Sustainability Report 2024

Japan Metropolitan Fund Investment Corporation

Industrial & Infrastructure Fund Investment Corporation

Support metropolitan life (live, work and consume) in Japan
from the perspective of real estate

IIF invests in social infrastructure as a source of power
for the Japanese economy and supports Japan’s industrial activities
from the perspective of real estate.

―Philosophy――Philosophy―

JMF has been listed on the Real Estate Investment Trust (“REIT”) Section
on the Tokyo Stock Exchange as the third J-REIT in Japan.
After a subsequent merger, the trade name was changed toJapan Metropolitan Fund Investment Corporation in March 2021.

IIF was listed on the Real Estate Investment Trust (“REIT”) Section on the Tokyo Stock
Exchange in October 2007 as the only J-REIT specializing in industrial properties.

Asset Management Consignment

Asset Management Consignment

KJR Management―MISSION―

Always create new values, for people,
the community and the world
Through real estate investment management,
we create new demands in our society andnew values that exceed people’s expectations.
Ownership

KKR & Co. Inc.

KKR is a leading global investment firm andlisted on the New York Stock Exchange with
offices in 26 cities worldwide

CONTENTS

Japan Metropolitan Fund Investment Corporation（JMF）

Industrial & Infrastructure Fund Investment Corporation（IIF）

Top Commitment 

３

Basic Information 

４

JMF / IIF Overview 

4History of Sustainability 

6

6

8

9

KJRM / KKR Overview Highlights 4
5

Sustainability Strategy 
Sustainability Strategy 

Sustainability Promotion Structure Materiality Materiality and KPIs 

10

11

Key Issues and Initiatives 

12
13 14

Environment 

Climate Change and Resilience 

16 16

Environmental Approvals and Evaluations for Assets 

22 25

Energy / Water / Waste / Biodiversity Green Bonds 

Pollution Prevention 

6

10

KJR Management（KJRM）

12

15

Anti-Corruption and Bribery Prevention 
Risk Management 

23
26 26

Human rights 28

Human Capital Development 

30

Diversity, equity, and inclusion 

27Communication with Tenants / Building resilience Communication with Local Communities / Creating a Positive Impact Social Finance Social Contribution Activities 

Data 

Data 

Disclaimer 

29

Health and Well-Being 

Corporate Governance Compliance 

21 24Social 

Governance 

31
32 34
33 35
36
37

How to View Each Page 
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For the JMF contents, click here to read.

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For the IIF contents, click here to read.

Highlights
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Top Commitment

Top Commitment

Top Commitment

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Data

J
I

03

Practicing Responsible Property Investment and Contributing to Solve Global Issues.
KJR Management
President & CEO

Naoki Suzuki
KJR Management Message from PresidentJapan Metropolitan Fund Investment Corporation (JMF) and Industrial & Infrastructure Fund Investment Corporation (IIF), and their asset

management company KJR Management (Company / KJRM), are highly aware of the importance of sustainability and are proactively making efforts toachieve it based on the idea of practicing Responsible Property Investment and helping to solve global issues under our mission: "Always Create New
Value for People, the Community, and the World."

On the environmental front, we believe that environmental and biodiversity initiatives are important as they may significantly affect our businessactivities going forward. These include the announcement of the Taskforce on Nature-related Financial Disclosure (TNFD), which provides a framework
for assessing and disclosing nature-related impacts by businesses, and the holding of COP28, the 28th Conference of the Parties to the United Nations
Framework Convention on Climate Change. Of particular note in the past year, JMF and IIF newly established GHG emissions reduction targets,

upgraded from their CO2 emissions reduction targets toward carbon neutrality, and these newly-established targets have been certified as sciencebased targets by the Science Based Targets initiative (SBTi). Going forward, we will continue to introduce solar power equipment and renewableenergy sources and proactively carry out initiatives to achieve our new GHG emissions reduction targets.

Regarding the social front, we have established the Sustainable Procurement Policy based on the recognition that measures throughout our supply
chain are important for enhancing corporate competitiveness and developing a sustainable society. We expect our business partners to also

implement procurement in accordance with the Policy, and strive to achieve sustainable procurement throughout our supply chain. In addition, by
promoting diversity, equity and inclusion, we are working to create a work environment in which the differences of each of our employees, withvarious backgrounds and perspectives differing in gender, race, nationality, disabilities, age, experience and other aspects, are respected and are able
to fully demonstrate their abilities.

With respect to governance, we operate sound business based on high ethical standards in accordance with the Code of Ethics established in April
Japan Metropolitan Fund
Investment Corporation
Executive Director

Masahiko Nishida

Industrial & Infrastructure Fund
Investment Corporation
Executive Director

Kumi Honda

2001, consisting of the Corporate Ethics Charter and the Code of Conduct for Officers and Employees. We strive to be widely recognized by society as
having high corporate ethics by ensuring that all officers and employees comply with laws, regulations, and rules, and carry out their duties
responsibly.

JMF, IIF, and the Company will contribute to creating a sustainable society by solving sustainability issues through asset management, while aiming toincrease unitholder value through the medium- to long-term growth of JMF and IIF.

Top Commitment

Basic Information

JMF / IIF Overview

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment
MF/IIF Overview

SocialGovernance

KJRM/KKR Overview

J

Data
History of Sustainability

J・Largest scale of assets among
diversified REITs
・Enhanced stability and growth
acceleration
・Maximizing profitability and asset value

Major types of assets

Retail properties
Mixed-use properties
Office・Acquisition of properties withincreased unitholder value・Pursuit of internal growth potential
・Build a long-term stable balance sheet
by promoting the ALM strategy

Other

17

Properties

Tokyo area

74

Nagoya area

Properties

4

Properties

Occupancy ratio

99.2％

Osaka area

Other

Properties

Properties

15

Assets size based on acquisition price※

1,214.3 billion yen※Includes ownership of investment units in Private
REIT Investment Corporation

Nagoya area

Retailproperties

18.6％
Oﬃce

Tokyo area

60.4 ％

Others642

Properties

Properties

Ref.

https://www.jmf-reit.com/english/

Occupancy ratio

100 ％Assets size based on acquisition price389.3 billion yen
14.7％

50.6％

Infrastructure
facilities

Asset allocation

Logistics
facilities

Asset allocation

17.9％

Mixed-use
properties

Logistics facilities
Manufacturing and R&D
Infrastructure facilities

77 Properties
14

3.1％

Major types of assets

Number of properties

132 Properties

37

Highlights

Industrial & Infrastructure Fund Investment Corporation

Number of properties

Properties

J

I

Japan Metropolitan Fund Investment Corporation

Osaka area

04

I

34.7％
（As of August, 2023）

Ref.

https://www.iif-reit.com/english/

Manufacturing
and R&D（As of July, 2023）

I

Basic Information

KJRM / KKR Overview

Top Commitment

Basic Information

K J R M a n a gem en t
KJR Management was established in 2000. As well as being entrusted with asset investment of

JMF and IIF, it has developed a structure to provide discretionary investment and advisoryagency services to private real estate investors. It is one of the largest asset managementcompanies in Japan, with current total assets under management for the two investment
corporations of more than approximately 1.6 trillion yen.

The Company became a subsidiary of leading global investment firm KKR & Co. Inc. ("KKR") on
April 28, 2022, at which time the Company changed its name to KJR Management, as anabbreviation for KKR Japan Realty Management.

KJRM looks to adopt and implement additional sustainability initiatives in collaboration withKKR to advance its environmental, social and governance goals and support a more sustainable
society.

Key Issues and Initiatives

Environment

JMF/IIF Overview

SocialGovernance

KJRM/KKR Overview

J

Data

05

I

History of Sustainability

J

Highlights

I

Assets under management(100 million Yen)

18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
2002

Through the firms' strategic partnership, KJRM looks to leverage KKR's global network,
expertise and experience to grow and deliver greater value for its REIT investors. As part of this,Sustainability Strategy

JMF

2003

2004

2005

2006

2007

2008

2009

2010

2011

1,214.3 bn.
（As of August, 2023）

2012

2013

IIF

2014

2015

2016

2017

2018

2019

2020

2021

2022

389.3 bn.
（As of July, 2023）

K K R & C o. I n c .
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient anddisciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real
assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group.
KKR has had an on-the-ground presence in Japan through an office in Tokyo since 2006.
For more information, please visit https://www.kkr.com/

Basic Information

History of Sustainability

Top Commitment

E Participated in GRESB

2014

E Acquired DBJ Greenfor the first time

2013

First retail property

Became the first J-REIT to acquire
DBJ Green Building Certification
for retail properties, which wasestablished in 2014
E Acquired CASBEE

2016

E Participated in CDP

Certifications for Real
Estate for the first time
Climate Change Program
for the first timeFirst J-REIT

E Acquired BELS

Certification for the first
time

2017

2018

Included in MSCI Japan ESG SelectLeaders Index
E Issued Green Bonds First J-REIT

E Received Special Award of the Principles for

Financial Action for the 21st Century forGreen Bond issuanceE Selected as “Sector Leader” of Retail sector in

Asia by the GRESBKey Issues and Initiatives

Environment

In it iat iv e s a t K J R M

Building Certification
for the first time

2015

Sustainability Strategy

JMF/IIF Overview

Init iat ives at JM F
2012

Basic Information

Established Environmental Charter
Established the Responsible Property
Investment Policy (RPI)
Signed Principles for Financial Action for the
21st Century
Signed Principles for Responsible Investment(PRI)

SocialGovernance

KJRM/KKR Overview

Data
History of SustainabilityJ

I n i ti a ti v e s a t I I F
2012E Acquired DBJ Green

Building Certification for
the first timeFirst logistics facility

2013

E Participated in GRESB

for the first time

Selected as Sector Leader in Asia
Industrial property sector

2015

2016

Established the Corporate philosophy“Mission, Vision & Core Values”

First J-REIT

2014

E Acquired BELS

Certification for the firsttime
First logistics facility

Signed the United Nations Global Compact

First J-REIT asset manager

Since 2016, KJR Management
has supported the business
responsibility initiatives and theprinciples in the areas of humanrights, labor, environment, and anticorruption in the United Nations
Global Compact (UNGC).

2017

Included in MSCI Japan ESG Select Leaders
Index
E Acquired CASBEE Certifications forReal Estate for the first timeFirst logistics facility

06

I

J

Highlights

IBasic Information

History of Sustainability
2019

Issued ESG Report

Top Commitment

Basic Information

Sustainability Strategy

Key Issues and Initiatives

JMF/IIF Overview

2019

E Declared support for Task Force on Climate-

Related Financial Disclosures (TCFD)

2019

First J-REIT asset manager

2022

E Established new CO2 reduction targets

toward carbon neutrality by 2050

E Publication of Positive Impact Real Estate

Investments based on the Principles for
Positive Impact Finance

2020

2022

TCFD recommendations
E Certification and Registration for the “EcoAction 21” (For an Environmental
Management System)

Strengthened total GHG emissions
reduction targets
G Elected first female

Supervisory Directors

2023

2021

History of Sustainability

J

07

I

J

Highlights

S Implemented an impact investment projectbased on the Principles for Positive Impact
FinanceS Issued social bonds

E Established new CO2 reduction targets
E Switched to electricity from renewableenergy in line with RE100 at IIF Shonan
Health Innovation ParkS Established systems for diverse workstyles

Biodiversity (JBIB)E Participated 30by30 Alliance for Biodiversity(30by30 Alliance)

KJRM/KKR Overview

Data

toward carbon neutrality by 2050

G Elected first female director

E Joined Japan Business Initiative forGovernance

Issued ESG Report2022

E Implemented scenario analysis based on

TCFD recommendations

E Participated in CDP Climate Change

Program for the first timeFirst J-REIT asset manager

認証番号0013755

E Acquired SBTi Certification

Climate Initiative (JCI)（Well-being）
S Established childcare leave for male
employees, and other systems（Diversity）
Signed PRI AdvanceE Implemented scenario analysis based on2023

E Participated in Japan

SocialFirst J-REIT

Issued ESG Report

2021

Environment2023

E Acquired SBTi Certification

Strengthened total GHG emissions reduction targets

E Certification and Registration for the “EcoAction 21” (For an Environmental
Management System)
E Acquired ResReal certification

認証番号0013762

I

Top Commitment

Basic Information

Highlights

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

JMF/IIF Overview

SocialGovernance

KJRM/KKR Overview

J

Data
History of SustainabilityJ

Set the new targets for GHG emissions Reduction
2020（Base year）


2050（Long-term Goals）

Absolute Scope1+2

GHG emissions throughout
the entire value chain

Net-zero42％

New Targets for GHG Emissions Reduction

Target year

Mid-term Goals

Long-term Goals

2030

Target year

Base Year

2020

Reduction rate

Reduction rate

42％

Reduction targets

Scope1、Scope2

Calculation criteria

Gross basis

2050
Net-zero

GHG emissions throughout
Reduction
the entire value chain
targets※Scope1、Scope2、Scope3（total）

The above targets were certified by SBTi in June 2023.

Please refer to the following for details on the new GHG emission reduction targets and SBTi certification acquisition
Notice Concerning Setting of New Targets for Greenhouse Gas Emissions Reduction

J

Highlights

I

External evaluation（As of February, 2024） 

2030（Mid-term Goals）

Reduced by

08

Notice Concerning Acquisition of SBTi Certification

GRESB Real Estate rating

5stars（highest rank）

CDP Climate Change Program

A-

Highlights（As of August, 2023） 
Building Certified Ratio（Based on Total Floor Space）

79.2％（As of February, 2024）

Preparing emergency supplies

100％

Scope1+2（Compared to 2020）

Reduced by approx.

Percentage of renewable energy installed（Percentage of portfolio）

22.2％ approx.15.7％

Developing an emergency
communication network

100％

Collecting engineering reports(ERs) regularly

100％Top Commitment

Basic Information

Highlights

Key Issues and Initiatives

Environment

SocialGovernance

KJRM/KKR Overview

Data
History of Sustainability

09

I

J

Highlights

I

2021（Base year）



External evaluation（As of February, 2024） 

2030（Mid-term Goals）

2050（Long-term Goals）

Absolute Scope1+2

GHG emissions throughout
the entire value chain

Reduced by

Mid-term Goals

Long-term Goals

2030

Target year

Base Year

2021

Reduction rate

Reduction rate

42％

Reduction targets

Scope1、Scope2

Reduction
targets

2050
Net-zero

GHG emissions throughout
the entire value chain

Gross basis

4starsPlease refer to the following for details on the new GHG emission reduction targets and SBTi certification acquisition
Notice Concerning Acquisition of SBTi Certification

CDP Climate Change Program

A

Highlights（As of July, 2023） 
Building Certified Ratio（Based on Total Floor Space）

35.2％（As of January, 2024）

Electricity consumption (per unit)（Compared to 2015）

2030 Mid-term targets were certified by SBTi in June 2023.

Notice Concerning Setting of New Targets for Greenhouse Gas Emissions Reduction

GRESB Real Estate rating

Net-zero42％

New Targets for GHG Emissions Reduction

Calculation criteria

Sustainability Strategy

JMF/IIF Overview

Set the new targets for GHG emissions Reduction

Target year

Basic Information

Reduced by approx.

47.2％

Building Certified Ratio(Logistics facilities)

55.6％

Construction of emergency call tree

100％

Scope1+2（Compared to 2021）

Reduced by approx.

38.7％

I

Top Commitment

Sustainability Strategy

Sustainability Strategy

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

J

Data

Sustainability Strategy

10

I

Sustainability Promotion Structure

Mission"Always Create New Value for People, the Community,
and the World"
We practice Responsible Property Investment and contribute to solve global-scale issues.

Our Concept of Sustainability in Property Investment

We implement RPI (Responsible Property Investment) that integrates

environmental, social, and governance elements into property
investment.

Owning and managing properties in an environmentally-friendly andsocially responsible manner adds value to an investment by limiting
the risks of regulatory non-compliance and losing its competitive

RPI Portfolio Management

・Develop and integrate into fund management
strategy based on RPI approuch・Set objectives in order to make achievements
transparent and measurable

position in the market, by making a property more appealing totenants and purchasers and by reducing expenses and improving

returns. Therefore, we believe that this is an important strategy for us.

We also believe that the strategy will bring about a more desirable
result for our environment and society.

Investment Decisions
Refurbishment
Operations and MaintenanceOur sustainability activities are promoted in order of priority assigned according to the external
environment with a focus on the following.

Environment

SocialGovernance- Response to climate change- Health, safty and well-being- Sustainability Disclosure- Introduction of renewable energy use- Resilience- Business Ethics- Biodiversity- DEI

Sustainability-Related Policies

The Company and each of the investment corporations have established sustainability-related policies on
Environmental, Social, and Governance issues.
Sustainability Policy

Sustainability

En v i ron m e n tal

Environmental Charter

K

Investment Corporation

Collaboration with KKRKS oci alKJR Management Human Rights Policy

Sustainable Procurement Policy

KK

Gov e rn an ce

Compliance Basic Policy

Anti-Corruption and Bribery Prevention Policy

Communication with Stakeholders Basic Policy
Disclosure Policy

J

I

K

J

K

I

KKR believes that the thoughtful management of Environmental, Social, Governance, regulatory, andgeopolitical issues is an essential part of long-term business success in a rapidly changing world, andincorporating such business-relevant issues as part of its investment process can both create and protect value.
KKR and KJRM share learnings and best practices related to their sustainability efforts through regular
working-level meetings and collaboration with KJRM’s Senior Advisory Board.

Top Commitment

Sustainability Strategy

Sustainability Promotion Structure

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Sustainability Strategy

The Sustainability Committee

J

Data

I

11

Sustainability Promotion Structure

Chief Sustainability Officer (CSO)The Sustainability Committee is the body that approves resolutions concerning environmental, social, andgovernance policy, strategy, and structure, based on the Sustainability Policy. It also functions as a bodythat shares information on the status of activities, valuation results, and analysis of the sustainability of theinvestment corporations.

The Company appointed President & CEO as the Chief Sustainability Officer (CSO). CSO as the committee
chairman reports the matter confirmed by the Sustainability Committee to the Board of Directors, chairedby the President & CEO and works to share awareness of issues and raise awareness levels.

KJR Management
Meeting of Board of Directors

Sustainability officers in each related division are responsible for driving activities aligned with oursustainability goals.
In addition, Sustainability officers lead and hold meetings as necessary to discuss and review
Sustainability-related issues and promotion methods in detail at the working level (hereinafter referred toas “subcommittees”), either within the division or in cooperation with other divisions. Through thesubcommittees, individual issues are discussed, and information is shared to raise awareness andunderstanding of the issues among those in charge, and to integrate Sustainability considerations into thedaily investment and management process.

Japan Metropolitan Fund Investment Corporation
Executive meeting
Oversight andsupervision

Industrial & Infrastructure Fund Investment Corporation
Executive meeting
ReportThe Sustainability Committee : The Committee meeting shall be held once a quarter in principle
Committee chair
Committee
members

Chief Sustainability Officer

President & CEO, Head of Metropolitan Division, Head of Industrial Division, Head of Private Solutions
Division, Head of Corporate Division, Head of Strategic Planning Office, Head of ESG Promotion OfficeCommittee Meetings held in FY2023
14th meeting on May 18, 15th on Aug. 17, special meeting on Oct. 16, 16th on Nov. 17, special meeting on
Feb. 14th, 17th on Feb. 22 (attendance rate of 100% for all meetings)

Referral / Report

Matters related to JMF(Metropolitan Division)

Referral / Report

Matters related to IIF(Industrial Division)

Referral / Report

Matters related to KJRM/
Funds(ESG Promotion Office)

Referral / Report

Items determined by thechair to be necessary(concerned section formaking proposals)

Person in Charge of Sustainability

Main agenda to be resolved/reported up to the date published●Establishment of 2024 sustainability goals●Joining and signing the Biodiversity Initiative●Annual report on the Social Finance Framework●Identification of Eligible Green Projects / Social
Projects and their Debts●Efforts toward human rights issues●Progress report on sustainability goals●Organization and review of DEI promotion methods●Development and publication of the AntiCorruption Policy●Overview of Green Bond Issuance●Participation in Children’s Cafeteria Onigiri Project

Top Commitment

Key Issues and Initiatives

Materiality

Basic Information

Sustainability Strategy

Key Issues and Initiatives

List of Sustainability Issues

●Response to sustainability certifications●Building resilience●Response to climate change●Energy efficiency●Ensuring of health and well-being of andconvenience for people (tenants)●Employee cultivation and level ofsatisfaction●Efficient water use●Waste disposal●Partnership with stakeholders

Materiality identified（Level of Importance ★★★）

1

4

Committee
Deliberation

1

2

3

4

2

Identification of
Sustainability
Issues3

Establishment ofPriority OrderContinuous Risk Management

The Company manages risks by checking the risk status of each division once every twomonths using a Risk Control Matrix (RCM).

Identification of Sustainability Issues

The Company compiled lists of sustainability issues related to REITs based on the SDGs, global
Sustainability disclosure criteria, and benchmark studies by overseas companies in the same
industry. (Issues are discussed by the Sustainability Committee in principle once every three
years.)

Establishment of Priority Order

Governance

Data

Opportunity

Decline in assessment among tenants andinvestors who base their assessments onsustainability

・Improve environmental performance ofproperties
・Expand the range of investors

I

Response to climate change

J

I

Energy efficiency

JI・Increase in energy-related expenses
・Reinforcement of environmental
regulations

Cost reduction with efficient energy use

Building resilienceJ

I

Increase in expenses for recovery,
compensation, etc., after natural
disasters

Increase in property competitivenessJI・Decline in property competitiveness・Manpower outflow due to declining
work conditions

・Drop in tenant sales & increase inproperty damages due to physicalimpact of climate change・Decline in assessment by tenants &investors

Ensuring of health and well-being of andconvenience for people (tenants)

K

Diversity, Equity, and Inclusion

K

Outflow of talentK・Outflow of talent・Emergence of risks with decline incompliance awarenessand IIF websites

for more information on Level of Importance ★★ and ★.

Discussion and Approval of Validity. To confirm validity, the Company underwent a review by
a third party organization, as necessary.

Please refer to the KJRM

and JMF

I

Risk

J

Employee cultivation

J

12
Materiality and KPIs
J
I

●Biodiversity in areas surrounding ourbuildings●Human rights●Diversity, equity, and inclusion●Compliance●Supply chain management

Response to sustainability certifications

The Company established an order of priority for the issues by taking into account their levelof importance to the Company, each fund under the management, and external organizations.

Committee Deliberation

SocialMateriality

Through the meetings of the Sustainability Committee, the Company has
examined its vision and targets for sustainability and carried out efforts toward
their realization. As the level of interest toward sustainability is rising, theCompany has further clarified the responses to be taken by identifying andvisualizing related to sustainability materiality through dialogue with global
stakeholders and collaborative efforts with other organizations. These issues
were identified based on the Company's Corporate Philosophy and Sustainability
Policy but also incorporate the ideas of the SDGs.

Continuous Risk
Management

Environment

Cost reduction with efficient energy use

・Improved sustainability assessment byassessment bodies and investors
・Improvement in employee satisfaction
and tenant assessment & satisfaction
・IAchievement of work-life balance andsupport for continued employment
・IRecruitment of talent・Development & recruitment ofcompetitive human resources
・Assurance of customer trust throughimproved compliance awareness

Closely
related SDGs

Top Commitment

Key Issues and Initiatives

Materiality and KPIs
J

Level of Importance
Most importantmateriality

Response tosustainability
certifications

Response to climatechangeEnergy efficiency

Building resilience

Ensuring of health andwell-being of andconvenience for people(tenants)

Diversity, Equity,and Inclusion

Employee cultivation

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Data
Materiality

J

13
Materiality and KPIs
J
I★★★
TargetKPI

Target for FY2023

Progress in FY2023

Targets for FY2024

Reported Location

Improve sustainability activities
through participation in external
evaluation organizations such asGRESBGRESB Acquiring five Star

Maintain five Star

Acquired five stars

Achieved

Maintain five stars

CDP: Acquiring more than “A- (Leadership)”

CDP: Acquiring more than A- (Leadership)

Acquired A- (Leadership)

Achieved

CDP: Acquiring more than A- (Leadership)

P.8

Improving proportion ofenvironmental certifications

Acquiring certifications for 75% or more of
the total portfolio (Total floor area basis)

Acquiring certifications for 75% or more of
the total portfolio (Total floor area basis)

Percentage of properties with environmental
certifications as of February, 2024: 79.2%

Achieved

Acquiring certifications for 75% or more of the total
portfolio (Total floor area basis)

P.22

Reduction of 4.2% per year compared to 2020
Target:Scope 1&2

P.18

Achieved

Percentage of renewable energy: 1７%

P.21

Achieved- Preparing emergency supplies at 100% of theproperties where such supplies can be kept
- Developing an emergency communication networkthat covers 100% of properties- Collecting engineering reports (ERs) regularly for 100%of properties

Reduce total emissions by 42% compared to2020
Target: Scope 1&2(Target year: 2030)

Reduction in GHG emission

Introduction of renewable energy use

Implementing disaster prevention
measures

Improvement in tenant employee
space

Renewable energy ratio of electricity used inbusiness activities to 50%(Target year: 2030)- Preparing emergency supplies at 100% of
the properties where such supplies can be
kept- Developing an emergency communication
network that covers 100% of properties- Collecting engineering reports (ERs)regularly for 100% of properties

Improving communication space andrefresh space at the time of renewal

4.2% reduced from the previous year
Target: Scope 1 & 2
Percentage of renewable energy: 14%- Reduce total emissions by 22% compared to2020- Continued consideration of installation of solar
power generation facilities- Stable renewable energy secured throughadoption of an RE100 menu
- Renewable energy ratio in FY2022: 15.7%- Preparing emergency supplies at 100% of
the properties where such supplies can be
kept- Developing an emergency communication
network that covers 100% of properties- Collecting engineering reports (ERs)regularly for 100% of properties- Preparing emergency supplies: 100%
- Developing an emergency communication
network: 100%
- Collecting regular engineering reports: 100%

Implement measures focused on tenant
health and comfort

Common areas renovated and entrances repaired

Visualization of health and comfort
KJRM Implementation of employee
satisfaction survey

Survey conducted annually

Conduct employee satisfaction surveys

Achieved

Conduct employee satisfaction surveys

KJRM Development of working
environments where employees canfulfill their potential and achieve awork-life balance

Implemented- Target: all employees- Response rate: 96.7%

Achievement of a 50% utilization rate ofparental leave by male employees (at least
one employee taking parental leave)

Achievement of a 50% utilization rate ofparental leave by male employees (at least
one employee taking parental leave)

83.3% as of December 31, 2023
* April 2022- December 2023

Achieved

Achievement of a 50% utilization rate of parental leaveby male employees (at least one employee taking
parental leave)

Raise the percentage of female employees inmanagement roles to 20% (target year:
2027)

Raise the percentage of female employees inmanagement roles to 20% (target year:2027)

15.2% as of December 31, 2023

100%
Training conducted annually

100% participation rate

100% participation rate

active participation in the workplace
to continue fostering groundbreaking
innovation
KJRM Employee participation incompliance training

Please refer to the JMF websites

and the KJRM websites

for more information on Level of Importance ★★ and ★.

P.22

P.8

P.32

Implement measures focused on tenant health andcomfortConsidering acquisition of wellness
certification

KJRM Further promotion of women’s

P.8

Raise the percentage of female employees inmanagement roles to 20% (target year: 2027)
Achieved

100% participation rate

P.31

P.29

P.41

Top Commitment

Key Issues and Initiatives

Materiality and KPIs
Level of Importance
Most importantmateriality

Response tosustainability
certifications

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Data
Materiality

TargetImproving proportion ofenvironmental certifications

Improving sustainability activities
through participation in GRESB andother external evaluation institutions

KPI

Target for FY2023

Progress in FY2023- Acquiring certifications for 70% or more of
Logistics facilities (Target year: 2025)- Acquiring certifications for 60% or more of
the total portfolio- Five properties newly acquire and threeproperties re-acquire Certification for
CASBEE for Real Estate-F our properties newly acquire BELS
certification-C onsider acquisition of other environmental
certifications-F our properties newly acquired and threeproperties re-acquired Certification for CASBEE
for Real Estate-F our properties newly acquired BELS certification-T wo properties newly acquired ResReal
certification

GRESB Acquiring five Star

Maintain five Star

Acquired four stars

CDP Acquiring “Leadership” level

CDP: Acquiring more than A- (Leadership)

Acquired A (Leadership)- I ncorporation of energy-saving effects fromLEDs
- I ncorporation of energy saving effects by
renewal of air-conditioning-R eduction of environmental impact bypurchasing green electricity

Targets for FY2024

Partially
Achieved- Five properties re-acquire Certification for CASBEE forReal Estate-O ne property newly acquire BREEAM-S witches to LEDs implemented at all planned
properties, and executed green lease agreements withthe tenants-A ll planned air conditioning upgrades implemented,
and an additional upgrade ordered for one property- Green electricity purchased at one property- Incorporation of energy-saving effects from LEDs
- Conversion of electricity to clean energy by installing
solar panels- Reduction of environmental impact by purchasing
green electricity

P.20

Reduction of environmental impact through thepurchase of green electricity

Introduction of renewable energy

Reduction of environmental impact throughthe purchase of green electricity

Green electricity purchased at one property

Building resilience

Implementing disaster prevention
measures

Completion of construction of emergency
call tree

Completion of construction of emergency
call tree

Completion of construction of emergency
call tree

Achieved

Completion of construction of emergency call tree

Ensuring of health andwell-being of andconvenience for people(tenants)

KJRM Implementation of employee
satisfaction survey

Survey conducted annually

Conduct employee satisfaction surveys

Implemented- Target: all employees- Response rate: 96.7%

Achieved

Conduct employee satisfaction surveys

KJRM Development of working
environments where employees canfulfill their potential and achieve awork-life balance

Achievement of a 50% utilization rate ofparental leave by male employees (at least
one employee taking parental leave)

Achievement of a 50% utilization rate ofparental leave by male employees (at least
one employee taking parental leave)

83.3% as of December 31, 2023
* April 2022- December 2023

Achieved

Achievement of a 50% utilization rate of parental leaveby male employees (at least one employee taking
parental leave)

Raise the percentage of female employees inmanagement roles to 20% (target year:
2027)

Raise the percentage of female employees inmanagement roles to 20% (target year:2027)

15.2% as of December 31, 2023

100% Training conducted annually

100% participation rate

100% participation rate

Employee cultivation

KJRM Employee participation incompliance training* Calculated based on the total floor space (after considerations for occupancy rate)
Please refer to the IIF websites

and the KJRM websites

for more information on Level of Importance ★★ and ★.

P.25

P.9

Switching to electricity procured fromrenewable energy in IIF’s directly managed
properties (Target year:2030)

active participation in the workplace
to continue fostering groundbreaking
innovation

P.9

CDP: Acquiring more than A- (Leadership)

Achieved

Reduction in energy consumption per unit*
by 30% compared with 2015(Target year:
2030)

KJRM Further promotion of women’s

Reported Location

Acquiring five Star

Improvement in energy consumption

Diversity, Equity,and Inclusion

Materiality and KPIs
J
I

★★★

Reduce total emissions by 42% compared to2021
Target: Scope 1&2(Target year: 2030)

Energy efficiency

14

I

Reduction in GHG emission

Response to climatechange

I

P.20

P.24

P.9

P.34

P.31

P.29

Raise the percentage of female employees inmanagement roles to 20% (target year: 2027)
Achieved

100% participation rate

P.41

Environmental Charter

At KJR Management, we consider the Earth itself to be our most important stakeholder and are continually working towards the realization of asustainable society through our business activities.
Toward Net Zero

Environment

Sustainability
Biodiversity
Pollution Prevention
Communication
ComplianceJ

I

Climate Change and Resilience 

16 16

Environmental Approvals and Evaluations for Assets 

22 25

Energy / Water / Waste / Biodiversity Green Bond 

Pollution Prevention 

21 24

23
26 26

We consider a healthy global environment to be essential for the continuation of our business activities, and by implementing
new efficiency measures and technologies, engaging in dialogue with stakeholders, and other efforts, we will help achieve net
zero while reducing greenhouse gas emissions and taking on climate change via both mitigation and adaptation.
We will promote the sustainable use of natural resources.
We recognize the critical importance of what ecosystems can provide and are committed to protecting
ecosystems and mitigating any potential impacts on biodiversity.

We will strive to create and enhance environmental benefits by undertaking conservation activities andreducing our environmental footprint.

We will continue to actively engage and work with our various stakeholders and disclose information on theenvironmental impacts of our business operations in an appropriate and timely manner.

We will conduct all of our activities in compliance with environmental laws while adhering to internationalrules and social standards.

Environment

Climate Change and Resilience
J

Recognition Regarding Climate Change

Top Commitment

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

SocialGovernance

Environmental Approvals and Evaluations for Assets
J
I

Data

Green Bonds
J

J

16

I

Pollution Prevention

I

The Company recognizes that climate change is an important environmental issue that significantly impacts our business activities. Global warming is becoming more severe
with increasing economic activities, and various researches have made clear that this leads to abnormal weather such as torrential rains, floods, and droughts.
Our mission is “creating, through real estate investment management, new demand in our society and new value that exceeds people’s expectations.” To achieve our mission,
it is necessary to create a sustainable society, and we recognize that the shift to a low-carbon society is a social responsibility required from long-term management.
The Company expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in August 2019 and has been advancing initiatives
based on the recommendations.
* From 2024, the International Sustainability Standards Board (ISSB) of the IFRS Foundation will take over the monitoring of the progress of companies’ climate-related disclosures from the TCFD.

Information Disclosure Based on TCFD Recommendations
1.Governance

System of Supervision by the Board of Directors of the Company / each investment corporations

The matters resolved by and reported to the Sustainability Committee chaired by the Chief Sustainability Officer (CSO) areoverseen and supervised by being reported as needed to the Board of Directors, which meets at least once every threemonths and is chaired by the President of the Company, as well as the Board of Directors of each investment corporation,
which meets twice a month.

The Sustainability Committee

The Sustainability Committee, which held once a quarter in principle, identifies material risks and opportunities related tosustainability including climate change, and plays a central role in sustainability activities by resolving policies, strategies,
systems, and sustainability goals and monitoring performance.
Please refer to the page 11 for further details.

2.Risk Management

Organizational Process of Identifying and Evaluating Climate Change Risks

With regard to climate change-related risks and opportunities for each investment corporation, led by the sustainability
staff of each division, we first examine their impact on our portfolio and the possibility of their occurrence, and thenidentify the risks and opportunities closely related to each investment corporation and examine their impact. The
identified risks, opportunities and their degree of impact are reported to and discussed at the Sustainability Committee
and the identification and evaluations of risks and opportunities are confirmed.

Process of Managing Risks of Climate Change and Organizational Initiatives

The Company led by the person in charge of sustainability issues, holds meetings (hereinafter referred to as"subcommittees") as necessary to discuss and examine in detail sustainability-related issues and promotion methods at
the working level, either within the division or in cooperation with other divisions. Through the subcommittees, individual
Please refer to JMF’s Strategy and Indexes and Goals on pages 17 and 18.

Please refer to IIF’s Strategy and Indexes and Goals on pages 19 and 20.

issues are discussed, and information is shared to raise awareness and understanding of the issues among those in charge,
and to integrate sustainability considerations into the daily investment and management process.
Matters considered by the subcommittees are reported to the Sustainability Committee on the basis of submissions from thedivisions, and the Sustainability Committee reviews progress in addressing the assessed risks and opportunities.
Moreover, each investment corporation collects and monitors monthly environmental data for properties. To work on
initiatives for environmental matters, including metrics and targets and efforts to address climate change, and collectenvironmental data, we have established an environmental management system and strive to continually strengthen andimprove our initiatives by implementing a PDCA cycle.

Integration into Overall Risk Management

The Company operates the Risk Management Committee, in which senior management personnel serve as members. The
Committee grasps and investigates matters related to major risks and formulates countermeasures and management
policies. It checks the risks affecting business operations, including climate change, at each division once every two months
using a Risk Control Matrix (RCM), and reports to the committee for evaluation and management.
Board of Directors
Oversight and supervision

ReportChair: President & CEO

Oversight and supervision

Sustainability Committee Chairman: Chief Sustainability Officer
ReportPersonnel in charge at each division and subcommittee
Identification of risks
and opportunities
regarding sustainability

Evaluation of risks andopportunities regarding
sustainability

Consideration of
measures

Monitoring

Grasping of results

Implementation of
measuresPresident & CEO

ReportChief Officer for Risk Management
Putting together opinions

Risk Management Committee Chairman: Head of Compliance & Risk Management Office
Risk Management Officer
Understanding of external
and internal environments

ReportHead of each Division and Officer

Consideration of risk
scenarios and measures

Risk evaluation

Environment

Climate Change and Resilience

Top Commitment

J

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

SocialEnvironmental Approvals and Evaluations for Assets
J
I

Governance

J

Data

Green Bonds
J

17

Pollution Prevention

3.Strategy

Financial impact study and response measures

JMF assesses the financial impact on the entire portfolio based on climate change-related scenarios, with 2030 as the medium term and 2050 as the long term. Based on the assessment results, JMF's efforts and measures to respond to potential risks
and opportunities are as described below. For our examination of the world views surrounding JMF based on the 4°C and 1.5°C climate change-related scenarios, please refer to our website.
Financial impact
Classification

Risk / Opportunity Items

Technology

Transition Risks / Opportunitie

Policy and Regulations

Increase in legal
compliance costs

Diffusion of low-carbon /energy-saving
technologies

Change in cash flow (qualitative expression)

Risk

4°C scenario

Opportunity

1.5°C scenario

Medium term 2030

Long term 2050

Medium term 2030

Long term 2050

Increase in CO2 emissions costs due to introduction of CO2 emissions regulations and carbon tax

Small

Small

MiddleLarge

Increase in cost of acquiring environmental certifications/energy conservation ratings

Small

Small

Small

MiddleImproved competitiveness of properties by complying with laws and regulations

Small

Small

MiddleLarge

Increase in various costs for ZEB conversion

Small

Small

MiddleMiddleIncreased costs associated with retrofitting low-carbon and energy-efficient facilities

Small

Small

Small

MiddleReduction of utility costs through ZEB and energy-saving construction

Small

Small

MiddleLarge

Increase in building management outsourcing costs due to increase in PM and BM companies' work to comply with laws and regulations

Small

Small

Small

Small

MarketReputation
Acute
Chronic

Physical Risks / Opportunities

Increased social importanceregarding the environmental
performance of buildings

Decreased rental income due to decreased needs and occupancy rates for properties with low environmental performance (e.g., not certified, not energy efficient, etc.)
Increase in appraised value and average rent for properties with high environmental performance
Lower financing costs through green finance

Small
Small
Small

Small
Small
Small

MiddleMiddleMiddleMiddleMiddleMiddleIncreased importance oftransition risk

Increased cost of financing from investors and financial institutions due to the assessment of high transition risk

Small

Small

Small

MiddleImproved reputation for transition risk response will improve the brand value of owned properties in response to climate change and increase rental income through improved use by tenants and facility users
Increase in repair costs, proactive measures and property insurance premiums due to flooding of owned properties
Decrease in property values of properties at high risk of flooding

Small
Small
Small

Small
Large
Middle

Small
Small
Small

MiddleSmall
Small

Increased air conditioning operation, maintenance and repair costs due to increased demand for cooling
Increase in utilities costs due to higher energy use
Decrease in property values of properties at high risk of flooding
Repair costs and loss of business opportunities due to flooding of owned properties

Small
Small
Small
Small

Small
Small
Small
Small

Small
Small
Small
Small

Increasing number of companies
going carbon neutral

Increase in typhoons,
torrential rain,
flooding and inundation
Progression of averagetemperature increase

Progressive sea level rise

Increase in renewable energy installation and response costs

Decrease in rent from tenants and percentage rent from commercial facilities due to loss of business opportunities due to flooding of owned properties
Increased work by PM and BM companies related to BCP, such as evacuation drills and disaster prevention stockpiling, and also increased building management outsourcing costs
Gaining market competitiveness by increasing the number of tenants who appreciate BCPs for climate change and the comfort and safety of real estate* Referenced climate change-related scenarios
Transition Risk……Sources IEA (International Energy Agency) Wo rld Energy Outlook 2021, 4°C scenario : IEA STEPS, 1.5°C scenar io : IEA NZE2050
Physical Risk…Sources IPCC (Intergovernmental Panel on C limate Change) Sixth Report, 4°C scenario : IPCC SSP5-8.5, 1.5 °C scenario : IPCC SSP1-1.9

Small

Small
Small
Small

Small

MiddleSmall
MiddleMiddleMiddleMiddleMiddleMiddle

Small
Small
Small

Middle

Small
Small
Small

JMF’s efforts and measures
Aim for net-zero absolute GHG emissions throughout the entire value chain by 2050
Reduce absolute Scope 1+2 emissions by 42% by 2030 (compared with 2020)

Introduction of renewable energy-derived electricity in directly managed properties
Promotion of switching to renewable energy-derived electricity for tenants of indirectly managed properties
Reduction of total emissions from strategic replacement of large suburban properties with smaller urban properties
Target 75% environmental certification acquisition rate for the entire portfolio
Planned acquisition of environmental certifications/energy conservation ratings

Conduct ESG training for PM and BM companies, including climate change response

Installation of renewable energy-derived electricity and solar panels at directly managed properties
Energy consumption management by proprietary EMS
Planned acquisition of environmental certifications/energy conservation ratings
Consideration of acquiring new properties that have already been converted to ZEB
Study of planned ZEB conversion of existing properties

Conduct energy efficiency and conservation audits by outside specialists.
Energy saving in lighting, air conditioning, etc. through systematic facility renovation
Implement systematic introduction of energy-saving equipment
Installation of solar panels using the PPA method

Regularly obtain environmental certifications to maintain and improve environmental performance
Set KPI for percentage of environmental certifications obtained
Continued issuance of green bonds

The bidding system will allow for the introduction of renewable energy sources under cost-effective conditions
The PPA method, which does not incur any cost, is used to install solar panels to generate renewable energy
Disclosure of sustainability-related initiatives through the sustainability website
Disclosure of Environmental Performance Information
Active participation in various sustainability assessments

Actively inform tenants and facility users about sustainability

Flooding risk assessment in the DD process
Periodically check hazard maps of owned properties to identify flooding risks

Emergency communication network is 100% in place to quickly respond to confirm the status of disaster damage and to restore operations
Conduct evacuation drills and other BCP measures on a regular basis
Conduct disaster risk surveys through non-life insurance companies

Renewal of energy-saving equipment such as LED lighting and energy-efficient air-conditioning equipment
Introduction of renewable energy sources such as solar power generation
Flooding risk assessment in the DD process
Construction and equipment upgrades to enhance resilience performance

Environment

Top Commitment

Climate Change and Resilience

Basic Information

Climate Change and ResilienceJ
I

J

４．Indexes and Goals

・Reduce absolute Scope 1+2 emissions by 42% by 2030 (compared with 2020)

FY2022

29,884

24,63322,061

5,608

5,135

5,542

Purchased goods and services

16,998

17,11016,975

Category 3

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

6,716

6,467

6,334

13,017

14,47814,3743

1

1Category 2

Category 5

Category 6

Category 7

Capital goods

Waste generated in operations
Business travel

Employee commuting

Category 12 End of life treatment of sold products

Category 15 Investments

Total※Compared to FY2021

1

023,9940028,75700165,531

152,527

139,855

232,446

214,579

206,297

267,938

244,347

233,899002030
Scope 3 total emissions
calculate and reduce※

02050
Net-zero

SBTi Certification

Environmental Approvals and Evaluations for Assets
J
I

J

Data

Green Bonds
J

18

Pollution Prevention

+37%

△6%

△73%

Increase in emissions
due to external growth

Reduction inElectricity Consumption

Procurement of
renewable energy derived●New acquisitions anddispositions due to asset
replacement●Switch to LED lighting
equipment in common
areas●Switch to electricity derived
from renewable energy(including maintenance ofexisting contracts)*Aim for a 50% renewableenergy ratio in 2030
●Procurement of renewableenergy through on-site
power generation●Utilization of non-fossil
certificates●New acquisitions at
historical annual pace

●Replacement withenergy-efficient
air-conditioning equipment●Implementation of
eco-tuning to improveenergy efficiency

SBTi Certification
2030
Reduce absolute Scope 1+2 emissions
Scope2 (Market Based) by 42%*

Initiatives

Category 13 Downstream leased assets

30,182Governance

+35%

△11%

SBTi Certified

Reduced by 42％

2020

2030

SBTi Certified△100%

Scope1,
Scope2,
Scope3Category 1

Target

GHG Emissions
Reduction Breakdown

Scope３

FY2021

Initiatives

Scope２（Market Based）

FY20202020

SBTi Certification（t-CO2）SocialGHG Emissions Reduction Toward 2030 Mid-Term Target (Scope1+2), 2050 longterm target (Scope1+2+3)

SBTi Certification

・Aim for net-zero absolute GHG emissions throughout the entire value chain by 2050

Environment

Scope1,
Scope2

New Targets

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

GHG Emissions
Reduction Breakdown

To demonstrate its commitment to further GHG reductions, JMF has changed its medium-term GHG
reduction target by 2030 from a conventional per unit target to a 42% reduction in Scope 1 and Scope
2 emissions on a total amount basis.
This newly established GHG emissions reduction target has been certified as ascience-based target by the Science Based Targets initiative (SBTi), an international
initiative.

Scope１

Sustainability Strategy

Reduced by 100％△24%

Increase in emissions
due to external growth

Reduction in
Procurement ofReduction of emissions
Electricity Consumption renewable energy derived in tenants' private areas●New acquisitions
and dispositions due
to asset replacement●Switch to LED lighting
equipment in common
areas●New acquisitions at
historical annualpace●Replacement withenergy-efficientairconditioning
equipment●Implementation of
eco-tuning to improveenergy efficiency●Switch to electricity
derived from renewableenergy (including
maintenance of existing
contracts)*Aim for a 100% renewableenergy ratio in 2050
●Procurement of renewableenergy through on-site
power generation●Utilization of non-fossil
certificates●Reduction of emissions
through introductionof renewable energy inmaster lease tenants,etc.
*Reflects assumed
reductions for master
lease tenants that havedisclosed emission
reduction plans●Actively promote green
leases, etc.

2050

Environment

Climate Change and Resilience

Top Commitment

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

SocialEnvironmental Approvals and Evaluations for Assets
J
I

Governance

Data

Green Bonds
J

19

I

Pollution Prevention

3.Strategy

I

Financial impact study and response measures

IIF assesses the financial impact on the entire portfolio based on climate-change related scenarios, with 2030 as the medium term and 2050 as the long term. Based on the assessment results, IIF's efforts and measures to respond to potential
risks and opportunities are as described below. For our examination of the world views surrounding IIF based on the 4°C and 1.5°C climate change-related scenarios, please refer to our website.
Financial impact
Classification

Risk / Opportunity Items

Change in cash flow (qualitative expression)

Policy andRegulations

Increase in CO2 emissions costs due to introduction of CO2 emissions regulations and carbon tax
Increase in legal compliance costs

Technology
Market & Reputation

Transition Risks / Opportunities

Diffusion of low-carbon /energy-saving technologies
Soaring renovation / equipment costs

Changes in market participants' awareness andperception towards climate change response
Changes in tenants’ needs
for environmental performance

Risk
Opportunity

4°C scenario
1.5°C scenario
Medium term 2030 Long term 2050 Medium term 2030 Long term 2050
Small

Small

Small

MiddleIncrease in costs of acquiring environmental certifications/energy conservation ratings

Small

Small

Small

MiddleImprovement of properties’ competitiveness through complying with laws and regulations

Small

Small

MiddleLarge

Increase in retrofit costs associated with the introduction of energy-saving equipment and renewable energy and thepromotion of carbon neutrality of real estate

Small

Small

MiddleMiddle

Small

Small

Small

MiddleIncrease in costs to rebuild or update facilities on introduction of new technology to meet future environmental needs

Small

Small

MiddleLarge

Increase in costs to acquire ZEB properties, to convert existing properties to ZEB, and to research new technologies
for introduction, etc.

Reduction of utility costs through ZEB and energy-saving construction

Small

Small

Middle
Small

Large

Increase in financing costs due to assessed high transition risk

Small

Small

Increase in costs due to renewable energy installation

Small

Small

MiddleMiddleIncrease in asset value through improvementof greening performance

Increase in financing costs from investors and financial institutions due to inability to obtain environmental
certifications and evaluations from global evaluation agencies

Small

Small

MiddleMiddleIncreases in number of companies goingcarbon neutral

Small

Small

MiddleLarge

Decrease in occupancy rates of buildings due to lack of energy creation and energy conservation function

Small

Small

Small

MiddleDecrease in rent premiums due to brand value decline of building types with no environmental certification programs

Small

Small

Small

MiddleLoss of business opportunities due to flooding of owned properties

Small

Middle

Small

Small

Further improvement of market competitiveness through highly resilient portfolio

Small

Middle

Small

Small

Increase in maintenance and repair costs for air conditioning and utility costs due to increasing cooling demand

Small

Middle

Small

Small

Increase in repair costs and property insurance premiums for countermeasures against sea level rise, etc.

Small

Middle

Small

Small

Changes in social value
for environmental performance

Increases in value
for environmental performance

Decrease in brand value due tounderdevelopment of green buildings

Acute
Chronic

Physical Risks / Opportunities

Increase in typhoons, torrential rain, storm
surges, floods, and inundation

Progressive rise in average temperatures
Progressive rise in sea level

Decrease in lease revenue due to relative decline in environmental performance of owned properties and decrease inincome due to stranded assets

Lower financing costs through green financeDecrease in property value and average rent due to lack of progress in acquiring environmental certifications such as
ZEB and DBJ Green Building certification

Increase in costs for repair, proactive measures and insurance premiums due to flooding of owned properties

Decrease in property values with high flooding risk

* Referenced climate change-related scenarios
Transition Risk……Sources IEA (International Energy Agency) Wor ld Energy Outlook 2021, 4°C scenario : IEA STEPS, 1.5°C scenari o : IEA NZE2050
Physical Risk…Sources IPCC (Intergovernmental Panel on C limate Change) Sixth Report, 4°C scenario : IPCC SSP5-8.5, 1.5 °C scenario : IPCC SSP1-1.9

Small

Small

Small

Small

Small

Small

MiddleMiddleMiddleMiddle

Small

Small

MiddleMiddleMiddle

Small

Small

IIF’s efforts and measures
・42% Reduction in absolute Scope 1+2 emissions by 2030 (compared with 2021)
・Aim for net-zero absolute GHG emissions throughout the entire value chain by 2050
・Introduction of renewable energy-derived electricity in properties under direct electricity management

・Planned acquisition of environmental certifications/energy conservation ratings
・Target to obtain environmental certifications : 60% of the entire portfolio (target year: by 2030)
・Target to obtain environmental certifications for logistics facilities : No less than 70% (target year: by 2025)
・Energy consumption management through proprietary EMS・Introduction of renewable energy-derived electricity at properties under direct electricity management
・Consideration of acquiring new properties that have already been converted to ZEB・Study on possibility of ZEB conversion at property acquisition stage
・Study on planned ZEB conversion of existing properties

・Energy saving in lighting, air conditioning, etc. through systematic facility renovation
・Conclusion of memorandum (green lease) with tenants to share the effect of reduced utility costs on
installation of energy-saving equipment such as LED lighting, etc.
・Reduction of utility costs through planned energy-saving construction

・Implementation of planned development projects
・Energy saving in lighting, air conditioning, etc. through planned facility renovation
・Planned reduction of portfolio energy intensity on per-unit basis

・Improvement of portfolio competitiveness through introducing sustainability assessments, including measures forclimate change, into DD of property acquisitions, and through acquiring properties with high environmental performance・Introduction of renewable energy-derived electricity at properties under direct electricity management(approximately 94% switchover completed based on electricity consumption)
・Utilization target for green finance in the future

・Disclosure of sustainability-related initiatives, including climate change initiatives, through the sustainability website
・Disclosure of environmental performance information
・Active participation in various sustainability assessments (GRESB, CDP, MSCI, etc.)

・Improvement of portfolio competitiveness through introducing sustainability assessments, including climate change
responses, into DD of property acquisitions, and through acquiring properties with high environmental performance・Installation of solar panels on the roofs of properties
・Survey of existing tenants to research tenant needs for introduction of renewable energy and future needs
・Introduction of renewable energy-derived electricity at properties under direct electricity management
・Planned acquisition of environmental certifications/energy conservation ratings
・Lobbying for expansion of environmental certification systems
・Assessment of flooding risk in the DD process
・Periodical check of hazard maps for owned properties to examine flooding risk

・Establishment of full emergency communication network to respond promptly to confirm the status ofdamage from disasters and take recovery measures
・Validation of damage prediction by inundation risk assessment
・Construction and equipment upgrades to enhance resilience performance・Target for obtaining resilience certification
・Establishment of full emergency communication network to respond promptly to confirm the status ofdamage from disasters and take recovery measures

・Introduction of high-efficiency air conditioning (implemented as one of the energy conservation measures)
・Introduction of renewable energy sources such as solar power generation
・Adoption of building design anticipating the use of natural energy
・Validation of damage prediction by inundation risk assessment
・Area diversification of portfolio assets
・Implementation of construction and facility upgrades to enhance resilience performance

Environment

Climate Change and Resilience

Top Commitment

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

SocialEnvironment

Governance

Environmental Approvals and Evaluations for Assets
J
I

Data

Green Bonds
J

Pollution Prevention

I

４．Indexes and Goals

To demonstrate its commitment to further GHG reductions, IIF has changed its medium-term GHG
reduction target by 2030 from a conventional per unit target to a 42% reduction in Scope 1 and Scope
2 emissions on a total amount basis.
This newly established GHG emissions reduction target for medium term has beencertified as a science-based target by the Science Based Targets initiative (SBTi),an international initiative.
New Targets

・Reduce absolute Scope 1+2 emissions by 42% by 2030 (compared with 2021)

SBTi Certification

Total
Scope 1+2
emissions・Aim for net-zero absolute GHG emissions throughout the entire value chain by 2050
（t-CO2）

Scope１

Scope２（Market Based）

Scope３Purchased goods and services

Category 3

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

Category 5
Category 6
Category 7

Capital goods

Waste generated in operations

Business travel

Employee commuting

Category 12 End of life treatment of sold products

Category 13 Downstream leased assets
Category 15 Investments
Total※Compared to FY2021

FY2022

16,28229

25,758Category 1

Category 2

FY2021

6,707

25,733

7,349

13,327

17,30727,392

46,241

14,43913,194

1

1

1

0

1

137

78,80272,655

140,724

156,937

182,764

182,69956

2021

Target（Current）

Achieve 39% reduction
in total Scope 1+2
emissions by introducing RE100
to IIF Shonan Health Innovation Park
Switch to RE100
IIF Shonan HealthInnovation Park

SBTi Certification
2030
Reduce absolute Scope 1+2
emissions by 42%※2030
Scope 3 total emissions
calculate and reduce※

2022（Base year）

2050
Net-zeroMedium-termtargetReduce absolute
Scope 1+2
emissions by 42%
by 2030

Total
Scope 3emissionsSwitch to RE100
IIF Osaka Toyonaka
Data Center

54

Reduce by approx. 3%
more to achieve
the medium-term target

2030

Implement additional GHG reduction measures
such as switching to LEDs,
upgrading to high-eﬃciency air conditioning,
and RE100 measures(including introduction by encouraging tenants)
in Scope 3 as well to promote net zero by 2050

20

I

2050

Long-term
targetAim fortotal net zero
emissions acrossthe entire
value chain

Environment

Basic Information

Top Commitment

Energy / Water / Waste / Biodiversity
J

Climate Change and Resilience
J
I

EnergyKey Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

Environmental Approvals and Evaluations for Assets
J
I

SocialGovernance

J

Data

Green Bonds
J

21

Pollution Prevention

W a te r

TargetImprovement inenergy consumption
TargetIntroduction ofrenewable energy

KPI

Reduction in electric consumption
per unit by 20% compared with 2015
(Target year: 2030)
KPI

Renewable energy ratio ofelectricity used in business activities
to 20%(Target year: 2030)

Progress

19.6%
Decreased byapprox.

See Data for details

Progress

15.7％

approx.

See Data for details

Progress in FY2022- Switched to green electricity.

- Solar panels installed at Oyama Yuen Harvest Walk. The Power
Purchase Agreement (PPA) scheme started in March 2022,

Results by Oyama Yuen Harvest Walk

Oyama Yuen Harvest Walk

Amount of solar power generation purchased (year)

833MWhTargetImproved efficiency
Reduced cost

Reduction of water consumption
Reduction of cleaning time
Reduction in daily cleaning costs

KPI

Implementing comprehensive waste management (waste amount, waste treatment
operators, final treatment sites) at 100% of directly managed properties by 2023

376t-COGYRE* Excluding general waste

Reduction in GHG emissions (year)2

To advance initiatives that can promote GHG emissions reductions, we are planning to continue promoting the
introduction of green leases and enhancing proposals to master lease tenants to switch to renewable energy.

B i o d i v e rsi ty
JMF recognizes the critical importance of what ecosystems can provide, andwe are committed to protecting ecosystems and mitigating any potential
impacts on biodiversity. In addition, to provide peace of mind to ourcustomers, we are actively adding greenery to our facilities and creating
parks and other communal spaces.
Please refer to the JMF website

Executed green leaseagreement witha tenant* Compared to the quantity used for cleaning the equivalent are a by existing cleaners

In an effort to visualize the industrial waste generated in the building andimprove the recycling rate, GYRE subdivided waste separation items andintroduced measuring instruments in July 2023 with the cooperation of all
its tenants. As a result of visualization of the in-building recycling rate, therecycling rates of industrial waste* in September 2023 were 100.0% forcommon areas and 94.1% for exclusive areas.

31, 2023, resulting in an introduction rate of 15.7%.

- Results by Oyama Yuen Harvest Walk

W a steEnvironmental consideration

Subdivision of waste separation rules and visualizationof in-building recycling rates through installation of
measuring instruments- Switched to renewable energy at 25 properties as of August

contributing to a significant reduction in electricity costs.

Abiko Shopping Plaza and
KAMISHIN PLAZA introduced
cleaning robots. This
introduction is expected toreduce water use andcleaning costs.

Reduction in waste

We have achieved a 7.3% reduction from the February
2022 levels in total emissions for Scopes 1+2 as ofFebruary 2023 as a result of the following efforts.

Achievements

Sustainability Strategy

for other initiatives

Twin 21

Environment

Top Commitment

Environmental Approvals and Evaluations for Assets

Basic Information

Climate Change and ResilienceJ
I

J

Environmental Certification
TargetImproving proportion ofenvironmental certification

KPI

Progress

79.2％

Acquiring certifications for 75% or more of
the total portfolio*1 (Total floor area basis)

February 2024

38

S

： 25 propertiesB+：

DBJ Green Building
Certification

5 stars ：properties

2 stars ：properties

23

BELS Certification

6

properties

7

propertiesA： 10 properties
3 properties

1 property

4 stars ： 8 properties

3 stars ： 10 properties
1 property

1 star ： 3 properties

4 stars ：1 property

3 stars ： 2 properties
2 stars ： 3 properties

A４：

1 property

A２：

2 properties

A３
A１

：
：

1 property

3 properties

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Applications

Certification for
CASBEE for Real EstateTokyo LowCarbon Small andMedium-Sized
Model Building

Sustainability Strategy

■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■

■Urban retailSocialGovernance

Environmental Approvals and Evaluations for Assets
J
I

Property Name

Abiko Shopping Plaza
GYRE
Bic Camera Tachikawa
AEON Itabashi SC
SEIYU Hibarigaoka
JMF-Bldg. Jiyugaoka 01 (A Bldg.)
JMF-Bldg. Jiyugaoka 01 (B Bldg.)
AEON MALL Musashi Murayama
La Porte Aoyama
Makuhari PlazaKAWASAKI Le FRONTG-Bldg. Omotesando 02
G-Bldg. Kichijoji 02
JMF-Bldg.Ginza Chuo-Dori 01
MARINE & WALK YOKOHAMA
Machinoma Omori
AEON MALL Tsudanuma
JMF-Bldg. Yokohama Bashamichi 01
JMF-Bldg. Kawasaki 01
JMF-Bldg. Shibuya 02
JMF-Bldg. Shibuya 03
JMF-Bldg. Shibuya 03
JMF-Bldg. Toyocho 01
JMF-Bldg. Nihombashi Hamacho 01
JMF-Bldg. Sasazuka 01
JMF-Bldg. Ueno 01
JMF-Bldg. Yokohama 01
JMF-Bldg. Kanda01
JMF-Bldg. Edogawabashi 01
JMF-Bldg. Akasaka 02
JMF-Residence Gakugeidaigaku
JMF-Residence Ikebukuro 1-chome
JMF-Residence Machida
Kyoto Family
Kawaramachi OPA
AEON MALL Tsurumi Ryokuchi
AEON MALL Itami
Ario Otori
AEON MALL Kobe Kita
KAMISHIN PLAZA
Twin 21
JMF-Bldg. Kitahama 01
JMF-Bldg. Osaka Fukushima 01
JMF-Bldg.Higobashi 01
JMF-Bldg. Imabashi 01
mozo wonder city
Nara Family
AEON MALL Sapporo Naebo
AEON Naha SC
Oyama Yuen Harvest Walk
AEON MALL Sapporo Hassamu
DFS T GALLERIA OKINAWA
G-Bldg. Naha-shintoshin 01
JMF-Bldg. Sendai 01
JMF-Residence Chihaya* CASBEE-wellness officeEnvironment■Suburban retail■Office

Certification for
CASBEE for Real Estate

S
S
S

Green Bonds
J

DBJ Green Building
Certification

★★★★
★★★★
★★
★
★
★★★

S

★★★

A
A

Data

BELS Certification

A3
A4

★★★★
★★★★
★★
★★
★★★

S

★★★
★★★
★★★
★★★

A
S
S
S
S
S
S
A
A
A
B+

■Mixed-use

★★★★★
★★★★
★★★★
★★★

■Hotel■Residence

A1

A2A2

A1
A1+

★★★★
★★★
★★★
★★★

S
A
S
S
S
S
S
S
A
S

Tokyo Low-Carbon Small andMedium-Sized Model Building

★★★★

★

S

22

Pollution Prevention

★★★★

S
S
S
S
S
B+
A
B+※
A
B+

J

★★★
★★

Environment

Top Commitment

Green Bonds

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

J

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

Environmental Approvals and Evaluations for Assets
J
I

SocialGovernance

Data

Green Bonds
J

J

23

Pollution Prevention

As part of its efforts to maintain sustainability for the environment and society as a whole, JMF has issued the Green Bond, the first such issuance from a J-REIT in May 2018. Green Bonds refer to bonds that are issued by business companies, funds, local
governments, and other entities in order to procure funds for green projects (environmental investments and loans). Typically, the bonds are issued according to the Green Bond Principles*1 laid down by the International Capital Market Association(ICMA). Through the issuance of the Green Bond, JMF conducts investment contributing to the implementation and realization of a sustainable environment and society.

JMF portfolio book value

Project evaluation/selection

Eligible Green Project balance sheet

With regard to the Green Bond issuance process, which is based on the Green Bond Principles, “Eligible Green
Projects” are eligible for the Green Bond.

Number of properties

29properties

One of the following ratings must have been obtained within the past two years or will be obtained in the future as

Total ﬂoor space

1,648thousand ㎡

Book value

1,147.4billion yen
128properties

Green Bond eligibility criteriaof the payment date of each bond.

（Total ﬂoor space ratio:56.6%） Number of issuances

Extracted
Eligible
Green Projects
from portfolio

7件

DBJ Green Building Certification*3

Buildings that have received 3, 4, or 5 stars

Total amount issued

Eligible Green
Projects*2

482.8 billion yen

February 2023

35 billion yen

Debts of
Eligible Green Projects

212.9 billion yen*3

Maximum of
outstanding
amount ofGreen Bond

Debts of Eligible Green Projects(212.9 billion yen)
=Eligible Green Projects(482.8 billion yen)× LTV ratio(44.1%)DBJ Green Building
Certification

288.6bn 17properties
Certification for
CASBEE for Real Estate339.7bn 18properties

Eligible green projects: Energy consumption（2022）

Electricity
Fuel
Water

233,101
80,461
1,618

MWh
MWh
thousand ㎥

CO2 emissions

102

thousand tCO2

Buildings that have received B+, A, or S rank

Second-Party Opinion

JMF has obtained a second-party opinion from Sustainalytics, an ESG rating agency, for the eligibility of Green
Bond*6 proceeds.*7

For more information on Second-Party Opinion, please click here.

*1

Eligible Green Projects

Certification for CASBEE for Real Estate

For more information on ICMA Green Bond Principles, please click here.

*2 The Eligible Green Projects are calculated by subtracting the duplication of properties that have both DBJ Green Building Certification and Certification for
CASBEE for Real Estate (145.4 billion yen, six properties)*3 September 2023

*4 Excluding land with leasehold interest*5 When converting energy consumption into CO2 emissions, we use the calculation methods and emissions factors stipulated by the Act on Promotion of

Global Warming Countermeasures.
*6 Green Bond eligibility entails a Green Bond framework that aligns with the four pillars (use of proceeds, project evaluation and selection, management ofproceeds, and reporting) of the Green Bond Principles 2018*7 The recipient of second-party opinions for Green Bonds issued after March 2024 will be changed to Japan Credit Rating Agency, Ltd.(JCR).

Environment

Top Commitment

Energy / W a t er / W a s t e / Bi odi ver si t y

Basic Information

Climate Change and ResilienceJI

Ene rgy
TargetKPIReduction in electric consumption
per unit by 30% compared with 2015
(Target year: 2030)

Introduction ofrenewable energy

Switching to electricity procured fromrenewable energy in IIF’s directly
managed properties (Target year:2030)

Progressapprox.

KPI

Sourcing of Renewable Energy in Line with RE100

IIF Shonan Health Innovation Park has environmentallyfriendly building design and is the first research facility to be
selected by the Ministry of Land, Infrastructure, Transport
and Tourism’s Model Project for Promoting GHG Reduction in
Housing and Building. In addition, the facility switched toelectricity derived from renewable resources in electricity
procurement in line with RE100 standards from August, 2021,
thus contributing to IIF’s newly established CO 2 emissions
reduction targets toward carbon neutrality by 2050.

Solar panels

Key Issues and Initiatives

Energy / Water / Waste / Biodiversity
J
I

Environment

SocialEnvironmental Approvals and Evaluations for Assets
J
I

Governance

Data

24

I

Green Bonds
J

Pollution PreventionI

W a te r

Improvement inenergy consumption
TargetSustainability Strategy

47.2%
Decreased by

See Data for details

Progress

90%

Introduction of

approx.

See Data for details

Daylighting with natural light

Rooftop greening

IIF Shonan Health Innovation Park

Ventilation

TargetReduction inwater consumption

KPI

Keeping water use per unit at thesame level as 2015(Target year: 2030)＋

Progress

21.5%

Water use per unit

While the water use per unit in from February 2022 to January 2023
increased slightly to 0.63 from 0.61 in the previous year, there was no
significant increase in any individual property.

Effectively using water resources by tapping intermediate water

The IIF Mitaka Card Center uses water resources effectively by tapping
intermediate water, which is hauled from a well through automatedpumping machine, for the premises' sprinkler systems. Intermediatewater is also used as daily water in the event of an emergency or disaster.

W a steTargetImprovement of recycling rate that properties under
IIF’s management（2022 comparison）

Recycling Rate

approx.

40.5%

We manage waste properly by means such as appropriately separating
the waste produced by the properties to improve the recycling rate andadvancing initiatives to minimize the amount of waste by monitoring
the amount of waste generated.

Solar panels are installed on the roofs of facility buildings
to save energy by using renewable sources.

B i o d i v e rsi ty

IIF Tosu Logistics Center

IIF recognizes the critical importance of what ecosystems can provide
and is committed to protecting ecosystems and mitigating any potential
impacts on biodiversity.
Please refer to the IIF website

for other initiatives.

IIF Yokosuka Technology Center

Environment

Top Commitment

Environmental Approvals and Evaluations for Assets

Basic Information

Climate Change and ResilienceJ
I

Environmental Certification
TargetImproving proportion ofenvironmental certifications

Applications

KPI

Progress

35.2％

Acquiring certifications for 60%
or more of the total portfolio※
Certification for CASBEE
for Real Estate25

properties

DBJ Green Building
Certification

S

A

B+

January 2024：

9 properties： 14 properties：

2 properties

5

BELS Certification

5 stars ： 12 properties

22

properties

3 stars ： 2 properties

IIF Koshigaya Logistics Center■■3 stars ：1 property

2 stars ： 3 properties

Percentage of the combined value of Certification for CASBEE for Real Estate and DBJ Green Building Certification

IIF Saitama Logistics Center (Office)

■
■
■

■

2

properties

IIF Saitama Logistics Center (Warehouse)

BELS Certification

S

★★★★

★★★★★

B+
A
S

IIF Nagoya Logistics CenterA

IIF Higashi-Osaka Logistics CenterAS

IIF Kashiwa Logistics Center
IIF Misato Logistics Center

IIF Hiroshima Logistics Center

S

■

■

IIF Tosu Logistics Center

IIF Kyotanabe Logistics CenterS

IIF Kazo Logistics Center (Building 1)

A

IIF Kazo Logistics Center (Building 2)★★★★★

IIF Morioka Logistics Center IIA

IIF Hyogo Tatsuno Logistics Center■

IIF Hiroshima Seifushinto Logistics CenterAS

IIF Gifu Kakamigahara Logistics CenterA

IIF Shonan Logistics CenterA

IIF Yokohama Tsuzuki Technology Center■

IIF Kawasaki Science Center■

IIF Shin-Kawasaki R&D Center■

IIF Haneda Airport Maintenance Center(Maintenance Center 2)

■

S

A

IIF Akishima Logistics Center​

■

★★★★★

★★

B+

■

■

★★★★

IIF Sendai Taiwa Logistics Center

IIF Osaka Suminoe Logistics Center I

■

★★★

★★★

★★★★★

■
■

★★★★

★★★★★

A

IIF Itabashi Logistics Center

■

★★★★

IIF Fukuoka Hakozaki Logistics Center II (Extension)

■
■

★★★★

A

IIF Fukuoka Hakozaki Logistics Center II (Existing)

IIF Atsugi Manufacturing Center

IIF Haneda Airport Maintenance Center(Maintenance Center 1)

IIF Shinagawa Data Center■Logistics facilities■Manufacturing and R&D

★★★★★
★★★★

★★★★★
★★★★★
★★★★★
★★
★★

S

ResReal★★★★★

IIF Fukuoka Hakozaki Logistics Center I

■

I

★★★★★

S

■

Pollution Prevention

★★★★★

★★★

★★★★

Silver★★★
★★

■Infrastructure facilities

25

I

★★★★

A
A

■

★★★★

A

IIF Iruma Logistics Center■

Green Bonds
J

A

IIF Kobe Logistics Center

Data

DBJ Green Building
Certification■■

Silver ： 2 properties

IIF Nishinomiya Logistics Center (Extension)■■

FloodsIIF Nishinomiya Logistics Center (Existing)

IIF Yokohama Tsuzuki Logistics Center■

Governance

Certification for CASBEE
for Real EstateA

IIF Noda Logistics Center■■

SocialEnvironment

Environmental Approvals and Evaluations for Assets
J
I

Property Name■■

4 stars ： 6 properties

Energy / Water / Waste / Biodiversity
J
I

IIF Shinonome Logistics Center■＊

Key Issues and Initiatives■■

4 stars ： 3 properties

properties＊

Sustainability Strategy

SilverEnvironment

Pollution Prevention
J

Top Commitment

Basic Information

Sustainability Strategy

Climate Change and ResilienceJ
I

Pollution Prevention

The Company and each investment corporation strive to create and enhance the environmental
value generated by reducing environmental impact and preserving the surrounding environment.

Energy / Water / Waste / Biodiversity
JI

2. Minimize risk in acquiring real estate

3. Compliance with laws and regulations regarding soil contamination, etc. after acquisition of realestate (soil contamination countermeasures laws)

During soil and environmental investigations, third party experts perform environmental
pollution investigations. Prior to executing any purchase agreement, Investment Corporations
will have experts conduct a soil and environmental contamination survey to assist it in assessing
a property’s environmental risks. Investment Corporations will use the pre-investment
assessment workflow chart indicated below to determine whether the investment would beappropriate.
Concerning soil contamination, its property acquisition manual stipulates that investment
targets shall be, in principle, properties “that are very unlikely to have soil contamination or thatcannot eliminate the possibility of having soil contamination but are very unlikely to carryenvironmental damage risk.”SocialEnvironment

Governance

Environmental Approvals and Evaluations for Assets
J
I

J

Data

26

I

Green Bonds
J

Pollution Prevention

I

Pre-Investment Assessment Workflow
Phase 1

Assessments When Acquiring Real Estate Properties
When acquiring real estate properties, the Company takes various environmental factors into
consideration before making investment decisions: property inspections, land history
investigations, and other related research on environmental risk factors.
Recognizing that hazardous substances related to soil contamination and buildings (PCB,
asbestos, etc.) are one of the risk factors in real estate transactions. Adequate and reasonablemeasures are taken in light of socially accepted ideas and trustee obligations, and legal
regulations, complaints, and other risk management are implemented in relation to hazardous
substances related to soil contamination and buildings.
1. To accurately calculate the risk for the judgment materials for the acquisition of real estate

Key Issues and Initiatives

Historical record review*1

Interviews

Phase 1'
Phase 2

*2

Soil and groundwater contamination survey(Determining presence or absence of problems by surveying the soil )*3

No concerns

Adjust offer
price

*4

Phase 3Site remediation

RejectInvestment Committee
Purchase agreement / Closing*1 I f we are unable to determine solely from a review of historical records that there is no risk of soil contamination or that no other environmental
contamination exists (for example, a manufacturing facility that utilized toxic or other hazardous substances in the past).
*2 If we are unable to determine from interviews with the seller that there is no risk of soil or other environmental contamination.
*3 If a contamination concern exists, but the necessary remediation would be technically or economically infeasible (for example, remediation isextremely difficult due to structures existing above the contaminated area).
*4 If, after discussions with the seller, remediation is deemed technically and economically feasible.

Tenants and service
providers(PM / BM / engineers, etc.)

Examples of Dialogue Opportunities- Holding periodic workshops- Conduction tenant satisfaction survey

SocialKey Themes- Working on energy-saving and Co2 Reduction measures- Improving energy efficiency- Building resilience

Examples of Dialogue Opportunities

Human rights 28

Diversity, equity, and inclusion 

29

Human Capital Development 
Health and Well-Being Communication with Tenants / Building resilience Communication with Local Communities / Creating a Positive Impact

Social Finance Social Contribution Activities 

K

30
31
32 34
33 35
36
37

Employees- Operating websites and preparing communication tools(asset management reports, etc.)- Providing spaces for community events- Economic contribution to the community- Understanding and promotion of stakeholders- Responding to environmental certification

Key Themes

Examples of Dialogue Opportunities- Conduction employee satisfaction survey

Key Themes- Cultivating human resources- Improving worker health and benefits- Holding briefing sessions on financial results and giving
presentations to investors- Participating in local cleanup activities- Social donation activities

Efforts to further enhance thecompanyI

Examples of Dialogue Opportunities- Organizing facility visits in cooperation withtenants

Cooperation in considerationof sustainability

J

Investors, lenders, andbondholders

Local communities- Establishing a positive work environment

Key Themes
systemContinued contributions
to local communities

JMF

IIF
KJRM

Proactive disclosure activities

Cooperation with local governments as
the owners and managers of facilities

Governments

Examples of Dialogue Opportunities- Participating in town planning project led by municipality

Key Themes- Developing and disseminating demonstration projects
promoted by the government- Obtaining “Comprehensive Assessment System for Built
Environment Efficiency” (CASBEE) ratings- Providing open public spaces and planting trees

SocialHuman rights

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Basic Policy

The Company is promoting sustainability activities to realize its mission: " Always Create New Value for People, the Community,
and the World." In 2016, we signed the United Nations Global Compact (UNGC), which consists of the ten principles in the fourareas of human rights, labor, environment, and anti-corruption.
Recognizing that addressing human rights issues is linked to practicing Responsible Property Investment and contributing to
the solving of global issues, we will move forward with our initiatives.

Human Rights Policy

The Company established the KJR Management Human Rights Policy in December 2022. Under this Policy, theCompany supports international human rights norms such as the Universal Declaration of Human Rights, theInternational Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental
Principles and Rights at Work, the UNGC and the UNGP, and applies this Policy to the Company’s officers,
employees, dispatched employees, and all other persons who engage in work for the Company. At the same time,
the Company expects its business partners to support this Policy and cooperate with the implementation of
measures regarding respect for human rights by complying with this Policy.
For the full text of the KJR Management Human Rights Policy, pl ease click here.

Human Rights Due Diligence

Human Rights Risk Management and Monitoring

The Company operates the Risk Management Committee, in which
senior management personnel serve as members. The Committee
understands and investigates matters related to major human rights
risks and formulates countermeasures and management policies.
Regarding business risks, including priority issues related to humanrights risks, it checks the risk status of each division once every twomonths using a Risk Control Matrix (RCM), and reports the results at
the Committee, thereby implementing evaluation and management.
In addition, we conduct monitoring to prevent any negative impact
on human rights and to understand the current situation.

Publication of Initiatives

Implementation of
Monitoring

Regular Implementation of
Questionnaires for and Exhange
of Opinions with Employees,
etc. / Regular Supplier
Evaluations
Implementation of
Education andTraining

Implementation of Preventive /Corrective Measures

We will disclose information on the status of our response to human rights issues

Remedial Measures

Assessment of Impacts
on Human Rights
Specification,
Analysis, andAssessment ofNegative Impacts

Establishment ofInternal Environment /Systems

Implementation of Preventive /Corrective Measureson the Company’s website as appropriate.

We have established an internal inquiry counter for all executives and employees as well as our business partners in order toreceive consultations and reports regarding violations of laws and regulations, information management violations, various
types of harassment, human rights, and the working environment. In addition, we have designated the internal inquiry counterof KKR & Co. Inc., and an external law firm as an external point of contact for these matters, for consultation and reporting, and

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Social Contribution Activities

have secured a route for external consultation and reporting.
When the internal inquiry counter receives a whistle-blowing report, the Head of the Compliance & Risk Management Officeassumes responsibility and the Compliance & Risk Management Office investigates the facts.
Please refer to the page 41 for further details.

Monitoring

We conduct monitoring to prevent any negative impact on human rights and to understand the current situation.

Initiatives Aimed at Employees（Monitoring of relevant indicators, etc.）

Based on indicators related to priority issues, monitoring of overtime work and stress checks, we urge
relevant divisions to improve the situation where necessary.

Initiatives for Suppliers（Monitoring through regular evaluations and audits）

We conduct regular supplier evaluations once a year to check whether suppliers meet our selection
standards and whether there are any special issues requiring attention.
In addition, the property management company (PM company) carries out annual supplier evaluations,
including evaluations of their organizational systems and sustainability initiatives, and asks them for
consultations and improvements, as necessary. Furthermore, annual audits of a number of companies
are implemented, including interviews regarding details of their business policies, compliance systems,
and status of sustainability initiatives.
Preventive Measures
Entire Supply Chain
On new appointment

Evaluation basedon our standards

On continuous appointment

Confirmation of improvement
in systems, etc.,as necessary

PM company

PM audit / PM evaluation

Sustainable Procurement Policy

Monitoring

Request for consultation &improvement as necessary

Entire Supply Chain
Regular supplierevaluation

The Company recognizes the importance of measures throughout the supply chain to realize a sustainable
society. We have established the Sustainable Procurement Policy which sets out our procurement policies for all
products, raw materials, other materials, and services that we procure, as well as policies on respect for humanrights. Expecting our business partners to also implement procurement in accordance with the Policy, we strive
to realize sustainable procurement throughout the supply chain.
For the full text of the Sustainable Procurement Policy, please click here.

SocialDiversity, equity, and inclusion

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Environment

SocialGovernanceCommunication with Local Communities / Creating a Positive Impact
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Basic Policy

We believe that the promotion of diversity, equity and inclusion (“DEI”) leads to better decision-making and results. Based on this idea, the Company is working to create an environment in which each of our people, with various backgrounds
and perspectives differing in gender, race, nationality, disabilities, age, experience and other aspects, can be proud of working and fully demonstrate their abilities.

DEI Promotion Structure

Matters concerning DEI are set as one of our Materiality and KPIs, and their progress is reported to the Sustainability Committee. The Human Resources Department promotes the DEI-related initiatives in coordination with each division,
For more information on Sustainability Promotion Structure, please click here.
including management, in accordance with the Basic Policy.

Initiatives to Promote DEI
Prohibition of Discrimination

The Company believes that it is essential to ensure a safe and comfortable work environment in which each and every officer and employee can fully demonstrate their abilities and concentrate on performing their duties. To this end, in orderto clarify our stance that unfair discrimination among officers and employees must not be tolerated, our Code of Ethics stipulates that “officers and employees of the Company shall endeavor to ensure a pleasant work environment and tomaintain order in the workplace in which each officer and employee is respected as an individual and can trust each other.” Our Rules of Employment also stipulate that there shall be no unreasonable discrimination or harassment based on
race, ethnicity, skin color, nationality, place of birth, sexual orientation, physical characteristics, status as a person with disabilities, or political or religious beliefs.
* Persons who suspended working for childbirth, childcare, nursing care, or other life event

Work-Life Balance, and Balancing Work and Child Raising

We have formulated an action plan to create a work environment in which employees can achieve work-lifebalance, and balance work and child raising, while fully demonstrating their abilities.
TargetCreation of a work environment where
employees can fully demonstrate their abilities
while maintaining work-life balance* April 2022- December 2023①②③

TargetProactively inform and educate employees about childcare-related
systems to make it easier for them to use such systems
Rate of eligible male employees taking childcare leave: 50%(including at least one male employee taking childcare leave)

Average overtime hours (in excess of legal working hours and on statutory
holidays): less than 45 hours per month; and average overtime hours per
year (in excess of legal working hours): less than 60 hours per month*Target ③ is for regular employees

KPI

Achievement of a 50% utilization
rate of parental leaveby male employees(at least one employee taking parental leave)

2023/3

Progress

2023/12

100%
83.3%*

Measures・Send messages from management regarding childcare-related systems
・Provide a guidebook on childcare-related systems for employees to publicize them within the Company

・Provide individual guidance to male employees whose spouses have given birth・Distribute monthly reports to department heads to inform them of the statusof overtime work
・When an employee continues to work long hours, check the individual
situation and consider measures for improvement

You can also check our plan on “Action Plan for Balancing Work and Childcare Publication Site” (in Japaneseonly) in the “Support for Work-Life Balance” section on the Ministry of Health, Labour and Welfare’s website.

Promotion of Advancement of Women

We aim to further promote the advancement of women in the workplace, thereby continuing to create
groundbreaking innovations.
TargetFurther promote the advancement of women in
the workplace, thereby continuing tocreate groundbreaking innovations.

KPI

Raise the ratio of female employees
in managerial posts to 20%(target year: 2027)

2023/3

Progress

2023/12

15.2%
15.2%

Employer Action Plan based on the Law for the Promotion of Women's Activities
Done
Done
Done

Implementation period

Details of initiatives- Send messages from management on the importance of diversity and inclusion in organizational operations- Hold seminars on gender gaps for managers and female employees- Conduct an awareness survey on career development among female employees

DoneApril 2023 -- Select candidates for managerial posts, and have them formulate medium- to long-term career plans through interviews
with their supervisors

Done

October 2023 -- Hold a roundtable discussion between female managers and candidates for managerial posts.
- Develop a talent pipeline and follow-up systems, such as a mentoring system

April 2022 -October 2022 -April 2024 -- Based on the results of the awareness survey, conduct career seminars for female employees to help them shape andrealize their medium- to long-term career image

Done- Provide training programs for candidates for managerial posts

To be done

- Provide regular mentoring to female managers who have been promoted- In departments with fewer female employees, the candidate pool for managers will always include women, and whenhiring, strategic recruitment activities will be initiated with an awareness of gender diversity, such as interviewing bothmale and female candidates as necessary

To be done

The status of women’s advancement in the Company is also available on the “Database of Companies Promoting
Women's Advancement”(in Japanese only) on the website of the Ministry of Health, Labour and Welfare.

To be doneSocialH uma n Ca p it a l Dev el o pment

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Environment

SocialGovernanceCommunication with Local Communities / Creating a Positive Impact
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Basic Policy

Based on the concept that human resources are our most important asset, KJR Management supports autonomous career development by preparing various development programs so that each employee is able to grow and achieve selffulfillment through working at the Company. As an organization consisting of diverse human resources with different backgrounds, we strive to spread its “Mission, Vision & Core Values” so that employees with various specialties anddifferent values can respect each other and utilize their individual strengths to achieve high performance.

Human Capital Development

For the purpose of proactive career development and enhancement of expertise, we have been implementing aninternal recruitment system that allows employees to be challenged by the duties of their choice, as well as regulartransfers by company order based on their own wishes. In addition, to meet the diversified needs for training andsupport for self-development, we have established a training system that allows employees to take courses at theirown request. In addition to the development of various training programs and the system to support theacquisition and maintenance of qualifications, we are also strengthening performance management to support
growth and regular career discussions with supervisors.

Training for Managers

We take various measures to enhance people-management skills and leadership of managers and to train nextgeneration employees. Newly-promoted managers who have subordinates for the first time are required to attend
a training program for managers by an external training organization. We also support our managers actively in
improving their skills by offering a leadership development program, a workshop for appraisers, and a training
course for interviewers by external lecturers in addition to cafeteria-style training programs that employees canattend according to their individual needs. In addition, we regularly provide a frontline-care training course on
mental health for managers to support subordinates from a mental health perspective.

Medium-career
employee

Training for
medium-career
employeeand leaders

Training for
medium-career
employeeand leaders

New/youngemployee

Training for new andyoung employees

Training for new andyoung employees

External training institutions

Main course contents
Corporate panning
Personnel and labor relations
General affairs and legal affairs
Accounting, taxation, andmanagement accounting
Sales and marketing
Production, logistics and ISO
Trade, global and foreign
languages
PC skills
Business skills(Communication, thinking ,work, manners and selfmanagement)

Selfdevelopment

In-house
training

ARES certified master
Real estatetransaction agent

Real estate appraiser
Real estate
consulting master
Certified building
administrator
Licensed seniorarchitect

Other(Choice every time)

For details regarding in-house training for acquiring expertise in real estate and finance, please click here.

Evaluator training andinterviewer training

Training for
management,
executives,and managers

Cafeteria Plan

Support for specified
qualifications

IT security, harassment

Management

Training for
management,
executives,and managers

Business professional
skills training

Internal control, compliance,

Level based training

Accounting, finance, tax, legal affairs,
information processing, various
qualifications, PC skills, English

Nomination based
training

Company

Compensation Program

The Company's compensation system is applied to all permanent employees. We seek to provide competitivecompensation to attract, develop, and retain excellent human resources for the Company's stockholders andinvestment corporation's investors. Based on the Total Compensation Approach, fixed pay is determined based on
the Pay for Job principle and variable pay is determined based on the Pay for Performance principle. Variable pay
reflects the performance of the Company and appraisals of employees.
In addition, a long-term incentive system, in which pay is tied to the Company's performance and the investment
unit prices of managed funds, has been introduced for senior-level employees. The system seeks to avoid outflows
of excellent human resources and achieve stable management of the Company and to create growth of medium- tolong-term funds from the viewpoint of investors and to motivate and reinforce consciousness for performance
improvement of the Company.
Compensation that employees receive is determined according to their relative achievements and contribution
levels compared to the individual targets linked to the organizational targets including sustainability-related
targets, the embodiment of the corporate philosophy, and expected roles.

Support for Acquiring Further Qualifications

The Company encourages acquisition of certifications for the development of professional human resources in thereal-estate finance business and covers at least a portion of the necessary costs and offers training opportunities.
In particular, we actively support the acquisition of professional certifications by the Association for Real Estate
Securitization (ARES), of which the Company is a regular member. When an employee becomes an ARES Certified
Master of the Association, the Company covers the entire fee for the examination (first time only) and formaintaining the certification. The Company also encourages employees to participate in training courses andseminars for those who already have certification.
The Company also covers at least a part of the cost required for training, examination, and maintenance ofcertifications related to work. Many employees tackle the challenges of acquiring certifications.

SocialHealth and Well-Being

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Environment

SocialGovernanceCommunication with Local Communities / Creating a Positive Impact
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Work Environment

The Compnay considers its employees to be its most important management resource and essential for carrying out its activities. We are actively working to create conditions where each and every employee can performtheir work in a lively manner and to cultivate them accordingly. In addition, we regularly conduct employee opinion polls with the aim of building an even better company. The Company is working to ensure that all
employees can work with peace of mind and to improve the benefits it provides to them.

Heath of Employees

Diversity in Work Styles

KPI

Progress

Percentage of paid leave used at least 70.0%

78.3%
2023/3 79.4 %2022/3

Besides meeting the legal requirements in Japan for employee health and safety, including labor and risk
management, The Company emphasizes the prevention of excessive work and understanding the appropriatenessof working hours, and is enhancing its system for managing working hours through an original monitoring
framework. In addition to an emphasis on measures aimed at reducing overtime, we require employees to takelong-term leave and are taking steps to increase the rate that paid leave is used.
Moreover, we provide various wellness programs to maintain and improve the mental and physical health of ouremployees and their families. We have also established the in-house Health Committee comprising employees
representing each division and the Human Resources Department. The committee meets once a month toexchange opinions on working conditions alongside industrial physicians and to gain health-related insight.
Through these initiatives, we are supporting employees in the preservation of their health.
- Working time monitoring system- Check and report on deviation in working
hours (every month)- Report on long working hours to secure
health (professional employees/once aweek)- Annual paid leave(15 to 20 or 25 days granted, depending on
the length of employment (the number ofdays granted by law is 10 to 20 days))- Mandatory acquisition of long-term
consecutive leave- Health checkup/complete medical checkup- Influenza immunization shot
- Various counseling services (EAP) byexternal experts- Health consultations by industrial
physicians/health nurses- Health Committee- Conducting of stress checks

The Company has created an environment that allows its employees to workin ways that suit their respective lifestyles and the characteristics of theirduties. Toward the maintenance and realization of flexible working styles, itabolished the upper limit on the number of teleworking days and has
introduced measures such as a flextime system, working from home and paid
leave in units of hours. Expecting that its employees will achieve a better
work-life balance and increase productivity, the Company is working tocreate systems that enable diverse human resources to play an active role.

- Flextime system- Working from home (satellite offices
available)- A variety of special leave programs,
including family care special paid leave- Acquisition of paid leave in units of hours

Improving Employee Benefits

In addition to completely supplying a social insurance system, we have introduced an original retirement pension
system, have entered into general welfare group term life insurance, group long-term income compensation
insurance, member welfare services, a congratulatory and condolence payments system and ESOP (Employee
investment unit ownership system) and other systems.
Work Environment
The office space is designed to provide anenvironment in which employees canwork comfortably and actively. Naturallight enters the work space throughwindows and plants have been arranged
throughout bright office. In addition,individual booths have been set up in
consideration of the current work stylethat combines office and telework.

Bright office with plantings

Individual booths reflecting current
working style

In-office cafeteria

Regular air quality inspections

We have upgraded communal spaces topromote communication with fellow coworkers and have incorporated rest
areas where employees can relax andrefresh themselves. We also conduct
environmental checks periodically toprovide comfortable working conditions
for employees.

SocialCommunication with Tenants / Building resilience

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-BeingJ

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Environment

SocialGovernance

Data

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Social Contribution Activities

JMF operates a wide variety of properties, including retail facilities, mixed-use and office buildings, which means our tenants are also diverse. We make efforts in consideration of our tenants’ safety and the facility environment.
Furthermore, we promote measures that consider the global environment as well.

Communicat ion wit h Tenan t s

Introduction of Green Leasing

JMF proposes the introduction of green leasing, the practice of voluntarily making and implementing agreements ormemorandums to introduce renewable energy, in order to reduce the environmental burden of real estate by energy
saving and other measures, and improve the work environment. As more and more tenants are becoming deeplyinterested in green leasing with society as a whole moving toward decarbonization, we newly signed green leaseagreements for two retail properties in FY2022. We plan to continue advancing initiatives to promote GHG emissions
reduction through collaboration with tenants in promoting the introduction of green leases and other initiatives.

Sustainability Study Sessions

JMF holds sustainability study sessions with tenants andPM companies in order to deepen their understanding ofsustainability initiatives. JMF are also working to raisesustainability awareness by introducing JMF's efforts at
events conducted by commercial facility operators.

Sustainability study session

B ui l d i n g re si l i e n c eTargetAEON MALL Tsudanuma

Conduct tenant satisfaction surveys

KPI

Makuhari Plaza

A satisfaction survey of tenants of office buildings and some retail properties is conducted by an outside researchorganization once a year. Comprehensive decisions are made as to whether or not to accommodate requests based on
the results of this survey, and the tenants are informed of any actions taken.

Collaboration with partner companies to reduce environmental impact

JMF promotes environmental considerations through collaboration with tenants, PM companies and building managementcompanies. (BM companies) Recognizing that cooperation with PM companies and BM companies is essential to addressing
environmental issues, JMF holds regular study sessions and meetings to discuss and share measures. In parallel, JMF is
working to strengthen communication with tenants by providing them with proposals for environmental actions.
We include clauses on environmental initiatives in our contracts, such as Commercial Agreements with each stakeholder,confirming our commitment to cooperation.

Implementing disasterprevention measures

Preparing emergency supplies at 100%of the properties where such supplies can be kept

Developing an emergency communication networkthat covers 100% of properties
Collecting engineering reports (ERs) regularlyfor 100% of properties

Measuring Air Environment

Progress

100％
100％
100％

Asbestos is a naturally occurring mineral fiber sometimes called sekimen or ishiwata, and breathing it is highly likely tobe hazardous to health, thus implementation of some measures is required. JMF measures the air environment once a
year to confirm the dispersal status of asbestos.
Please refer to the JMF website

for additional information on tenant communication and other initiatives.

SocialCommunication with Local Communities / Creating a Positive Impact

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

J

Communication with Local Communities

mozo wonder city has attracted mainly locally based tenants and uses
many locally sourced materials for its store interiors. It has also
carried out a community-based renewal, including mural art andevent wagons created in business-academia collaboration with local
universities.

Old materials used for pillars and locally made tiles
used for store designs

Conclusion of comprehensive cooperation agreement between Abiko Shopping Plaza and Abiko City
Abiko Shopping Plaza has concluded a comprehensive cooperationagreement with Abiko City for the purpose of further improving services
to citizens and greater revitalization of the community. In the past, wehave held childcare events and conducted initiatives in collaboration
with the City Library, but we are planning to widen the areas ofcollaboration under this agreement, including the following items.

Data
Social FinanceI

Improve the sustainability of the local community

Secure stable earnings

Sustainable cycle to create
a community with the local
residents

Cycle to utilize and grow
JMF’s management
experience while securing
stable earnings

Surrounding areas

・Promote social interactions within the community
・Secure jobs and workplaces
・Secure diversified learning environment
・Share energy

Initiatives through public-private partnerships

Core impacts of the Acquisition

Core Impacts

Railway operators(public assistance)

Mutual aid

Increase positive
impacts

Mutual aid

Companies
located in the area
(Self-help)

Companies
located in the area
(Self-help)

Companies
located in the area
(Self-help)
Mutual aid

Companies
located in the area
(Self-help)

Companies
located in the area
(Self-help)

GovernanceJ

33
Social Contribution Activities

JMF decided to acquire "Karuizawa Commongrounds (land with leasehold interest)" in March 2022.
JMF will participate in the creation of the local community in Karuizawa as a land owner. Thisacquisition will contribute to the creation of a local community in Karuizawa, and will simultaneously
contribute to improving the sustainability of the local community and generate stable income.

Advantages①PR for the city administration ②Health, welfare, and childcare③Education and promotion of local culture ④The environment⑤Promotion of the local economy ⑥Local disaster prevention etc.

Government, police andﬁre departments(public assistance)

SocialCommunication with Local Communities / Creating a Positive Impact
J
I

Promote the use of various facilities

Collaboration and cooperation items

Lifeline operators(public assistance)

Communication with Tenants / Building resilienceJ
I

Environment

Creating a Positive Impact

Realized community-based renewal

We are cooperating in public rescue andassistance and mutual help initiatives throughpublic-private partnerships at Twin 21, locatedin Osaka Business Park (OBP). Based on plansfor ensuring safe urban regeneration of theentire area, rules have been established formaintaining transportation during a disasterand evacuation drills have been carried out inanticipation of people being unable to returnhome due to a large-scale earthquake.
Through participating in such initiatives, we
are working with the community and thegovernment to reduce environmental impact
and increase resilience.

Key Issues and Initiatives

BCD

Wide-area disasterprevention centers(public assistance)

OBP area future targets image

Mutual aid

Implementation of disasterpreparedness drills

Reduce negative
impacts

Reduce carbon emissions indevelopment and operation
Contribute to improving thewellbeing of users throughoperation of a community“hub”
Reduce carbon emissions inoperation

Karuizawa
Commongrounds

JMF

Provide business stability and management know-how

Advantages

・Secure earnings that exceed the NOI yield after
depreciation of the portfolio average on a long-term basis
・Improve area management capabilities
・Expand investment areas
・Develop new investment methodologies

KPIs to Identify Impacts

・Energy consumption
・CO2 emissions
・Renewable energy generation by solar panels
・Self-sufficiency ratio through renewable energy
・BEI value by new construction or renovation
・Percentage of local building materials used in new construction or renovation
・Number of EV-sharing introduced and used

・Approximate number of visitors to the entire facility
・Number of registered users of shared offices, their attributes and satisfaction levels
・Number of events held in the facility and their characteristics
・Energy consumption and intensity
・CO2 emissions and intensity
・Percentage of LEDs in all lighting equipment in the facility

SocialCommunication with Tenants / Building resilience

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

3C Management Cycle

By providing value to tenants, IIF continues to manage its portfolio using its “3C Management Cycle,” which isdesigned to realize internal growth through stable, long-term management that goes beyond the norm.

m
Co
Needs

Custo

ate

Grasp tenants’ needs
through close communication

Enhancedusability

Renovation/
CAPEX

Long-term
use

Cost
reduction

Facility
specs

Locationmiz

Propose customized solutions
that comply with tenants’ needseCustomized solutions
leveraging our accumulated expertise
Tenants

Create value through providing
solutions to tenants’ needs＜Expertise on industrial real estate＞
・Full knowledge of characteristics of theproperty and location
・Understanding of tenants’ usability

Long-term stable management + enhanced profitability
and asset value“Stability +Added-value”

CreatePromotion of Green Leasing

These activities serve as a foundation for IIF’s cooperation with tenants in initiatives such as provision of
portable batteries and conclusion of green lease agreements.
IIF is actively upgrading lighting equipment at owner’s expense to reduce environmental burdens. The LED
replacement work implemented in FY2022 has reduced usage of electricity by more than 800 MWh. We willfurther increase the use of LEDs for reduction of GHG emissions.

Conduct tenant surveys

IIF conducts sustainability-related surveys of tenants in order to promote initiatives with tenants regarding
climate change measures.
Please refer to the IIF website

Communication with Tenants / Building resilienceJ
I

Environment

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Social Contribution Activities

I

Collaboration with partner companies to reduce environmental impact

C ommunica t ion wit h Tenant s

nicmu

Key Issues and Initiatives

for additional information on tenant communication and other initiatives.

IIF promotes environmental initiatives in cooperation with tenants, PM companies, and BM companies throughcontinuous communication. IIF strives to promote measures that lead to environmental considerations byconducting questionnaires for tenants, including energy-saving measures, and making proposals in line with
their requests. In parallel, recognizing that cooperation with PM companies and BM companies is essential toaddressing environmental issues, IIF holds meetings that discuss and share measures.
IIF includes clauses on environmental initiatives in our contracts, such as Commercial Agreements with eachstakeholder, confirming our commitment to cooperation.

B ui l d i n g re si l i e n c e
IIF is working to maintain the safety of its buildings by conducting building and earthquake risk assessments atthe time of acquisition as well as collecting engineering reports on a regular basis. In addition, secondary
assessments are performed as well. When results of those assessments conclude that earthquake-resistantreinforcement construction is required, we make environmentally conscious choices that will provide thenecessary seismic retrofitting while minimizing waste. At the same time, we also work to reduce GHG emissions
and energy consumption in the updated facility.

Measuring Air Environment

Asbestos is a naturally occurring mineral fiber sometimes called sekimen or ishiwata, and breathing it is highly
likely to be hazardous to health, thus implementation of some measures is required. IIF measures the air
environment once a year to confirm the dispersal status of asbestos.

Installation of the waterproofing board

IIF installs waterproofing board to prevent the inundation to the building.

SocialCommunication with Local Communities／Creating a Positive Impact

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Communication with Local Communities
IIF is engaging in activities that contribute to local
communities in collaboration with government
administrative authorities. IIF Shinagawa Data
Center provides a shared open space as a sidewalklike open space in a pocket park under an agreementwith Shinagawa-ku. IIF's activities in this pocketpark, including providing meals using a food truckfor employees working for tenants of IIF Shinagawa
Data Center and neighboring residents, arecontributing to the liveliness of the community.
Additionally, green areas are set aside for restorationof the natural environment, and to prepare forearthquake emergencies, a fireproof water tank has
been installed for earthquake disaster prevention. For
its cooperation in the installation of fireproof watertanks over the years, IIF has received a letter ofappreciation from Shinagawa-ku as an organizationcooperating in fire prevention operations.
Furthermore, to ensure that local residents areaware of the functions performed by our properties
in the area at IIF Shonan Health Innovation Park , weprovide tours of our facilities and other services. In
May 2023, Shonan iPark Festa was held to celebrate
the 5th anniversary of opening of the Park. The Festa
was visited by 7,000 people and many events such as
science experiences and science shows were offeredby tenant companies.
In December 2023, Healthcare MaaS 2023 was heldon the theme of "The Future of Connecting Healthand Mobility with Data," where about 800 visitors
enjoyed events offering hands-on experiences of
cutting-edge approaches in health, exercise, sports,
mobility, etc. that have started with Healthcare
MaaS.

Key Issues and Initiatives

Communication with Tenants / Building resilienceJ
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Environment

SocialGovernance

Data

Communication with Local Communities / Creating a Positive Impact
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Social Contribution Activities

I

Cre a ti n g a P o si ti v e I m p a c t
In February 2019, IIF carried on an impact investment project (a silent partnership, herein referred to as the“Tokumei Kumiai”) related to IIF Ota Manufacturing Center（OTA Techno CORE）. This is the first case of a J-REIT
making such an agreement based on the Principles for Positive Impact Finance.
Measures in Support regional economic development fromthe Perspective of Real Estate investment(PRE)Ota-ku, Tokyo

Payment of rent
HR development support

・A manufacturingindustry hub in Tokyo・An accumulation ofhuman resources,
including engineers
IIF Shinagawa Data Center

Providing space
to work

IIF Ota Manufacturing Center（OTA Techno CORE）

Dividends

Equity investment in
the Tokumei Kumiai

Cooperation with J-REIT as a long-term owner

ResultSite secured develop bpth humanresources and the succession oftechnologies to promote industry overthe medium to long term

IIF

・The only J-REIT thatspecializes in industrial
properties

・Established track recordof acquiring
manufacturing and R&D
facilities
ResultHave secured high profitability overthe medium term
Have ensured future acquisition
opportunities

Positive Impact Investment Monitoring Policy

We perform regular monthly or annual measurements concerning the impact set at OTA Techno CORE in
accordance with the following monitoring policy.
アタリ

IIF Shonan Health Innovation Park

アタリ

Positive impact
Negative impact

Employment and a Comprehensive and Sound Economy
It reports on provision of inexpensive lease space to small and medium enterprises andnumber of jobs maintained and created by tenant companies

Climate: It reports on energy consumption intensity and CO2 emissions intensity
Soil: It reports on hazardous waste release volume*For more information on monitoring, please click here.

SocialSocial Finance

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Social Bonds

As part of initiatives to resolve social issues, IIF has issued the first social bonds in September 2021.
Social Bonds refer to bonds that are issued by business companies, funds, local governments, and otherentities in order to procure funds for social projects. Typically, the bonds are issued according to theSocial Bond Principles* laid down by the International Capital Market Association (ICMA). IIF promotes
further sustainability initiatives and expands financing methods by expanding investor base who areproactive in ESG investment by implementation of social financing through the Social Bond issuance.

Impact(Qualitative Targets)
Impact Reporting

GovernanceCommunication with Local Communities / Creating a Positive Impact
J
I

Data
Social FinanceI

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36
Social Contribution Activities

Social Loan

Eligible
Social Projects

74 properties

JPY 108.8 bn.

17 properties

Overview of Eligible Social Projects

1755

properties

thousand ㎡（Total floor space ratio:35.4%）* For more information on the ICMA Social Bond Principles, please click here.

Debts of Eligible Social Projects＝ Eligible Social Projects
× LTV ratio

Debts of
Eligible Social Projects
JPY 52.5 bn.

(LTV based on book value:
48.2% as of January 31,2022

Maximum outstanding
amount of social ﬁnancing

Total outstanding amount of social bonds
Number of issuances
Total amount issued

2
5

billion yen

I

IIF raised 4 billion yen through its first social loan under the Social Finance Framework established by
IIF to be applied to the acquisition of IIF Ota Manufacturing Center, which is an Eligible Social Project,
and related expenses. We will continuously promote sustainability-conscious asset management andwork to strengthen our funding base through funding by implementation of social financing.

Output indicators

Social Balance Sheet

JPY 413.4 bn.

* As of the end of January 2023

SocialWhile social financing including social bonds remain outstanding, IIF reports annually the total amount of Eligible Social Projects, Debts of Eligible Social Projects and the outstanding amount of social
financing as of the end of January of each year, as well as the following KPI on Impact Reporting.

IIF’s Portfolio

Total floor space

Communication with Tenants / Building resilienceJ
I

Environment

To contribute to the establishment and development of a stable social infrastructure by promoting industrial promotion and R&D activities as a practice under the philosophy “Invests ininfrastructure and industrial properties that and the source of the Japanese economy, and support Japanese industry from a real estate grand point.”

IIF portfolio book Value

Number of properties

Key Issues and Initiatives

Summary of Properties and Leases of Eligible Social Projects, Profit and Loss of Eligible Social Projects andOccupancy rate of Eligible Social Projects are to be reported.

Outcome indicators

As facilities for the development of medical technology treatment such as medicine, pharmaceuticals, and drug discovery, etc.,
the report covers trends in social security benefits, the number of researchers and R&D expenditures in the pharmaceuticalmanufacturing industry and the number of particular medical expenses (designated intractable disease) recipients.
As facilities for job creation and development of reginal economies through industrial promotion, etc., the report covers
number of business establishments, amount of shipments of manufactured goods, and number of employees in areas where
facilities are located.

As facilities for maintenance and improvement of social life networks, the reports covers trends of the diffusion index (D.I.) for
employment conditions, in IT investment and in food loss and waste.
As facilities for maintenance and improvement of public lifelines, trends in energy consumption of gas, electric power, etc.,
the number of traffic accidents and population of the municipality in which the facility is located.

As facilities contributing to development of disaster prevention technologies for disasters, maintenance of redundancies andmaintenance of logistics networks for daily necessities in the event of disasters, and facilities for temporary evacuation, etc.,
trends in the amount of damage from nature disasters.

For more information on Social Finance, please visit the IIF website.

SocialSocial Contribution Activities

Human rights

Top Commitment

Basic Information

Sustainability Strategy

Diversity, equity, and inclusion

Human Capital Development

Health and Well-Being

Key Issues and Initiatives

Communication with Tenants／Building resilienceJ
I

Environment

SocialGovernanceCommunication with Local Communities／Creating a Positive Impact
J
I

Data
Social Finance
I

J
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37
Social Contribution Activities

Under our mission of "Always Create New Value for People, the Community, and the World," we have set "cooperation with local communities" as our materiality and are engaged in various
social contribution activities.

Social Contribution Activities by Employees

A cross-divisional working group leads examining our social contribution activities and spreadingthem within the Company, and promotes charity and volunteer activities.
Purpose of the activities- To contribute to the happiness of the local communityand build trust- To support employees' participation in building better
local communities

Wide-ranging contribution activities
FIT For Charity Run

Through our participation in the FIT For Charity Run*, we
donate to organizations engaged in socially significant
activities for poverty, people with disabilities, biodiversity, etc.

- To raise employees' awareness regarding various
communities- To expose employees to various social issues anddeepen their insight into important issues addressed by
the Company in its business

Volunteer leave system to support employees' social contribution activities

We believe that it is important for the promotion of our social contribution activities for our employees to have opportunities
to be exposed to various communities based on their voluntary choices. For that purpose, a leave system has been establishedfor employees to use five days a year for volunteer activities.

Volunteer activities using internal system

Our employees, using volunteer leave, tidied classrooms and art rooms of a special needs school and cleaned them with mops
and vacuum cleaners. They also made 200 rice balls and donated them to an organization that supports children who areunable to get enough to eat due to poverty or other reasons.

PAIYAKIGAMA

A sales event was held at our office for handmade confectionery froma welfare facility that supports the independence of people withdisabilities. People with disabilities who made the confectionery
participated in the sales and interacted with our employees.

Social Contribution Activities at Properties

JMF conducts social contribution activities that meet the characteristics of each property and local needs.
GYRE held the Outsider Art Exhibition at its gallery to show
and sell works of artists with disabilities. This exhibition
attracted more than 1,000 visitors in the first three days,
bringing a lively atmosphere to GYRE.

FIT For Charity Run

Sales of handmade sweets from welfare facilities*FIT For Charity Run (Financial Industry in Tokyo For Charity Run)A charity event organized by Japanese financial institutions and financial-related service companies that started in 2005. It
contributes to society through donations to non-profit organizations that are engaged in socially significant activities but
have not been able to secure adequate funds due to insufficient recognition and other problems.
Please refer to page 35 for social contribution activities at IIF properties.

Nara Family provided the venue for a food drive project
hosted by a neighboring school and co-sponsored by
FOODBANK NARA. Donors were given gourmet coupons thatcan be used in Nara Family, creating opportunities for use oftenants of the facility.

Code of Ethics

The Company hereby sets forth the Code of Ethics which constitutes the Corporate Ethics Charter and Code of Conduct for
Officers and Employees, for the purpose of operating sound business based on high ethical standards, establishing social

Governanceconfidence and contributing to social development.

Corporate Ethics Charter- Contribution to Society and Securing Confidence- Compliance with Laws and Regulations/Various Rules- Information Disclosure and Ensuring Operational- Maintenance of Fair Relationship- Earning Investors’ Satisfaction

Transparency, Maintaining Sound Management- Compliance with Laws and Regulations and Social Norm

- Respect for Employees

Corporate Governance Compliance JK

39 39 39

Anti-Corruption and Bribery Prevention 
Risk Management 

I

41
42
43

Code of Conduct for Officers and Employees- Responsible Performance of Business- Maintenance of Order of Workplace- Distinction between Public and Private Matters

Governance

Top Commitment

Corporate Governance

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialCorporate Governance

GovernanceComplianceJ

Data
Anti-Corruption

J

Governance of JMF

Governance of IIF

IIF Board of Directors

Executive Director

Executive Director

Kumi Honda Female

Male

Experience and expertiseElected as deemed to be qualified to execute the duties as an executive director of JMF
based on his expertise in accounting and long experience as a supervisory director of JMF.

Experience and expertiseElected as deemed to be qualified to execute the duties as an executive director of IIF
based on her expertise in legal and long experience as a supervisory director of IIF.

Supervisory Directors

Male

Experience and expertiseElected as deemed to bequalified to supervise
executive directors' activities
from the viewpoint of a legal
expert.

Risk Management

IIF has one or more executive directors and two or more supervisory directors(at least one more than the number of executive directors).
The organization of IIF consists of one executive director, three supervisory
directors, the Officers Meeting, plus an accounting auditor, in addition to theGeneral Meeting of Unitholders, which is comprised of investors.

JMF Board of Directors

Osamu Ito

39

I

JMF has one or more executive directors and two or more supervisory
directors (at least one more than the number of executive directors).
The organization of JMF consists of one executive director, two supervisory
directors, the Officers Meeting, plus an accounting auditor, in addition to theGeneral Meeting of Unitholders, which is comprised of investors.

Masahiko Nishida

I

Yoko Shirasu Female *Experience and expertiseElected as deemed to bequalified to supervise
executive directors' activities
from the viewpoint of afinance and treasury expert.

Supervisory Directors

Yutaka Usami

Male

Experience and expertiseElected as deemed to bequalified to supervise
executive directors' activities
from the viewpoint of an
accounting expert.

Koki Ohira

Male

Experience and expertiseElected as deemed to bequalified to supervise
executive directors' activities
from the viewpoint of a legal
expert.

Fumito Bansho

Experience and expertiseElected as deemed to bequalified to supervise
executive directors' activities
from the viewpoint of a legal
expert.

* Yoko Shirasu was appointed as Supervisory Director in November 2023.

Asset Management
Entrustment

Asset Management
Entrustment

Each of the investment corporations entrusts their asset management to the Company as their asset

manager, and the Company is committed to upholding its fiduciary duty to the investment corporations.
Please refer to page 40 for more details on how it manage.

MaleGovernance

Top Commitment

Corporate Governance

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialCorporate Governance

GovernanceCompliance

Data
Anti-Corruption

J
I

40
Risk Management

As an asset management company, KJR Management receives asset management consignments from JMF and IIF, and is committed to upholding its fiduciary duty to investment corporations.

Decision-making Process

In the course of making decisions regarding the acquisition, disposal, or operation and management of assets, approval is obtained from the Investment Committee and the Senior Advisory Board/Board of Directors in accordancewith the Guidelines for the Investment Committee, Rules of the Senior Advisory Board (the “Senior Advisory Board Rules”) and the Rules of the Board of Directors. Furthermore, in the course of making decisions regarding investment
policies and standards, operation and management policies and standards, budget, and financing of each investment corporation, the Investment Committee makes decisions, and a proposal is submitted to the Senior Advisory
Board for approval in accordance with the Senior Advisory Board Rules. If a transaction constitutes a transaction between stakeholders stipulated in the Regulations for Transactions with Stakeholders of the Asset Manager, theCompliance Committee must first adopt resolutions before the Investment Committee makes decisions (excluding transactions that meet certain minor requirements as stipulated in the Regulations for Transactions with
Stakeholders, (“Minor Transactions”)). In addition, if a transaction to be executed involves the acquisition, disposal, or lending of securities or real estate between any investment corporation and a related party of the like of the AssetManager as stipulated in Article 201(1) of the Investment Trust Act (“ITA”), then, subsequent to the Compliance Committee adopting a resolution and the Investment Committee adopting a resolution, each Investment Corporation’s
consent must, by the time the transaction is executed, be obtained based on the approval of the Board of Directors of each Investment Corporation, except in certain cases in which it is determined that the transaction will have aminor impact on each Investment Corporation’s assets.

Overview of each meeting body

2

*2

4

*4

*4

1

Compliance Committee

3

Senior Advisory Board

2

Investment Committee

4

Board of Directors of each Investment Corporation

Approval/decision*2*2

Board of Directors of each
Investment Corporation*3*2

Board of Directors*3

3

Senior Advisory Board

1

Investment Committee*2Compliance Committee

Asset management section (Proposal)*1

Consent of each
investment
corporation*1 For matters relating to the acquisition, disposal or operation and management of assets, and the like of assets in which a single transaction is in an amount of less than JPY
8 billion, the Investment Committee’s approval is obtained.
*2 With regard to investment policies and standards; operation and management policies and standards; budget; financing; and the acquisition, disposal, and the like ofassets for which a single transaction is in an amount of not less than JPY 8 billion and less than JPY 60 billion, approval of the Investment Committee and of the Senior
Advisory Board is obtained. In addition, with regard to the acquisition, disposal, and the like of assets for which a single transaction is in an amount of not less than JPY 60
billion, approval of the Board of Directors is obtained.
*3 For matters relating to transactions with stakeholders, in addition to the procedures stipulated in *1 and *2 above, approval is obtained from the Compliance Committee.
However, if the transaction constitutes a Minor Transaction, approval of the Compliance Committee is not required.
*4 For matters relating to transactions with related parties or the like as defined in Article 201-2(1) of the ITA, in addition, approval of the Board of Directors of each Investment
Corporation and the consent of each Investment Corporation based on such approval is obtained. However, if a transaction is determined to be a transaction that will havea minor impact on each Investment Corporation’s assets under the Ordinance for Enforcement of the ITA, approval of the Board of Directors of each Investment
Corporation and consent of each Investment Corporation based on such approval is not required.

Object：Approval body for transactions withstakeholders that makes resolutions and reports on
matters relating to internal compliance and its
systems as an advisory body to the Board of
Directors
Chair：Head of Compliance & Risk Management
OfficeMembers：President & CEO, Division Heads, external
expert(s), and person(s) nominated by the Chair

Object：To deliberate and make resolutions andreports on overall risks in investing and investment
management policies, budgets, funding,acquisition/disposal/investment management ofassets, and investment effects, etc.
Chair：President & CEO
Members：Full-time Directors, Executive Officer
controlling the Division in charge of fund asset
management, Head of Compliance & Risk
Management Office, external real estateappraiser(s), and person(s) nominated by the Chair

Object：To make resolutions and reports on mattersrelating to the operation of the asset managementbusiness and real estate investment corporations,investment management business, investment
advisory/agency and other businesses based oninvestment advisory agreements, and the Company
Chair：President & CEO
Members：Directors nominated by the Board of
Directors

Object：To make resolutions and reports on
matters set forth in the Act on Investment Trusts
and Investment Corporations and mattersprescribed in the Investment Corporation Rules
Chair：Executive Officer
Members：Supervisory Directors

Governance

Top Commitment

Compliance

Basic Information

Key Issues and Initiatives

Environment

Corporate GovernanceCompliance Basic Policy

We define compliance not only as compliance with laws and regulations, but also as voluntary
efforts to adapt to broader social expectations behind laws and regulations, and has established
a compliance system with the intention of conducting sincere and fair corporate activities andensuring sound management based on self-discipline.

Compliance System and Its Practices

In accordance with the Compliance Rules, we have established the Compliance Committee andthe Compliance & Risk Management Office to develop a company-wide cross-sectional
compliance system.

Role of the Board of Directors in Compliance

The Board of Directors decides on the basic matters related to the promotion of company-wide
compliance, and receives reports on the status of compliance promotion.

Compliance Committee

The Compliance Committee, chaired by the Head of the Compliance & Risk Management Office,
who is also an executive officer, is comprised of senior management and outside attorneys, andmeets once every three months in principle.

Compliance Training

In addition to mandatory compliance training at the time of joining the Company, we conduct
compliance training for all executives and employees including seconded employees, contract
employees and temporary staff, four times a year.
Compliance training

Sustainability Strategy（times）

2020/3４2021/3４2022/3４2023/3４

SocialData

GovernanceCompliance

Anti-Corruption

JI

41
Risk Management

Whistle-Blowing and Reporting

We have established an internal inquiry counter for all executives and employees as well as ourbusiness partners in order to receive consultations and reports regarding violations of laws andregulations, information management violations, various types of harassment, human rights, andthe working environment. In addition, we have designated the internal inquiry counter of KKR & Co.
Inc., and an external law firm as an external point of contact for these matters, for consultation andreporting, and have secured a route for external consultation and reporting. When the internalinquiry counter receives a whistle-blowing report, the Head of the Compliance & Risk Management
Office assumes responsibility and the Compliance & Risk Management Office investigates the facts.
All contact points are available at any time, and anonymous reporting is allowed. For the protectionof whistle-blowers, consideration must be given to preventing disadvantageous treatment inaccordance with the Whistleblower Protection Act and our Whistle-Blowing Rules.
If, as a result of the investigation, corrective measures and measures to prevent recurrence areneeded, appropriate action will be taken. Also, at the end of the investigation, we share with thewhistle-blower the conclusion as to
Statutory Auditor
Discoverer
by email, verbally,
whether the reported event is regarded asin writing etc.
Internal Audit Office
Whistle-blower
a fact or not and the details of theCompliance & Risk
necessary corrective measures, as well as
Management Office
External
Consultation
investigation
notifying the whistle-blower of theServiceprogress of the investigation as necessary
Report
KKR's internal contact
during its course.
External contact point
Head of Department/Officeand external law firmCompliance Reporting Desk for Business Partners

We accept consultations and reports concerning violations of laws and regulations,information management violations, various types of harassment, human rights, and theworking environment in our business.
For the Compliance Reporting Desk for Business Partners, please click here.

Responding to Compliance Violations

For the purpose of accurate and fair treatment in the event of finding an act or a possibility ofviolation of laws and regulations and the Articles of Incorporation, etc. or for preventing
occurrence of such an act, the Administrative Incident Handling Rules set forth specific actions.
For more information on Compliance, please click here.

Please refer to the page 46 for further details on Compliance.

Governance

Top Commitment

Basic Information

Compliance／Anti-Corruption and Bribery Prevention
Conflicts of Interest

The Company has implemented a management system as described below to ensure that conflicts of interest
do not arise from the management of assets at JMF and IIF and the discretionary investment and investment
advisory business such as private real estate fund management.

1

Separation of asset management divisions and support structure

We have established the Metropolitan Division and the Industrial Division as divisions that are engaged in asset
management of JMF and IIF, respectively, and the Private Solutions Division as the division that is engaged insupervising businesses, including the discretionary investment and the investment advisory business for private realestate funds or similar, thereby clarifying asset management responsibilities.

2

Securing of independence in investment decision-making

Decisions made on asset management of each investment corporation are examined solely from the perspective ofwhether or not such decisions are appropriate as decisions made by the Metropolitan Division, the Industrial Division,or the Private Solutions Division, without taking into consideration the situation of other investment corporations.

3

Rules on preferential investigation rights pertaining to investment information

With regard to information on sales of real estate obtained by the Company, we have established rules concerning

determinations as to which division, the Metropolitan Division, the Industrial Division, or the Private Solutions
Division, should conduct investigations in preference to the other divisions.

Establishment of a system to eliminate antisocial forces

To preempt violence from antisocial forces, clarify how we will respond as an organization and ensure that
we will never have any relations or dealings with antisocial forces and use them, we also provide the “Basic
Rules around How to Deal with Antisocial Forces” which stipulates that we will take a resolute attitude as anorganization to antisocial forces, including coordinating with external specialized institutions, as our basic
principle. Each division of the Asset Manager is expected to confirm in advance that counterparts totransactions, etc. are not considered as antisocial forces, to report any questionable acts or behaviors when
they are expected directly or indirectly to the Head of the Compliance & Risk Management Office and thePresident, and review social risks thoroughly to make a decision of whether the transaction can go ahead ornot, in accordance with the Basic Rules as per their respective operations manuals for each division that areprovided separately.

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialCorporate Governance

GovernanceComplianceJ

Data
Anti-Corruption

I

42
Risk Management

Anti-Corruption and Bribery Prevention
In line with our mission to "always create new values, for people, the community and the world," we established
one of our core values as "we act proactively and professionally and adhere to the highest standards ofcompliance and discipline". Recognizing that we have a social responsibility to prevent corruption and bribery,
we have established the "Anti-Corruption and Bribery Prevention Policy" to prohibit corruption and bribery.
We signed up to the Call to Action From Business to Government invited on the 20th anniversary of the adoption
For details on the Call to Action, please click here.
of the United Nations Convention against Corruption (UNCAC).

Basic Policy

We have established the Code of Ethics, consisting of the Charter of Corporate Ethics and the Code of Conduct
for Officers and Employees, for the purpose of ensuring sound management based on high ethical standards,
gaining unwavering trust from society, and contributing to the development of society, as an entity which
engages in investment management and investment advisory businesses. We endeavor to ensure that all theofficers and employees, including the management, comply with all laws and rules related to the business intheir activities, practice honest and fair corporate activities on a daily basis, do not tolerate corruption andbribery not only in the public sector but also in the relation with the private sector, and strive so that wewould be widely recognized as a company with a high standard of corporate ethics.
For the full text of the Anti-Corruption and Bribery Prevention Policy, please click here.

In addition, the Compliance Manual and the Regulations Concerning Entertainment, and Internal Meetings
set forth, and the general policy is not to receive any entertainment or gifts. In principle, when receiving gifts
or entertainment from business partners, it is necessary to obtain prior approval. The implementation statusof the procedures is monitored by the Compliance & Risk Management Office and reported to the Compliance
Committee once every six months.
We signed up to the UN Global Compact (UNGC) in 2016, and endeavors to strengthen corporate governanceagainst corruption through supporting the UNGC’s ten principles.
Total amount of political donations（yen）

Number of improper conduct/corruption-related cases exposed （times）
Number of improper conduct/corruption-related cases that（times）
resulted in punishment/dismissal
Improper conduct/corruption-related fines, penalties, and settlement costs （yen）

2020/32021/32022/32023/3

０

０

０

０

０
０
０

０
０
０

０
０
０

０
０
０

Governance

Basic Information

Top Commitment

Risk Management

Sustainability Strategy

Key Issues and Initiatives

Environment

Corporate GovernanceSocialGovernanceCompliance

Data
Anti-Corruption

J
I

43
Risk Management

The Company has established "Risk Management Rules" to ensure sound management through appropriate management and operation of risks.

Structure on Risk Management

We believe that implementing risk management will ensure the continuity andstable development of our business. Being fully aware of our public mission
and social responsibility in conducting asset management, we carry out
necessary risk management, and we also conduct necessary risk managementof the investment corporations to strive to protect investors and operate theinvestment management business appropriately. We conduct sound andappropriate business management, based on our management policy andstrategic goals. With regard to the risks arising as part of that management, wehave established an income and risk management system in line with the
management policies of each of the investment corporations and based on thestrategic goals, and we manage the system so that risk is appropriately
controlled.
Risk Management
Committee
Standing members

Head of Compliance & Risk
Management Office(Chairman), President, Head ofeach Division, Head of
Strategic Planning Office

Board of Directors
ReportPutting
togetheropinions

President & CEO,
Chief Officer for Risk
Management

Secretariat

Compliance & Risk
Management Office

Making Decision

ReportAudit the adequacy and effectivenessof the risk management

Internal Audit OfficeInternal Audits

Key Risks
to be Managed-Investment
management risk

-Clerical work risk
-System risk

-Reputation risk
-Conduct risk

Investment
Committee

Section for making proposals

Head of Metropolitan Division,
Industrial Division or Private
Solutions Division
Committee members

President (Chairman), Full-time
Director, Executive Officer
controlling the Division in charge offund asset management, Head ofCompliance & Risk Management
Office, external estate appraisersand other persons nominated by
the chairman
Secretariat

Strategic Planning Office

Risk Management Officer

Compliance & Risk Management Office

Head of each Division and Officer

Monitoring, etc.

For more information on Structure on Risk Management, please click here.

We have has established the Internal Audit Office, which is independent of any department, to conduct
audits once every three years for each department, based on the internal audit plan established for eachfiscal year. We believe that internal audits contribute to the achievement of management goals, not only
by finding and pointing out problems in business operations, including compliance, but also by evaluating
the internal control systems of each department, and proposing methods of improvement, etc.
Details about the implementation of internal audits based on the Internal Audit Rules are specified in thedetailed rules on internal audits. When the audited department receives any instruction or proposal for
improvement through the internal audit, it prepares an improvement response plan, implements the
improvement measures, and reports the results to the Internal Audit Office.

Information Security

The Company has established the Basic Rules on Information Security to ensure the appropriate andrigorous protection of all assets held by the Company.
Basic Policies

１．Appropriately store and manage information assets and effectively prevent information leakage andfalsification.
２．Give due consideration to the handling of confidential information and personal information.
３．When outsourcing business to an external contractor, confirm the contractor's eligibility and security
control measures, etc. for personal information.
４．Implement the same information security management for information assets that have been licensed
for use.

Measures are taken for the following items based on the Basic Policies.

Management system, information assets management, access control, secure use of information infrastructure, andsystems management

Implementation of training to improve IT security awareness such as e-mail attack drills

There is an increased risk of information leakage by "targeted (hoax) e-mail" attacks aimed at organizations suchas corporations and government agencies. Since attack techniques are evolving day by day and the ultimate best
defense to prevent damage is raising awareness and appropriate action of all employees as e-mail recipients, we
implement training, etc. using videos on specific cases or similar means, in addition to regular e-mail attack drills.

Top Commitment

Data

Data

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

J

Data

44
J

J

Environment
GHG emissions
Scope 1 (direct emissions)
Scope 2 (indirect emissions)
Scope 1+2
Scope 3（t-CO2）（t-CO2）（t-CO2）（t-CO2）Category 1（Purchased goods and services）（t-CO2）Category 2（Capital goods）（t-CO2）Category 3（Fuel- and energy-related
activities not included in Scope 1 or 2）（t-CO2）Category 5（Waste generated in operations）（t-CO2）Category 7（Employee commuting）（t-CO2）Category 6（Business travel）（t-CO2）Category 12（End of life treatment of sold products）（t-CO2）Category 13（Downstream leased assets）（t-CO2）Category 15（Investments）

Per unit
Energy consumption
Energy consumption per unit
Fuel consumption (fuel only)
Fuel consumption per unit
Water Use
Water use per unit
Total waste（t-CO2）（t-CO2/㎡）（MWh）（kWh/㎡）（MWh）（kWh/㎡）（thousand㎥）
（㎥/㎡）
（t）

FY2015FY2016FY2017FY2018FY2019*1

FY2020（Base year）

FY2021

FY2022

23,230228,985
252,215－－－

23,767225,272
249,039－－－

23,126
216,142
239,269－－－

20,515202,521223,036
－
－
－

6,238
32,65838,896－－－

5,608
29,88435,492
232,446
16,99830,182

5,135
24,63329,768214,579
17,11023,994

5,542
22,061
27,602
206,297
16,97528,757

－
－
－
－
－
－
0.10
413,471164.17
125,639
49.88
2,605
1.02
42,321

－
－
－
－
－
－
0.10
432,473170.68
126,779
50.03
2,691
1.05
37,580

－
－
－
－
－
－
0.09
423,783
159.24
133,907
50.32
2,615
0.98
30,151

－
－
－
－
－
－
0.09
399,940
163.52
118,587
48.49
2,541
1.04
24,456

－
－
－
－
－
－
0.08
394,471155.75
117,223
46.28
2,621
1.04
29,486

13,0171
3
0
165,53100.09
400,765
133.28130,452
43.38
2,811
0.90
20,737

14,47801
0152,52700.08
386,950132.06
123,172
42.04
2,914
0.99
26,546

14,37401
0139,855
00.08
383,880134.59112,284
39.37
2,681
0.94
27,4802022/22022/82023/22023/8－－－*1 Each figures before FY2019 are simply adding up the values of the former Japan Retail Fund Investment Corporation and the fo rmer MCUBS MidCity Investment Corporation.

－

－

6,716

6,467

2030
（Target）

Data

I

2050
（Target）

SBTi Certified

Reduce by 42％*2
SBTi Certified

Net-zero

6,334*2 Compared to FY2020

Percentage of renewable energy consumption to the entire
portfolio electricity consumption

GovernanceName of Directors
JMF Fiscal Year

Attendance at Officers Meetings（％）

Masahiko Nishida
Executive Director

2023/213 meetings(100%)

2023/812 meetings(100%)

10.9

11.5

Masaharu Usuki*3
Supervisory Director

2023/213 meetings(100%)

2023/812 meetings(100%)

13.1

15.7

Osamu Ito

Supervisory Director

2023/213 meetings(100%)*3 Supervisory Director Masaharu Usuki retired upon expiration of his term of office in November 2023, and Ms. Yoko Shirasu was appointed as a Supervisory Director.

2023/812 meetings(100%)

See JMF website
See JMF website

for GRI Guidelines.

for SASB Index.

Top Commitment

Data

Data

Basic Information

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Data

45

I

J

Environment
GHG emissions
Scope 1 (direct emissions)
Scope 2 (indirect emissions)
Scope 1+2
Scope 3（t-CO2）（t-CO2）（t-CO2）（t-CO2）Category 1（Purchased goods and services）（t-CO2）Category 2（Capital goods）（t-CO2）Category 3（Fuel- and energy-related
activities not included in Scope 1 or 2）（t-CO2）Category 5（Waste generated in operations）（t-CO2）Category 6（Business travel）（t-CO2）Category 7（Employee commuting）（t-CO2）Category 12（End of life treatment of sold products）（t-CO2）Category 13（Downstream leased assets）（t-CO2）Category 15（Investments）

Per unit
Energy consumption
Energy consumption per unit
Fuel/gas consumption
Fuel/gas consumption per unit
Water Use
Water use per unit
Volume of non-hazardous waste
Volume of hazardous waste
Recycling rate

（t-CO2）（t-CO2/㎡）（MWh）（kWh/㎡）（MWh）（kWh/㎡）（thousand㎥）
（㎥/㎡）
（t）
（t）

（%）

*1 Compared to FY2021

Switching to electricity procured from renewable energy in
IIF’s directly managed properties*2（％）*2 Excludes praperties where tenants manage electricity.

GovernanceName of Directors
IIF Fiscal Year

Attendance at Officers Meetings

Kumi Honda

Executive Director

2023/713 meetings(100%)

2024/111 meetings(100％)FY2017FY2018FY2019FY20202021（Base year）

FY2022

588
8,337
8,925
－
－
－

429
6,599
7,028
－
－
－

0
2,694
2,694
－
－
－

0
2,564
2,564
－
－
－

9,133
11,412
20,545
117,711－－25,75816,28242,040140,724
6,707
13,32725,73329
25,762
156,937
7,349
17,307

－
－
－
－
－
－
0.11
138,913194.35
7,633
10.68
363
0.51
2,376
210
－

－
－
－
－
－
－
0.09
125,801
177.46
12,435
17.54
362
0.51
3,505
94
33.2

－
－
－
－
－
－
0.08
139,627
159.02
12,997
14.80
543
0.61
5,827
105
31.6

－
－
－
－
－
－
0.08
146,045157.7912,977
14.02
549
0.59
6,403
104
32.1

－
－
－
－
－
－
0.07
151,381134.05
11,241
9.95
532
0.47
5,422
33
45.2

－
－
－
－
－
－
0.11
190,541147.9465,296
50.70
656
0.51
6,176
163
45.1

14,4391
1
078,80256
0.12
236,215156.70163,548108.50
916
0.61
7,676
293
41.9

13,1941
1
137
72,65554
0.12
152,185102.70161,875
109.20
927
0.63
7,090
329
40.5

2022/１2022/７2023/１2023/７

2015

2016

218
7,588
7,806
－
－
－
－

approx.80%－

approx.86%

Yutaka Usami

Supervisory Director

2023/7

12 meetings(92%)

2024/111 meetings（100％）－

approx.86%－

Koki Ohira

12 meetings
(92%)

－

27,392

I

I

2050（Target）

SBTi Certified

Reduce by 42％*1

Net-zero

46,241approx.90%

Supervisory Director

2023/7－2030（Target）

Data

2024/111 meetings（100％）

Fumito Bansho
Supervisory Director

2023/713 meetings(100%)

2024/111 meetings（100％）

See IIF website

See IIF website

for GRI Guidelines.

for SASB Index.

Top Commitment

Data

Data
SocialFull-time
employees

Total number of employees*1
Total workforce 

（%）

*1

Percentage of women in executire management（％）
Women in managerial posts*1
（%）
Diversity of employees*1

（%）

Men

87
55
2
0
61.8
38.2
－
25.7*34.0*380.5*315.5*3－－89.5*310.5*3
－
－
－
－
－
64.7
100.0
94.0

Women
Men

Women

Women
Under 30 years old

30 to 50 years old

50 years old or older
Men

Number of new hires*2

Percentage of New hires*2

（%）

Employee turnover rate

（%）

Rate of taking childcare leave  （%）
Training attendance rate

Other thanfull-time
employees

2020/3Men*2*1, *4Rate of taking paid leave*1
Health checkup rate*2



（%）
（%）

Women
Men

Women
Men

Women
Men

Women

（%）

Satisfaction survey response rate （%）

2021/3

93
55
2
0
63.3
36.7
－
17.2
4.0
80.0
16.0
16
3
84.2
15.8
9.5
50.0

No eligible employees

90.6
95.9
68.5
100.0
93.0

Results of In-house research*1 Excludes executives and temporary staff *2 Excludes executives, seconded employees, and temporary staff*3 As of December 31, 2020, *4 Excluding internal training by our departments

Employees 162 staff members
Of which,the number ofqualified employees

Real-estate transaction specialists
ARES certified master
First-class architects
Real estate appraisers
CMA*5 Excludes part-time directors, seconded employees, and temporary staff

Compliance

74
96
10
12
4

2022/3

97
55
3
0
64.5
35.5
－
12.1
5.2
74.2
20.6
14
3
82.4
17.6
8.4
0.0
100.0
88.0
87.0
78.3
100.0
94.5

See KJRM website

See KJRM website

Basic Information

2023/3

95
56
5
0
64.1
35.9
12.5
15.2
1.9
74.4
23.7
21
4
84.0
16.0
10.7
16.7
100.0
98.9
97.8
79.4
100.0

Not implemented

for GRI Guidelines.
for SASB Index.

LawyerCPA
Tax accountants
MBA
CFA Certified Securities Analyst

1
7
3
1
1

*6 As of December 31, 2023

（times）
Compliance trainingTotal amount of political donations（yen）
Number of improper conduct/corruption-related cases exposed
（times）
Number of improper conduct/corruption-related cases that resulted in punishment/dismissal （times）
Improper conduct/corruption-related fines, penalties, and settlement costs （yen）

2020/3400
002021/3400
002022/3400
002023/340
0
00

Sustainability Strategy

Key Issues and Initiatives

Environment

SocialGovernance

Data

J
I

46
Data

Contribution to Industry Organizations, etc.

We actively participate in sustainability-related committees of various associations and organizations tokeep abreast of the latest trends. The organizations, etc. we have joined are as follows.
・The Investment Trust Association
・Asia Pacific Real Assets Association Limited (APREA)
・The Association for Real Estate Securitization (ARES)

etc.

Editorial Policy

KJR Management and Japan Metropolitan Fund Investment Corporation and Industrial &Infrastructure Fund Investment Corporation under management are actively engaged inpractices that promote sustainability within the J-REIT industry, information on which they
disclose to stakeholders. For this term, information pertaining to sustainability published on thewebsites of each management company and investment corporations has been consolidated inthis document, Sustainability Report 2024 in order to provide a clear explanation of ourinitiatives. Sustainability Report 2024 serves as an informative tool for stakeholders with a highlevel of interest in sustainability and therefore makes reference to GRI standards and SASB
standards (real estate). Going forward, we hope to gather opinions from those who read thisreport in order to further improve subsequent reports. In addition, we hope that this report canbe used as an effective means to maintain a dialogue with our stakeholders.

Month of issuance: March 2024 (Issue annually)
Reporting Coverage
In principle, Japan Metropolitan Fund Investment Corporation, Industrial & Infrastructure Fund Investment
Corporation and KJR Management
Frequency of updates: Once annually
The GRI Guidelines

Contact Informationand SASB Index

Reference guidelines: GRI standards

SASB standards (real estate)

will be posted at the end of March 2024 on website.

Tel: +81-3-5293-7000 (main)

E-mail: contact-us@kjrm.co.jp

Disclaimer• This document may contain information such as statements on future performance, plans, management targets, and strategies. Such statements with regard to the future arebased on current hypotheses and assumptions about future events and trends of the business environment. However, these hypotheses and assumptions are not necessarily

correct. Actual results may vary significantly due to various factors.

• Unless otherwise specified, this document was created based on Japanese generally accepted accounting principles.

• Japan Metropolitan Fund Investment Corporation (JMF), Industrial & Infrastructure Fund Investment Corporation (IIF), and KJR Management (KJRM) shall not be liable for any
errors, inaccuracies, loss or damage, or for any actions taken in reliance thereon, or undertake any obligation to publicly update the information contained in this document
after the publication date thereof.

Asset Management Company: KJR Management

Building Lots and Buildings Transaction Business License: Governor of Tokyo (5) No. 79372

Discretionary Transaction Agent License: Minister of Land, Infrastructure, Transport and Tourism, Certification No.58
Financial Instruments Business Operators: Kanto Local Finance Bureau(FIBO) No.403
Member of The Investment Trusts Association, Japan
Member of Japan Investment Advisers Association

Member of Type II Financial Instruments Firms Association

Tokyo Building
7-3, Marunouchi 2-chome, Chiyoda-ku
Tokyo 100-6420, Japan
https://www.kjrm.co.jp/english/