Transparency of sustainability risk policies (SFDR Article 3 Disclosure)

KJR Management
Introduction
KJR Management is an asset management company that specializes in Japanese real estate investment.
We manage two J-REITs: Japan Metropolitan Fund Investment Corporation (“JMF”), which invests in retailproperties, office buildings, residences and hotels, and Industrial & Infrastructure Fund Investment
Corporation (“IIF”), which focuses on both industrial and infrastructure properties.
As one of the largest asset management companies in Japan, we put the utmost importance on dialogue
with our unitholders and strive to fulfill our fiduciary duties reliably. We also aim to enhance unitholder
value under our corporate mission of “Always create new values, for people, the community and theworld”. Through real estate investment management, we create new demand in our society and newvalue that exceeds expectations.
We are making the following disclosures in accordance with Article 3 of Regulation (EU) 2019/2088 on
sustainability-related disclosures in the financial services sector (the “SFDR”).
Sustainability Policy and Goals
Our ‘Sustainability Strategy’ is practicing responsible property investment and contributing to solve
global issues. To clarify our ambition, we have established environmental, social and governance (“ESG”)
key performance indicators (“KPIs”) and goals, which iterate our targets in relation to the reduction ofadverse environmental impacts, the creation of social value, and the practice of sound stakeholderfocused asset management. Among our top sustainability concerns, climate change is a material topic,
given both its proximity to real estate, and its topical and pressing nature in the international arena. We
set targets for greenhouse gas emissions reduction toward the realization of net-zero emissions by 2050,
which states our goal to reduce absolute Scope 1+2 emissions by 42% by 2030 (compared to a 2020
baseline for JMF, to a 2021 baseline for IIF) and declaration for net-zero absolute GHG emissions
throughout the entire value chain by 2050. These targets are certified by SBTi.
Our materiality assessment and the setting of goals in relation to the top material issues was conducted
in response to the Sustainable Development Goals (“SDGs”) issued in 2015 by the United Nations. We
contribute to 10 of the 17 SDGs through property management and human capital management. As areal estate asset management company, it is absolutely essential that we ensure the quality of thebuildings we manage through certifications, and that we address issues relating to climate change andenergy efficiency. Also, we strive to improve building comfort and convenience and to raise the awarenessabout sustainability among tenant employees. Next, in addition to responding to climate change andenergy efficiency, we must work together with our tenants and local community members to address theissues of efficient water use and waste disposal. By doing so, we will work to establish partnerships andbuild green communities.
Sustainability integration
Sustainability Policy
Based on the Responsible Property Investment Policy (established in June 2013, renamed to"Sustainability Policy“ in September 2023), we implement RPI (Responsible Property Investment) that
integrates environmental, social, and governance elements into property investment. Owning andmanaging properties in an environmentally-friendly and socially responsible manner adds value to an
investment by limiting the risks of regulatory non-compliance and losing its competitive position in themarket, by making a property more appealing to tenants and purchasers and by reducing expenses andimproving returns. Therefore, we believe that this is an important strategy for us. We also believe thatthe strategy will bring about a more desirable result for our environment and society.
Our Commitment
・ Through dialogue and cooperation with diverse stakeholders, including tenants and localcommunities, we contribute to the creation of a sustainable society.
・We form a diverse and inclusive organization that attracts and engages talent from a variety ofbackgrounds, and provide stable investment management services.
・We provide investors with more stable returns by incorporating the concept of RPI into our asset
management strategies.
Our RPI strategy is integrated into the asset management of JMF and IIF and is implemented by all
operational functions of the company during the entire ownership cycle, from its acquisition to the asset
management, marketing, renovation and maintenance through sale.
We are implementing our RPI strategy in our investment and management process as follows:・Investment Decisions-

Incorporate environmental and social risks and opportunities into the evaluation criteria when
acquiring, selling or operating properties-

Integrate RPI strategies, but not at the expense of long-term client financial performance

・Refurbishment-

Incorporate RPI strategies into the design and financial analysis of all property renovations-

Evaluate obtaining certifications, such as for environmental performance (green buildingcertifications etc.) or social performance (measures considering diversity), applicable for each
property type and location prior to refurbishment to expedite approval process and enhance
the property's competitive position to maximize occupancy, rents and tenant quality-

Engage with planners and other external project partners and consultants to achieve objectives

・Operations and Maintenance-Define and implement best practice measures (priority on no costs and low costs) to improveenergy efficiency, water conservation and waste management for all operating assets in orderto promote sustainable practices-

Reduce operating expenses and thereby increasing property values-

Evaluate obtaining certifications, such as for environmental performance (green buildingcertifications etc.) or social performance (measures considering diversity), applicable for each
property type and location in order to enhance the property's competitive position and tomaximize occupancy, rents and tenant quality-Monitor changes in regulations and laws in order to adopt and implement RPI strategies-Collaborate with tenants, property managers and suppliers of services and materials to achieve
objectives

Product Level Sustainability Risk Management and Potential Risk Mitigation
Our RPI strategy is integrated into the asset management of JMF and IIF and is implemented by all of ouroperational functions during the entire ownership cycle, from the acquisition of the asset to the ongoingasset management, marketing, renovation and maintenance, through to sale, in order to manage
product level sustainability risk and migrate potential risk.
Reporting and Monitoring
We monitor the performance and impact of sustainability factors including sustainability risks throughour Sustainability Committee. The Sustainability Committee established in January 2020 is the body thatapproves resolutions concerning sustainability policies, strategies, and systems, based on theSustainability Policy. It also functions as a body that shares information on the status of activities,valuation results, and analysis of the sustainability of the investment corporations. Details of matters
resolved by the Committee are also reported to our Board of Directors.
We are committed to delivering our best results through an enhanced sustainability promotion structure,
where the Sustainability Committee plays a central role in formulating strategies and monitoring theactivities of our two investment corporations (JMF and IIF). This management structure enables us todeliver on our mission to create value that exceeds the expectations of our stakeholders.
By monitoring the fund’s performance and impact of sustainability factors, we constantly seek to improve
the ESG consideration of investments, such as introducing solar power generation, renewable energy orLED lighting. The progress of the annual goals set by each fund as well as the sustainability efforts ofeach fund will be reported to the Sustainability Committee, meetings of which are held once a quarter.
Our policy on integration of sustainability risks and factors are required to be reviewed annually and anyamendments will be submitted for approval to the Sustainability Committee.
Governance
Our Sustainability Committee aims to meets once a quarter to discuss a range of issues relating tosustainability and ESG, including our progress in relation to our sustainability targets and the overall
direction of our sustainability policies and strategies. Specific matters which are discussed include:-

Company's and Investment Corporations' sustainability policies, strategies, and systems-

Establishment and change of the Company's and Investment Corporations' materiality-

Company's and Investment Corporations' sustainability objectives-

Joining environment-related organizations by the Company and Investment Corporations-Framework that the Investment Corporations establish as an execution requirement when executing
sustainable finance and identification of the target assets which do not have a criteria for certification
by a third-party-

Approval of the of the Company's annual reports on sustainability-

Other matters deemed necessary by the chairperson

We have appointed sustainability officers in each related division are responsible for driving activitiesaligned with our sustainability goals. In addition, sustainability officers lead and hold meetings asnecessary to discuss and review Sustainability-related issues and promotion methods in detail at theworking level (hereinafter referred to as “subcommittees”), either within the division or in cooperation
with other divisions. At these subcommittee meetings, individual issues are discussed, and informationis shared to raise awareness and understanding of the issues among those in charge, and to integratesustainability considerations into the daily investment and management process.