ESG report
2023.10

Contents

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

2

Contents
About This ESG Report

About us
Overview of the investment corporation

3

Message from Top Management

4

Overview of the asset management company /IRM-Endorsed Initiatives

5

Sustainability Policy and Structure

6

External Assessment and Certification

7

Materiality and Targets
Environment

8●Advance Residence Investment Corporation (“ADR”), Advance Logistics Investment

Corporation (“ADL”), and their asset management company, ITOCHU REIT Management
Co., Ltd. (“IRM”) strive to disclose the status of its sustainability initiatives. This report
was written to provide information regarding sustainability policies and theimplementation status of its initiatives as disclosed on ADR, ADL and IRM websites toour stakeholders in an easy-to-understand manner.

●The disclosure in this report was prepared with reference to the GRI Standards（GRI 1:

Foundation 2021）. For comparisons, please refer to the Comparative Table with GRI
Standards.

10●All numerical information included in this report is as of the end of September 2023,

Climate Change Initiatives

11

Environmental Performance Data

17

Certification and assessment in portfolios

20

Environmentally Conscious Asset Management

21

Cooperation with Stakeholders

23

Inquiries:

24

Sustainability Promotion Department, ITOCHU REIT Management Co., Ltd.

SocialInitiatives for Tenants and Regional Contribution

25

Human Rights Policy ・ Promotion of diversity

28

Initiatives for Employees

29

Wellbeing （ Initiatives for health and comfort ）30

Governanceunless otherwise noted.

Date of Issue: October 31, 2023

TEL: 03-3518-0480 (Main)

Disclaimer
This report contains forward-looking statements on future operating results, plans, business32

Compliance Structure

33

Preventing Misconduct and Corruption

34

objectives and strategies of the company.

Forward-looking statements provide current expectations of future events based on number ofassumptions and include statements that do not directly relate to any historical or current facts.

Forward-looking statements are not guarantees of future performance and the Company's actual
results may differ significantly from the results discussed in the forward-looking statements.

Green Finance37

ESG Date

39

necessarily follow any official rules or regulations on financial disclosures.

Comparative Table with GRI Standards

45

should be based on your own judgment and responsibility.

Although the financial figures in the report are based on Japanese GAAP, the report does not
This report was not created for the purpose of soliciting investment in the company. InvestmentsAbout us

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

Overview of the investment corporation

An investment corporation that boasts one of the largest
asset holdings in Japan among REITs specializing in rental
housing.
Rooted in the basic policy of realizing stable, long-term profit sharing,

investments are diversified nationwide, mainly in central Tokyo. Types ofdwellings are also diversified, from single to family-type units, to makeinvestments in a well-balanced manner.

Name of Investment
Corporation

Advance Residence Investment Corporation

An investment corporation that primarily owns andmanages the “I Missions Park”.
Aiming to develop a logistics infrastructure for which demand is revitalized
due to the expansion of EC transactions, etc.,. In addition, they strive tostabilize profits over the long term by utilizing the customer network andlogistics operations experience that the ITOCHU Group has with logistics
companies and shippers.

Name of Investment
Corporation

Advance Logistics Investment Corporation
Tomoyuki Kimura, Executive Director

Representative

Wataru Higuchi, Executive Director

Representative

Address of
Head Office

17th Floor, Jimbocho Mitsui Building
1-105 Kanda-Jimbocho, Chiyoda Ward, Tokyo

Address of
Head OfficeType of Assets underManagement
Fiscal Term End

Residential Property
Six-month period from Feb.1 to Jul.31,
and Aug.1 to Jan.31

Type of Assets underManagement
Fiscal Term End

17th Floor, Jimbocho Mitsui Building
1-105 Kanda-Jimbocho, Chiyoda Ward, Tokyo
Logistics facilities
Six-month period from Mar.1 to Aug.31, andSep.1 to end of Feb.

3

About us

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

4

Message from Top Management
Advance Residence Investment Corporation (“ADR”) and Advance Logistics Investment

We also consider that our efforts to help resolve social challenges such as human rights issues

Co., Ltd. (“IRM”), which was established on June 1, 2022 with the merger of AD Investment

awareness, we are promoting the creation of a healthy and pleasant workplace environment

Corporation (“ADL”) are listed investment corporations managed by ITOCHU REIT Management
Management Co., Ltd. and former ITOCHU REIT Management Co., Ltd. ADR and ADL aresponsored by ITOCHU Corporation Group, which has strengths particularly in the lifestyle andconsumption-related businesses.

Efforts to realize a sustainable society have been accelerating both domestically and globallyeach year, as seen in the adoption of the SDGs by the United Nations in 2015 and the adoptionof the Paris Agreement at the UN Climate Change Conference (COP) which led to the ensuing
continuing discussions on the establishment of specific goals for its implementation. Against
this backdrop, the Japanese government pledged to achieve carbon neutrality by 2050 andindicated the medium-term target to reduce the country’s greenhouse gas emissions by 46

percent by 2030 from the 2013 level.

ADR, ADL and IRM are strongly aware that the promotion of sustainability initiatives centered oncontributing to achieving Net Zero by 2050, contributing to regional societies, enhancing tenantsatisfaction, and promoting the diversity, equity and inclusion (DEI) of their officers andand DEI as corporate entities are important challenges to realize a sustainable society. With thiswhere each of our officers and employees can fully utilize their abilities, by making use ofregular employee satisfaction surveys and other means.

This ESG Report aims to help our investors and other stakeholders gain a broad understandingof the current state of sustainability measures, including those mentioned above, taken by ADR,ADL and IRM by summarizing the details of our sustainability policy and structure to promote it,
as well as explaining specific initiatives, external assessments of the results of such initiatives,and various data.

We will continue to contribute to the realization of a sustainable society to the best of our ability,
and to communicate to investors and other stakeholders the implementation status of ourefforts in an easy-to-understand manner.

Your continued support is highly appreciated.

employees are all important agendas for them to address as business entities and essential ifthey are to maximize shareholder value. To achieve these agendas, IRM reviewed, reorganized,
and revised its sustainability policy at the time of the above-mentioned merger.

ADR and ADL also set targets and KPIs to establish materiality (important issues in sustainability)and enhance the effectiveness of these materiality initiatives towards the implementation the

Wataru Higuchi
Executive Director

sustainability policies.

Recently, in the GRESB Real Estate Assessment in 2023, ADR was awarded the high-rating of 4-

star for the second year in a row, and was selected as the Residential and Asian Sector Leader

among listed participants for the fourth consecutive year and the Residential and Asian Sector

Leader among all participants, including non-listed participants for the first time. The ADL alsoachieved the highest rating of 5-star for the second year in a row. We believe this assessment is

Tomoyuki Kimura

Executive Director

attributable to our steady efforts to date and are committed to continue promoting
sustainability programs.

In response to the pressing issue of climate change, after expressing our support for therecommendations made by the Task Force on Climate-Related Financial Disclosures (TCFD) in

March 2020, we have implemented a new scenario analysis based on the recommendations andreleased its results. To ensure the sustained growth of our business, we appropriately assessclimate change-related risks and opportunities and reflect them in the operation policy andmanagement of ADR, ADL and IRM with the aim of securing sustainable and stable earnings
over the long term.

Junichi Shoji
Representative Director , President & CEOAbout us

About usMateriality and Targets

Environment

Overview of the asset management company

An asset management company that provides asset management services for Advance

Residence Investment Corporation and Advance Logistics Investment Corporation, J-REITs,

Advance Private Investment Corporation, a private placement REIT, and private funds, as wellas private placement services for overseas real estate funds.

Management
Company

ITOCHU REIT Management Co., Ltd.

Representative

Junichi Shoji, Representative Director, President & CEO

EstablishedFebruary 2, 2005

Capital¥300 million

Shareholders

ITOCHU Corporation 80%
ITOCHU Property Development, Ltd. 20%

Licenses andRegistrations

Building Lots and Building Transactions Business License, Governorof Tokyo (4) No. 84325
Entrustment-based Agency Services for Transactions, etc. License,
Minister of Land, Infrastructure, Transport and Tourism License No.
37
Financial Instruments Business Operator Registration, DirectorGeneral of the Kanto Local Finance Bureau (Financial Instruments)
No. 309First-class Architect Office: Governor of Tokyo Registration No.
58856

Memberships

Headquarter
AddressThe Investment Trusts Association, Japan
Type II Financial Instruments Firms Association
Japan Investment Advisors Association
17th Floor, Jimbocho Mitsui Building

1-105 Kanda-Jimbocho, Chiyoda Ward, Tokyo

SocialGovernanceGreen Finance

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IRM-Endorsed Initiatives
IRM recognizes that climate change is an important issue that may bring about drasticchanges to the natural environment and social structure and substantially affect overallbusiness activities. With this in mind, IRM aims to secure sustainable and stable earnings on along-term basis by appropriately evaluating the risks and opportunities brought about by
climate change and by incorporating evaluation results in the operations and management
policies of IRM, ADR and ADL.IRM therefore endorses the following initiatives.

Recommendations of Task Force on Climate-related Financial
Disclosures (TCFD)In March 2020 IRM expressed support for therecommendations issued by the Task Force on Climaterelated Financial Disclosures (TCFD)*. We recognize climatechange as a critical issue that will affect the continued
growth of IRM as well as the investment corporations wemanage in the years to come. Based on the TCFD
recommendations, we will continue to contribute to theachievement of a sustainable society by assessing theimpact of climate change on our businesses,
counteracting risks and taking advantage of opportunities,
and proactively disclosing related information.

In addition to supporting the TCFD, we also became a member of the TCFD
Consortium (composed of Japanese companies and organizations that support TCFD).
* TCFD was established in 2015 by the Financial Stability Board, which consists of central banks andfinancial regulators of the world’s major countries. In June 2017, TCFD issued recommendations
urging companies to disclose information on climate-related business risks and opportunities in themedium to long term, their impact on corporate finances, specific actions and strategies to address
those risks, and other factors in order to mitigate risks that could destabilize financial markets. Pleaserefer to the TCFD website for details.

Japan Climate Initiative (JCI)
Subscribing to the fundamental principles of the Japan Climate Initiative (JCI), IRM became amember in July 2019.
* JCI: Following the adoption of the Paris Agreement forthe prevention of global warming in 2015, JCI wasestablished by a coalition led by Japanese corporations,municipalities, NGOs, and other bodies actively working
to address climate change. It is intended to serve as a
network for voluntary efforts toward thedecarbonization of society. JCI is aiming for theachievement of a decarbonized society by creating anationwide movement, supporting the activities of its
member organizations while urging the government totake action, and cooperating with the international
community.
For more information, please visit the JCI (Japan Climate
Initiative) website.

About us

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

6

Sustainability Policy and Structure
Sustainability Policy

Promoting Sustainability

IRM consider efforts to achieve Net Zero by 2050 and to address climate change and social issues
as important issues in our business activities, and have established the "Sustainability Policy" andwill contribute to the realization of a sustainable society by implementing this policy in our asset
management operations and overall business activities.

1．Efforts toward achievement of Net Zero by 2050
We will contribute to achieving Net Zero by 2050 and to mitigating climate change by reducing
greenhouse gas emissions from the operation of our property holdings by installing energy
efficient equipment and adopting renewable energy.

2．Consideration and conservation of the global environment
We will contribute to the preservation of the global environment by analyzing data on
environmental impacts, understanding the impact of our business activities on the environment,
and giving due consideration to ecosystems and biodiversity.

We have defined the direction that we will take in promoting sustainability

3．Resource conservation and waste reduction

as an organization in a systematic manner. In doing so, we have established KPIs

Through collaboration with stakeholders, We will contribute to the achievement of a society thatconserves and recycles resources by encouraging tenants to conserve electricity and water and torecycle waste.

4．Creating a Great Place to WorkWe will promote the creation of a work environment that is healthy and comfortable so that
individual executives and employees can fully demonstrate their abilities. We will also promote
initiatives that take DEI and human rights into consideration and foster an organizational culturethat recognizes and respects diversity.

5．Contribution to tenants and local communities
We will strive to offer high quality properties to tenants and contribute to local communities
through collaboration with our employees and other stakeholders including property
management companies.

6 ．Legal compliance and the establishment of an organizational structure

We will establish an appropriate organizational structure to ensure compliance with ESG-related
laws and regulations to prevent risks.

7 ．Transparent disclosure

When disclosing our ESG-related policies and initiatives, we will take the perspective ofunitholders and make disclosures easy to understand.

based on our Corporate Philosophy and Management Policy and on changes inour operating environment as our Sustainability Policy, and we are pursuing it

for material issues, which are the priority challenges that the Company and ourinvestment corporations must find solutions to, and we are implementing a
PDCA cycle for target achievement.

Sustainability Promotion Framework
In order to systematically pursue sustainability improvement activities, IRM haveestablished the Sustainability Promotion Committee, which is chaired by the
representative director, and the Sustainability Practical Committee, which iscomposed of employees responsible for actual operations in each department.

▶ For more information, see 'Governance > Management’s roles and oversight by the Boards of
Directors of IRM and each investment corporation' on P11.

Officer and Employee Training
To enhance sustainability awareness, IRM have awareness-raising programs for
IRM’s officers and employees including regular sustainability training (internal

training as well as training by professional instructors)and events. So far , IRM haveheld power-saving challenges at employees’ homes, and educational events suchas lunch meeting (paid for by the company) to discuss SDGs themes, poverty,
education, gender equality, and ensuring diversity.

About us

About usMateriality and Targets

Environment

SocialGreen Finance

Governance

ESG Date

External Assessment and Certification
Participation in GRESB Assessment
ADR and ADL have continuously participated in the GRESB real estate assessments and both ADR and ADL were rated highly in the 2023 assessments.

４

Star

The high-rating of 4-star for the second year in a row

Listed, Residential, Asia and Sector Leader for the fourth consecutive year

Residential, including listed and unlisted, Asia Sector Leader First time selected

Acquisition of SBT Certification
ADR obtained SBT* certification in March 2023 for our GHG emissions reduction target, as Science
Based Targets, which is consistent with the level required by the Paris Agreement.

【Certificated GHG emissions reduction target 】
Scope1-2
FY2030 to date (vs. FY2018) 51% reduction (total)*SBT (Science Based Targets: emission reduction targets based on scientific evidence) is GHG
emission reduction targets set by companies that are consistent with the levels required by theParis Agreement (which aims to limit the global temperature increase to well below 2°C above preindustrial levels and pursuing efforts to limit warming to 1.5°C). The SBT Initiative is aninternational initiative of CDP, the United Nations Global Compact (UNGC), the World Resources
Institute (WRI), and the World Wide Fund for Nature (WWF) to certify companies that set SBT.

５

Star

The highest rating of 5-star for the second year in a row

7Materiality and Targets

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

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8

Materiality and Targets
ADR has identified the following ten materiality items as important issues to be solved as a priority in promoting sustainability and are executing the PDCA cycle to achieve ourgoals. Also, in September 2022, ADR established targets and KPIs to enhance the effectiveness of materiality.

Environment

Materiality

Management and reduction ofenergy consumption, CO2
emissions, water consumption andwaste emissions

SocialTargets and KPIs
[Energy consumption] 20% reduction (intensity) by FY2030 (vs. FY2018)[CO2 emissions (GHG)] Scope1-2
51% reduction (total) by FY2030 (vs. FY2018)
Net zero by FY2050【Water consumption】 No increase (common areas)[Waste]Recycling rate 65% (waste related toconstruction of exclusive use areas)

Scope3
Identify corresponding categories anddetermine/calculate their scope

Acquisition of environmental andenergy-saving certifications

Percentage of properties with environmental or energy-saving certifications by FY2030: 30% or more (by total floor space)

Collaboration with stakeholders on
environmental friendliness・Regular exchange of opinions with and monitoring of suppliers (PMs, BMs, construction contractors, etc.)
・Signing of contracts that contain green lease clauses with new tenants・Periodic training for employees of asset management companies to improve their sustainability awarenessImprovement of tenant satisfaction,
engagement with tenants

・Regular tenant satisfaction surveys
・Install disaster prevention maps in all properties; provide free disaster prevention goods upon request
・Provide sustainability and disaster prevention education at all properties

Contribution to local
communities

Governance

Related SDGs

・Promote installation of AED equipment at all properties
・Promote installation of fundraising vending machines
・Support employees’ volunteer activities; donate to charitable organizations and others
・Participate in local activities; revitalize local communities through dialogue

Pursuit of unitholders’ interests
through customer-firstbusiness management

・Organize a framework for conflict-of-interest management in operating multiple funds
・Honest and highly transparent information disclosure
・Pursue unitholder interests through establishing an asset management fee structure linked to investment performance

Utilization of diverse humanresources and skills
development

・Average years of service: 5 years or more
・Proportion of female employees: 30% or more
・Proportion of female managers: above 15%
・Offer employee training, encourage their participation, and support qualification acquisition for continuous skills
development of employees

Development of workplaceenvironment that offers job
satisfaction

・Annual leave acquisition ratio: 70% or more・Zero turnover due to life events using childcare and nursing care leave system
・Percentage of employees taking childcare leave: 50% or more・Zero frequency rate of occupational accidents
・Conduct employee satisfaction surveys and undertake improvements
・Average monthly overtime: Less than 45 hours (Compliance with 36 agreements)

Robust corporate governancestructure

・Increase the number of fund officers; appointment of female officers; ratio of female officers: 25%
・Conduct in-house compliance training, attendance rate: 100%・Maintain and improve the effectiveness of committees and the Board of Directors
・Annual internal audits to ensure the effectiveness of internal controls

Raising of resilience・Response to severe disasters (earthquakes, floods, etc.)
・Response to TCFD (assessment and calculation of climate change-related risks and opportunities)
・Conduct annual BCP training
・Acquisition of CDP and SBTi certifications

Materiality and Targets

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

Materiality and Targets
ADL has also identified the following ten materiality items as important issues to be solved as a priority in promoting sustainability and are executing the PDCA cycle to achieve
our goals. Also, in September 2022, ADL established targets and KPIs to enhance the effectiveness of materiality.

GovernanceSocialEnvironment

Materiality

Management and reduction ofenergy consumption, CO2
emissions, water consumption andwaste emissions

Targets and KPIs

Related SDGs

【 Energy consumption 】 10% reduction (intensity) by FY2030 (vs. FY2020)【Water consumption】 No increase (intensity)【 CO2 emissions (GHG) 】 Scope1-3 category13

10% reduction (intensity) by FY2030 (vs. FY2020)【Waste】

No increase (intensity)

Scope3
Identify corresponding categories anddetermine/calculate their scope

Acquisition of environmental andenergy-saving certifications

Percentage of properties with environmental or energy-saving certifications by FY2030: 90% or more (by total floor space)

Collaboration with stakeholders on
environmental friendliness・Regular exchange of opinions with and monitoring of suppliers (PMs, BMs, construction contractors, etc.)
・Signing of contracts that contain green lease clauses with new tenants・Periodic training for employees of asset management companies to improve their sustainability awarenessImprovement of tenant satisfaction,
engagement with tenants

・Regular tenant satisfaction surveys
・Install disaster prevention maps in all properties; expand disaster prevention equipment
・Conduct disaster prevention drills and life saving drills in properties owned
・Promote new amenity services

Contribution to local
communities

・Promote signing of agreements with municipalities for disasters
・Install AED equipment in multiple properties
・Support employees’ volunteer activities; donate to charitable organizations and others
・Consider holding events to promote local employment

Pursuit of unitholders’ interests
through customer-firstbusiness management

・Organize a framework for conflict-of-interest management in operating multiple funds
・Honest and highly transparent information disclosure
・Pursue unitholder interests through establishing an asset management fee structure linked to investment performance

Utilization of diverse humanresources and skills
development

・Average years of service: 5 years or more
・Proportion of female employees: 30% or more
・Proportion of female managers: above 15%
・Offer employee training, encourage their participation, and support qualification acquisition for continuous skills
development of employees

Development of workplaceenvironment that offers job
satisfaction

・Annual leave acquisition ratio: 70% or more・Zero turnover due to life events using childcare and nursing care leave system
・Percentage of employees taking childcare leave: 50% or more・Zero frequency rate of occupational accidents
・Conduct employee satisfaction surveys and undertake improvements
・Average monthly overtime: Less than 45 hours (Compliance with 36 agreements)

Robust corporate governancestructure

・Increase the number of fund officers; appointment of female officers; ratio of female officers: 25%
・Conduct in-house compliance training, attendance rate: 100%・Maintain and improve the effectiveness of committees and the Board of Directors
・Annual internal audits to ensure the effectiveness of internal controls

Raising of resilience・Response to severe disasters (earthquakes, floods, etc.)
・Response to TCFD (assessment and calculation of climate change-related risks and opportunities)
・Conduct annual BCP training

9

Environment

Environment

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

11

Climate Change Initiatives
Recognition Regarding Climate Change
Recognizing that climate change is an important challenge that dramatically changes the natural environment and social structure and has a significant
impact on all business activities, IRM expressed its support for the recommendations made by the Task Force on Climate-Related Financial Information

Disclosures (TCFD) in March 2020. Based on these TCFD recommendations, ADR and ADL conduct climate change-related analyses and disclosures under

the framework of governance, strategy, risk management, and metrics and targets, to appropriately assess climate change-related risks andopportunities and reflect them in their management and operation policies with the aim of ensuring sustainable and stable income over the long term.

GovernanceRisk Management

Management’s roles and oversight by the Boards of Directors of IRM
and each investment corporation

Management Process (risk identification and evaluation andintegration with company-wide risk management)●IRM has established the Sustainability Promotion Committee, which is chaired by the
representative director, and the Sustainability Practical Committee, which is composedof employees responsible for actual operations in each department.
●The Sustainability Promotion Committee meets at least twice a year to implement a
PDCA cycle with the aim of improving asset value over the medium to long term. The
PDCA cycle consists of the following steps: formulate sustainability goals and initiatives,
identify and evaluate climate-related risks and opportunities, analyze climate-relatedrisks and manage them company-wide, monitor environmental performance as well as
the results of ESG evaluation by external organizations, verify the degree of achievementof goals, and reset goals for remaining and new challenges.
●Sustainability goals are set by the representative director, who is the chief executive
officer of sustainability, and the progress made toward goals and on initiatives isreported to the Board of Directors of IRM and each investment corporation at least oncea year. The Sustainability Practical Committee is responsible for promoting various
measures needed to achieve these goals.

●IRM has established the Risk Management Rules and Risk Management Standards
as its internal rules to comprehend various risks and opportunities including thoserelated to climate change, to clearly set out our basic approach and internalmanagement structure for such risks and opportunities, and to help ensure theappropriate operation of our business and the soundness of our business
management.
●While positioning climate-related risks as having a material impact on thefinancial and strategical aspects of our business, IRM also sees climate-related risks
as opportunities and manages them as part of the company-wide risk management
process whereby the Compliance and Risk Management Department gathers
information on risks including climate-related risks from other departments,
evaluates the degree of their impact, and then identifies company-wide risks
following discussions by the management team.
●The Compliance and Risk Management Department reports to the representative
director, who is the Chief Executive Officer of IRM, the monitoring status ofcompany-wide risks and opportunities twice a year as well as making reports to
IRM’s Compliance Committee and Board of Directors as needed.
Climate-related risk management process chart
Risk identification and evaluation
Identify risks, gather information andevaluate their impact as company-wide risks

Risk management and response
Appropriately manage and deal with risks
in business operation

Monitoring and reporting
Consider improvements as needed

Sustainability Promotion Department
Compliance and Risk Management
Department

Sustainability Promotion Department andother relevant departments

Representative director, President & CEO
Compliance Committee
Board of Directors

Environment

About usMateriality and Targets

Environment

GovernanceSocialGreen Finance

ESG Date

12

Climate Change Initiatives
Strategy
Scenario Analysis
We classify various change factors in the external environment resulting from climate change into transition risks and physical risks and identify and evaluate them as risks and opportunities.
We select any factors that have a material impact on our business and run scenario analysis. We mainly analyze and calculate transition risks related to “policies/regulations, markets,
reputation,” and physical risks in the categories of “acute/chronical,” and opportunities related to “markets, energy sources, resource efficiency, products and services.” We aim to reduce ourenvironmental impact while achieving a medium- and long-term growth by addressing climate change-related risks and enhancing our efforts to capture opportunities.
The following chart shows the images of the world surrounding our investment corporations in the climate change scenarios with 4-degree Celsius temperature rise and a 1.5-degree
Celsius temperature rise as the background for risk and opportunity identification and evaluation.
1.5℃

4℃
Economic development has been prioritized, resulting in higher
temperature rises and more serious impacts;
Global warming causing more serious impacts than present
such as severer wind and water damage and sea level rises;
Natural catastrophes caused by climate change impact our business

Entire society has shifted towards decarbonization andsuccessfully controlled temperature rises;
Progress in laws/regulations and technological innovation;
Social changes that occur in the process of decarbonization
Impact our businessGovernment/Administration

Investors/Financial Institutions

Government/Administration

Investors/Financial Institutions

No change to their policy to control
global warming from present;
enhanced disaster response

Progress in investments/loans thatconsider natural disaster risks

Taxation using carbon pricing
Tighter energy-saving related
regulations for buildings

Progress in investments/loans
emphasizing ESG evaluations
including decarbonization

Impact on investment corporations (ADR/ADL)-Higher repairment/insurance costs for properties due to severer natural
disasters; higher power bills due to rising temperatures-Increased demand for safe and secure properties

Technology

Tenants

Progress in technology addressing
natural disasters

Higher demand for properties that
address physical risks caused bynatural disasters

Main Reference Scenarios
IPCC（Intergovernmental Panel on Climate Change） SSP1-1.9

Impact on investment corporations (ADR/ADL)-Higher costs due to decarbonization-related taxes and materials, renovations tomeet regulations, and so on-Smaller running costs thanks to energy-saving efforts; increased investments
enabled by effective actions

Technology

Tenants

Progress in decarbonization
technology and energy-saving
technology such as outer surfacefunctionality of buildings

Emphasize decarbonization andenergy saving in property selection
due to legal requirements, demands
from investors, and rising
environmental awareness

Main Reference Scenarios
IEA (International Energy Agency) NZE（Net Zero Emission by 2050 Scenario),APS（Announced Pledges Scenario）

Environment

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

13

Climate Change Initiatives
Risk and opportunity identification and impact analysis
In order to identify the climate-related risks assumed in scenarios with a 4-degree Celsius temperature rise and 1.5-degree Celsius temperature rise, as well as to understand the priority level of response,
ADR has examined the "timing of onset of each risk" and presented it in the following diagram. The "Business Impact" is based on the financial impact of each risk. The specific financial impact and response
measures for each risk, as well as the opportunities identified, are shown on the next page.
Highpriorityfor
response

4℃
Approximate timing of occurrenceLong term(5Y-)

Short term
(1-3Y)

Medium term
(3-5Y)

Approximate timing of occurrenceHigh
priorityfor
response

Long term(5Y-)■Higher non-life insurance
premiums due to escalation ofnatural disasters※The "Approximate timing of occurrence" indicates the time when each risk is assumed to have a high likelihood of occurrence, as of FY2023, when the analysis was conducted. The timing of occurrence is based on a qualitative consideration of theworld view of each scenario based on the advice of a third-party organization, and does not guarantee the accuracy of the timing of occurrence.

Business impact: Small■Higher energy cost due tothe rising averagetemperature■Higher non-life insurance
premiums due to escalation ofnatural disasters

Business impact: Small■Higher procurement cost ofbuilding materials following
introduction of carbon tax■Higher energy cost due tothe rising averagetemperature■Higher procurement cost ofbuilding materials following
introduction of carbon tax¥100M■Higher business activity costs
due to introduction ofcarbon tax

Highpriorityfor
response

Business impact: Large■Fall in investments asproperties owned fail to adapt
to climate change■Damage to properties owned
and loss of business
opportunities due toescalation of natural disasters¥100M■Higher business activity costs
due to introduction ofcarbon tax

Short term
(1-3Y)

Medium term
(3-5Y)■Lower lease businessincome as the properties
owned fail to adapt toclimate change

Business impact: Large■Damage to properties owned
and loss of business
opportunities due toescalation of natural disasters

Highpriorityfor
response

1.5℃

Environment

About usMateriality and Targets

Environment

GovernanceSocialGreen Finance

ESG Date

Climate Change Initiatives
The following shows potential climate change-related risks for ADR in the images of the world in the 4-degree Celsius and 1.5-degree Celsius scenarios, their financial impacts, countermeasures, andpossible opportunities for ADR’s business.

Category

Policies/
regulations
Transition risk

Reputation

Markets

FactorTightening of relevant regulations tocontrol CO2 emissions

Progress in investments and loans
emphasizing climate change actions
Changing tenants’ demands(Growing needs for properties adapting toclimate change)

Physical risk

AcuteEscalation of natural disasters such as
torrential rain, typhoon, flooding,landslide and high tide; higher risk ofwind and water damage

Chronic

Rising average temperature andescalation of natural disasters

Opportunities

Resource
efficiency

Strengthening of energy saving-related
regulations
Changing tenants’ demands

Products and(Growing needs for the properties
services

adapting to climate change)

Markets

Progress in investments and loans
emphasizing climate change actions

Impact (Risk/Opportunity)

Financial impact(millions of yen)Countermeasures
Overview

4℃

1.5℃

Higher business activity costs following introduction of carbon
tax

85

132

- Install LED lightning- Introduce renewable energy (purchase non-fossil certificatesand green energy certificates)

Higher procurement cost of building materials following
introduction of carbon tax

62

97- Use subsidiaries and incentive systems

Fall in investments as properties owned fail to adapt to climatechange (higher interest rates as preferential interest rates are notapplied)-231- Continue acquiring environmental certificates (issue
sustainability bonds)- Enhance information disclosure and engage investors

Lower lease business income as properties owned fail to adapt
to climate change

-

1,054

Damage to properties owned and loss of business opportunities
due to escalation of natural disasters

438

219

- Continue acquiring environmental certificates- Anti-flood measures (install water stops, drainage pumps, water
sensors, alarm devices)- Conduct disaster drills; secure disaster prevention goods- Reduce damage (lost rents) by purchasing fire insurance

Higher energy cost due to the rising average temperature

5

86- Install LED lightning

Higher non-life insurance premiums due to escalation of natural
disasters

115- Regular review of fire insurance policies

Smaller operating costs due to adoption of energy-saving
measures

Higher rent income through provision of low CO2 emissions
facilities and services to tenants (higher occupancy and higher
rents)
Fall in funding cost and increase in investments as actions aretaken to address climate change (lower interest rates aspreferential interest rates are applied)

-

-

-

（Note）The figures stated as financial impact represent the annual monetary impact. An analysis was conducted on the risks and opportunities of climate change factors that are deemed to have a particularly material impact on ADR’s business activities. Furthermore, the above
estimates were calculated based on ADR’s past investment performance, scenarios presented by international organizations and others, and data released by relevant government agencies or other third parties. ADR therefore does not guarantee the accuracy of these figures. The
countermeasures listed are also presented for the purpose of calculating the impact; no plan or decision has been made for their implementation.

Metrics and Targets, Results
Energy consumption
20% reduction (intensity) by FY2030 (vs. FY2018)
CO2 emissions (GHG)
Scope1-2 51% reduction (total) by FY2030 (vs. FY2018)
Net zero by FY2050

Please refer to P40 Environmental performance data for actual results.

14

Environment

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

15

Climate Change Initiatives
Risk and opportunity identification and impact analysis
In order to identify the climate-related risks assumed in scenarios with a 4-degree Celsius temperature rise and 1.5-degree Celsius temperature rise, as well as to understand the priority level of response,
ADL has examined the "timing of onset of each risk" and presented it in the following diagram. The "Business Impact" is based on the financial impact of each risk. The specific financial impact and response
measures for each risk, as well as the opportunities identified, are shown on the next page.

4℃

High
priorityfor
response

Approximate timing of occurrenceLong term(5Y-)

Short term
(1-3Y)

Medium term
(3-5Y)

Approximate timing of occurrenceHigh
priorityfor
response

Long term(5Y-)■Damage to properties owned
and loss of business
opportunities due toescalation of natural disasters■Higher procurement cost ofbuilding materials following
introduction of carbon tax■Higher non-life insurance
premiums due to escalation ofnatural disasters■Higher business activity costs
due to introduction ofcarbon tax■Higher procurement cost ofbuilding materials following
introduction of carbon tax※The "Approximate timing of occurrence" indicates the time when each risk is assumed to have a high likelihood of occurrence, as of FY2023, when the analysis was conducted. The timing of occurrence is based on a qualitative consideration of theworld view of each scenario based on the advice of a third-party organization, and does not guarantee the accuracy of the timing of occurrence.

Business impact: Small■Higher business activity costs
due to introduction ofcarbon tax

Business impact: Small■Higher energy cost due tothe rising averagetemperature■Higher energy cost due tothe rising averagetemperature■Fall in investments asproperties owned fail to adapt
to climate changeHighpriorityfor
response¥100M■Lower lease businessincome as the properties
owned fail to adapt toclimate change¥100M■Higher non-life insurance
premiums due to escalation ofnatural disasters

Short term
(1-3Y)

Medium term
(3-5Y)

Business impact: Large

Business impact: Large■Damage to properties owned
and loss of business
opportunities due toescalation of natural disasters

Highpriorityfor
response

1.5℃

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ESG Date

Climate Change Initiatives
The following shows potential climate change-related risks for ADR in the images of the world in the 4-degree Celsius and 1.5-degree Celsius scenarios, their financial impacts, countermeasures, andpossible opportunities for ADL’s business.

Category

Policies/
regulations
Transition risk

Reputation

Markets

FactorTightening of relevant regulations tocontrol CO2 emissions

Progress in investments and loans
emphasizing climate change actions
Changing tenants’ demands(Growing needs for properties adapting toclimate change)

Physical risk

AcuteEscalation of natural disasters such as
torrential rain, typhoon, flooding,landslide and high tide; higher risk ofwind and water damage

Chronic

Rising average temperature andescalation of natural disasters

Opportunities

Resource
efficiency

Strengthening of energy saving-related
regulations
Changing tenants’ demands

Products and(Growing needs for the properties
services

adapting to climate change)

Markets

Progress in investments and loans
emphasizing climate change actions

Impact (Risk/Opportunity)

Financial impact(millions of yen)Countermeasures
Overview

4℃

1.5℃

Higher business activity costs following introduction of carbon
tax

2

2

- Install LED lightning- Introduce renewable energy (purchase non-fossil certificatesand green energy certificates)

Higher procurement cost of building materials following
introduction of carbon tax

1

1- Use subsidiaries and incentive systems

Fall in investments as properties owned fail to adapt to climatechange (higher interest rates as preferential interest rates are notapplied)-52- Continue acquiring environmental certificates (issue
sustainability bonds)- Enhance information disclosure and engage investors

Lower lease business income as properties owned fail to adapt
to climate change-

199

Damage to properties owned and loss of business opportunities
due to escalation of natural disasters

1,022

511

Higher energy cost due to the rising average temperature2

27- Install LED lightning

Higher non-life insurance premiums due to escalation of natural
disasters

73- Regular review of fire insurance policies- Continue acquiring environmental certificates- Anti-flood measures (install water stops, drainage pumps, water
sensors, alarm devices)- Conduct disaster drills; secure disaster prevention goods- Reduce damage (lost rents) by purchasing fire insurance

Smaller operating costs due to adoption of energy-saving
measures

Higher rent income through provision of low CO2 emissions
facilities and services to tenants (higher occupancy and higher
rents)
Fall in funding cost and increase in investments as actions aretaken to address climate change (lower interest rates aspreferential interest rates are applied)

-

-

-

（Note）The figures stated as financial impact represent the annual monetary impact. An analysis was conducted on the risks and opportunities of climate change factors that are deemed to have a particularly material impact on ADR’s business activities. Furthermore, the above
estimates were calculated based on ADR’s past investment performance, scenarios presented by international organizations and others, and data released by relevant government agencies or other third parties. ADR therefore does not guarantee the accuracy of these figures. The
countermeasures listed are also presented for the purpose of calculating the impact; no plan or decision has been made for their implementation.

Metrics and Targets, Results
Energy consumption
10% reduction (intensity) by FY2030 (vs. FY2020)
CO2 emissions (GHG)
10% reduction (intensity) by FY2030 (vs. FY2020)

Please refer to P41 Environmental performance data for actual results.

16

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ESG Date

17

Environmental Performance Data
The graph below shows the evolution of environmental performance data in ADR and ADL up to FY2022. Detailed data can be found in the ESG Data section of this report.

Energy consumption (ADR)

Energy consumption (ADL)
Target : 10% reduction (intensity) by FY2030 (vs. FY2020)

Target : 20% reduction (intensity) by FY2030 (vs. FY2018)
Total
(MWh)

Fuel

DHC

Electricity

Intensity

20,0000.090

15,0000.080

10,000
0.070

5,000
0

Total
(MWh)

intensity(MWh/㎡)

Intensity

intensity(MWh/㎡)

0.06

30,000VS. FY2018

−10.5

Total

25,00020,000%

Reduction rate of intensity in 2022

15,0000.05

VS. FY2020

−11.8

%

Reduction rate of intensity in 2022

10,0005,000

2018

Base Year

2019

2020

2021

2022

0.060

0

2020

Base Year

2021

2022

0.04

Introduction of renewable energy through purchase of non-fossil
certificates and green heat certificates

Purchase of non-fossil certificates and Introduction of renewable energy ati Missions Park Ichikawa-Shiohama

In FY2022, ADR achieved the 100-percent sourcing of energy used in the common spaces of its

In FY2022, ADL achieved the 100-percent sourcing of energy used in the common spaces and partof tenant areas of its properties from renewable energy sources and a 100-percent offset of Scope
2 GHG emissions and a 14-percent offset of Scope 3 Category 13 emissions through the following
initiatives.

properties from renewable energy sources and a 100-percent offset of Scope 2 GHG emissions
through the following initiatives.

●Purchase of non-fossil certificates (for the power used in the common areas of properties)※Purchased FIT non-fossil certificates with tracking information in the renewable energy value
market through a vendor (Whole Energy, Inc.)●Introduction of green heat certificates (for the heat used in the common areas of Pacific Royal
Court Minatomirai Ocean Tower)※Purchased a green heat certificate from an issuer (Japan Natural Energy Company Limited).

▶ For more information, see the 'Press release' disclosed on 21 July 2023.

●Introduction of renewable energy to the entire building of i Missions Park Ichikawa-Shiohama
In addition to the power generated from solar panels provided by VPP Japan, we purchased
electricity with a non-fossil value from ITOCHU Corporation, achieving the 100 percent sourcing ofenergy used in i Missions Park Ichikawa-Shiohama from renewable energy sources in FY2022.
●Purchased a non-fossil certificate (for the power used in the common areas and part of tenant
areas of i Missions Park Noda, Moriya, and Moriya 2)※Purchased a green heat certificate from an issuer (Japan Natural Energy Company Limited).

▶ For more information, see the 'Press release' disclosed on 21 July 2023.

i Missions Park
Ichikawa-Shiohama

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ESG Date

18

Environmental Performance Data
The graph below shows the evolution of environmental performance data in ADR and ADL up to FY2022. Detailed data can be found in the ESG Data section of this report.

CO2 emissions (GHG) Scope1&2 (ADR)
51% reduction (total) by FY2030 (vs. FY2018)
Net zero by FY2050

Target ：(t-CO₂)CO2 emissions (GHG) Scope1・2・3 （category13） (ADL)

scope1scope2(t-CO₂)

Total

12,000VS. FY2018

9,000
Achievement of
100% Offsetting of
GHG Scope2
Emissions

6,000

3,000

0

Target : 10% reduction (intensity) by FY2030 (vs. FY2020)−97.6

Base Year

2019

2020

2021

Intensity

Intensity(t-CO₂/㎡)

0.03

VS. FY2020

9,000

%

6,000

Reduction rate of total in 2022

3,000
0

2018

Total

2022

−29.9

0.02

Reduction rate of intensity in 2022

2020

Base Year

2021

2022

0.01

ADR and ADL specified and calculated each category of Scope 3 CO2 emissions (GHG) as shown below.

Calculating and making visible the impact of these GHG emissions will help us further collaborate with our business partners, officers, employees and the entire supply chain toconsider and promote measures to achieve net zero by 2050.

GHG Emissions by Category (Scope3)
Category

Unit：t-CO2

GHG Emissions by Category (Scope3)

FY2022Category

Unit：t-CO2

FY2022

1

Purchased goods and services

2,085

1

Purchased goods and services

112２

Capital goods

18,354２

Capital goods383

３

Fuel- and energy-related activities not included in Scope 1 or Scope 2

44

３

Fuel- and energy-related activities not included in Scope 1 or Scope 2

0

５

Waste generated in operations

124

５

Waste generated in operations

6

６

Business travel (Target ： IRM officers ）33

６Business travel (Target ： IRM officers ）33

７

Employee commuting (Target ： IRM officers and employees）

23

７

Employee commuting (Target ： IRM officers and employees）

23

13

Downstream leased assets（Target: Exclusive areas of owned properties）

9,080

13

Downstream leased assets（Target: Exclusive areas of owned properties）

Total

29,743*1 Calculated using the guidelines for the calculation of GHG emissions of an organization throughout the supply
chain provided by the Ministry of the Environment of Japan. The categories not mentioned above either do nothave any emission source or are calculated in Scope 1 or 2.

%

Total

8,841
9,398

*1 Calculated using the guidelines for the calculation of GHG emissions of an organization throughout the supply
chain provided by the Ministry of the Environment of Japan. The categories not mentioned above either do nothave any emission source or are calculated in Scope 1 or 2.

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19

Environmental Performance Data
The graph below shows the evolution of environmental performance data in ADR and ADL up to FY2022. Detailed data can be found in the ESG Data section of this report.

Water consumption (ADR)

Water consumption (ADL)

Target ： No increase (common areas) (vs. FY2018)

Target ： No increase (intensity) (vs. FY2020)

Intensity
(㎥/㎡)

(㎥)

Total

12,000Intensity

0.080

9,000

0.070

6,000
0.060

3,000
0

Total

VS. FY2018−5.8

Intensity

0.1

30,000%

Reduction rate of intensity in 2022

0.08
0.06

20,0000.04
10,000VS. FY2020

−26.7

%

Reduction rate of intensity in 2022

0.02

2018

2019

2020

2021

2022

0.050

0

Waste （ADR）
Target ：

2021

2022

Waste （ADL）

Recycling rate 65%(waste related to construction of exclusive use areas)
Recycling rate

Target ： No increase (intensity) (vs. FY2020)(t)

2,500.00

100%

Recycling rate
90%

88.5

80%

Target：65％
2019

2020

2021

2022

Total

Intensity(t/㎡)

Intensity

0.01

VS. FY2020

2,000.00
1,500.00%

FY2022 actual results

70%

2018

2020

0

Base Year

Base Year

60%

Intensity
(㎥/㎡)

(㎥)

0.005
1,000.00%

Reduction rate of intensity in 2022

500.00
0.00

−58.1

2020
Base Year

2021

2022

0

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20

Certification and assessment in portfolios
Status of environmental certifications
Target ：ADR and ADL are proactively seeking environmental certification, such as the Green Building Certification and energy efficiency
ratings. Detailed data can be found in the ESG Data section of this report.

Percentage of properties with environmental or energy-saving
certifications by FY2030: 30% or more (by total floor space)
Rank S ★★★★★

28.7

%

Actual results for July 2023

Percentage of properties with environmental or energy-saving
certifications by FY2030: 90% or more (by total floor space)
Rank S ★★★★★

CASBEE Certification
for Real Estate

RESIDIA TOWER Meguro-Fudomae
RESIDIA TOWER Kami-Ikebukuro(Tower)
RESIDIA Minami-senjyu％ of ADRs acquired

Target ：i Missions Park Kashiwa2
i Missions Park Ichikawa-Shiohama

Ramk A ★★★★

95.0

RESIDIA TOWER Kami-Ikebukuro(Park)RESIDIA Shibaura
RESIDIA Nishijin
Park Tower Shibaura Bayward Urban Wing
RESIDIA Shin-Okachimachi II
RESIDIA TOWER Azabujuban
Other 6 properties.

17%

properties

2

DBJ Green Building
Certification★★★★

RESIDIA Roppongi-Hinokichokoen
RESIDIA TOWER Nakameguro
RESIDIA Kinshichoproperties
i Missions Park Moriya
i Missions Park Misato
i Missions Park Inzai
i Missions Park Inzai 2i Missions Park Tokyo Adachii Missions Park Miyoshi

RESIDIA Yutenji
RESIDIA Sasazuka II
RESIDIA Kamata

★★★

6

8

properties★

RESIDIA Ochanomizu Ⅱ

RESIDIA Minami-senjyu

Actual results for Sept 2023

★★★★

★★★

RESIDIA TOWER Kami-Ikebukuro％ of ADLs acquired

property

properties

i Missions Park Kashiwa★★★★★

i Missions Park Moriya
i Missions Park Chiba-Kita
i Missions Park Inzai
i Missions Park Kashiwa2
i Missions Park Inzai 2i Missions Park Tokyo Adachii Missions Park Miyoshi

BELS

1

i Missions Park Kashiwa
i Missions Park Noda

8

★★★★

i Missions Park Misato

properties

i Missions Park Miyoshi

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ESG Date

21

Environmentally Conscious Asset Management
ADR manages its assets while reducing their environmental impact by saving energy and water, investing in a wide variety of properties, etc.

Large-Scale Repair/Maintenance(Environmental contribution byextending property lifespan)

ADR aims to raise unitholders’ value while contributing to
the environment (e.g. reducing life cycle CO2 emissions)by extending the economic life and maintaining the valueof building structures through large-scale repairs andvalue enhancement renovations.

Installation of LED Lighting

As of July 2023, LED lighting is installed in 128 properties(46.2% of portfolio)

Investments Towards Urban Revitalization
ADR invests in various types of properties, promoting the reduction of environmental burdensand contributing to the revitalization of towns and communities.

●Investment in Mixed-Use/Multi-Use Properties
ADR invests in flexible/mixed use properties (as of July 2023, 83properties, 30% of theportfolio), thereby contributing in reducing environmental impact, revitalizing the area andproviding convenient facilities to tenants and local residents. In addition, those flexible /mixed
use properties have stores and squares open to public which contributes to the revitalization of
the cities and the communities, by providing places for people gather.
・Investments in properties close to railway stations, promoting the use of public
transportation to reduce CO2 emissions.
・Investments in properties with amenities for daily life such as supermarkets andconvenience stores.
・Investments in properties that have public spaces for use by nearby residents.
・Investments in properties that accommodate the elderly such as those with barrier-freefacilities.

●Investments in properties developed as part of urban regeneration

Installation of Heat-shielding Paint
Roofing
ADR has applied ｈeat-shielding to the roofs of someof its properties to reduce the rise in indoor

temperatures and save electricity and energy.

Encouraging Tenants toConserve Energy Usage

projects*, etc.

Through investments in properties developed as part of urban regeneration projects, etc. wecontribute to the revitalization of towns and communities and the enhancement of
convenience to nearby residents.
* Laws and regulations restrict J-REITs from development activities including the construction of properties.

(Example) Pianetta Shiodome
Residents of the area proposed ideas for new manufacturing activities andthe creation of a community for lifestyle improvements. Agreeing with this,ADR invested in the properties located in this area developed by urban
regeneration projects.

●Other urban redevelopment properties acquired by ADR.

（through posters on common area billboards andperiodical “RESIDIA News” and sending ofsustainability guides）

RESIDIA Minami Senjyu

RESIDIA TOWER
Kami-Ikebukuro

Pacific Royal Court
Minato Mirai Ocean Tower

RESIDIA Tsutsujigaoka

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22

Environmentally Conscious Asset Management
ADL works with tenant companies, examines the introduction of energy-efficient equipment, and utilises renewable energy sources, It actively promotes energy-saving, water-saving
and recycling activities.

Creation of renewable energy

Demand Controls

solar panels to help them generate renewable energy. In addition, some of the power usedaccording to electricity demand, has been installed in some ADL-owned properties. The

We lease spaces on the rooftops of some of our properties to tenants for the installation of

Demand control, a system that automatically adjusts the operation of properties

in i Missions Park Ichikawa-Shiohama is sourced from solar power.

introduction of this system has led to a reduction in electricity consumption.

▶ Please click here to read about renewable energy initiatives at i Missions Park Ichikawa-Shiohama.

i Missions Park Nodai Missions Park Nodai Missions Park Misato

i Missions Park Kashiwa 2

Demand control（centralized control unit）

CO2 Reduction with tenants

Water-saving toilet and sink

Some of ADL‘s properties have been approved for the Comprehensive Efficiency Plan

Water-saving products are being placed in toilets and sinks in owned properties tounder the Act on Advancement of Integration and Streamlining of Distribution Business, andthe company is promoting CO2 reduction in collaboration with tenants.

i Missions Park Chiba-Kita

i Missions Park Noda

LED lighting

ADL is promoting the use of LED lighting in our owned properties to reduce energy
consumption.

i Missions Park Misato

conserve water resources.

i Missions Park Moriya 2

GreeningGreening is being promoted in the car parks of some owned properties as part of efforts
related to climate change adaptation.

i Missions Park Misato

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23

Cooperation with Stakeholders
Cooperation with Stakeholders

Cooperation with Sponsor Group●Green Lease Clause

Regarding environmental friendliness, ADR and ADL is collaborating with its sponsor,

ADR and ADL have lease clauses with tenants concerning energy and water

conservation. In ADR, green lease clauses have already been introduced in lease

contracts for approximately 66.6% of the leased units as at end-July 2023, and in ADL,

clauses have been concluded for 36.8% of the leased units based on gross floor area asat end-March 2023.Green lease clauses are also set forth in the managementagreement with the all property management companies.

●Supply Chain Management
To realize the items listed in the Sustainability Policy, IRM collaborates with its suppliers
and has in place a Sustainability Procurement Policy. Based on this policy, IRM hasadministered a questionnaire with questions related to sustainability initiatives to allproperty management companies and evaluates the results. This questionnaire isadministered at the beginning of the partnership as well as once every year thereafter

and, by doing so, strengthens the transactions with the suppliers. IRM also believes it isimportant that all suppliers understand and cooperate with the procurement policy
and we again notified the Sustainability Procurement Guideline to the property

management and building management companies who are our key business partners.

ITOCHU Group.

●Property Development and Purchase
Proactive promotion of transactions including logistics facilities andmixed/multi-purpose for Residential Property, etc. that can contribute to theenvironment and region. Acquisition of green building certifications.
●Property Management

Contribution to the region through environmental consciousness such as energy-saving
awareness campaigns and installation of AEDs.

●Example of Cooperation with Sponsor Groupi Missions Park Ichikawa-Shiohama (ADL)
At i Missions Park Ichikawa-Shiohama, developed byour sponsor, ITOCHU Corporation, LED lighting is used
exclusively throughout the building.
Solar panels provided by VPP Japan, one of ITOCHU
Corporation’s investments, are installed on the roof andall electrical power to the property is provided carbon
dioxide free.
Furthermore, the building is equipped with offices,
meeting rooms, break rooms, and employee restrooms
on every floor to create a considerate work
environment.

i Missions Park Ichikawa-Shiohama

Installation of solar panels
i Missions Park
Ichikawa Shiohama

investment

VPP JAPAN

Solar panels
renewable energyi Missions Park
Ichikawa Shiohama

Electricity with non-fossil value（Substantial renewable energy）

100% use of renewable energy

ITOCHU
Corporation

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ESG Date

25

Initiatives for Tenants and Regional Contribution
ADR recognizes that enhancing the satisfaction of tenants leads to stable and improved earnings from the properties and therefore are implementing the following initiatives.

Customer Satisfaction Survey
A survey of satisfaction and desire for the RESIDIA brand is carried out periodically (about
every three years) for the residents of RESIDIA properties.

Installation of Disaster Prevention Map and Distribution ofDisaster Kits
On common area walls of properties, ADR puts up emergency maps (as of end of

Date ofthe survey

No. ofRespondents

Total No. ofPeople Surveyed

Response
Rate

Total No. of
LeasableUnits

1

Between April
to July 2014

3,106

14,15521.9%

19,07874.2％

2

Between Sept.
to Nov. 2017

3,945

16,44524.0%

20.84279.0%

3Between Apr.
to Jun. 2020

7,705

18,00042.8%

21,32274.2％

4

Between May.
to Jun. 2023

5,533

18,821

29.4%

21,836

86.2％

SurveyCoverage

July 2023, in 100% of its 277 properties). indicating evacuation routes toevacuation sites which help to ensure safety during the occurrence of a disasteras well as to raise disaster prevention awareness.

Also, in many of its “RESIDIA” branded residence, ADR distribute emergency kits

free of charge to any tenant who wishes for such kits.

Tenant Services
To enhance customer satisfaction and tenant retention, residents are offered a wide rangeof services including a dedicated support desk, RESIDIA Customer Support, which provides
residents with a variety of services, as well as the discount program “Moving Style” forEmergency Maps

Emergency Kits

tenants moving from one RESIDIA property to another.

Installation of AED and donation vending machines

Conversion to shared spaces, etc.

machines that make charitable donation to a pediatric cancer treatment facility

In response to lifestyle changes caused by the new coronavirus, the common areas of the

In many ADR’s properties, AEDs are available for public use and vending

using part of the proceeds from the sales of its merchandise are installed

following two properties have been renovated and offered to tenants as shared space.

RESIDIA Kamata

Conversion of unused meetingrooms into shared spaces.

RESIDIA Nakano-FujimidaiCommon rooms converted into
working space.

AED

Vending Machines with
Donation Function

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ESG Date

26

Initiatives for Tenants and Regional Contribution
ADL also recognizes that enhancing the satisfaction of tenants leads to stable and improved earnings from the properties and therefore are implementing the following initiatives.

Tenant Satisfaction Survey

Logistics Continuity at Emergencies

A tenant satisfaction survey regarding the facilities and management is carried out twice

At i Missions Park Atsugi 2, the following initiatives

a year so that corporate tenants can use the facilities more comfortably.

are being implemented for tenant companies toensure that logistics functions can be maintained

Installation of AEDs
AEDs are installed in some owned properties toensure that tenant companies can use theeven during emergencies.
Emergency Supplies Storehousefacilities with peace of mind.

Installation of Emergency Supplies Storehouse

Water, food and portable toilets are stockpiled fortenant companies.

Installation of emergency power Generation
Equipment

Enables operation continuity at emergency by

Ensuring safety of tenant employees
i Missions Park Inzai has adopted a distinctive

specification whereby tenant employees approach
the second floor by escalator directly from the carpark to enter the building, and pedestrian and※i Missions Park Atsugi 2 is a property developed bysponsor for which ADL holds preferential negotiationright.

Clean-up activities around the property

Conclusion of Disaster Prevention
Agreement

An agreement was signed with Tsukubamirai City,
where i Missions Park Moriya and Moriya 2 arelocated, under the 'Public Facility Foster Parent
System'; on 5 October 2023, employees of the asset
management company conducted a clean-up
activity around the properties.

Agreement for Acceptance of Evacuees and Relief
Supplies at the Time of Disaster at i Missions Park
Noda. In the event of a disaster, if Noda City is

unable to secure space to receive relief supplies andevacuees, ADL will provide a part of the grounds

and building of i Missions Park Noda as a temporary
evacuation space to store and manage relief

supplies and to accept evacuees, thereby enabling
rapid responses to the support needs of local
residents and citizens.

Disaster drill was held at i Missions Park Noda inDisaster preparedness training （Feb 2023）

Emergency Power
Generation Equipment

truck traffic lines are separated to ensure safety.

ADL and Noda City of Chiba Prefecture executed an

Signing Ceremony (May 2022)

supplying power for a certain time.

February 2023 jointly with the city and tenants.

Tsukubamirai City gave us hats for our activities
and signs attesting to our cleaning management.
※What is the 'Public Facility Foster Parent System’?
In order to continuously promote the development of abeautiful city, this is a system in Tsukubamirai City whereby
public facilities such as parks and roads are seen as'children' and citizens and organisations act as 'foster
parents', regularly volunteering to clean and weed thesefacilities.

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Initiatives for Tenants and Regional Contribution
IRM actively implements social contribution activities, including employee-participatory activities, in addition to company initiatives.

Participation in Famima Food Drive

In cooperation with Family Mart Co Ltd, an ITOCHU Group company, employees
participate in the Famima Food Drive as part of their social contribution activities anddonate food products.

Participation in Eco-Cap Campaign
In an endorsement of the Eco-Cap Campaign, IRM collects caps from used PET bottles
for recycling purposes. The collected bottle caps are sold to recyclers via the certified

NPO, the Japan Committee for Vaccines for the World’s Children, and the proceeds areused to help children around the world suffering from diseases. The campaign also

*About ‘Famima Food Drive’...

This is an initiative in which households bring in uneaten food to Family Mart shops and provide it tothose in need through cooperating partners such as local authorities and NPOs. Through the Famima

promotes the employment of people with disabilities who are tasked with separating
the collected caps.

Food Drive initiative, uneaten food from the home is utilised, leading to a reduction in food loss. In
addition, by using Family Mart shops nationwide as collection points, local residents can easily
participate in social contribution activities.

Various food items, including instant foods and confectionery, are collected from employees
each time.
*Note: FamilyMart does not normally accept food items on a company-by-company basis.

Supporting Students
To provide opportunities for and support architecture and design students as well as
to create interest in IRM and the REIT industry, IRM sought renovation ideas for its

RESIDIA leased residences by holding a student competition. Renovation based on
the best design was actually carried out.

Support Social Participation of People With Physical Disabilities
In 1987, ITOCHU Corporation, the parent company of IRM, founded a special subsidiary

Periodic Cleaning of the Area Surrounding the Office

As a member of the area, IRM employees have proactively and continuously participatedin the cleanup of Chiyoda Ward where the IRM office is located.

company ITOCHU Uneedus Co., Ltd. to provide motivational and rewarding work to
people with physical and mental disabilities.

IRM supports ITOCHU Uneedus by placing orders for its company’s business cards andenvelopes. Please refer to this page for company details.(In Japanese)

Supporting ITOCHU Foundation
ITOCHU Foundation, founded in 1974 by ITOCHU Corporation, the parent company ofIRM, has continued to promote social contribution activities aiming for the sounddevelopment of young people. Current projects include the Children's Literature

Collection Grant and the Project for Promotion of E-book Libraries, which contributeto the healthy growth of children. IRM supports the Foundation through donations.

Participating in Cleanup Activity

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Human Rights Policy and the Promotion of Diversity
Human Rights Policy

Human Resource Strategy

IRM has established a Human Rights Policy to fulfill its responsibility of respecting theBased on the awareness that the stable growth of each investment corporation andthis policy, IRM is advancing initiatives such as positive action initiatives to support thestrategy with the aims of enabling people to unleash their full potential and of achieving

human rights of all people involved in its business operations. As part of implementing
active participation of women as a means of increasing diversity.

1． Support for international norms and guidelines
We support international norms on human rights, including the Universal Declarationof Human Rights, the Declaration on Basic Principles and Rights in Labor of theInternational Labor Organization (ILO), and the United Nations Global Compact. In
addition, we respect human rights in accordance with the United Nations’ Guiding
Principles on Business and Human Rights.
Furthermore, the parent company ITOCHU Corporation’s Itochu Group Human Rights
Policy applies to all officers and employees of IRM.

2．Non-complicity in human rights violations

We endeavor not to violate human rights ourselves or be complicit in human rights
violations by others.

3．Respect for freedom of association and collective bargaining rights
We respect the freedom of association and the right to collective bargaining inaccordance with relevant laws and regulations, and we do not engage in illegal or
improper discrimination in employment and occupation.

4．Elimination of forced labor

We strive to eliminate and prevent all forms of forced labor at IRM and in our supply
chain.

5．Effective abolition of child labor

We support and practice the effective abolition of child labor from IRM and our
supply chain. We do not hire children who are not above the legal minimum working
age.

6．Elimination of discrimination in employment and occupation

We do not treat people differently or disadvantage them based on characteristics
that are irrelevant to their capabilities or specific job requirements. Thosecharacteristics include ethnicity, skin tone, gender, religion, political views, nationality(country of birth), social origin, age, disability, HIV infection/AIDS, trade union
membership, and sexual orientation.

investment fund is dependent on our personnel, IRM is pursuing a human resource
overall human resource optimization.

Specifically, IRM has established a personnel evaluation system that defines theperspectives as well as the competencies and skills required for each level of work. Thissystem enables IRM to hire, train, assign, and promote highly competent personnel. To
help employees realize their potential and develop their career, IRM has established asystem through which they can indicate their career path intentions, leading to the
optimal assignment of employees.

* In accordance with the Act on Investment Trusts and Investment Corporations, theinvestment corporations whose assets IRM manages are prohibited from hiring

employees, and therefore outsource operations including asset management, custody,
and administration.

【 Human Resource Strategy 】

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Initiatives for Employees
Career development

Professional development and training programs

career path once a year and discuss it with their superior. Moreover, each new hire is assigned asystems matched to job levels and other factors.

In addition to a job rotation program, IRM has a system for employees to indicate their desiredsenior employee as an instructor as well as a separate employee to act as a mentor who can be
consulted on work and other various matters.

We have set up a wide range of training programs and self-development support

Examples ofTraining

Performance appraisals and feedback process
Our personnel evaluation consists of "performance evaluation," which evaluates the degree ofachievement against one's own business goals, and "behavioral evaluation," which evaluates
the performance required by each organization and position.

Goal management interviews are held three times a year at the beginning of the fiscal year
(goal setting), middle of the term (review), and at the end of the fiscal year (feedback) toestablish a transparent goal-setting process with good communication between supervisorsand subordinates, and an evaluation system to support employees' achievement of goals,

expansion of results, and growth. In particular, during the review process, the supervisor andTraining for
New Managers

Participants acquire knowledge and skills essential for leaders, suchas management, trust building, team building, human resource
development, and labor management, through a total of six sessions.

Next Generation
Business Leader
Training

To foster a sense of management as a mid-level employee. To
recognize the role required of them as the core of the organization,
based on their own strengths and weaknesses.

Step-up Training

Learn key points of job management such as organizational skills,
task management and visualization, to improve communication skills
and to raise business skills.

the subordinate confirm "GOOD (what went well, what was accomplished)" and "MORE (whatcan be improved further)," which leads to concrete actions to achieve goals.

Fixed salaries and bonuses are determined based on the evaluation, and bonuses for

employees (including non-executive officers and non-operating departments) are partiallylinked to the performance of each investment corporation and fund under management. In

addition, through individual interviews, we provide feedback on evaluations and dialogue on

Follow-up Training
for Young
Employees

individual career development, which is used to formulate personnel strategies.

【 Processes for achieving targets in Goal management interviews 】

the beginning of
the fiscal year

Goal Setting

middle of theterm

Review

the end of the
fiscal year

Feedback

Support and financial aid for acquiring certifications
IRM has a system in place to subsidize the cost of acquiring qualifications in order to improve

work performance and acquire specialized knowledge. All executives and employees (including
contract employees) are eligible for this program.

Details

A 3-day course for young employees to consider and design theirown careers and learn the ability to set issues and grasp the essenceof issues in order to become mid-level employees.

Line Care Training

Understand the mechanism of mental health issues and learn
prevention skills as the primary prevention of mental health issues
and understand the key points in creating a healthy workplace.

Team Building
Training

Review the roles expected of team leaders correctly, learn the key
points in building better teams, and raise awareness and broaden
perspectives concerning teams in the workplace

Life Planning
Training

Enable experienced staff members to take inventory of their careerand skills to further utilize their skills and to design their careers
using their strengths

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Wellbeing （ Initiatives for health and comfort ）IRM strives to create a healthy and comfortable working environment in which all executives and employees can fulfil their full potential.

Promotion of Health Management

In October 2020, IRM established the Health and Productivity Management Policy and declaredthat we will advance efforts towards the maintenance and improvement of employees’ andtheir families’ health in mind and body. These programs received recognition by externalorganizations and health and productivity management-related certifications were acquired.
IRM has now been awarded the 'Gold Certification' for the first time as an excellent healthcompany as of 20 September 2023.

Health and Productivity Management Organization2023(SME category )Human Resources System
Childcare leave, shortened work hours for childcare, nursing leave
To support the balance between work and child rearing, a childcare leave system isavailable until the child is two years old, and a shorter working hour system forchildcare is available until the child enters primary school. In addition, employees canuse special leave (paid) to care for a child while the child is in primary school, in
addition to paid leave to care for a child before the child starts primary school.

Caregiver leave, shortened work hours for caregivers, caregiver absenceGold certification authorisation
No. KYOKIN No. 159.

Silver authorization Certification No.
Kengin No. 903 (2)To assist employees in balancing work and caregiving, we offer caregiving leave,

The following priority measures have been established to promote Health and Productivity

shortened work hours for caregivers, and caregiver absence.

promotion of employee health.

Hourly paid leave

Management that emphasizes the creation of a comfortable work environment and the

1. Recognize health issues at the beginning of each fiscal year, set specific goals (plans and numerical targets)based on health issues, verify the results at the end of the fiscal year, and implement the "PDCA (Plan-Do-Check-Act) cycle of health management" to achieve further improvements in the new fiscal year.

2. Enhancement of work-life balance (harmony between work and life)
3. Ensure 100% of employees receive regular health checkups, encourage family members (dependents) toreceive checkups, and prevent serious illnesses (improve the rate of retests and full examinations).

4. Mental health measures (implementation of stress checks, group analysis, and mental health training)
5. Measures to prevent overwork
6. Measures to prevent infectious diseases
7. Measures to prevent passive smoking
8. Promotion of communication to vitalize the workplace
9. Support for balancing work and medical treatment
10．Improvement of health literacy (setting up educational opportunities for managers or employees)
11. Efforts to maintain and promote women's health (addressing health issues specific to women)
12. Efforts to improve dietary habits and promote exercise opportunities
13. Initiatives to provide opportunities for specific health guidance

For five days (40 hours) each year, paid leave can be taken in one-hour increments.

Telecommuting and staggered workday systems
IRM has introduced telecommuting and staggered workday systems to realize diverse
work styles and promote efficient operations.

Continued employment
IRM has set the retirement age at 60, but eligible employees may choose to be
reemployed as a commissioned employee under a renewable annual contract.

Congratulatory and condolence money
IRM provides congratulatory benefits for employees’ marriages and childbirths, andIRM also has a system of providing condolence money in preparation of loss of family
members.

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Wellbeing （ Initiatives for health and comfort ）Employee Benefits

Office environment development

Cafeteria-style benefits package

IRM has developed its office environment so that each and every officer and employee can

The cafeteria-style benefits package offers employees preferential rates for theunlimited use of a broad range of services provided by various partners, such as

work comfortably, and in April 2023, a major layout change was made to expand the sharedspace in the office.

hotels, fitness clubs, and childcare providers. The objective is to support employees
in balancing work and family life, and in improving their health.

Employee investment unit ownership program
We have established an investment unit ownership program for investing in unitsof the investment corporations whose assets we manage (Advance Residence

Investment Corporation and Advance Logistics Investment Corporation). The aim
is to further align the interests of our employees with those of the investment
corporations’ unitholders and to expand employee benefits.

Company gatherings
The organization of social gatherings, walking events and various communication

events deepens the friendship between employees. By promoting good health andfostering communication between employees in various departments, company-

Expansion of internal meeting spaces

Individual booths

Meeting space has been expanded to

From the perspective of promoting in-house DX,

stimulate communication between

employees. Not only team meetings, but also
cross-departmental exchanges have become
more active.

individual booths are set up for online meetings

and telephone conferences. They are well received
within the company as they allow employees toconcentrate on their work.

wide morale is enhanced.

Periodic monitoring of employee satisfaction
To be a company where employees can work with pride and satisfaction, we conduct
annual employee satisfaction surveys and apply the results to such efforts asimproving the workplace environment.
【Results conducted in FY2022】

Surveyed: Directors and Full-time employees
Response rate: 94.1％

Employee interaction in communication
spaces
A communication space has been set up in
the office. Employees are free to use thecommunication space for internal meetingsand lunches, and it provides a place forinteraction.

Creation of magnetic spaces
Free coffee servers, water servers,

multifunctional machines and otherequipment that can be shared by employees
are located together, creating a magnet
space where people naturally gather.

Communication across departmental

boundaries takes place not only during
breaks but also at work.

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Compliance Structure
IRM has established a corporate governance framework by clearly defining our commitment to our fiduciary duty, setting up compliance and investment committees, and other means.
The framework enables us to ensure risk management and compliance in our operations, fairly handle transactions involving conflicts of interest, and work toward improving andfurther enhancing our corporate governance.

Supervision by the Board of Directors and other bodies

Basic Policy on Customer-Oriented Business Conduct

The status of risk management is reported to the Board of Directors of IRM and each

IRM places the highest priority on faithfully managing the funds entrusted to us byinvestment corporation as required.

IRM formulates a compliance program each term to serve as a detailed plan of action
for putting into practice the compliance manual, which is our code of conduct. The
program is finalized after deliberation by the Compliance Committee and approvalby the Board of Directors. The results of verification of the program’s progress andinvestors and have established the Basic Policy on Customer-Oriented BusinessConduct and publish the appropriate management of conflicts of interest

transactions, clarification of fees, and other relevant matters on the website.
Please refer here for the Basic Policy on Customer-Oriented Business Conduct on

the IRM website(in Japanese).

other factors are reported to the Compliance Committee and the Board of Directors.
In addition, the results of internal audits and the operational status of thewhistleblowing system are also reported to the Compliance Committee and theBoard of Directors.

IRM also has a system in place in which the Compliance Committee and the Boardsof Directors of IRM and each investment corporation can offer opinions and makeother suggestions regarding the reported matters as needed to ensure that
improvement efforts are effective.

Furthermore, the Sustainability Promotion Committee identifies and evaluates

climate-related risks and opportunities, formulates strategic plans for key challenges,
and verifies the results of measures based on the Climate Change and Resilience

Policy, after which it reports these matters to the CEO and to the Board of Directors.
Attendance● Over the past year, attendance rates of executive and supervisory directors at the board meetings of
ADR and ADL have been 100%. *1● The attendance rate of directors and auditors at Board of Directors meetings of the asset
management company was 98% in FY2022.
*1 The figures for the terms ending January 2023 (25th term) and July 2023 (26th term) are used
for ADR. The figures for the terms ending February 2023 (9th term) and August 2023 (10th term)
are used for ADL.

Directors and Officers investment unit ownership program
IRM has introduced an investment unit ownership program for directors and officers
with the objective of achieving growth in unitholder value over the long term bystrengthening the alignment of interests between our officers and the unitholders of
ADR and ADL, both listed companies. The executive compensation of IRM’srepresentative director is partly linked to the progress of ESG-related initiatives.

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Preventing Misconduct and Corruption
IRM recognizes that legal compliance is a given, and that we must ensure compliance to continue being an organization that is trusted by society. We have therefore established

our Anti-Corruption Policy as part of our Compliance Manual. Our Anti-Corruption Policy stipulates that we will maintain sound relationships with our stakeholders and that we will
not provide entertainment or gifts that may lead to the suspicion or distrust of society.

As specific measures, IRM implements guidelines related to bribery and internal audits are conducted every year to confirm that expenses are not being misused every year.
The ITOCHU Group has also established the ITOCHU Group Anti-Corruption Policy based on the Corporate Ethics Code of Conduct. It prohibits the provision of money and goods,

entertainment, convenience and other profits to public officials and officers and employees of private entities, in Japan or overseas, for the purpose of gaining an illegal advantage.

Anti-corruption Policy
1. We will not engage in or be complicit in any form of corruption, including embezzlement, fraud, money laundering, or the obstruction of justice.
2. We will not provide money, services, conveniences, or other benefits to civil servants or persons in similar positions in Japan or elsewhere for the purpose ofobtaining illicit gains.

3. We will not provide money, services, convenience, or other benefits to the officers and employees of private-sector business partners for the purpose of obtaining
illicit gains.

4. We will not request business partners and others to provide entertainment or gifts that go beyond personal benefits or common sense.

ITOCHU Group Policy

The ITOCHU Group ensures the implementation of compliance principles, that is, legal compliance, and recognizes that it must continue to be an organization with acceptable
standards in a modern society. We have no tolerance for any gain obtained through illegal means.

To address the risk of bribery and corruption, the ITOCHU Group has established rules that cover, among others, application and approval procedures and recording methods. These
rules describe behaviors that are commonly found in scenarios where bribery or corruption take place and instruct the strict observance of those rules. The rules were establishedbased on the Regulations Concerning the Prohibition of Giving Illicit Benefit, as well as four related guidelines about public officers, foreign public officers, business partners, andinvestments.

【 ITOCHU Group Anti-Corruption Policy 】
1. No money, entertainment, gifts, or anything of value shall be given to any public or quasi-public official inside or outside of Japan, to obtain illicit gains.
2. No money, entertainment, gifts, or anything of value shall be given to any director, officer or employee of any private entity, to obtain illicit gains.
For more information on the ITOCHU Group Anti-Corruption Policy, please click here.

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Preventing Misconduct and Corruption
Internal audit structure

Implementation of compliance training

Internal Audit Regulations, the Internal Audit Office conducts internal audits on theensure that each officer and employee understands the purpose of laws and regulations,with laws, regulations, the Articles of Incorporation, and internal regulations, as well as thecompliance mindset.

unannounced inspections of information management and other operations two times aemployees but also temporary employees and others) several times a year. To date, we haveconducted by an external third-party organization once every five years. The Internalharassment and sexual harassment, and personal information management. By focusing on

years.

compliance knowledge of officers and employees and to foster a mindset of compliance.

We have an Internal Audit Office under the direct control of the president. Based on our

IRM continuously provides education and awareness-raising programs on compliance tooverall operations of all departments once a year to verify the status of their compliancesocial norms, business rules, and other standards and complies with them with an enhanced

procedures for executing duties and the validity of the work done. It also carries out

IRM offers a variety of compliance training for all officers and employees (not just full-time

year. Furthermore, a system audit of IRM and property management companies iscovered topics such as responding to legal amendments, measures to prevent power

Audit Office itself is also evaluated by an external third-party organization once every fiveissues of interest in society in a timely manner, we are continuously working to enhance theIf problems are identified or requests for improvement are made in audits, the audited
department is required to formulate a plan for improvement and have it approved by

IRM’s Board of Directors. Later, the Internal Audit Office conducts a follow-up audit andreports the progress made on improvement to the Board of Directors.

Whistleblowing system
We have set up whistleblowing contacts where all officers and employees can directly

report misconduct (four internal, two at the parent company, and one at an independent
third-party). Under the whistleblowing system, we have established an appropriate
handling mechanism, protect whistleblowers, and maintain the confidentiality ofInitiatives
General Training

Training sessions held for all officers and employees
In FY2022, we offered the following series of training sessions to all officers
and employees (including temporary employees and others in addition to
full-time employees): Administrative Disposition Cases, Information Security
Structure. We also conducted exams on compliance every other month.

Training at the timeof hireIn FY2022, for new hires (including mid-career hires, dispatched employees,
and others), we provide training and review exams over a total of ninesessions on matters that they need to understand for their work at IRM.

Rank-based
training

information. The system is designed to strengthen compliance management through theearly detection and correction of improper acts, including bribery. The operational status of
the whistleblowing system is reported to the Compliance Committee and the Board of

OthersDirectors once a year.

The Compliance Officer immediately investigates the facts when report or consultation

concerning a fact that is the subject of a report is received, unless there is a valid reason

not to investigate the subject matter. The results of the investigation are reported to therepresentative director, president & CEO and to the general manager of the General Affairs
and Management Division, and corrective action and measures to prevent recurrence are

Details

IRM provides rank-based training every year.
Compliance-related information (including matters linked to preventing
corruption) such as internal rules and regulations, revision of laws andregulations, and compliance incidents and efforts at other companies isprovided as appropriate.
As part of ITOCHU Group compliance, ITOCHU Corporation conducts on-sitecompliance training once a year.

Case in IRM●In FY2022(April 2022 to the end of March 2023), there were no incidents of complianceviolations disciplinary action based on our Employment Regulations or Board of
Directors Regulations.

decided through discussion. If an internal disciplinary action is deemed appropriate, We●There have been no incidents of violations of our Anti-corruption Policy, nor were any
officers or employees disciplined or dismissed for this reason.

the subject case in accordance with the Company's internal rules such as the Employment●IRM has never paid any fines or settlements related to corruption.

will impose an appropriate disciplinary action on the officers and employees involved inRegulations.

●No payments of fines or settlements have been identified as ESG issues in our audited
accounts.

disadvantageous treatment against whistleblowers.

●IRM complies with the Political Funds Control Act, the Public Offices Election Act, andother relevant laws and regulations, and has never paid any political contributions.

In addition, in compliance with the Whistleblower Protection Act, we prohibit

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Preventing Misconduct and Corruption
Disclosure
In order to ensure disclosure transparency, in addition to statutory disclosures, ADR and ADL will disclose information it deems useful and valuable on a timely basis in an easy-tounderstand form. Specifically, ADR and ADL will actively disclose information on its website in addition to disclosing on the Tokyo Stock Exchanges disclosure system .

Management Fee StructureManagement fee structures for ADR and ADL are linked to unitholders’ interests. Moving forward, we aim to further align the interests ADR and ADL unitholders with the interests of IRM.

Fee Category

Fees Linked To

Maximum Rate

Fee Category

Fees Linked To

Maximum Rate

AM Fee Ⅰ

NOI*

7.00％

AM Fee Ⅰ

Total Assets

0.05％

AM Fee Ⅱ

AM FeeⅠ X
Adjusted FFO Per Unit*

0.05％

AM Fee Ⅱ

NOI

5.00％

AM Fee Ⅲ

Net Income Before Tax X
Adjusted EPU*

0.004％* NOI = Gross Operating Income minus Gross Operating Expense (excluding depreciation andloss from fixed asset retirement)* Adjusted FFO per Unit＝(net profit excluding AM Fee II + depreciation expense - gains ontransfer of real estate + losses on transfer of real estate + impairment losses) / Number ofinvestment units issued as of the closing date of the accounting term

* Adjusted EPU = Net profit excluding AM Fee Ⅰ,Ⅱ,Ⅲ / Number of investment units issued asof the closing date of the accounting term

Disclosure of rewards
The executive compensations of ADR and ADL officers are determined based on the Investment Corporation Agreements. Specific compensation amounts are found in the asset
management report of the respective corporations.
ADR Asset Management Reports: Click here to see the asset management reports of ADR for previous fiscal terms.
ADL Asset Management Reports: Click here to see the asset management reports of ADL for previous fiscal terms.

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Green FinanceMateriality and Targets

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Environment

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Green FinanceGreen finance refers to financing (i.e., issuance of bonds (green bonds) and/or procurement of loans (green loans)) for which use of proceeds is limited to environmentally-conscious

projects. IRM intends to use the proceeds from green financing for implementing sustainability-promoting initiatives in line with its Basic Sustainability Policy, and will proactively

recognize the required level of environmental, social, and governance (ESG) practices through a dialogue with investors and apply such knowledge to its asset management strategy.

Green Financing Framework
ADR
Purpose of funds procured throughgreen finance

項目
Eligibility criteria

Green Finance Framework Evaluation*Please see below for details of the evaluation
results of each investment corporation.
ADR
ADL

ADL

・Costs of acquisition of green eligible assets
・Costs of renovation work which meets the eligible criteria or costs of
the repayment of loans or redemption of investment corporation
bonds that initially funded such acquisitions or renovations

・Costs of acquisition of green eligible assets
・Repayment of loans borrowed for acquisition of green eligible assets
・Redemption of investment corporation bonds issued for acquisition ofgreen eligible assets

The green eligible assets are selected from assets for which ADL has
obtained or plans to obtain one or more of the following third-party
certifications

The green eligible assets are selected from assets for which ADL has
obtained or plans to obtain one or more of the following third-party
certifications

・5,4,or 3stars of the DBJ Green Building Certification
・S,A or B+ rank of CASBEE Certification
・5,4,or 3stars of BELS Certification

・ 5 or 4 stars of the DBJ Green Building Certification
・ S or A rank of CASBEE Certification
・ 5 or 4 stars of BELS Certification

ADR and ADL received the “Green 1 (F)” rating, the highest rating in the JCR Green Finance Framework Evaluation by the Japan Credit Rating

Agency, Ltd. (JCR), which assesses if a framework is in line with the requirements of the Green Bond Principles of the International Capital Market

Association, the Green Bond Guidelines of the Ministry of the Environment of Japan, and the Green Loan Principles of the Loan Market Associationand the Asia Pacific Loan Market Association.

Green Finance Performance
Number of properties

Total Floor Area

Number of properties

Total Floor Area

3

89,651.14㎡

3285,181.72㎡

properties

Green finance appropriation amount

9,600million yen

properties

Green finance appropriation amount

22,700 million yen

Reporting
The status of funds raised with green financing is updated annually and uploaded on the websites of ADR and ADL. Reporting on the effectiveness of environmental
improvement (impact reporting) of green eligible assets is also uploaded on the ADR and ADL websites on an annual basis.

ESG Date

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Environmental performance data
Category

EnergyConsumption
Total
Electricity

Fuel

Ditrict Heaing
and Cooling
GHG
Emission(CO2)
Total(scope1+2)
Direct Emission
Scope1In-direct Emission
Scope2

Water Usage

Water itake

Displacement

Waste Volume

Unit
Total Usage(MWh)Intensity(MWh/㎡)
Total Usage(MWh)Intensity(MWh/㎡)
Total Usage(MWh)Intensity(MWh/㎡)
Total Usage(MWh)Intensity(MWh/㎡)

FY 2018(Base Year)

FY 2022
FY 2019

FY 2020

FY 2021

Coverage% Change(vs FY2018)

100.0%−10.5%

100.0%−10.3%

100.0%−13.3%

100.0%−25.0%

100.0%−97.6%

100.0%−14.2%

100.0%−100.0%100.0%−5.8%

15,74915,536

15,354

15,266

14,274

0.086

0.086

0.083

0.082

0.077

14,273

13,926

13,86013,70513,009

0.078

0.077

0.075

0.074

0.077

1,248

1,365

1,263

1,313

1,091

0.060

0.064

0.042

0.061

0.052

229

245

230

248

174

0.016

0.017

0.016

0.017

0.012

Total Usage(t)

7,757

8,119

7,052

253

188

Intensity(t/㎡)

0.043

0.045

0.038

0.001

0.001

Total Usage(t)

219

239

221

230

188

Intensity(t/㎡)

0.010

0.011

0.007

0.011

0.009

Total Usage(t)

7,538

7,880

6,831

23

0

Intensity(t/㎡)

0.041

0.044

0.037

0.000

0.000

Total Usage (㎥)11,035

10,817

11,263

9,879

10,637

Intensity （㎥/㎡）

0.069

0.069

0.070

0.061

0.065

Total Usage (㎥)11,035

10,817

11,263

9,879

10,637--

Intensity （㎥/㎡）

0.069

0.069

0.070

0.061

0.065

-

-

Total Usage (㎥)11,035

10,817

11,263

9,879

10,637--

Intensity （㎥/㎡）

0.069

0.069

0.070

0.061

0.065

-

-

Total Volume(t)

84

119

181

115

126

Recycling
Volume (t)

74

102

160

103

111

Recycling
Rate (%)

88.0％

85.7%

88.4%

89.8%

88.5%

‐
100.0%‐‐

Notes:
1.Review period
In principle, the period from April to March is one fiscal year, and results are updated
on an annual basis.
2.Scope of Reporting
1. Only properties held for the full fiscal year are included in the scope ofreporting, excluding properties that were traded during the fiscal year.
3.Calculation Method
1. “Intensity” is calculated as follows.
Total Usage or Emission (MWh) ÷ Total floor area of common area (m2)
2. For unit-owned properties, the ADR's ownership percentage is multipliedby the relevant data.
3. The calculation of the waste recycling rate is as follows
Recycling rate (%) = (1) Total amount recycled ÷ (2) Total amount x 100(1)Total amount of waste recycled The amount of waste recycled out of thetotal amount of waste generated by the restoration work ordered by
ITOCHU Urban Community, a group company of the asset managementcompany (㎥).
(2)Total amount of waste generated from the same work (㎥).
*The environmental performance data figures for FY2018 through FY2021, which had
been disclosed through FY2022, have been revised for the following reasons. The
revision is due to the application of the new calculation method described in "03.
Calculation Methods - 02" and limiting the scope of calculation of energy
consumption - district heating and cooling to common areas.
*Past performance data may be revised retroactively in accordance with the revision of
calculation methods, etc.

Independent assurance statement
ADR obtained limited assurance from a third party (Sustainability Accounting Co., Ltd.) for environmental performance data (April 2022 - March 2023).

ESG Data

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41

Environmental performance data
Category

Energy Consumption

GHG Emission(CO2)*4Water Usage

Waste Volume

Unit

FY 2020(Base Year)

FY 2021

FY 2022

Total amount（MWh）

23,12822,32824,992

Intensity(/㎡)

0.054

0.048

0.048

Coverage rate （%）

100％

100％

100％

Total amount(t)10,291

9,668

8,841

Intensity(/㎡)0.02410.02080.0169Coverage rate（%）

100％

100％

100％

Total Usage(㎥)30,69326,55427,804

Intensity(/㎡)0.07540.05970.0553Coverage rate（%）

95%

96%

96%

Total volume(t)2088.30

864.0855

1207.19

Intensity(/㎡)0.005520.00186

0.00231

89%

100%

100%

Coverage rate(%）*1 Figures for properties held under quasi co-ownership are also included on a 100% basis.

*2 For properties acquired during the period, the total volume for the year (April 1 to March 31) is
calculated regardless of the acquisition date, if data acquisition was possible.

*3 The coverage rate was calculated as follows:

Square meters of floor area for which data was collected ÷ square meters of total portfolio floor area

*4 Total CO₂ emissions were calculated using the emission coefficients indicated in the "Standards forGreenhouse Gas Emissions Calculation, Reporting, and Disclosure," of Japan’s Ministry of Environment .

Independent assurance statement
ADL obtained limited assurance from a third party (Sustainability Accounting Co., Ltd.) for environmental performance data (April 2022 - March 2023).

ESG Data

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42

Environmental certifications in the portfolio
ADR

ADL

Property
No.

Name

T-035

RESIDIA Nishi-Azabu

T-038

RESIDIA Roppongi-Hinokichokoen

T-039

RESIDIA TOWER Meguro-Fudomae

S

T-044

RESIDIA TOWER Azabujuban

A

T-054

RESIDIA Shibaura

A

T-056

RESIDIA Yutenji

T-057

Park Tower Shibaura Bayward
Urban Wing

T-064

RESIDIA TOWER Nakameguro

T-065

RESIDIA Sasazuka II

T‐084

RESIDIA Ochanomizu II

T-087

RESIDIA Ichigaya-Sadohara

T-093

RESIDIA Kamata

★★★

T-103

RESIDIA Kinshicho

★★★★

T-120

RESIDIA Bunkyo-Otowa

A

T-131

RESIDIA Mejiro

A

T-133

RESIDIA Nihonbashi-Bakurocho

A

T-134

RESIDIA Suginami-Honancho

A

T-140

RESIDIA Minami-senjyu

S

T-150

RESIDIA TOWER Kami-Ikebukuro（Tower Building）

S

Assessment and Certification is a method for assessing and rating the environmental performance

RESIDIA TOWER Kami-Ikebukuro（Park Building）

A

performance of real estate in an easy-to-understand manner by focusing on evaluation items that

T-170

RESIDIA Shin-Okachimachi II

A

S-020

Pacific Royal Court Minato Mirai
Ocean Tower

A

R-030

RESIDIA Izumi

A

R-042

RESIDIA Nishijin

A

R-053

RESIDIA Higashizakura II

A

Total
＊Actual results for July 2023

DBJ Green Building
Certification＊１

CASBEE(Real Estate)＊2

BELS certification＊3

PropertyNo.

Name

DBJ Green
Building

L－2

i Missions Park Kashiwa

★★★

L－3

i Missions Park Noda

★★★

L－4

i Missions Park Moriya

★★★★

★★★★★

Lー5

i Missions Park Misato

★★★★

★★★★

Lー6

i Missions Park Chiba-Kita

Lー7

i Missions Park Inzai

Lー9

i Missions Park Kashiwa2

★★★★

Lー10

i Missions Park Inzai 2

★★★★

★★★★★

★★★

Lー11

i Missions Park Tokyo Adachi

★★★★

★★★★★

Lー12

i Missions Park Miyoshi

★★★★

★★★★★

Lー13

i Missions Park Ichikawa-Shiohama

A
★★★★

★★★
A

★
A

Total

CASBEE(Real Estate）

BELS certification

★★★★★
★★★★

★★★★★
S

★★★★★

S
8 properties

2 properties

8 properties＊Actual results for Sept 2023

6 properties 17 properties*1 DBJ Green Building Certification is a certificate developed by Development Bank of Japan Inc.
(DBJ) to identify and certify real estate properties that satisfy various social needs including
environmental quality. Please refer to the following sites for details.

*2 CASBEE (Comprehensive Assessment System for Built Environment Efficiency) Real Estateof buildings and sites. It is an evaluation system that aims to indicate the environmental

are strongly related to the real estate evaluation. In order of rank from the highest to the lowest,
the rating is assigned as 'S rank', 'A rank', 'B+ rank' or 'B rank'. This is a third-party certification

system operated by the Centre for the Promotion of Housing and Building SDGs, in which CASBEE
assessment results are certified by a CASBEE assessment certification body. 。

*3 BELS (BELS Building Energy Efficiency Labeling System), which stands for Building-Housing Energy-

efficiency Labeling System, is a system for evaluating and certifying the energy-saving performance

1 property(fuel consumption) of buildings.

ESG Data

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About us

Environment

GovernanceSocialGreen Finance

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43

Human Resource Data（IRM）
Workstyle Reforms ・ Diversity

Key Human Resource Data
Category

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Workstyle
Reforms/Diversity

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Employees*1(No. of people)

59

62

64

67

78

Average overtime (Length of
time)

17:31

20:35

23:46

20:41

26:16

Males
(No. of people)

49

52

52

55

62

Paid leave acquisition rate
(Percent)

79.9%

68.4%

68.2%

59.8%

67.9％

Females(No. of people)

10

10

12

12

16

Share of female executives(Percent)

0.0%

0.0%

0.0%

0.0%

0.0%

Percentage offemales (Percent)

16.9%

16.1%

18.8%

17.9%

20.5％

0.0%

3.7%

6.3%

11.4%

10.3％

8 yrs
1 mths
8 yrs
3 mths
7 yrs
6 mths

8 yrs
1 mths
8 yrs
1 mths
8 yrs
2 mths

8 yrs
5 mths
8 yrs
7 mths
7 yrs
10 mths

8 yrs
8 mths
8 yrs
11 mths
7 yrs
7 mths

8 yrs
3 mths8yrs
6 mths
7 yrs
2 mthsShare of female managers(Percent)
Users of childcare leave system(No. of people)

1

1

1

1

1

Users of shortened work hours
for childcare (No. of people)

2

1

1

0

1

Users of nursing leave (Whole)

76.5%

78.6%

66.7%

50.0%

83.3%

2

6

6

6

2

69.2%

72.7%

58.3%

45.5%

77.8％

Males
(No. of people)

Users of nursing leave (Percent
of males)

2

5

4

5

1

100.0%

100.0%

100.0%

100.0%

100.0%

Females(No. of people)

Users of nursing leave (Percent
of females)

0

1

2

1

1

Turnover*2(Percent)

3.4%

8.1%

6.3%

3.0%

5.1%

Average years ofservice (No. of years)
Males(No. of years)
Females(No. of years)
No. of new hires(No. of people)

Employee Health and Safety
2018年度Annual medical
exam taken(Percent)

Occupational
accident frequency
rate*3 (Percent)

100%
0.00

2019年度

100%
0.00

2020年度

100%
0.00

2021年度

2022年度

100%
0.00

100%
0.00

Coverage: Full-time employees and contract employees
Notes:
1. Number of employees as of March 31 .Information is before the asset management company merger on June 1, 2022,
and therefore does not include the number of employees of the former ITOCHU REIT Management Co.,Ltd.
2. Turnover is calculated by dividing the number of employees that left IRM during the fiscal year by the number of
employees as of March 31. Additionally, there were no workforce reductions due to corporate mergers or acquisitions
involving restructuring, or for other reasons during the fiscal years listed above. Also , and the same applies to the

Employees with professional certification
Certification

Number of people certified

Real Estate Transaction Agent

58

ARES Certified Master

37

Certified Building Administrator

4

First-Class Architect

5

Lawyer1

Real estate appraiser

1

Securities Analyst

5

Certified Public Accountant

2

U.S. CPA

1

Labor and Social Security Attorney

1

Certified Internal Auditor

1

merger between asset management companies on June 1, 2022.
3. Occupational accident frequency rate is calculated as follows: number of fatalities and injuries due to accidents ÷
cumulative work hours x 1 million hours.
For details, please refer to the following Ministry of Health, Laboure and Welfare site (in Japanese).

※ Number of people as at end-March 2023 （excluding those seconded to IRM and temporary staff; including those seconded
to outside companies)。Real Estate Transaction Agent and CASBEE Building Assessor is based on successful applicants.

ESG Data

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44

Human Resource Data（IRM）
General training

Career Support System

Category

Overview

Managers

Generalemployees

New officer training

Responsibility and role recognition required of
officersnoapplicable
employees

－

－

－

35

－

－

3.5

Manager training

Training of future executives
Line Care Training

Non-regular
Hours/people
employees

Future manager training

Management training

－

4

－

7.15

Next generation Businessleader training

Leadership training

－

7

－

7

Fourth-year training

Training for fourth-year employees

－

1

－

10

Second-year training

Training for Second-year employees

－

1

－

6.5

Instructor training

Training for appointees as instructors of new
hires

－

no applicable
employees－－

New hire training

Basic training for new graduate hires(ITOCHU Group)－

no applicable
employees－－

Bookkeeping training

Training on basic bookkeeping knowledge for
new hires－no applicable
employees－－

Training on office machinery

Training for new hires and some junioremployees－

no applicable
employees－－

Compliance training andexams

Comprehensive compliance training(For all officers and employees Apart fromtraining, compliance exams are conducted once amonth, in principle.)－

Cumulative
total:184－－

Sustainability training andexams

Training aimed at raising the awareness ofofficers and employees

38

35

8

1

Life Plan Training

Life planning and career design training for
employees over 50 years old

－

1

－

3.5

Cafeteria-style training

Training provided by the ITOCHU Group.
Participants have a choice of approx. 200 courses.

4

5

－

－

Company-wide online
health program

Online stretching and yoga instruction forincreased physical activity

38

35

13

1

* FY2022 actual results

Category

Overview

Managers

Generalemployees

Mentor system

System of support by senior employees(expenses borne by company)－

no applicable
employees

Career path reporting system

System for employees to indicate career path intentions－

35

Support for certification

System of financial aid toward the costs of acquiringcertification to improve business execution skills and gain
expertise

12

16

Language learning support

System of financial aid for part of the costs of language
classes to improve language skills required for business

53* FY2022 actual resultsComparative Table
with GRI Standards（GRI content index）

GRI Standards

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

Comparative Table with GRI Standards （GRI content index）
Universal Standards

Page

References

GRI 2: General Disclosures 2021
1.The organization and its reporting practices
2-1

Organizational details

3
5

Overview of the investment
corporation
Overview of the asset managementcompany

2-2

Entities included in the organization’s sustainability
reporting22-3

Reporting period, frequency and contact point2

2-4

Restatements of information

N/A

About This ESG Report
Inquiries
N/A

2-5

External assurance

N/A

N/A

About This ESG Report

2.Activities and workers
2-6

Activities, value chain and other business relationships

－

－

2-7

Employees

43

Human Resource Data

2-8

Workers who are not employees

－

－

11

Governance

－

－

11

Governance11

Governance11

Risk Management

11

Governance

3. Governance
2-9
2-10
2-11
2-12
2-13
2-14

Governance structure and composition
Nomination and selection of the highest governancebody
Chair of the highest governance bodyRole of the highest governance body in overseeing themanagement of impacts
Delegation of responsibility for managing impacts
Role of the highest governance body in sustainability
reporting

Topic Standards (Economic)
GRI201: Economic Performance 2016
201-1
Direct economic value generated and distributed
Financial implications and other risks and opportunities
201-2
due to climate change
Defined benefit plan obligations and other retirement
201-3
plans
201-4
Financial assistance received from government
GRI 202：Market Presence 2016
Ratios of standard entry level wage by gender
202-1
compared to local minimum wage
Proportion of senior management hired from the local
202-2
community
GRI 203：Indirect Economic Impacts 2016

Page

References

－

－

11

Climate Change Initiatives

－

－

－

－

－

－

－

－

203-1

25

203-2
Significant indirect economic impacts
GRI 204：Procurement Practices 2016
204-1
Proportion of spending on local suppliers
GRI 205：Anti-corruption 2016－

Initiatives for Tenants and Regional
Contribution
－

－

－

205-1

35

Preventing Misconduct and
Corruption

44

General training

35

Case in IRM

35

Case in IRM

－
－

－
－

Infrastructure investments and services supported

Operations assessed for risks related to corruption

Communication and training about anti-corruption
policies and procedures
205-3
Confirmed incidents of corruption and actions taken
GRI 206：Anti-competitive Behavior 2016
205-2

206-1

Legal actions for anti-competitive behavior, anti-trust,and monopoly practices

2-15

Conflicts of interest

35

2-16

Communication of critical concerns

35

Preventing Misconduct and
Corruption
Case in IRM

2-17

－

－

－

－

207-3

Stakeholder engagement andmanagement of concerns related to tax

－

－

2-19

Collective knowledge of the highest governance body
Evaluation of the performance of the highest
governance body
Remuneration policies

GRI 207：Tax 2019
207-1
Approach to tax
207-2
Tax governance, control, and risk management

３６

Disclosure of rewards

2-20

Process to determine remuneration

３６

Disclosure of rewards

207-4

Country-by-country reporting

－

－

2-21

Annual total compensation ratio

－

－

Page

References

－
－

－
－

－

－

GRI 302: Energy 2016
302-1
Energy consumption within the organization

39

ESG Date

302-2

Energy consumption outside of the organization

－

－

302-3
302-4

Energy intensity
Reduction of energy consumption

39
39

ESG Date
ESG Date

302-5

Reductions in energy requirements of products andservices39

ESG Date

2-18

4.Strategy, policies and practices
2-22Statement on sustainable development strategy

4

Message from Top Management

2-23

Policy commitments

4

Message from Top Management

6

Sustainability Policy

28

11

Human Rights Policy
Preventing Misconduct and
Corruption
Governance

34
2-24

Embedding policy commitments

23

Supply Chain Management

2-25

Processes to remediate negative impacts

－

2-26

Mechanisms for seeking advice and raising concerns

35

2-27

Compliance with laws and regulations

35

2-28

Membership associations

5－
Preventing Misconduct and
Corruption
Case in IRM
Overview of the asset managementcompany

Topic Standards (Environmental)
GRI 301: Materials 2016
301-1
Materials used by weight or volume301-2
Recycled input materials used
301-3

Reclaimed products and their packaging materials

GRI 303：Water and Effluents 2018
303-1

Interactions with water as a shared resource

－

－

303-2

Management of water discharge-related impacts

－

－

39
39
39

ESG Date
ESG Date
ESG Date

－

－

－

－

－

－

－

－

5. Stakeholder engagement
2-29

Approach to stakeholder engagement

33

2-30

Collective bargaining agreements－

Basic Policy on Customer-Oriented
Business Conduct－

GRI 3: Material Topics 2021
3-１

Process to determine material topics

－

－

3-2

List of material topics

8

Materiality and Targets

3-3Management of material topics

8

Materiality and Targets

39

ESG Date

303-3
Water withdrawal
303-4
Water discharge
303-5
Water consumption
GRI 304: Biodiversity 2016
304-1

304-2
304-3
304-4

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highbiodiversity value outside protected areas
Significant impacts of activities, products, and services
on biodiversity
Habitats protected or restored
IUCN Red List species and national conservation list
species with habitats in areas affected by operations

46

GRI Standards

About usMateriality and Targets

Environment

SocialGovernanceGreen Finance

ESG Date

Comparative Table with GRI Standards （GRI content index）
Topic Standards (Environmental)

Page

References

GRI 305: Emissions 2016
305-1
305-2

Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions

39
39

ESG Date
ESG Date

305-3

Other indirect (Scope 3) GHG emissions

18

Environmental Performance Data

305-4
305-5

GHG emissions intensity
Reduction of GHG emissions

39
39

ESG Date
ESG Date

305-6

Emissions of ozone-depleting substances (ODS)

－

－

N/A

N/A

Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions
GRI 306: Waste 2020
305-7

306-1

Waste generation and significant waste-related impacts

－

－

306-2

Management of significant waste-related impacts

－

－

39
39
－

ESG Date
ESG Date－

306-3
Waste generated
306-4
Waste diverted from disposal
306-5
Waste directed to disposal
GRI 308: Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental criteria

－

－

308-2

Negative environmental impacts in the supply chain andactions taken－－

Topic Standards (Social)

Page

References

GRI 401: Employment 2016
401-1
New employee hires and employee turnover43

Human Resource Data

－

－

401-3
Parental leave
GRI 402：Labor/Management Relations 201643

Human Resource Data

402-1

－

－

－

－

－

－

－

－

－

－

－

－
Wellbeing （ Initiatives for health andcomfort ）401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

Minimum notice periods regarding operational changes

GRI 403: Occupational Health and Safety 2018403-1
Occupational health and safety management system
Hazard identification, risk assessment, and incident
403-2
investigation
403-3
Occupational health services
Worker participation, consultation, and communication
403-4
on occupational health and safety
403-5
Worker training on occupational health and safety
403-6

Promotion of worker healthPrevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Workers covered by an occupational health and safety
403-8
management system
403-9Work-related injuries
403-10 Work-related ill health
GRI 404: Training and Education 2016
404-1
Average hours of training per year per employee
Programs for upgrading employee skills and transition
404-2
assistance programs
Percentage of employees receiving regular performance404-3
and career development reviews
GRI 405: Diversity and Equal Opportunity 2016405-1
Diversity of governance bodies and employees
GRI 406: Non-discrimination
405-2
Ratio of basic salary2016
and remuneration of women to men
406-1
Incidents of discrimination and corrective actions taken
GRI 407: Freedom of Association and Collective Bargaining 2016
Operations and suppliers in which the right to freedom407-1
of association and collective bargaining may be at risk
GRI 408: Child Labor 2016
Operations and suppliers at significant risk for incidents
408-1
of child labor
403-7

30
N/A

N/A

－

－

43
43

Human Resource Data
Human Resource Data

44

General training

44

General training

44

Career Support System

43
－
35

Human Resource Data－
Case in IRM

N/A

N/A

N/A

N/A

Topic Standards (Social)Page
GRI 409: Forced or Compulsory Labor 2016
Operations and suppliers at significant risk for incidents
409-1
N/A
of forced or compulsory labor
GRI 410：Security Practices 2016
Security personnel trained in human rights policies or
410-1
N/A
procedures
GRI 411: Rights of Indigenous Peoples 2016
Incidents of violations involving rights of indigenous
411-1
N/A
peoples
GRI 413：Local Communities 2016
Operations with local community engagement, impact
413-1
25
assessments, and development programs
Operations with significant actual and potential
413-2
N/A
negative impacts on local communities
GRI 414：Supplier Social Assessment 2016414-1
New suppliers that were screened using social criteria－
Negative social impacts in the supply chain and actions
414-2
－
taken
GRI 415: Public Policy 2016
415-1
Political contributions
35
GRI 416：Customer Health and Safety 2016
Assessment of the health and safety impacts of product
416-1
N/A
and service categories
Incidents of non-compliance concerning the health and
416-2
N/A
safety impacts of products and services
GRI 417：Marketing and Labeling 2016
Requirements for product and service information and
417-1
N/A
labeling
Incidents of non-compliance concerning product and
417-2
N/A
service information and labeling
Incidents of non-compliance concerning marketing
417-3
35
communications
GRI 418：Customer Privacy 2016
Substantiated complaints concerning breaches of
418-1
35
customer privacy and losses of customer data

References
N/A

N/A

N/A
Initiatives for Tenants and Regional
Contribution
N/A－－
Case in IRM
N/A
N/A

N/A
N/A
Case in IRM

Case in IRM

47