Issued: June 2024
(April 1, 2023 〜 March 31, 2024)

Table of Contents
Editorial Policy

Table of Contents
Introduction

Message from Management

4

Profile & History

4

Reporting scope

Policy & Strategy

5- Invincible Investment Corporation (“INV”)

Asset Manager

6- Consonant Investment Management Co., Ltd. (“CIM”)
This also includes the initiatives of MyStays Hotel Management Co., Ltd. ("MHM"), which is

Sustainability Policy andPromotion Structure

Sustainability Policy

8

Promotion Structure of Sustainability / Sustainable Procurement
Policy9Initiatives for Environment

Environmental Targets

11

100% of the issued shares of the Asset Management Company and is the sponsor of INV,

Environmental Management System (EMS)

13

and its affiliates, as well as other operators that operate hotels owned by INV.

Environmental Performance

14

Initiatives for Green Buildings / Green Lease /Distribution of Sustainability Guides for Tenants

16

Green Finance16

Initiatives to Address Climate Our Awareness of Climate Change / Support for the TCFD
Recommendations / Governance
ChangeInitiatives for Society

Initiatives by Hotel Operator

Initiatives for Governance

Third Party Assessment /ESG Data

Third-Party Guarantee/ Disclaimer

the main operator of hotels owned by INV and is owned by funds managed by Fortress
Investment Group LLC ("FIG"), a subsidiary of the parent company which indirectly holds

Period covered by the report
This report is based on the 2023 fiscal year (from April 1, 2023 to March 31, 2024) but also
includes initiatives implemented in other periods.

18

Guidelines used as reference

Strategy

19

Risk Management / Metrics and Targets

22

Providing Facilities as Countermeasures against COVID-19
Infections / Contribution to Disaster Prevention / Initiatives for
Tenants

24

Asset Management Company Initiatives for Employees

25

Environment

28

Society

30

Compliance Initiatives and System

32

About Directors / Appropriate Management of Conflicts ofInterest / Anti-Corruption Initiatives

33

Measures against Anti-Social Forces / Initiatives Relating to AntiMoney Laundering and Countering the Financing of Terrorism /Establishment of Whistleblower System

34

GRESB Real Estate Assessment / CASBEE Certification for
Buildings and Certification for CASBEE for Real Estate

36

BELS Certification

37

JCR Green Finance Framework Evaluation / The List of Certified
Properties

38

Consonant Investment Management Co., Ltd.

GRI Standards Content Index

39

Roppongi Hills Mori Tower 41F, 6-10-1 Roppongi, Minato-ku, Tokyo, Japan

Third-Party Guarantee

42Tel. +81-3-5411-2731

Disclaimer

43

URL︓https://www.invincible-inv.co.jp/en/profile/amcompany.html

Invincible Investment Corporation | ESG Report- GRI (Global Reporting Initiative) Standard

Inquiries about this report2

Introduction

Invincible Investment Corporation | ESG Report3Message from Management

Profile & History

Invincible Investment Corporation ("INV"), makes focused investments in hotels andProfileresidential properties as Core Assets, and manages its assets from a medium to longterm perspective, aiming to achieve steady growth and secure stable income.
INV and Consonant Investment Management Co., Ltd. ("CIM"), the asset manager of
INV, recognize the importance of environmental, social, and governance (ESG)
considerations in real estate investment management from the perspective ofsustainability, such as contributing to economic and social development and to global
environmental conservation, and regard improving sustainability as one of its key
management priorities.
We believe that the incorporation of ESG considerations into the real estate

Name

Invincible Investment Corporation

Representative

Naoki Fukuda, Executive Director

Address

Roppongi Hills Mori Tower 41F, 6-10-1 Roppongi,
Minato-ku, Tokyo, Japan

Contact

Consonant Investment Management Co., Ltd.
Tel. +81-3-5411-2731

investment management business, which is our primary business, is essential tomaximizing unitholder value over the medium to long term and contributes tomaximizing INV's investment returns.
To this end, we established a sustainability policy in 2020 which specifies our basic

History

policy for sustainability initiatives and developed an internal system at CIM toJan. 08, 2002

Notification relating to establishment of TGR Investment
Inc.(now Invincible Investment Corporation) (hereinafter"TGR") under Article 69 of the Law Concerning Investment
Trusts and Investment Corporations (hereinafter "theLaw") by the incorporator, Tokyo REIT Co., Ltd.

Jan. 18, 2002

Registration of establishment under Article 166 of the Law.
Establishment of TGR

Feb. 05, 2002

Application of registration under Article 188 of the Law

Feb. 26, 2002

Registration under Article 187 of the Law by the Prime
Minister of Japan(Registration No. 15, filed with the Director of the Kanto
Local Finance Bureau)

May 17, 2004

Listing on the J-REIT market of the Osaka Securities
Exchange

Aug. 01, 2006

Listing on the J-REIT market of the Tokyo Stock Exchange

Oct. 06, 2007

Delisting from the J-REIT market of the Osaka Securities
Exchange

Feb. 01, 2010

Merger with LCP Investment Corporation
Changing the corporate name from TGR to Invincible
Investment Corporation

implement sustainability-related initiatives in our daily operations.
Furthermore, we have been expanding our sustainability initiatives such as expressing
our support for the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), and issuing our first green bonds and obtaining green loans
through the establishment of a green finance framework.
We have decided to issue this ESG report in order to inform our unitholders andvarious other stakeholders about the major ESG-related initiatives implemented by
INV and CIM over the past year and promote their understanding of these efforts.
ESG initiatives have become increasingly importantin recent years, and we will continue to contributeto the realization of a sustainable society byproactively addressing the ESG issues we face incooperation with various stakeholders in real estate
investment management.

Executive Director,
Invincible Investment Corporation
President & CEO,
Consonant Investment Management Co., Ltd.

Naoki Fukuda

Invincible Investment Corporation | ESG Report4Policy & Strategy
Selection Policy for Investment Targets by
Property Type

Selection Policy for Investment Targets byGeography• INV will make investment primarily in hotels or residential properties, or Real Estate
Assets and Other Assets backed by such hotels or residential properties and Real
Estate-Backed Securities (＝ "Core Assets")• INV will also make investment in properties used for purposes other than hotels,
residences or Real Estate Assets backed by such hotels or non-residential properties(＝ "Sub Assets")• Allocation ratio for Core Assets should be 50% or above• INV's primary target regions for investment are the greater Tokyo area (Tokyo andKanagawa, Chiba, and Saitama prefectures) and ordinance designated cities. Target
regions further include major cities and surrounding areas nationwide and overseas
to ensure flexibility in the pursuit of investment opportunities• In order to secure sound growth of investment assets and stable profits over the
medium and long term, INV aims to construct a geographically diverse portfolio ofinvestment assets by avoiding the risk of economic fluctuations in certain regions aswell as avoiding concentrated investment in certain areas to diversify earthquake andother risks• Regarding overseas assets, INV currently plans to invest only in hotel properties.
Also, INV's overseas investment targets will only include countries and territories
that fulfill the requirements specified in Article 24-2 of the Rules on Real Estate
Investment Trusts and Real Estate Investment Corporations prescribed by The
Investment Trusts Association of Japan
Allocation Ratio（based on acquisition value）
Area

Specific Area
Overall allocation
ratio

GreaterTokyo and Kanagawa, Chiba andTokyo Area Saitama Prefectures

Allocation ratio among
domestic assets excluding
domestic hotels
70% or more

85% or more

Major
Regional
CitiesAreas surrounding the greater Tokyo
area and major cities nationwide
including ordinance designated cities

Overseas

Countries and regions in North
America, Europe and Asia with stable
political, economic and financial
systems, in which transparency oflegal, accounting and taxation
procedures and real estate markets, less than 15% *etc. is ensured, as well as otherequivalent countries and regions(e.g., the United States of America,
Canada, Great Britain, The British
Cayman Islands and Singapore)less than 30%--* Acquisition price of overseas properties will be converted into JPY amount based on the exchange
rate as of the time of investment. (If INV hedge risk of foreign exchange forward etc., based onafter the hedging transaction.)

Invincible Investment Corporation | ESG Report5Asset Manager
Company Profile

Organization
Shareholders' Meeting

Name

Consonant Investment Management Co., Ltd.

Statutory Auditor
The Board of Directors

Representative

Address

Establishment

CapitalNaoki Fukuda, President and CEO

Roppongi Hills Mori Tower 41F, 6-10-1 Roppongi,
Minato-ku, Tokyo, Japan
Tel. +81-3-5411-2731 FAX +81-3-5411-2735

March 2004

JPY 190 million

Stockholders

Fortress CIM Holdings L.P.
100.0% of issued shares of CIM

Registration &Licenses

Real estate agent's license:The Governor of Tokyo (5)No.83288
Approval for a discretionary transaction agent : Ministerof Land, Infrastructure, Transport and Tourism
Approval, No.36
Registered for a financial instruments business : Kanto
Local Finance Bureau registration No.314

Invincible Investment Corporation | ESG Report

President/CEO

Investment Committee

Asset Management
Department

Compliance Officer
Compliance Committee

Finance Department

Planning Department

Business Administration
Department

Asset
Management
Department

・ Formulation of asset management policy
・ Property acquisition and disposition
・ Property investment and asset management
・ Repair / renewal planning・ Research and analysis of real estate market

Finance
Department

・ Formulation of financial strategic policy of Invincible Investment Corporation
・ Fund raising of Invincible Investment Corporation
・ Accounting and tax procedures of Invincible Investment Corporation
・ Liaison with rating agencies

Planning
Department

・ Investor relations
・ Issuance of investment units
・ Promotion of ESG-consideration initiatives
・ REIT market analysis
・ Unitholders relations

Business
Administration
Department

・ General management planning・ General affairs and accounting
・ Judicial affairs and risk control
・ Liaison with government and public agencies

6

Sustainability Policy andPromotion Structure

Invincible Investment Corporation | ESG Report7

Sustainability Policy
INV and CIM have established the following basic policies for sustainability and will put them into practice in our daily operations.

1. Promotion of Energy Conservation and Reduction of Greenhouse Gas

6. Collaboration with Tenants, Supply Chains and Local Communities

INV and CIM make efforts to reduce energy consumption and greenhouse gas

INV and CIM recognize tenants, supply chains such as PM/BM and local communities

emission by introducing energy-efficient equipment and promoting energy-saving

as major stakeholders and strive to realize sustainability in real estate management bymeasures in operations. INV and CIM also contribute to building a carbon-free society

building good relationships with such stakeholders and acting proactively toand mitigating climate change by considering opportunities to utilize renewable energy.

collaborate with them.

2. Adaptation to Climate Change

7. Initiatives for Employees

INV and CIM have strengthened the disaster and environmental resilience of

INV and CIM strive to employ and evaluate employees in a fair manner, respecting

investment properties to respond to the direct physical risks caused by disasters due

human rights and diversity. In addition, INV and CIM provide a workplace

to climate change and the transition risks associated with tightening regulations andenvironment that gives consideration to the health, safety, and comfort of employees,social changes. INV and CIM curb these risks and aim to create business opportunities

and in order to improve them, INV and CIM develop a work system that givesthat adapt to climate change.

consideration to welfare and work-life balance. Furthermore, in addition to providing
opportunities for skill development, such as specialized training and support for3. Water Consumption Efficiency
INV and CIM strive to reduce water consumption by introducing water-efficientobtaining qualifications, INV and CIM make efforts to raise employee awareness ofsustainability and conduct education and awareness-raising activities.

equipment and promoting water-saving measures in operations. INV and CIM also
consider expanding the reuse of water in their facilities.

8. Compliance
INV and CIM not only comply with laws and regulations, but also strive to prevent

4. Effective Utilization of Resources and Reduction of Waste

corruption and conflicts of interest, properly manage information, and prohibit

INV and CIM work on reducing waste in our operations and encourage stakeholders to

improper conduct. INV and CIM establish an appropriate organizational structure tocooperate and sort waste, with the aim of contributing to the realization of a resource-

properly manage and prevent these risks.

saving and recycling-oriented society.
9. Ensuring of Transparency
5. Improvement of Health, Safety and Comfort

INV and CIM fulfill our accountability for stakeholders by actively disclosing ESG

INV and CIM strive to ensure the health and safety of tenants and visitors byrelated information. INV and CIM also consider the use of external evaluations andthoroughly cleaning and sanitizing our properties and conducting appropriate air

third-party certification to visualize the results of our environmental and social

conditioning. In addition, by improving the comfort provided by INV's properties, INV

initiatives.

and CIM aim to improve tenant satisfaction, retain and attract prime tenants, andincrease real estate value.

Invincible Investment Corporation | ESG Report8Promotion Structure of Sustainability
CIM

has

establishedthe"Sustainability

Committee"

toimplement

the"Sustainability Policy". The Sustainability Committee consists of (i) the President
and CEO, who is the final decision-maker, (ii) the General Manager of the AssetManagement Department and the General Manager of the Planning Department,
who are responsible for executing sustainability initiatives, and (iii) officers andSustainability Promotion Structure

INVʼs Board of Directors

employees involved in promoting sustainability. The Committee meeting is held atleast four times a year. The committee deliberates and decides on specificsustainability goals and measures, and such decisions and the status of progress

Reportingwill be reported to INV's Board of Directors. The same information will be sharedwith all officers and employees of CIM as well.
CIM will conduct sustainability-focused training for all officers and employees,
including temporary staff, at least once a year. The purpose of this training is tohelp

officers

and

employees

acquireknowledge

and

raise

awarenessofsustainability considerations in line with business practices, such as trends ofmarket and regulations related to ESG investment and environmental real estate.
Frequency of Sustainability Committee
Year

2021

2022

2023

2024
(Jan.-Jun.)

Frequency

4

4

5

4

Sustainable Procurement Policy
In order to promote initiatives for ESG throughout the value chain of INV's realestate portfolio, CIM has established guidelines in the real estate investment
management business, pertaining to the content of construction ordered thecriteria for selecting goods to be procured in connection with construction, and thecriteria for selecting and evaluating business partners (suppliers). In selecting
business partners, initiatives on sustainability including environmental friendliness,
respect for human rights and diversity, and prohibition of discrimination, all types

Sustainability
Committee
・ President and CEO (final decision-maker)
・ General Manager of the Asset Management
Dept. (Responsible for executing
sustainability initiatives)
・ General Manager of the Planning Dept.
(Responsible for executing sustainability
initiatives)
・ Officers and employees involved inpromoting sustainability

CIMʼs employees
Information Sharing<Contents of deliberation/decision>
・ Establishment of systems to promote ESG
・ Establishment of sustainability related
policies
・ Decision on specific sustainability goals andmeasures・ Management and review of progress statusof aforementioned target
・ Management and operation ofEnvironmental Management System (EMS)<Frequency of meeting>・ At least four times a yearof harassment, forced labor, child labor, etc. are positioned as some of the criteria,along with standards such as price, quality, creditworthiness, and services.

Invincible Investment Corporation | ESG Report9Initiatives for Environment

Invincible Investment Corporation | ESG Report10Environmental Targets
CIM has formulated the "Energy Conservation Policy", the "Greenhouse Gas Emissions Reduction Policy", the "Water Saving Policy" and the "Waste Management Policy" which stipulate efforts to
reduce environmental impact in real estate investment management operations. Through the cycle of planning, implementation, performance management, and improvement set forth in the"Environmental Management System (EMS) Operation Manual" that stipulates the details for operating these policies, CIM will strive to continuously reduce the environmental impact.
In accordance with the Act on the Rationalization etc. of Energy Use (Energy Conservation Act),

intensity by 5% in Fiscal Year 2024 from Fiscal Year 2019 levels. The basic target for the

CIM sets the following quantitative targets for the continuous reduction of energy consumption

adjusted scope 3 (Note 4) and the adjusted scope 1+2+3 is to reduce the emission intensity bythroughout the portfolio.

1% in Fiscal Year 2024 from Fiscal Year 2019 levels.

●Long-term target 1:

Reduce annual energy consumption intensity within the owner

Regarding water usage and waste volume, our target is not to increase each intensity level inmanagement scope (Note 1) by 5% in Fiscal Year 2024 from Fiscal

the five years from Fiscal Year 2020 to Fiscal Year 2024 compared to Fiscal Year 2019 levels.

Year 2019 levels (Each fiscal year is April to March of the following year.
The same applies hereafter)

The Sustainability Committee compares target and actual values and appropriately considers
measures to achieve each environmental target. The scope of the initiatives for reducing energy●Long-term target 2:

Reduce the annual energy consumption intensity within the tenantconsumption and greenhouse gas emissions is the energy consumption through the use ofmanagement scope (Note 2) by 1% in Fiscal Year 2024 from Fiscal

lighting, air conditioning, and various facilities in INV's portfolio, specifically refers to 1)

Year 2019 levels

purchased electricity, 2) city gas/LP gas, etc., 3) heavy oil/kerosene/gasoline, etc., and 4)
purchased steam, hot and cold water, and district heating and cooling etc. consumed on-site.

Regarding greenhouse gas emissions, in accordance with the reduction target for energy
consumption, the basic target for the adjusted scope 1+2 (Note 3) is to reduce the emission

Progress towards the long-term targets is as follows.

Energy Consumption Intensity (MWh/㎡)

YoY

FY2021YoY

FY2022YoY

FY2023

YoY

Difference(vs 2019)

FY2019FY2020Owner Management
Scope (Note 1)

0.094

0.093

-0.7％

0.092

-1.6％

0.088

-3.8％

0.084

-5.0％

-8.6％

Tenant Management
Scope (Note 2)

0.328

0.260

-20.7％

0.274

+5.2％

0.299

+9.3％

0.300

+0.2％

-8.6％

(Note 1) In principle, the owner management scope refers to common areas of residences and retail facilities owned by INV.
(Note 2) In principle, the tenant management scope refers to whole area of hotels and tenant-exclusive areas of residences and retail facilities owned by INV.
(Note 3) Scope 1 covers direct greenhouse gas emissions from fuel consumption within the owner management scope, and Scope 2 covers indirect greenhouse gas emissions from electricity, heat, etc. purchased
within the owner management scope. In addition, the target properties are those that (i) were held throughout the aggregation period and (ii) have data that enables comparison under the same
conditions. Adjustments based on occupancy rates will be made on the actual values. Hereinafter the same.
(Note 4) Scope 3 covers greenhouse gas emissions derived from tenant management scope.

Invincible Investment Corporation | ESG Report11

Greenhouse Gas Emission (t-CO2 eq) and Intensity (t-CO2 eq/㎡)

Adjusted Scope 1 (Note 1)

Intensity Adjusted
Scope 2

(Note 1)

Intensity Adjusted
Scope 1+2

Intensity Adjusted
Scope 3 (Note 2)

Intensity Adjusted
Scope 1+2+3

FY2019FY2020

Total
Amount21

21

Intensity

0.001

0.001

Total
Amount738

706

Intensity

0.041

0.039

Total
Amount760

728

Intensity

0.042

0.040

Total
Amount30,64523,818Intensity

0.102

0.079

Total
Amount31,40524,546

Intensity

0.099

0.077

YoY

FY2021

YoY

17

0.0％

-1.5％

676

-1.2％

0.040

-6.0％

+5.0％

0.083

25,801

-5.9％

+4.8％

0.081

26,477

Difference(vs 2019)-27.0％-41.7％

633-4.0％-14.3％

645-4.6％-15.1％+0.4％-15.5％

0.3％-15.4％

0.036

+3.1％

0.086

25,722

12

YoY

0.035

0.037

25,003

FY2023

0.000

0.036

719

-21.8％

659

-0.6％

0.039

-22.3％

YoY

0.000

702

-4.2％

17

-19.0％

0.000

-4.3％

FY202225,908
0.086

+2.8％

0.083

26,5530.083

Water Usage Intensity (㎥/㎡) and Waste Volume Intensity (t/㎡)

YoY

FY2021YoY

FY2022YoY

FY2023

YoY

Difference(vs 2019)

FY2019FY2020

Water Usage
Intensity

3.833

2.147

-44.0％

2.448+14.0％

3,265+33.4％

3,610+10.6％-5.8％

Waste Volume
Intensity

0.011

0.006

-44.4％

0.007+19.6％

0.009+33.3％

0.010

+3.3％

-8.5％

(Note 1) Scope 1 covers direct greenhouse gas emissions from fuel consumption within the owner management scope, and Scope 2 covers indirect greenhouse gas emissions from electricity, heat, etc. purchased
within the owner management scope. In addition, the target properties are those that (i) were held throughout the aggregation period and (ii) have data that enables comparison under the same
conditions. Adjustments based on occupancy rates will be made on the actual values. Hereinafter the same.
(Note 2) Scope 3 covers greenhouse gas emissions derived from tenant management scope.
(Note 3) Each intensity is based on 95 properties (52 properties for waste volume intensity) in the portfolio that have been held from the beginning of FY2019 to the end of FY2022 and for which data that enables
comparison under the same conditions can be obtained.

Invincible Investment Corporation | ESG Report12Environmental Management System (EMS)EMS Policy
CIM recognizes energy conservation and reduction of GHG emission and others as important environmental issues for our real estate portfolio and is committed to addressing these issues
in our sustainability policy. CIM has developed the “energy conservation policy”, “GHG emission reduction policy”, “water-saving policy” and “waste management policy” which define
initiatives toward the reduction of environmental impact in the real estate investment management business. Furthermore, CIM has been working to reduce our environmental impact
through PDCA (Plan/Do/Check/Act) cycle based on our EMS policy which specifies the details for managing these policies.

＜EMS diagram based on PDCA Cycle＞● Establishment of the Environmental Management
Policies● Assessment of Environmental Impact and Status● Implement the Management Review(Overall assessment and improvement
instructions)Act

Review/
Improvement

Plan
Plan

of Initiatives● Compilation of Environment-related Laws andRegulations, etc.
● Establishment of Environmental Management
Targets and Environmental Management Plans● Check and Assess the Status of Achievement ofEnvironmental Management Targets● Check and Assess the Implementation Status of
the Environmental Management Plan
● Manage the Forecasts and Results, Implement
Correction and Prevent Problems

Invincible Investment Corporation | ESG Report

Check

Check/Managementof the Forecasts
and Results

Do

Implementation● Implementation and Operation● Education and Training● Implement Environmental Communication● Preparation and Response to Environmental
Emergencies● Preparation and Management of Documents

13

Environmental Performance
The environmental performance of INV's portfolio for each fiscal year (April to March of the following year) is as follows.
FY2019 Actual

FY2020 Actual

FY2021 Actual

FY2022 Actual

FY2023 Actual(Note 3)(Note 3)(Note 3)(Note 3)(Note 3)

Number of Target Properties (Note 1)
Total Amount (MWh)Coverage Ratio(Note 4)

152

148

142

128

134

273,223

195,743

223,678

232,464

271,810–

89.3％
Energy Consumption

Intensity (MWh/㎡)

0.358

0.261

0.300

0.322

0.347

Renewable Energy(MWh: included in total
amount)

3,797

3,695

3,505

4,355

3,465

Total Amount (t-CO2 eq)

80,61858,25063,321

65,222

76,768Intensity (t-CO2 eq/㎡)

0.105

0.077

0.085

0.090

0.098

2,821,557

1,712,511

1,944,347

2,595,546

3,323,857

Greenhouse Gas Emissions

89.3％

Total Amount (㎥)Water Usage

Waste Volume

23.1％

89.8％
Intensity (㎥/㎡)

3.637

2.253

2.578

3.582

4.226

Total Amount (t)

7,150

4,282

5,180

5,302

6,140

Intensity (t/㎡)

0.010

0.006

0.007

0.007

0.008

Recycling Rate (Note 2)
(％)

20.9

19.4

17.3

25.1

21.0

84.8％

(Note 1) Properties acquired or sold during the relevant period are included.
(Note 2) Recycling rate (%) is calculated by dividing the recycled weight (t) by the total weight of waste (t). Hereinafter the same shall apply.
(Note 3) Actual value of each property is based on the data during the holding period by INV. For co-ownership properties, actual value of the entire property is reported regardlessof INV's ownership ratio. Hereinafter the same shall apply.
(Note 4) Coverage ratio (%) is calculated by dividing floor area of the portion where the data was collected (㎡) by total floor area (㎡).

Invincible Investment Corporation | ESG Report

14

The following are actual values (Note 1) for properties in INV's portfolio that can be compared under the same conditions (Note 2).

Total Amount(MWh)
EnergyConsumption(95 properties)

Greenhouse Gas
Emissions(95 properties)

FY2019FY202099,887

79,523YoY

FY2021
83,550-20.4％FY2022

YoY

91,122+5.1％

FY2023

+9.1％

0.315

0.251

Renewable Energy(MWh: included in
total amount)

2,118

2,208

Total Amount(t-CO2 eq)

31,40624,545Intensity(t-CO2 eq/㎡)

0.099

0.077

0.081

0.083

0.083

1,213,482

679,860

774,985

1,033,493

1,142,806

Total Amount (㎥)

0.263

+4.3％

2,135

0.287

-3.3％

25,750-21.8％

2,248-44.0％

+5.3％

2,170

+33.4％

Intensity (㎥/㎡)

3.833

2.147

2.448

3.265

3,610

Total Amount (t)

3,275

1,820

2,177

2,903

2,998

-44.4％
Intensity (t/㎡)

0.011

0.006

Recycling Rate
(％)

23.1

26.5

+19.6％
0.007+3.4pt21.9+33.3％
0.009-4.6pt

21.2

0.1％

-8.7％

-3.5％

+2.5％

0.3％

-15.4％

10.6％

-5.8％

3.3％

-8.5％

-8.9pt-10.8pt

26,554+2.8％+14.0％

Difference(vs 2019)

0.288

26,478+4.9％

YoY

91,220Intensity(MWh/㎡)

Water Usage(95 properties)

Waste Volume(52 properties)

YoY

0.010

-0.7pt12.3(Note 1) A certain adjustment has been made by CIM.
(Note 2) Properties that have been held from the beginning of FY2019 to the end of FY2022 and for which data that enables comparison under the same conditions can be obtained. The following properties are excluded
because it is difficult to make an adjustment for comparison under the same conditions: (i) properties acquired or sold during the relevant period, (ii) properties for which the occupancy rate has not been
disclosed to INV, (iii) properties with a month when the occupancy rate became 0% due to a temporary closure. The number of target properties for each item of the environmental data is shown in parenthesis
under each item name.

Invincible Investment Corporation | ESG Report15

Initiatives for Green Buildings

Green FinanceIn order to promote initiatives for green buildings, the real estate that is environmentally

Green Finance Frameworkand socially friendly, INV has implemented the following renovations in our portfolio andINV has established the Green Finance Framework to procure funds

introduced effective equipment to reduce environmental impact, such as promoting

necessary to realize a sustainable environment and society through Greenenergy conservation, reducing CO2 emissions, and effectively utilizing water resources.

Bonds and Green Loans. It acquired “Green1 (F)”, the highest rating on JCRʼs●Introduction of large-scale energy-saving equipment(cold/hot water generator, hot water heater, etc.)●Water saving by recycling pool drainage●Introduction of LED lighting●Introduction of the water-saving type toilet●Installation of a water-saving shower●Installation of gas cogeneration, inverter, etc.
●Automatic meter readings (AMR)●Introduction of BEMS
●Installation of high-efficiency equipment and appliances●Introduction of on-site renewable energy

Green Finance Framework Evaluation
Green Finance Framework:https://www.invincible-inv.co.jp/en/upd/framework_202406_ENG.pdf

Green Lease
Green lease is an initiative in which owners and tenants of a real estate asset voluntarily
agree in a lease contract to work together on measures related to the environmental
consideration of the real estate and put them into practice. INV has been actively
adopting green lease and, together with the agreed tenants, has been actively
maintaining and improving the environmental performance of INV's properties.
Track record of concluding green leases with the agreed tenants including INV's main
tenant, MHM that operates most of INV's hotels as of the end of March 2024
Number of hotels: 79
Total floor area ratio covered in the entire portfolio: 60.8%

Distribution of Sustainability
Guides for Tenants
We distribute examples of initiatives on "sustainable hotel management" to hotel
operators, who are tenants, and encourage them to work to reduce the environmental
impact of hotel management and raise environmental awareness among guests.

Invincible Investment Corporation | ESG Report

Total Amount of Green Finance
Date ofissuance/
borrowings

Term

Amount(JPY million)

9th series unsecured corporate bonds(Green bond)

21 Sep 2023

5 years

1,700

10th series unsecured corporate bonds(Green bond)

14 Dec 2023

5 years

1,800

Mizuho BankMUFG Bank
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank
Development Bank of JapanSan ju San Bank
The Nomura Trust and Banking(Green loan)

16 Jan 2024

6 years

8,970

Mizuho BankMUFG Bank
Sumitomo Mitsui Trust Bank
Development Bank of Japan(Green loan)

14 Mar 2024

6 years

1,029

Name of Green Bond/Lender

16

Initiatives to Address
Climate Change

Invincible Investment Corporation | ESG Report17

Our Awareness of Climate Change

In February 2023, CIM has expressed its support for the TCFD recommendations in order
to officially announce its support for the international goals set forth in the Paris
Agreement and its willingness to continue to promote efforts to reduce greenhouse gas

As indicated by the Paris Agreement adopted in 2015 and other agreements, theemissions in order to contribute to climate change mitigation.

progression of climate change is a scientific fact, and social demands to address climatechange-related issues are increasing.

CIM also participates in the TCFD Consortium, an organization of supporting companies inJapan. Through communication with supporting companies, CIM will deepen its

Since the natural environment and social structure are expected to change dramaticallyknowledge on effective information disclosure and utilization of information, etc., anddue to more severe weather disasters and stricter emission regulations brought about by

apply this knowledge to our efforts to address climate change-related issues.

the progression of climate change, INV and CIM recognize that climate change is anin the medium to long term.

Governance

Based on this awareness, INV and CIM have set forth "Adaptation to Climate Change" in

CIM has established the following governance structure to address climate change-related

our "Sustainability Policy", and INV and CIM are promoting efforts to address climate

risks and opportunities.

important issue (risk) that will have a significant impact on our management and businesschange-related issues.

Support for the TCFD
Recommendations●The chief executive overseeing climate change-related issues shall be the President andCEO, who is the final decision-maker on sustainability promotion.
●The operating officers responsible for climate change-related issues shall be the General
Manager of the Asset Management Department and the General Manager of the
Planning Department, who are responsible for the execution of sustainability promotion.

The Task Force on Climate-related Financial Disclosures (TCFD) is an international
initiative established by the Financial Stability Board (FSB) at the request of the G20 to●The operating officers for climate change-related issues shall report regularly to theexamine how climate-related information should be disclosed and how financial

chief executive for climate change-related issues at the Sustainability Committee on

institutions should respond. The TCFD has published recommendations for companies andmatters related to initiatives to address climate change, including identification andothers to disclose their "governance", "strategy", "risk management", and "metrics andassessment of climate change impacts, risk and opportunity management, progress intargets" for climate change-related risks and opportunities.

adaptation and mitigation efforts, and the setting of metrics and targets. The
Sustainability Committee shall discuss and review these matters. After deliberation andconsideration by the Sustainability Committee, decisions shall be made by the chief
executive for climate change-related issues.
For an overview of the Sustainability Committee, please refer to "Promotion Structure of
Sustainability" in "Sustainability Policy and Promotion Structure".

Invincible Investment Corporation | ESG Report18Strategy

Scenario of Climate Change Progression
A scenario in which the average global temperature increases by 4℃ compared to preindustrial revolution levels (4℃ scenario). The risks related to damages and hazards

Reference Scenarios

caused by natural disasters, changes in weather conditions, or physical changes such as a

CIM used the following two scenarios (future visions) to identify climate change-related

rise in sea level, brought about by climate change (physical risks) must be addressed.

risks and opportunities.

Physical risks consist of the following risks;

Scenario of Transition to a Decarbonized Society
A scenario in which the global average temperature increase is limited to less than 1.5℃
compared to pre-industrial revolution levels (1.5℃ scenario). Investors and companies are
required to address risks that they may face in the future due to structural social andeconomic changes that will occur in the process of transitioning to a sustainable low-

Risks

Overview

Acute Physical Risks

Risks of damage due to an increase in typhoons, floods, andother sudden weather disasters

Chronic Physical Risks

Risks of damage from prolonged extreme weather events, suchas a rise in sea level and heat waves

carbon society (transition risks). Transition risks consist of the following risks;
Risks
Policy and Regulatory
Risks

Overview
Risks that administrative burdens and costs will increase inorder to comply with tighter policies, laws, and regulations
aimed at decarbonization

Technology Risks

Risks that technological innovations related to decarbonization
may render existing technologies and products obsolete

Market Risks

Risks related to cost increases due to soaring raw material
prices or changes in customer demand for specific products
and services

Reputation Risks

Risks of damage to reputation among stakeholders due toinadequate decarbonization efforts

Invincible Investment Corporation | ESG Report

Based on the TCFD recommendations, CIM conducted a scenario analysis by referring to
the World Energy Outlook 2022 published by the International Energy Agency (IEA) andthe Fifth Assessment Report published by the United Nations Intergovernmental Panel on
Climate Change (IPCC).
Scenarios

Referenced Scenarios
Transition Risks Physical Risks

1.5℃ Scenario

IEA NZE2050

IPCC RCP2.6

4℃ Scenario

IEA STEPS

IPCC RCP8.5

World View
Transition risks increase as social
policies for decarbonization,
emission controls and technology
investments are strengthened.
On the other hand, physical risks
are reduced compared to the 4℃
scenario due to reduced
greenhouse gas emissions.
Greenhouse gas emissions willcontinue to increase and physicalrisks will increase. On the other
hand, transition risks are
reduced compared to the 1.5℃
scenario, as regulations for
decarbonization do not change
significantly from the current
situation.

19

Identification of Climate Change-related Risks and Opportunities and Financial Impact
CIM has assessed the financial impact of the risks and opportunities identified based on the scenario analysis as follows;
Financial Impact
Risks and Opportunities in Real
Estate Management

Policy andRegulation

Transition
risks

Technology

Tighter taxation of greenhouse gas
emissions by introducing a carbon tax

Details of Impact

4℃ scenario
Shortterm

Mediumterm

Longterm

1.5℃ scenario
Shortterm

Mediumterm

・ Introduction of energy-saving
equipment and facilities
Small Medium Large・ Introduction of renewable energy
・ Promoting awareness of energy
conservation among property users
・ Monitoring energy consumption andSmall Medium Large
conducting energy conservationassessment
・ Promoting acquisition of environmental
certifications
Small Medium Medium ・ Replacing properties with ones thathave higher environmental
performance

risk

Small

Small

Small

Tightening of energy conservation
standards in existing real estaterisk

Increased cost of renovation to comply
with the standards, and fines imposedin some cases

Small

Small

Small

Stricter emissions reporting
requirements under the Energy
Conservation Law

risk

Increased expenses, such as paymentof fees to outside vendors to meet
reporting requirements

Small

Small

Small

Compliance with overseas laws andregulations

risk

Small

Small

Small

Small Medium Medium

Evolution and diffusion of renewableenergy and energy-saving
technologies

risk

Small

Small

Small

Small Medium Medium

Evolution and diffusion of renewableenergy and energy-saving
technologies

Opportunity

Reduction of utility costs throughimproved environmental performance

Small

Small

Small

Introduction of on-site renewableenergyOpportunity

Reduction of externally procured utility
costs

Small

Small

Small

risk

Lower appraisal value and NAV (Net
Asset Value) when environmental
performance is low

Small

Small

Small

Small Medium Medium

risk

Rising financing costs

Small

Small

Small

Small Medium Medium

Utilization of Green Bonds
Increased funding volume and lower
funding costs by addressing andappealing to investors who care about
environmental issues

Small

Small

Small

risk

Increase in expenses

Small

Small

Small

risk

Difficulty in attracting new
tenants/occupants and decrease in rent
income due to lower retention

Small

Small

Small

Developing new investors
Rising utility costs (including
externally procured renewableenergy)Change in tenants and/or occupants
demand, where they may choose
properties with lower environmental
impact or avoid non-environmentallyfriendly properties

Invincible Investment Corporation | ESG Report

Opportunity

Risk of sanctions due to violations oflaws and regulations
Loss of reputation with investors due todelayed response
Increased costs of introducing newtechnology for owned properties toprevent becoming technologicallyoutdated

Risk Management, Countermeasures,and Initiatives

Longterm

Increased tax burden on greenhousegas emissions from owned properties

Introduction of environmental
performance and other criteria into
real estate appraisals
Deterioration of financing conditions
for market participants not addressing
climate change

MarketClassification

・ Further discussions with foreign law
attorneys and foreign investors

・ Utilization of outside consultants who
are knowledgeable in the field of
renewable energy and energy-saving
technologies
・ Employing the experienced in-house
Small Medium Medium
engineers
・ Utilization of businesses that provide
products and services that take
Small Medium Medium
advantage of cutting-edge technologies

・ Introduction of energy-saving
equipment and facilities
・ Introduction of renewable energy
・ Promoting awareness of energy
conservation among property users
Small Medium Medium ・ Monitoring energy consumption andconducting energy conservationassessment
・ Promoting acquisition of environmental
Small Medium Largecertifications
・ Replacing properties with ones thathave higher environmental
performance
Small Medium Medium

20

Financial Impact
Risks and Opportunities in Real
Estate Management

Physical
risks

risk

Increased expenses due to higher costs
Lack of materials with highenvironmental performance
Difficulty in hiring human resources
due to insufficient environmental
considerations

Small

Small

Small

Small Medium Medium

risk

Decrease in rent premium due todecrease in a brand value

Small

Small

Small

risk

Increased costs to meet needs of hotel
guests and residential occupants andlosing customers due to unaddressed
needs

Small

Small

Small

Opportunity

Increased revenues due to higher room
rates and rents, and acquisition of new
customers

Small

Small

Small

Wind damage to property caused bytyphoonrisk

Medium Large

Large Medium Medium Medium

Inundation due to internal flooding
and flooding of nearby rivers caused
by torrential rains

Increased repair and insurance costs,
lost sales opportunities, and lower
occupancy rates

riskSame as above

Medium Large

Large Medium Medium Medium

Flooding of properties with low
elevation due to sea level riserisk

Large-scale renovation (raising) costs
incurred

Small Medium Large

Small

Small

Small

Increasing demand for air
conditioning due to increase in
extreme weather conditions such as
extremely hot and cold days

・ Implementing disaster prevention andmitigation measures
・ Area diversification of portfolio
・ Considering sales of properties basedon the level of impact

risk

Increase in utilities, maintenancerelated expenses, and repair costs

Small Medium Large

Small

Small

Small

・ Installation of high-efficiency air
conditioning equipment

Impacts of climate change on resort
areas

risk

Decrease in travel demand and lower
occupancy rates due to events
Medium Largeadversely affecting tourism resources in
the resort area

Large

Small

Small

Small

・ Area diversification of portfolio
・ Considering sales of properties basedon the level of impact

Contributing to local communities
Preservation of natural environment

Opportunity

Small・ Deepening relationships with local
communities through participation in
Small Medium Medium
local events, etc.
・ Participating in local environmental
preservation activities

Improving disaster resilience of areas
where properties are locatedEnhancing attractiveness to customers
as a region

Small

Small

Mediumterm

Risk Management, Countermeasures,and Initiatives

Shortterm

Reputation

Resilience

1.5℃ scenario

Longterm

Decrease in a brand value of
properties due to delays in addressing
climate change
Changes in demand from hotel guests
and residential occupants, where they
may avoid properties with inadequate
climate change adaptation)
Developing new customers bycontinuously providing low-emission
facilities, specifications, and services
that adapt to change of theirpreferences

Chronic

4℃ scenario
Mediumterm

MarketAcute

Details of Impact

Shortterm

Changes in the procurement
environment for materials and humanresources due to increasing emphasison environmental performance andenvironmental considerations

Transition
risks

Classification

Longterm

・ Implementing green finance・ Improvement of ESG ratings
・ Enhancing disclosure of climatechange-related information such as
TCFD
Small Medium Medium ・ Conducting satisfaction surveys andmake improvements according tosurvey results
・ Strengthening information sharing andSmall Medium Largecollaboration with hotel operators andproperty management companies
・ Strengthening sustainability-related
initiatives and appeals at owned
properties
Small Medium Medium

・ Implementing disaster prevention andmitigation measures
・ Area diversification of portfolio*Due to uncertainties and unknown risks in future projections, the accuracy of the above assessment of financial impact cannot be guaranteed.

Initiatives to Address Climate Change-related Risks and Opportunities
In response to the above risks and opportunities, CIM has set environmental targets and is working on various measures to reduce its environmental impact. For details, pleaserefer to "Initiatives for Environment"

Invincible Investment Corporation | ESG Report

21

Risk Management
CIM manages climate change-related risks based on the following processes;
Process for Identifying and Assessing Climate Change-related Risks and Opportunities
A working group composed of personnel from departments deemed necessary identifies and assesses risks and opportunities based on the classification of transition and physical risks,and reports the progress and results at the Sustainability Committee.
Process for Managing Climate Change-related Risks
The chief executive for climate change-related issues shall designate a department or person in charge of responding to climate change-related risks and opportunities that have a highpriority in business and financial planning, as discussed by the Sustainability Committee, and instruct them to formulate countermeasures for such risks and opportunities. The
countermeasures will be deliberated at the Sustainability Committee or an appropriate internal meeting body, depending on their nature, and then will be implemented.
Integration into the Company-wide Risk Management Program
The chief executive for climate change-related issues will direct that climate change-related risks that are material to business and financial planning be considered in existing companywide risk management programs, and will integrate and supervise the risk identification, assessment, and management process.

Metrics and Targets
CIM has established key performance indicators (KPIs) and targets to manage and monitor risks and opportunities. Please refer to "Environmental Targets" and "Environmental
Performance" in "Initiatives for Environment" for metrics, targets and results.

Invincible Investment Corporation | ESG Report22Initiatives for Society

Invincible Investment Corporation | ESG Report23

Providing Facilities as Countermeasures against COVID-19 Infections
APA Hotel Yokohama-Kannai and Hotel MyStays Oita were utilized as accommodation and medical facilities for patients with mild symptoms or quarantine facilities for returnees
from overseas. In addition, meeting rooms at Hotel MyStays Shin Osaka Conference Center were provided as a vaccination venue.

Contribution to Disaster Prevention
Designated as "Tsunami Evacuation Building"
Buildings designated by municipalities in advance as an
emergency evacuation site for local residents to evacuate
temporarily when a Tsunami inundates an area, in areas
where it is considered difficult to evacuate due to timedelay from the occurrence of the earthquake to arrival of
the Tsunami considering geographical conditions.
Hotel MyStays Shimizu

Takamatsu Tokyu REI Hotel

Hotel MyStays Kagoshima Tenmonkan

Initiatives for Tenants － Tenant Satisfaction Survey
We conducted a satisfaction survey for all residents of INV's residential properties excluding three student residences with fixed-rent sublease, in March 2022 through an external researchorganization. We collect opinions and requests of residents and share them with PM companies to improve building / equipment specifications and services.

Invincible Investment Corporation | ESG Report24Asset Management Company Initiatives for Employees
We, the Asset Management company, place among the top priorities of business management the establishment of a comfortable work environment and organization that promotes
the physical and mental health of executives and employees. We have made various initiatives to establish an environment that promotes personnel evaluation and benefits in order tomaximize the abilities and motivation of every employee which leads to the achievement of sustainable growth.
Regular performance appraisals and feedback processes

Employee Data (At the End of Each Fiscal Year)All employees set an annual goal following an interview with their reporting supervisor.

FY2019FY2020

FY2021

FY2022

FY2023

5

5

5

5

6

0
（0％）

0
（0％）

0
（0％）

0
（0％）

0
（0％）

19

19

20

20

35

12
（63.2％）

12（60.0％）

12（60.0％）

20（57.1％）

7

8

8

16

3
（42.9％）

3（37.5％）

3（37.5％）

5（31.3％）

6

5

5

7

3
（50.0％）

2（40.0％）

2（40.0％）

4（57.1％）

0

2

3

19

Females2(Female ratio) （33.3％）0（0.0％）

1（50.0％）

2（66.7％）

10（52.6％）

Number of Turnover(Turnover rate)

3（16.7％）

0（0％）

2（10.5％）

2（10.5％）

5（14.7％）

Average years employed(for male employees)...a

4.9 years

5.9 years

6.0 years

6.7 years

4.0 years

Average years employed(for female employees)...b

4.2 years

5.2 years

5.8 years

6.3 years

3.8 years

Percentage difference in average
years employed for female to male
employees...b / a

86.8％

89.1％

96.6％

95.3％

95.7％

We conduct personnel evaluations at the end of the fiscal period after an interview with all
employees to look back on their performance and provide feedback on the evaluation

Number of Directors

results. The result of those performance reviews are reflected in employees' compensation.

Females(Female ratio)

We have established a transparent personnel evaluation system through regularmeasurement and feedback processes.

Number of Employees

Skill development opportunities

Females12(Female ratio) （63.2％）

Employees are provided with a wealth of e-learning contents to prepare for qualification
exams and to acquire various business skills. Employees can use them at any time toGeneral Managers (Note)

improve their expertise and skills.
Respect for human rights and promotion of diversity
We accept differences in diverse professional abilities and values as well as paying respect

Females3(Female ratio) （42.9％）
Managers

to positive heterogeneity in order to maximize the abilities of each individual employee.

harassment, and we strive to foster a corporate culture that respects personality, andNumber of newly hired employees

promote the active participation of women by creating a work environment and systems
that are comfortable for women.
Establishment of DEI promotion policy
Social norms and values related to human rights have been increasingly diversified andglobalized, and the opportunity to interact with people with various backgrounds andcultures has been increasing. Under such environment, we recognize that DEI (Diversity,
Equity and Inclusion) is an important social issue and we have developed a DEI promotion
policy to nourish an inclusive organizational culture and to establish an inclusive value
chain to promote DEI in the belief that our approach to ESG, including DEI, will contribute

6

Females3(Female ratio) （50.0％）

We aspire to achieve sustainable corporate growth while creating additional value.
Our Compliance Regulations clearly prohibits all kind of discrimination and sexual

76(Note) General Manager and Staff General Manager

to the alignment with our unitholders and the resolution of social issues.

Invincible Investment Corporation | ESG Report25Initiatives for Health and Well-being of each Employee

System for a Good
Working Environment
・ Premium Friday (earlyout once a month)・ No overtime on
Wednesdays

We have established various benefit programs listed below to support each
work/lifestyles of employees.
●Full subsidy for a comprehensive medical checkup (no age restriction)●Childcare leave (including shortened work hours for childcare)●Family care leave (including shortened work hours for nursing care)

Implement improvement
measures

Aggregate number ofhours worked by
employee or department(Reduction of workload, additional
human resources, etc.)●Family care leave to care for children

Regular management
reviews of hours/workload
and consider measures toimprove the situation●Monetary gifts for congratulations, condolences, etc.
●Service provided by an employee benefits services company●Premium Friday (early-out once a month)*●No overtime on Wednesdays*

FY2019The implementation rate of Premium Friday (Note 1)
The implementation rate of No
overtime on Wednesdays●Off-peak commuting or remote working in case of emergencies such as infectious
disease outbreak* We implement Plan Do Check Action cycles to ensure that management regularly reviews theimplementation rate of the system and improves the implementation rate for Premium Friday and No
overtime on Wednesdays.

(Note 1) (Note 2)

51.4％

Zero hours overtime

22.4％

Less than 60min. overtime

58.2％(Note 1) As measures to prevent COVID-19 infections, we have adopted off-peak commuting and Work from
Home systems since February 26, 2020, and Premium Friday and No overtime on Wednesdays
systems have not been applied.
(Note 2) Calculation is based on the employees excluding absent ones on the day for No-Overtime-Working.

Other Initiatives for Employees●Cover the expense of getting or renewing qualifications●Prohibit discrimination and harassment (Defined by compliance rule)●Establish the external contact office for the internal reporting and protect thewhistleblower●Conduct employee satisfaction survey (once in every 3 years for permanent andcontract employees; actual coverage ratio in Fiscal Year 2023: 100% of employees)

Invincible Investment Corporation | ESG Report26

Initiatives byHotel Operator

Invincible Investment Corporation | ESG Report27

Environment
MHM, the main operator of hotels owned by INV has been implementing various initiatives to promote energy savings and CO2 reduction related to hotel operations and to preserve
biodiversity in the surrounding areas.
Energy-saving construction using Ministry of the Environment subsidy (SHIFT Project)・ Hotel Nord Otaru and Hotel MyStays Sapporo Aspen received a subsidy of JPY 25 million in total(about one-third of the total investment) from the Ministry of the Environmentʼs “Project for the
Promotion of Leading Decarbonization Initiatives in Factories and Business Sites (SHIFT Project*)”
to replace a gas-fired absorption chiller/heater that was due for renewal with an air-cooled heatpump chiller. The hotels aim to reduce CO2 emissions and energy costs through reduction of fuelconsumption by improvement of energy efficiency and reduction of energy power consumption byremoving cooling water pumps and cooling towers.
* Projects that support initiatives that serve as role models for decarbonization (setting reduction targets, formulating
reduction plans, and implementing facility upgrades, electrification, fuel conversion, and operational improvements) at
factories and business sites to achieve Japan's 2030 GHG reduction targets and achieve carbon neutrality in 2050.

Various Initiatives for Energy Conservation and CO2 Reduction
ü Eco-friendly plan at hotel "ECO-Plan”
Encouraging guests to use eco-friendly plans by lowering the price of plans that do
not require linen exchange when guests stay 7 consecutive nights
ü Conducted energy-saving checks
ü Reducing greenhouse gas emissions from Food Transportation at Hotels (Hotel
Epinard Nasu)
Contributing to CO2 reductions by cooperating with farmers and dairy farmers in
Tochigi Prefecture to reduce the procurement from prefectures other than Tochigi

CO2 Reduction Plan

Status in 2023
Entire business site
Main systems

2024 Target

1,520(t-CO2 /year)

587(t-CO2 /year)

20.1%

reduction

52.1%

reduction

Before installation of air-cooledheat pump chiller

1,213(t-CO2 /year)

281(t-CO2 /year)
After installation of air-cooledheat pump chiller
Introduction of EV infrastructure “Terra Charge”
・ Decided to introduce EV charging infrastructure “Terra Charge” provided by Terra
Motors Corporation in most of hotels operated by MHM as one of the measures toachieve a decarbonized society. 156 units will be installed at 90 hotels, and will be
gradually expanded to hotels across Japan to protect the environment and improve
convenience of hotel guests(as of May 14, 2024)# of hotels
introduced# of units
introduced

Hotel Mystays Premier

35Hotel Mystays

20

28

Flexstay Inn00

Art hotel

711

Mystays collection

19

28

Kamenoi Hotel

29

58

Total

78

130

Hotel brandHotel Nord Otaru

Hotel MyStays Sapporo Aspen

Invincible Investment Corporation | ESG Report28Biodiversity Initiative
・Hotel Epinard Nasu

・Fusaki Beach Resort Hotel & Villas

In order to reduce the impact of deforestation on the ecosystem, tree felling wasWith the aim of preserving the richminimized during hotel development. In the blueberry farm area scheduled to be opened

nature of Ishigaki Island, from Junein 2024, we are working to conserve the forest by planting more blueberries than were13, 2022, we are replacing

cut down. Furthermore, hotel provides the activities and nature tours that guests cantoothbrushes and hairbrushes madeenjoy in the rich natural forest which is home to insects and small animals.

with 100% plant derived materials
that biodegrade in seawater. In
addition, the razors provided toguests have been replaced by theones containing renewable biologicalresources consisting of waste parts ofParking

wheatgrass. Furthermore, plastic
Hotelpackaging was changed to paper
packaging in the aim of reducing theamount of plastic waste.

Scheduled to be opened in 2024

Green Grass Field

Biodiversity Initiatives by other hotel operators
The Westin Grand Cayman Seven Mile Beach Resort & Spa
Collaborates with “Beneath the Waves Foundation” who are working with the
Cayman Islands Department of Environment to establish a deep-sea marine
protected area in The Cayman Trench, the deepest point of the Caribbean Sea,
and contributes to ocean conservation through nature-based solutions to climatechange. Furthermore, the hotel provides groups and leisure guests an

Horseback Riding Field

opportunity for turtle releases with “The Cayman Islands Turtle Centre”. Sea
turtles have a positive impact on the marine ecosystem as well as the beach anddune ecosystems. Turtle releases ensure that the turtle is older when it reaches
the water, increasing their survival rate, and contributing to a healthy marine
environment.

Invincible Investment Corporation | ESG Report29Society
MHM has implemented various initiatives to contribute to local communities in many areas.
Opening of "Narita Hospitality Academy"
Opened "Narita Hospitality Academy" on June 1, 2023, in Narita city, Chiba prefecture, which is a post-arrival training
facility specializing in hospitality internships for foreign technical interns. The training contributes to the development of
hospitality personnel by providing a general Japanese language program as well as the spirit and culture of Japanesehospitality, in the aim to make them acquire the knowledge and specialized skills as hotel staff. In 2023, total 60
interns from Vietnam and Philippines participated in the training. In 2024, interns from Nepal, Vietnam and Myanmar
are expected to complete the training and start to work at MHM managed hotels.
“Summer Vacation Kids Hotelier Experience”
Provided opportunities for children up to elementary school age to experience hotel work such as chef, pâtissier,bartender, and front desk staff with lectures by professionals in August 2023 at 11 hotels in 10 prefectures. Uponcompletion of the course, a certificate was issued making this experience a good souvenir of their summer vacation orfor summer vacation independent research project to be submitted at school. It is an enjoyable opportunity to learn
about the behind-the-scenes of a hotel and hotel work, which they would not normally have the chance to see.
The hotels owned by INV where the events were held: Art Hotel Morioka, Kamenoi Hotel Beppu, Art Hotel Ishigakijima
Promotion of local ingredients (local production for local consumption)
・ Hotel MyStays Gotanda Station :Started to serve original course menu from November 2023 at "Trattoria VICINO", a restaurant located on the 2nd
floor. The menu uses vegetables cultivated around Tokyo called "Edo-Tokyo vegetables" and fresh fish from Tokyo bay
to promote "local production for local consumption" which contributes to reduce environment burden created fromlogistics etc. and to revitalize the local community.
Collaboration with local community
・ Hotel MyStays Matsuyama :Organized an event for two days where students from Kawahara college, a college in Matsuyama city, work as
restaurant staff at "Setouchi Bar La Terrazza" located on the 1st floor. The collegeʼs desire to nurture the next
generation and the hotelʼs wish for students to make the most of their academic experience as part of the internshipprogram in harmony with each other.
Participation in Local Activities
・ Clean-up activities of the surrounding roads and rivers: Hotel MyStays Matsuyama
・ Official partner agreements to support community-based sports club teams: Hotel MyStays Haneda
・ Support and cooperation for community festivals, community disaster prevention activities, and public healthactivities: Hotel MyStays Kanda and many others
SDGs Event "Mystays Charity Market"
Expanded the “Matching Project”, a project that had been implemented among 145 group hotels to reuse products asmuch as possible, to the general public and organized events in the group hotels (August 2023 and February 2024) tosell items such as tableware, furniture, appliances, etc. that are no longer used in the establishments due torenovation or renewal. Profits made from two events were donated to Japan Ecotourism Society and Plan International,
an International NGO.

Invincible Investment Corporation | ESG Report30Initiatives for
Governance

Invincible Investment Corporation | ESG Report31

While the executive director of INV concurrently serves as the representative director at CIM, two supervisory directors (an attorney and a certified public account) oversee theexecution of the executive director's duties via the Board of Directors of INV.

Compliance Initiatives and System

Decision Making Body of Investment Management
Decision Process of Investment Policy

CIM has a compliance officer who is responsible for compliance with laws, regulations andDraft by Asset Management Department

other relevant matters as well as overall management of transactions with sponsor related

Instruction for change orsuspension

parties. Moreover, CIM has in place a compliance committee which, chaired by suchcompliance officer, is in charge of deliberating on compliance with laws, regulations andDeliberation and Decision by Compliance
Committee

other relevant matters as well as transactions with sponsor related parties.
In addition to the President and CEO of CIM, the full-time directors, the General Managerof the Planning Department, and the auditor (an observer), Compliance Committee
meetings are attended by an outside expert (an attorney) who, sitting in as a committee
member, conducts rigorous deliberations on the existence of conflicts of interest intransactions with sponsor related parties, remedial and preventive measures against

Indication of theissues, etc.,
Instruction forcorrection orwithdrawal, etc.

Deliberation and Resolution by Investment
Committee

inappropriate behavior in compliance with laws and regulations, and identification ofinterested parties related to other operations, as well as strict examinations with respect

Resolution by the Board of Directors

to INV's compliance with laws and regulations. No resolution will be adopted unless the(In the case of the decision about or change of the investment policy related
to the restriction of the transaction with sponsor and related parties)

outside expert agrees.

Approval by the Board of Directors of INV

The roles of the Compliance Officer and the Compliance Committee in decision-making ofindividual operations are extremely important, and in addition to deliberations andapprovals related to the acquisition, sale and management of individual properties,

Decision Process of the Property Acquisition
Selection of the Candidate Property,
Due Diligence and Draft Acquisition Plan
By Asset Management Department

deliberations and approvals by the Compliance Committee are indispensable in investment
policy, and unless the approval of the Compliance Committee is obtained, deliberations
cannot proceed with the Investment Committee, the Board of Directors, and the Board of

Instruction for change orsuspension

Directors of INV, ensuring the effectiveness of the internal checking function. In addition,

Deliberation and Decision by Compliance
Committee

CIM has established "Accident Handling Regulations" with the aim of handling accidents
legally and promptly to resolve early and prevent recurrence, to prevent the loss of CIM'scredibility and the expansion of losses, and to ensure the soundness of management.

Indication of theissues, etc.,
Instruction forcorrection orwithdrawal, etc.

Deliberation and Resolution by Investment
Committee

Resolution by the Board of Directors(In the case of the decision related to the transaction
with sponsor and related parties)

Approval by the Board of Directors of INV

Invincible Investment Corporation | ESG Report32About Directors
Directors at the end of the Reporting Period are listed below.
Fiscal Period ended June 30, 2023 (January 1, 2023 to June 30, 2023)

Position

Name

Executive
Director

Naoki Fukuda

Position

Name

Executive
Director

Naoki Fukuda

President and CEO, Consonant Investment
Management Co., Ltd. (current position)―

Yoshihiro Tamura

Attorney, Shiba-Daimon Law Office
Statutory Auditor, BEQONE PARTNERS, Inc.
(current position)

2,400

Hiroyuki Fujimoto

Certified Public Accountant, CPA Fujimoto
OfficeOutside Auditor, BRYCEN Co., Ltd. (current
position)
Outside Director, the Audit & Supervisory
Committee Member, NEO MARKETING INC.
(current position)

2,400

―

20,900Supervisory
Director

AuditorErnst & Young
ShinNihon LLC

Concurrent responsibilities

Fiscal Period ended December 31, 2023 (July 1, 2023 to December 31, 2023)

Directorsʼ remunerationfor operating period(JPY thousand)Yoshihiro Tamura

Supervisory
Director

Hiroyuki Fujimoto(Note 1)

Marika Nagasawa(Note 1)

(Note 2)

(Note 1) Executive and supervisory directors do not hold INVʼs units either in their names or in the names of third
parties. In addition, while they may be directors of organizations not listed above, those organizations as wellas those listed above have no conflicts of interest with INV.
(Note 2) The auditor's remuneration includes the remuneration for the preparation of a comfort letter in connection with
the issuance of investment corporation bonds.

AuditorErnst & Young
ShinNihon LLC(Note 2)

Concurrent responsibilities

Directorsʼ remunerationfor operating period(JPY thousand)President and CEO, Consonant Investment
Management Co., Ltd. (current position)―

Attorney, Shiba-Daimon Law Office Statutory Auditor,
BEQONE PARTNERS, Inc. (current position)

2,400

Certified Public Accountant, CPA Fujimoto OfficeOutside Auditor, BRYCEN Co., Ltd. (current position)
Outside Director, the Audit & Supervisory Committee
Member, NEO MARKETING INC. (current position)

2,400

Certified Public Accountant, Avantia GP
Marika Nagasawa Accounting Firm―

400

41,900(Note 1) As of December 21, 2023, Takushi Fujimoto, a former supervisory director, resigned the position of supervisory
director and Marika Nagasawa assumed the position.
(Note 2) The auditor's remuneration includes 1,200 thousand yen for auditing English financial statements and 23,000
thousand yen for non-audit remuneration. In addition, non-audit remuneration to a person belonging to the same
network as the accounting auditor is 7,742 thousand yen.
(Note 3) Executive and supervisory directors do not hold INVʼs units either in their names or in the names of third parties.
In addition, while they may be directors of organizations not listed above, those organizations as well as thoselisted above have no conflicts of interest with INV.

Appropriate Management of Conflicts of Interest
In order to accurately understand the possibility of conflicts of interest in transactions conducted by INV and to properly manage any potential conflicts of interest, CIM has
established the "Regulations on Transactions with Sponsor-related Parties" and the "Manual on Management of Transactions with Sponsor-related Parties" as CIM's voluntary rules,
in addition to regulations imposed by related laws and regulations. CIM has defined interested parties, such as CIM's shareholders, as "Sponsor-related Parties". CIM has definedtransactions with potential conflicts of interest, such as the purchase and sale of properties with sponsor-related parties and the outsourcing of operations for a fee to sponsorrelated parties, as "Transactions with Sponsor-related Parties" and has clearly defined the criteria and procedures for conducting such transactions. In conducting Transactions withSponsor-related Parties, in addition to the approval by the Compliance Committee, including an external expert, prior approvals by the Board of Directors of INV are required toensure an objectivity in deliberation regarding conflicts of interests. In such agenda, only two supervisory directors (a lawyer and a certified public accountant) will participate in thevote, and the executive director who concurrently serves as the representative director of CIM will not participate in the vote as he is a special interested party.
CIM properly manages conflicts of interest by following such established procedures.
Please refer to the link below for CIM's decision-making process.
https://www.invincible-inv.co.jp/en/profile/amcompany.html

Anti-Corruption Initiatives
CIM stipulates in its Compliance Rules and Compliance Manual that all of its officers and employees are prohibited from providing favors, benefits, etc. to civil servants or persons
deemed as such. Furthermore, it stipulates that regardless of whether business-related transactions take place, it is prohibited to provide or accept favors, benefits, etc. that exceed
the scope of courtesy based on socially accepted conventions.

Invincible Investment Corporation | ESG Report33

Measures against Anti-Social Forces
CIM shall maintain a firm stance to seclude and eliminate itself from any relationship with anti-social forces* in order to retain credibility of financial instrument business operatorswith the public and secure appropriate and sound business operations as a financial instrument business operator. CIM shall also maintain a firm stance to respond, as anorganization, to any unjustified demands in cooperation with external organizations such as the police and lawyers. Regarding the above matters, CIM shall comply with the"Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." issued by the Financial Services Agency and the "Guideline for How Companies
Prevent Damage from Anti-Social Forces" (agreed upon at the Ministerial Meeting Concerning Measures Against Crime on June 19, 2007). At the same time, we will internally
stipulate actual procedures such as preventive measures and handling strategies in our "Compliance Rules" and "Handling Guidelines for Pre-confirmation of Business
Partners/Clients (investigation of anti-social forces)" as well as educate and thoroughly inform officers, employees, etc. through compliance training and such.
* As defined in the government's "Guideline for How Companies Prevent Damage from Anti-Social Forces," and "Outline of Measures against Organized Crime," a circular notice issued in the name of the Deputy
Commissioner General of the National Police Agency.

Initiatives Relating to Anti-Money Laundering and Countering the
Financing of Terrorism
In recent years, the importance of countermeasures to anti-money laundering and financing of terrorism (hereinafter referred to as "money laundering, etc.") as an issue that needs
to be addressed by both Japan and the global society has been growing. In collaboration with the relevant government ministries and agencies, financial institutions have been
striving to maintain sound financial systems by enhancing their management systems for cutting off the flow of funds connected with criminals, terrorists, etc. (i.e., money
laundering).
Recognizing the importance of measures against money laundering, etc., CIM has formulated the "Provisions Concerning the Act on Prevention of Transfer of Criminal Proceeds" andthe "Business Manual Related to the Act on Prevention of Transfer of Criminal Proceeds" to comply with relevant laws and regulations, and to appropriately carry out prescribed
procedures such as various confirmation procedures, as well as audits conducted by the supervising officer (compliance officer).

Establishment of Whistleblower System
With an aim to contribute to strengthening compliance management, CIM has established a "Compliance Consultation Desk" which allows its officers and employees (including
contract and temporary employees) to report or discuss fraudulent acts. The "Compliance Consultation Desk" targets inappropriate acts in terms of compliance as the subject forreports and consultation, and protects the whistleblowers in accordance with the Whistleblower Protection Act, (including prohibition of disadvantageous treatment, responding toanonymous reports and keeping the content confidential). The Compliance Consultation Desk detects and corrects reported fraudulent acts as well as provides feedback to theinformant (excluding cases of anonymity) and if the Compliance Officer deems it necessary, the Compliance Committee will meet to discuss the response. In addition to an in-house
contact point, an external attorney is appointed as the reporting contact point in order to secure effectiveness of the whistleblower system.

Invincible Investment Corporation | ESG Report34Third Party Assessment /ESG Data

Invincible Investment Corporation | ESG Report

35

GRESB Real Estate Assessment
GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social,and Governance) integration of real estate companies and funds. It was founded in2009 by a group of major European pension funds who played leading roles inlaunching Principles for Responsible Investment (PRI). The GRESB Real Estate
Assessment is characterized by evaluating sustainability initiatives of real estatecompanies, REITs, and real estate funds, rather than targeting individual real estate.
In the 2023 GRESB Real Estate Assessment, INV received a "3-Star" GRESB Rating,which is based on overall GRESB scores and its quintile position among participants.
INV was also awarded a "Green Star" designation for the third consecutive year byachieving high performance in both the "Management Component" that evaluates
policies and organizational structure for ESG promotion, and the "Performance
Component" that assesses environmental performance and tenant engagement ofproperties owned.
Further, INV was highly evaluated for its ESG information disclosure efforts andreceived an “A Level” the highest level for GRESB Public Disclosure for the third
consecutive year, which assesses the breadth of ESG disclosure.

CASBEE Certification for
Buildings and Certification for
CASBEE for Real Estate
CASBEE is a method that comprehensively assesses the quality of a building, andevaluates features such as interior comfort and scenic aesthetics, in consideration ofenvironment practices including use of materials and equipment that save energy or
achieve smaller environmental loads.
CASBEE Certification for Buildings (Existing Buildings) scores buildings based on theenvironmental quality and the environmental load reduction of buildings that are at least
one year old after completion. Assessment results by CASBEE are indicated on a scalewith the following five ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★",
Rank B- "★★", and Rank C "★".
Certification for CASBEE for Real Estate was developed with the aim of making use of theresults of the environmental assessment of buildings by CASBEE in real estate evaluation.
It scores buildings under each of the evaluation items in five categories, comprising "1.
Energy & Greenhouse Gases", "2. Water", "3. Use of Resources & Safety", "4. Biodiversity& Site", and "5. Indoor Environment". Based on the scores, assessment results are given
one of four ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★", and Rank B"★★".
INV acquired CASBEE Certification for Buildings (Existing Buildings) for three hotels, andCertification for CASBEE for Real Estate for three residential properties.
CASBEE Certification for Buildings (Existing Buildings)

Rank A

Hotel MyStays
Premier Akasaka

Rank B+

Hotel MyStays
Premier Kanazawa

Rank B+

Hotel Epinard Nasu

Royal Parks
ShindenRank A

Royal Parks Seasir
Minami-Senju

Certification for CASBEE for Real Estate
Please refer to the press release for details.
"Notice concerning GRESB Real Estate Assessment Results" dated October 3, 2023
https://www.invincible-inv.co.jp/en/news/upd/140120231003562373.pdf

Rank A

Royal Parks
Momozaka

Rank A

Please refer to the press release for details.
"Notice concerning Acquisition of CASBEE Certification for Buildings,
Certification for CASBEE for Real Estate, and BELS Certification" dated March 31, 2023
https://www.invincible-inv.co.jp/en/news/upd/140120230331540312.pdf"Notice concerning Acquisition of CASBEE Certification for Buildings

Invincible Investment Corporation | ESG Report

and Certification for CASBEE for Real Estate" dated March 25, 2024
https://www.invincible-inv.co.jp/en/news/upd/140120240325558773.pdf

36

BELS Certification
BELS is the third-party certification system that evaluates and certifies the energy-saving performance of a building that the operators are required tomake efforts to display under the Act on Improving Energy Consumption Performance for Architectural Structures. Houses and buildings are evaluatedbased on the value of BEI (Building Energy Index) derived from the primary energy consumption based on the government-designated energy
consumption performance standard of architectural structures. The evaluation result is rated on a five-star scale based on energy conservation
performance (from one star "★" to five stars "★★★★★"), with five stars meaning the highest energy conservation performance. Also, two stars ormore represent that the building meets the existing energy conservation standard.
INV acquired BELS certification for 19 hotels.

★★★★★
Hotel MyStays
Premier Akasaka

Hotel MyStays
Fukuoka Tenjin

Hotel MyStays
Yokohama Kannai

Hotel MyStays
Oita

Hotel MyStays
HanedaHotel MyStays
Premier Kanazawa

Hotel MyStays
Sapporo Station

Hotel MyStays
Fuji Onsen Resort

Hotel MyStays
Kanda

Hotel MyStays
Aomori Station

MyStays Shin-Urayasu
Conference Center

Hotel MyStays
Sakaisuji-Honmachi

Hotel Epinard
Nasu

Hotel MyStays
Hamamatsucho

Hotel MyStays
Midosuji Honmachi

Hotel MyStays
Matsuyama

★★★★

★★★

★★
Hotel MyStays
Kyoto-Shijo

Hotel MyStays
Hotel MyStays
Fukuoka-Tenjin-Minami Hakodate-Goryokaku

Please refer to the press releases for details.
"Notice concerning Acquisition of BELS Certification" dated November 15, 2022
https://www.invincible-inv.co.jp/en/news/upd/140120221115567044.pdf"Notice concerning Acquisition of CASBEE Certification for Buildings, Certification for CASBEE for Real Estate, and BELS Certification" dated March 31, 2023
https://www.invincible-inv.co.jp/en/news/upd/140120230331540312.pdf"Notice concerning Acquisition of BELS Certification" dated January 25, 2024
https://www.invincible-inv.co.jp/en/news/upd/140120240125519286.pdf

Invincible Investment Corporation | ESG Report37

JCR Green Finance Framework
Evaluation

The List of Certified Properties

INV has obtained "Green1 (F)" rating, the highest rating in the "JCR Green Finance

The following is a list of INV's Certified Properties that will meet the eligibility criteria

Framework Evaluation", from Japan Credit Rating Agency, Ltd. ("JCR").

under the Green Finance Framework. (as of March 2024)
PropertyNo.

For details, please refer to followings:
INVʻs Green Finance Framework (Established in August 2023 and amended in June 2024)
https://www.invincible-inv.co.jp/en/upd/framework_202406_ENG.pdf
JCR Green Finance Framework Evaluation:
https://www.jcr.co.jp/en/greenfinance/

Invincible Investment Corporation | ESG Report

Property Name

Acquisition
Price(JPY million)

BELS

CASBEE

D01

Hotel MyStays Kanda

2,851

★★★★

D04

MyStays Shin-Urayasu ConferenceCenter

4,930

★★★

D08

Hotel MyStays Sakaisuji-Honmachi

2,514

★★★

D24

Hotel MyStays Haneda

7,801

★★★★★

D44

Hotel Epinard Nasu

21,002★★★★★

D45

Hotel MyStays Fukuoka Tenjin

8,059

★★★★★

D47

Hotel MyStays Premier Kanazawa

13,761★★★★

D53

Hotel MyStays Sapporo Station

7,880

★★★★

D54

Hotel MyStays Yokohama Kannai

5,326

★★★★★

D57

Hotel MyStays Oita

1,604

★★★★★

D60

Hotel MyStays Premier Akasaka

20,691★★★★★

D66

Hotel MyStays Fuji Onsen Resort

9,405

★★★★

D74

Hotel MyStays Matsuyama

3,098

★★★★★

D87

Hotel MyStays Aomori Station

2,445

★★★★

A103

Royal Parks Momozaka

2,910

A

A104

Royal Parks Shinden

5,024

A

A106

Royal Parks Seasir Minami-Senju

2,683

A

B+

B+

A

38

GRI Standards Content Index
Statement of use

INV has reported the information citied in this GRI content index for the period from April 1, 2023 to March 31, 2024 with reference to the GRI Standards.

GRI 1 used

GRI 1: Foundation 2021

GRI 2: General Disclosures 2021
DISCLOSURE

The organization and its
reporting practices

Activities and workers

Governance

Strategy, policies andpractices

Stakeholder engagement

Web

ESG report2-1

Organizational details

Profile > Profile & History

Profile & History (P4)2-2

Entities included in the organizationʼs sustainability reporting

Profile > Profile & History

Profile & History (P4)2-3Reporting period, frequency and contact point

2-4

Restatements of information

2-5

External assurance

2-6

Activities, value chain and other business relationships

2-7

Employees

2-9
2-10
2-11

Editorial Policy (P2)
No revisions or corrections
Third-Party Guarantee (P42)

Governance structure and composition

Profile > Organizational Structure
Initiatives for Society > Asset Management Company Initiatives for
Employees
Initiatives for Governance > Compliance Initiatives and System

Policy & Strategy (P5)Asset Management Company Initiatives for Employees(P25)
Compliance Initiatives and System (P32)

Nomination and selection of the highest governance body

Initiatives for Governance > Compliance Initiatives and System

Compliance Initiatives and System (P32)

Chair of the highest governance body

Initiatives for Governance > Compliance Initiatives and System

2-12Role of the highest governance body in overseeing themanagement of impacts

Sustainability Policy and Promotion Structure
Initiatives for Governance

2-13

Delegation of responsibility for managing impacts

Sustainability Policy and Promotion Structure
Initiatives for Governance

2-14

Role of the highest governance body in sustainability reporting

Sustainability Policy and Promotion Structure

Compliance Initiatives and System (P32)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)
Initiatives for Governance (P31-34)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)
Initiatives for Governance (P31-34)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)

2-15

Conflicts of interest

2-16

Communication of critical concerns

Initiatives for Governance > Appropriate Management of Conflicts ofInterest
Initiatives for Governance > Compliance Initiatives and System

2-17Collective knowledge of the highest governance body

Sustainability Policy and Promotion Structure
Initiatives for Governance

2-19

Remuneration policies

Initiatives for Governance > About Directors

2-20

Process to determine remuneration

Articles of Incorporation
Initiatives for Governance > About Directors

2-22Statement on sustainable development strategy

Appropriate Management of Conflicts of Interest (P33)
Compliance Initiatives and System (P32)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)
Initiatives for Governance (P31-34)
About Directors (P33)
About Directors (P33)
Message from Management (P4)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)
Initiatives for Governance (P31-34)
Sustainability Policy (P8)
Promotion Structure of Sustainability (P9)

2-23

Policy commitments

Sustainability Policy and Promotion Structure
Initiatives for Governance

2-24

Embedding policy commitments

Sustainability Policy and Promotion Structure

2-25

Processes to remediate negative impacts

Complaint Resolution System (Japanese only)

2-26

Mechanisms for seeking advice and raising concerns

Initiatives for Governance > Establishment of Whistleblower System

Establishment of Whistleblower System (P34)

2-27Compliance with laws and regulations

Compliance Initiatives and System (P32)

2-28

Membership associations

Initiatives for Governance > Compliance Initiatives and System
Initiatives to Address Climate Change > Support for the TCFD
Recommendations

2-29

Approach to stakeholder engagement

Invincible Investment Corporation | ESG Report

Initiatives for Society

Support for the TCFD Recommendations (P18)
Initiatives for Society (P23-26)
Initiatives by Hotel Operator - Society (P30)39

Economic performanceGRI 201: Economic
Performance 2016
GRI 203: Indirect Economic
Impacts 2016
GRI 205: Anti-corruption
2016
GRI 206: Anti-competitive
Behavior 2016

201-2

DISCLOSURE
Financial implications and other risks and opportunities due toclimate changeWeb

ESG report

Initiatives to Address Climate Change

Initiatives to Address Climate Change (P17-22)

203-1

Infrastructure investments and services supported

Initiatives for Society > Contribution to Disaster Prevention

Contribution to Disaster Prevention (P24)205-2

Communication and training about anti-corruption policies andprocedures

Initiatives for Governance > Anti-Corruption Initiatives

Anti-Corruption Initiatives (P33)

During the reporting period, there were no legal actions received
concerning anti-competitive behavior, anti-trust, or monopolistic
practices.

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

301-2

Recycled input materials used

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

302-1

Energy consumption within the organization

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

302-3

Energy intensity

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

302-4

Reduction of energy consumption

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

302-5

Reductions in energy requirements of products and services

Initiatives for Environment > Initiatives for Green Buildings

Initiatives for Green Buildings (P16)

303-2Management of water discharge-related impacts

Initiatives for Environment > Environmental Targets

Environmental Management System (EMS) (P13)303-4

Water discharge

Initiatives for Environment > Initiatives for Green Buildings

Initiatives for Green Buildings (P16)303-5

Water consumption

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

304-3

Habitats protected or restored

Initiatives for Environment > Initiatives by Hotel Operator

Biodiversity Initiative（P29）305-1

Direct (Scope 1) GHG emissions

Initiatives for Environment > Greenhouse Gas Emission and Intensity

Environmental Targets (P11-12)

305-2

Energy indirect (Scope 2) GHG emissions

Initiatives for Environment > Greenhouse Gas Emission and Intensity

Environmental Targets (P11-12)

305-3

Other indirect (Scope 3) GHG emissions

Initiatives for Environment > Greenhouse Gas Emission and Intensity

Environmental Targets (P11-12)

305-4

GHG emissions intensity

Initiatives for Environment > Greenhouse Gas Emission and Intensity

Environmental Targets (P11-12)

305-5

Reduction of GHG emissions

Initiatives for Environment > Environmental Targets

Environmental Targets (P11-12)

306-3

Waste generated

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

306-4

Waste diverted from disposal

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

306-5

Waste directed to disposal

Initiatives for Environment > Environmental Performance

Environmental Performance (P14-15)

308-1

New suppliers that were screened using environmental criteria

Sustainability Policy and Promotion Structure > Sustainable
Procurement Policy

Sustainable Procurement Policy (P9)401-1

New employee hires and employee turnover

401-3

Parental leave

403-6

Promotion of worker health405-1

Diversity of governance bodies and employees

414-1

New suppliers that were screened using social criteria

416-2

Incidents of non-compliance concerning the health and safety
impacts of products and services

417-2

Incidents of non-compliance concerning product and service
information and labeling

Sustainability Policy and Promotion Structure > Sustainable
Procurement Policy
During the reporting period, there were no incidents of noncompliance concerning the health and safety impacts of products andservices
During the reporting period, there were no incidents of noncompliance concerning product and service information and labeling

417-3

Incidents of non-compliance concerning marketing
communications

During the reporting period, there were no incidents of noncompliance concerning marketing communications

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

During the reporting period, there were no substantiated complaints
concerning breaches of customer privacy or loss of customer data

Environment
DISCLOSURE
GRI 301: Materials 2016

GRI 302: Energy 2016

GRI 303: Water andEffluents 2018
GRI 304: Biodiversity 2016

GRI 305: Emissions 2016

GRI 306: Waste 2020
GRI 308: Supplier
Environmental Assessment
2016

Web

ESG reportSocialDISCLOSURE
GRI 401: Employment 2016
GRI 403: Occupational
Health and Safety 2018
GRI 405: Diversity andEqual Opportunity 2016
GRI 414: Supplier Social
Assessment 2016
GRI 416: Customer Healthand Safety 2016
GRI 417: Marketing andLabeling 2016
GRI 418: Customer Privacy
2016

Invincible Investment Corporation | ESG Report

Web
Initiatives for Society > Asset Management Company Initiatives for
Employees
Initiatives for Society > Initiatives for health and well-being of each
employee
Initiatives for Society > Asset Management Company Initiatives for
Employees
Initiatives for Society > Asset Management Company Initiatives for
Employees

ESG report
Asset Management Company Initiatives for Employees(P25)
Initiatives for Health and Well-being of each Employee(P26)
Asset Management Company Initiatives for Employees(P25-26)
Asset Management Company Initiatives for Employees(P25-26)
Sustainable Procurement Policy (P9)40Third-Party Guarantee/
Disclaimer

Invincible Investment Corporation | ESG Report41Third-Party Guarantee
To ensure the reliability of the reported figures, INV has
obtained third-party guarantee for environmental performancedata from an independent third-party organization,
Sustainability Accounting Office, Inc.

Invincible Investment Corporation | ESG Report42

Disclaimer
This material is for informational purposes only and not for solicitation to invest in, or recommendation to buy, certain products of INV. You should consult with securities firms if
you intend to purchase investment units of INV.
This material does not constitute or form a part of any disclosure document or an asset management report required by the Financial Instruments and Exchange Act of Japan orregulations thereunder, the Investment Trust and Investment Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial Instruments Exchanges orother related rules and regulations.
This material contains forward-looking statements and these statements are based on certain assumptions and premises in consideration of the available information as of the dateof this material; therefore there may be currently unknown risks and uncertainties in such statements. The contents of forward-looking statements are subject to such risks,
uncertainties, assumptions and other factors. Accordingly, there is no assurance as to actual business performance, results of operations or financial conditions.
INV has given its attention that the information provided herein does not contain mistakes or omissions. However, there is no assurance given as to the accuracy, certainty orcompleteness, validity or fairness of any such information and such information is subject to revision or retraction without prior notice.

Invincible Investment Corporation | ESG Report43