PRINCIPAL ADVERSE IMPACT STATEMENT
The following is the adverse sustainability impact statement of Mitsui Fudosan Logistics ParkInc. (“MFL”) pursuant to Regulation (EU) 2019/2088 (“SFDR”). We have no employees inaccordance with the prohibition on having employees under the Act on Investment Trusts andInvestment Corporations of Mitsui Fudosan Logistics REIT Management Co., Ltd, (the “AssetManager”), to manage and operate the properties in our portfolio. MFL and the Asset Manager
are hereinafter referred to collectively as “we”, “us” or “our”.
1. Summary
We consider principal adverse impacts of our investment decisions on sustainability factors. The
present statement is our consolidated statement of the principal adverse impacts on sustainabilityfactors (“PAI”). The statement covers the reference period from February 1, 2021 to July 30,
2021. The statement will be reviewed at least once during every year.
The Mitsui Fudosan Group (the “Group”), to which we belong, is committed to social andeconomic development as well as global environmental preservation under the principles ofharmony and coexistence, while working to link diverse values and achieve sustainable society
as represented by its “ ” corporate logo. Under the Group’s “” principle, the Group
recognizes the need to create neighborhoods that remain in tune with global environmental
concerns. This principle therefore reflects the Group’s aim to establish a society that enriches
both the people and the planet. Pursuant to the Group’s long-term management vision, VISION
2025, the Group is working to achieve sustainable society by addressing environmental, socialand governance, or ESG, issues while driving continual profit growth. MFL and the AssetManager share the Group’s ESG management principles and are proactively implementing ESGinitiatives.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts ofinvestment decisions and advice that result in negative effects on sustainability factors”, withsustainability factors referring to environmental, social and employee matters, respect for humanrights, anti‐corruption and anti‐bribery matters as defined in article 2 (24) of SFDR.
We believe that investment decisions that negatively affect climate or other environment-relatedresources, or have negative implications for society, can have a significant impact to risk andvalue creation for our unitholders. To this end, we consider PAI of our investment decisions
throughout all major steps of the investment decision and property management process
throughout the lifecycle of the properties in our portfolio.
Please note that SFDR requirements, including the scope of their application to issuers outside
the European Economic Area, continue to evolve. We are therefore taking a principles-based
approach to compliance with the SFDR disclosure standards, which are subject to change.
2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators, bothpositively and adversely. We aim to manage the risk connected to PAI from our investment
decisions in several ways, including general screening criteria, due diligence and our ESG
tk-831600

initiatives. Some of the PAI indicators listed below are currently already being monitored andreported. As the availability of data improves, it is our intention that more indicators will beadded.
Table 1
Principal adverse sustainability impacts statement
We do not invest in investee companies, but invest in real estate. As adverse sustainability
indicators 1-16 as contained in the RTS pertain to investee companies, these are not included inthis PAI statement, which pertains to real estate investments.
Indicators applicable to investments in real estate assets
Adversesustainability
indicator

MetricImpact in 2020

Impact in 2019

Explanation

Actions taken

Fossilfuels

17.
Exposure
to fossil
fuels
through
real estate
assetsShare ofinvestments
in real estate
assetsinvolved intheextraction,
storage,transport or
manufactureof fossil fuels

N/A

N/A

We do notinvest in realestate assets
involved in theextraction,storage,transport or
manufacture offossil fuels.

N/A

Energyefficiency

18.
Exposure
to energyinefficient
real estate
assetsShare ofinvestments
in energyinefficient
real estate
assets

As of December
31, 2020, 19.9%
of ourproperties,including
properties inwhich we holdquasi coownershipinterests, werenot “GreenBuildings” (asdefined to theright) based ongross floor area
(we countproperties withexpired
certifications
unless there isreason tobelieve thatsuch properties

As of December
31, 2019, 28.4%
of ourproperties,
includingproperties inwhich we holdquasi coownershipinterests, werenot “GreenBuildings” (asdefined to theright) based ongross floor area
(we countproperties withexpired
certifications
unless there isreason tobelieve thatsuch properties

To track theenvironmental
performanceof ourproperties, werely on
certifications
issued bythird-party
organizations,such as theDevelopment
Bank ofJapan’s(“DBJ”) Green
Building
Certification,
Building
Energyefficiency
LabelingSystem(“BELS”)

We implement
as appropriate
measures toreduce theirenvironmental
impactfollowingacquisition,including byobtaining
environmental
certifications
such as DBJ orCASBEE.
After receiving
4 stars from
BELS forYokohama
Daikoku
Building, we
installed LED
lighting on theproperty,

tk-831600

are no longer
environmentallyfriendly to thesame degree asGreenBuildings).

are no longer
environmentallyfriendly to thesame degree asGreenBuildings).

certification,and otherequivalentcertifications.
We call our
property thatreceives any
suchcertifications a“GreenBuildings”.
With respect toDBJ
certifications,
we consider aproperty tohave sufficientenvironmental
certification if
it received 3stars or higher
out of DBJ’s
5-star ranking
system. With
respect to
BELS, weconsider aproperty tohave sufficientenvironmental
certification if
it received 4stars or higher
out of BELS’
5-star ranking
system.

which resulted
in ZEB Readystatus. We are
steadilyworking
towardacquiring
DBJ/BELS
certifications
so that 100%of our logistics
properties will
be certified.

Table 2
Additional climate and other environment-related indicators
Adversesustainability
impactAdverse sustainability impact (qualitative or quantitative)

MetricIndicators applicable to investments in real estate assets
Waste

20. Waste production in operations
To make effective use of limited water resources, we promote efforts
to save water and have introduced water-saving equipment at ourproperties (3 properties). We also contribute to the establishment of arecycling-oriented society with 3R (reduce, reuse and recycle) efforts

tk-831600

Share of real estate
assets not equippedwith facilities forwaste sorting and notcovered by a waste

to curb the use of wastewater and waste materials discharged frombuildings. We are working with tenants to raise awareness of our 3R
and water conservation efforts by displaying posters in buildings (9properties with such posters).

recovery or recycling
contract
All of our properties
have been equippedwith facilities for
waste sorting and arecovered by a waste
recovery or recycling
contract.

Table 3
Additional indicators for social and employee, respect for human rights, anti-corruption and antibribery matters
SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTIBRIBERY MATTERS
Adversesustainability
impactAdverse sustainability impact (qualitative or quantitative)

MetricIndicators applicable to investments to the Asset Manager or tenants
4. Lack of a supplier code of conduct
We require vendors in our supply chain not only to efficiently
deliver to us goods and services, but also to consider their impact
on the environment and society. When purchasing goods orservices and/or selecting a vendor, we consider their impact onsustainability and the vendor’s sustainability initiatives before
making decisions on whether to make the purchase or enter into a
relationship with the vendor.

Share of investments ininvestee companies
without any suppliercode of conduct (againstunsafe working
conditions, precarious
work, child labor andforced labor)
The Asset Manager has asupplier code of conduct.

5. Lack of grievance/complaints handling mechanism related to
employee matters
In cooperation with the Group and tenants, we conduct a tenantsatisfaction survey once every 3 years in order to gather
feedback, which is used to ensure that our properties provide
comfortable, safe and secure space for tenants and other facility
users.

Share of investments ininvestee companies
without anygrievance/complaints
handling mechanism
related to employee
matters
The Asset Manager has agrievance/complaints
handling mechanism,
which is also available
for all of our tenants.

tk-831600

6. Insufficient whistleblower protection
The Asset Manager has established reporting lines in accordancewith the Internal Consultation and Reporting System Rules,
under which the Chief Compliance Officer (or the President, formatters related to the Chief Compliance Officer) or a designatedlaw firm is available to receives information on organizational orindividual violations of law, including actual or potential
violations of applicable law, corporate ethics or the AssetManager’s internal rules such as the Compliance Manual. The
Internal Consultation and Reporting System Rules require thecompany to take all possible measures to protect thewhistleblower and prohibit dismissal or other disadvantageous
treatment of the whistleblower, as well as to determine andimplement appropriate measures in response to the content of thereport.
7. Incidents of discrimination
We and the Asset Manager prohibit discrimination and unfair
treatment based on reasons unrelated to job responsibilities,
including race, nationality, place of origin, religion, ideologicalbelief, gender, age, disability, sexual preference, gender identity,educational background, marital status and employment status. Inaddition, we do not tolerate any form of harassment in theworkplace, including sexual harassment and power harassment.
The Asset Manager holds regular training on harassment anddiscrimination for employees.

Share of investments inentities without policies
on the protection ofwhistleblowers
All of the AssetManager’s officers andemployees are provided
whistleblower protection.

1. Number of incidentsof discrimination
reported in investee
companies expressed as aweighted average
No discrimination has
been reported by any of
the Asset Manager’sofficers or employees.
2. Number of incidents
of discrimination leading
to sanctions in investee
companies expressed as aweighted average
No discrimination has
been reported by any of
the Asset Manager’sofficers or employees.

Human Rights

9. Lack of a human rights policy
We and the Asset Manager have adopted the sustainableprocurement standards and human rights policy established byMitsui Fudosan Co., Ltd, our sponsor (the “Sponsor”). In
addition, we and the Asset Manager support the Universal
Declaration of Human Rights and the International Covenant on
Human Rights, and support and respect the fundamental rights
related to labor set forth in the ILO Declaration on Fundamental
Principles and Rights at Work.

tk-831600

Share of investments inentities without a humanrights policy
The Asset Manager has ahuman rights policy.

Anti-corruption
and anti-bribery

15. Lack of anti-corruption and anti-bribery policies
We and the Asset Manager have established the Compliance
Manual to prohibit entertaining or giving gifts to business
partners or related parties exceeding moderation, entertaining or
giving gifts for the purpose of influencing the judgment ofanother party, and entertaining or giving gifts to public officers oremployees.
The Compliance Manual also prohibits receiving entertainment
or gifts exceeding moderation within the company or frombusiness partners or related parties, or accepting, requesting orpromising bribes (entertainment or gifts exceeding moderation)
to business partners or related parties, or making special
arrangements based on the foregoing.
17. Number of convictions and amount of fines for violation ofanti-corruption and anti-bribery laws
We and the Asset Manager have established the Compliance
Manual to prohibit entertaining or giving gifts to business
partners or related parties in excess of moderation, entertaining or
giving gifts for the purpose of influencing the judgment of theother party, and entertaining or giving gifts to public officers oremployees.
The Compliance Manual also prohibits receiving entertainment
or gifts exceeding moderation within the company or frombusiness partners or related parties, or accepting, requesting orpromising bribes (entertainment or gifts that exceed moderation)
to business partners or related parties, or making special
arrangements based on the foregoing.

Share of investments inentities without policies
on anti-corruption andanti- bribery consistent
with the United Nations
Convention against
Corruption
The Asset Manager has
compliance policies
addressing anticorruption and antibribery that apply to allof its officers andemployees.
Numbers of convictions
and amount of fines forviolations of anticorruption and antibribery laws by investee
companies
Neither the AssetManager nor, to the bestof our knowledge,
tenants have been subject
to any convictions orfines for violations ofanti-corruption or antibribery laws.

For descriptions of actions which MFL takes and will take with respect to the PAI indicators,
please refer to our ESG website with respect to MFL: https://www.mflpr.co.jp/en/sustainability/index.html
3. Description of policies to identify and prioritize principal adverse sustainability impacts
Subject to data availability, we monitor the selected PAI indicators for the existing properties inour portfolio.
Prior to our investment in a property, we conduct due diligence review of the property, including
ESG due diligence, which includes selected PAI indicators. The due diligence findings related toselected PAI indicators are taken into consideration as one of the factors in making acomprehensive investment decision.

tk-831600

In January 2021, we strengthened our funding base through the establishment of a Sustainable
Finance Framework, which allows us to expand our investor base to include those interested in
ESG investment and financing and further promote our sustainability.
To track the environmental performance of our properties, we rely on “Green Buildings”
certifications. With respect to DBJ certifications, we consider a property to have sufficientenvironmental certification if it received 3 stars or higher out of DBJ’s 5-star ranking system.
With respect to Comprehensive Assessment System for Built Environment Efficiency(“CASBEE”) certification, we consider a property to have sufficient environmental certification
if it received an A Rank or higher out of the CASBEE ranking system featuring Rank S(excellent), Rank A (very good), Rank B+ (good), Rank B- (slightly inferior) and Rank C(inferior). With respect to BELS certification, we consider a property to have sufficientenvironmental certification if it received a 4 stars or higher out of BELS’ 5-star ranking system.
With respect to Zero Energy Building (“ZEB”) certification, we consider a property to havesufficient environmental certification if it received ZEB Ready or higher out of the ZEB ranking
system featuring ZEB, Nearly ZEB, ZEB Ready, and ZEB Oriented. ZEB Ready is awarded tobuildings that achieve primary energy reduction of 50% or higher. As of July 31, 2021, 91.7% ofour properties, including properties in which we hold quasi co-ownership interests, were Green
Buildings and 49.6% of our properties, including properties in which we hold quasi coownership interests, had obtained ZEB based on gross floor area (including properties withexpired certifications unless there is reason to believe that such properties are no longer
environmentally friendly to the same degree as Green Buildings).
Under our Sustainable Finance Framework, a property that has received or is expected to receive
any of the following certifications from a third-party certification program is an “Eligible GreenAsset”:
1) DBJ Green Building Certification: 3 stars or higher (top 3 certification levels)
2) BELS Certification: 3 or more (top 3 certification levels)
3) CASBEE Appraisal: B+ or higher (top 3 certification levels)
4) LEED Certification: Silver, Gold or Platinum (top 3 certification levels)
5) Top 3 certification levels from any other third-party certification program
When conducting due diligence review of a property, we also consider the property’s socialvalue. Under our Sustainable Finance Framework, any new or existing property that meets 2 ormore of the following criteria is an “Eligible Sustainable Asset”:
Urban development: The land contributes to urban development (machi-zukuri) of thesurrounding area such as by providing recreational green space that meets the needs ofthe local community;

Access to essential services for daily life: (i) real estate with adequate countermeasures todisasters, for example, based on its use as an evacuation center, or has emergency

tk-831600

supplies for local residents; or (ii) real estate that contributes to the local community, forexample, based on its use as an authorized nursery center; and

Socio-economic improvement and empowerment: Contributions to local community andeconomy such as through tenants’ job creation and use of local companies in construction
projects.

For further information, please refer to our ESG website: https://www.mflpr.co.jp/en/sustainability/index.html
4. Engagement policies
Due diligence and screening
The Asset Manager’s investment decision-making process involves assessment of material ESGrelated risks and opportunities to ensure that our sustainable investment strategy is implemented.
With each acquisition opportunity, we and the Asset Manager review ESG-related due diligence
findings and take into account the acquisition of environmental certifications or future potential
to obtain them and energy efficiency assessment. These findings are required to be considered by
the Management Committee chaired by the President of the Asset Manager before a final
decision is made on the investment. We will not invest in properties which have environmental
hazardous substances or land pollution beyond an established threshold.
We monitor energy consumption, electricity consumption, water consumption, waste as well as
CO2 emissions, the data with respect to which are reviewed by outside experts on a regular basis
to reduce our environmental burden. We also conduct a tenant satisfaction survey once every 3
years to gather feedback used to ensure that our properties provide comfortable, safe and secure
space for tenants and other facility users.
Engagement
We have standardized environmental provisions, which we refer to as “Green Lease” provisions,in the leases with our tenants. Our Green Lease provisions include a clause for our tenants tocollaborate with us to implement measures for energy conservation and environmental
preservation. Our Green Lease provisions require the tenant to provide us with data on the use of
the property (including, but not limited to, data on electricity, gas, and water used in theproperty). We strive to proactively increase the number of lease agreements with Green Lease
provisions by negotiating with new tenants or, at the time of lease renewal, existing tenants.
In the procurement of goods and services for our businesses, we require vendors in our supply
chain not only to efficiently deliver to us goods and services, but also to consider their impact onthe environment and society. When purchasing goods or services and/or selecting a vendor, weconsider their impact on sustainability and the vendor’s sustainability initiatives before making
decisions on whether to make the purchase or enter into a relationship with the vendor.

tk-831600

5. References to international standards
The Sponsor has joined the United Nations Global Compact, endorsed the Task Force on
Climate-related Financial Disclosure, and signed RE100. We and the Asset Manager share thesame ESG principles expressed through these international standards.

tk-831600