PRINCIPAL ADVERSE IMPACT STATEMENT
The following is the adverse sustainability impact statement of Mitsui Fudosan Logistics
Park Inc. (“MFL”) pursuant to Regulation (EU) 2019/2088 (“SFDR”). We have noemployees in accordance with the prohibition on having employees under the Act on
Investment Trusts and Investment Corporations of Mitsui Fudosan Logistics REITManagement Co., Ltd, (the “Asset Management Company”), to manage and operate theproperties in our portfolio. MFL and the Asset Management Company are hereinafterreferred to collectively as “we”, “us” or “our”.
1. Summary
We consider principal adverse impacts of our investment decisions on sustainability factors.
The present statement is our consolidated statement of the principal adverse impacts onsustainability factors (“PAI”). The statement covers the reference period from August 1, 2021
to January 31, 2022. The statement will be reviewed at least once during every year.
Mitsui Fudosan Co., Ltd. and its subsidiaries and affiliates (collectively, the “Group”), towhich we belong, is committed to social and economic development as well as global
environmental preservation under the principles of harmony and coexistence, while working
to link diverse values and achieve sustainable society as represented by its “ ” corporate
logo. Under the Group’s “” principle, the Group recognizes the need to createneighborhoods that remain in tune with global environmental concerns. This principle
therefore reflects the Group’s aim to establish a society that enriches both the people and theplanet. Pursuant to the Group’s long-term management vision, VISION 2025, the Group is
working to achieve sustainable society by addressing environmental, social and governance,or ESG, issues while driving continual profit growth. MFL and the Asset Management
Company share the Group’s ESG management principles and are proactively implementing
ESG initiatives.
We use the definition of PAI as described in Recital 20 of SFDR being “those impacts ofinvestment decisions and advice that result in negative effects on sustainability factors”, withsustainability factors referring to environmental, social and employee matters, respect forhuman rights, anti‐corruption and anti‐bribery matters as defined in article 2 (24) of SFDR.
We believe that investment decisions that negatively affect climate or other environmentrelated resources, or have negative implications for society, can have a significant impact torisk and value creation for our unitholders. To this end, we consider PAI of our investment
decisions throughout all major steps of the investment decision and property management
process throughout the lifecycle of the properties in our portfolio.
Please note that SFDR requirements, including the scope of their application to issuersoutside the European Economic Area, continue to evolve. We are therefore taking a
principles-based approach to compliance with the SFDR disclosure standards, which are
subject to change.
2. Description of principal adverse sustainability impacts
Nearly all types of economic activity have the potential to impact various PAI indicators,
both positively and adversely. We aim to manage the risk connected to PAI from ourinvestment decisions in several ways, including general screening criteria, due diligence andTK-831600

our ESG initiatives. Some of the PAI indicators listed below are currently already being
monitored and reported. As the availability of data improves, it is our intention that moreindicators will be added.
Table 1
Principal adverse sustainability impacts statement
We do not invest in investee companies, but invest in real estate. As adverse sustainability
indicators 1-16 as contained in the Regulatory Technical Standard pertain to investee
companies, these are not included in this PAI statement, which pertains to real estate
investments.
Indicators applicable to investments in real estate assets
Adversesustainability
indicator

MetricImpact in 2021
(From
January 1,
2021 toDecember 31,
2021)

Impact in 2020
(From
January 1,
2020 toDecember 31,
2020)

Explanation

Actionstaken

Fossilfuels

17.
Exposure
to fossil
fuels
through
real estate
assetsShare ofinvestments
in realestate assets
involved intheextraction,
storage,transport or
manufactur
e of fossil
fuels

N/A

N/A

We do notinvest in realestate assets
involved in
the extraction,
storage,transport or
manufactureof fossil fuels.

N/A

Energyefficiency18.
Exposure
toenergyinefficien
t realestateassetsShare ofinvestments
in energyinefficient
real estate
assets

As ofDecember 31,
2021, 10.3% of
our properties,
includingproperties inwhich we holdquasi coownershipinterests, werenot “Green
Buildings” (asdefined to theright) based ongross floor area
(we countproperties with
expiredcertifications
unless there isreason tobelieve thatsuch properties

As ofDecember 31,
2020, 19.9% of
our properties,
includingproperties inwhich we holdquasi coownershipinterests, werenot “Green
Buildings” (asdefined to theright) based ongross floor area
(we countproperties with
expiredcertifications
unless there isreason tobelieve thatsuch properties

To track theenvironmenta
l performanceof ourproperties, werely oncertifications
issued bythird-party
organizations,such as theDevelopment
Bank ofJapan’s(“DBJ”)Green
Building
Certification,
Building
Energyefficiency
Labeling
SystemWe
implement as
appropriate
measures toreduce theirenvironmenta
l impact
followingacquisition,
including by
obtaining
environmentalcertifications
such as DBJ
or CASBEE.
After
receiving 5stars from
BELS forYokohama
Daikoku
Building, we

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are no longer
environmentall
y friendly to thesame degree as
GreenBuildings).

are no longer
environmentall
y friendly to thesame degree as
GreenBuildings).

(“BELS”)
certification,and otherequivalentcertifications.
We call our
property thatreceives any
suchcertificationsa “Green
Buildings”.
With respect
to DBJ
certifications,
we consider aproperty tohave
sufficientenvironmenta
l certification
if it received
3 stars or
higher out of
DBJ’s 5-starrankingsystem. With
respect to
BELS, weconsider aproperty tohave
sufficientenvironmenta
l certification
if it received
4 stars or
higher out of
BELS’ 5-starrankingsystem.

installed LED
lighting on
the property,
which
resulted in
ZEB Readystatus. We are
steadilyworking
towardacquiring
DBJ/BELS
certifications
so that 95%
of ourlogistics
properties
will becertified.

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

MetricIndicators applicable to investments in real estate assets
Climate change

18. GHG emissions
Scope 1 GHG emissions generated by real estate assets were 64.28
t-CO2 (in FY2019) and 68.49 t-CO2 (in FY2020).

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Scope 1 GHG
emissions generated
by real estate assets

Scope 2 GHG emissions generated by real estate assets were 2,534
t-CO2 (in FY2019) and 3,204 t-CO2 (in FY2020).
Scope 3 GHG emissions generated by real estate assets were
13,485 t-CO2 (in FY2019) and 17,962 t-CO2 (in FY2020).
Total GHG emissions generated by real estate assets were 16,083
t-CO2 (in FY2019) and 21,234 t-CO2 (in FY2020).
We aim to reduce GHG emissions by 30% between FY2016 andFY2030.
We have also increased use of renewable energy throughinstallation of solar panels. The amount of electricity generated by
the solar panels installed at our properties (12 properties) was 18.9
GWh in FY2021.
Waste

20. Waste production in operations
The total weight of waste emissions generated from our portfolio
was 11,282 t (in FY2019) and 11,899 t (in FY2020).
To make effective use of limited water resources, we promote
efforts to save water and have introduced water-saving equipmentat our properties (4 properties). We also contribute to theestablishment of a recycling-oriented society with 3R (reduce,reuse and recycle) efforts to curb the use of wastewater and wastematerials discharged from buildings. We are working with tenants
to raise awareness of our 3R and water conservation efforts bydisplaying posters in buildings (11 properties with such posters). 4
of our properties are equipped with facilities to reuse well water,
and we are working to reduce the amount consumed from water
sources.

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

Share of real estate
assets not equippedwith facilities for
waste sorting and notcovered by a waste
recovery or
recycling contract
All of our properties
have been equippedwith facilities for
waste sorting and arecovered by a waste
recovery or
recycling contract.

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

MetricIndicators applicable to investments to the Asset Management Company or tenantsSocial andemployeematters

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

Share of investments ininvestee companies
without any suppliercode of conduct (against
unsafe working
conditions, precarious
work, child labor andforced labor)

The Asset Management
Company has a suppliercode of conduct.
5. Lack of grievance/complaints handling mechanism related
to employee matters
In cooperation with the Group and tenants, we conduct atenant satisfaction survey once every 3 years in order togather feedback, which is used to ensure that our properties
provide comfortable, safe and secure space for tenants andother facility users.

6. Insufficient whistleblower protection
The Asset Management Company has established internal andexternal contact points for consultation based on its internal
consultation and whistleblowing regulations. The systemenables officers and employees to anonymously reportorganizational or individual behavior that violates applicablelaws and regulations (behavior that violates or is suspected ofviolating laws, corporate ethics, and internal rules such as thecompliance manual) to the Chief Compliance Officer (or for
matters concerning the Chief Compliance Officer, thePresident) or outside counsel. These regulations are designed
to help ensure compliance with applicable laws andregulations. We are required to determine and execute
appropriate measures for reported matters, andwhistleblowers are protected by the Whistleblower Protection
Act of Japan.
7. Incidents of discrimination
The Asset Management Company prohibits discrimination or
unfair treatment based on nationality, social status, race,
belief, gender, age, disability, sexual orientation, gender
identity, education, marriage status, employment type or any
other reason not related to business. In addition, no
harassment in any form is allowed in the workplace.
The Asset Management Company holds regular training on
harassment and discrimination for employees.

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

Share of investments inentities without policies
on the protection ofwhistleblowers
All of the AssetManagement Company’s
officers and employees
are provided
whistleblower
protection.

1. Number of incidents
of discrimination
reported in investee
companies expressed asa weighted average
No discrimination has
been reported by any of
the Asset Management
Company’s officers or
employees.
2. Number of incidents
of discrimination leading
to sanctions in investee
companies expressed asa weighted average
No discrimination has
been reported by any of

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the Asset Management
Company’s officers or
employees.

Human Rights

9. Lack of a human rights policy
We and the Asset Management Company have adopted thesustainable procurement standards and human rights policy
established by Mitsui Fudosan Co., Ltd, our sponsor (the“Sponsor”). In addition, we and the Asset Management
Company support the Universal Declaration of Human Rights
and the International Covenant on Human Rights, and supportand respect the fundamental rights related to labor set forth in
the ILO Declaration on Fundamental Principles and Rights at
Work.
14. Number of identified cases of severe human rights issues
and incidents
The Asset Management Company’s Sustainable Procurement
Policy incorporates respect for human rights into the selectionand evaluation standards used to choose services and business
partners in the portfolio value chain.
There was no serious violation of labor-related laws or
regulations during the period from January 1, 2021 to
December 31, 2021.

Anti-corruption
and anti-bribery

15. Lack of anti-corruption and anti-bribery policies
We and the Asset Management Company have established
the Compliance Manual to prohibit entertaining or giving
gifts to business partners or related parties in excess ofmoderation, entertaining or giving gifts for the purpose of
influencing the judgment of the other party, and entertainingor giving gifts to public officers or employees.
The Compliance Manual also prohibits receiving
entertainment or gifts exceeding moderation within thecompany or from business partners or related parties, or
accepting, requesting or promising bribes (entertainment or
gifts that exceed moderation) to business partners or relatedparties, or making special arrangements based on theforegoing.
17. Number of convictions and amount of fines for violationof anti-corruption and anti-bribery laws
We and the Asset Management Company have established
the Compliance Manual to prohibit entertaining or giving
gifts to business partners or related parties in excess ofmoderation, entertaining or giving gifts for the purpose of
influencing the judgment of the other party, and entertainingor giving gifts to public officers or employees.

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Share of investments inentities without a humanrights policy
The Asset Management
Company has a humanrights policy.

Number of cases ofsevere human rights
issues and incidents
connected to investee
companies on aweighted average basis
No severe human rights
issue or incident has
occurred at the AssetManagement Company.
Share of investments inentities without policies
on anti-corruption andanti- bribery consistent
with the United Nations
Convention against
Corruption
The Asset Management
Company hascompliance policies
addressing anticorruption and antibribery that apply to allof its officers andemployees.
Numbers of convictions
and amount of fines forviolations of anticorruption and antibribery laws by investee
companies
Neither the AssetManagement Company
nor, to the best of ourknowledge, tenants haveThe Compliance Manual also prohibits receiving
entertainment or gifts exceeding moderation within thecompany or from business partners or related parties, or
accepting, requesting or promising bribes (entertainment or
gifts that exceed moderation) to business partners or relatedparties, or making special arrangements based on theforegoing.
There were no serious violations of applicable laws or
regulations or fines, surcharges or settlements from January 1,
2021 to December 31, 2021 for violation of anti-corruption
and anti-bribery laws.
No employees were disciplined or dismissed for violation ofanti-corruption and anti-bribery laws from January 1, 2021 to
December 31, 2021.

been subject to any
convictions or fines forviolations of anticorruption or antibribery laws.
None of the AssetManagement Company
or its officers andemployees have been
convicted or fined forviolations of anticorruption or antibribery laws.

For descriptions of actions which MFL takes and will take with respect to the PAI indicators,
please refer to our ESG website with respect to MFL: https://www.mflpr.co.jp/en/sustainability/index.html
3. Description of policies to identify and prioritize principal adverse sustainability
impacts
Subject to data availability, we monitor the selected PAI indicators for the existing properties
in our portfolio.
Prior to our investment in a property, we conduct due diligence review of the property,
including ESG due diligence, which includes selected PAI indicators. The due diligence
findings related to selected PAI indicators are taken into consideration as one of the factors inmaking a comprehensive investment decision.
In January 2021, we strengthened our funding base through the establishment of a
Sustainable Finance Framework, which allows us to expand our investor base to include
those interested in ESG investment and financing and further promote our sustainability.
To track the environmental performance of our properties, we rely on “Green Buildings”
certifications. With respect to DBJ certifications, we consider a property to have sufficientenvironmental certification if it received 3 stars or higher out of DBJ’s 5-star ranking system.
With respect to Comprehensive Assessment System for Built Environment Efficiency(“CASBEE”) certification, we consider a property to have sufficient environmental
certification if it received an A Rank or higher out of the CASBEE ranking system featuring
Rank S (excellent), Rank A (very good), Rank B+ (good), Rank B- (slightly inferior) and
Rank C (inferior). With respect to BELS certification, we consider a property to havesufficient environmental certification if it received a 4 stars or higher out of BELS’ 5-starranking system. With respect to Zero Energy Building (“ZEB”) certification, we consider aproperty to have sufficient environmental certification if it received ZEB Ready or higher outof the ZEB ranking system featuring ZEB, Nearly ZEB, ZEB Ready, and ZEB Oriented. ZEB
Ready is awarded to buildings that achieve primary energy reduction of 50% or higher. As of
February 2, 2022, 92.5% of our properties were Green Buildings and 54.1% of our properties, including
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properties in which we hold quasi co-ownership interests, had obtained ZEB based on grossfloor area (including properties with expired certifications unless there is reason to believethat such properties are no longer environmentally friendly to the same degree as Green
Buildings).
Under our Sustainable Finance Framework, a property that has received or is expected toreceive any of the following certifications from a third-party certification program is an“Eligible Green Asset”:
1) DBJ Green Building Certification: 3 stars or higher (top 3 certification levels)
2) BELS Certification: 3 or more (top 3 certification levels)
3) CASBEE Appraisal: B+ or higher (top 3 certification levels)
4) LEED Certification: Silver, Gold or Platinum (top 3 certification levels)
5) Top 3 certification levels from any other third-party certification program
When conducting due diligence review of a property, we also consider the property’s social
value. Under our Sustainable Finance Framework, any new or existing property that meets 2
or more of the following criteria is an “Eligible Sustainable Asset”:•

Urban development: The land contributes to urban development (machi-zukuri) of thesurrounding area such as by providing recreational green space that meets the needsof the local community;•

Access to essential services for daily life: (i) real estate with adequate
countermeasures to disasters, for example, based on its use as an evacuation center, or
has emergency supplies for local residents; or (ii) real estate that contributes to the
local community, for example, based on its use as an authorized nursery center; and•Socio-economic improvement and empowerment: Contributions to local communityand economy such as through tenants’ job creation and use of local companies inconstruction projects.

For further information, please refer to our ESG website: https://www.mflpr.co.jp/en/sustainability/index.html
4. Engagement policies
Due diligence and screening
The Asset Management Company’s investment decision-making process involves assessmentof material ESG-related risks and opportunities to ensure that our sustainable investment
strategy is implemented. With each acquisition opportunity, we and the Asset Management
Company review ESG-related due diligence findings and take into account the acquisition ofenvironmental certifications or future potential to obtain them and energy efficiency
assessment. These findings are required to be considered by the Management Committee
chaired by the President of the Asset Management Company before a final decision is madeon the investment. We will not invest in properties which have environmental hazardous
substances or land pollution beyond an established threshold.
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We monitor energy consumption, electricity consumption, water consumption, waste as well
as CO2 emissions, the data with respect to which are reviewed by outside experts on a regularbasis to reduce our environmental burden. We also conduct a tenant satisfaction survey once
every 3 years to gather feedback used to ensure that our properties provide comfortable, safe
and secure space for tenants and other facility users.
Engagement
We have standardized environmental provisions, which we refer to as “Green Lease”
provisions, in the leases with our tenants. Our Green Lease provisions include a clause forour tenants to collaborate with us to implement measures for energy conservation andenvironmental preservation. Our Green Lease provisions require the tenant to provide us withdata on the use of the property (including, but not limited to, data on electricity, gas, andwater used in the property). We strive to proactively increase the number of lease agreementswith Green Lease provisions by negotiating with new tenants or, at the time of lease renewal,
existing tenants.
In the procurement of goods and services for our businesses, we require vendors in our
supply chain not only to efficiently deliver to us goods and services, but also to consider theirimpact on the environment and society. When purchasing goods or services and/or selecting a
vendor, we consider their impact on sustainability and the vendor’s sustainability initiatives
before making decisions on whether to make the purchase or enter into a relationship with thevendor.
5. References to international standards
The Sponsor has joined the United Nations Global Compact, endorsed the Task Force on
Climate-related Financial Disclosure, and signed RE100. We and the Asset Management
Company share the same ESG principles expressed through these international standards andhave endorsed the recommendations of the Task Force on Climate-related Financial
Disclosures (“TCFD”) since January 2022, which works to promote disclosure of risks andopportunities faced by companies in relation to climate change. And the Asset Management
Company is also active in the TCFD Consortium, which brings together Japanese companies
who have endorsed the TCFD recommendations.

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