Information Disclosure Based on the TCFD Recommendations
TCFD Recommendations for Information Disclosure
The TCFD recommends that information be disclosed in line with the four disclosure elements of “governance,” “strategy,”“risk management,” and “metrics and targets,” to accurately understand how risks and opportunities associated with climatechange affect corporate management, including financial management. The Company will work to further expand information
disclosure based on these four information disclosure areas recommended by the TCFD.

i.

GovernanceWe recognize that addressing climate change and the environment is an important management issue. In coordination
with the Risk Verification Committee, the Sustainability Committee compiles information on climate change-relatedrisks and opportunities, examines response measures, and makes periodic reports to the Board of Directors. The Boardof Directors oversees the progress of initiatives related to climate change issues that have been discussed and reportedby the executive departments, and issues related to these initiatives are discussed at least once a year.
The President Representative Director receives reports on the status of climate change-related initiatives from theadvisory bodies: the Sustainability Committee and the Risk Verification Committee and assumes the highest
responsibility for risk assessment and management, including climate change risks.

Sustainability Promotion System

Meetings and Roles in the Sustainability Promotion System
Organizations andcommittees

Roles

Board of Directors

Receives reports from the Sustainability Committee on the status of and measures to manage
climate change-related risks and supervises the progress of measures.

President
Representative
Director

Receives reports on the status of overall sustainability activities, including climate changerelated activities, from the Sustainability Committee, an advisory body. Has the highest
responsibility for risk assessment and management, including climate change risks.

Risk Verification
Committee

As an advisory body to the President Representative Director, discusses comprehensive risk
assessment, including climate change. Examines the risks reported by the Risk Management
Committee and instructs the business divisions to take measures through the Risk Management

1Committee.
Risk Management
Committee

Discusses comprehensive management of and measures against risks in operations, including
climate change. Meetings held once a month.

Sustainability
Committee

As an advisory body to the President Representative Director, promotes sustainability activities,including climate change countermeasures. In coordination with the Risk Verification
Committee and the Risk Management Committee, summarizes risks and opportunities related
to climate change etc. for each division and Group company, considers measures to be taken,
and makes periodic reports to the Board of Directors. Meetings held four times a year.

ii.

Strategy
Based on the TCFD recommendations, we conducted scenario analysis to identify climate change-related risks andopportunities. Through scenario analysis, the 1.5°C and 4°C scenarios were defined based on scientific evidence fromthe International Energy Agency (IEA) and other sources, and the importance of climate-related risks and opportunities
that could affect operations as of 2030 was assessed.

Defining Scenarios
Scenarioconfiguration
World view

Reference scenario

Characteristics

1.5°C scenario

4°C scenario

The Japanese government will promotesevere measures against climate change,
including the introduction of a carbon tax,
which will lead to drastic social changes, andregulations on plastic and climate changerelated information disclosure will berequired.
Damage from natural disasters such as
flooding is limited.
IEA The Net-Zero Emissions by 2050
Scenario (NZE) / IEA World Energy Outlook
2021/ IEA World Energy Outlook 2018/ IPCC
AR6 SSP1-1.9
Transition risks related to policies, etc. arelikely to become apparent.

There will be no climate action by the government
beyond current measures and no climate change
action is required.
Abnormal weather such as droughts and floods
due to rising temperatures will become apparent,
sites will be damaged, and response costs andrecovery costs at the time of the disaster areexpected.
IEA World Energy Outlook 2021/ IEA World
Energy Outlook 2018/ IPCC AR6 SSP5-8.5

Physical risks associated with abnormal weather,etc. are likely to become apparent.

Identification and assessment of risks and opportunities
We assessed the impact of climate change-related transition and physical risks on our Real Estate Revitalization Business andReal Estate Service Business. A variety of items were considered, from policy and legal regulations to market changes fortransition risks, and acute and chronic physical risks for physical risks. We will respond to risks and opportunities that wejudge to have a particularly significant impact on our company.
Scope: Real Estate Revitalization Business and Real Estate Service Business
Degree of impact
High: Very significant impact (> 19% of net sales)
Medium: Significant (10-19% of net sales)
Small: Limited impact (<10% of net sales)2Term of risk occurrence:
Short term: Within one year
Medium term: within 1 to 5 years
Medium to long term: Within five to ten years
Long term: Over 10 years

3List of risks and opportunities
Of the risks and opportunities recognized by the Company, those with a “medium” or higher impact on the business are listed.
Types of risks and opportunities
Risk

Transition
risk

Physicalrisk

Policies,
laws andregulations

Increased tax burden due tolarge increase in carbon tax.
Increased cost of raw
materials, which have a highemission intensity (steel,cement, etc.), due to large
increase in carbon tax.
Additional capital investment
costs due to increased energy
efficiency standards to be met
through renovations.

Reputation

Stakeholder concerns aboutpassive ESG responses.

Acute

Loss of sales and increase inrestoration costs from theinterruption of businessactivities caused by damage tobusiness sites by naturaldisasters.
Occurrence of flood damage toCompany-owned real estate
due to high tides and heavy
rains caused by rising sealevels.
Increase in cost of air
conditioning equipment andincrease in energy costs in
Company-owned real estate.
Increase in selling prices toasset holders and building
owners by improving theenvironmental performance ofproperties through replanning.

Acute

Chronic

Opportunity

Details of risks andopportunities

Products and services

Impact on business andfinancial results

Term of risk
occurrence

1.5℃

4℃

Medium-Medium term

Medium-Short term

Medium-Short term

Medium-Medium to longterm

Small

MediumShort term

Small

MediumShort term

Small

MediumMedium term

MediumMediumShort termiii. Risk management
To build a sustainable system, the Company has established regulations on company-wide risk management andestablished the “Sustainability Committee” to address overall sustainability issues, including climate change issues. Forrisks related to climate change, the Risk Verification Committee evaluates the risks reported by the Risk Management
Committee. The risks that have been identified and evaluated are examined by the Sustainability Committee, and theneach division or Group company responds to these risks. In addition, the Board of Directors receives a report from theRisk Management Committee on the status of and measures to comprehensively manage risks, including climate changerisks.
4iv. Metrics and Targets
The Company calculates greenhouse gas emissions as an indicator for evaluating climate change-related risks andopportunities. In fiscal 2021 and 2022, Scope1 “Fuel use (CO2)”, Scope2 “Use of electricity supplied by others (CO2)”,
and Scope3 “Other indirect emissions (CO2)” were included in the calculation. We will continue to monitor ourgreenhouse gas emissions in the future and will establish a system and set targets so that we can expand the scope ofmonitoring and reduce CO2 emissions in our activities.
Greenhouse Gas Emissions(Consolidated)
Fiscal 2021 annual emissions (t-CO2)

Fiscal 2022 annual emissions (t-CO2)

Scope1 *1

4,088.5

3,237.9

Scope2 *2

6,692.5

7,633.7

195,123.0

152,939.0

Scope3 *3(Non-consolidated)

Fiscal 2021 annual emissions (t-CO2)

Fiscal 2022 annual emissions (t-CO2)

Scope1 *10.0

0.0

Scope2 *2

196.3

195.1

Scope3 *3
195,123.0
152,939.0*1 Emissions from gas and gasoline use *2 Emissions from electricity use *3 Other indirect emissions
Calculation period: FY 2021 (April 2021 to March 2022), FY 2022 (April 2022 to March 2023)
To be disclosed: domestic and international consolidated subsidiaries (Scope1 and 2), Real Estate Revitalization Business(Scope3)
Calculation method: market-based*Calculation methods are based on location (calculated using the average emission intensity for Japan as a whole) andmarket (calculated using the emission intensity of each electric power company). We adopted the latter market-based
method.,Emission factors used in Scope2: 2020 and 2021 emissions factor results for each electric utility

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