, the BELS at the time ofsale and lease was enhanced in April 2024, and a new standard ﴾2024 standard﴿ was introducedin BELS. Under the new standard, residential and non-residential buildings with renewableenergy facilities will be assessed on a scale of 7 from Level 6 ﴾an energy consumption reduction
rate of 50 percent or more﴿ to Level 0 ﴾an energy consumption reduction rate of less than 0
percent﴿, while residential buildings without renewable energy facilities will be assessed on ascale of 5 from Level 4 ﴾an energy consumption reduction rate of 30 percent or more﴿ to Level 0
﴾an energy consumption reduction rate of less than 0 percent﴿. Under the new standard, BELS
Level 4 or above ﴾an energy consumption reduction rate between 30 percent and 40 percent﴿ isprovided to buildings that meet the energy conservation standard of all non-residentialbuildings and an induction standard is applied to some uses. For residential buildings, theprevious standards remain unchanged; the energy consumption reduction rate is 0 percent ormore under the energy-saving standard and 20 percent or more under the induction standard.
BELS's criteria applied by NUD are to be energy efficient ﴾Residence: the BEI value of 0.8 or less,Non-residence: the BEI value of 0.75 or less﴿; therefore, JCR has evaluated that the criteria havebeen adequate as the use of proceeds.
LEED ﴾Leadership in Energy and Environmental Design﴿
LEED refers to an environmental performance evaluation system for buildings and urban
environments developed and operated by the U.S. Green Building Council ﴾USGBC﴿, a non-profit
organization. LEED is an acronym standing for Leadership in Energy and Environment Design,and the draft was published in 1996 and has been updated every few years since then. LEED v4
and v4.1 are currently operating and LEED v5 will be released in 2025.
The certification is categorized into six: BD+C ﴾Building Design and Construction﴿, ID+C ﴾Interior
Design and Construction﴿, O+M ﴾Building Operations and Maintenance﴿, ND ﴾Neighborhood
Development﴿, HOMES ﴾Home﴿ and CITIES ﴾City﴿. The certification levels are shown with the totalof points obtained for each item with Platinum ﴾80 points or more﴿, Gold ﴾60 to 79 points﴿, Silver
﴾50 to 59 points﴿ and Certified ﴾standard certification﴿ ﴾40 to 49 points﴿ from top to bottom.
Scoring high or achievement for items on energy conservation is often prerequisites forevaluation, and high energy efficiency is necessary so as to obtain a high certification level.

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JCR has, in light of the foregoing, determined that the certification level, Silver or higher, which
was set out as the eligible criteria by NUD is deemed as a certification level that can be accredited
to buildings with high energy efficiency and sufficient environmental benefits.
NUD has covered properties that have obtained the BOMA360 Performance Program﴾hereinafter referred to as "BOMA360"﴿ on the assumption that these properties will obtain theenvironmental certification stipulated in the eligibility criteria as mentioned earlier. BOMA360
refers to a certification program under which blue-chip buildings are accredited by the Building
Owners and Managers Association International ﴾BOMA﴿ and has been operated since 2009.
The evaluation system under BOMA360 consists of four basic requirements and six additional
requirements. The basic requirements include provision of operational management manuals,
energy assessment or others, and the requirements for all four items must be fulfilled. The
additional requirements consist of six categories as follows: ﴾1﴿ building management including
operations and maintenance; ﴾2﴿ life safety, security and risk management; ﴾3﴿ practical educationand training in the management including operations and maintenance; ﴾4﴿ energy-saving; ﴾5﴿
the environment and sustainability; and ﴾6﴿ tenant/community relations. In cases where abuilding obtains a certain level of points or more for respective items, it is accredited by
BOMA3606 . JCR characterizes BOMA360 as a certification system from various perspectives,
including management and has evaluated that it is free of problems to additionally include
BOMA360 in the eligibility criteria.

——————————————
6

Please refer to "BOMA360 Performance Program – For Domestic Buildings, Guidelines for How to Apply for BOMA360" formore details.
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II. Selection Criteria and Processes for Use of Proceeds
The selection criteria and processes for the use of proceeds stipulated in this Framework by NUD
are as follows: ﴾No particular changes have been made since the previous evaluation.﴿
The Framework for the Processes (Excerpt)
Selection Criteria

The project for which the proceeds will be used has been examined whether the project has
been aligned with the eligibility criteria with advice by Asset Manager of UDAM and thenevaluation and selection have been carried out.
Selection Processes

To raise proceeds through green finance with target projects as the use of proceeds is
proposed by a person in charge in Finance Department in UDAM, made its final decision by
President and CEO of UDAM and approved by a resolution of the Board of Directors of NUD,
which is composed of executive directors and supervisory directors.

Evaluation by JCR to the Framework
JCR has evaluated that the appropriateness of the selection criteria and their processes in thisFramework was adequate upon the previous evaluation. JCR has also evaluated that the selection
criteria and their processes have been continuously proper after confirming that no particularchanges have been made except for some minor ones in response to the revision made in thisFramework.

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III. Management of Proceeds
The management of proceeds stipulated in this Framework is as follows: ﴾No particular changes
have been made since the previous evaluation.﴿
The Framework for Management of Proceeds ﴾Excerpt﴿Proceeds Allocation Plan
The proceeds raised through green finance will be immediately or early allocated to acquireeligible green assets, repay borrowings required for the acquisition of eligible green assets orredeem investment corporation bonds issued to acquire eligible green assets.
Management of Proceeds
Finance Department in UDAM will track and manage proceeds with its accounting book so longas the green finance is outstanding.
Internal Control and External Audit
The allocation of proceeds procured through green finance to the target projects will be reported
to the Board of Directors of NUD ﴾Operation Report﴿.
The management of proceeds from green finance is subject to internal audit with the Head ofInternal Audit Office of UDAM as a responsible person. A structure shall be established toseparately submit the management of proceeds from green finance for external audit made byaccounting auditors as appropriate.
Management of Unallocated Proceeds
There will be no unallocated proceeds as the proceeds raised through green finance, in principle,
will be fully allocated to acquire such assets or repay all or part of the bonds/loans concerned
promptly after the issuance of bonds/loans. The proceeds will be managed in cash or cash
equivalents until the proceeds will be appropriated to acquire or repay all or part of suchbonds/loans.
In cases where bonds subject to evaluation are disqualified as the permitted use of proceeds asa result of disposition or physical damages prior to the redemption of these bonds even after the
allocation has been fully completed, the temporal unallocated proceeds will be managed in theportfolio.
* Portfolio management
NUD will confirm that the total balance of green finance for each fiscal period does not exceed
the green eligible debt upper limit ﴾total amount of assets that meet the eligible criteria
﴾acquisition price﴿ x LTV ﴾ratio of interest-bearing debt to total assets at the end of the most recent
fiscal period﴿﴿.

Evaluation by JCR to the Framework
JCR has evaluated that the cash management stated in this Framework was adequate upon theprevious evaluation. JCR has also evaluated that the cash management has been continuously
appropriate after confirming that no particular changes have been made except for some minor
ones, such as organizational names in response to the revision made in this Framework.

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IV. Reporting
The reporting defined by NUD in this Framework is as follows: ﴾No particular changes have been
made since the previous evaluation.﴿
The Framework for Reporting (Excerpt)
Allocation Reporting1.

In cases where there are any unallocated proceeds upon issuing green bonds or making
green loans, the unallocated balance and allocation plan will be disclosed.

2.

In cases where the assets subject to the use of proceeds are disposed prior to theredemption/repayment, the fact that the balance is managed in the portfolio, the green
finance balance and the permitted upper limit of the amount of green eligible debts will be
disclosed.

Impact Reporting (Disclosure Method/Frequency)
Impact reporting will be annually disclosed on the NUD's website.
Impact Reporting (KPI)
・Number of green eligible assets
・Number, type and certification level of environmental certification of acquired assets
・The following quantitative indices regarding green eligible assets
﴾Disclose within the scope of NUD’s energy management rights﴿
－Amount of energy consumption－Amount of CO2 emissions－Amount of water consumption

Evaluation by JCR to the Framework
JCR has evaluated that the reporting stated in this Framework was appropriate upon the previous
evaluation. JCR has also evaluated that the reporting contents have been continuously adequate
after confirming that no particular changes have been made to the reporting details in responseto the recent revision made in this Framework.
JCR has confirmed that NUD's reporting results to date have been properly carried out7basedon this Framework on its website.

——————————————
7

Proceeds allocation/portfolio management/acquisition of green building certification
https://nud-reit.co.jp/en/esg/greenfinance.html
Changes in actual results of quantitative indiceshttps://nud-reit.co.jp/ja/esg/environment.html
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V. Organizational Sustainability Initiatives
NUD is aiming to realize sustainability through its business itself on the basis of the Sustainability
Vision established by NTT Urban Solutions, Inc., its sponsor's parent company. NUD has alsoestablished a sustainability policy and promoted its specific initiatives in consideration of theenvironment and society as it has recognized the importance of ESG awareness and worked to reflect
the ESG consideration in all aspects of its real estate investment and management operations fromthe perspective of placing investors’ interests over the medium to long term as its top priority. As thefoundation of its ESG initiatives, NUD has established a sustainability policy and has been promoting
specific efforts in consideration of the environment and society.
NUD also identified its materiality based on such sustainability policy in November 20238. As the
background, NUD has primarily taken into consideration that it shall recognize the importance of ESG
consideration in business operations and simultaneously shall identify key issues to be addressed aspriorities for the environment, society and governance, respectively, and shall promote its initiatives
through the PDCA cycle to realize a sustainable society as corporate social responsibility. NUD has
intended to disclose the progress linked to each policy and goal and at the same time to pursue bothcontributions to the SDGs and achievement of its medium- to long-term growth through addressing
materiality.
NUD has set the following numerical targets for several items, including CO2 emissions or energy
consumption with regard to environmental goals. NUD also has set out its interim targets for 2030 tocover its own emissions for Scope 1 and 2 as a realistically controllable scope in terms of CO2 emission
reduction targets. Meanwhile, NUD has put forth its goals for net-zero reductions for all Scope 1, 2
and 3 emissions, including tenant-owned areas with respect to its long-term goal for 2050.
Table 1: Environmental Goals set forth by NUD9
CO2 Emissions

・42 percent reduction in greenhouse gas ﴾CO₂﴿ emissions ﴾Scope 1 and 2﴿ intensity by FY2030 ﴾vs.
FY2020)・Achieving net zero greenhouse gas ﴾CO₂﴿ emissions ﴾Scope 1, 2, and 3 total emissions﴿ by FY2050

EnergyConsumption

・To reduce intensity for the entire portfolio by 1 percent every year in the portfolio

Water
Consumption

・To reduce intensity for the entire portfolio not to exceed that of the previous fiscal year every
year

Waste

・To improve a recycling rate in the entire portfolio each fiscal year over the previous year

UDAM has installed the Sustainability Promotion Committee as a collegial body to promote its ESG
initiatives. In the Sustainability Promotion Committee, the President & CEO serves as the Chief
Sustainability Officer, the Head of Engineering and Sustainability Management Office serves as theSustainability Officer and heads of respective Offices serve as committee members. The Committee
convenes at least twice a year to review concrete targets and measures, track the status of progress andinstruct as required under the objective of promoting environmental awareness and other sustainability.

——————————————
NUD's materiality has been disclosed on its website
https://nud-reit.co.jp/ja/esg/materiality.html
9
NUD's website
https://nud-reit.co.jp/en/esg/environment.html
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UDAM has strived to cooperate with other companies in its Group by annually reporting NUD's
sustainability initiatives to the sponsor and by receiving approval as well as by regularly sharing information,such as sustainability efforts by the sponsor. UDAM has also strengthened its sustainability efforts from an
objective perspective by being advised for the ESG initiatives10by an external consulting company.
Together with these efforts, NUD has been highly evaluated by external organizations. NUD received thehighest rating of “5 Stars” for the 2nd consecutive year in GRESB Real Estate Assessment, which is basedon GRESB Overall Score and won a “Green Star” designation for the 7th consecutive year, indicating it had
been highly evaluated in both aspects of “Management Component” and “Performance Component”
regarding activities for environmental consideration or sustainability. NUD also received an “A”, the mostsuperior level for the 4th consecutive year concerning GRESB Public Disclosure – Score for Information
Disclosure.
Accordingly, JCR has evaluated that respective management teams of UDAM and NUD have positioned
environmental issues as highly prioritized managerial issues and have continued to appropriately develop
their structures to work on sustainability issues, including environmental issues in collaboration withdepartments with specialized knowledge and external experts.

——————————————
10

Concretely, the efforts include support for participating in GRESB, operations to calculate results of annual GHG emissions andsupport for setting GHG emission reduction targets.
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Review result (Conclusion)
JCR has confirmed that the details of this Framework, including the changes, are expected tohave significant environmental benefits in the green projects for which the proceeds will be used.
This framework has also met the criteria for the items required in the Green Bond Principles,Green Loan Principles, Green Bond Guidelines and Green Loan Guidelines.

Management, Operation and Transparency Evaluation

Green Evaluation

m1(F)

m2(F)

m3(F)

m4(F)

m5(F)

g1(F)

Green 1(F)Green 2(F)Green 3(F)Green 4(F)Green 5(F)g2(F)

Green 2(F)Green 2(F)Green 3(F)Green 4(F)Green 5(F)g3(F)

Green 3(F)Green 3(F)Green 4(F)Green 5(F)

N/A

g4(F)

Green 4(F)Green 4(F)Green 5(F)

N/A

N/A

g5(F)

Green 5(F)Green 5(F)

N/A

N/A

N/A

(Responsible analysts for this evaluation) Fuyuki Tamagawa, Yuki Nagayasu

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Important Explanation on this Evaluation
1. Assumptions, Significance and Limitations of JCR Green Finance Framework Evaluation
JCR Green Finance Framework Evaluation, which is granted and assigned by Japan Credit Rating Agency, Ltd. (hereinafterreferred to as "JCR") is a comprehensive statement of JCR's current opinion on the alignment with green projects as defined by
JCR and the extent of the initiatives to ensure management, operations and transparency on the use of proceeds with policies set
forth by the Green Finance Framework as the target evaluation. Therefore, it is not intended to evaluate the specific environmental
benefits, management/operation systems and transparency of individual bonds or borrowings to be executed based on thesepolicies concerned. In cases where a green finance evaluation is granted or assigned to an individual bond or borrowing based on
the said framework, a separate evaluation is required. JCR Green Finance Framework Evaluation neither proves environmental
benefits from the individual bond or borrowing executed based on the framework concerned nor does it assume responsibility forany environment benefits. JCR, in principle, will not directly measure environmental benefits of proceeds financed through theGreen Finance Framework although JCR will confirm the items measured quantitatively and qualitatively by the issuer and/or
borrower (hereinafter an issuer and borrower are collectively referred to as "a fundraiser") or a third party requested by thefundraiser. Green Equity may also be included in the evaluation only if all assets, in case of investment corporations, fall undergreen projects.
2. Methodology Used in this Evaluation
The methodology used for this evaluation is posted as "JCR Green Finance Evaluation Methodology" in the "Sustainable
Finance/ESGs" section on the JCR's website at https://www.jcr.co.jp/en/.
3. Relation with Conduct of Credit Rating Activities
The conduct of assigning and providing JCR Green Finance Framework Evaluation is performed by JCR as its related businessand is different from the conduct of credit rating activities.
4. Relation with Credit RatingThis evaluation is different from a credit rating and is not committed to providing a predetermined credit rating or making available
for inspection.
5. Impartiality in Evaluating JCR Green Finance Framework
There are neither capital ties nor personnel relationships that could create a conflict of interest between this evaluation and JCR.
■Disclaimer
The information contained in this document was obtained by JCR from fundraisers and accurate and reliable sources. Such information however may be mistaken for
artificial, mechanical or other reasons. Therefore, JCR does not make any representation or warranties, express or implied, as to the accuracy, result, eligibility, timeliness,completeness, marketability or fitness for any particular purpose of such information, and JCR assumes no responsibility for any errors, omissions or consequences using
such information. JCR shall not be liable for any loss of opportunity and extraordinary, indirect, incidental or consequential damages of any kind including any loss ofmoney, which may result from any use of such information under any circumstances, whether contractual liability, tort liability, negligence or other causes of liability,
and whether such damage is foreseeable or unforeseeable. JCR Green Finance Evaluation does not express any opinion on various risks (credit risk, price fluctuation
risk or market liquidity risk) on the green finance that is subject to evaluation. JCR Green Finance Evaluation is a comprehensive statement of JCR's current opinion anddoes neither represent facts nor make any recommendation regarding risk assessments or decision on the purchase, sale or hold of individual bonds or commercial papers.
JCR Green Finance Evaluation may be modified, suspended or withdrawn due to changes in information or lack of information. All rights pertaining to this document
including data from JCR Green Finance Evaluation are reserved by JCR. All or part of this document including data from JCR Green Finance Evaluation is prohibitedfrom being reproduced, modified or otherwise altered without the permission of JCR.

■Terminology
JCR Green Finance Framework Evaluation: The assessment of the extent to which proceeds financed based on the Green Finance Framework are allocated to green
projects as defined by JCR and of the degree of management, operation and transparency on the use of proceeds for the said Green Finance. The evaluation is made ona five scale in the order from top to bottom with evaluation symbols of Green 1 (F), Green 2 (F), Green 3 (F), Green 4 (F) and Green 5 (F).

■Status of Registration as an External Evaluator of Sustainability Finance・Ministry of the Environment: Registered as an external reviewer for Green Finance・ICMA (observer registration as an external evaluator with the International Capital Markets Association)
・UNEP FI Positive Impact Financial Principles Working Group Member
・Climate Bonds Initiative Approved Verifier■Other Registration Status as Credit Rating Agency
・Credit Rating Agency: the Commissioner of Financial Services Agency (Credit Rating) No. 1
・EU Certified Credit Rating Agency
・NRSRO: JCR has registered with the following four of the five credit rating classes of Nationally Recognized Statistical Rating Organization ("NRSRO") as definedby the U.S. Securities and Exchange Commission: (1) financial institutions, broker/dealers, (2) insurance companies, (3) general business corporations and (4)government and local governments. In cases where disclosure is required based on Rule 17g-7(a) of the Securities and Exchange Act, such disclosure is attached toNews Release posted on the JCR's home page at https://www.jcr.co.jp/en/.

■For all other inquiries, please contact us below
TEL: 03-3544-7013 FAX: 03-3544-7026
Information Service Department

Japan Credit Rating Agency, Ltd.
Jiji Press Building, 5-15-8 Ginza, Chuo-ku, Tokyo 104-0061, Japan
Tel. +81 3 3544 7013, Fax. +81 3 3544 7026

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