STATEMENT ON PRINCIPAL ADVERSE IMPACTS OF INVESTMENT DECISIONSON SUSTAINABILITY FACTORS
Product name: MIRAI Corporation
Legal entity identifier: 353800HQCYM7P10R9D93
The following is the adverse sustainability impact statement of MIRAI Corporation (“MIRAI”) pursuant toRegulation (EU) 2019/2088 (“SFDR”). MIRAI has no employees in accordance with the prohibition on having
employees under the Act on Investment Trusts and Investment Corporations of Japan, and relies on Mitsui
Bussan & IDERA Partners Co., Ltd. (the “Asset Manager”) to manage and operate the properties in MIRAI’s
portfolio. MIRAI and the Asset Manager are hereinafter referred to collectively as “we”, “us” or “our”unless
noted otherwise. References to “fiscal year” or “FY” are to the 12 months began or beginning April 1 of theyear specified in line with the fiscal year of the Asset Manager, which we use for the purpose of collecting andcompiling ESG-related performance data, unless noted otherwise.
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.
1. Summary
Pursuant to Article 4 of the Delegated Regulation C(2022)1931 supplementing SFDR (the “SFDR DelegatedRegulation”), MIRAI is required to publish on its website the information referred to therein covering the periodof one calendar year. MIRAI is a Japanese real estate investment trust, commonly known as J-REIT, and has noemployees, relying on the Asset Manager for the management and operation of its properties. The Asset Manager
does not operate based on a calendar year, but operates based on fiscal year ending in March of ever year. A
recalculation and translation of the data into the reference period of one calendar year would most likely leadto inaccuracies and would therefore provide a potentially less accurate overview of the required information
than using the approved and validated data for the period from April 1, 2023 to March 31, 2024. This reference
period is sufficiently compatible with, and shows results that do not materially differ from, those that would be
produced using the calendar year-based reference period noted in the SFDR Delegated Regulation.
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 sustainability factors (“PAI”). The
statement covers the reference period from April 1, 2023 to March 31, 2024. The statement will be reviewed atleast once during every twelve-month period ending on March 31 of each year.
We believe that our sustainability initiatives are essential for our sustainable growth. We improve long-term
returns of investors and contribute to the realization of sustainable society and urban development byimplementing initiatives that address social issues. Under our sustainability policies and framework, we, incollaboration with the stakeholders such as property managers, tenants and people locally involved, take actions
on climate change, including energy conservation, and being resilient in times of disasters.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts of investment decisions
and advice that result in negative effects on sustainability factors,” with sustainability factors referring toenvironmental, social and employee matters, respect for human rights, 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-related resources, or
have negative implications for society, can have a significant impact to risk and value creation for MIRAI’s
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 MIRAI’s
portfolio.
2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators, both positively andadversely. 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 initiatives. Some of the PAI indicators listed below are
currently already being monitored and reported. As the availability of data improves, it is our intention that moreindicators will be added.

Table 1
Description of the principal adverse impacts on sustainability factors
MIRAI does not invest in investee companies, but invests in real estate. As adverse sustainability indicators 1-16 as contained in Table 1 of Annex 1 of the
SFDR Delegated Regulation pertain to investee companies, these are not included in this PAI statement, which pertains to real estate investments.
Indicators applicable to investments in real estate assets
Adversesustainability
indicator

MetricImpact in
FY2023

Impact in
FY2022

Impact in
FY2021

Explanation

Actions taken, and actions
planned and targets set for
the next reference period

Fossilfuels

17.
Exposure
to fossil
fuels
through
real estate
assetsShare ofinvestments inreal estate
assets involvedin theextraction,
storage,transport or
manufacture offossil fuels

N/A

N/A

N/A

MIRAI does not invest inreal estate assets involvedin the extraction, storage,transport or manufacture offossil fuels.

N/A

Energyefficiency

18.
Exposure
to energyinefficient
real estate
assetsShare ofinvestments inenergyinefficient realestate assets

As of March
31, 2024,
28.6% ofMIRAI’s
properties did
not have therequisite
environmental
certifications
based on grossfloor area,taking into
account the coownership

As of March
31, 2023,
39.3% ofMIRAI’s
properties did
not have therequisite
environmental
certifications
based on grossfloor area,taking into
account the coownership

As of March
31, 2022,
60.8% ofMIRAI’s
properties did
not have therequisite
environmental
certifications
based on grossfloor area,taking into
account the coownership

To track the environmental
performance of MIRAI’s
properties, we rely on
certifications issued bythird-party organizations,such as the Development
Bank of Japan’s (“DBJ”)
Green Building
certification, theComprehensive
Assessment System for
Built Environment
Efficiency (“CASBEE”)
certification, Leadership in

We implement as
appropriate measures toreduce their environmental
impact following
acquisition, including by
obtaining environmental
certifications such as DBJ
Green Building certification
and by reducing energy
consumption and CO2
emissions throughinstallation of LED
lightning and other energyinterests held
by MIRAI.

interests held
by MIRAI.

interests held
by MIRAI.

Energy and Environmental
Design (“LEED”)
certification, Building
Energy-efficiency Labeling
System (“BELS”)
certification, and otherequivalent certifications.

efficiency equipment at
MIRAI’s properties.

Table 2
Additional climate and other environment-related indicators
MIRAI does not invest in investee companies, but invests in real estate. As additional climate and otherenvironment-related indicators 1-17 as contained in Table 2 of Annex 1 of the SFDR Delegated Regulation
pertain to investee companies, these are not included in this PAI statement, which pertains to real estate
investments.
CLIMATE AND OTHER ENVIRONMENT-RELATED INDICATORS
Adversesustainability
impactAdverse impact on sustainability factors (qualitative or
quantitative)

MetricIndicators applicable to investments in real estate assets
Greenhouse gas
emissions

18. GHG emissions
We monitor and track GHG emissions by estimating GHG
emissions based on the energy consumption (including gas, fueland electricity consumption) of MIRAI’s properties (excluding
properties that were sold or acquired during the relevant period andfor which data is difficult to obtain) and the adjusted emissions
coefficients published by the Ministry of the Environment of Japan.
Based the estimated GHG emissions, we also monitor and track
GHG emission intensity based on gross floor area of MIRAI’s
properties by factoring in the annual average oocupancy rate.
Based on this method, Scope 1, Scope 2, Scope 3 and total GHG
emissions as well as GHG emissions intensity generated by
MIRAI’s properties were:GHG
emissions(Unit)
Scope 1(t-CO2)
Scope 2(t-CO2)
Scope 3(t-CO2)Total(t-CO2)
Intensity(t-CO2/m2)

Energyconsumption

FY2023

FY2022

FY2021

546

739

997

11,738

11,877

13,46034,84633,81633,01847,131

46,43347,475

0.08

0.08

0.08

We aim to reduce GHG emissions intensity of MIRAI’s portfolio
by 5% by the end of FY2025 from the level in FY2018 (0.11 tCO2/m2).
19. Energy consumption intensity
We monitor and track energy consumption (including gas, fuel andelectricity consumption) of MIRAI’s properties (excluding

Scope 1 GHG
emissions generated
by real estate assets
Scope 2 GHG
emissions generated
by real estate assets
Scope 3 GHG
emissions generated
by real estate assets
Total GHG
emissions generated
by real estate assets

Energy consumptionin MWh of owned

properties that were sold or acquired during the relevant period andfor which data is difficult to obtain). We also monitor and trackenergy consumption intensity based on gross floor area of MIRAI’s
properties by factoring in the annual average oocupancy rate
Based on this method, energy consumption and energy
consumption intensity of MIRAI’s properties were:
Item(Unit)
Total energy
consumption(MWh)
Energyconsumption
intensity(MWh/m2)

FY2023

FY2022

FY202189,53890,504102,388

0.16

0.17

0.19

We aim to reduce energy consumption intensity of MIRAI’s
portfolio by 5% by the end of FY2025 from the level in FY2018(0.22 MWh/m2).

real estate assets per
square meter

Table 3
Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery
matters
MIRAI has no employees in accordance with the prohibition on having employees under the Act on Investment
Trusts and Investment Corporations of Japan, and relies on the Asset Manager to manage and operate theproperties in MIRAI’s portfolio. Accordingly, additional indicators for social and employee, respect for humanrights, anti-corruption and anti-bribery matters in this PAI statement pertain to the Asset Manager and thetenants of the properties in MIRAI’s portfolio, to the extent available.
SOCIAL AND EMPLOYEE, RESPECT FOR HUMAN RIGHTS, ANTI-CORRUPTION AND ANTIBRIBERY MATTERS
Adversesustainability
impactAdverse impact on sustainability factors (qualitative or
quantitative)

MetricIndicators applicable to investments to the Asset Manager or tenantsSocial andemployeematters

2. Rate of accidents
The Asset Manager has established an effective system torespond to accidents. If an officer or employee witnesses anaccident, they are required to report it to the person in charge,
who may be the Compliance Officer or an executive of the AssetManager. Upon receiving the report, the Asset Manager develops
a plan to deal with the accident by consultating with lawers andtaking other appropriate means. After the accident is resolved, theresults and a plan to prevent recurrence are reported to the person
in charge. A serious accident is reported to the board of directorsof the Asset Manager.

Rate of accidents ininvestee companies
expressed as a weighted
average

No accident involving the Asset Manager’s officers or employees
has occurred during FY2023, FY2022 and FY2021.
If we obtain information regarding an accident involving any of
the tenants in MIRAI’s properties through a property manager oranother related party, we may make that information known
within the Asset Manager upon determination by the Managing
Director of the Investment Management Division. We respond tosuch an accident in the same way as an accident involving theAsset Manager’s officers or employees.
To the best of our knowledge, no accident involving any of thetenants in MIRAI’s properties has occurred during FY2023,
FY2022 and FY2021.

For descriptions of actions which MIRAI takes and will take with respect to the PAI indicators, please refer toour ESG website: https://3476.jp/en/esg/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 properties in MIRAI’s 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 to selected PAI indicators
are reported and reviewed prior to the investment decision. In order to conduct ESG-friendly management while
maximizing the value of MIRAI’s properties, we have taken into consideration ESG factors in our investment
and asset management processes. In particular, in 2021 we established a green finance framework (“Green
Finance Framework”). Funds raised through green financing will be used for acquisition of green buildings or
expenditures that meet the following eligibility criteria or the refinancing of green financing bonds. The Japan
Credit Rating Agency (JCR) has evaluated the appropriateness of the framework and assigned it JCR’s highest
rating, “Overall Evaluation: Green 1(F)”.
(1) Green Eligibility Criteria 1: Green building. Properties that have acquired or are expected toacquire certifications from third-party organizations by satisfying one of criteria (a) to (d) below.
(i) 3-star DBJ Green Building certification or higher(ii) B+ CASBEE certification or higher(iii) Silver level LEED certification or higher(iv) 3-star BELS certification or higher(2) Green Eligibility Criteria 2: Renovation. Renovation work for environmental improvements(which is expected to reduce consumption or emissions by 30% or more in comparison to before
renovation).
For further information, please refer to our ESG website: https://3476.jp/en/esg/index.html
4. Engagement policies
Due Diligence and Screening
As part of property due diligence review conducted before acquiring a property, the Asset Manager considers
the property’s environmental and social risks such as soil contamination, impact to biodiversity, indoor air
quality, environmental impact of material and equipment used at the property, building safety and the property’s
impact on health. For example, we retain third-party experts to review a range of matters including environmental
risk, PCBs and asbestos, soil contamination, conditions of facilities, other factors affecting human health suchas exhaust air, seismic risk, flood risk and legal compliance.
In addition, we monitor and track energy consumption, GHG emissions and water consumption and waste at
MIRAI’s properties.
We have selected PAI indicators GHG emissions and energy consumption intensity as our PAI indicators in
Table 2 above with our belief that reduction of GHG emissions and energy consumption is one of the major
environmental challenges confronted by the world. We endeaver to reduce GHG emissions and energy
consumption based on our environmental performance targets, which we have established to manage theenvironmental impact of our real estate operations and to contribute to environmental conservation in accordancewith our Sustainability Policy.

We also have selected rate of accidents as our PAI indicator in Table 3 above in recognition of the importanceof taking initiatives to minimize social risks associated with real estate such as safety and health risks as well as
to promote the Asset Manager’s employees’ health and establish a safe working environment.
Engagement
We aim to include environmental provisions, which we refer to as “Green Lease” provisions, in the lease
contracts with the tenants in MIRAI’s portfolio. Our Green Lease provisions include clauses requiring the tenants
to collaborate with us in implementing various environmental measures, including on energy savings efforts,
disclosure of environmental data and educating employees on how to reduce their environmental burden. As of
March 31, 2024, 146 leases with our tenants (12 out of 43 properties) contained such Green Lease provisions.
At Hotel Sunroute Niigata, we have executed a memorandum of understanding with a tenant pursuant to which
we cooperate with the tenant to promote environmental measures, including sharing the cost of installing highefficiency air conditioning and lighting equipment.
The Asset Manager aims to tackle environmental and social issues together with stakeholders, while striving toachieve efficient operation and tenant satisfaction and contributing to local communities through strong
relationships with stakeholders such as tenants, local community members, property managers, operators andsuppliers. For example, we distribute our Sustainability Guide to the tenants, seek their cooperation in our ESG
initiatives, including for when they renovate space exclusively occupied by the tenants, and raise ESG awarenessamong tenants by displaying ESG-related videos and posters at MIRAI’s properties.
5. References to international standards
The Asset Manager is a signatory to Principles for Financial Action for the 21st Century (the “PFA21”) and aims
to conduct responsible investment management through business activities that are consistent with the PFA21.
PFA21 is a set of action guidelines for Japanese financial institutions that summarizes the responsibilities androles necessary for the formation of a sustainable society.
The Asset Manager registered for TOKYO Work-Style Reform Declaration in September 2020 in order toimprove the work-life balance of its employees. TOKYO Work-Style Reform Declaration is a program operated
by the Tokyo Metropolitan Government, sets and announces targets and details of measures to be taken to reduce
long working hours and promote the use of annual paid leave and other benefits.
6. Historical comparison
See Table 1, Table 2 and Table 3 above.