ESG Report2023
Building a S ustainable SocietyMitsui Fudosan Group’s
ESG / Sustainability 2023
Management's Commitment…………………………………………… 2Group Action Plan to Realize Decarbonized Society………… 7
FY2022 Initiatives to Realize Decarbonized Society… …… 9

ESG at the Mitsui Fudosan Group26

Policy for Addressing ESG Issues at the Mitsui Fudosan Group……………… 26
Sustainability Promotion Framework… ……………………………………… 32
ESG-related Objectives (KPI) of the Group and Progress in Achieving Them…… 33
Declarations to Society and Participation in International Initiatives……… 35
External Evaluation of Sustainability… ……………………………………… 37

Environment

38

Environmental Initiatives Policy………………………………………………… 39
Climate Change… ………………………………………………………………… 41
Water… ……………………………………………………………………………… 52
Environmental Pollution and Resources… ……………………………… 54
Biodiversity… ……………………………………………………………………… 62
Environmentally Friendly Procurement…………………………………… 73
Sustainable Finance… …………………………………………………………… 75

Society85

Health and Safety………………………………………………………………… 86
Labor Standards and Practices……………………………………………… 91
Diversity & Inclusion… …………………………………………………………… 94
Diverse Workstyles ……………………………………………………………… 97
Human Resources Management… …………………………………………… 101
Human Rights… ……………………………………………………………………105
Community…………………………………………………………………………… 114
Supply Chain Management… ………………………………………………… 121
Providing Value through Customer Satisfaction and Creation of Neighborhoods…… 131
Create New Industries Through Open Innovation… ………………… 152

Governance154

Compliance… ……………………………………………………………………… 155
Corruption Prevention… ………………………………………………………165
Corporate Governance……………………………………………………………168

ESG Data

179

E Environment-related Data………………………………………………………180
S Social-related Data………………………………………………………………190
G Governance-related Data… …………………………………………………199

Third-party Assurance………………………………………………………203

1

Management's Commitment

1.Introduction
Tackling global warming is one of the most pressing issues facing humanity. Increasingly severe disasters threaten thesustainability of our cities, and food issues brought about as a result of global warming could cause major disruptions to
the foundations of people’s lives. Climate change is a global issue, and will clearly have a significant impact on our urban
development efforts.
Equally, the myriad sustainability-related issues that the world is facing are also closely linked to urban development.
By treasuring biodiversity, we can protect the rich natural environments that breed ecosystems, while promoting diversity
and inclusion (D&I) can help boost the lives of people living in cities. Proactively working to resolve sustainability-related
issues is the very embodiment of our Group Statement—to bring affluence and comfort to urban living.
The idea behind ourlogo is not to choose between conflicting concepts by focusing on "or," but rather to enablecoexistence for both. We will accept diversity, and even when there is a conflict of values in terms of common sense,
we will overcome that, and realize a sustainable society by coexisting, as summed up by thelogo. This management

vision was established in 1991, on the 50th anniversary of our founding, long before issues like sustainability and ESG
came to the fore.
Later, in 1999, we came up with our Group Statement—“The Mitsui Fudosan Group aims to bring affluence and comfort
to urban living”—to which we added the Group Environmental Policy in 2001, the environmental slogan

thatsymbolizes our aim of a society that enriches both people and planet in 2010, and the Group Vision in 2012. These
concepts are directly linked to the challenges society has faced in recent years, such as coexistence with the planet anddiversity and inclusion.
Our redevelopment work in Nihonbashi, inspired by the idea of harmonizing people and nature, tradition andinnovation, is exactly the kind of urban development—preserving and revitalizing heritage while creating the future— ourlogo represents.
In our history of urban developments, it is possible to see how we have followed the needs of society. Over the years,
we have expanded into a range of real estate fields, from land reclamation projects in the period of rapid economic
growth after the war, to the Kasumigaseki Building (Japan’s first skyscraper), high-rise condominiums, large-scale
shopping centers, and more recently Tokyo Dome and other sports and entertainment projects. Looking back at theseachievements, at urban development that caters to the wishes of society, I firmly believe that at heart, the Group has
acted as a springboard that has assisted the creation of new industries. The Mitsui Fudosan Group provides the locations
and opportunities that are the fertile ground for new businesses and ideas.
In Nihonbashi, as well as carrying out the kind of urban development that ourlogo embodies, we are working

hard to create the environments and chances needed for co-creation that will bring about new businesses and new
cultures. By establishing life sciences bases, one of the lines of work in which we’re engaged, we encourage smaller
startups to integrate, while creating a co-creation ecosystem for startups, universities, hospitals, major pharmaceutical2manufacturers, and others to come together through LINK-J, which is responsible for our community development. In thespace-related fields too, Cross U is taking charge of building a community; Nihonbashi is moving forward and evolving
into a place where new industries are born.
Looking at the current efforts in Japanese society, it seems highly unlikely the goal of net-zero greenhouse gas
emissions will be achieved by 2050 if nothing changes. Without innovation, society’s problems cannot be resolved.
While we too will conduct studies ourselves into new technologies related to developing and generating renewableenergy, we must go further and focus on the entire supply chain. Hand in hand with academia and startups, we will strive
toward problem-resolution through open innovation. In our role as springboard—a platform to propel others—we crosspaths with a diverse range of players, and so we hope to help create innovation and new industries.

２.Issues to be Addressed by Mitsui Fudosan
Based on the Group's roots, DNA, and the management philosophy of thelogo, we established our Group long-term vision, VISION 2025, in fiscal 2018. Our primary objective is to successfully establish a sustainable society throughthe creation of neighborhoods, and we also laid out the following six materiality goals, reflecting our commitment tofurther accelerate the Group's sustainability management.
Establish ultra-smart societies by creating neighborhoods
Achieve a society where a diverse workforce can thrive
Achieve health, safety and security in people's daily lives
Create new industries through open innovation
Reduce environmental impact and generate energy
Continuously improve compliance and governance

Environment: E
Responding to climate change is a social obligation of our Group as a builder and developer of social infrastructure,
and we regard efforts to decarbonize as one of the Group's highest priorities. The Company endorses the agendaof the Task Force on Climate-related Financial Disclosures (TCFD) which encourages corporations and others todisclose information relating to climate change risks and opportunities, and we disclose information in line with theirrecommendations. In addition, we became a member of RE100, an international initiative to power business activities
with 100% renewable energy, and are promoting related initiatives. In November 2021, we set a new target of reducing
greenhouse gas emissions by 40% (from fiscal 2019 levels) by fiscal 2030, and to net zero by 2050. We also acquired
certification as 1.5°C targets (consistent with keeping the rise in average global temperature less than 1.5°C over thelevel prior to the industrial revolution) by the Science Based Targets (SBT) initiative, which recommends setting reduction
targets based on scientific evidence in order to achieve the international framework of the Paris Agreement. Beyond justsetting targets, we've established a Group Action Plan to Realize a Decarbonized Society, as required of a leader in thereal estate industry, and are working on decarbonization efforts.
Our Tokyo Midtown Yaesu is one of the biggest office buildings in Japan to have acquired ZEB Ready certification, andwe are pressing forward with our efforts to gain ZEB certification for retail, logistics, and other facilities. In doing so, weare promoting the development of facilities that take greater consideration of the environment. Mita Garden Hills, slated
for completion in 2025, meanwhile, is scheduled to receive ZEH-Oriented certification for all 1,002 of its condominiums,
and we plan to introduce services that achieve virtually zero CO2 emissions for both electricity and gas, through theuse of medium-pressure town gas to make it carbon neutral, and electricity that comes from virtually 100% renewablesources.
In March 2023, we were able to announce the fact that we had acquired seven sites that would be used for megasolar
projects able to produce around 23 GWh per annum. The plan is for electricity generated in this way to be distributed
through a self-consignment scheme to Tokyo Midtown Hibiya and our other properties using distribution networks
owned by power distribution companies . We expect about 30% of the electricity used in common areas of Tokyo
Midtown Hibiya to come from solar power generation. Our aim is for the solar power created at the seven sites to3

reduce annual CO2 emissions by 10,000 tonnes.
In order to resolve tenant companies’ ESG issues and meet demand for renewable energy procurement, we areworking on our Green Energy Supply Service . We are making use of a range of energy greening systems and non-fossil
fuel certificates with energy tracking to provide tenant companies with electricity that is virtually 100% from renewableenergy sources. More than 100 companies have already concluded contracts with us for the service.
In March 2022, we drew up a Manual for Calculating GHG Emissions Produced during Construction in collaboration
with designers, and knowledgeable, experienced experts. We will strive to contribute to the industry as a whole bysharing this with a wide-range of stakeholders, including academic societies, industry associations, other companies in
the industry (real estate companies, architectural design offices), construction companies, and construction material andequipment manufacturers. In June 2023, we also helped with the publication of a manual by the Real Estate Companies
Association of Japan.
We are also proactively involved in sustainable financing, and in May 2023 we issued a green bond worth 130
billion yen, one of the largest in the industry’s history. We are also one of the biggest in terms of Japanese real estatecompanies, too, with a cumulative total lending of around 600 billion yen. Another aim is to better understand trends
in technical innovation related to decarbonization, and to discover and co-create with startups in the field. We werealso the first real estate developer in Japan to invest in a venture capital fund comprising startups with strengths indecarbonization.
Biodiversity is another area that we are actively tackling. In March 2023, we formulated the Mitsui Fudosan Group
Biodiversity Policy. Through this policy, we endorsed the Kunming-Montreal Global Biodiversity Framework that was
created in December 2022. It also supports our vision of living in harmony with nature and concepts such as Nature
Positive. We also joined the 30by30 Alliance, which aims to effectively conserve at least 30% of the Earth’s land andoceans by 2030 as a sound ecosystem, and is also involved in protecting natural forests with consideration towardbiodiversity in the roughly 5,000 hectares of forest we own in Hokkaido. We are also working toward sustainable
forestry in our manmade forest, through a cycle of planting saplings, raising them appropriately, and then using them. In
order that employees could experience this cycle for themselves, since 2009 we have been carrying out tree-planting
activities. In 2022, these activities were endorsed by Save the Snow: Be Active project—which was launched by The
Winter Industry Revitalization Agency and the Japanese Olympic Committee (JOC) Athletes’ Committee in March 2022—
and eight Olympians, including members of the JOC Athletes’ Committee, took part in the tree-planting. Elsewhere,
in December 2022, we opened Otemachi One Garden, a 6,000 m2 green space—one of the largest of its kind—in
the famed office district of Otemachi. We have considered the biota of the imperial palace and the region’s potential
vegetation, while also contributing to greater biodiversity to create a space that combines water and greenery such asbamboo-leaved oak and Japanese maples. Additionally, in the Jingu Gaien redevelopment, we will preserve four rows of
ginkgo trees, and also plan diverse tree planting, and currently plan to increase the number of trees at the site from 1,904
to 1,998 trees, which will increase the ratio of greenery from the current status of approximately 25% to approximately
30%. We plan to circulate greenery by replacing trees with young trees over the next 100 years.
We are actively responding in all of our business areas, from office buildings and retail facilities to residences andmore, not only to the issue of climate change and biodiversity, but to all the diverse challenges facing the environment
including water resource conservation, environmental pollution prevention, and reduction of resource consumption andwaste generation.
As a result of these efforts, we were recognized as a CDP2021 A List company, the highest ranking in the climatechange category, for the second year in a row. Since 2022, we have also been a participant in the GRESB real estate
ratings, a benchmark that measures consideration for the ESG topics in the real estate sector.
Going forward, we will continue to create comfortable environments for customers and local communities, and engage
in comprehensive activities to preserve the environment and respond to the challenge of climate change.

Society: S
As a real estate developer, the asset that drives our ability to keep creating new value is our human resources. It isthrough all employees—with their diverse value systems—recognizing and encouraging one another that they can offer
new value as an optimal team. It is this that enables us to create products and services that contribute to society. Human
resources that can take on difficult challenges are also key to resolving our priority issues.
We have positioned D&I as our foremost personnel strategy. As customers’ needs and value systems diversify, and4societal issues become more complex, embracing our own diversity will be an indispensable part of our response.
Based on the Diversity & Inclusion Declaration and Initiative Policy that we drew up in November 2021, we are creating
environments where a diverse workforce of individuals can demonstrate their capabilities regardless of race, nationality,
religion, sex, age, disability, gender identity, sexual orientation, or other attributes.
Our D&I Promotion Department—a full-time, dedicated organization—takes the lead on efforts toward female
participation, and we are raising the effectiveness of such initiatives through discussions by organizations under the
ESG Promotion Committee, which I chair as president, and at the Board of Directors, and through measures such as
consultations with female outside directors. Furthermore, to promote female participation as a united Group, we carryout regular policy sharing or progress checks through Group meetings on promoting active roles for women, which areattended by presidents of Group companies. As a qualitative action plan to promote such roles, we are working toward
two key areas: (1) creating an environment where people want to work long-term, where everyone can respect eachother’s values and lifestyles, including whether they care for children or others, regardless of gender; and (2) promoting
female participation to change awareness within the organization and raise those female employees’ motivation andsupport their career development. As specific examples of our initiatives, there are our efforts to support a balance
between work and caring for children or adults, and to that end we have been encouraging employees of both sexes
to take childcare leave. The uptake rate for male employees has risen to 100% and for 23 years now we have achieved
a 100% rate for employees returning to work after childcare leave. We have been praised for our various female
participation initiatives, and as a company that is particularly good at promoting it, we have been recognized under theNadeshiko Brand initiative—jointly organized by METI and the TSE—for two years in a row.
As part of our personnel training and skill enhancement efforts, we conduct on-the-job training, direct interviews, job
rotations, and training programs so as to enable career development where each employee is treated as an individual.
To support career visions based on employees’ diverse value systems, we are putting in place a number of systems,
including a personal statement system related to changing official duties or wishes to change department. Beyond that,to deepen understanding of our businesses, as one effort to develop experience in business domains separate from ourexisting businesses, we are looking to establish systems that include a business proposal system, a side-job system tohelp create innovation and make a social contribution, a return-to-work system, a leave system whereby employees cantake time to study at graduate school, and a graduate school tuition fee subsidy system. Through these measures, wewill help cultivate issue-resolution capabilities and enable employees to create added-value in a business environmentthat sees a great deal of change.
We need to have an environment in place where our human resources, who each have their own diverse value
systems, talents, and lifestyles, find it easy to work and to that end we are promoting measures to support diverse
workstyles to accommodate different life stages, including a work-at-home system, and a financial support system forthose balancing work and child/nursing care. In addition, we are working to raise task effectiveness in all departments,
optimizing the allocation of tasks, and shortening working hours. By doing so, we will promote an optimal work-lifebalance.
We promote health and productivity management to support employees with their own health and safety, and assuch we were selected as 2023 Health & Productivity Stock, under a program run jointly by METI and the TSE. The
program selects enterprises deemed exceptional in terms of health and productivity management from among the listedcompanies on the TSE, with one enterprise generally selected per industry. It is not just our own efforts in this area,
we also carry out mutual support for management, personnel departments, and workers and offer the &well solutions
service, so that we can help tenant companies achieve health and productivity management as well as diverse ways ofworking.
Meanwhile, we are also working to improve employee engagement, and such efforts have led to more than 90% of ouremployees say that they are proud to work for Mitsui Fudosan, and the rate of people leaving the Company is also low.
The biggest driver supporting value creation by companies is human assets, and with that in mind, we aim to improvediversity by employing more women and international talent than ever before, and by capitalizing on the diverse opinions
and knowledge which arise from such diversity, we hope to create new business opportunities.
In addition, we believe that respect for individual human rights is of paramount importance in offering people settings
for business and residential life through neighborhood creation. As well as supporting and respecting the principles
embodied in the UN Guiding Principles on Business and Human Rights and the International Labour Organization's (ILO)
Declaration on Fundamental Principles and Rights at Work, we promote respect for human rights throughout every

5aspect of our business. In fiscal 2021, we administered questionnaires to six construction companies representativeof our business supply chains, and since May 2022, we have participated in a pilot project, launched by JP-MIRAI, toprovide consultation and other support for foreign workers. Through steps like these, we are strengthening our efforts inthe areas of supply chain management and human rights due diligence.
In the future, we will continue working to expand engagement with diverse stakeholders including our supply chain,customers, and local communities.

Governance: G
Because we rely on the trust of individuals, neighborhoods, and society, the Mitsui Fudosan Group regards risk
management, compliance, and governance as extremely important themes that are fundamental to our business. In
particular, with respect to our international business, which has expanded rapidly in recent years, we regard strict
compliance and strengthened governance as pressing challenges. In addition to bolstering further the compliance andgovernance structures at the parent and at our international local corporations, we are working to manage business risk
appropriately and practice thorough due diligence.
As part of our efforts to develop and organize optimal corporate governance, we are working to provide incentives thatlink managing directors' compensation with improvement of our corporate value. Also, in light of the fact that creatingsocial value through ESG is the foundation of our management, we decided, starting in 2021, to have the Compensation
Advisory Committee check and evaluate ESG efforts, and reflect this in calculation of performance-based compensation,i.e., bonuses and restricted stock compensation.
Going forward, and taking a broad view of global trends, changes in the structure of society, changes in stakeholder
attitudes toward corporate management, and other factors in our operating environment, we will work to continuously
review and strengthen our corporate governance and reinforce the soundness, transparency, and efficiency of ourmanagement.

6

In recent years, natural disasters have become more severe and more common, and climate change isoccurring on a global scale.
The Paris Agreement, an international framework for action against climate change, has accelerated
international movement, and it has become increasingly important for companies to contribute to thesustainable growth of society through their business.
Based on the philosophy of the Mitsui Fudosan "" logo, our Group has achieved corporate growth byenriching people's lives and constantly creating new value through the creation of neighborhoods thatmeets the needs of the era and coexists with society in harmony.
Under our "" principle, we have also been proactively addressing climate change for some time.

In December 2020, our Group's greenhouse gas emission reduction targets for FY2030 and FY2050
were announced. In the following year 2021, we raised the reduction target for FY2030 even higher, andformulated Action Plans as comprehensive and specific strategies to achieve the targets.

7

Mitsui Fudosan Group's Targets

Steadily implement initiatives for FY2030 with supply chain
Further promote actions to realize a decarbonized society in FY2050

8

FY2022 Initiatives to Realize Decarbonized Society
Toward Realization of Decarbonized Society
In recent years, natural disasters have become more severe and more common, and climate change isoccurring on a global scale.
The Paris Agreement, an international framework for action against climate change, has accelerated
international movement, and it has become increasingly important for companies to contribute to thesustainable growth of society through their business.
Based on the philosophy of the Mitsui Fudosan "" logo, our Group has achieved corporate growth byenriching people's lives and constantly creating new value through the creation of neighborhoods thatmeets the needs of the era and coexists with society in harmony.
Under our "" principle, we have also been proactively addressing climate change for some time.

In December 2020, our Group's greenhouse gas emission reduction targets for FY2030 and FY2050
were announced. In the following year 2021, we raised the reduction target for FY2030 even higher, andformulated Action Plans as comprehensive and specific strategies to achieve the targets.

9

Improve environmental performance of new and existing properties

New properties

Realize ZEB/ZEH level* environmental performance for all properties* ZEB/ZEH level: BEI level with environmental performance equal to or higher than ZEB/ZEH Oriented, excluding some properties.

Key strategies for building business● Optimization of air conditioning load
● Optimization of standard lighting illuminance● Adoption of other energy-saving items

Tokyo Midtown Yaesu—one of the largest office buildings in Japan to have been certified ZEB ReadyIn addition to the introduction of LED lighting and motion sensors in common areas, in the private office areas
LED lighting, daylight sensors, and high-efficiency outdoor units have been installed and lighting intensity settings
have been optimized. These measures have reduced annual primary energy consumption by more than 50%
compared to comparable conventional buildings. Solar panels have also been installed on part of the project site
to generate the energy the building requires.
* The ZEB Ready certification applies to the office areas of Yaesu Central Tower

10

Key strategies for commercial facility business● Optimization of air conditioning load
● Improve lighting efficiency● Adoption of other energy-saving items● Installation of solar power generator

Mitsui Shopping Park LaLaport Sakai—the first large-scale commercial facility to receive ZEB Oriented(Retail ) certification

Reductions of more than 30% have been achieved for the facility’s projected primary energy consumption. A
Building and Energy Management System (BEMS) and lighting and air conditioning control systems were installed
for efficient energy operation and management. Highly insulated building materials, high-efficiency equipment, andLED lighting enable energy-savings, while cogeneration systems allow energy to be produced and consumed onsite.
*ZEB Oriented certification covers areas of commercial facility buildings used for the sales of goods (“retail”), excluding areas used forfood or drink establishments.

11Key strategies for logistics business● Installation of solar power generator● Considering the adoption of LED lighting in warehouses with dimming"Mitsui Fudosan Logistics Park Ebina I" (certified as ZEB)

Through a variety of measures designed to generate energy and utilize it efficiently, CO2 reductions of 122.6%
have been achieved compared to reference emission figures for the entire complex. In terms of energy efficiency,
the facility features geothermal heat pumps, which use 44 posts (each with a diameter of around 15 cm) driven
approximately 100 m underground to make use of the earth’s heat, and can achieve energy savings of morethan 30% compared to conventional air-cooled air-conditioning systems. Other energy-saving technologies
that have been adopted include desiccant air conditioning (which allows for separate adjustment of humidity
and temperature and uses around 20% less energy than conventional systems) and LED lighting. For energy
generation, rooftop solar power generation equipment with a capacity of 2 MW (for annual generation of
approximately 2.2 GWh), has been installed to supply power to both common areas and tenants’ private areas.

Key strategies for hotel business● Optimization of air conditioning load
● Improve lighting efficiency● Installation of solar power generator

Mitsui Garden Hotel Jingugaien(Improve air conditioning efficiency
by adopting balconies that block sunlight)

12

Mitsui Fudosan Residential
Achieve by FY2030:
ZEH-M in all mid- and high-rise units
ZEH in all detached units

Mita Garden Hills(All units are ZEH-Oriented condominiums)
・ Plans to acquire ZEH-Oriented certification for all 1,002
units, the largest scale in Japan・ Service is introduced that virtually eliminates CO 2
emissions for both electricity and gas used
・ On-site power generation and MEMS further reduce theenvironmental impact of common areas
・ Create a system that enables residents to enjoy andcontinuously work on energy conservation and CO 2
reduction, such as by visualizing the amount of electricity
consumed in each condominium

Achieve by FY2030 for orders received:
100% ZEH in exclusive housing 50% ZEH/ZEB in rental
housing/business buildings

Custom-built house
Proposal of environmental design including garden together with ZEH

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Existing properties

We will improve energy efficiency through strategic renovation ofproperties and actively promote the creation of on-site renewable energy.
In office buildings, promote the use of LED lighting and the optimization of lighting intensity in all properties, while
making efforts to reduce the air conditioning load in hotels and commercial facilities.

Improve the environmental performance of existing facilities
through strategic renovation

Promote the use of LED lighting in all office buildings

In logistics and commercial facilities, maximize the installation of solar power generators on rooftops and otherpremises. Realize on-site power generation and supply.

Mitsui Fudosan Logistics Park Hino

Mitsui Outlet Park Kisarazu

Mitsui Outlet Park Shiga Ryuo

Mitsui Outlet Park Kisarazu

14

Large-scale carport-mounted solar power generation equipment to be introduced at Hiroshima Airport,with one of the highest capacities of any airport in Japan (2.6 MW)
A Power Purchase Agreement (PPA) has been signed between Hiroshima International Airport Co., Ltd. and Mitsui
Fudosan, under which we will install, own, and operate carport-mounted solar power generation equipment in
the airport’s car parks. The power generated will be used in Hiroshima Airport’s terminal buildings.

Promote continuous renewal to improve energy-saving performance in otherbusinesses

15

Greening of power consumption in common areas of properties and areasused by the company

By FY2030, achieve greening of power consumption in common areas ofproperties owned and areas used by the Group nationwide** Electricity equivalent to our share of common areas (including partially owned, excluding electricity equivalent to in-house power generation
within each facility). The term "greening" refers to the switching of electricity used to substantially renewable energy sources by using non-fossil
certificates, etc.

● By FY2022, we completed the greening of power consumption used in 25 buildings in the Tokyo metropolitan area,
including mixed-use core buildings in Tokyo Midtown and Nihonbashi area.
● In March 2022, we started collaborating on the greening of power consumption in the Chubu and Kansai regions. The
Chubu and Kansai regions have been added to Mitsui Fudosan's "Green Electricity" expansion in the Tokyo metropolitanarea, making it possible to expand into the three major metropolitan areas.
● This expansion will apply to approx. 180 facilities and we will accelerate the rollout of power greening to all facilities
owned in Japan by FY2030.
● At Tokyo Midtown Yaesu, completed in 2023, we are adding environmental value to the electricity used in the facility
through our five solar generation sites located around Japan—a first for us.

*1: Solar power plants owned by Mitsui Fudosan, post-FIT power plants contracted by TEPCO Energy Partner,Incorporated residential solar power
generators, solar power owned by partner power producers, etc.
*2: For FIT power sources, acquired via Japan Wholesale Power Exchange (JPEX); for non-FIT power sources, acquired from electric power
providers.
*3: Mitsui Fudosan TG Smart Energy Co., Ltd. in the specified electricity business areas; TEPCO Energy Partner,Incorporated and others in otherareas.

Greening of electricity used in common areas of properties owned by Mitsui
Fudosan, including Tokyo Dome

16

Provide Green Menu to tenants and buyers

Support tenant companies and buyers in their efforts to decarbonize by
proposing Green Menu

Tenant companies● Propose green power supply services to support corporate tenants' efforts toward RE100 and decarbonization.
● In April 2021, we started green power supply services for office building tenants.
● In 2022, through the completion of developments in the three major metropolitan areas, we have put in place asupport framework to help customers resolve RE100 or ESG issues.

(abc order)* Some of companies using the system as of October 31, 2021

Institutional investors● Support institutional investors in their RE100 and decarbonization efforts by proposing a green power menu at the timeof property sale.
RE100 is led by The Climate Group in partnership with CDP, and also operates as part of the We Mean Business coalition. In Japan, the Japan
Climate Leaders Partnership (JCLP) has been an official regional partner of RE100 since 2017, supporting the participation and activities of Japanesecompanies.

Home buyers● Achieve a 40% reduction in CO2 emissions (average for medium- and high-rise buildings and detached houses) by
FY2030 by adopting methods such as the "bulk high-voltage power receiving × renewable energy" system and greening
through the introduction of ENE-FARM in medium- and high-rise sales.

17Secure stable renewable energy sources

Further promotion of mega-solar development
New mega-solar development		● In addition to the existing mega-solar project (80 million kWh/year), aim to develop mega-solar power plants with a
total power generation capacity of 300 million kWh/year* (Total output: Approx. 175,000 kW) by FY2030. (Total: 380
million kWh/year)* Power generation equivalent to our own power use in the Tokyo metropolitan area at the time the action plan was formulated (equivalent to theuse of approx. 30 buildings in the common area of Tokyo Midtown Hibiya)● In FY2022, a total of seven sites were developed for mega-solar to secure annual generation of approximately 23 GWh.
This will also enable CO2 reductions of around 10,000 tonnes. These sites will send power to Tokyo Midtown Hibiya
and to our facilities in the Hokkaido and Chugoku regions.

Existing mega-solar business● Expand mega-solar projects with a total area of 93.9 ha at five locations nationwide. Total output: Approx. 72,000 kW,
generating approx. 80 million kWh per year.

Tomakomai Solar Power Station

Sanyo Onoda Solar Power Station

Hachinohe Solar Power Station

Oita Solar Power Station

18

Omuta Solar Power Station

Initiatives to reduce CO2 emissions during construction
In addition to the development of tools to accurately grasp CO2 emissions during construction,require submission of a reduction plan by construction companies, etc.
Promote reduction of CO2 emissions in the entire supply chain

Accurate understanding of CO2 emissions during construction● In March 2022, Mitsui Fudosan and Nikken Sekkei formulated the "Manual for Calculating Greenhouse Gas (GHG)
Emissions," an arrangement of the Architectural Institute of Japan's "LCA Guidelines for Buildings*1" making its use
easier in practical terms.
● Changing from the conventional simple method of multiplying the total construction cost by a certain unit price to thenew method of accumulating each component and material , enables highly accurate calculation of GHG emissions.
● We will proceed with the trial of this manual, and widely share it with related parties such as academic societies,
construction companies, and real estate companies. As a result, in 2023 the Real Estate Companies Association ofJapan drew up its Construction GHG Emissions Calculation Manual.
*1: LCA guidelines for buildings: Established in 2013 by the Architectural Institute of Japan (AIJ) and is the only academically established guideline inJapan for calculating the life cycle environmental impact (LCA*2) of buildings.
*2: LCA (Life Cycle Assessment): A method for quantitatively assessing the environmental impact of a product or service over its life cycle.

Table of Contents image of the manual

Reduction of emissions during construction● Revision of design guidelines
・Design to enhance environmental performance
・ Proper planning on the use of components and equipment without waste
・Use of low-carbon materials and means
・Submission of "CO2 reduction plan during construction" including the above● Revision of estimate guidelines
・ Calculation of emissions during construction using the tools on the left
・Reduction of emissions at construction sites
・Procurement strategy for material・Submission of "CO2 reduction plan during construction" including the above

19

Utilization of forests● Actively utilize owned forests for high-rise wooden buildings and houses.
● Realize self-sufficiency in building materials and a sustainable virtuous cycle between forest resources and the local
economy.

Agreement on Promoting the Use of Wood in Buildings with the Hokkaido
Government and Two Forestry-Related Organizations
To promote the use of wood from trees grown in Hokkaido, we have signed an agreement with the prefectural
government, the Hokkaido Federation of Forestry Cooperatives, and the Hokkaido Federation of Wood Industry
Cooperative Associations.
Summary of the agreement:
・The Hokkaido Government will provide technical advice and information on subsidy projects and related programswith respect to promoting the use of timber from Hokkaido, as well as conduct public relations activities based on theagreement.
・The Hokkaido Federation of Forestry Cooperatives will establish a supply network for building materials in advance andwill supply legally harvested wood in a timely manner.
・The Hokkaido Federation of Wood Industry Cooperative Associations will work to request fiscal support for promoting
the use of local timber and developing related facilities.
・The Mitsui Fudosan Group will endeavor to use timber from Hokkaido in the buildings it plans to construct going
forward.
Working closely with the Hokkaido Government, the Mitsui Fudosan Group will contribute to the realization of theagreement’s core objectives, which are to realize a decarbonized society by 2050 and spur regional revitalization byenergizing the forestry industry and its peripheral sectors.

20

Mitsui Home's Sustainable Wooden Condominium "MOCXION" for a Decarbonized Society● Wood, a sustainable building material is used to construct the condominiums significantly reducing CO2 emissions
during construction and contributes to the global environment● Sustainable condominiums with high thermal insulation, energy efficiency, durability, earthquake resistance, fire
resistance and sound insulation

Park Axis Kita-Senzoku MOCXION—scheduled for ZEB-M Ready and LEED certification
A carbon-zero rental condominium building with an all-wood skeleton . The use of wood in this way reduces the amountof CO2 produced during construction by around half. As a project that utilizes pioneering wooden construction techniques,
it was selected for commendation by the Ministry of Land, Infrastructure, Transport and Tourism in FY2022 . Wood usedin the finishing for the building’s entrance lounge actually comes from the Mitsui Fudosan Group’s own forests. This Mitsui
Fudosan Residential rental condominium is scheduled to be the first to be certified under the LEED (Leadership in Energy
and Environmental Design) international environmental certification system. Our MOCXION series of buildings make use of
newly developed, high-strength load-bearing walls, which are highly resistant to earthquakes yet relatively slim.

Plans for the largest and tallest wooden rental office building in Japan in Nihonbashi, Tokyo● The largest and tallest existing wooden high-rise building in Japan, with 17 floors above ground, a height of approx. 70 m,
and a total floor area of approx. 26,000 m2● Lumber volume used for structural materials is expected to exceed 1,000 m3, the largest in Japan● Actively utilize timber from forests owned by the Mitsui Fudosan Group in Hokkaido.
The goal is to achieve self-sufficiency in building materials and a sustainable virtuous cycle between forest resources andthe local economy.

21

Acquisition of external certifications● In addition to improving the environmental performance of all facilities, we will actively acquire external certificationsin Japan and overseas to promote ESG, including decarbonization. (Quantitative target: Acquire 100% certification for
newly built environment efficiency.)

Refer to the ESG data page and environment-related data for the status of environmental real estate certifications.
⇒ https://www.mitsuifudosan.co.jp/esg_csr/esg_data/environment/

Open innovation that will lead to new technologies● Through proactive efforts—such as joint research between academia and construction companies, and investment instartups (including providing demonstration testing facilities)—we aim to help decarbonize society as a whole.

Investment in three venture capital funds for startups that specialize in decarbonization
In 2022, we formulated a new strategic limited-partnership investment budget for venture capital funds that comprisestartups with strengths in the decarbonization field, and invested in three such funds. Through strategic limited-partnershipinvestments, we can grasp trends in technical innovations related to decarbonization, and discover—and co-create with—startups in those fields.

22

The Creation of neighborhoods initiatives
Kashiwanoha Area Energy Management System (AEMS)
AEMS has been installed to centrally manage the energy of the entire area. Efficient use of energy has been achieved, andsome energy savings have been achieved using solar panels.

Also promoting new initiatives that utilize area venues and communities

Demonstration fields for new technologies
Providing a demonstration field to venture companies with new decarbonization technologies, such as Girasol Energy Inc.
and Exergy Power Systems Inc.

Solar panels on the roof of LaLaport Kashiwanoha

Environmental activities participated in by local residents
Develop a participatory environmental platform involving local residents and users in the area. Those who participate in
the activities will be able to receive points and privileges.

Expand environmental activities with local residents

23

Energy conservation promotion initiative in the area		Smart Energy Project (Nihonbashi/Toyosu/Yaesu)
Through the stable supply of electricity and heat to the surrounding area, including existing buildings, we have realizedeco-friendly neighborhoods development that improves energy resilience* and achieved energy conservation and CO2
reduction, even in times of emergency. Following Nihonbashi and Toyosu, energy supply started in Yaesu in September
2022.

Cogeneration system

Central monitoring room for area energy management* Energy resilience: Enhance resilience of energy supply networks. This is based on the concept that it is important to be prepared not only for
emergencies, but also for a variety of situations during normal times.

Initiatives with residential tenants
Mitsui Fudosan Residential runs a series of activities as part of the Sustainable Living Program (“Sus-katsu Program”), which
promote enjoyable, sustainable decarbonization efforts. In 2023, one such activity involved starting a circular-action
service to recycle unwanted goods through a permanent recycling station that aims to match clothes and other items nolonger wanted by residents with new owners. Items are sorted and redistributed as a resource, which can help to reduce
the amount of CO2 emissions produced

by approximately 70% compared to incinerating them

Unwanted item recycling/reuse flow

24Internal Systems for Promoting Action Plans
Introduction of Internal Carbon Pricing (ICP) System● From FY2022, we will introduce the Internal Carbon Pricing System, a mechanism to encourage decarbonization efforts
by pricing CO2 emissions in newly developed properties. Environmental impact is quantified and visualized to manage
progress. Raising awareness within the company to reduce CO2 emissions and accelerate efforts to decarbonize.

Structure for promoting Action Plans● Established the Sustainability Promotion Division in 2022 to accelerate efforts related to ESG and SDGs. The
Sustainability Promotion Department was established in October 2021 with responsibility for overall functions related
to ESG and SDGs, including promotion of action plans, and the Environment & Energy Business Department responsible
for green energy management and mega solar business, will promote initiatives in cooperation with company-wide
divisions.

25

ESG at the Mitsui Fudosan GroupStatement, Vision, and Mission
The Mitsui Fudosan Group's Statement, Vision, and Mission embody management's basic philosophy and vision ofbringing affluence and comfort to urban living. Since their formulation in 1999, they have guided the Mitsui FudosanGroup as an integrated management policy.

GROUP STATEMENTThe Mitsui Fudosan Group aims to bring affluence and comfort to urban living.
GROUP VISION
What we want to be
The

Philosophy

Seeking to link diverse values and coexist in harmony with society, and achieve a sustainable society, as symbolized by
the Mitsui Fudosanlogo, we will work to foster social and economic development as well as preservation of the

global environment.

―Under, we will aim for a society that enriches both people and the planet.

Evolution and value creation
By bringing knowledge and experience together in diverse ways, we seek to advance the real estate business and create
new value, both at home and abroad, proactively responding to global changes in social environments and market
structures.

A profitable and growing Mitsui Fudosan GroupWe seek to create a profitable and growing Mitsui Fudosan Group, acting honestly and fairly to realize the capabilities ofthe entire organization.

26

GROUP MISSION
What is expected of us
Provide business and lifestyle-related solutions and services･ Maximize urban value creation by providing secure, safe, and attractive urban spaces and soft services that bringenrichment and comfort to urban living.
･ Provide variable and innovative solutions that stimulate the real estate investment market.

Work in partnership with customers from a global perspective･ Treat customers as the business foundation on which to progress and develop the Company.
･ Propose and provide products and services by deploying the collaborative strength of the Group with amultidisciplinary approach that meets the real needs of customers.
･ Work in partnership with customers to raise brand value by continuously providing services that are highly valued bythem.

Raise our corporate value･ Raise corporate value through sustainable profit growth and continual innovation.
･ Optimize the allocation and use of available resources and pursue efficient operations.
･ Conduct operations while closely monitoring and managing business risks.

Create a strong corporate group by building the capabilities of individuals･ Seek to maintain a creative and pioneering spirit by integrating various skills and values.
･ Cultivate and institutionalize the professional capabilities of individuals to raise our creative ability for value-added
products and services.
･ Maintain high awareness of ethical, disciplinary, and compliance issues, and act accordingly.

The &EARTH Principle

The Mitsui Fudosan Group is committed to social and economic development as well as global environmental
preservation under the principles of coexisting in harmony with society, linking diverse values, and achieving a sustainable
society represented by its

corporate logo. Under our

principle, we recognize the need to create neighborhoods

that remain in tune with environmental concerns. This principle therefore reflects our aim to help establish a society thatenriches both people and the planet.

27

Policy for Addressing ESG Issues in VISION 2025
In VISIO N 2025, our o bje c tive is toachieve a sustainable society and drive
continual profit growth by addressing
ESG issues based on the philosophy of
the Mitsui Fudosanlogo.

1. Establish ultra -smar t societies bycreating neighborhoods
2. Achieve a society where a diverse
workforce can thrive
3. Achieve health, safety and security inpeople's daily lives
4. Create new industries through open innovation
5. Reduce environmental impact and generate energy
6. Continuously improve compliance and governanceEfforts to realize SDGs and Society 5.0
In line with the basic philosophy of its

Group Statement, "Bringing af fluenceand comfort to urban living," the Mitsui
Fu d o s a n G ro u p h a s co n t ri b u te d to
the realization of a sustainable society
throu gh it s co rp o rate ac tivities an dneighborhood creation. Going forward,
w e w i l l ke e p co n t ri b u t i n g to t h eachievement of SDG goals through our
Six Materiality Goals. In addition, in linewith the 5th Science and Technology
Basic Plan proclaimed by the Japanese
government, we are aiming to realize
ultra -smart societies. This social
revolution, which prioritizes innovation, isbeing called Society 5.0. By maximizing its use of technology and innovating the real estate industry itself, the Group willcontribute to realizing ultra-smart societies.

Timeframe and Scope of the Report

The ESG Report 2023 profiles ESG-related efforts by the Mitsui Fudosan Group. The report mainly covers activities
undertaken from April 1, 2022 to March 31, 2023 . However, details are also provided for certain ongoing development
projects both at the design and construction phase. In principle, quantitative data relates to fiscal 2022, the fiscal year
from April 1, 2022 to March 31, 2023. The period covered for quantitative data outside fiscal 2022 is identified in each
instance.
The report indicates which policies, declarations, and commitments for each ESG activity were announced for the firsttime in fiscal 2022, which were revised, and which were continued.

28

Reference Guidelines
Environmental Reporting Guidelines (2018) issued by Japan’s Ministry of the Environment
SASB Standard
SASB Content Index
TCFD Final Report

Launch/Publication

Website: Primary launch in September 2023
*This website will be updated as required if there are any future additions or changes to information.
Published by & Inquiries: Sustainability Promotion Department, Mitsui Fudosan Co., Ltd. (Tel: +81-3-3246-3063)

29

SASB Index
Infrastructure sector: Real Estate
1. Sustainability Disclosure Topics & Accounting Metrics
Topic

Accounting Metric

Unit of measure

Code

Reference
ESG Data > Climate Change >Energy consumption data coverage as a

Percentage (%)

percentage of total floor area, by property

by floor areasubsector

Energy Consumption Trends,
IF-RE-130a.1 Scope of Aggregation (Energy
Consumption), Greenhouse Gas
Emissions (Scopes 1, 2 & 3)
ESG Data > Climate Change >Energy Consumption Trends,(1) Total energy consumed by portfolio area withdata coverage, (2) percentage grid electricity, and

GJ

IF-RE-130a.2 Scope of Aggregation (Energy(3) percentage renewable, by property subsector

Consumption), Greenhouse Gas
Emissions (Scopes 1, 2 & 3)

EnergyManagement

ESG Data > Climate Change >Energy Consumption Trends,

Like-for-like percentage change in energy
consumption for the portfolio area with data%

IF-RE-130a.3 Scope of Aggregation (Energy

coverage, by property subsector

Consumption), Greenhouse Gas
Emissions (Scopes 1, 2 & 3)

Percentage of eligible portfolio that (1) has anenergy rating and (2) is certified to ENERGY STAR,by property subsector

Percentage (%)
by floor area

IF-RE-130a.4

Description of how building energy management

Environment>Climate
Change>Major Initiatives
Environment>Climate

considerations are integrated into property

n/aIF-RE-130a.5 Change>Awareness of Climate

investment analysis and operational strategy

Change, Policy

Water withdrawal data coverage as a percentageof (1) total floor area and (2) floor area in regions

Percentage (%)

with High or Extremely High Baseline Water Stress,by floor area

ESG Data > Water Usage
IF-RE-140a.1 > Water Usage Trends /Aggregation target range

by property subsector(1) Total water withdrawn by portfolio area withdata coverage and (2) percentage in regions withThousand cubic

WaterHigh or Extremely High Baseline Water Stress, bymeters(m3), %Management

property subsector

ESG Data > Water Usage
IF-RE-140a.2 > Water Usage Trends /Aggregation target range

Like-for-like percentage change in water withdrawn
for portfolio area with data coverage, by property

ESG Data > Water Usage%

IF-RE-140a.3 > Water Usage Trends /subsector

Aggregation target range

Description of water management risks anddiscussion of strategies and practices to mitigate

n/aIF-RE-140a.4

those risks

Environment>Water>Policy,
Major Initiatives(1) Percentage of new leases that contain a cost

Managementof TenantSustainability
Impacts

recovery clause for resource efficiency-related

Percentage (%)

capital improvements and (2) associated leasedby floor areaーIF-RE-410a.2

ーfloor area, by property subsector
Percentage of tenants that are separately meteredor submetered for (1) grid electricity consumptionand (2) water withdrawals, by property subsector
Discussion of approach to measuring, incentivizing,and improving sustainability impacts of tenants
Area of properties located in 100-year flood zones,

ClimateIF-RE-410a.1

by property subsector

ChangeDescription of climate change risk exposure

Adaptation

analysis, degree of systematic portfolio exposure,and strategies for mitigating risks

30

Percentage (%)
by floor arean/a

IF-RE-410a.3

m2

IF-RE-450a.1

n/aIF-RE-450a.2

Environment>Environmentally
Friendly Procurementー
Environment>Climate
Change>TCFD

2. Activity Metrics
ESG Data > Climate Change > Energy Consumption
Number of assets, by property subsector

Number

IF-RE-000.A

Trends, Scope of Aggregation (Energy Consumption),
Greenhouse Gas Emissions (Scopes 1, 2 & 3)
ESG Data > Climate Change > Energy Consumption

Leasable floor area, by property subsector

m2

IF-RE-000.B

Trends, Scope of Aggregation (Energy Consumption),
Greenhouse Gas Emissions (Scopes 1, 2 & 3)

Percentage of indirectly managed assets, by

Percentage (%)

property subsector

by floor area

Average occupancy rate, by property subsector %IF-RE-000.Cー

IF-RE-000.Dー31Sustainability Promotion Framework

Sustainability Promotion Framework
With the aim of contributing to ESG promotion and to the achievement of the SDGs, as well as to promote activities
related to decarbonization efforts, Mitsui Fudosan has established an ESG Promotion Committee (headed by the
President and Chief Executive Officer). The company has also established an ESG Management Committee, subordinate
to the ESG Promotion Committee (headed by the Director of the Sustainability Promotion Division ). The ESG Promotion
Committee manages principles and policy formulation for ESG, SDGs, and decarbonization initiatives. The committee
also coordinates the goals and planning of environmental promotion activities for each business division, and oversees
and evaluates the progress of those activities. To promote these efforts, the ESG Management Committee establishes
fiscal year targets for each division in accordance with the Group Environmental Policy, and is carrying out tasks suchas progress management. With respect to climate change risk, the ESG Management Committee gathers information
through a variety of channels relating to domestic and international trends and demands. Information sources include theJapanese government; regional public organizations; the Japan Federation of Economic Organizations (Keidanren); andreal estate associations. The ESG Management Committee, which is equipped with highly specialized expertise, identifies
climate-related risk for each business division, while the ESG Promotion Committee evaluates potential adverse effects ofthat risk. Where there is significant risk, the Risk Management Special Committee considers the potential influence on thecompany’s business and possible responses through the company’s operations.
Reports on ESG issues are transmitted to the Board of Directors on a regular basis. Environmental goals and progress aremonitored, and as needed, the Board considers whether action may be required. In addition, the status of ESG-related
initiatives is considered in determining management evaluation and compensation.
Moreover, environmental initiatives are carried out in a planned fashion alongside Group companies subject toenvironmental policies.

■ Sustainability promotion organizational structure of the Mitsui Fudosan Group (As of April 1, 2023)

Note: Mitsui Home, Mitsui Fudosan Facilities, Mitsui Fudosan Retail Management, Mitsui Fudosan Hotel Management, and Tokyo Midtown
Management promote environmental conservation activities by establishing their own environmental policies based on the Group Environmental
Policy. These companies also conduct their own social and environmental reporting.

32

ESG-related Objectives (KPI) of the Group and Progress in Achieving Them
The following is a summary of ESG-related targets and progress.
①～⑩ : KPIs for Mitsui Fudosan (unconsolidated)⑪～⑱ : KPIs for the entire Mitsui Fudosan Group
Targets shaded green are those that have been met in FY2022
Unconsolidated KPIs

Progress
FY2021

FY2022

Changefrom
FY2021

80% or
more

－

－

92％

－

Added as a KPI for
FY2023 onward

AnnualSamelevel asprevious
year’sresults

－

－

28.2
hours

－

Added as a KPI for
FY2023 onward

AnnualSamelevel asprevious
year’sresults－－

131,000
yen－

Added as a KPI for
FY2023 onward

PeriodNumerical
target①

Employeeengagement(D&I)*1

Annual②

Training time per
employee (D&I)*2③

Training expenses
per employee(D&I)*3

5.7％

6.8％

7.7％

Active recruitmentof mid-career
personnel andinternal promotion+0.9%
to management
positionscontributed to
improvements

40％

－

40.5％

44.1％

+3.6％

Added as a KPI for
FY2021 onward

100％

100％

100％

100％

0.0％

100% for 23
consecutive years④

Women inmanagement
positions ratio(D&I)*4

By 2025
By 2030

：10％
：20％

⑤

Ratio of female
hires (D&I)

Annual⑥

Return rate fromchildcare leave(D&I)

Annual⑦

Percentage of male
employees taking
childcare leave,
etc. (D&I)*5⑧

Number of paid
leave days taken
(D&I)

⑨

Employment rateof people withdisabilities (legal
employment rate*6) (D&I)⑩

Health checkup
and screening rate

Main results in FY2022

FY2020Evaluation indicator

Annual100％－－122.9％

Added as a KPI for－
FY2022 onward

16.2days

Increased due tothe setting andpublicizing ofrecommended+1.2 leave days, andday recommendation
communication to
relevant individuals
or their immediate
superiors
Active recruitmentof people with
+0.38％ disabilities
contributed to
improvements

Annual14daysannually

Annual

2.3% or
more

2.07％

2.14％

2.52％

Annual

100％

99.5％

100％

100％

13.8days

15.0days33

0.0％・Selected for the second year
in a row as a Nadeshiko Brandby the Ministry of Economy,
Trade and Industry as acompany that ably promotes
active roles for women

・Selected for inclusion in
the MSCI Japan Empowering
Women (WIN) Select Index forthe sixth consecutive year

Group KPIs

Progress

PeriodNumerical
target⑪

CO2 and otheremission
reduction rate
(1,000 t-CO2)

By
FY2030By
FY2050: 40%
decreasecompared
to FY2019: Virtually
zero

4,383

4,690

4,199

5,503

⑫

Energy-derived
CO2 emission
reduction rate byTokyo Metropolitan
Government’s
Specified
Global Warming
Prevention Business
Establishments*7

By
FY2024Rate
exceedingthat
mandatedunder theordinance(Plan
3: 27%
reduction)

28.4%
decrease

38.4％
decrease

37.3％
decrease

35.8％
decrease⑬

Proportion of electric
power used inbusiness activities
derived fromrenewable energy(RE100)By
FY2050

100％

0.1％

0.1％

3.0％

11.3％

⑭

Energy consumption
per base unit(kℓ /m2 per year)

Annual1%
reduction
annually

0.041

0.035

0.039

0.039

0.0％

⑮

Clean/industrial
water use per baseunit
(m3/m2 per year)

Annual

0.851

0.708

0.671

0.855

+27.4％

General waste⑯ emissions per baseunit (t/m2 per year)

Annual

0.00550.00440.00550.0059Industrial waste
emissions perbase unit(t/m2 per year)

Annual0.00160.00100.00110.0016⑰⑱

Waste recycling
ratio (at Mitsui
Fudosan Co., Ltd.
headquarters)

By
FY2030Less
than theprevious
fiscalyear

90％

FY201980.3％

FY202075.3％

FY2021

72.4％

FY2022

69.1％

Main results in FY2022

Changefrom
FY2021

Evaluation indicator

Compared to FY2019:
1,120 increase+1,304 (+25.6%)(+31.1%) Increased due to anincrease in completed/sold properties, etc.

+1.5% Achieved

Improved through+8.3％ active use ofrenewable energy

・Selected for the CDP
Climate A List, thehighest ranking, forthe second year in arow, and as a Supplier
Engagement Leader

Due to increased
activity by people
as the effects of thepandemic lessen

Due to increased activity bypeople as the effects of thepandemic lessen and theincrease in the number ofbuildings that the indicators+7.3％ cover*For FY2019 and FY2020,
which buildings are coveredby these indicators is basedon the Act on the Rational Useof Energy; for FY2021 onward,+45.5％ the number of buildings
covered has increased toinclude those covered by
Science-Based Targets (SBTs)

Paper waste (which canbe recycled) is decreasing
as we move to paperless
3.3％ operations; the amount ofdecrease waste that cannot be recycled,
meanwhile, has plateaued.
Moreover, the total amount ofwaste is decreasing.

*1 The proportion who responded to the statement “I am proud to work for this company” with a 4 or 5 out of a five-point scale of agreement*2 Calculated by dividing the total number of training hours in FY2022 by the total number of permanent employees*3 Calculated by dividing the total amount of training expenses in FY2022 by the total number of permanent employees*4 Figures for each fiscal year are those for the beginning of the fiscal year starting April 1 of the following year
*5 Calculated based on the number of male employees whose partner gave birth in the relevant fiscal year, and the number of male employees
who used the leave system to take time off work during that fiscal year at the time of their child’s birth, as childcare leave, or other time off for the
purpose of spending time with their child. Where there are male employees who take childcare leave, etc. in a different fiscal year from that of theirchild's birth, this rate may exceed 100%.
*6 The legal employment rate rose from 2.2% to 2.3% in March 2021. Figures for each fiscal year are those for June 1 of the relevant fiscal year
*7 Plan 1 (FY2010-2014): 8% reduction; Plan 2 (FY2015-2019): 17% reduction; Plan 3 (FY2020-2024): 27% reduction. Progress is measured using afive-year average34

Declarations to Society and Participation in International Initiatives
Participation in the United Nations Global Compact
The Group supports and signed the UN Global Compact (UNGC), which comprises 10 principles relating to human rights,
labor, environment, and anti-corruption. Further, based on Group management’s commitment, we have participated in
its local network in Japan called the Global Compact Network Japan (GCNJ) and have been conducting our business inconsideration of its 10 principles.
In 2001, we established a Group Environmental Policy, and we have helped curb global warming by creating buildings
and neighborhoods which conserve energy and have low greenhouse gas emissions, and we have also made efforts inareas such as prevention of environmental pollution, reduction of waste, and conservation of water and biodiversity. Asa corporate group supporting office buildings, housing, and other infrastructure necessary for daily life, we will fulfill oursocial responsibility at an even higher level by making even greater efforts in the future in areas such as environmental
conservation.
For details on the UN Global Compact, please see the following:⇒ https://www.unglobalcompact.org/

Affiliation with RE100
The Group is a member of RE100, a global initiative committed to utilizing 100%
renewable energy. We have been fighting against climate change as a recognizedmember of the Japan Climate Leaders’ Partnership (JCLP), a coalition of Japanesebusiness associations that aims to make society more sustainable and is a local
partner of RE100. Through our participation in JCLP, we will collaborate with othercompanies that are aiming to bring about a decarbonized society and make policy
proposals, etc., to the government.
For more detailed information about RE100, please refer to the following link.
⇒ http://there100.org/companies

Supporting the Task Force on Climate-related Financial Disclosures (TCFD)
The Group agrees with the disclosure of the associated risks and opportunities
regarding climate change proposed by the Task Force on Climate-related Financial
Disclosures (TCFD). Furthermore, we are also active as a member of the TCFD
Consortium, a collective of Japanese companies supporting the TCFD.
For more detailed information about the TCFD, please refer to the following link.
⇒ https://www.fsb-tcfd.org/tcfd-supporters/

Acquired SBT initiative certification for greenhouse gas (GHG) emission
reduction targets
Greenhouse gas (GHG) emission reduction targets for the whole group have been
set to "1.5°C" based on the international Science Based Targets (SBT) initiative.
For more detailed information about the SBT initiative, please refer to the following
link.
⇒ https://sciencebasedtargets.org/companies-taking-action35

Signing up to the Principles for Responsible Investment
Nippon Building Fund Management Ltd. is in agreement with, and a signatory to, the Principles for Responsible
Investment (PRI). The PRI advocate the incorporation of ESG issues into the investment decision-making process, andby including these perspectives, the goal is to improve the performance of long-term investments and further fulfill
responsibilities as a trustee.

36External Evaluation of Sustainability
Inclusion in ESG indices
As of August, 2023

THE INCLUSION OF MITSUI FUDOSAN CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEXNAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF MITSUI FUDOSAN CO., LTD. BY MSCI OR ANY OF
ITS AFFILIATES. THE MSCI INDICES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKSOR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Various evaluations and certifications on sustainability
As of August, 2023

*Platinum Kurumin certification for childrearing support is for Mitsui Fudosan
Residential Co., Ltd.

37

Environment
Refer to the ESG data at the end of this report for the following
environment-related data.

Climate Change● Activity Indices and Goals, and Progress in Achieving Them
● Office Buildings in Tokyo Certified as Excellent Designated GHG Offices
by the Tokyo Metropolitan Government● List of Company Solar Power Stations● Trends in the Amount of Energy Consumption● Boundary for Energy Consumption● Greenhouse Gas Emissions (Scopes 1, 2 & 3)
● Trends in Three-year Averages for Greenhouse Gas Emissions● External Certifications

Water● Trends in Water Usage (Water intake, water recycling rate, andwastewater)● Boundary for Water Usage

Environmental Pollution and Resources● Recycled Food Waste (FY2022)● Tile Carpeting Recycling● Wastepaper Recycling● Used Fluorescent Bulb and Battery Recycling● Hazardous Waste (Specially Controlled Waste) Emissions● Trends in the Amount of Disposed Non-Hazardous Waste (General
Waste and Industrial Waste)● Boundary for Waste Emissions● Waste Recycling Ratio (Headquarters)● Annual Cost for Fines and Penalties Relating to the Environment● Violation of Laws, Regulations, and Ordinances Relating toEnvironmental Pollution● Number of sites covered by recognized environmental management
systems such as ISO 14001

38

Environmental Initiatives Policy

Environmental Initiatives Policy
Guided by its Group Environmental Policy, the Group engages in the three core environmental activities of load reduction(reducing the impact of its products and services on the environment), quality improvement (enhancing safety, security,and comfort while ensuring sustainability), and cooperation (collaborating and cooperating with various stakeholders) in
an integrated manner.

The Group Environmental Policy (Established November 1, 2001; Revised April 1, 2018)
Environmental Principles
We at Mitsui Fudosan are committed to social and economic development as well as global environmental
preservation under the principles of coexisting in harmony with society, linking diverse values, and achieving asustainable society represented by ourGroup Vision.

logo. Under the principles of thelogo,

represents our

symbolizes our recognition that urban development is interlinked with the planet andour aim of a society that enriches both people and the planet.
Contributing to the building of a society that realizes the sustainable development of human life is our corporate
mission, and we consider this an important business challenge directly related to increasing corporate value.
Positioning the promotion of business while addressing collaboration and cooperation with the community,
reduction of environmental burden and improvement of security, safety, and comfort as vital to harmonious
coexistence with the environment, we endeavor to create urban environments of enrichment and comfort andcontribute to the global environment.

Environmental Policy
1. We aim to take countermeasures against global warming and create a recycling society by striving to improve
environmental efficiency, reduce environmental burden, conserve energy/resources, reduce waste materials
and prevent pollution.
2. We aim to both reduce environmental burden and improve security, safety, and comfort with widespreadand comprehensive promotion of water and biodiversity conservation and introduction of diversified andindependent energy sources, in addition to low carbon.
3. In collaboration and cooperation with all of society including our customers, local communities, and thegovernment, we proactively address harmonious coexistence with the environment, build a society thatrealizes sustainable development, and implement highly effective environmental measures.
4. We will expand environment-conscious urban development such as smart cities both at home and abroad
and aim to be an environmentally advanced company that plays a leading role in the future of urban
development.
5. In addition to adhering to environment-related laws and regulations, we will establish our own standards asnecessary and promote harmonious coexistence with the environment.
6. Through environmental training and awareness-enhancing activities, we ensure that all Mitsui FudosanGroup employees have a solid understanding of our Environmental Policy and increase their environmental
awareness.
7. We provide full public disclosure of necessary information relating to such matters as our environmental
initiatives, and promote open communication with society at large through promotional activities.

39

40

Climate Change

Awareness of Climate Change
Since the Industrial Revolution, an increase in energy consumption has heightened the concentrations of greenhousegases, such as carbon dioxide (CO2), in the atmosphere, and global warming is progressing. If warming continues without
taking any effective countermeasures, there will be major changes in the earth's climate. This will cause phenomena suchas rising sea levels and abnormal weather patterns, and have a great impact on the living environments of people andother organisms. Abnormal weather patterns will also increase the risk of damage to the business activities of the Group.
To curb global warming, reduce the risk to the Group due to climate change, protect environments where people andother organisms can live, and build a sustainable, carbon-free society, the Group believes that one of its key social
missions as a real estate developer is to create, supply, and operate buildings and neighborhoods which curb energy
consumption, and have low emissions of greenhouse gases.

PolicyBased on our Group Environmental Policy, we create buildings and neighborhoods with low energy consumption andreduced emissions of greenhouse gases, and we aim to build a carbon-free society by taking steps together with ourbusiness partners, tenant companies and stores, and customers, to address global warming, such as conservation ofenergy.
In November 2021, we formulated Group action plans. We have been working hard to achieve our greenhouse gas
emission reduction goals-a 40% reduction in emissions by FY2030 (compared to FY2019 levels) and net zero by FY2050and we have been further promoting actions as part of a unified supply chain.
Action Plan 1
Improve environmental performance of new and existing properties
Action Plan 2
Greening of electricity in common areas of properties and areas used by the company
Action Plan 3
Provide Green Menu to tenants and buyers
Action Plan 4
Secure stable renewable energy sources
Action Plan 5
Initiatives to reduce CO2 emissions during construction*Other Key Initiatives
Utilization of forests, Open innovation, Acquisition of external certifications, Urban development initiatives, Improvementof internal systems, Introduction of internal carbon pricing (ICP: A mechanism to promote decarbonization by placing avalue of 5,000 yen/t-CO2 on in-house CO2 emissions), etc.
For more detailed information about Group Action Plan to Realize Decarbonized Society, please refer to the following:⇒ https://www.mitsuifudosan.co.jp/english/esg_csr/carbon_neutral/

41

Major Initiatives
Energy Conservation, Creation, and Storage
In addition to energy conservation, the Group is actively engaged in energy creation using solar power and cogeneration
systems, and energy storage using large-scale storage batteries. In this way, we create buildings and neighborhoods withlow energy consumption and reduced emissions of greenhouse gases. We are also involved in energy-saving activities
together with our business partners, tenant companies and stores, and customers.

Energy Conservation, Creation, and Storage in Office Buildings■ Efforts at TOKYO MIDTOWN HIBIYAAt TOKYO MIDTOWN HIBIYA (Chiyoda-ku, Tokyo), we employ an exterior covering and high-performance glass to reduce
thermal load, use high-efficiency systems and energy-saving equipment such as lighting control systems that utilize daylight,
and make use of waste heat from a gas cogeneration system. We also create energy through the installation of a solar
power system (generation capacity approx. 20 kW). By using these energy conservation and creation systems, we haveattained Level 3 for Perimeter Annual Load (PAL) and Energy Reduction Ratio (ERR) evaluation in the Tokyo Metropolitan
Building Environmental Planning System, and the S Rank under the CASBEE (Comprehensive Assessment System for Built
Environment Efficiency) scheme.
We have also installed a new sub-plant for district heating and cooling (DHC), and by linking it with an existing DHC plantin the Hibiya area, we have helped realize a high-efficiency energy supply for the entire district.
Overview of Environmental Efforts at TOKYO MIDTOWN HIBIYA■ Efforts at the Nihonbashi Takashimaya Mitsui Building

The Nihonbashi Takashimaya Mitsui Building (Chuo-ku, Tokyo) has attained Level 3 for PAL/ERR evaluation in the Tokyo
Metropolitan Building Environmental Planning System.

42■

Office Buildings in Tokyo Certified Again as Excellent Designated GHG Offices
by the Tokyo Metropolitan Government

Since fiscal 2010, we have been acquiring and renewing certification for office buildings in the Tokyo metropolitan area
based on the standards established by the Tokyo Metropolitan Government for Excellent Designated GHG Offices*.
At these office buildings, we are switching to energy-saving equipment, holding meetings to promote CO2 reduction,
strengthening systems for collaboration with tenants, and promoting energy conservation activities.
As of April 1, 2023, the Company has six office complexes (six buildings) designated as Top Level Offices and four officecomplexes (six buildings) as Semi-Top Level Offices under the Excellent Designated GHG Offices program.

* Tokyo Metropolitan Government’s Excellent Designated GHG Offices: These standards recognize office buildings that have made particular strides
in promoting measures designed to combat global warming, according to a 213-point investigation that looks at areas such as greenhouse gas (GHG)
emissions management systems, building performance, and how office facilities are operated, in line with provisions by the Tokyo Metropolitan
Government. The standards also relax the obligatory rates for GHG emission reductions. Under these standards, buildings can be designated TopLevel Offices or Semi-Top-Level Offices.

List of Tokyo Metropolitan Government's Excellent Designated GHG Offices Certifications (as of April 1, 2023)

Top Level Offices

Semi-Top Level Offices･ Nihonbashi Mitsui Tower･ Nihonbashi 1-chome Mitsui Building･ Tokyo Midtown･ Shiodome City Center･ Ginza Mitsui Building･ Muromachi Higashi Mitsui Building･ Gran Tokyo North Tower･ Muromachi Furukawa Mitsui Building･ Sumitomo Mitsui Banking Corporation Building･ *Muromachi Chibagin Mitsui Building･ TOKYO MIDTOWN HIBIYA･ Iidabashi Grand Bloom

6 office complexes (6 buildings)

4 office complexes (6 buildings)
Total: 10 office complexes (12 buildings)*Note: Muromachi Higashi Mitsui Building, Muromachi Furukawa Mitsui Building, and Muromachi Chibagin Mitsui Building are three buildings
considered to be one office complex.

43

Energy Conservation at Large-Scale Logistics Facilities
At its large-scale logistics facilities, Mitsui Fudosan Logistics Parks (MFLP), the Company is installing LED lighting andsolar power systems. MFLP is an urban development-type logistics facility that aims to coexist with the local communityand create a lively surrounding area, and has reduced its environmental impact by introducing solar power generation
facilities on the site and actively utilizing a "green power supply service".

MFLP Funabashi Ⅲ

MFLP Funabashi Ⅲ

MFLP Ichikawa Shiohama Ⅱ

Housing-related Initiatives
In April 2022, Mitsui Home released a new product, IZM, based on the concept of modern design for a decarbonizedsociety. This product meets the ZEH (Net Zero Energy House) standard even in large spaces with large openings andlarge atrium, and can also be linked to energy generators such as solar power generation systems, energy storage
systems, V2H, etc., thereby contributing not only to reduced running costs in daily life but also to improved resilienceby securing emergency power sources during emergencies. The design features a linear, modern exterior composedof a newly developed "wing roof" and a symbolic exterior "privacy wall," as well as a "lanai," a semi-outdoor space thatprovides a borderless connection between the inside and outside of the building. The building offers a variety of spacesthat allow customers, especially those with children, to enjoy a free and affluent lifestyle that is unique to them.
The "privacy wall", which shields the building from outside view, is made of wood and integrated with the building.
By maximizing the use of wood, a sustainable building resource that is friendly to people and the global environment,
reduced construction period and high environmental performance is achieved.

Megasolar Projects
The Company is involved in megasolar power projects, and as of March 31, 2023, operates five megasolar power
stations. The total generating capacity for the five stations is 72 MW, and in fiscal 2022 they generated a total of
87,608,446 kWh of power, which is equivalent to the annual power needs of approximately 20,000 homes.
Note: Based on the Ministry of the Environment’s FY2021 Survey on the Actual Conditions of Carbon Dioxide Emissions from Residential Sector

44

Energy Management System
The Group is installing optimal energy management systems at each type of property: office buildings, retail properties,
condominiums, and detached housing. We are also introducing area energy management systems to link the energy
management systems of individual buildings, and manage energy over an entire block.
Examples of Energy Management System Adoption
Type of building

Type of energy management system

Office buildings

BEMS

Commercial facilities

BEMS

Buildings with Energy Management Systems Installed･ TOKYO MIDTOWN HIBIYA･ Nihonbashi Takashimaya Mitsui Building etc.
･ LaLaport TOKYO-BAY･ LaLaport KOSHIEN･ MITSUI OUTLET PARK KITAHIROSHIMA etc.
Mitsui Fudosan Residential's

Built-for-salecondominiums･ HARUMI FLAGHEMS (each condominium), MEMS
(communal areas, overall)･ Park City Kashiwa-no-ha Campus The Gate Tower･ Park Homes Urawa Tokiwa 10-chome･ Park Homes Nerima Fujimidai Station Gate etc.

Built-for-sale detachedhousing

Mitsui Fudosan Residential's
HEMS･ Fine Court Eifuku 4-chome･ Fine Court Meguro Ookayama etc.
Mitsui Home's･ green's II Series

Custom-built detachedresidence･ green's ZERO Series

HEMS･ Lucas･ Lascenecompatible with all above products･ Kashiwa-no-ha Smart City (Kashiwa-no-ha AEMS)･ Nihonbashi Smart Energy Project

Entire block

AEMS, TEMS, etc.

･ Toyosu Smart Energy Project･ Yaesu Smart Energy Project･ Park City Musashikosugi The Garden etc.

Note:
BEMS: Building Energy Management System
HEMS: Home Energy Management System
MEMS: Mansion Energy Management System
AEMS: Area Energy Management System
TEMS: Town Energy Management System

45

Toyosu Smart Energy Project Movie

Smart Meters
We have been installing pulse output meters (smart meters) in required locations in all our properties, which makes it
easier to understand electricity usage.

Curbing CO2 Emissions from Automobiles
To restrict CO2 emissions from automobiles, the Group installs electric vehicle recharging stations and provides services
at its retail properties that encourage the use of public transportation. Mitsui Fudosan Realty Co., Ltd. is installingcharging stations for electric vehicles (EVs) and plug-in hybrid vehicles (PHVs) at the Mitsui Car Park Leasing pay-by-thehour parking lots. Charging stations for EVs and PHVs are also being installed in the parking lots of retail properties like
LaLaport SHONAN HIRATSUKA (Hiratsuka City, Kanagawa) and built-for-sale condominiums like Park City Musashikosugi
The Garden (Nakahara-ku, Kawasaki City).

EV and PHV charging station at the Mitsui
Repark Henn na Hotel Maihama Tokyo
Bay Parking Lot (Urayasu City, Chiba)

Green Lease System
In order to promote operations of more environmentally friendly facilities, Mitsui Fudosan and Mitsui Fudosan Logistics
Park Inc. will gradually introduce green lease clauses into tenants' leasing contracts.
This introduction of the system is one of our efforts to unite with tenants and implement environmentally friendly repairs
and building operations. Our aim is to bring in tenants of our property portfolio on our efforts to promote ESG issues.
46

Climate-related Financial Disclosure in Accordance with TCFD
TCFD and Mitsui Fudosan's Position
The Mitsui Fudosan Group has announced its endorsement of the agenda of the Task Force on Climate-related Financial
Disclosures (TCFD), which promotes corporations and others to disclose information relating to climate-related risks
and opportunities. VISION 2025, our group Long-Term Vision, states as one of its aims the successful establishmentof a sustainable society through the creation of neighborhoods, and we are deploying neighborhood creation andservices that contribute to addressing challenges relating to people, neighborhoods, and society. To mitigate risk throughour business activities, including risk of damage from abnormal weather patterns linked to climate change; preserve
environments where people and other living creatures can flourish; and establish a sustainable decarbonized society, weare taking the TCFD recommendations as a point of departure to disclose our analysis and response to climate changerelated business risks and opportunities, and other related information.

Scenario Analysis
Assumptions and Object of Analysis
Our analysis is based on the 1.5˚C and 4˚C Scenarios outlined in the Sixth Assessment Report issued by the United
Nations Intergovernmental Panel on Climate Change. As the time axis for analysis, we considered the typical life
cycle of real estate assets, and calculated the impact of climate change by approximately the year 2050. In this
scenario analysis, we used our Housing, Office Buildings, and Retail Properties businesses as the object of analysis,
since these three categories represent the principal focus of the commercial activities of the Mitsui Fudosan Group,
and are also likely to be major recipients of climate change impact.

Analysis Process
In accordance with the TCFD final report issued in June 2017, we carried out our analysis in four steps.

■ (1) Assessment of significant risks and opportunities

Using a variety of relevant sources, we identified climate change-related risks and opportunities having a potentiallysignificant impact on the business of the Mitsui Fudosan Group.

■ (2) Future world definition

For significant risks and opportunities defined in (1), we used projections from external entities such as scenarios fromthe Intergovernmental Panel on Climate Change (IPCC), SDS, NPS, and NZE2050 scenarios from the International Energy
Agency (IEA), and a number of others to project changes in society, government, customers, and suppliers in 2050 for
the 1.5˚C Scenario and the 4˚C Scenario.

■ (3) Estimate of business impact

Based on external information gathered in (2), we estimated the financial impact on the Mitsui Fudosan Group'sbusinesses. For risks and opportunities where quantitative data was difficult to obtain, we performed a qualitative
analysis.

■ (4) Review of response measures (planned)

We reviewed response measures to climate change-related risks and opportunities with specially significant potential
impact. Further review is planned to identify specific measures for adoption.

47

Analysis Result 1. Principal Risks and Opportunities
Based on external information, we identified climate change-related risks and opportunities, and gathered future
projections for each risk and opportunity. With reference to the TCFD final report as well as other reports and sources
relating to climate change, we considered risks and opportunities accompanying the transition to a decarbonized society(measures/regulations, industries/markets, technology) as well as physical risks and opportunities caused by climatechange (chronic, acute). The significant risks and opportunities we identified that may have an impact the Mitsui FudosanGroup's three core businesses between now and 2050 are shown in the table below.
Under the 1.5˚C Scenario, our Housing Business could be affected by an increase in carbon taxes, which would push theprice of raw materials prices and transport costs higher. While ZEH and energy conservation renovations would become
more widespread, under the 4˚C Scenario, an increase in the number of extremely hot days would have a variety of
impacts, including reduced labor productivity, and the result could be higher new construction costs. Under the 1.5˚CScenario, our Office Buildings Business is also projected to see an increase in procurement costs. Costs may also rise due
to higher GHG emissions taxes and expanded ZEB construction. At the same time, in terms of business opportunities,
we would expect increased lease income from properties with superior environmental performance. Under the 4˚CScenario, office air conditioning costs and damage from high tides and flooding are a potential concern. Finally, in our
Retail Properties Business, the 1.5˚C Scenario indicates higher costs of the same type as in the other business areas.
Lower lighting and heating costs can be expected, thanks to more efficient and renewable energy use by AI-equipped
air conditioning and other systems, but under the 4˚C Scenario, retail properties situated near the ocean may experience
increased risk of damage from high tides and flooding.
Classification

Principal risks andProjected future state

opportunities

In addition to taxes on GHG emissions by the Group, we expect higher costs for raw
Major carbon tax increase

for transport and air conditioning. At the same time, low-carbon structures and otherproperties with superior environmental performance will be better-positioned to compete.

MeasureTransitionmaterials (steel, cement, etc.) which are significant on a base unit basis, as well as

Energy standards for new and renovated structures will be tightened, requiring additional
Energy conservation

capital investment. Furthermore, decarbonized energy sources and ZEH will become

measuresmandatory, more ZEB properties will be built, and more residential structures will beenergy-efficient.

MarketCustomer conduct change
Propagation of technology

Technology

for renewable energy andProducts with superior environmental performance will be in greater demand and be
more competitive.
The propagation of energy conservation technology will lead to more renovations toenergy conservation

enhance energy conservation.

Average temperature

costs and construction delays. In addition, increased use of air conditioning will push up

On-site operations will be hindered on extremely hot days, leading to higher operational
Chronic

increase

facilities management costs, but these will be offset to some degree by enhanced air
conditioning efficiency.

PhysicalRising sea levels
AcuteIntensification of abnormal
weather patterns

Certain coastal structures will be damaged by typhoon-generated tidal surges
accompanying sea level rise.
Frequent heavy precipitation and flooding within the confines of levees can result insuspension of on-site operations and construction delays. In addition, customer safety
may be threatened, and facilities assets may be damaged.

48

Analysis Result 2. Estimate of Business Impact
We reviewed available quantitative data and the significance of risks and opportunities. For selected principal risks andopportunities, we estimated the financial impact on the Mitsui Fudosan Group's business in the year 2050. Under the
1.5˚C Scenario, we projected a comparatively large negative impact on costs associated with higher carbon taxes, andthe cost of meeting tightened energy conservation standards. At the same time, we estimated that these impacts would
be fully offset by opportunities to construct more buildings with superior environmental performance, an area where theMitsui Fudosan Group maintains a competitive advantage, and by reductions in heating and lighting costs made possibleby advanced energy conservation technology. Under the 4˚C Scenario, we projected only limited actual losses from hightides and flooding, and overall, relative to the 1.5˚C Scenario we estimated there would be fewer factors with a major
financial impact.
Results of financial impact
Type

Principal risks and opportunities

estimate

Factors with possible business impact

4℃ Scenario 1.5℃ Scenario

Major carbon tax increaseTax applicable to company emissions

Minor

Moderate

Major increase in raw materials costs

Minor

Moderate

Moderate

Large

Minor

Moderate

Moderate

Moderate

Moderate

Moderate

Moderate

Minor

Minor

Moderate

Minor

Moderate

Minor

Minor

Minor

Moderate

Expansion of energy conservation renovation business

Moderate

Moderate

Reduced air conditioning costs through AI

Moderate

Moderate

Moderate

Moderate

Moderate

Moderate

Increase in energy conservation renovation costs due

Transition
Energy conservation measures

to strengthened energy conservation requirements forbuildings
Increase in ZEH construction costs

Risk

Revenue reduction from construction delays due to
Average temperature increase

greater number of extremely hot days
Increase in air conditioning load

PhysicalRising sea levels / intensification Flood damage due to high tides and heavy precipitationof abnormal weather patterns
Major carbon tax increaseaccompanying sea level rise
Cost control through introduction of low-carbon
materials
Share expansion as a result of ZEH becoming

Energy conservation measures

Creation and sales of carbon credits as a result of ZEH
construction

Transition
Customer conduct change

Opportunity

requirement

Shift to buildings with superior environmental
performance

Propagation of technology forrenewable energy and energy
conservation

PhysicalAverage temperature increase

Reduced lighting and heating costs due to increased
energy conservation performance

Results Derived from Scenario Analysis

49

Results Derived from Analysis
We conclude from the results of our scenario analysis that regardless of whether actual global climate change reflects
the 1.5˚C Scenario or the 4˚C Scenario, the businesses of the Mitsui Fudosan Group are sustainable and display aconsistent resilience during the period through to 2050. Through reduction of GHG base units, promotion of energy
conservation, and other efforts, the Mitsui Fudosan Group is promoting mitigation of the risk of higher carbon taxes,
tightened regulations, and other climate-related risk. In addition, by reinforcing our superior market position, for example
by deploying environment-conscious urban development in and outside Japan, such as smart cities in collaboration witheveryone in our supply chain, including general contractors with construction technology for superior environmental
performance, we will expand the business opportunities resulting from transition to the decarbonized society. Our
scenario analysis enabled us to once again confirm the direction of our environmental efforts to date. Going forward,
Mitsui Fudosan Group will work to enhance its resilience and maximize its opportunities through even more detailed andextensive scenario analysis and promotion of a wide range of response efforts.
Recommended disclosure items

Disclosure in ESG Report

Governance: Disclose the organization's governance around climate-related risks and opportunitiesa) Describe the board's oversight of climate-related risks and opportunities Sustainability Promotion Frameworkb) Describe management's role in assessing and managing climate-relatedrisks and opportunities

Sustainability Promotion Framework

Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, andfinancial planning where such information is materiala) Describe the climate-related risks and opportunities the organization Environment > Climate Change > Climate-related Financial
has identified over the short, medium, and long term

Disclosure in Accordance with TCFDb) Describe the impact of climate-related risks and opportunities on the Environment > Climate Change > Climate-related Financialorganization's businesses, strategy, and financial planning

Disclosure in Accordance with TCFDc) Describe the resilience of the organization's strategy, taking into
consideration different climate-related scenarios, including a 1.5℃ or lower
scenario

Environment > Climate Change > Climate-related Financial
Disclosure in Accordance with TCFD

Risk Management: Disclose how the organization identifies, assesses, and manages climate-related risksa) Describe the organization's processes for identifying and assessing
climate-related risks

Governance > Compliance > Risk Management Systemb) Describe the organization's processes for managing climate-related risks Governance > Compliance > Risk Management Systemc) Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organization's overall risk
management

Environment > Climate Change > Climate-related Financial
Disclosure in Accordance with TCFD

Metrics and targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where suchinformation is materiala) Disclose the metrics used by the organization to assess climate-relatedrisks and opportunities in line with its strategy and risk management
processESG Data > Climate Change > Activity Indices and Goals, andProgress in Achieving Them
Environment > Climate Change > Climate-related Financialb) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas Disclosure in Accordance with TCFD
ESG Data > Climate Change > Activity Indices and Goals, and(GHG) emissions, and the related risks

Progress in Achieving Themc) Describe the targets used by the organization to manage climate- ESG Data > Climate Change > Activity Indices and Goals, andrelated risks and opportunities, and performance against targets

Progress in Achieving Them

50

Other Environmental data
Environmental Data by Prefectural/Municipal Ordinance
The Group wholeheartedly endorses all local government policies relating to climate change, including those of theTokyo Metropolitan Government, and actively provides environmental data in accordance with prefectural/municipal
ordinance.

Environmental Data Based on Ordinances of the Tokyo Metropolitan Government (Bureau of Environment,
Tokyo Metropolitan Government Report on Measures against Global Warming)⇒ https://www8.kankyo.metro.tokyo.lg.jp/ondanka/ad135gcce/index.php?ac=establishment&type=ent&code=01049&s
ys=13⇒ https://www8.kankyo.metro.tokyo.lg.jp/ondanka/ad135gcce/

Environmental Data Based on Ordinances of the Yokohama Municipal Government⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2021/env_yokohama_2021.pdf

Environmental Data Based on Ordinances of the Saitama Prefectural Government⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/env_saitama_2022.pdf

Environmental Data Based on Ordinances of the Hiroshima Municipal Government⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/env_hiroshima_2022.pdf

Environmental Data Based on Ordinances of Tokyo Metropolitan Area Minato City Municipal Government(Relevant Mitsui Fudosan Places of Business No. 435–438) (Japanese version only)⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/env_minatoku_2022.pdf

51

WaterPolicyThere are concerns that the number of natural disasters resulting from climate change, itself caused by global warming,
are on the rise, and that there are likely to be a whole range of adverse effects, including in the area of water resources.
It is predicted that by 2050, around 40% or more of the global population could face severe water shortages andwater-stress. Water quality and availability also impact on such areas as securing health and stable food supplies, thesustainability of energy, urban communities, employment, and ecosystems.
While paying attention to sustainable water management and conservation, we have been developing buildings andcreating neighborhoods, based on our Group Environmental Policy, that help preserve the water environment throughmeasures like reducing water use or improving efficiency and replenishing subterranean aquifers. We will also preserve
the water environment through water conservation and effective use of water resources via neighborhood creation
together with our business partners, tenants of our property portfolio, stores, and customers.

Goals and Progress in Achieving Them
We shall strive to reduce water intake per base unit (of floor area) from the previous fiscal year through measures suchas installing water-saving equipment in our newly constructed buildings or switching to such equipment when renovating
existing buildings.

Major Initiatives
Water Conservation
The Group installs water-saving equipment in newly constructed office buildings and retail facilities. We have also beenswitching to water-saving equipment in existing buildings when they are renovated, and are making efforts to conserve
water during routine building management and operations together with our business partners, tenants, stores, andcustomers.

Adoption of Water-saving Equipment
At Tokyo Midtown (Minato-ku, Tokyo), we are saving water by installing water-saving sanitary equipment, automaticfaucets and similar facilities.
Large-scale renovation took place at MITSUI OUTLET PARK JAZZ DREAM NAGASHIMA (Kuwana City, Mie), and in theextended area we installed 49 ultra-water-saving toilets (flush volume 5.5 liters). LaLaport Toyosu (Koto-ku, Tokyo), LaLa
Garden Kawaguchi (Kawaguchi City, Saitama), and Treage Shirahata (Fujisawa City, Kanagawa) are also upgrading tosuper water-saving equipment as they become due for renewal. At MIYASHITA PARK (Shibuya-ku, Tokyo), a commercial
facility integrated with a park, WOSH, a water circulation type hand washing stand, was installed as part of hygiene
measures.
The built-for-sale and rental condominiums and built-for-sale detached housing which Mitsui Fudosan Residential sell use
water-saving toilets and bathing room shower heads with a water stop button.

52

Use of Well Water for Irrigation
To reduce the use of clean water, well water (ground water) is used to irrigate the greenery areas of Park City Kashiwano-ha Campus The Gate Tower (Kashiwa City, Chiba). Water used in this way returns to subterranean aquifers, helping to
reduce the impact of water usage.

Use of Rainwater and Grey Water
Mitsui Fudosan aims to effectively use water resources by taking advantage of rainwater and grey water (processed
wastewater) at its office buildings, retail properties and built-for-sale condominium buildings.
At TOKYO MIDTOWN HIBIYA (Chiyoda-ku, Tokyo), we collect rainwater and drainage water* from air-conditioners
in a rainwater utilization tank (water storage capacity approximately 400 m3), and after treatment use it as generalservice water for toilet flushing and similar purposes. We also use grey water, obtained by treating kitchen wastewater,
miscellaneous wastewater, and cooling tower blowdown water, as general service water in the same way.
*Drainage water: Excess wastewater from humidifiers of air-conditioners, and water cooled and condensed on cooling pipes.

Letting Rainfall Reach the Ground and Preventing Rainfall Runoff
In our office buildings and retail facilities, we direct rainwater underground by utilizing water-permeable paving for parking
lots, walkways, on-site roads, and external sections of the building. We also aim to preserve the water environment andprevent flooding with temporary storage tanks and flow adjustment ponds to prevent rainwater runoff in large volumes.

Water Stress Assessments
Using the World Resources Institute’s Aqueduct assessment tool, we conducted assessments of water stress and water
risks. As a result, we found that none of our domestic properties were in regions where water risks were "high" or above.
Conversely, some of our properties overseas were in regions where water risks were "high" or above. We will continue to
conduct regular investigations and ensure appropriate water usage while consulting with the relevant parties.

53

Environmental Pollution and Resources

PolicyBased on its Group Environmental Policy, the Group prevents environmental pollution by observing laws, regulations,and ordinances relating to air pollution, water pollution, soil contamination, and hazardous materials, and we work hardto curb emissions of pollutants and contaminants that are not subject to regulation by laws, regulations, and ordinances.
We also ensure appropriate management and disposal of hazardous materials when acquiring land as well as in thebuilding design stage, thereby preventing hazardous materials impacts on the environment or building users. Based on
our Group Environmental Policy, we aim to create a recycling society by working, together with our business partners,
tenant companies and stores, and customers, to conserve resources and reduce waste. At the same time, we will prevent
impacts on the environment due to waste through appropriate disposal of any waste that cannot be reused or recycled.

Goals and Progress in Achieving Them
Resources and Waste
We shall promote the 3Rs (reduce, reuse, recycle) and work to reduce general and industrial waste emissions per baseunit from the previous fiscal year, and we shall appropriately dispose of wastes in accordance with laws, regulations, andordinances relating to waste disposal. In addition, our goal is to raise the waste recycling ratio at our headquarters officeto 90% by 2030.

Major Environmental Pollution Initiatives
Prevention of Air Pollution
Measures to Address Exhaust Gas at Facilities Producing Soot and Smoke
Boilers, cogeneration systems, and other soot and smoke producing facilities larger than a certain size and installed at
office buildings, retail properties, hotels, large-scale logistics facilities, and other properties managed and operated by
the Group, are subject to regulation under laws, regulations, and ordinances relating to air pollution. At these regulatedsoot and smoke producing facilities, we have installed exhaust gas treatment equipment, and we are working to prevent
air pollution by curbing emission of air pollutants such as nitrogen oxides and sulfur oxides.

Prevention of Water Pollution
Wastewater Treatment at Office Buildings, Retail Facilities, and Hotels/Resorts
Restaurants above a certain size in office buildings and retail properties, as well as hotels and resort facilities managed
and operated by the Group are subject to regulation under laws, regulations, and ordinances relating to water pollution.
At these regulated facilities, we install wastewater treatment equipment, and discharge wastewater into sewage systems,
rivers, the ocean, or other public waters only after treatment that ensures it meets regulatory standards.

54

Lowering Environmental Impact of Cleaning Solutions
Mitsui Fudosan Facilities Co., Ltd. has been using eco-chemicals with low environmental impact based on its own
standards, with the exception of chemicals designated by its customers, for cleaning solutions (toilet cleaner, floor andgeneral-purpose cleaner, wax, and removers). Mitsui Fudosan Residential Service Co., Ltd. in principle uses cleaning
solutions with low environmental impact based on its own standards for cleaning condominiums, with the exception ofsome managed properties.

Mitsui Fudosan Residential Service Co., Ltd.'s Standards for Cleaning Solutions with Low
Environmental Impact
Cleaning solutions that satisfy the following conditions:◎ More than 60% biodegradable (after 28 days)◎ Chemically neutral◎ Low biochemical oxygen demand (BOD) and chemical oxygen demand (COD)

Responding Appropriately to Soil Contamination
The Mitsui Fudosan Group complies with relevant laws and regulations for surveying soil history. We also implement soil
contamination surveys and take measures to remedy contaminated soil as needed.

Reduction of Hazardous Substances
Appropriate Disposal of Chlorofluorocarbons and Asbestos
When equipment containing chlorofluorocarbons is disposed of at our office buildings, retail properties and hotels, it ishandled in an appropriate manner in accordance with relevant laws and regulations. In addition, in demolition and repairof buildings, retail facilities, condominiums and other structures, we observe laws and regulations relating to asbestos,and take proper measures such as notifying government agencies, and preventing the dispersion of asbestos.

Sick Building Countermeasures
For our office buildings and retail facilities, we have added guidelines for combating sick building symptoms to our ecospecifications (design request form, etc.). We make concerted efforts to prevent formaldehyde and other volatile organic
compounds (VOCs) from entering our buildings, because they are a cause of sick building syndrome. Mitsui Garden
Hotels uses low-formaldehyde building materials* including building components, adhesives, and paints. The housingbusiness promotes the use of low-formaldehyde building materials to limit substances that cause sick building syndrome,such as formaldehyde.
*Low-formaldehyde building materials: Building materials rated by Japanese Industrial Standards (JIS) and Japanese Agricultural Standards (JAS) as
having the minimal or second-lowest level of formaldehyde emissions.

Measures to Address Indoor PM2.5 Pollutants
Mitsui Home Co., Ltd. offers Smart Breeze, a healthy air-conditioning system for its custom-built detached residences.
Smart Breeze is a 24-hour ventilation system, equipped with a high-performance filter that captures particulate matter ofaround 2.5 μ m in size. This prevents infiltration not only of pollen and dust, but also of PM2.5, an air pollutant thought
to have effects on health.

55

Overview of High-Performance Filter

Principal Resource- and Waste-related Efforts
Initiatives for Sustainable Forest Resource Procurement
To ensure sustainable procurement of forest resources, Mitsui Home Co., Ltd. as a company using such resources has
formulated the Mitsui Home Group Resource Procurement Guidelines. The guidelines outline Mitsui Home's procurement
policies and their scope of applicability, and are aimed at maintaining abundant ecosystems, sustaining local
communities, practicing strictly sustainable procurement of forest resources, and contributing to reducing our global
environmental load.

The Mitsui Home Group Resource Procurement Guidelines (Overview)<Procurement Philosophy>
As a company that draws on trees and forests in the conduct of its business activities, Mitsui Home adheres
strictly to a policy of sustainable forest resource procurement to ensure an abundant ecosystem and tomaintain regional society. Moving forward, the company will work diligently to reduce its global environmental
load.
<Procurement Policy>
1 Confirm the legality of timber and lumber products
When procuring from countries and regions where the possibility of illegal harvesting exists, the legality oftimber and lumber procured are confirmed in advance.
2 Procure sustainable forest resources
We promote procurement of forest resources from sources that practice sustainable harvesting, to protect
precious forests, their environments and biodiversity.
3 Protect precious species
We work to protect valuable and endangered tree species.
4 Manage and maintain the supply chain
We work with partners to manage and promote legal, sustainable supply chains.

56

Life Cycle Analysis (LCA)
We are working to reduce the environmental impact of our buildings across their life cycle by analyzing every stage fromtheir design, construction and management to their disassembly and disposal.
We also conduct life cycle analyses to reduce the environmental impact of our buildings during the planning and designof real estate development projects, and have received CASBEE certification as a result.
Further, to extend the service life of our buildings, in addition to improving their earthquake resistance, durability, andfire resistance, we design them so that the maintenance, management, and renewal of piping and other equipment
can be undertaken with ease. Additionally, Mitsui Fudosan Residential Co., Ltd. expects to revise the cycle of largescale repair work from 12 to 18 years by adopting highly durable part materials in condominiums for sale. This is
expected to reduce the number of large-scale repairs and the accompanying labor and burden on the condominium
management association, as well as reduce life-cycle CO2 emissions at the operational stage by reducing the amount ofwaste materials processed and the number of vehicles used for transportation, etc. In addition, we conduct appropriate
maintenance and renovations after buildings go into service. For example, Mitsui Home Co., Ltd. offers the Keep Well
long-term building support system to maintain quality and performance over the long term through a combination of
inspection and upkeep every 10 years after building delivery.
Also, to reduce the frequency of building disassembly and disposal, we have been working to improve structures built toold earthquake-resistance standards. Specifically, we are using the Refining Architecture method, which transforms old
structures into like-new buildings using the same frame. In a Refining Architecture project we worked on with Shigeru
Aoki Architect & Associates (on a rental property built in 1971 in Shinjuku-ku) we reused approximately 84% of theexisting frame. With the cooperation of Shigeru Aoki Architect & Associates, we conducted joint research for this project
to evaluate the effect of the Refining Architecture method on the reduction of CO2 emissions with Professor Tsuyoshi
Seike of the Graduate School of Frontier Sciences at The University of Tokyo. It was found that the method would reduce
CO2 emissions by 72% compared to when building a new structure of the same size.

Upcycling in the Housing Business
Mitsui Fudosan Residential Co., Ltd. is now working to upcycle sites or items left in existing buildings that were
unfortunately scrapped because they were difficult to reuse.

We also recognize that project sites and surrounding areas

have their own original “memories” that comprise the sites’ history and characteristics, the design blueprints during
construction of existing buildings, the methods used to create the materials, the production location for the finishingmaterials, the ideas of previous owners, and other factors. We apply these to product planning.
Upcycling57

3Rs Initiatives
The Group is working, together with business partners, tenant companies and stores, and customers, to conserve
resources and reduce waste through the 3Rs (reduce, reuse, and recycle), while striving to prolong the useful life of its
buildings. We also appropriately dispose of wastes.

ReduceTo reduce the generation of waste, we make every effort to restrict the use of disposable products, and have introduced
a metering system. In an attempt to reduce waste from stores, our retail facilities feature a metering system that charges
for the volume of waste generated.

Reuse
The Group aims to reuse materials instead of throwing them away to conserve resources and reduce waste. Every
year since 2008, we have held the &EARTH Clothing Support Project — Bring a Smile to the World with Your Clothes— at retail properties operated by the Mitsui Fudosan Group. In this project, unneeded clothing is collected, and thendonated to refugees and disaster victims in countries all over the world through the NPO Japan Relief Clothing Center. By
promoting reuse of clothing, we contribute to the reduction of waste, and by working collaboratively with NPOs activeon the international stage, we also help support people who need assistance due to poverty, natural disasters broughton by climate change, and conflicts.
(Further details can be found at the following URL.)⇒ https://and-earth.mitsuifudosan.co.jp/clothes/(Japanese version only)

Volunteers

Recycle■ Recycling Food Waste
At our office buildings and retail properties, working together with restaurants, food waste from restaurants is recycled
into fertilizer and feedstock for livestock, or converted into biomass energy (electricity and gas).
At the resort hotel HAIMURUBUSHI (Taketomi Town, Yaeyama District, Okinawa Prefecture), we make compost out ofcoffee grounds from our restaurants, and use this compost to cultivate herbs and vegetables in the hotel gardens. Inturn, the herbs and vegetables are served in our restaurants. Other food waste is processed on the premises with a foodwaste processor that uses microbes. In addition, at TOBA HOTEL INTERNATIONAL (Toba City, Mie), used cooking oil iscollected and handed over to an industrial waste disposal company for recycling as fuel. Similarly, NEMU RESORT (Shima
City, Mie) has been recycling used cooking oil since fiscal 2005.
At TOKYO MIDTOWN (Minato-ku, Tokyo), we classify wastes into 21 types, and we are working together with shops
and tenants to recycle and appropriately dispose of waste. We have a total of 10 separated garbage storage spaces, bybuilding and application, and appropriately store and manage waste until it is carried away from the site. In addition, we
are working to ensure proper separation and recycling by installing garbage stations with easy-to-understand separation
instructions in the office buildings of Tokyo Midtown Management Co., Ltd.

58

■ Recycling of Environmentally Friendly Tile Carpeting

Used tile carpeting from office buildings managed by the Group is collected and recycled into environmentally friendly
tile carpeting, which is then reused in office buildings in the Tokyo metropolitan area. This recycling system uses
environmentally friendly tile carpeting to conserve resources and reduce incineration waste, which in turn helps reduce
CO2 emissions.

■ Wastepaper Recycling Loop System

In collaboration with traders of used paper, paper manufacturers, and paper distributors, the Group has created aunique recycling loop system for wastepaper, which is collected from office buildings managed by the Group in Tokyo,
and from LaLaport TOKYO-BAY (Funabashi City, Chiba). The wastepaper is recycled into original recycled office paper
and is reused as toilet paper.
Outline of Wastepaper Recycling Loop System

59

■ Used Fluorescent Bulb and Battery Recycling System

The Company has established a recycling system for used fluorescent bulbs and batteries in cooperation with four
subcontractors including a recycling company and a transport company. Used fluorescent bulbs and batteries at
office buildings managed by the Group are recycled through this system. Mercury extracted from the collected usedfluorescent bulbs and batteries is reused as a raw material for new fluorescent bulbs. Separated aluminum and glass arealso reprocessed into recycled aluminum and glass to recycle everything that can be recycled.
Schematic diagram of used fluorescent bulb and battery recycling60

■ Kisarazu Concept Store , a venue for clothing recycling

Issues in the fashion industry include how best to reduce the amount of leftover stock and how to develop supply chainswith minimal environmental impact; we opened this store to work to address these issues along with the tenants of ourcommercial facilities and others, by utilizing items that could not previously be offered to consumers through conventionalsales channels—items such as seconds or dead stock languishing in warehouses. By introducing new materials and ways
to create new items through upcycling or similar, we have enabled new shopping experiences.
By promoting initiatives aimed at recycling clothing into soil and environmentally friendly fuels and the like, and byoffering support to activities by companies and organizations researching these technologies, we are playing a part inmaking society more sustainable.
We provide a forum where a range of participants—brands, consumers, and the companies, academics, andorganizations researching and developing new technologies—can come together and connect with one another. Thisvenue will also provide a starting point for us to create a cycle of information sharing and corporate support.

Efforts to Appropriately Dispose of Waste
The Group promotes the 3Rs, and appropriately disposes of wastes that cannot be reused or recycled based on laws,
regulations, and ordinances relating to appropriate disposal of wastes. The Commercial Facilities Division completed the
optimization of contracts with waste disposal companies. Since then, to maintain proper disposal, annual waste checks
at all facilities and on-site inspections at one randomly selected property have been conducted. In addition, waste
checks are always conducted when engaging new business partners or changing business partners.

Appropriate Storage, Management, and Disposal of PCB Waste
Appropriately stores, manages, and disposes of PCB waste at its office buildings, retail facilities, and hotels based on the
Law Concerning Special Measures Against PCB Waste.
61

Biodiversity

PolicyUnderstanding that considering its impact on biodiversity on a global scale is a key management issue, the Group
engages in efforts to protect biodiversity throughout its business activities while also considering the impact that its
supply chains have on biodiversity.
As part of our business activities, based on our Group Environmental Policy, we strive to protect precious naturalenvironments in urban areas and preserve the trees and forests that pass on the memories and history of the land. We
also work to create new green spaces in urban areas. Further, recognizing the maturity that comes with age, we are also
working to create and restore greenery and biotopes that are in harmony with the surrounding environment and that
protect biodiversity.
Moving forward, we will proactively disclose information on initiatives such as these while referring to the Taskforce on
Nature-related Financial Disclosures (TNFD) framework, a tool for the disclosure of information on nature-related risks
and opportunities.

Mitsui Fudosan Group Biodiversity Policy (Established March 31, 2023)
In the Mitsui Fudosan Group’s urban development business, ecosystems are something that must be protected
at all costs. In addition, natural environments that are home to diverse living organisms provide places forenjoyment and relaxation in the city, and as such they also add significant value to urban spaces. However,the Group’s development of real estate and extraction of natural resources for use as building materials inthe supply chain can alter ecosystems and in turn negatively impact biodiversity. As such, we have positioned
our impact on biodiversity as a key management issue, and as part of the Group Environmental Policy weare committed to a broad and comprehensive range of environmental initiatives, including the protection of
biodiversity.
In light of the above, we have established the Mitsui Fudosan Group Biodiversity Policy.
1. Commitment･ In addition to making every effort to avoid any negative impact on biodiversity caused by our businesses or
supply chains, we will strive to keep any unavoidable impact to a minimum.
･ To increase our positive impact on biodiversity, we will engage in initiatives to restore and regeneratebiodiversity and nature, and aim to eliminate any new net negative impacts caused by our business activities (nonet loss).
･ When conducting business in locations that are near important biodiversity areas, we will apply the mitigation
hierarchy by first working to avoid any negative impact, then minimizing any unavoidable impact, before finallyoffsetting any remaining impact through restoration and regeneration activities.
･ We will fully support the "living in harmony with nature" vision of the Kunming-Montreal Global Biodiversity
Framework, a global target to achieve the goals of the UN Convention on Biological Diversity, as well as theglobal Nature Positive goal.
2. Assessment and Monitoring of Risks and Opportunities･ We will assess the impacts and dependencies on nature, including biodiversity, that our businesses andsupply chains have, and also assess and appropriately respond to those risks and opportunities.
･ Further, to accurately manage these risks and opportunities, we will establish indicators and targets asnecessary and monitor the results.

62

3. Stakeholder Engagement and Information Disclosure･ We will work with our suppliers, experts, NGOs, and other external stakeholders as necessary.
･ We will proactively disclose information on our initiatives in line with this policy.
4. Education and Training･ To ensure effective implementation of this policy, we will implement appropriate education and training
to further understanding of the relationship between our businesses and nature/biodiversity among our
executives and employees.

Implementation of Biodiversity Risk Assessments
The Group interacts with ecosystems in various ways due to the wide-ranging nature of its business activities. As such,
we believe it is essential to assess our impact on biodiversity alongside the associated risks.
When carrying out new development projects, we check for the presence of trees, forests, and other elements of thenatural environment on the development site, and protect, transplant, or conserve them as necessary. For development
projects in regions with an abundance of nature, we assess the impact our activities have on plants, animals, andecosystems based on laws, regulations, and ordinances concerning environmental impact assessments and protection of
the natural environment.
In fiscal 2022, we conducted on-site investigations at our Group-owned forests to identify any negative impacts ourbusiness activities have on ecosystems and biodiversity. In addition to creating a Biodiversity Conservation Basic Plan for
the future, we also used the results of the survey to identify relevant risks and opportunities.
Moving forward, we will continue to assess the risks and opportunities related to biodiversity in our business activities,
as well as in resource extraction and other supply chain activities.

Major Initiatives
Member of the Keidanren Committee on Nature Conservation
The Company joined the Keidanren Committee on Nature Conservation. The committee administers a fund that supports
nature preservation activities in developing countries as well as Japan. It also encourages such activities on the part ofenterprises, and engages in a wide range of related activities.

Participation in the 30by30 Alliance for Biodiversity
In April 2022, the Group joined the 30by30 Alliance for Biodiversity, operated by an executive officeof the Ministry of the Environment. This alliance aims to conserve and protect at least 30% of Japan's
terrestrial and marine areas with the goal of halting and restoring biodiversity loss by 2030 (Nature
Positive). We will also protect healthy forests and practice sustainable use of trees in the forests
owned by our group in Hokkaido by creating a "never-ending forest" cycle (planting, cultivating andusing).
With a view to obtaining OECM (Other Effective area-based Conservation Measures) certification, in March 2023 weformulated the biodiversity action plan for our Group-owned forests.

63

Initiatives at Group-owned Forests
The Group owns roughly 5,000 hectares of forest in Hokkaido, and every year cuts down a certain amount of timber to
use in building materials for its real estate business. Around 40% of this total is natural forest and generally this remains
untouched, and as such we believe that here there is minimal impact on the forests’ ecosystems through our businessactivities. However, the remaining 60% is artificial forest, and here we recognize that the varying ages and types of trees,
as well as other factors, are impacting ecosystems and biodiversity.
In line with the above, in March 2023 we formulated a Biodiversity Conservation Basic Plan for our Group-owned forestsand disclosed information on the relationships between our forests and biodiversity as per the LEAP approach of the
TNFD framework.
Overview of the Mitsui Fudosan Group-owned Forests

Locations

The Group owns 70 forests in 31 municipalities in Hokkaido. The majority are at altitudes of lessthan 500 meters and originally deciduous broad-leaved forests or mixed coniferous and broadleaved forests.

Area

The forests cover a total of 4,942.47 hectares. 63% is artificial, and the remaining 36% is natural.

Tree age

While in the natural forests the majority of the trees are over 70 years old, in the artificial forests
the majority are Sakhalin fir that are between 40 to 55 years old.

Usage situation

Every year we cut down timber and thin trees across approx. 100 to 200 hectares of forest. Thistimber is used as building material for the Group’s real estate business and in office furniture.

External certification

All Group-owned forests have received the Sustainable Green Ecosystem Council (SGEC)
certification for sustainable forest management. The SGEC has joined and been endorsed by the
Programme for the Endorsement of Forest Certification (PEFC).
Moreover, our Group-owned forests have also received Forestock certification for theirabsorption of CO2 and biodiversity conservation.

64

Biodiversity Consideration Basic Plan on Mitsui Fudosan Group' Forests
Purpose of this planThis basic plan arranges the issues surrounding biodiversity at our Group-owned forests, setting goals andindicating matters to be addressed in our forest management.
Basic Policy
To ensure we can benefit from the diverse ecosystem services provided by forest ecosystems, we will engage insustainable forest management with an emphasis on the following perspectives.
･ Long-term perspective: We will engage in forest development from a long-term perspective with theknowledge that today’s forest management will create an environmental foundation for the next 50 to 100
years.
･ Integrated perspective: In addition to producing timber, we will move forward with forest development withthe understanding that forest management is essential to ensuring we can benefit from diverse ecosystemservices including carbon sequestration and soil protection.
･ Adaptive management: As nature is a complex system, even if our forest management and biodiversity
conservation does not produce the expected results, we will adapt our forest management methods to get
as close as possible to our goals.
･ Science-based approach: As we proceed with adaptive forest management, we will periodically monitor
forest conditions, and use the data gained to conduct scientific assessments and reflect the results back into
our business activities.
･ Community-based approach: Activities at our Group-owned forests are closely linked to the surrounding
nature and the lives of local citizens. Further, as biodiversity issues are often region-specific, we will engage inbusiness activities while listening to the opinions of regional stakeholders.
VisionTo protect and develop the natural environments in our forests and contribute to the Nature Positive goal while
using them as sites for timber production.
Initiatives to Achieve Vision
The two central pillars to achieving this vision are: (1) Reducing our negative impact on nature; and (2)Increasing our positive impact on nature. We have therefore put together several matters to be addressed foreach pillar.
(1) Reducing our negative impact on nature (avoidance, reduction)･ Avoid cutting down trees in natural forests and forests near mountain streams･ Avoid planting non-native species･ Reduce landscape homogenization (standardization of tree ages)･ Reduce impact from tree-cutting (reduce scale)･ Prevent simplification of forest structure (leave natural trees, withered trees, and tree hollows untouched)･ Reduce ground surface disturbance from forestry operation･ Prevent ruin from lack of management･ Reduce chemical contamination(2) Increasing our positive impact on nature (regenerate, restore)･ Regenerate natural forests･ Improve habitats for plant and animal life
･ Protect endangered species

65Mission･ Even if the types and structures of trees in a small section of artificial forest are limited, broader sections of
natural forest contain a variety of tree types (environments), from those that have just been cut down to mature
stands. We will therefore aim to carefully protect and maintain natural forests.
･ We will aim to create forests that have minimal negative impact on biodiversity, such as by reducing
clearcutting and leaving withering/dead trees and tree hollows untouched.
Promotion Framework
The department in charge of sustainability at Mitsui Fudosan will be responsible for administrative supervision.
Specific activities at each Group-owned forest will be outsourced to local forestry cooperatives by the Group
company in charge of forest management (Minato Estate Co., Ltd.).
The challenges to tackle at each forest will be prioritized based on the forest’s characteristics, and action plansfor biodiversity conservation will be formulated and implemented for each.
Forests where biodiversity conservation requires particular attention will be designated as priority areas.
The status of biodiversity conservation at each forest will be monitored (audited) by experts and experienced
academics.
Details on the timing and method of the above audits will be determined separately.

LEAP approach■ 1. Locate: The Importance of the Geographic Location of Group-owned Forests

The locations of our Group-owned forests are incredibly important in terms of biodiversity for the following reasons, andwe understand that particular care must be taken to ensure that our forestry operations do not have any negative impact
on natural habitats. Of our 70 forests, those where biodiversity conservation requires particular attention due to thefollowing have been designated as priority forests: (1) Ratio of natural forest; (2) Variation in tree age in artificial forests; (3)Position relative to nature reserves and protected forests; and (4) Level of contribution to forestry management.

(1) Position relative to nature reserves
Of our 70 forests, one has a nature reserve on site, while another 14 are within two kilometers of a nature reserve. At
these forests, special attention must be paid to our impact on nearby ecosystems.

(2) Presence of endangered species in each municipality
According to the Hokkaido Red List and other related documents, of the 31 municipalities where our Group-owned
forests are located, there are 13 endangered bird species, one endangered amphibian/reptile species, and 44
endangered plant species that could be impacted by our forestry operations.

66

■ 2. Evaluate: Impact and Dependence on Ecosystems and Biodiversity

The impact that our forestry operations have on ecosystems and biodiversity, as well as their dependence on one
another, are shown in the diagram below. To counter the impact that forestry operations have on ecosystems,
considerations must be made to both reduce negative impact and increase positive impact. Meanwhile, forestry depends
on ecosystems and their services to ensure stable timber production and to boost social reputation, for example.
In July 2022, we conducted on-site investigations at the Rumoi Yudoro, Owada 12, and Obira Kifu forests. At thesesites we conducted biota surveys (to confirm what biota exists as a result of our forestry operations), stakeholder
surveys (interviews with local administrations and forest users), and impact surveys (interviews on what kinds of forestry
operations impact biodiversity).
Impact on ecosystems caused by forestry operations

Dependence

Reference data (FY2021)

Provisioning services･ Timber production (building material, furniture, etc.)･ Wild vegetable and mushroom picking by local residents

Regulating services･ Prevention of invasive, non-native species, reduction of
diseases and pests through diversity･ Prevention of sediment runoff through forest maintenance･ Water source protection functions･ Absorption of CO2, prevention of global warming

Amount of timber produced from Groupowned forests:
13,985m3

Amount of CO2 absorbed at Groupowned forests:
21,315 t-CO2 /year

Notes:･ Wild vegetable and mushroom picking by local residents can also be included in the forest ecosystem’s cultural services.
･ Preventing sediment runoff halts any negative impact on fisheries caused by sediment being discharged into the sea.
･ The figures for the amount of CO2 absorbed at Group-owned forests have been certified by Forestock.

67

■ 3. Assess: Risks and Opportunities Related to Biodiversity

In line with the knowledge we have gained from on-site investigations regarding our forests’ impact on ecosystems andtheir mutual dependence, as well as international movements surrounding biodiversity, we have identified, on a trial
basis, our biodiversity-related risks and opportunities.
Risks and opportunities related to biodiversity
Tree-cutting in forests near ridges could cause sediment
runoff, and in turn lead to the loss of trees and otherwoodland ecosystems
Risks

In artificial forests, if the simplification of tree species andforest layers and the disturbance of forest environments
progress, it could lead to the loss of biodiversity

Market growth for wooden structures, which are said to have
Opportunities

minimal environmental impact throughout their lifecycle
Introduction of financial incentives for nature conservation
areas that have received OECM and other certifications

Resulting economic impacts
The amount of timber production could
fall as a result

The resulting biodiversity imbalances
could cause an increase in certain typesof vermin, diseases, and pests, and in turn
reduce the amount of timber produced

Enhanced ability to respond to changes
in consumer needs, improved competitive
advantage, and higher revenue
Possibility to lower operational costs

Notes:The risks and opportunities above are examples of those anticipated for Group-owned forests.
We will continue to conduct detailed assessments (such as quantitative analyses) of potential risks and opportunities.

■ 4. Prepare: Implementation of Biodiversity Conservation Measures

In February 2022, we conducted surveys of all 25 of the forestry cooperatives to which we outsource forest management,
investigating their implementation of biodiversity conservation measures. When looking at the matters to be addressedas part of our Basic Biodiversity Conservation Plan, a comparatively large number of cooperatives are implementing themeasures they can within small sections of their forest.
On the other hand, due to the comparatively low number of cooperatives implementing wide-area measures andmeasures that require a combination of both efficiency and safety, we will work to make improvements through the Basic
Biodiversity Conservation Plan for Group-owned Forests.
Reduction of landscape homogenization

Improvement of habitats for plant and animal life

(standardization of tree ages)

We will par tially stack and leave the tree tips and

We do not cut trees in neighboring areas in consecutive

branches from our cutting operations.

years, and ensure that forests of dif ferent ages are
positioned in a staggered pattern.

68Preserving and Creating Greenery in Urban Settings
At TOKYO MIDTOWN HIBIYA (Chiyoda-ku, Tokyo), the planted foliage incorporates the same local varieties of trees as
the adjacent Hibiya Park located across the road, to ensure harmony with the park's lush greenery. The Parkview Garden(sixth floor), Sky Garden (ninth floor) and other amenities provide approximately 2,000 m2 of green space (greening rate*
40%).
*Greening rate: Green area is calculated based on the method outlined in the greenery program of the Tokyo Nature Conservation Ordinance.
Greening rate (%) = (Rooftop green area + Ground green area) / (Site area - Building area + Usable rooftop area) x 100

Parkview Garden

Greenery plan for TOKYO MIDTOWN HIBIYASky Garden

Otemachi One Garden is a large -scale, 6,000 m 2 green
space, which controls heat rises on its surface. We estimate
the garden will fix around 11 tonnes of CO2 a year. We haveconsidered the biota of the imperial palace and the region’s
potential vegetation, while also considering biodiversity tocreate a space that combines water and greenery such asbamboo-leaved oak and Japanese maples. We also plan tohold environmental education events throughout the year,
including eco tours based in the green space in Otemachi, inorder to raise awareness of the environment in the OtemachiMarunouchi-Yurakucho (OMY) district.
Otemachi One Garden has been positioned as an elementof the area’s green infrastructure in the Basic Policy for the
Promotion of Green Infrastructure in the Otemachi-MarunouchiYurakucho Distric t fo rmul ate d by the Council fo r Area
Development and Management of Otemachi, Marunouchi, andYurakucho—of which both Mitsui & Co. and Mitsui Fudosan are
members.
■ Basic Policy for the Promotion of Green Infrastructure in
the Otemachi-Marunouchi-Yurakucho District https://www.
tokyo-omy-council.jp/wp/wp-content/uploads/2022/05/omygreeninfra.pdf
69

Preserving and Creating Wildlife Habitats
The neighborhood of Tokyo Midtown (Minato-ku, Tokyo) is a redevelopment of a former Japan Defense Agency (JDA)site in Roppongi. Approximately 140 trees remaining on the former JDA site were preserved and transplanted, andin combination with the adjacent Hinokicho Park (Minato-ku) approximately 40% of the development area (roughly 4hectares) forms a richly green open space, for a green area about 2.7 times that during the JDA era. In Tokyo Midtown,
birds of 6 orders, 18 families and 25 species—including northern goshawks, great egrets, black kites, and bull-headed
shrikes—, which are listed on the Red List of Important Wildlife Species for Protection by the Tokyo Metropolitan
Government, have been confirmed. Moreover, within the premises, a handbook introducing the wild birds discovered in
the survey is available for visitors to look at.

Wild Bird Handbook for Tokyo
Midtown

Japanese Pied Wagtail (lawn)

Green space in Tokyo Midtown (Midtown Garden)

Japanese Pygmy Woodpecker(tree)

Barn Swallow (sky)Wild birds living in Tokyo Midtown

70

Eastern Spot-Billed Duck (water)

Restoring Wildlife Habitats
Among the regions where the Group is engaged in business activities, the resort hotel HAIMURUBUSHI (Yaeyama
District, Okinawa) is in an ordinary zone of Iriomote-Ishigaki National Park, Toba Hotel International (Toba City, Mie) inan ordinary zone of Ise-Shima National Park, and NEMU RESORT and AMANEMU (both in Shima City, Mie) in an ordinary
zone and a special zone respectively in Ise-Shima National Park. In these regions, we are working to create and restore
wildlife habitats lost due to development, and to minimize the impact of business activities on wildlife habitats. Using
these rich natural surroundings, we also strive to provide platforms and opportunities for people to interact with nature.
NEMU RESORT (Shima City, Mie) is in Ise-Shima National Park, which overlooks Ago Bay. Large parts of the tidal wetlands
and seaweed beds in Ago Bay have been lost, and efforts to restore them and in turn revitalize the ocean environment
are moving forward through a joint project by industry, government, academia, and the local community. At NEMURESORT, a project has been underway since fiscal 2012 to convert a roughly two-hectare coastal plot of open land in thepark (abandoned agricultural land) as a tidal wetland, and after restoration we are checking habitation by wildlife suchas flathead grey mullet, Japanese black seabream, and Japanese intertidal crab.
At AMANEMU (Shima City, Mie), an on-site vegetation survey was carried out prior to the facility’s development basedon the REFOREST development concept (reclaiming nature on land damaged in the past by repeated development anddeforestation). Based on the results, we selected the principal trees of existing forests on the site, and carried out priority
planting starting from locations artificially developed with no trees, such as lawns. In this way, we worked to restore theforest in harmony with the natural environment of the region.
The resort hotel, Halekulani Okinawa (Kunigami District, Okinawa), meanwhile, has cooperated and teamed up with
Onna Village-which has announced its Village of Coral Declaration and been selected as an SDGs Future City-the Onna
Village Fisheries Cooperative, and the Tropical Biosphere Research Center at the University of the Ryukyus to launch theCoral Nurturing Program. Recently, climate change, pest damage, and other factors have caused coral in waters aroundthe hotel to die, and so the program’s goal is to restore the area by planting new coral in these areas. It is an activity thatguests at the hotel can participate in.

Provision of Venues and Opportunities for Activities in Touch with Nature
At the resort hotel NEMU RESORT (Shima City, Mie), we offer programs to experience nature such as Bird Watching
Strolls and Satoyama Nature Tours, led by dedicated nature specialists and guides. We also offer programs to experiencenature at HAIMURUBUSHI (Yaeyama District, Okinawa) such as Nighttime Park Tours, scuba diving, and snorkeling.

71

River and Waterside Regeneration
In Nihonbashi, which the Mitsui Fudosan Group has positioned as an important redevelopment area, we are planningfive redevelopment projects with a total area of 6.7 hectares (approx. 20,000 tsubo) and total floor space of approx.
370,000 tsubo along the Nihonbashi River. River and waterside regeneration is one of the priority initiatives of this plan.
We will create a water area and pedestrian network as well as contribute to viable biodiversity.

Certification System for Biodiversity
Harumi 5-chome West District Type 1 Urban Redevelopment Project (HARUMI FLAG, one of the largest comprehensive
development projects in Tokyo) has acquired four environmental certifications including ABINC, a certification related tobiodiversity.
⇒ https://www.mitsuifudosan.co.jp/corporate/news/2018/1129/download/sumami/20181129.pdf(Japanese version only)
About the ABINC certification
The ABINC certification system aims to promote coexistence between nature and people in corporate activities. Basedon guidelines created by Japan Business Initiative for Biodiversity, ABINC (Association for Business Innovation in harmony
with Nature and Community) evaluates and certifies corporate initiatives to preserve biodiversity, such as the creation,
management, and use of green spaces.
⇒ https://www3.abinc.or.jp/ (Japanese version only)⇒ http://jbib.org/english/

72

Environmentally Friendly Procurement
PolicyAs a corporate group supporting office buildings, housing, and other infrastructure necessary for daily life, the Group
recognizes its social responsibility to reduce its environmental impact and conserve the environment to an evenhigher standard. To accomplish this, we believe efforts should be made throughout the entire supply chain to promote
environmentally friendly, sustainable procurement. We have formulated Sustainable Procurement Standards summarizing
basic guidelines in this area. We disclosed these standards and have shared them with our main business partners toestablish a system that supports environmentally friendly procurement.
Our Sustainable Procurement Standards specify environmental guidelines, as well as basic guidelines on nine itemsincluding compliance with laws and regulations and respect for human rights relating to labor-as standards to becomplied with or actively promoted by both the Group and its suppliers. These also take into account the areas in which
we request cooperation to implement the Sustainable Procurement Standards. The idea is to share these standards
within the Group, build and operate an ordering and contract process in line with the nature of its business, and also
notify and request the understanding of its business partners. To realize a sustainable society, we will work to promote
environmentally friendly sustainable procurement throughout our supply chain.

Procurement Standards for Environmental Awareness(Excerpt from the Mitsui Fudosan Group's Sustainable Procurement Standards)

7. Consideration for the Environment
Companies shall proactively address global environmental issues such as resource depletion, climate change,and environmental pollution, while also considering local environmental issues to ensure the health andsafety of the people in the communities involved.
7.1 Addressing climate change
Companies shall work continuously to reduce their energy consumption and greenhouse gas emissions by
striving to improve energy efficiency and introduce renewable energy.
7.2 Efficient use of resources and waste management and reduction
Companies shall comply with laws and regulations and engage in appropriate waste management. They shallalso pursue reduction, reuse, and recycling in order to ensure resources are efficiently used and minimize thegeneration of waste.
7.3 Prevention of pollution and management of chemical substances
Companies shall comply with relevant laws and regulations and implement appropriate measures to reduce therelease of hazardous substances into the air, water, soil, etc.
In addition, companies shall manage hazardous chemical substances in order to ensure that they are identified,labeled, handled safely, transported, stored, used, recycled or reused, and disposed of in compliance with laws
and regulations.
7.4 Reduction of water usage
Companies shall comply with laws and regulations, monitor the sources, uses, and discharge of the water used,and conserve water.

73

7.5 Conservation of biodiversity
In order to conserve the natural environment and ecosystems where diverse organisms live, companies shall work to
reduce negative impacts of their business activities on them.
7.6 Provision of environmentally-friendly products and services
Companies shall be proactive in providing environmentally-friendly products and services. They shall also comply
with all laws and regulations and customer requirements regarding chemical substances contained in products.

For details on the Group’s Sustainable Procurement Standards, see Policy under Supply Chain Management.
⇒ For details on the Supply Chain Management
https://www.mitsuifudosan.co.jp/esg_csr/society/04.html

74Sustainable Finance
PolicyAs the international movement on environmental and social issues accelerates, further substantial efforts are required toachieve a decarbonized society. Sustainable finance to support the realization of such a society is becoming increasingly
important. By proactively engaging in sustainable finance, we intend to raise more awareness of the Group's policy
among a wide range of stakeholders and promote the diversification of financing and the realization of a decarbonizedsociety.

Establishment of Framework
Sustainability Linked Loan Framework
Features of the Framework
The Sustainability Linked Loan (SLL) Framework is a comprehensive SLL framework that uniformly defines SLL requirements
such as sustainability performance targets (SPTs), applicable interest rates, and reporting. This will allow us to universally
apply the framework to each financial institution's standard loan agreements in individual transactions, making it easierfor both us and financial institutions to engage in SLL.
We compiled our SLL Framework, with the assistance of Sumitomo Mitsui Banking Corporation, our sustainability
coordinator, in line with the Sustainability Linked Loan Principles (May 2021 edition)-jointly published by international
financial organizations the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA) and Asia
Pacific Loan Market Association (APLMA)-and Japan's Ministry of the Environment's Green Loan and Sustainability Linked
Loan Guidelines (2020 edition). To verify conformity with these, we acquired a second opinion from a third-party body,
Rating and Investment Information, Inc. (R&I).

Second Opinion (Japanese only)⇒ https://www.r-i.co.jp/news_release_suf/2022/01/news_release_suf_20220114_jpn_01.pdf

Green Finance Framework
Features of the Framework
We have formulated the Green Finance Framework as we look to issue green bonds and execute green loan flexibly.
The framework has set both domestic and global environmental certifications as eligibility criteria, allowing forinvestment in both domestic and global projects.
We have established our Green Finance Framework in line with the Green Bond Principles 2021 administered by the
ICMA (International Capital Market Association) Green Bond Guidelines 2020 established by Japan's Ministry of theEnvironment, four core components of the Green Loan Principles 2021 jointly administered by LMA (Loan Markets
Association) and APLMA (Asia Pacific Loan Market Association) and the Green Loan and Sustainability Linked Loan
Guidelines 2020 established by Japan's Ministry of the Environment. We obtained a second-party opinion (SPO) from
Sustainalytics as an external reviewer.

Green Finance Framework⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2021/greenbond_jpn.pdf

Second-party opinion⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/greenbond_spo_jpn.pdf
75Sustainability Linked Loans
In the Sustainability Linked Loan Framework, we have set ourselves, as SPTs, the target of reducing greenhousegas emissions (in Scopes 1 and 2) for the entire Group by 46.2% compared to FY2019 levels by FY2030, which weannounced in the Group Action Plan to Realize a Decarbonized Society we formulated in November 2021.

To see our Group Action Plan to Realize a Decarbonized Society, please click the link below.
⇒ https://www.mitsuifudosan.co.jp/esg_csr/carbon_neutral/
FY2022 Achievements

Total number of loans

Total loan amount7¥69.5 billion

FY2021 Achievements

Total number of loans

Total loan amount12¥69 billion

Green Finance
We proactively engage in green loan and green bond by utilizing green projects that meet the eligibility criteria set
forth in the Green Finance Framework.

Allocation Report
FY2023
Green Bond

Name of project
Yaesu Central Tower,

Amount financed

Amount allocatedAmount unallocated¥26.5 billion¥26.5 billion¥- billion

Otemachi One Tower¥60.2 billion¥60.2 billion¥- billion

Nihonbashi Muromachi Mitsui Tower¥43.3 billion¥43.3 billion¥- billion

Tokyo Midtown Yaesu

76

FY2022
Green Loan

Name of project

Amount financed

Yaesu Central Tower,

Amount unallocated¥48 billion¥48 billion¥- billion¥92.5 billion¥92.5 billion¥- billion

Tokyo Midtown Yaesu
Tokyo Midtown Hibiya

Amount allocatedGreen Bond

Name of project

Amount financed

Yaesu Central Tower,

Amount allocated¥80 billion

Tokyo Midtown Yaesu

Amount unallocated¥80 billion¥- billion

Until FY2021
Green Bond

Procurement fiscal year

Name of project2021

50 Hudson Yards

2019

Amount financed

Amount allocatedAmount unallocated$300 million$300 million$- million¥50 billion¥50 billion¥- billion

Nihonbashi Muromachi
Mitsui Tower

Allocation Review
We obtained an Allocation Review from Sustainalytics, an external reviewer, on our compliance with the eligibility
criteria set forth in the framework for each use of funds and on the status of proceeds’ appropriation.
FY2022⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/greenbond2022_greenloans2022_annualreview2022_
jpn.pdf
FY2021⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/greenbond2022_annualreview2022_50hudsonyards_
jpn.pdf
FY2019⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/greenbond2019_annualreview2022_nihonbashi_jpn.
pdf
For more information on management assertion, please see the link below.
FY2023 (Yaesu Central Tower, Tokyo Midtown Yaesu; Otemachi One Tower; Nihonbashi Muromachi Mitsui Tower)⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2023/assertion_on_allocation_of_proceeds_yaesu_jpn.pdf
FY2022 (Yaesu Central Tower, Tokyo Midtown Yaesu)⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/assertion_on_allocation_of_proceeds_yaesu_jpn.pdf
FY2021 (50 Hudson Yards)⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2021/assertion_on_allocation_of_proceeds_jpn.pdf

77Impact Report
FY2022 achievements
Category

Greenhouse

Amount ofgas emissions

water used

AmountProperty nameof energy
consumption

Tokyo Midtown Yaesu
Yaesu Central Tower
Otemachi One Tower
Office buildings

28,364t-CO2

Certification acquisition

214,015m

375,893kWh

Nihonbashi Muromachi Mitsui
Tower
Tokyo Midtown Hibiya
50 Hudson Yards

Introduction to Green Projects
Yaesu Central Tower, Tokyo Midtown Yaesu＜ Property ＞
Location
Yaesu 2-Chome, Chuo-ku, Tokyo
Date of Completion
August 2022
Environmental Initiatives
・ DBJ Green Building Certification (5-star), CASBEE Smart Wellness Office
Certification (S rank) and ZEB Ready certification (office-use area only).
・ Green Power Supply Service introduced. Contributes to solving tenantcompanies’ decarbonization challenges.
・ Established Yaesu Energy Center. Contributes to reductions in energy usage andCO2 emissions through local production for local consumption.
A profile of Yaesu Central Tower, Tokyo Midtown Yaesu is available at:⇒ https://www.mitsuifudosan.co.jp/corporate/news/2022/0915_01/#outline

78

DBJ Green Building Certification (5-star)

DBJ Green Building Certification (5-star)
DBJ Green Building Certification (5-star)
DBJ Green Building Certification (5-star)
LEED GOLD certification

50 Hudson Yards＜ Property ＞
Location
50 Hudson Yards, New York, NY
Date of Completion
June 2022
Environmental Initiatives
・Acquired LEED GOLD certification.
A profile of 50 Hudson Yards is available at:⇒ https://www.mitsuifudosan.co.jp/corporate/news/2022/1020/#outline

Otemachi One Tower＜ Property ＞
Location
2-1, Otemachi 1-Chome, Chiyoda-ku, Tokyo
Date of Completion
February 2020
Environmental Initiatives
・ DBJ Green Building Certification (5-star).
・ In the Otemachi One area, the Otemachi One Garden, a green space ofapproximately 6,000 m2, one of the largest in the area, has been developed.
Contributes to the creation of cool spots and ecosystem conservation.
A profile of Otemachi One Tower is available at:⇒ https://www.mitsuifudosan.co.jp/corporate/news/2020/0305/#outline

79

Nihonbashi Muromachi Mitsui Tower＜ Property ＞
Location
3-2-1 Nihonbashi Muromachi, Chuo-ku, Tokyo
Date of Completion
March 2019
Environmental Initiatives
・ DBJ Green Building Certification (5-star), CASBEE Smart Wellness Office
Certification (S rank).
・ Green Power Supply Service introduced. Contributes to solving tenantcompanies’ decarbonization challenges.
・ Established Nihonbashi Energy Center. Contributes to reductions in energy
usage and CO2 emissions through local production for local consumption.
A profile of Nihonbashi Muromachi Mitsui Tower is available at:⇒ https://www.mitsuifudosan.co.jp/corporate/news/2019/0328/#outline

Tokyo Midtown Hibiya＜ Property ＞
Location
Yurakucho 1-Chome, Chiyoda-ku, Tokyo
Date of Completion
February 2018
Environmental Initiatives
・DBJ Green Building Certification (5-star).
・Approximately 40% of the area is covered with a green space, such as Hibiya
Step Plaza and Park View Garden.
A profile of Tokyo Midtown Hibiya is available at:⇒ https://www.mitsuifudosan.co.jp/corporate/news/2021/0511_02/#outline

80

Positive Impact Finance
FY2022 Achievements

Total number of loans

Total loan amount1¥19 billion

On December 21, 2022, we concluded an agreement with Sumitomo Mitsui Trust Bank, Limited, under which the bankprovides us with positive impact finance (in the form of funding for companies that is not restricted to certain uses) tothe amount of ¥19 billion.
Positive impact finance is a type of funding that aims to continuously support corporate activities that have an impact(positive or negative) on the environment, society, or the economy, as comprehensively analyzed and evaluated by theproviding financial institution, in line with the Principles for Positive Impact Finance*1 published by the UN Environment
Programme Finance Initiative (UNEP FI).*2 The biggest characteristics of this sort of finance is that the evaluation
criterion that financial institutions use is the level of contribution that a company makes to the achievement of the UN's
Sustainable Development Goals (SDGs) through its corporate activities and products or services, and that the financial
institution monitors these based on disclosed information, and engages with the company to support its activities.
This evaluation receives third-party feedback from the Japan Credit Rating Agency, Ltd. on the conformance ofevaluation procedures with the Principles for Positive Impact Finance and the conformance of evaluation indicators thatare applied.
*1 United Nations Environment Programme Finance Initiative:
The United Nations Environment Programme (UNEP) is a supplementary body to the UN, and was established in 1972 to implement the
Declaration of the United Nations Conference on the Human Environment and the Action Plan for the Human Environment. UNEP FI is a broad,close-knit partnership between UNEP and more than 200 financial institutions from around the world that was set up in 1992. Since that time,
UNEP FI has worked with financial institutions and policy and regulatory bodies, to promote a shift to a coordinated financial system thatconsiders economic development and ESG (environmental, social, and corporate governance) themes.

*2 Principles for Positive Impact Finance:
These principles were established by UNEP FI in January 2017 as a finance framework to help achieve the SDGs. Participating banks evaluate thepositive impact that a company makes toward the achievement of the SDGs-as disclosed via KPIs-and provide them with funding. In this way, theframework encourages recipient companies to maximize their positive impact and minimize their negative.
The banks that carry out this funding, as responsible financial institutions, monitor indicators to verify that the recipients are continuing to make apositive impact.

81

ThemeContent

Goals and indicators (KPIs)(a) Promotion of the Group Action Plan to Realize a DecarbonizedSocietyGoals(i) Reduce the Group's overall greenhouse gas emissions (Scopes
1-3) by 40% by FY2030 (compared to FY2019) and achieve net
zero by FY2050(ii) Reduce the Group's overall greenhouse gas emissions (Scopes
1 & 2) by 46.2% by FY2030 (compared to FY2019)(iii) Achieve ZEB/ZEH*-standard environmental performance for
all new buildings*Buildings that meet the BEI standard (a standard with higher
environmental performance than ZEB/ZEH Oriented), excluding
some buildings.
(iv) Switch all electricity used in common areas at our owned andoperated properties by FY2030 to green energy**Energy that virtually entirely comes from renewable sources,using non-fossil-fuel energy certificates(v) Generate a total output of 380 GWh/year from mega-solar by
FY2030(vi) Encourage reduced CO2 emissions produced during
construction･ Contribute to achieving adecarbonized society by
reducing energy usage andReduceenvironmental

greenhouse gas emissions･ Transition to renewable

impact andenergy for electricity usedgenerate energy

in business operations･ Build rich naturalenvironments that getbetter with time

Indicators (KPIs)(i) The Group's overall greenhouse gas emissions (Scopes 1-3)(ii) The Group's overall greenhouse gas emissions (Scopes 1 & 2)(iii) Spread of ZEB/ZEH-standard environmental performance
among new buildings(iv) Proportion of green energy used in common areas at ourowned and operated properties(v) Total output from mega-solar(vi) Status of efforts to accurately grasp CO2 emissions produced
during construction(b) Reduction of the amount of water used
Goals
Reduce water intake per base unit to less than the previous fiscal
year
Indicators (KPIs)
Water intake per base unit(c) Reduce waste emissions
Goals
Reduce general and industrial waste emissions per base unit toless than the previous fiscal year
Indicators (KPIs)
General and industrial waste emissions per base unit(d) Conserve biodiverse environments
Goals
Formulate a biodiversity action plan (during FY2022) with a viewto acquiring OECM certification for forests owned by the Mitsui
Fudosan Group
Indicators (KPIs)
Status of the biodiversity action plan

82

SDGs

ThemeContent

Goals and indicators (KPIs)

SDGs･ Leverage technologies
Establish ultrasmart societies
by creatingneighborhoods

to solve individuals' andneighborhoods' problemsby building communities
and places for people togather and support one

Goals
Promote smart cities
Indicators (KPIs)
Creation of new services that help to promote smart cities

another(a) Provide assets and soft services that meet the needs ofdiverse working styles
Goals(i) Contribute to diverse working styles for office tenants･ Provide healthy, highly
productive workplaces
Achieve health,･ Develop and operate

safety and security

resilient, safe, and securein people's daily

facilities that protect

lives

people from threats suchas disasters and infectious
diseases(ii) Increase Health Management Support Service "&well"membership to 150,000 by FY2025
Indicators (KPIs)(i) Status of promotion efforts for initiatives contributing toincreasing office productivity(ii) Membership of Health Management Support Service "&well"(b) Spread of disaster preparedness that is coordinated with
regional communities
Goals
Contribute to urban disaster preparedness
Indicators (KPIs)
Introduction status for smart energy projects(a) Promote diversity and inclusion
Goals(i) Increase women in management positions ratio to 10% by
FY2025 and 20% by FY2030(ii) Increase ratio of female hires to 40% by FY2030(iii) Ensure a return rate from childcare leave of 100% every year(iv) Ensure number of paid leave days taken (per year) is 14 or
more(for Mitsui Fudosan Co., Ltd. (non-consolidated))

Achieve a society
where a diverse
workforce canthrive･ Establish a foundation foreveryone to live the life
they choose

Indicators (KPIs)(i) Women in management positions ratio(ii) Ratio of female hires(iii) Return rate from childcare leave(iv) Number of paid leave days taken (per year)(b) Respect human rights
Goals
Strengthen supply chain management
Indicators (KPIs)(i) No. of industries and companies subject to supplierquestionnaires or supplier surveys (workplace inspections)(ii) Response to necessary areas for improvement identified in thequestionnaires/surveys in (i) above

Third-party conformance evaluations, etc.
Note: https://www.jcr.co.jp/download/7dab648a6f7fdccc23eb667666313cd961ec616dc6c3179b9d/22d1153.pdf

83

News Release of Sustainable FinanceMay 31st, 2023
Biggest Green Bond Issue in Industry History: ¥130 billion
Sustainable Financing Totals Approximately ¥600 billion⇒ https://www.mitsuifudosan.co.jp/english/corporate/news/2023/0531/download/20230531.pdf

July 8th, 2022
Mitsui Fudosan Issues ¥80 Billion in Biggest Green Bond Deal in Japan's Real Estate Industry
The Net Proceeds will be Allocated to Invest in Tokyo Midtown Yaesu, Promoting Sustainable Finance towards
Decarbonized Society⇒ https://www.mitsuifudosan.co.jp/corporate/news/2022/0708_01/download/20220708_01.pdf

January 14th, 2022
- The Promotion of Sustainable Finance Mitsui Fudosan establishes Green Bond Framework and Sustainability-Linked Loan Framework⇒ https://www.mitsuifudosan.co.jp/corporate/news/2022/0114/download/20220114.pdf

September 6th, 2019
- A Measure to Accelerate the Mitsui Fudosan Group's Promotion of ESG Management Conditions Determined for Mitsui Fudosan's Green Bond⇒ https://www.mitsuifudosan.co.jp/corporate/news/2019/0906/

84Society
Refer to the ESG data at the end of this report for the following socialrelated data.

Health and Safety● Health Checkup and Screening Rate
● No. of Employees Attending Seminars on Health and Safety Standards● Lost Time Incidents● Number of Work-related Employee Fatalities● Number of office buildings with OHSAS 18001 or ISO 45001
certification

Labor Standards and Practices● Group Employment Situation (Number of Employees by Business
Segment)● Employee Composition (As of April 1 of each fiscal year)● Employee Composition by Age (As of April 1 of each fiscal year)● Trends in Number and Percentage of Male and Female Regular
Employees (As of April 1 of each fiscal year)● Average Annual Salary Paid by the Company (As of April 1 of eachfiscal year)● FY2022 Mitsui Fudosan Group Diversity Indicators● Trends in New and Departing of Regular Employees● Employee Engagement

Diversity & Inclusion● Quantitative Goals and achievement status● Female Participation Model Companies in the Mitsui Fudosan Group● Number of Employees Taking Childcare Leave, Etc.
● Return Rate of Employees Taking Childcare Leave● Employees Taking Family Care Leave● Return Rate of Employees Taking Family Care Leave● Percentage of Employees with Disabilities

Human Resources Management● Time Spent Developing Employee Abilities● Environmental Education Activities● Cumulative Total of Employees Who Have Taken and Passed the Eco
Test

Human Rights● Number of Cases of Humans Rights Risk Handled by the Risk
Management Special Committee

Community● Record of Social Contribution Activities

85

Health and Safety

PolicyThe Company regards the health and safety of its employees as an important management issue that is essential fordiverse members of the workforce to realize their full potential, to continue to improve the Company's competitivenessand to achieve sustained growth. We are working actively to maintain and promote employee health while striving
to establish a workplace environment where employees can work energetically in accordance with their respective
lifestyles.
To assist us as we strive to consider the safety and health of stakeholders and everyone else connected to our business,
we have been striving to improve working environments and health and safety awareness.

Health and Productivity Management Declaration
1. Our progressive spirit and attitude of flexibly tackling tough challenges forms the basis for our approach of
supporting individual employees’ efforts to create new value from the sidelines via health and productivity
management, and we will tie that in to the Company's sustainable growth.
2. We will actively invest in our employees’ physical and mental well-being, and promote the creation of
workplaces where diverse personnel are excited to work.
3. Through urban development, we will work to maintain and promote health in the region and in wider society.
Equally, we will use health and productivity to resolve the issues that society is facing, to contribute to ahealthier, richer future.

Procurement Standards to Ensure the Health and Safety of Employees and Outside Suppliers(excerpt from the Group’s Sustainable Procurement Standards)

3. Respect for Human Rights Related to Labor
Companies shall respect the human rights of workers, in line with international human rights standards,
including the core labor standards established by the International Labour Organization (ILO), while also
complying with relevant laws and regulations.
3.1 Freedom of association and right to collective bargaining
In compliance with local laws and regulations, companies shall respect the rights of employees to organize andbargain collectively as a means of participating in labor-management negotiations on working environment andwage conditions.
3.2 Prohibition of forced labor
Companies shall not use forced labor obtained through coercion, bondage, inhumane prison labor, slavery,
human trafficking, or other such means. In addition, companies shall not force employees to work against theirwill and shall protect the right of employees to leave or terminate their employment of their own accord.
3.3 Prohibition of child labor and consideration for young workers
Companies shall not allow children under the minimum working age to work. In addition, companies shall notallow young workers under the age of 18 to engage in hazardous work that may jeopardize their health andsafety, such as night shifts and overtime work.

863.4 Prohibition of discrimination in employment
Companies shall not engage in any form of unfair discrimination, including unfair discriminatory treatments
based on grounds such as race, nationality, ethnicity, skin color, age, gender, sexual orientation, gender
identity, religion, beliefs, disability, marital status, pregnancy, political affiliation, or union membership, in any
employment practice, including wages, promotion, compensation, and retirement.
3.5 Prohibition of abuse and harassment
Companies shall respect the human rights of workers and shall not subject workers to inhumane treatment,
including psychological or physical abuse, coercion, harassment, or any other potentially inhumane acts.
3.6 Adequate wages and allowances
Companies shall comply with all applicable laws and regulations regarding compensation paid to employees(including minimum wages, overtime pay, and legally mandated allowances and deductions) and social security.
Furthermore, companies shall strive to pay wages at a level that allows workers to support their basic needs (aliving wage).
3.7 Appropriate working hours, holidays, and leave
Companies shall not allow workers to work in excess of the maximum working hours set by local laws
and regulations, shall appropriately manage working hours and days off in consideration of internationallyrecognized standards, and shall grant annual paid leave in compliance with local laws and regulations.
4. Safe and Healthy Working Environment
In addition to complying with the relevant laws and regulations, companies shall also pay due attention todomestic and international guidelines on worker safety and health, and make efforts to provide a safe andhealthy working environment that minimizes work-related injuries and physical and mental illness.
4.1 Management of employee healthCompanies shall provide appropriate health management for all employees.
4.2 Occupational health and safety
Companies shall identify and assess risks to occupational safety and ensure safety through appropriate design,
engineering and administrative controls.
Companies shall also identify and assess the risk of worker exposure to biological, chemical, and physicalhazards in the workplace, and implement appropriate management.
4.3 Consideration for physically demanding work
Companies shall identify and evaluate physically demanding work and implement appropriate management toprevent occupational accidents and illnesses.
4.4 Safety measures for machinery and equipment
Companies shall evaluate the machinery and equipment used by workers in their work for safety risks andimplement appropriate safeguarding measures.
4.5 Healthy, safe facilities
Companies shall ensure that the facilities provided for workers' lives (dormitories, cafeterias, toilets, rest areas,etc.) support adequate health and safety.
In addition, dormitories shall have appropriate emergency exits for emergencies.

874.6 Response in the event of occupational accidents or diseases
Companies shall record and report occupational accidents and diseases, and take appropriate measures andcorrective actions.
4.7 Promotion of communication
Companies shall provide education and training on the appropriate health and safety information for thevarious occupational hazards that workers may be exposed to on the job, in the workers' native language or ina language and manners that workers can understand.
In addition, companies shall operate a system for workers to provide feedback on safety-related issues.
For details on the Group's Sustainable Procurement Standards, see Policy under Supply Chain Management.
⇒ To the "Supply Chain Management" pagehttps://www.mitsuifudosan.co.jp/esg_csr/society/04.html

Management System
The Company is making progress with efforts relating to employee health and safety, which are overseen by the Director
in Charge of Personnel.
We regularly report to management regarding employee health issues or matters such as working hours, create
proposals for how to make improvements and, through discussions with health insurance associations, we check andanalyze employees’ health issues and periodically hold consultations concerning improvement measures.
We have established a specialized organization responsible for maintaining and promoting employee health: the HealthManagement Center. We are also working to achieve goals such as improving the rate at which employees undergo
periodic health or stress checkups. Our other efforts include annual interviews between Personnel Department staff andall employees, and the setting up of a Health Consultation Service where employees can discuss health issues freely. In
partnership with the Personnel Department, industrial physicians, public health nurses, and licensed psychologists, weare striving to improve the working environment and the physical and mental health of employees.
In meetings with our labor unions, we exchange and coordinate views based on a shared understanding that employee
health and safety are important issues.

Board of Director Oversight
The Company has set health checkup, screening rate, and other goals to help maintain employee health, and we are
steadily expanding efforts to improve results.

Goals and Progress
The Company has set health checkup, screening rate, and other goals to help maintain employee health, and we are
steadily expanding efforts to improve results.

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Major Initiatives
Based on our Procurement Standards to Ensure the Health and Safety of Employees and Outside Suppliers (the Group’s
Sustainable Procurement Standards), we are always working to improve working environments to ensure that both our
employees and outside suppliers can work in safe environments conducive to good health.
Specifically, Group employees regularly patrol the frontlines of new-build projects across the country to perform due
diligence on and monitor health and safety. By anticipating any dangers and offering appropriate guidance and corrective
action, we are helping to prevent workplace accidents and make safe workplaces a reality.
Any important issues picked up through these patrols are shared with Group employees and outside suppliers at inhouse Safety Conference. Further, any work-related accidents involving our employees or outside suppliers are recorded
as quantitative indicators. In the event of a work-related accident or a highly dangerous incident, we thoroughly
investigate the cause, communicate the relevant information and offer guidance to prevent recurrence, and strive toensure even higher levels of safety.

Stress Check
Through stress check tests by MS&AD InterRisk Research & Consulting, Inc., an outside specialist organization, theCompany periodically monitors the mental health of employees, linking these results with efforts to realize improvements.
In addition to carrying out yearly health checkups, we also offer thorough health screening for all employees over 35 andtheir spouses, gynecological exams for female employees and the spouses of male employees, and leave to undergo
thorough health screening.
We are also working to ascertain employees’ working situation, and physical and mental health status, through annual
personal interviews between Personnel Department staff and all employees, as well as through stress checks, interviews
with an industrial physician for overworked employees, and other programs.
To help employees recover from fatigue and maintain physical/psychological balance, we have established Refre, afacility where a massage specialist is always on duty and they can refresh themselves with a massage or a nap.

Refreshment Room

Refre reception desk

89

Health and Productivity Stock/Excellent Enterprise of Health and Productivity
Management
In recognition of our efforts to maintain and promote the health of our employees, we were selected for inclusion as a2023 Health and Productivity Stock—under a program run jointly by METI and the TSE—as a company with outstanding
health and productivity management. The program selects enterprises deemed exceptional in terms of health andproductivity management from among the listed companies on the TSE, with one enterprise generally selected perindustry.
We were also chosen for inclusion in the 2023 Certified Health & Productivity Management Outstanding Organizations
Recognition Program (as a White 500 enterprise in the large enterprise category), which is jointly organized by METI and
Nippon Kenko Kaigi, for the seventh year in a row.

Seminars on Health and Safety Standards
The Company provides training every year on health and safety for new employees and newly appointed executive
managers.
For details on the number of attending employees, see Social-related Data on the ESG Data page.
⇒ https://www.mitsuifudosan.co.jp/esg_csr/esg_data/society/Response to Infectious Diseases and Other Global Health Issues
The COVID-19 pandemic has had a major effect on the lives of people around the world. There are also other infectious
diseases that are currently global health problems, among them HIV/AIDS, tuberculosis, and malaria. Considering issues
such as these, for workers who will be posted overseas, we provide guidance on inoculation and help them come backto Japan to have comprehensive medical check-ups. To ensure that living environments are sufficiently sanitary, we areoffering workers and their families a great deal of support.

90

Labor Standards and Practices

PolicyIn addition to respecting the fundamental human rights of its workers, the Group complies with the laws and regulations
concerning workers’ human rights in each country and region where it conducts business.
1. Policy Prohibiting Discrimination
We will eliminate all discrimination on the grounds of race, nationality, religion, gender, age, disability, or sexual
orientation.
2. Policy Prohibiting Harassment
We will not tolerate any form of harassment, including sexual harassment or abuse of power.
3. Policy to Prevent Child Labor or Forced Labor
We will not permit child labor or forced labor. In our group business, child labor or forced labor has not occurred. To
ensure that child labor and forced labor will not occur in the future, we ensure that each business location complies
thoroughly with the laws and regulations of its host country and conduct regular monitoring. In case that such a violation
is suspected, we have also established an internal consultation service that employees can report to.
4. Policy to Support Freedom of Association and the Right to Collective Bargaining
We respect freedom of association and the right to collective bargaining.
5. Policy Supporting Rights to a Minimum Wage and Living Expenses
The Group conducts labor management while abiding by the labor laws and regulations of each country. In terms ofwages, we have adopted a basic policy of not only following rules on minimum wages in each country, but also paying
wages that exceed those requirements.
6. Principles and Procedures for Community Investment
The Group carries out business activities that do not infringe on human rights, either inside or outside Japan, by
ensuring respect for the human rights of all stakeholders, including local residents and children. Through neighborhood
creation, we are striving to form communities and create opportunities for interaction between diverse human resources,
ultimately leading to new markets and employment. In this way, we offer various forms of value to the communities
where we conduct business. By participating in and providing funding to area management organizations, we have beenworking to improve the value of real estate by engaging with local communities and investing in them.
We also fully support and respect the fundamental rights of workers as per the ILO Declaration on Fundamental
Principles and Rights at Work. The ILO Declaration describes the following fundamental principles and rights at work:･ Freedom of association and the effective recognition of the right to collective bargaining･ Elimination of all forms of forced or compulsory labor･ Effective abolition of child labor･ Elimination of discrimination in respect of employment and occupation
Further, we pursue methods to ensure that fundamental human rights are respected in countries and regions whereinternationally recognized fundamental human rights are not provided. We have also translated our basic labor
management policies into English and distributed them to employees and local staff working at our overseas sites.

91

The Group has established the Mitsui Fudosan Group Human Rights Policy as detailed below and has been promoting
human rights-related initiatives. In addition to this policy being publicly disclosed in our ESG Report, it can also be foundvia our internal portal. As well as raising awareness of the policy within the Group through training and other measures,
we have established our Sustainable Procurement Standards based on this policy. We are also promoting human rights
due diligence for the supply chain in accordance with the UN Guiding Principles on Business and Human Rights.

Internships and Employment of People with Disabilities
The Company puts on career events and provides internships for students as an opportunity to improve the quality of
their career options. We make a public appeal to undergraduate and graduate students, and accept more than 400
students annually.
First Facilities Challenged Co., Ltd. is a special subsidiary of Mitsui Fudosan Facilities Co., Ltd., established in 2006
based on the Act on Employment Promotion etc. of Persons with Disabilities. The Company promotes employmentof persons with disabilities and provides them with work experience opportunities. In addition, the Company aims toraise the employment rate of people with disabilities to 2.3% or higher, and has established a Challenged Center in its
Personnel Department, composed of employees with intellectual disabilities as well as full-time advisors, that promotes
employment for people with disabilities.

Expanding Employment for People with Mental Disabilities and Supporting Career
Advancement
In February 2023, alongside Hakuhodo, we established SUPERYARD Co., Ltd. to expand employment for people withmental disabilities at companies and to support their career advancement after they have been employed. SUPERYARD
will provide shared offices equipped with environments showing reasonable considerations for people with mental
disabilities and utilize Mitsui Fudosan’s knowledge of working styles and offices to accommodate sensory sensitivities
and more. Then, using methods developed together with industrial physicians and specialists, SUPERYARD identifies
duties that people with disabilities can perform. In addition, using the know-how cultivated in Hakuhodo’s advertisingbusiness to pick out best aspects and inform people about them, it will provide a service that eliminates the concerns
employing companies have by asking each person with a disability to perform duties that match their unique attributes.

Our Efforts Relating to Equality of Opportunity to Work and to Harassment
The Company has established a Code of Employee Conduct with regard to human rights, and we fulfill our social
responsibility regarding human rights problems actively and voluntarily. As an organization for promoting correctunderstanding and recognition of human rights problems among all employees, we have established the Fair
Employment Screening and Human Rights Awareness Raising Committee. The primary role of the committee is educationand guidance, formulating and implementing training plans, investigative research, and supervision, communication, andcoordination of issues relating to human rights problems.
Specifically, we are implementing educational activities continuously for all workers and those in management position
to promote awareness of sexual harassment, abuse of power, other types of harassment, and discrimination. For new
managers, we are carrying out management training, and deepening the understanding of harassment they need as
managers. We have also established harassment consultation services inside and outside the company that are available
by telephone 24 hours a day. Moreover, each Group company organizes a Fair Employment Screening and Human Rights
Awareness Raising Liaison Conference to raise awareness of human rights issues across the Group, and we are actively
hiring people with disabilities, local people overseas, and non-Japanese in Japan. In addition, we are continuously
working to improve understanding and awareness regarding human rights through initiatives such as holding humanrights awareness training for all Company employees.

92

Our Efforts for Labor Issues
Support for a Living Wage
We conduct labor management while abiding by the labor laws and regulations of each country. In terms of wages, wehave adopted a basic policy of not only following rules on minimum wages in each country, but also paying wages thatexceed those requirements.

System Enabling Dialogue between Labor and Management
The Company works to ensure unity between labor and management by maintaining a framework for dialogue
between employee representatives and Company management in which they meet several times a year to discuss theappropriateness of work environments and work conditions. We also exchange views and coordinate based on theshared understanding that employee health and safety is an important issue.

Preventing Child Labor and Forced Labor
The Group has never used child or forced labor. Also, to guarantee that none is used in the future, we ensure that eachbusiness location thoroughly complies with the laws and regulations of its host country, and conduct regular monitoring.
In the unlikely event that such a violation is suspected to have occurred, we have also established a whistle-blower
contact point that employees can report to.

Reducing Excessive Working Hours and Overtime
The Company has formulated a clear policy to reduce excessive working hours and overtime, and in line with the policy
is working on the following initiatives. We also ensure thorough compliance with local laws and regulations concerning
working hours and overtime.
In order to reduce excessive working hours, we have signed an Article 36 Agreement following discussions between
labor and management. Industrial physicians conduct interviews and provide guidance for workers who exceed overtime
standards. In these and other ways, labor and management are working as one to deal with the elimination of excessive
working hours.
･ Monitoring working hours and conducting interviews with employees･ Notifying both employees and their direct supervisors when they are in danger of overwork･ Utilizing a computer-usage time control system

LGBTQ
For those who identify as LGBTQ, the Company is making the following efforts.
･ We have established internal regulations that cover spouses, family members, etc., allowing employees to apply for
and use various company programs by following set procedures to have their relationship recognized in the same way
as marriage, regardless of their spouse’s gender.
･ We have stated clearly in the Mitsui Fudosan Group Compliance Policies that discrimination on the grounds of sexual
orientation is prohibited and inform all employees of this.
･ Our harassment consultation services provide consultation on harassment relating to LGBTQ.
･ We have formulated a set of Universal Design Guidelines which conform to relevant ordinances, etc.

93

Diversity & Inclusion

Diversity & Inclusion Declaration and Initiative Policy
Diversity & Inclusion Declaration
The

logo adopted by the Group as a management philosophy represents the principles of coexisting in harmony withsociety, linking diverse values, and achieving a sustainable society.
As a real estate developer, the driver of our efforts to continuously provide new value is a major asset of ours-our
people. Therefore, we have positioned the promotion of diversity and inclusion as one of our most vital management
strategies, and the Group is coming together as one to create an organization in which personnel with diverse values,
capabilities, and lifestyles can demonstrate each to the best of their abilities.

Diversity & Inclusion Initiative Policy
Our passionate, capable employees have a diverse range of skills, experiences, and values; as such, we are working toensure an environment where they can demonstrate their individual abilities to the upmost, and recognize one anotheras individuals, evaluated fairly regardless of their race, nationality, religion, gender, age, presence or not of disability,
gender identity, sexual orientation, or other characteristics. To this end, we are promoting workstyle reforms andenhancing our human resources system so as to raise organizational productivity and our employees’ work-life balances.
We have made promoting female participation a key theme, and set ourselves groupwide quantitative goals andqualitative action plans, and we will formulate various measures to promote this as a united Group.

Diversity & Inclusion Promotion Framework
Under our Management’s Commitment, the Director in Charge of Personnel bears ultimate responsibility for ensuring
diversity- and inclusion-related initiatives are pushed forward with the Personnel Department’s D&I Promotion Office attheir heart, with knowledge input from inside and outside the Group.
Diversity and inclusion is a major theme in ESG activities. Reports of our activities, policies for each fiscal year, and othermatters are discussed by the Board of Directors. Furthermore, we are promoting this topic as a united Group, and sharepolicies at meetings at which group company presidents are present, as well as periodically convening the Diversity &Inclusion Promotion Council.

94

Promoting Active Roles for Women
We have set ourselves groupwide quantitative goals and qualitative action plans, and we will formulate various measures
to promote female participation as a united Group.
Our efforts will be focused on the following two points:
We will create an environment where people want to work long-term, where everyone can respect each other’s values
and lifestyles, including whether they care for children or others, regardless of gender
By promoting female participation, we will change awareness within the organization and raise those female employees’
motivation and support their career development
To achieve these, we have formulated the following eight measures, and the Group will work as one to put them into
practice.
1. We will create an environment where people want to work long-term, where everyone can respect eachother’s values and lifestyles, including whether they care for children or others, regardless of gender(1) Changing awareness throughout the organization and among managers (unconscious bias training, etc.)(2) Supporting childcare and leave to care for others (system enhancement, training, paternity leavepromotion, etc.)(3) Developing a return entry system(4) Forming flexible workstyles that cater to individual positions and fields
2. By promoting female participation, we will change awareness within the organization and raise those female
employees’ motivation and support their career development(5) Changing awareness throughout the organization and among managers (diversity and inclusion training,etc.)(6) Developing mentor/sponsor systems for female employees(7) Forming a working group to promote female participation(8) Holding in-house events to encourage interaction
As well as the measures detailed above, we will launch a Network and Grow Project as a joint group program fortraining and networking, and further accelerate groupwide initiatives.

An Environment Where People Want to Work Long-Term
To develop an environment where diverse personnel, whether male or female, can play an active role, we are working tochange awareness throughout the organization and among our managers. To do this, we are implementing unconscious
bias training and other measures for all our employees.
Through efforts by members of the Personnel Department, such as discussions and individual interviews with all
employees, we will grasp the circumstances that employees face and their hopes, and develop an environment andvarious systems, including those that support childcare and caring for others, accordingly.

95

Raising motivation and supporting career development
By conducting diversity and inclusion training, and other measures, for organization heads, we will promote female
participation and change awareness throughout the organization as we offer female managers career development
support via a mentor system and other initiatives. Moreover, the D&I working group we set up provides proposals andexchanges, cross-meetings that allow young females in general positions to interact, and seminars by women in activeroles, and is raising female employees’ motivation and supporting their career development.

Information exchange put on by the Diversity Management
Promotion Project Team for employees on childcare leave (Mitsui
Fudosan Retail Management)

Diversity and inclusion training for organization heads (Mitsui Fudosan,
with opening speeches by management)

Lecture and seminar (speakers included our former director and advisor
on our female participation, Masako Egawa, and her introducer)

As a listed company that excels in the promotion of women's participation,
we were jointly selected by the Ministry of Economy, Trade and Industry (METI)
and the Tokyo Stock Exchange (TSE) for the "Nadeshiko Brand" for the second
year in a row.
The "Nadeshiko Brand" program aims to promote investment in and accelerate
the efforts of listed companies that excel in "promoting women's participation"by showcasing them as attractive issues for investors who place importanceon "improving corporate value over the medium to long term".
The Company was selected in recognition of our various initiatives, as well as
our strategies and related systems that incorporate diverse value systems into
our urban development, the root of our value creation.
Selected as a constituent brand for the MSCI Japan Empowering Women(WIN) Select Index for six consecutive years
2023 CONSTITUENT MSCI Japan Empowering Women (WIN) Select Index
For more details, please follow the link below.
⇒ https://www.mitsuifudosan.co.jp/corporate/hrm/women/

96

Eruboshi
Certification

Diverse Workstyles
Initiative Policy to Introduce Diverse Workstyles
Thelogo adopted by the Group as a management philosophy represents the principles of coexisting in harmony

with society, linking diverse values, and achieving a sustainable society. The Company takes workstyle reform as a key
initiative, and is building an organization that allows personnel with diverse values, skills, and lifestyles to fully realize
their individual capabilities. This will enable us to respond to dramatically changing social needs and create new value.
In addition, Mitsui Fudosan is improving work efficiency in all business divisions, thereby reducing employee working
hours, and promoting an optimal balance between life and work. We believe appropriate work-life balance ensures amore fulfilling private life for employees, and is very effective for encouraging self-improvement and balancing work withchild or family care. As a result, a workplace environment is established enabling diverse employees to fully realize theirindividual abilities, and this helps us create superior value and achieve sustained growth for our Group.

Major Initiatives
Our Efforts to Support Work-Life Balance
Reforming Awareness･ Foster awareness by sharing it continually through messages from top management･ Utilize internal publicity magazines and online newsletters to educate and share expertise･ Set leave uptake targets (14 days each year) and recommend days for employees to take leave･ Implement health and safety training for organizational heads･ Include efficiency as a factor in employee performance evaluations

97

Infrastructure Improvements･ Remote work system (no time limits, can work in shared office or at home) for all employees･ Utilize the WORKSTYLING shared offices provided by the Company･ Utilize a computer-usage time control system･ Superflex-time system with no core time･ Multiple WORKSTYLING satellite offices (approx. 150 sites) made available to all employees･ Return Entry System (system for re-employment after resignation)･ Refreshment Leave (5-10 days, and commemorative prizes in recognition of a certain number of years worked)･ Cafeteria Plan (a benefit program that can be used by selecting from a variety of options such as self-development orleisure/travel)･ Family Day (a Company event with family participation to help deepen ties between employees and their families)

Family Day

Work Reform in Organizational Units･D&I Promotion Office supports each department's initiatives･ Each department establishes customized workstyles and promotes work efficiency improvements･ IT utilization to support enhancements to productivity

Our Efforts to Support Childcare･ In-office nurseries
Employees, both male and female, can use in-office nurseries to support diverse workstyles. They can also use them asa spot to drop off kids temporarily･ Subsidy system for babysitting, after-school childcare, and housework help expenses
Employee can receive help toward part of expenses needed for babysitting, childcare, after-school activities, andhousework services･ Childcare leave
Childcare leave that can be used for up to three years, longer than the legally mandated period･ Childcare leave at birth (male employees)･ Childcare leave system (for both male and female employees)･ Spouse maternity leave･ Flex-time system for reduced working hours during childcare･ Childbirth and childcare interview system and training when returning to work after taking childcare leave
Individuals returning to work have an interview with their boss and the Personnel Department. Such individuals, andtheir bosses, also undergo training as part of their return to work98

Kurumin Certification
To support work balance for employees involved in childcare, we go beyond legally mandated programs, and provide
programs such as in-office nurseries, childcare leave longer than the legally mandated period, and subsidies for the costsof raising children. In these and other ways, we are working to put in place an environment where it is easier to work,and employees can more fully realize their capabilities with peace of mind.

Our Efforts to Support Family Care
To support work-life balance of employees engaged in family care, we are developing an environment that includes aremote work system and a system for subsidizing the costs of family care. In addition, our Care Design Department,
which supports lifestyles in later life, collaborates with the Personnel Department to hold Care Seminars for employees
and their families, and offer care consulting courtesy of a qualified specialist in family care. Employees can also take careleave of up to a year in parts, which is longer than the statutory requirement.

Recruiting Personnel from Diverse Backgrounds
To innovate the real estate business in the way we outline in our Group long-term vision, VISION 2025, there are a wide
range of knowledge sets that we will need to bring together. As such, we are proactively recruiting mid-career humanresources who have no experience in our industry or who were previously working in different fields.
We have put in place various training and mentoring systems that enable greater activity for diverse personnel withvaried career histories and standpoint to demonstrate individuality based on their respective experiences and abilities.
Our aim is for these diverse personnel to work together and collaborate autonomously to produce new value andinnovation.

25
20
15
10
5
0

April 2017 April 2020 April 2023

99

Recruiting and Training Global and IT Personnel
Two of the main aspects of our initiative policy in VISION 2025 are to innovate business models by harnessing real estatetech and dramatically grow the overseas business. Our focus now is on recruiting and training global and IT personnel
that can support those goals.
As globalization continues, we aim to have overseas profit constitute 30% of our consolidated operating income in or
around the year 2025. To that end, we have been actively recruiting foreign nationals and Japanese new graduates or
mid-career employees with global experience. Further, we are striving to create global-oriented staff through measures
such as mandating month-long language learning for younger employees, conducting specific language training for midlevel employees, introducing a one-year overseas internship program, and stints working overseas through job rotations.
We are also aware that digital transformation (DX) has had a major impact on conventional business, and to raise its
real, applicable value, we are accelerating efforts to apply digital and real estate technologies. To do this, we are actively
hunting down highly specialized mid-career individuals that will be an immediate asset to our ICT. We are also applying
their capabilities to each of our business domains to spur innovation. In our existing businesses, we are conducting
various types of training under the belief that all employees are needed to promote even further DX.
We were also selected as a DX Stock 2022 by the Ministry of Economy, Trade and Industry and the Tokyo Stock
Exchange.

80

60

40

20

0

April 2018

April 2023

Employment of Seniors
The mandatory retirement age of the Company is 65 years. We are working actively to provide employment and settings
where older workers can continue to demonstrate their wealth of knowledge and experience.

Employment of People with Disabilities⇒ Please see the Labor Standards and Practices pagehttps://www.mitsuifudosan.co.jp/esg_csr/society/02.html

Employee Engagement Enhancement
In addition to the individual interviews that Personnel Department staff conduct each year with all other employees,
each employee also takes part in an engagement survey to judge the degree to which their values and intentions alignwith the organization. The fact that more than 90% of employees responded that they were proud to work for Mitsui
Fudosan, felt a desire to contribute to organizational and work goals, and felt able to act independently, is probably oneof the reasons our turnover rate is so low.
100Human Resources Management

PolicyUnder its Group Statement, the Company aims to bring affluence and comfort to urban living. Moreover, since its
founding, the Company has inherited and nurtured a progressive spirit together with a free and open corporate culture,and used these as a driver for providing diverse, innovative solutions and services in connection with business and living.
We see our people as an asset and the most important drivers in creating new value as a real estate developer. Ourbasic approach to human resource management is to treat each employee as an individual and create a stage on which
they can hone their professional knowledge and abilities, increase their ability to create added-value, and transform teamperformance through the integration of diverse values and skills.
The Company aims to be a business and lifestyle solutions partner. To do so, Mitsui Fudosan is targeting thedevelopment of a diverse group of employees, who are able to make full use of their individual attributes, with both
specialized and advanced business knowledge, and a broader perspective. To achieve this goal, we have adopted abasic policy on personnel development that broadens the capabilities of each individual by combining four opportunities
for personnel development in accordance with the person's career.

Management System101

(1) OJTWe provide on-the-job training through work on-site as the basis for personnel development. Through specific jobs inthe workplace and communication between employees, we develop the capabilities necessary for job performance in aplanned, continuous fashion.

(2) Yearly interviews between employees and the Personnel Department
As part of our system, we provide employees with numerous opportunities to consult/discuss their career and capability
development with the Personnel Department or their department manager so we can offer support that suits each
employee’s vision for their future. That includes an interview once a year with the Personnel Department that not only
aims to ascertain information on their problems, development environment, and worries, but by grasping the individual’s
work situation and that of those around the individual, the interviews also act as a fair means of evaluation.

(3) Job rotation
We develop professionals with a wide range of specialties. We conduct job rotation every few years. Our aim is todevelop employees and an organization which can adapt to an ever-changing environment, and this is achieved byfurther deepening the experience and knowledge of each employee through work experience in multiple areas, whilebolstering expertise through focus on work the employee is in charge of.

(4) Training programs
Between level-based training and training that can be selected to cater to individual employees’ personal roles, skills, orcapabilities, and other measures, we have more than 100 diverse programs underway. So that everyone can voluntarily
work to improve their own abilities, we are preparing application-based training that incorporates interaction between
employees from different industries.

Examples of Training/Education for Employees' Personal Development
Training programs that involve the sharing of

MEET21 Training, Cross Expert Training, Diversity and Inclusion training, Career Entry Onboarding

management awareness and corporate culture

Training

Broadening/growth of capabilities andperspectives
Improving work execution capability andspecialization
Broadening basic abilities as global
personnel
Fostering the mindset needed as a working
adult
Deepening understanding as a member ofan organization

Long-term Temporary Assignment Training Outside the Company, Cross Expert Training, MEET21
Training, Company-wide DX Training, IT Passport Examination Support
Registered real estate broker training and various types of e-Learning and other distance learning
courses
Overseas trainee programs (English-speaking countries, Chinese-speaking countries), overseas
management training, global training for young and midlevel employees
Sustainability training (which covers compliance, human rights awareness, harassment, the SDGs,
etc.)
New employee training, new employee development instructor training, follow-up training in 1st
and 2nd years after joining the company, and training for newly appointed executives

In addition to the above, to support career visions based on employees’ diverse values, we are putting in place a numberof systems, including a personal statement system related to changing official duties or wishes to change department,
and a system to allow contract employees to become regular employees.
Going further, to deepen understanding of our businesses, one of our initiatives aimed at expanding experience inbusiness domains separate from our existing businesses, we are looking to establish systems that include a businessproposal system, a side-job system to help create innovation and make a social contribution, a leave system whereby
employees can take time to study at graduate school, and a graduate school tuition fee subsidy system. In these ways,
we will promote the fostering of issue-resolution capabilities and the ability to create added-value in this very changeablebusiness environment.

102

Development of Global Personnel
Rapid growth in our overseas business is a key element of our management strategy, and the market in Japan is
becoming more and more globalized. We are therefore working to enhance overseas assignment training and language
programs to develop human resources who can act on the global stage.

Training/Education･ Assignment for International Language Training (Global Training for Young and Mid-Level Employees): To build language
skills, the ability to cope with different cultures, and international connections, we assign young employees (as a rule,
all employees) and mid-level employees to overseas training for periods of 2-8 weeks.
･ Trainee System: We have an international trainee system for internships and language training in Europe, the USA, andAsia, for periods of 6 months to one year. Different employees are assigned to this program every year.
･ Compliance Training: Compliance training covering issues such as preventing corruption is held regularly at international
locations for employees of local subsidiaries and local staff.

Overseas Language Training

Trainee System

103

Environmental Training and Education
As a part of its environmental efforts, the Company trains and educates its employees about the environment while also
providing eco tours (tours of environmentally advanced facilities, etc.) and other activities to increase their interest in theenvironment.

Environmental Training and Education
Each year, the Company conducts afforestation training for employees at forests owned by the Group in Hokkaido. We
also continue to carry out forest conservation work in collaboration with the staff of the Tokyo Metropolitan Government
Bureau of Waterworks at Mitsui Fudosan &EARTH FOREST TOKYO, a forest for water resource conservation in Tokyo.
Group companies are also carrying out their own environmental training and education. Mitsui Fudosan Facilities Co., Ltd.
provides environmental training for new employees and offer existing employees environmental training via e-Learning, as
well as eco tours and other training. Mitsui Fudosan Residential Lease Co., Ltd. and Tokyo Midtown Management Co., Ltd.
provide environmental education. The Save the Snow: Be Active project—which was launched by The Winter Industry
Revitalization Agency and the Japanese Olympic Committee (JOC) Athletes’ Committee in March 2022—has announced
its support for the goals of our 2023 tree-planting training activities, and eight Olympians, including members of the
JOC Athletes’ Committee, took part in the tree-planting. On the day, they joined Mitsui Fudosan employees in planting
around 500 larch trees.

Afforestation training (Mitsui Fudosan)

Eco Tour (Mitsui Fudosan Facilities Co., Ltd.)Eco Test
The Group encourages its employees to take the Certification Test for Environmental Specialists (Eco Test) administeredby the Tokyo Chamber of Commerce and Industry. Mitsui Fudosan Facilities Co., Ltd. and Tokyo Midtown Management
Co., Ltd. have made the Eco Test a required certification.
In addition, Mitsui Fudosan Co., Ltd., Mitsui Fudosan Facilities Co., Ltd. and Mitsui Fudosan Residential Lease Co., Ltd. are
identified as companies that promote the Eco Test on the Eco Test information site of the Tokyo Chamber of Commerceand Industry.

104

Human Rights

PolicyThe Group respects basic human rights and complies with the laws and regulations concerning worker's rights ineach country where we conduct business. We also support and respect the basic rights for workers set out in the ILO
Declaration on Fundamental Principles and Rights at Work. The Group complies with applicable laws and regulations ineach country and region where we conduct business.
1. Policy Prohibiting Discrimination
We will eliminate all discrimination on the grounds of race, nationality, religion, gender, age, disability, or sexual
orientation.
2. Policy Prohibiting Harassment
We will not tolerate any form of harassment, including sexual harassment or abuse of power.
3. Policy to Prevent Child Labor or Forced Labor
We will not permit child labor or forced labor. The Group has never used child or forced labor. To ensure that none isused in the future, we ensure that each business location complies thoroughly with the laws and regulations of its hostcountry and conduct regular monitoring. In the unlikely event that such a violation is suspected to have occurred, we
have also established a whistle-blower contact point that employees can report to.
4. Policy to Support Freedom of Association and the Right to Collective Bargaining
We respect freedom of association and the right to collective bargaining.
5. Policy Supporting Rights to a Minimum Wage and Living WageThe Group conducts labor management while abiding by the labor laws and regulations of each country. In terms ofwages, we have adopted a basic policy of not only following rules on minimum wages in each country, but also paying
wages that exceed those requirements.
6. Principles and Procedures for Community Investment
The Group carries out business activities that do not infringe on human rights, either inside or outside Japan, by
ensuring respect for the human rights of all stakeholders, including local residents and children. Through neighborhood
creation, we are striving to form communities and create opportunities for interaction between diverse humanresources, ultimately leading to new markets and employment. In this way, we offer various forms of value to thecommunities where we conduct business. By participating in and funding area management organizations, we invest in
local communities, and work to increase the value of real estate.
Furthermore, we pursue methods to ensure that basic human rights are respected in countries and regions that do notadhere to internationally-recognized basic human rights.
The Group has established the Mitsui Fudosan Group Human Rights Policy as detailed below, and is promoting humanrights-related initiatives. In addition to this policy being publicly disclosed in our ESG Report, it can also be found via
our internal portal and as well as raising awareness within the Group through training and other measures, we haveestablished our Sustainable Procurement Standards based on this policy. We are also promoting human rights due
diligence for the supply chain in accordance with the UN's Guiding Principles on Business and Human Rights.

105

Mitsui Fudosan Group Human Rights Policy
Seeking to coexist in harmony with society, link diverse values, and help build a sustainable society, as
symbolized by its "" corporate logo, the Mitsui Fudosan Group strives to help build a society of abundance

for both people and the planet.
In order to live up to the philosophy symbolized by our "" corporate logo, we believe that it is of the utmost

importance to ensure that our business always gives due consideration to human rights, so we have establishedthe Mitsui Fudosan Group Human Rights Policy (hereinafter this Policy).
This Policy is based on the Guiding Principles for Business and Human Rights advocated by the United Nations.
1. Respect for international human rights standards
The Mitsui Fudosan Group supports and respects international human rights norms including the Universal
Declaration of Human Rights, the International Covenants on Human Rights, and the core labor standards
established by the International Labour Organization (ILO) in the ILO Declaration on Fundamental Principles
and Rights at Work, which are: freedom of association and the effective recognition of the right to collective
bargaining; the elimination of all forms of forced or compulsory labor; the effective abolition of child labor; andthe elimination of discrimination in respect of employment and occupation.
2. Position of this policy
This policy details initiatives based on the conviction that we must be thorough about ensuring that ourbusiness always gives due consideration to human rights in order to achieve the philosophy symbolized by our" " corporate logo-coexistence in harmony with society, linking of diverse values, and helping build a sustainable
society.
3. Scope
This policy applies to all of the Mitsui Fudosan Group's officers and employees (all employees directly
employed, including temporary employees, part-time workers, etc.). In addition, we ask our business partners
to take human rights into consideration in their corporate activities based on this policy and the Mitsui FudosanGroup Sustainable Procurement Standards.
4. Education and training
The Mitsui Fudosan Group provides appropriate education and training to ensure that this policy is taken into
account and effectively executed in all its business activities.
5. Human rights due diligence
The Mitsui Fudosan Group assesses in advance any negative impacts on human rights that could affect thevarious people with a relationship to its business activities (stakeholders) and takes both preventive andimprovement initiatives.
In addition, we appraise the performance and effectiveness of these initiatives and disclose relevant information.
6. Corrections and remedies
If it becomes clear that the Mitsui Fudosan Group has had a negative impact on human rights due to its
business activities, or that it has been complicit in such impact, it works to correct and remedy the situation
using appropriate internal procedures.
In addition, the Mitsui Fudosan Group maintains a system for reporting and consulting about any acts that havea negative impact on human rights.
7. Dialogue with stakeholders
The Mitsui Fudosan Group continues to improve its human rights initiatives based on this policy, by engaging in
dialogue with various stakeholders.

1068. Salient issues related to human rights initiatives
Salient issues related to human rights initiatives are listed in an appendix to this policy. As these salient issues maychange in response to evolving business and social conditions, we revise them as needed.
Established December, 2020
Masanobu Komoda
President & Chief Executive Officer
Mitsui Fudosan Co., Ltd.

Appendix

Salient issues related to human rights initiatives
Prohibition of discrimination, harassment, or other unfair treatment in the workplace
We prohibit discrimination and unfair treatment on grounds not related to business performance, including
race, nationality, origin, religion, beliefs, gender, age, disability, sexual orientation, gender identity, educational
background, marital status, and employment type. We also do not allow any harassment in the workplace,such as sexual harassment or power harassment.
Ensuring a safe and healthy working environment
In addition to complying with laws and regulations related to working hours and occupational health and safety,
we create a working environment in which all employees can work enthusiastically without feeling health orsafety concerns when working.
Consideration for safety, security, and health in urban development
We conduct thorough quality control to ensure that the safety and health of our clients and the other people
who use our facilities and services are not impaired. We also consider the safety and health of the people near
the areas where we conduct business.
Consideration of minorities and prohibition of unfair discrimination toward them in business activities
In our business activities, we provide facilities and services that take minorities (social minorities; e.g., people
with disabilities or foreigners, etc.) into consideration. In addition, we prohibit unfair discrimination or thepromotion of discrimination when providing facilities and services.
Sufficient communication with clients and other stakeholders in business activities
In conducting our business activities, we strive to ensure that information provision and communication are
sufficient to gain the understanding of our clients and other stakeholders.

107Framework
Under the Executive Management Committee, which supervises overall risk management for the Group, the Strategy
Planning Special Committee and the Risk Management Special Committee manage business risk and administrative risk
respectively.
The Managing Director acts as the person in charge of legal affairs and compliance, the Chief Risk Officer, the Chief
Legal Affairs Officer, and the Chief Officer for Compliance, and he or she belongs to the Board of Directors and Risk
Management Special Committee, is assigned oversight responsibility, and periodically reports on risk management,
including for human rights risks, to the Board of Directors.
At present, alongside expanding human rights due diligence, we are investigating how to put in place mechanisms todeal with complaints, including through cooperation with our internal consultation service.

Establishment of an Internal Consultation Service
The Company has established internal contact points for consultation. These can be used by regular employees, andanyone engaged in work for our company based on an individual labor contract (contract employee), temporary transfer
agreement, worker dispatch contract, part-time contract, or other agreement. Two contact points, internal and external,
have been established, and workers can consult with either. The external contact point is provided at a law office, and it
accepts consultations from a neutral standpoint,*1 notifies the Company of the consultation content, and encourages a
response.
Topics for consultation include: wrongful conduct violating laws, regulations, internal rules, general social norms, or
corporate ethics, sexual harassment, abuse of power, other forms of harassment, employment problems, and issues
with the workplace environment.*2 The privacy of those who engage in consultation is protected, and there is never any
retaliatory action or disadvantageous treatment due to such consultations in terms of personnel decisions. Consultations
can be conducted under a real name, or anonymously.*3*1: Representatives of the law office cannot provide legal opinions as lawyers, or take a stance protecting the consulting person.
*2: Simple expressions of opinion, dissatisfaction with personnel decisions, defamation of others, and similar issues cannot be the subject ofconsultation.
*3: To achieve early discovery and response to compliance problems-the original purpose of the system-the consulting employee's standpoint andother information are confirmed even in the case of an anonymous consultation.

108

Major Initiatives (Human rights due diligence)
When formulating our Human Rights Policy, in order to narrow down major issues related to human rights, we designatedand evaluated human rights risks. In each business segment, we select issues related to our activities or businessdealings that would infringe human rights of any of the stakeholders. We refine issues down to major human rights
issues (human rights risks) specific to our Group, based on their severity according to the UN Guiding Principles andthe likelihood of their occurrence. We also determined four levels of priority for initiatives informed by the scope of therelevant organization and the ease*1 with which we could minimize human rights risks. In the future, too, we will assess
risks related to human rights issues (human rights risks) on an on-going basis, and review their priority levels, among
other methods of continuous risk management.
*1: Considering, among other factors, the importance of dealings with the Mitsui Fudosan Group to the companies we work with from thestandpoint of business transactions. For instance, for business partners whose main business is contract work for the Group, it would be relatively
easy for us to affect the human rights measures being undertaken for employees of the business partner.

Human rights impact evaluation
Human Rights Due Diligence
In 2020, we started human rights due diligence in accordance with the UN Guiding Principles on Business and Human
Rights. As a supplement to the Human Rights Policy, we designated major issues related to human rights.
For more detailed information about the Salient issues related to human rights initiatives, please refer to the following
link.
⇒ https://www.mitsuifudosan.co.jp/esg_csr/society/03.html
We are continuously evaluating their impact on human rights, and putting in place initiatives to prevent or minimize theirimpact, and will continue monitoring.

Human rights impact evaluation
Human rights impact evaluation is carried out for new and existing groupwide business (predominantly in Japan) in themanner detailed below. This evaluation also covers human rights issues that relate to labor problems or health andsafety. When evaluating impact, we also took advice from Akiko Sato, an attorney who is a deputy secretary general at
Human Rights Now, an international human rights NGO. We will ensure that in the future, too, we will continue to havesuch opportunities to gather feedback periodically.

To select major human rights impacts, we investigated the impact of issues related to our activities or business dealings
that would infringe human rights of any of our stakeholders in each business segment (from a total of 202 issues). In linewith their severity according to the UN Guiding Principles, and other factors, we narrowed the list down to a total of 42
important human rights issues (human rights impacts) unique to our business.

109

Sample of impact on stakeholders and human rights

Business segment
RentalManagement

AgencyContracting,etc.

Group employees

Total for all segments (regular/non-regular)

Supplier employees

Total for all segments (regular/non-regular)

Tenants' employees, etc.

○

Buyers, orderers, etc.

―

Building users, visitors, etc.

○

Local residents, businesses, etc.

○

Stakeholders

Built-for-sale

○

―

―

○

○

○

―

○

―

―

○

○

―

○

―
○
(incl. investors)

Refining by severity and probability

Probability

Severity:High

Severity:
MediumSeverity:
Low

Medium (more than once a decade, less

Low (less than once a decade)than once every three years)

High (once or more every three years)

DirectWe selected issues in this area as important human rights issues (human rights impacts)
Indirect
DirectIndirect
DirectIndirect

Supply chain engagement
After we identified significant impacts regarding human rights risks that the Group's business poses to communities,
we conduct supply chain questionnaire surveys and on-site inspections to properly grasp the impact on suppliers ofimportant issues that relate to human rights and to investigate measures to prevent or minimize this impact.
FY2021: Regarding construction sites that are considered to have the most significant impact on human rights risks,
we conducted a questionnaire on overall ESG initiatives, including those related to human rights, with six construction
companies, and undertook construction site inspections at two. From next year onward, in order to strive to reduce
human rights risks, we continue to implement engagement with stakeholders by expanding the number of target
companies and worksites.
FY2022: We conducted a questionnaire with six building operation and management contractors, and undertook on-site
inspections at two companies' operation sites. We also conducted a questionnaire with around 200 tenant companies
at our commercial facilities.
(See "Supply Chain Management" for more details)⇒ https://www.mitsuifudosan.co.jp/english/esg_csr/society/04.html

110

Stakeholder engagement to designate issues that impact on human rights(Conducted on October 26, 2020, and August 2, 2021)

To designate issues that impact on human rights, we engaged with Akiko Sato, an attorney who acts as a deputy secretary
general at Human Rights Now, an international human rights NGO. Her feedback is given below. We have reflected
Ms. Sato's opinions as much as possible in the formulation of our Human Rights Policy, amendments to our Sustainable
Procurement Standards, and in the implementation of our human rights due diligence. In the future, we hope to have Ms.
Sato give feedback on how best to promote initiatives on the theme of business and human rights.

Expectations for the Mitsui Fudosan Group's initiatives for business and human rights
Attorney at Kotonoha Law. Deputy Secretary General at Human Rights Now, an international
human rights NGO, and Business and Human Rights Liaison Of ficer, United Nations
Development Program (UNDP).
Currently, Ms. Sato works to enhance awareness and understanding of business and humanrights by providing advice on topics such as human rights policy and human rights due
diligence; coordinating stakeholder engagement; and proposing policy to the government.

Akiko Sato

Feedback:･ The Group needs to reconsider existing tasks from the framework of human rights, and embed human rights perspectives
into decision-making as part of daily work.
･ With respect to information disclosure for human rights due diligence, when relaying information on the priority ranking
process externally, the Group should make it clear that its investigations are based on the perspective of rights holders,and explain that to external stakeholders in line with ideas contained within the UN Guiding Principles.
･ Many companies comply with human-rights-related laws and regulations, or enact initiatives to that end, but the Group
must investigate whether merely complying with domestic law is sufficient in addressing the theme of business and humanrights. Actually, many measures show some of Japan's laws including the law on eliminating discrimination against persons
with disabilities are not up to international human rights standards. In the future, I would like the Group to recognize thegap between those international standards and Japanese domestic law, and respond to those international standards inline with the UN Guiding Principles.
･ For issues related to supply chain initiatives where it is unclear where to start, one consideration should be first whether
the issue has surfaced in the current situation in Japan or overseas, and whether it is a topic of international debate.
For example, real estate companies should also focus on and evaluate the use of illegally harvested materials used atconstruction sites to make frames for concrete, something that is pointed out and debated by NGOs looking to eradicate
the practice.
･ The Black Lives Matter movement and other questions of racial discrimination are debated as international human rights
issues, and so from an international perspective I think the Group would do well to publicize its own commitment tothe cause. Japanese companies tend to do poorly in this regard. In light of corporate social responsibility, this may beevaluated by the international community as a lack of commitment to human rights and social issues.
･ The level of demand to respond to human rights problems internationally can be considered from the perspective of the
UN Guiding Principles on Business and Human Rights and its concept of eliminating adverse impacts. I feel it is also vitalthat the Group also focus on whatever positive impact their initiatives can make.
･ Japanese businesses, when promoting diversity and inclusion, present the positive side-increased participation-but mustalso be earnest in efforts to tackle the root of the issue as a human rights risk, i.e., by banning discrimination. This willallow them to clarify policy and gain the understanding of stakeholders.
･ Japanese companies don't feel comfortable to announce it when their initiatives don't make progress, but even making
it clear that the company is aware of problems even if they are unable to effectively deal with it is itself important. If thiskind of information is not disclosed externally, the transparency and accountability for stakeholders must be consideredlacking. In such cases, there is a risk that a business may be shut out of the capital market.

111

Relief Mechanism Initiatives
We are also working to establish a redress mechanism for supply chain workers as part of our consideration ofremedying "negative impacts" as stipulated in the UN Guiding Principles on Business and Human Rights.

JP-MIRAI (Platform for Responsible Recruitment of Foreign Workers) to handle foreign worker relief
In April 2022, we joined JP-MIRAI (Platform for Responsible Recruitment of
Foreign Workers)* which addresses relief for foreign workers.
* JP- MIR AI is a voluntary organization established in January 2020,
which brings together a diverse group of stakeholders including privatecompanies, local governments, NPOs, experts, and lawyers to work together toward a "Japan of choice" by solving issues
related to foreign workers in Japan. As of May 2022, there are 443 participating members. Private companies and JICA
(Japan International Cooperation Agency) serve as the joint secretariat. Main activities include: 1) providing informationand listening to the voices of foreign workers, 2) consultation services and relief mechanisms, 3) multi-stakeholder
study groups and workshops, 4) collaborative projects (efforts to secure human resources, emergency support), and 5)
dissemination to the domestic and international community.
(For details, see: https://jp-mirai.org/jp/ )Participation in Foreign Workers Consultation and Relief Pilot ProjectAs part of our initiatives to establish a relief mechanism, we are participating in the "Foreign Worker Consultation
and Relief Pilot Project" launched by JP-MIRAI in May 2022. This project is the first of its kind in Japan to package
an integrated mechanism from provision of information to foreign workers, a multilingual consultation service, andindependent and neutral dispute resolution, as well as feedback of human rights risks to companies. The following aresome of the benefits of the program for foreign workers of participating companies and related companies in the supply
chain: (1) information through a portal site for foreign workers, (2) a low-hurdle consultation service in nine languages, (3)support for problems that are difficult for foreign workers to solve on their own, and (4) use of an out-of-court Alternative
Dispute Resolution (ADR) mechanism in the event of a dispute. This is a project to analyze issues faced by foreign
workers based on data collected in the provision of services. Our company is working to strengthen its supply chain
management and human rights due diligence by utilizing the human rights violation risk information regarding foreign
workers provided by JP-MIRAI. We will begin using the system for foreign technical intern trainees from our main groupcompanies, and plan to expand the scope of use of the system in the future through discussions with each supply chain
company.

112

Other Initiatives
Our Efforts for Children's Rights
The Group supports the abolition of child labor inside and outside Japan, and respects the rights of children, namely:(1) The Right to Live, (2) The Right to Be Protected, (3) The Right to Be Nurtured, (4) The Right to Participate. We believethat ensuring healthy development of the children who will be the next generation-through neighborhood creation andoperation of facilities-is essential for an affluent future, and based on that idea, we are making various efforts to support
the human rights of children in our business activities and projects.
Business Activities and Projects Relating to Children's Rights
Business activities/projects

Summary
KidZania is a social education oriented theme park for children, and here we support the growth and

KidZania

independence of children by encouraging them to have fun while experiencing work, and learn about thestructure of society.
Mirai Kodomo Gakko (future children's school) is a platform for providing the city's original experiential
learning content through regional collaboration at the Kashiwa-no-ha Campus (Kashiwa City, Chiba Prefecture)
for children from infants to high school students. With the support of Kashiwa City, the Kashiwa City Board of

Mirai Kodomo Gakko

Education, the Kashiwa Campus of the University of Tokyo, and Chiba University, a diverse range of people,
including teachers from elementary schools and universities in the area, students, artists, residents, andworkers, will serve as instructors, a variety of curriculums is implemented, providing a place for communitywide learning that transcends the traditional framework of "schools".

Personnel training
Companywide compliance training (e-learning) twice a year, in addition to human rights training that uses videos once
year, includes internal training (explanations of our Human Rights Policy, etc.) related to our Human Rights Policy and our
Sustainable Procurement Standards.

113

Community

PolicyThe Group strives to coexist and collaborate with local communities and build new communities in accordance withthe distinctive characteristics of each area and other factors based on our philosophy of coexisting in harmony withsociety, linking diverse values, and achieving a sustainable society. Furthermore, we have put in place a Policy for Social
Contribution Initiatives to ensure that each Group company and department follows a common and uniform direction.
Based on this policy, each and every member of the Group looks to contribute to society in four core areas: the global
environment, local communities, culture and education, and international exchange. In neighborhood creation thatrecognizes the maturity that comes with age-in which we are involved through our business-we will work in harmony
with local communities to tie it in to create even greater social value.

The Mitsui Fudosan Group's Policy for Social Contribution Initiatives (Formulated March 27, 2013)
In line with our Group Statement that focuses on efforts to bring affluence and comfort to urban living, we
actively contribute to society by revitalizing and creating urban areas while engaging in various activities froma global perspective, to provide affluence and comfort with the aim of achieving the sustained development ofsociety and the economy.
1. We are primarily involved in four areas: the global environment, local communities, culture and education,and international exchange.
2. We strive to achieve harmony with local communities.
3. We proactively make use of our own resources, including properties, networks, and personnel.

Management System
The ESG Management Committee under the ESG Promotion Committee, which is headed by the President and Chief
Executive Officer, was established to promote social contributions throughout the Group. The ESG Management
Committee formulates the principles and policies that define the social contribution activities of the Group. It also keeps
up to date the social contribution targets, objectives and plans of each division and Group company while monitoringand evaluating progress toward targets and plans. The Social Contribution Activity Policy was created in March 2013 toserve as common ground for various activities to realize abundance and affluence in society from a global perspective.

114

Record of Social Contribution Activities
The Company actively supports a wide range of social contribution activities. Specifically, these include activities for
culture and education, local communities, international exchange, and the global environment. We also promote a
multitude of employee-led initiatives that support community creation.
Main areas of engagement, support and cooperation (excerpt)
Mitsui Memorial Museum
Sumida River Fireworks Festival
Shiki Theatre Company-Kokoro Theater Project(Japanese Only)
Promoting, Restoring and Preserving the Beauty of Japan's Art-Tsumugu Project
Culture, Education, and Sports

Support for TEAM JAPAN as Real Estate Development Partner(Japanese Only)
Support for Sport (Japanese Women's National Basketball Team, Japan Sport Climbing Representative, Japanese
Wheelchair Rugby Team, Kawasaki Frontale, Kashiwa Reysol, etc.)(Japanese Only)
International Multi-Sport Festival-Corporate Games(Japanese Only)
Center for iPS Cell Research and Application
Mitsui Memorial Hospital
Sakura Fes Nihonbashi(Japanese Only)
ECO EDO Nihonbashi

Local Support
Nihonbashi Sustainable Weeks 2022
Theater Festival-Hibiya Festival(Japanese Only)
Disaster Reconstruction Efforts&EARTH Clothing Support Project-Bring a Smile to the World with Your Clothes(Japanese Only)&EARTH x SOLTILO FAMILIA SOCCER SCHOOL Soccer Support Project(Japanese Only)
International Exchange

Public-Private Cooperative Study Abroad Promotion Campaign-Tobitate! (Leap for Tomorrow) Study Abroad
Initiative(Japanese Only)
JEES-Mitsui Fudosan Scholarship established&EARTH DAY (Environmental Education Event)(Japanese Only)

Global Environment&EARTH Classroom (Environmental Education at schools and other facilities)(Japanese Only)
Let's Learn! Let's Play! Cool Choice Plaza (Environmental Education Event)(Japanese Only)

115

Regional Revitalization and Community Creation
The Company plans and hosts a diverse range of events that promote community creation and regional revitalization.
We also carry out activities that help to strengthen family ties, as well as hold various events that educate communities
on future society and environmental issues.

Our Efforts in the Nihonbashi Area
Sakura Fes Nihonbashi
Every year across March and April, Mitsui Fudosan holds the Sakura Fes Nihonbashi in the Nihonbashi area. The event
is highly regarded for its economic ripple effects, its ability to increase customers and non-residents to the region, its
effectiveness in disseminating information overseas, and the techniques and creativity that will influence events held in
the future.

Sakura Fes Nihonbashi

ECO EDO Nihonbashi
Every year between July and September, Mitsui Fudosan holds ECO EDO Nihonbashi, an event showcasing traditional
ideas for staying cool, cultivated in Nihonbashi during the Edo period, but arranged in a modern style. The focal pointis strolling through town rather than staying in one place, so visitors can experience the classic Japanese summer while
maintaining social distance.

ECO EDO Nihonbashi 2017, giant goldfish lanterns,
scene on Naka Dori Street

Our Efforts in the Kashiwa-no-ha Area
Minna no Machizukuri Studio is a project that started in Kashiwanoha in December 2020. It was born as a platform forco-creation by companies, governments, and academic institutions centered on the residents who are the users of thetown, to promote Kashiwa-no-ha Smart City, a town that creates a "future image of the world". We operate with several
experimental methods to create new services, products, and projects from the perspective of consumers.

116

Our Efforts at Tokyo Midtown
In Tokyo Midtown (Minato-ku, Tokyo), we participate as volunteers in events organized by the Azabu District General
Branch Office of the Minato Ward Office, Tokyo Metropolitan Government. These events are held as part of the Minna
De Ecotto Project for fostering concern for nature and living things among children in the area.

Our Efforts at Commercial Facilities
In cooperation with local government, companies, NPOs, and other organizations, the Group holds an experiential
learning event for children called “Let's Learn! Let's Play! Cool Choice Plaza” at its commercial facilities, where participants
can learn about energy and environmental issues.

Let's Learn! Let's Play! Cool Choice Plaza

Supporting Community Creation through Sport
Real Estate Development Partner
We have been involved in a variety of real estate development projects that incorporate sports elements under theslogan, "BE THE CHANGE: Cities Start World Changes".
We are proud of the Japanese athletic team "TEAM JAPAN" for bringing dreams and inspiration to the people of Tokyo
2020 and Beijing 2022 Olympic and Paralympic Winter Games, and for connecting the bonds between the people ofJapan. We will continue to support "TEAM JAPAN" in their challenge for the Paris 2024 Olympic and Paralympic Gamesthrough urban development. We will actively support local community building through the power of sports and theenjoyment of events.

&EARTH x SOLTILO FAMILIA SOCCER SCHOOLThis event is hosted in collaboration with the SOLTILO FAMILIA SOCCER SCHOOL—a project designed by professionalsoccer player Keisuke Honda—and has been held at LaLaport FUJIMI (Fujimi City, Saitama), Urban Dock LaLaport
TOYOSU (Koto-ku, Tokyo), LaLaport EXPOCITY (Suita City, Osaka), and other Group commercial facilities since 2017.
During the event, soccer gear no longer in use is collected and donated to children overseas through the NPO Japan
Relief Clothing Center. Through their activities, the staff of SOLTILO also contribute to local communities by providing
soccer instruction to children inside and outside Japan.

Pre-event

Soccer training held in Cambodia

117Social Contribution through Volunteer Activities&EARTH Clothing Support Project-Bring a Smile to the World with Your Clothes
The Company and Mitsui Fudosan Retail Management Co., Ltd. hold the &EARTH Clothing Support Project-Bring a Smileto the World with Your Clothes project at commercial facilities run by the Mitsui Fudosan Group. Unneeded clothingis collected, and then donated to refugees and disaster victims in countries all over the world through the NPO Japan
Relief Clothing Center.
Together with its customers in each region, the Group seeks to alleviate disparities and poverty and realize a more
affluent society, and as such has held the &EARTH Clothing Support Project since 2008. The project was held in 20
commercial facilities in October and November of 2022. A total of 2,471 individuals donated 11,440 kg of clothing,raising 133,579 yen in the process.
For further details, see (Japanese version only)⇒ https://and-earth.mitsuifudosan.co.jp/clothes/

Volunteers

Implementation of Pro Bono Program
Every year the Personnel Department conducts the Pro Bono Program for around 10 company employees. The programfacilitates cross-sector learning where participants learn about workplaces other than their own through group work withindividuals outside the real estate industry. This program expects participants to engage voluntarily with the activities
which contribute to society, using their skills and expertise.
These employees were engaged with the activities in nine companies from a broad range of industries-such as tech,
food, childcare, health, tourism, and traditional arts-from both rural Japan and overseas.

Held Happy Smile Festival
We regularly hold events organized by the NPO Group Happy Smile to sell products handmade by people withdisabilities from various welfare facilities, with proceeds returned to the creators as wages. The Company and Mitsui
Fudosan Building Management Co., Ltd. provide a venue gratis and participate as volunteers. Volunteers from tenantcompanies also participate, and everyone involved with the building works as a team to make a social contribution.

Happy Smile Festival venue

118

Participation as Volunteers in Kokoro TheaterIn full support of its mission, Group employees participate as volunteers in the Kokoro Theater Project, an initiative
organized by the Butai Geijutsu Center and the Shiki Theatre Company, held to enable children to enjoy the emotionallymoving experience of theater.

A scene from the musicalParticipation in Cleaning the Famous Nihonbashi Bridge
Every year in July, Company employees and their families voluntarily take part in activities to clean the famous
Nihonbashi bridge.
The Meikyo Nihonbashi Preservation Council is an organization that aims to restore the view of Nihonbashi, whose
beauty was lost when it was covered by the Shuto Expressway, and pass the bridge on in good condition to future
generations. In accordance with this purpose, this event is a summer tradition in the Nihonbashi area that has continued
since 1959, with the participation of local residents and company employees.

Bridge cleaning

Participating employees

119Communicating with Local Communities Following the Great East Japan Earthquake
Watasu Nihonbashi: A Center for Exchange with Earthquake Affected Regions
Watasu Nihonbashi (Chuo-ku, Tokyo) was opened in March 2015 as a result of encounters with the people of
Minamisanriku Town following the Great East Japan Earthquake. The center plays a role as an intermediary linking
Tohoku and Nihonbashi, and includes the Watasu Dining & Bar featuring ingredients from Minamisanriku and other partsof Tohoku, and the Watasu Room interaction space for online exchange with junior high school students from the local
area, events and workshops relating to reconstruction, and other programs.

Junior high school students from Minamisanriku Town visiting
Watasu Nihonbashi

Sustainability Training
CSR training has been conducted continuously since 2013 to improve awareness of disaster preparedness throughexperience of the situation in earthquake affected regions, and create opportunities for voluntary efforts and contribution
to social issues. Employees visit Minamisanriku Town and regions within Fukushima Prefecture, both areas affected by theGreat East Japan Earthquake.

Training in Minamisanriku Town
(on the former site of the disaster management government building)120

Supply Chain Management

PolicyAs a corporate group supporting offices, housing, and other infrastructure necessary for daily life, we recognize that it isour duty to fulfill our social responsibilities at an even higher level. To accomplish this, we believe efforts should be madethroughout the entire supply chain to promote sustainable procurement and thereby help resolve ESG issues. We haveformulated Sustainable Procurement Standards summarizing basic guidelines in this area. We published these standards
on our website in December 2018, and have notified our main business partners. In February 2022, as part of our humanrights due diligence, we amended and added to the standards incorporating basic guidelines on the following items
that should be complied with or actively promoted by both the Group and its suppliers: (1) Compliance with Laws andRegulations; (2) Respect for Human Rights in Business Activities; (3) Respect for Human Rights Related to Labor; (4) Safeand Healthy Working Environment; (5) Establishment of Business Ethics; (6) Ensuring Quality; (7) Consideration for theEnvironment; (8) Information Security; and (9) Crisis Management and Business Continuity Plan. To ensure sustainableprocurement, we have included corrective measures and cooperation with monitoring and applying pressure to suppliersand contractors, by providing suppliers with cooperation requests alongside the standards. We have also produced
separate manuals that go into more details on the standards so as to raise awareness internally and within the Group,
as well as at suppliers, and since October 2022 we have once again been notifying partners. The idea is to share thesestandards within the Group, build and operate an ordering and contract process in line with the nature of our business,
and apply the same approach to our business partners. To realize a sustainable society, we are working to promotesustainable procurement throughout our supply chain.

Mitsui Fudosan Group Sustainable Procurement Standards
Established: December 5, 2018
Revised: February 4, 2022
1. Compliance with Laws and Regulations
Companies doing business with the Mitsui Fudosan Group (hereinafter, “companies”) shall not only comply
with the applicable laws and regulations in their home countries and the countries and regions where they
conduct business, but shall also respect internationally recognized standards of conduct.
2. Respect for Human Rights in Business Activities
In order to ensure the implementation of business activities with consideration for human rights, companies
shall identify in advance the potential adverse impact of their business activities on the human rights ofvarious people, including foreign populations and indigenous peoples, and take preventive measures and/or remediation measures, making reference to international human rights norms such as the Universal
Declaration of Human Rights.
2.1 Prohibition of unjust discrimination and human rights violations in business activities
Companies shall not engage in acts of unjust discrimination or be complicit in it in their business activities. In
addition, companies shall ensure that their business activities do not cause nor are complicit in human rights
violations.
2.2 Respect for the rights of socially vulnerable and minority groups
In the provision of products and services, companies shall ensure that the basic needs of socially vulnerable
and minority groups are met.

121

2.3 Universal design
In the provision of products and services, companies shall strive to offer universal design and services that areconsiderate of diverse situations, in order to ensure the convenience and comfort of all people.
3. Respect for Human Rights Related to Labor
Companies shall respect the human rights of workers, in line with international human rights standards,
including the core labor standards established by the International Labour Organization (ILO), while also
complying with relevant laws and regulations.
3.1 Freedom of association and right to collective bargaining
In compliance with local laws and regulations, companies shall respect the rights of employees to organize andbargain collectively as a means of participating in labor-management negotiations on working environment andwage conditions.
3.2 Prohibition of forced labor
Companies shall not use forced labor obtained through coercion, bondage, inhumane prison labor, slavery,
human trafficking, or other such means. In addition, companies shall not force employees to work against theirwill and shall protect the right of employees to leave or terminate their employment of their own accord.
3.3 Prohibition of child labor and consideration for young workers
Companies shall not allow children under the minimum working age to work. In addition, companies shall notallow young workers under the age of 18 to engage in hazardous work that may jeopardize their health andsafety, such as night shifts and overtime work.
3.4 Prohibition of discrimination in employment
Companies shall not engage in any form of unfair discrimination, including unfair discriminatory treatments
based on grounds such as race, nationality, ethnicity, skin color, age, gender, sexual orientation, gender
identity, religion, beliefs, disability, marital status, pregnancy, political affiliation, or union membership, in any
employment practice, including wages, promotion, compensation, and retirement.
3.5 Prohibition of abuse and harassment
Companies shall respect the human rights of workers and shall not subject workers to inhumane treatment,
including psychological or physical abuse, coercion, harassment, or any other potentially inhumane acts.
3.6 Adequate wages and allowances
Companies shall comply with all applicable laws and regulations regarding compensation paid to employees(including minimum wages, overtime pay, and legally mandated allowances and deductions) and social security.
Furthermore, companies shall strive to pay wages at a level that allows workers to support their basic needs (aliving wage).
3.7 Appropriate working hours, holidays, and leave
Companies shall not allow workers to work in excess of the maximum working hours set by local laws
and regulations, shall appropriately manage working hours and days off in consideration of internationallyrecognized standards, and shall grant annual paid leave in compliance with local laws and regulations.
4. Safe and Healthy Working Environment
In addition to complying with the relevant laws and regulations, companies shall also pay due attention todomestic and international guidelines on worker safety and health, and make efforts to provide a safe andhealthy working environment that minimizes work-related injuries and physical and mental illness.

1224.1 Management of employee healthCompanies shall provide appropriate health management for all employees.
4.2 Occupational health and safety
Companies shall identify and assess risks to occupational safety and ensure safety through appropriate design,
engineering and administrative controls.
Companies shall also identify and assess the risk of worker exposure to biological, chemical, and physicalhazards in the workplace, and implement appropriate management.
4.3 Consideration for physically demanding work
Companies shall identify and evaluate physically demanding work and implement appropriate management toprevent occupational accidents and illnesses.
4.4 Safety measures for machinery and equipment
Companies shall evaluate the machinery and equipment used by workers in their work for safety risks andimplement appropriate safeguarding measures.
4.5 Healthy, safe facilities
Companies shall ensure that the facilities provided for workers' lives (dormitories, cafeterias, toilets, rest areas,etc.) support adequate health and safety.
In addition, dormitories shall have appropriate emergency exits for emergencies.
4.6 Response in the event of occupational accidents or diseases
Companies shall record and report occupational accidents and diseases, and take appropriate measures andcorrective actions.
4.7 Promotion of communication
Companies shall provide education and training on the appropriate health and safety information for thevarious occupational hazards that workers may be exposed to on the job, in the workers' native language or ina language and manners that workers can understand.
In addition, companies shall operate a system for workers to provide feedback on safety-related issues.
5. Establishment of Business Ethics
Companies shall conduct business activities based on high ethical standards in addition to compliance withthe law.
5.1 Prevention of bribery and other forms of corruption
Companies shall not engage in bribery, corruption, extortion, or embezzlement of any kind. In addition,companies shall not offer or condone promises, offers or permits as a means of obtaining bribes or other illicit
or inappropriate benefits.
5.2 Avoiding interactions with organized criminal groups
Companies shall avoid all interaction with organized criminal groups and other “antisocial forces” that threaten
the order and safety of civil society.
5.3 Promotion of fair business activities
Companies shall promote fair business activities and refrain from acts that impede fair and free competition andacts of unfair competition.

123

5.4 Prohibition of abuse of dominant position
Companies shall not use their dominant position to unilaterally determine transactions in their own favor or to
the detriment of their business partners.
5.5 Protection of intellectual property rights
Companies shall respect intellectual property rights, and the transfer of technology and know-how shall bedone in a way that protects intellectual property. Companies shall also protect the intellectual property of third
parties, such as customers and business partners.
5.6 Appropriate disclosure of information
Companies shall appropriately disclose their financial and non-financial information in accordance withapplicable laws and regulations as well as social norms and guidelines of industry associations. Falsification ofrecords or disclosure of false information shall not be tolerated.
5.7 Establishment of grievance mechanism and protection of whistleblowers
Companies shall operate a grievance mechanism to investigate and respond to problems and allow employees
and other whistleblowers to report them. Companies shall also protect the confidentiality of information andthe anonymity of whistleblowers, and shall not retaliate in any way against whistleblowers.
5.8 Responsible procurement of raw materials
For raw materials used in business activities, companies shall avoid those produced by unlawful means (including
illegally logged timber and conflict minerals) and strive to utilize those produced with consideration for theenvironment and society, such as recycled timber and certified timber.
6. Ensuring Quality
Companies shall ensure and strive to enhance the safety and quality of the products and services they
provide.
6.1 Consideration for security, safety, and health in urban development
In designing, manufacturing, and selling products, companies shall fulfill their responsibilities as suppliers
by ensuring sufficient product safety, such as by meeting the safety standards stipulated by the laws andregulations of each country.
In addition, when providing services, companies shall strive to engage in business activities with consideration
for the safety and health of the people who use the services and other related parties.
6.2 Quality management and quality assurance
Companies shall comply with all applicable laws and regulations, their own quality standards, and customer
requirements regarding the quality of products and services. In addition, companies shall have a system inplace to receive and appropriately handle customer complaints and grievances.
6.3 Provision of accurate information on products and services
Companies shall provide accurate and non-misleading information about products and services to customers
and consumers. They shall not provide false or falsified information.
7. Consideration for the Environment
Companies shall proactively address global environmental issues such as resource depletion, climate change,and environmental pollution, while also considering local environmental issues to ensure the health andsafety of the people in the communities involved.

1247.1 Addressing climate change
Companies shall work continuously to reduce their energy consumption and greenhouse gas emissions by
striving to improve energy efficiency and introduce renewable energy.
7.2 Efficient use of resources and waste management and reduction
Companies shall comply with laws and regulations and engage in appropriate waste management. They shallalso pursue reduction, reuse, and recycling in order to ensure resources are efficiently used and minimize thegeneration of waste.
7.3 Prevention of pollution and management of chemical substances
Companies shall comply with relevant laws and regulations and implement appropriate measures to reduce therelease of hazardous substances into the air, water, soil, etc.
In addition, companies shall manage hazardous chemical substances in order to ensure that they are identified,labeled, handled safely, transported, stored, used, recycled or reused, and disposed of in compliance with laws
and regulations.
7.4 Reduction of water usage
Companies shall comply with laws and regulations, monitor the sources, uses, and discharge of the water used,and conserve water.
7.5 Conservation of biodiversity
In order to conserve the natural environment and ecosystems where diverse organisms live, companies shallwork to reduce negative impacts of their business activities on them.
7.6 Provision of environmentally-friendly products and services
Companies shall be proactive in providing environmentally-friendly products and services. They shall also
comply with all laws and regulations and customer requirements regarding chemical substances contained in
products.
8. Information Security
Companies shall prevent leaks of confidential information and personal information and work to strengthen
information security.
8.1 Information security and cyber security
Companies shall not only appropriately manage and protect their own confidential information but also theconfidential information received from customers and third parties. In addition, they shall take defensive
measures against cyber-attacks and other threats to prevent damage to themselves and others.
8.2 Protection of personal information
Companies shall comply with all relevant laws and regulations and appropriately manage and protect thepersonal information of all business partners, customers, employees, and others.
9. Crisis Management and Business Continuity Plan
Companies shall take appropriate measures to ensure the safety of their employees and other stakeholders,
and to resume business activities as soon as possible, in the event of a natural disaster or accident.

1259.1 Crisis management
In order to minimize the damage to workers and assets caused by natural disasters, accidents, and otheremergencies, as well as indirect damage to related parties and the public resulting from such damage,Companies shall establish action procedures for emergency measures, install the necessary equipment, andprovide education and training to enable employees to take such action in the event of a disaster.
9.2 Business continuity plan (BCP)
Companies shall identify and assess risk factors that could impede business continuity, and formulate abusiness continuity plan (BCP) that includes a close examination of the impact on business, the necessary
medium- and long-term measures, and the status of initiatives.

Click the link below to see the Japanese version of the Mitsui Fudosan Group Sustainable Procurement Standards.
⇒ https://www.mitsuifudosan.co.jp/esg_csr/society/04.html
Click the link below to see the manuals for the Mitsui Fudosan Group Sustainable Procurement Standards.
⇒ https://www.mitsuifudosan.co.jp/corporate/esg_csr/pdf/2022/sustainable_procurement_standards_manual_jpn.pdf(Japanese version)⇒ https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/pdf/2022/sustainable_procurement_standards_manual_eng.pdf(English version)

126

Major Initiatives
Promoting sustainable procurement
The ESG Management Committee under the ESG Promotion Committee, which is headed by the President and Chief
Executive Officer, was established to tackle human rights issues throughout the Group. The ESG Management Committee
formulates the principles and policies that define the human rights-related issues of the Group. It also works to promote
human rights due diligence based on the Sustainable Procurement Standards and evaluates the results and investigatesour response, among other roles. It also promotes a variety of activities that share vital commonalities with the Mitsui
Fudosan Human Rights Policy, which was formulated in December 2020, from a global perspective.

Internal training
Groupwide compliance training is carried out twice a year (via e-learning), which includes internal training (explanationsof the Human Rights Policy, etc.) on the Human Rights Policy and Sustainable Procurement Standards. In addition, in
FY2022, we will conduct training to thoroughly familiarize employees with the latest trends, focusing on "business andhuman rights," as well as the Group's initiatives, such as revisions to the "Sustainable Procurement Standards."

Supplier training
In 2020 and 2022, we distributed the Group’s Sustainable Procurement Standards to around 800 suppliers and held
training seminars for them to understand its content. In 2022, we also distributed an instruction manual for our
procurement standards in order for these suppliers to understand the Standards better. Meanwhile, since 2021, we haveconducted ESG due diligence annually for our suppliers. We have analyzed the results of questionnaire surveys and onsite inspections and conducted training sessions to provide feedback to our suppliers.

Supplier questionnaires
As a result of appraisals into human rights risks, we selected six major suppliers from the construction industry-which
has a great deal of overlap with and influence from ESG topics-and carried out a supplier questionnaire in line with our
Sustainability Procurement Policy to promote and raise awareness of the following important themes. We will continue
to carry out these questionnaires, and will expand them to include other business partners.
Questionnaire topics･ Compliance with Laws and Regulations･ Respect for Human Rights Related to Labor･ Establishment of Business Ethics･ Consideration for the Environment･ Crisis Management and Business Continuity Plan
･ Respect for Human Rights in Business Activities･ Safe and Healthy Working Environment･ Ensuring Quality･ Information Security
The results of the questionnaire revealed that some efforts in the areas of Respect for Human Rights in Business Activities,
Respect for Human Rights Related to Labor, Establishment of Business Ethics, Ensuring Quality, and Consideration for theEnvironment were lacking. Taking these results into account, in the future we will promote a further levelling up of ESG
initiatives—including for human rights—aimed at suppliers.

127Supplier on-site surveys (worksite monitoring)
For two of the six construction companies who answered the supplier questionnaire, we carried out an on-site surveythat involved monitoring a worksite in operation. Alongside an external surveying company, we visited each worksite for
one day and interviewed construction company staff, in particular confirming the specific initiatives mentioned in theiranswers to the questionnaire. We discovered no major problems, including any human rights or compliance infractions.

128

Results of the supplier questionnaire and on-site survey and response to issues･ While there were no major problems identified in either the questionnaire or the survey, the following areas do require
improvement.
Overview of risk evaluation, taking into account the results of the questionnaire and on-site survey･ With regard to those initiatives found to be lacking, we will discuss improvement measures and work to make
improvements with construction companies.
･ In fiscal 2022, we carried out a questionnaire with six building operation and management contractors and conducted
on-site inspections at two companies' operation sites.
129

Tenant engagement
We conducted a questionnaire survey for about 200 tenants at commercial facilities operated by our group. In addition
to introducing our group's initiatives such as sustainable procurement standards and engagement with suppliers on ESG
issues, we actively encourage our supply chain to address ESG issues by sharing tenants' initiatives.

Engagement with employees and tenants
We regularly engage in dialogue with our employees and tenants of Group facilities regarding our initiatives to addresssocial issues.
We provide our group employees with training seminars to further understanding of our Sustainable Procurement
Standards, Human Rights Policy, and ESG due diligence. We also conduct employee satisfaction surveys to gain feedback
from our employees on a broad range of topics including what it means to work for the company, their motivation, andtheir opinions on wages, safety, and health.
We have conducted a questionnaire survey of the tenants of our Group's commercial facilities. Through the survey,
in addition to disseminating our Sustainable Procurement Standards, we interviewed tenant companies about theirinitiatives.

130

Providing Value through Customer Satisfaction and Creation of Neighborhoods

Policy of Enhancing Customer Satisfaction
As part of our Environmental Initiatives Policy, we have set cooperation (collaborating and cooperating with various
stakeholders) as one of our key activities. In collaboration and cooperation with customers, business partners, local
communities, and the authorities, we will ensure we respect human rights in our business activities.
We are also a participating party in the Declaration of Partnership Building project, established by the Japanese Cabinet
Office and other entities. The project aims to help large corporations and small and medium-sized enterprises form
sustainable relationships that will help both to grow. By participating, companies declare that they will promote coprosperity throughout entire supply chains and form new partnerships that go beyond the current scale, groups andborders, etc., as well as complying with positive trading practices with main operators and subcontractors.
We recognize that our employees and the employees of tenants of our facilities are also important partners, and we will
work on efforts such as utilizing proactive dialogue to help each individual stay healthy and safe, and to provide themwith opportunities to develop their abilities.

Declaration of Partnership Building
In order to form a new partnership that will help us cooperate, and aiming for mutual prosperity, with the business
partners that form our supply chain and companies that help us create value, we declare our intent to focus ourenergies on the following:
1. Promoting co-prosperity throughout the entire supply chain and forming new partnerships that go beyond thecurrent scale, groups and borders, etc.
Through our direct business partners, we have put pressure on partners further down the supply chain(moving them from Tier N to Tier N+1 business partners) to work on improving added value throughout the
chain. Also, through existing business partnerships and cross-company collaboration, etc., we are aiming
to develop a framework that brings prosperity for both us and our partners. We have also supported ourpartners by offering advice on introducing teleworking or formulating business continuity plans (BCPs) fromthe perspective of responding to disasters or reforming the way people work.
Individual initiatives:a. Cooperation between companies
Based on the ideal of coexisting in harmony with society symbolized by our

logo, we will promote ourbusiness hand in hand with our business partners. Equally, we are working with those same partners to create
new industries through open innovation.
b. Environmental efforts
In addition to formulating a Group action plan to realize a decarbonized society, the whole supply chain
is working together to implement five initiatives: (1) improving the environmental friendliness of new
construction projects and existing properties; (2) using environmentally friendly electricity in shared areas andareas that our businesses use in buildings; (3) providing environmentally friendly options to business tenants
and buyers; (4) securing a stable supply of renewable energy; and (5) reducing CO2 emissions produced
during construction.

1312. Complying with promotion standards
For positive trading practices with new main operators and subcontractors, we comply with promotion
standards based on the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises and are
actively working to combat trading and business practices that interfere with our efforts to build partnerships
with our business partners.
(1) Pricing methods
We do not make demands for unreasonably low cost prices. When determining costs associated withbusiness dealings, where subcontractors wish to discuss prices, we debate the matter appropriately, withdue consideration to how the subcontractor can achieve a suitable level of profit, with regard to the effect ofrising labor costs and similar. The main operator specifies and issues contract terms and conditions, including
decisions on prices, in writing and other formats.
(2) Bills and other payment criteria
We pay subcontractors' fees in cash.
(3) Intellectual property and expertise
During our dealings, we do not ask partners to disclose their expertise or transfer intellection property rights
without monetary compensation where inappropriate.
(4) Negative effects of changes to working styles
To allow business partners to also adapt to new working styles, we do not make inappropriate demands for
unreasonably short deadlines or suddenly change specifications, which would result in a greater burden on thepartner. In the event of a disaster, we would not force a subcontractor to take the entire burden of dealings,
and where possible will consider how to resume our partnership when work can begin again.
3. Other
Based on the ideals of coexisting in harmony with society, linking diverse values, and achieving a sustainable
society, the Mitsui Fudosan Group is working to build societies that enrich people's lives and our planet. We
pursue ESG management and conduct business with awareness of our responsibilities with respect to theEnvironment, Society, and Governance. Reflecting our commitment to further accelerate the Group's ESG
management, we can contribute in a significant way to the Japanese government's Society 5.0 vision and to theattainment of the UN's SDGs. In November 2021, we formulated policies for the Group regarding how to help
bring about a decarbonized society and how to promote diversity and inclusion. In the future, we will continue
to work to address social challenges through neighborhood creation.
February 28, 2022
Mitsui Fudosan Co., Ltd.
Masanobu Komoda
President and CEO

For more details on the Declaration of Partnership Building, refer to the site below (Japanese only)⇒ https://www.biz-partnership.jp/index.html

132Our Efforts to Improve Customer Satisfaction (CS)The Group emphasizes communication with customers, and we address customer feedback and requests with great
seriousness. By working to resolve and address various consumer issues, we will promote neighborhood creation fromthe customer's perspective, and improve the quality of services provided to customers.

Major Initiatives
Listening to Customers
The Group undertakes a variety of activities as a part of efforts to listen to customers' comments. CS surveys are
conducted encompassing a wide area including office building tenant companies and residents of condominiums anddetached housing as well as hotel guests. The feedback gained through these surveys is extremely helpful in improving
the Group's initiatives. We carefully monitor customer feedback received through boxes placed for this purpose at someof our retail properties. These opinions and comments are used to improve operations in facilities and other areas,
including store planning and design.
Stakeholders

Examples of improvements･ Crime prevention, smoking area separation･ Improvements to common-use areas

Customers/
Tenant companies of Office Buildings･ Improvements to elevator operating programs･ Improvements to restroom facilities･ Meetings to observe elevator rescue drills･ Tours to observe building facilities･ Installation of additional coin lockers and larger coin lockers･ Refurbishments/enlargements made to kids' spaces･ Installation of air purifiers in baby rooms･ Installation of microwave ovens･ Installation of curtains in diaper changing rooms･ Replacement of flooring materials and wallpaper in nursing rooms

Customers/
Tenant companies of Retail Facilities･ Refurbishments to women's restrooms･ Increase in number of stroller pick-up locations (increase number ofstrollers)･ Increase in stroller drop-off locations･ Increase in cart drop-off locations, improvements to parking lot signs･ Installation of additional benches and signs within each property,
improvements to smoking room doors･ Changes to rules on pets (reassess areas where pets are allowed)･ Improvements to smoking areas in common areas, increase in vehicle/

Customers/
Tenant companies of Logistics Facilities

bicycle parking areas･ Enhancement of shared amenities (setting up of Christmas trees,
Kadomatsu Japanese New Year's decorations, message cards, etc.)133

Barrier-Free and Universal Design
For all aspects of life, whether it be work, home life, recreation, or relaxation, the Group promotes the creation ofurban environments and buildings that are easy for everyone to use, regardless of their cultural background, language,
nationality, age, gender, or disability. Moreover, in our office buildings and other development projects, we examine easeof access using public transport, and evaluate accessibility for people with disabilities. We ensure our measures arewithin the scope stipulated by laws and regulations, and in some cases make additional efforts.
Mitsui Home Co., Ltd.’s endeavor to make temperature and humidity equipment barrier-free was selected as a fiscal
2017 Leading Project for Sustainable Homes by the Ministry of Land, Infrastructure, Transport and Tourism. Seeking to
make home life more healthy, secure, and convenient, the system combines duct-type air conditioning systems and IoTtechnology to suppress indoor dust and thereby reduce cleaning frequency. The project also enables users to do suchthings as remotely fill their bathtubs. In this way, the burden of housework and time spent are lessened.

Mama with LaLaport
The Mama with LaLaport campaign aims to ensure that parents and expectant parents have more fun and more peaceof mind by making the shopping centers better oriented to mothers and fathers. As well as design features such as baby
rooms and places where kids can play, we are also proactively working on initiatives such as events where parents canmeet other parents and workshops both parents and children can enjoy. In 2022, these efforts were recognized by theJapan Mothers Association’s Mothers Selection Awards.
Examples of major initiatives:
・ Facilities inside LaLaport shopping centers to benefit those bringing up children, including nursing rooms, baby changing
stations, kids’ spaces, raised floor seating, and wide, open spaces indoors and out.
・ Installation of mamaro™ completely private baby care rooms
・ Introduction of the OiTr service, which stocks and provides sanitary towels for free・ Holding of baby care stations manned by midwives

134All-Japan Customer Service Role-Playing Contest
Mitsui Fudosan Retail Management Co., Ltd. holds an annual national customer service role-playing contest for
representatives who qualify through preliminary competitions at nationwide commercial facilities. The aim is to improvethe value of visits by enhancing the quality of customer service.

Contest participants

11th All-Out CS Contest
In 2019, Mitsui Fudosan Hotel Management Co., Ltd. held its 11th All-Out CS (Customer Satisfaction) Contest. A totalof 20 participants took to the stage and demonstrated the customer service skills they have refined through their daily
work in the form of roleplay, and reaffirmed the pleasure and importance of greeting the customer with a smile.

Contest participants

CASBEE-WO Certification
Nihonbashi Muromachi Mitsui Tower (Chuo-ku, Tokyo), Tokyo Midtown Hibiya (Chiyoda-ku, Tokyo), and the Nihonbashi
Takashimaya Mitsui Building (Chuo-ku, Tokyo) were awarded the S rank, the highest rank in the CASBEE-WO (Wellness
Office) certification system in May 2020, March 2021 and January 2022, respectively. The Nihonbashi Takashimaya Mitsui
Building received a score of 96.6, the highest score among all rental office buildings certified to date (as of the end ofJanuary 2022). All of the properties have registered for self-assessment under CASBEE-Building, and have been certified
as "CASBEE Smart Wellness Office Certified"* based on their high overall environmental performance evaluation.
* A system administered by the Institute for Building Environment and Energy Conservation (IBEC) to certify office initiatives in both tangible andintangible aspects. The system evaluates not only factors with a direct influence on worker health and comfort, but also those contributing toenhanced intellectual productivity as well as features relating to safety and reliability.

135

&wellSince 2019, under the supervision of Kenkokeiei, a non-profit organization, we have been offering the health management
support solution service "&well" to support members of management, those involved in personnel affairs, and other
employees.
This is an initiative that we will use to promote health management, not on our own, but in cooperation with affiliatedcompanies and employees.

&Well Festa health promotion event at the Roofed
Outdoor Plaza (July 2019)

With “for Worker,” our aim is to provide services that make it fun for workers to spend time together and for thatenjoyment to lead to continued employment. The initiative is centered on both in-person events and content-streaming
via mobile app and provides workers with opportunities to consider their health and encourages them to change their
behavior going forward. The “for HR” reporting and consultation service, meanwhile, offers support to help companies
gain accreditation related to health management in a way that meets their varied individual needs, such as by providing
analysis for health check results or analyzing smartphone app usage.
As a result of these initiatives, of the companies we support that were aiming to be selected under the Certified Health& Productivity Management Outstanding Organizations Recognition Program, approximately 30% were for the first time,and 50% or so achieved a better rating. Around 40% of companies were recognized as White 500 enterprises.

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Tools for Communication with Our Customers
The Group offers a variety of communication tools to help build relationships with customers. In terms of content,these tools actively disseminate and exchange information primarily in areas such as housing, and support for improved
customer safety, security and environmental awareness.
Company nameCommunication tools

Mitsui Fudosan Residential Lease Co., Ltd.

Guide Book for Residential Life
A guidebook for customers issued by Mitsui Fudosan Residential Lease summarizes the key
points of life in rental housing. (Japanese version only)⇒ http://mfhl.mitsui-chintai.co.jp/nyukyo/guide/

Mitsui Fudosan Residential Co., Ltd.

31sumai (Mitsui's residence)
A comprehensive information website for housing operated by Mitsui Fudosan Residential.
(Japanese version only)⇒ https://www.31sumai.com/
Everyone's Home
A communication forum where everyone talks about homes. (Japanese version only)⇒ https://www.mfr.co.jp/kurashi/idea_top/

Mitsui Fudosan Group Co., Ltd.

Mitsui Home Co., Ltd.

Tokyo Midtown Management Co., Ltd.

Healthy Forests and the Secrets of Trees
This family-oriented pamphlet showcases the Mitsui Fudosan Group's forest conservation
activities. (Japanese version only)⇒ https://www.mitsuifudosan.co.jp/and_forest/ebook/Environmental and Social Activities (Japanese version only)⇒ http://www.mitsuihome.co.jp/company/kankyo/
Environmental Initiatives (Japanese version only)⇒ https://www.tokyo-midtown.com/jp/about/csr/

Efforts to Improve Employee Satisfaction (ES)We strive to improve the functionality of the facilities used by our employees and create a comfortable working
environment based on the idea that employees working at facilities are valued partners and that providing a comfortableworking environment to increase employee satisfaction (ES) leads to better service to customers and enhances customer
satisfaction (CS).

Major Initiatives
The Mitsui Shopping Park Staff Circle is an initiative to create a comfortable working environment and an enrichingcommunity for store staff working at commercial facilities. This is achieved by introducing Hata Luck®, a store
management application offered by Knowledge Merchant Works Co., Ltd.
We are also providing corporate-led childcare services at four childcare facilities attached to commercial facilities: Mitsui
Outlet Park Kurashiki (Kurashiki City, Okayama), Mitsui Shopping Park LaLaport Nagoya Minato Acres (Minato-ku, Nagoya
City), Mitsui Outlet Park Kisarazu (Kisarazu City, Chiba), and Mitsui Outlet Park Sendai Port (Miyagino-ku, Sendai City).
To improve the ES of employees working at commercial facilities, we are remodeling employee lounges. These cheerful,spacious lounges with a café atmosphere are decorated in a highly individualized style for each facility, and are restfulspaces where employees can spend some relaxing time. Convenience has been enhanced by installing vending machines
for food and convenience store products.

LaLaport TOYOSULAZONA Kawasaki plaza

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Creating New Value and Markets through Neighborhood Creation
The Group seeks to create new value and markets through the creation of neighborhoods with outstanding function
and quality, while in constant pursuit of cutting-edge approaches. As such, we summarize our basic stance toward
neighborhood creation with the following three points. The first is to integrate diverse functions and features, which
involves promoting mixed use (combining applications and functions) and integrating the tangible and intangible aspectsof the Group's operations. The second is to create communities, which entails connecting people who reside or gather
in, or visit a particular area within that region, and the third is to work beyond the simple creation of neighborhoods toaddress specific needs as neighborhoods mature with age year after year through town management.
By establishing a virtuous cycle that comprises these three activity goals, we strive to create new value.

Major Initiatives
Our Efforts at TOKYO MIDTOWN HIBIYA
For further details, see⇒ https://www.mitsuifudosan.co.jp/english/business/development/tokyo_midtown_hibiya/

Our Efforts at Mitsui Fudosan Logistics Park (MFLP)
Connecting Values Together with Customers and Creating New Values Together with Customers-based on thislogistics business statement formulated in 2016, Mitsui Fudosan Logistics Parks (MFLP) are committed to creating value
unbounded by existing categories. To that end, the Company is pursuing a wide range of measures. MFLP locations
are advanced logistics facilities delivering not only enhanced efficiency, but also diverse benefits for the surrounding
community. They create job opportunities at tenant enterprises, provide consulting support for recruiting and retaining
personnel, create jobs for local construction firms, and generate economic activity for businesses located near the parks
and their workforce.
As mixed-use facilities offering added value that suits conditions in surrounding communities, these logistics parks are
implementing the following initiatives.
･ Verification of specifications and inspection methods to prevent water leakage and formulation of measures to prevent
recurrence･ Construction of non-contact ELV buttons is planned for Funabashi I and II to prevent infection and create facilities that
accommodate new ways of working･ Provide workplaces for people with disabilities (art exhibits in restrooms, kitchen cars, and plant management inexterior areas)･ Planning of products that take women and LGBTQ into consideration (multipurpose restrooms, universal design,multilingual support, etc.)･ Touring, training, and hosting local elementary and junior high schools (In FY2021, MFLP Tachikawa-Tachihi started tohost social studies tours)･ Holding community contribution events at MFLP Funabashi and Green Space (direct sales of vegetables directly
delivered from Ota Market, and other events are being considered)

MFLP Funabashi III

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Our Efforts in the Nihonbashi Area
For further details, see⇒ https://www.mitsuifudosan.co.jp/english/business/development/nihonbashi/

Our Efforts to Eliminate Redeliveries
In response to the sharp increase in package delivery volume, which is becoming a social challenge, Mitsui Fudosan
Residential Co., Ltd. and Fulltime System Co., Ltd. have formulated a project to improve efficiency of delivery lockers atcondominiums. The measures are outlined below:
1. Expand the number of delivery lockers to meet current needs through redesign
2. Raise the turnover rate of packages being placed in and removed from lockers
3. Reduce the number of deliveries made to lockers
4. Offer a locker status check service
These four measures will be progressively introduced at selected Mitsui Fudosan Residential Co., Ltd. properties
to enhance delivery locker efficiency, beginning with Park Tower Harumi (Chuo-ku, Tokyo), a large-scale residencecompleted in 2019.

Park Tower Harumi is introducing measures toenhance efficiency

Delivery lockers (concept)

139

Safe and Secure Neighborhood Creation
The Group aims to ensure safety and security by creating disaster-resilient neighborhoods, while working to raiseawareness of disaster countermeasures through routine training, inspection, and education. We go beyond simply
protecting the safety of employees, tenants, and customers, and strive to expand and improve measures for disaster
preparedness in collaboration with local communities.

Disaster Countermeasures System
To ensure safety and security for the employees, tenant companies, and visitors to buildings and facilities managed by
the Group, Mitsui Fudosan is promoting disaster countermeasure drills and lectures, and business continuity planning(BCP). To ensure the safety of our employees, tenants, and customers, we have formulated disaster countermeasure
manuals and BCPs as part of our disaster countermeasures.
The Company maintains a dedicated Disaster Countermeasure Headquarters at the Nihonbashi Muromachi Mitsui Tower(Chuo-ku, Tokyo). Power is generated with gas from a medium-pressure line, which is highly reliable in disasters. This
supplies the power required by the building's BCP, even in emergencies.
In the event of a major earthquake, we have in place measures to set up an emergency headquarters that reports
directly to the president. To ensure that we are better prepared to respond to any disaster, employees in the disaster
center take shifts and staff are on duty even on weekday nights and public holidays; this system means that an
emergency headquarters can be established rapidly. Our disaster response system coordinates with Group companies toascertain the safety of employees and the status of damage to properties. Employees train in lifesaving procedures using
automated external defibrillators (AED). By ensuring that there are certified employees at each worksite, we are working
to raise the resuscitation rate for cardiac arrest.

Disaster Countermeasure Headquarters

AED training

140

Disaster Preparedness and BCP
Smart Energy Project
We are working to solve various social issues such as energy, environmental issues, and disaster prevention throughurban development.
The "Smart Energy Project" has been launched was launched in 2019 starting in Nihonbashi. Through Mitsui Fudosan
TG Smart Energy Co., Ltd., which was jointly established with Tokyo Gas Co., Ltd., an "energy center" centered on alarge-scale cogeneration system fueled by city gas will be installed in a large-scale redevelopment building. This is an
initiative to supply the generated electricity and air conditioning using the heat generated during the generation to theredevelopment and its surroundings.
In normal times, by effectively utilizing the heat generated during power generation, energy efficiency is improved,
contributing to energy conservation and CO2 reduction in the city. In the event of a disaster (wide-area power outage),
power is generated using gas drawn from highly earthquake-resistant pipes, and the supply of electricity and heating
and cooling to the area is continued, improving the BCP performance of the supply building. Contribute to improving thedisaster resistance of the city.
Smart energy projects have started operations in Toyosu in 2020 and Yaesu in August 2022, and we aim to realize asustainable society by reducing the environmental burden and ensuring the safety and security of the city.
Smart Energy Projects by Mitsui Fudosan TG Smart Energy Co., Ltd.
･ Nihonbashi Smart Energy Project (supply started in April 2019)･ Toyosu Smart Energy Project (supply started in April 2020)･ Yaesu Smart Energy Project (supply started in September 2022)

Large gas cogeneration system141

Disaster Countermeasures and BCP at Our Buildings
Since the Great East Japan Earthquake, tenant needs have increased for safety, security and business continuity planning(BCP). In response, Mitsui Fudosan is implementing disaster countermeasures and BCP measures in its existing and newly
built buildings to improve preparedness during normal times and responsiveness during emergencies.

Main Initiatives at Mitsui Offices
3 Establishing a permanent Crisis Management

1 Securing electric power to maintain key functionsfor 72 hours after infrastructure shut-downCenter to act as a control center during disasters(1) Emergency power generation equipment that

(1) A permanent Crisis Management Center thatcan operate for 72 hours made standard in key

enables unified information management during
disasters has been establishedbuildings (also enabling exclusive power supply(2) Fully equipped with multiple emergenc yfor specific areas)(2) Ability to maintain and quickly restore key

communication devices, including new video

functions (elevators, toilets, and ventilation

co m m u n i c a t i o n s y s te m s w i t h d e d i c a te dchannels

systems, etc.) strengthened(3) On-duty monitoring 24 hours a day, 365 days a(3) The introduction of building damage evaluationyear

systems expanded(4) Conduct company-wide collaborative training

2 Strengthening capacity to aid people unable to

3 times/year

return home after a disaster4 Disaster prevention initiatives for tenant companies(1) Deployment of disaster stockpiles enhanced(1) Published "Disaster Preparedness Handbook"･ Provision of a set amount of food and waterand "Guide to Preventing Office Fixtures fromfor people unable to return home
･ Provision of one days' rations of food andFalling or Overturning" to communicate thewater per employee to tenant s free ofCompany's disaster preparedness initiatives

chargeand the importance of measures for preventing
falling and overturning of office fixtures(2) Information dissemination enhanced (digital(2) Develop a website to disseminate disaster

information signage installed)

prevention information (31 Disaster Prevention(3) Development of a manual for receiving peopleWeb)unable to return home in a disaster at receivingbuildings(4) Conducting receiving drills for people unable
to return home in a disaster

Mitsui Fudosan General Disaster Countermeasure Training
The Group carries out disaster countermeasure training based on its disaster countermeasure manuals and business
continuity plan (BCP). In coordination with Group companies and tenants, Company-wide disaster countermeasuretraining for a large-scale earthquake is carried out twice a year, mainly on September 1 (Disaster Prevention Day) andMarch 11.

Joint general disaster countermeasures drill for tenantsof Shinjuku Mitsui Building (Shinjuku-ku, Tokyo)

142

Disaster Countermeasures and BCP at Our Retail Facilities
At retail facilities operated by the Group, we have enhanced practical measures-such as preparing disaster manuals
compatible with all facilities and publicizing customers' guided evacuation procedures as part of our initial disaster
responses-and we pursue disaster countermeasure initiatives at our facilities.

Earthquake Drill Disaster Countermeasure Training: Assembly on FootThe Company and Mitsui Fudosan Retail Management Co., Ltd. carry out company-wide disaster countermeasure training
and assembly on foot training to verify coordination between facilities in the event of a disaster.

Disaster Preparedness Program
At Tokyo Midtown Management Co., Ltd., all employees take part in practical simulation training at the Disaster
Preparedness Training Center located in Tokyo Midtown (Minato-ku, Tokyo). Through the three-day, eight-hour program,the goal is to develop disaster countermeasure skills including combatting fires, administering first aid, and carrying out
rescue operations.

Disaster preparedness lecture

Disaster preparedness training

Quizzes and Workshops to Promote Disaster Awareness Among Local Residents
In cooperation with local governments, fire departments, and other entities, the Company and Mitsui Fudosan RetailManagement Co., Ltd. hold a series of disaster-related informational events, dubbed &EARTH Learn About Disaster
Prevention! -BOSAI Stamp Rally, at retail facilities around the Tokyo metropolitan area, including LaLaports.

Survival kitchen

AED lecture143

Disaster Countermeasures and BCP (MFLP, Logistics Facilities)
At Mitsui Fudosan Logistics Parks (MFLP), which are large-scale logistics facilities managed by the Company, we areengaged in the following efforts to bolster our BCP measures.
･ Seismic Isolation Structure
Placing a layer of special rubber in a building's foundations insulates them from the ground and, in turn, minimizes
damage to buildings during large earthquakes.
･ Emergency Power Generators
We have installed emergency power generators as a backup electricity supply for lighting in common areas and officesections not only during blackouts but in cases of earthquakes and fires.
･ Vending Machines During Disasters
We have installed vending machines set to provide free drinks during disasters.
･ Disaster Stockpiles
We maintain disaster stockpiles at multi-tenant warehouses (sufficient for one to three days depending on theproperty).
･ Remote Monitoring Using Surveillance Cameras
We have installed a surveillance camera system that enables disaster countermeasure headquarters to determine thesituation on the ground.
･ Examination of BCP assuming eruption of Mt. Fuji
･ Conducting disaster drills twice a year and standardizing 72-hour power supply in the event of power outage in newbuildings (common areas)

MFLP Funabashi III

MFLP Ichikawa Shiohama II

Medical Heliport through a Public-Private-Academic PartnershipAs part of a cooperative agreement with Ayase City, we have installed an aluminium-deck heliport on the roof of MFLP
Tomei Ayase, the first of its kind for a domestic logistics facility, and we are working with the city’s fire department andTokai University Hospital’s emergency center. Normally, the heliport can be used for emergency medical care, but in theevent of a disaster, it can be used as an emergency base of operations for support staff and supplies.

Disaster Countermeasures and BCP (Hotels)
To help ensure business continuity in our hotels, we have ensured that all of the elevators we operate are seismicallyresistant. All hotels are equipped with emergency backup generators capable of operating for approximately 24 hours,
and a surveillance system connected with headquarters to monitor conditions at each site.
144

Disaster Countermeasures Together with the Community and Society
In addition to bolstering disaster preparedness in its buildings and facilities, the Group is working to strengthen
preparedness in surrounding communities and neighborhoods. We are engaged in a wide range of activities to raiseawareness of disaster preparedness among residents and those working in the area.

The Community Comes Together to Participate in Nihonbashi Hands-on Disaster Preparedness
Training
With help from Tokyo's Chuo City government, the Company and Nihonbashi Muromachi Area Management carry out
disaster preparedness training in the Nihonbashi Area every March in conjunction with Fire Prevention Campaign Week
in the spring.

Nihonbashi Hands-on Disaster Preparedness Training

Kumamoto Earthquakes Research Report Distributed to Related Government Ministries andAgencies as Well as Universities
Since the Great Hanshin Earthquake of 1995, Mitsui Home Co., Ltd. has carried out inspections of all of its residences
exposed to shaking of intensity 7 or greater. After the Kumamoto earthquakes of 2016, we sent over 1,600 people toinvestigate 1,263 Mitsui Home residences in the affected area, and published the findings in a research report. Of thebuildings investigated, none were completely destroyed, and only 10 were slightly damaged. This result demonstrates
the outstanding seismic resistance of Mitsui Home Co., Ltd.'s 2x4 design and construction methods. We distributed thereport, published in February 2017, to related government ministries and agencies as well as universities, to share thisearthquake-related data.

Improving the Quality of Urban Development
The Group works diligently to ensure the quality management of its buildings as well as every other facet of its business
operations, including products and services, as the foundation for providing safety, security, and comfort to its customers.
We are convinced that the delivery of quality-based security, safety, and comfort is a prerequisite for realizing customer
satisfaction (CS).
Each business draws up its own design guidelines, manuals, etc. on quality management and puts them into practiceto ensure that quality is managed thoroughly. The guidelines, manuals, etc. are also reviewed and revised as needed toreflect customer feedback, problems that have taken place, etc. Reviews of safety-related matters are carried out fromtime to time as well as following a disaster.

145

Principal Guidelines, etc. of Each Business Area
Division

Guidelines, etc.
･ Office Building Design Manual (including BCP design manuals)
Provides direction for planning and design by organizing and combining knowhow on product planning and operational management.

Office Buildings Business･ Office Building Business Standard Operation Flowchart･ Office Building Sign Planning Guidelines･ Office Building Backyard Standards･ Various Construction Quality Management Forms･ CO2 Reduction Measure Explanation Sheet･ Retail Properties Design Request Form
Provides direction for planning and design by organizing and combining know-

Retail Properties Businesshow on product planning and operational management.
･ LaLaport Sign Planning Guidelines･ Tenant Interior Design Manual･ Design Criteria

Housing Business(High-rise Residences, Custom-Built･ Housing Design Guidelines, Specification Documents, Product Specifications, etc.

Detached Residence)
Hotel Business･ Design Guidelines, Specification Documents
Manual concerning the design and construction of Mitsui Garden Hotels.
･ Logistics Facilities Design Request Form

Logistics Business･ Mitsui Fudosan Logistics Parks Sign Planning Guidelines･ Mitsui Fudosan Logistics Parks Facility Design Guidelines

Performance Evaluations by Evaluation Bodies
With the exception of certain properties, Housing Performance Indication System evaluation reports are obtained atboth the design and construction stages for built-for-sale condominiums from a third-party organization registeredwith Japan's Minister of Land, Infrastructure, Transport and Tourism as an objective evaluation of quality management.
In addition, Mitsui Home Co., Ltd.’s custom-built detached residences are also constructed to perform to the highstandards of the Housing Performance Indication System.

Basic Urban Development Design
The Group realizes outstanding function and quality in basic designs for neighborhood creation, while always pursuinginnovation. Our aim is to create new value for the future of the people who live in these neighborhoods.

Our Efforts at Kashiwa-no-ha Smart City
The Group has positioned Kashiwa-no-ha Smart City (Kashiwa City, Chiba) as a cutting-edge model city to respond toa wide range of social challenges, including environmental challenges, a super-aging society, and economic stagnation.
We are promoting the development of next-generation neighborhoods with participation from the public, private, andacademic sectors.

146

Urban Design Center Kashiwa-no-ha (UDCK) Received Minister of Land, Infrastructure,
Transport and Tourism Award
UDCK received the 6th Minister of Land, Infrastructure, Transport and Tourism Award for Urban Design Corporations(Urban Design Leader Support Category). Through public-private-academic collaboration, UDCK formulated projectplans, coordinated designs, conducted post-project space management, and deployed organizations to implement theseand relevant management methods to other regions. In this way, UDCK contributed to energizing projects as a whole bysupporting leaders of neighborhood creation. The award recognized these contributions.

Urban Design and Management through Public-Private-Academic Collaboration Received the
Ishikawa Award
The Urban Design Center Kashiwa-no-ha (UDCK) is a public-private-academic cooperative effort between Kashiwa City,
Mitsui Fudosan, the University of Tokyo, and Chiba University. The center's urban design and management work wasawarded the fiscal 2016 Ishikawa Award bestowed by the City Planning Institute of Japan.

Award recipients

Our Efforts at Mitsui Fudosan Residential
Mitsui Fudosan Residential Co., Ltd.'s built-for-sale condominiums-Park Homes Nakameguro (Meguro-ku, Tokyo), Park
Homes Nakano Honcho The Residence (Nakano-ku, Tokyo), and one other property-received the Japan Institute of
Design Promotion's Good Design award in FY2021. This was the 22nd consecutive year that Mitsui Fudosan ResidentialCo., Ltd. has received this award.

147

Our Efforts at Nihonbashi
The Nihonbashi Revitalization Plan for Preserving and Revitalizing Heritage while Creating the
FutureNihonbashi (Chuo-ku, Tokyo) has flourished as a center of commerce and culture since the Edo period. The Group's overthree-hundred year history is closely associated with this area. To express our love and appreciation for Nihonbashi, we
have begun the Nihonbashi Revitalization Plan with the concept of creating while retaining and reviving, to stimulate thearea and make it even more attractive. We are collaborating with government, private enterprise, and local residents tocreate a new neighborhood that combines tradition and renewal.
Fukutoku Garden was established as a spacious plaza covering more than a thousand square meters among thebuildings of Nihonbashi that are undergoing redevelopment. It is a restful spot which utilizes the nature of Japan toreproduce the history and tradition the area has fostered. The greenery surrounding the adjacent Fukutoku Shrine and its
approach enables visitors to enjoy the beauty of the four seasons.

Fukutoku Garden

Creating Neighborhoods by Creating Roads in Nihonbashi
Nihonbashi in Tokyo flourished as the starting point of the five major highways leading to other parts of Japan. The
Company is following a policy of Building Neighborhoods by Building Roads to avoid unplanned redevelopment in thisarea and ensure coexistence with the culture and tradition that is a product of Nihonbashi, with its historic buildings. Asa first step, we are preserving the appearance of the area by unifying the height of the lower floors of buildings along
Nihonbashi's iconic main street at 31 meters. Furthermore, by developing facilities and creating green spaces suited
to the characteristics of the streets that have been loved in the area from the distant past, we are creating spaces forpeople to gather and enjoy themselves. Edo was known for its extensive network of canals, and by restoring some ofthis network as well, we are using the creation of roads as a point of departure to create the Nihonbashi of the future.

Nihonbashi, Chuo-dori (main street)148

Hotel-related Initiatives
HOTEL THE MITSUI KYOTO (Nakagyo-ku, Kyoto), under the brand concept of "EMBRACING JAPAN'S BEAUTY," offersa space to stay blending traditional Japanese unique beauty found in traditional culture, architecture, craftsmanship,
and food with contemporary design, harmonizing historical and progressive elements. The guestrooms are designed toresemble a traditional tea ceremony room, and has been created using natural materials and craftsmanship. In addition,
the courtyard has a landscape design that respects the spirit of "Niwaya Ichijo".
The Mitsui Garden Hotel Kyoto Kawaramachi Jokyoji (Shimogyo-ku, Kyoto) will be a unique building complex incollaboration with a temple that preserves Kyoto's history and culture. Kyoto is dotted with numerous temples that are
not only tourist attractions but also serve as spiritual places for the people living there. However, some temples havebeen forced to close due to aging buildings, lack of successors, and a decline in the number of priests. As one solution tothese social issues, this project is a new model case of temple revitalization, in which a hotel and a temple development
are integrated.

Entrance of Mitsui Garden Hotel Kyoto Kawaramachi Jokyoji

Entrance to HOTEL THE MITSUI KYOTO"WOODY BEAR", an objet d’art created with the theme of carved wooden bears, a traditional craft of Hokkaido, is used
for the interior design of the Mitsui Garden Hotel Sapporo West (Chuo-ku, Sapporo City). Based on the concept ofcreating new values that interpret tradition in an innovative way, everyday wooden furniture such as chairs and tables are
dismantled and precisely layered to create new contours.

WOODY BEAR

Mitsui Garden Hotel Sapporo West149

Housing-related Initiatives
Wooden condominium MOCXIONIn July 2021, Mitsui Home Co., Ltd. launched "MOCXION," a new brand of wooden condominiums using "wood" which
is a sustainable construction resource that is friendly to people and the environment, as a structural material. The
first property, MOCXION INAGI (Inagi City, Tokyo), was recognized as a large-scale medium-rise wooden construction
project that is highly popular, and was selected as the Ministry of Land, Infrastructure, Transport and Tourism's FY2020
Sustainable Building Leading Project (Leading Type of Wooden Construction). In addition, in 2021, MOCXION received
the Good Design Award for its environmental friendliness.

Mute 45–50: Mitsui Home's High Sound-Insulating Floor System
Mitsui Home Co., Ltd.’s highly sound-insulating floor system Mute 45-50 received an award in the Designs Contributing
to the Safety and Security of Children category at the 11th Kids Design Awards. The system boasts excellent floor soundinsulation and shock absorbing performance-at the highest level in the housing industry-which allows families rearing
children to live freely, without worrying about sounds being transmitted to lower floors. Due to its outstanding shock
absorbing performance, Mute 45-50 can also be used outside homes in nurseries, kindergartens, and medical facilities toreduce impact on the body and improve safety in case of falls.

Housing complex incorporating Mute 45-50

150

City Redevelopment Projects
The Group aims to realize the principles of coexisting in harmony with society, linking diverse values, and achieving asustainable society. Furthermore, our stance toward neighborhood creation encompasses the following three activity
goals.
･ Integration of diverse functions and features by promoting mixed use (combining applications and functions) andintegrating the tangible and intangible aspects of the Group's operations.
･ Creation of communities by connecting regions with the people who reside, gather in, or visit the area.
･ Working beyond the simple creation of neighborhoods to address, through town management, specific needs asneighborhoods mature with age year after year.
In office buildings and all other developments, we take into account access to public transport. With locations neartransport hubs, we offer convenience and safety, and also promote environmentally friendly use of public transportation
at retail facilities, hotels, and other places where many people gather, to contribute to the reduction of CO2 emissions.
Moreover, in all development, we evaluate accessibility for people with disabilities, take measures within the scope
stipulated by laws and regulations, and in some cases make additional efforts.

Main Redevelopment Projects
Tokyo Nihonbashi Area
In collaboration with the local community, the Group strives to energize the Nihonbashi area by strengthening its function
as a life science hub, while making use of the history and culture passed down from the Edo period in neighborhood
creation and events.
For further details, see⇒ https://www.mitsuifudosan.co.jp/english/business/development/nihonbashi/

Kashiwa-no-ha Smart City
The Group has positioned Kashiwa-no-ha Smart City (Kashiwa City, Chiba) as a cutting-edge model city to respond to awide range of social challenges, including environmental challenges, a super-aging society, and economic stagnation. We
are promoting the development of next-generation neighborhoods with participation from the public, private, industrial,
and academic sectors.
For further details, see⇒ https://www.mitsuifudosan.co.jp/english/business/development/kashiwanoha/

TOKYO MIDTOWN HIBIYATOKYO MIDTOWN HIBIYA (Minato-ku, Tokyo), which opened on March 29, 2018, aims to create new future-oriented
experiences and value while carrying on the history and tradition of Hibiya, which first developed as a setting for social
interaction and relaxation in the Meiji era, and played a major role in the modernization of Japan.
For further details, see⇒ https://www.mitsuifudosan.co.jp/english/business/development/tokyo_midtown_hibiya/

151

Create New Industries Through Open Innovation

PolicyIn order to resolve social issues and create new value, the Group is working to promote innovation and create newindustries by collaborating and cooperating with a variety of government bodies and companies inside and outside theGroup.

Creating New Value and Markets
Innovation Hubs: Organizations and Structures to Promote Business Innovation
Against the backdrop of rapid changes in the business environment, companies face a need to transform their
management and their business models through IT technology and digital transformation. Mitsui Fudosan is working tocreate new industries under a structure to create innovation within and outside the Group, through collaboration thatleverages the strengths of five organizations: the Industry-Academia Collaboration Department (established in 2020),
DX Division (established in 2020), Business Innovation Planning Department (established in 2020), Venture Co-creation
Department (established in 2015), and Life Science Innovation Department (established in 2017).

In-House Hub Organizations That Support Innovation■ DX Division

We strengthened the IT Innovation Division and are promoting digital transformation, including transformation of existing
businesses, system enhancement, new business support, and better use of data, through the latest digital technology
and support from digital experts.

■ Industry-Academia Collaboration Department

On the 4th floor of Tokyo Midtown Yaesu, which is being promoted as a member of the Yaesu 2-chome North District
Urban Redevelopment Association in collaboration with the University of Tokyo, the UTokyo Yaesu Academic Commons,a satellite base in the city center opened in October 2022.
The University of Tokyo Yaesu Academic Commons will offer various programs for a wide range of students and humanresource development programs for working adults, providing a new venue for educational research and information
dissemination. In addition, the University of Tokyo and Mitsui Fudosan signed an industry-academia collaborative
creation agreement, and at the Mitsui Fudosan University of Tokyo Lab, which launched in 2020, efforts are focusedon practical research and human resource development using the knowledge of the University of Tokyo and the fields
created by Mitsui Fudosan. The University of Tokyo Yaesu Academic Commons was born out of this initiative.

■ Business Innovation Planning Department

This department engages in new business development with a focus on the real estate tech domain. It also promotes thecreation of new businesses through its MAG!C business proposal system, which solicits a wide range of business ideas
from throughout the company.

■ Life Science Innovation Department

This department constructs ecosystems in the field of life science by building
communities, developing opportunities, and providing funds to support the creation of
innovation. The Life Science Innovation Business Division is also building LINK-J, a platform
for bringing together humans and sharing information for professionals in the field of life
science.
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■ Venture Co-creation Department

This department engages in startup investment, promotion of collaboration, ecosystem
restoration, and support for intrapreneur training in large companies, with the aim ofcreating new industries through open innovation. The Venture Co-creation Department isdeploying 31VENTURES, which provides comprehensive backing for startup growth centeredon community, support, and funding, by utilizing the Group’s wide-ranging domestic
and international business domains. We also launched BASE Q, a nexus for business creation, in TOKYO MIDTOWNHIBIYA. As a place where people seeking to create new value and address social challenges can gather to create new
businesses, BASE Q offers a diverse range of facilities and events where advanced technologies and innovative ideas
intersect.

■ Nihonbashi Urban Planning and Development Department

As one of our initiatives to create industries in the Nihonbashi area, we are forming an
ecosystem for space-related fields, and have established the open platform Cross U toencourage participation in the industry for existing players but also companies from otherindustries. Based on a cooperative agreement with the Japan Aerospace Exploration
Agency (JAXA), our activities aim to create space business opportunities and to promote a
community with Cross U Steering Advisory Committee members and supporters. We also
encourage cooperation between members and innovations. As a competitive base to housethe space industry, we have opened the X-NIHONBASHI BASE facility to provide a venue forspace business activities and are supporting the creation of industry opportunities.

A Framework for Using Digital to Promote the Creation of New Industries The
MAG!C Business Proposal System
To activate Mitsui’s spirit of entrepreneurship and its DNA of sparking innovation while promoting the creation of new
businesses by drawing out the ideas of individual employees, we enhanced our business proposal system in terms ofbudget, personnel, and incentives to create MAG!C. This system launched in FY 2018.

Business Incubation Program
Under mentoring by multiple outside partners, this incubation program provides powerful support for the development
and commercialization of business seeds that have passed the final screening of the MAG!C business proposal system.

WARP Studio Open Innovation Hub
In the Yaesu area of Chuo-ku, Tokyo, we established the WARP Studio open laboratory under the concept of accelerating
creative ideas by getting away from the head office. The studio is used by several different project teams, including thoseof new business projects created under the MAG!C business proposal system and DX projects that combine Group
companies and partner venture companies. Here we work to create an open and creative atmosphere and to accelerateinnovation, allowing mixed internal and external teams to function effectively.

WARP Studio open innovation hub

153Governance
Refer to the ESG Data at the end of this report for the following
governance-related data.

Compliance● Number of Compliance Violations Handled by the Risk
Management Special Committee● Tax Payments by Country/Region

Corruption Prevention● Corruption-related Fines, Surcharges, and Arbitrations

Corporate Governance● Number of Directors and Auditors● Reason for Selection as Outside Directors and Outside Corporate
Auditors● Compensation by Title, Amount of Compensation by Type andNumber of Applicable Executives● Compensation of Executives Exceeding ¥100 Million

154

Compliance

Compliance
Basic Policy
In accordance with the Mitsui Fudosan Group Compliance Policies, we regard the practice of compliance as one of ourhighest priorities for Group management, and implement fair and highly transparent corporate activities in accordancewith corporate ethics, in addition to observing laws and regulations as well as social norms.

Mitsui Fudosan Group Compliance Policy (established April 28, 2005; revised August 1, 2018)
Introduction
We have engaged in fair business activities based on the highest corporate ethics and worked diligently togarner trust and build a robust brand.
However, these tireless efforts to build a robust brand strength can be lost in an instant by the erroneous
actions of a single individual. As a result, proper decision-making and behavior will continue to increase inimportance.
To accomplish this, we regard the practice of compliance as one of our highest priorities for Group management
and implement fair and highly transparent corporate activities in accordance with corporate ethics, in addition
to observing laws and regulations as well as social norms.
Definition of Compliance
Ensuring legitimate and fair corporate activities by observing laws, regulations, and internal rules, and giving
proper consideration to norms of ordinary society, and corporate ethics.
Aims for Compliance
Honest Conduct
1. We shall aim not simply to comply with laws and regulations, but rather recognize our company's social
responsibility and be a good corporate citizen.
2. We shall ensure mutual respect of human rights, personalities, and values.
3. Even if news is bad, it shall be promptly reported to top management, and we shall strive to respondproperly.
4. In carrying out work, the top priority shall be placed on the safety of customers and the workplaceenvironment.
Fair Conduct
1. We shall carry out corporate activities with fairness and a high degree of transparency, in accordance withcorporate ethics.
2. We shall properly disclose information to society and ensure the transparency and soundness of ourmanagement.
3. We shall take an uncompromising stance toward antisocial organizations and reject any relationshipwhatsoever.
4. We shall not engage in wrongful discrimination based on nationality, social status, race, creed, gender, age,disability, sexual orientation, or gender identity (i.e., LGBT).

155

Abiding by Rules
1. We shall abide by all relevant laws, regulations, and internal rules, and give proper consideration to social
norms and corporate ethics.
2. We shall carefully protect and manage personal information and other information requiring confidentiality.
3. We shall not exchange gifts or provide entertainment to obtain illegitimate advantages.
4. We shall not pursue personal gain by using undisclosed or internal information.
5. We shall avoid conduct that may negatively affect our company's reputation or operations even outside ofworking hours.
When Unable to Decide, Ask Yourself the Following…
1. Is my conduct honest?
2. Is my conduct fair?
3. Is it conduct you can explain to your family, friends, and the society at large without being ashamed?

Compliance Structure
The officer in charge of general administration assumes overall responsibility for compliance, receiving reports from theCompliance Management Department and others. Matters deemed to be of particular importance are reported to or
submitted for review by the Board of Directors or the Executive Management Committee. Said officer is also responsible
for formulating a compliance-related action plan each fiscal year, including the enactment, revision or repeal of company
rules; training in such areas as laws and regulations as well as company rules; and the monitoring of, and issuance ofreports regarding, compliance with same. Said officer is also responsible for overseeing compliance activities basedon this plan. Group companies are required to formulate and implement compliance promotion plans, and these arereported upon by the officer in charge of general administration and verified by the Company at fiscal year end.

156

Compliance Training
Mitsui Fudosan provides compliance training to new employees, newly appointed executive managers and directors,
including officers, with the aim of improving compliance awareness. It also implements e-learning-based training for all
corporate officers.
Main Training and Awareness-Raising Initiatives (Company)
Initiative
New employee training

TargetNew employees

Content(April) *Implemented at the beginning of every month for dispatch andcontract employees

Newly appointed executive Newly appointed executive Study sessions on preventing bribery, restrictions on dealing with Antisocial
manager training

managers

Officer compliance training

managing officers, full-time

Forces, information security, preventing insider trading, etc. (March)

Directors, executive

training

Overseas compliancetraining

Overseas Business Division, Explanation of compliance violation case studies including cases involving
employees assigned tooverseas companies, education regarding the importance of preventing

overseas subsidiaries

bribery, etc. (December)

Training for local staff atLocal staff at overseas

Training on bribery prevention, personal information protection, and on theoverseas subsidiaries

subsidiaries

internal whistle-blower system, etc. (October, February)Companywide compliance

All staff, including managing

training (e-learning)

officers

Internal bulletins
Awareness-(June, November)

All directors and

Mitsui Fudosan Group Compliance Policies shared through internal

employees

bulletins and handbooks
Information issued on such topics as eliminating contacts with Antisocial

Raising
Initiatives(September)corporate auditors, etc.

Internal

Compliance news

All employees

Forces, awareness of the dangers posed by ransomware, and others
requiring the exercise of caution during the course of business(April, July, October, February)

Risk Management
Risk Management System
The Executive Management Committee, which is chaired by the President and Chief Executive Officer, supervises overallrisk management for the Group. Under the supervision of the Executive Management Committee, the Strategy Planning
Special Committee manages business risk, and the Risk Management Special Committee manages operational risk.
The director in charge of risk management acts as the person in charge of legal affairs and compliance, the Chief Risk
Officer, the Chief Legal Affairs Officer, and the Chief Officer for Compliance, and is responsible for Group risk management
as chair of the Risk Management Special Committee.
The director in charge of risk management periodically reports on risk management to the Board of Directors and thePresident and Chief Executive Officer.
The director in charge of risk management periodically revises risk management processes and reports on progress to
the Board of Directors. Climate change and large-scale natural disasters are seen as particularly important management
issues. As such, revisions to the Group’s response to climate change related risk are made once a year and those forlarge-scale natural disaster related risks three times a year.
The director in charge of risk management is not a member of the Board of Corporate Auditors and never takes the roleof chair of the Board of Corporate Auditors. Further, the Risk Management Special Committee, of which the director in
charge of risk management is chair, operates independently from the Board of Corporate Auditors.

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Risk Management System

Major Risks■ Business risks (major risks related to business advancement and profit )・Business environment risks

General changes to the economic environment (exchange rate fluctuations, interest rate rises, consequences ofsuper-aging society, etc.)
Changes to customer needs (lifestyle changes resulting from COVID-19, etc.)
・Market interest rate risks
Rising fund procurement costs due to interest rate rises
Worsening business performance due to interest rate rises (lower prices for home sales, growing expectation among
investors for greater returns)
・Exchange rate fluctuation risks
Changes to cost prices due to the cost of imports
Impact on profit and loss statements and balance sheets for international business
Lower lease income due to impact on business performance of tenant companies
・Climate-related risks
Large-scale changes to the climate
Changes to needs that consider climate-related risk
・Geopolitical risks
Impact on relevant countries or areas
Impact of supply chain disruption, etc.
・Infectious disease risks
Business restrictions resulting from COVID-19
Lessening of, or changes to, customer demand due to COVID-19
・Competition in the real estate industry risks
Competition with other comparable companies in each industry
Disruptive innovation
・Lease income risks
Lower lease income due to tenants cancelling their contracts or paying less rent, breaches of contracts, or tenants
going bankrupt, etc.
・Asset valuation risks
Drop in value of assets due to lower housing demand or growing expectation among investors for greater returns,
etc.
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・Cost price change risks
Changes to cost of construction work, energy costs, personnel expenses, etc.
・Fund procurement risks
Rising fund procurement costs due to changes in attitude to loans at financial institutions, etc.
・Rising market interest rates
・Financial market disruption
・Drop in financial rating, etc.
・Real estate development risks
Higher costs or delays resulting from issues during development (weather, disasters, discovery of issues underground,soil contamination, etc.)
・International business risks
Business environment in individual countries (inflation, exchange rates, internal conflict/disputes, geopolitical risks
affecting relevant countries or areas, etc.)
Financial problems, etc., at local partner companies
・Property portfolio site risks
Events that cause damage to the area’s where our assets are concentrated, such as natural disasters (earthquakes,
typhoons, etc.), manmade disasters or terrorists (missile attack, etc.)
・Legal and policy change risks
Changes to business structure or fund procurement methods due to changes to laws, regulations, etc.
・Diverse human resource recruitment risks
Inability to train or employ sufficient personnel to adapt to changes to the business environment or in customer
needs■ Administrative risks (operational risks)・Damage risks

Natural disasters (earthquakes, wind- or water-related damage, etc.)
Man-made disasters (war, terrorist attack, etc.)
・System risks
System failure or leaking of information due to cyberattack, etc.
I Information systems
II Control systems
・Compliance risks
Breach of laws and regulations, company regulations, social norms, etc.
I Legal breaches as part of operations
II Legal breaches by employees in pursuit of private profit
・Quality risks
Problems arising from the quality of products, services, or operations
I Facilities/real estate
II Management operations
III Other operations■ Supervision on Code of Conduct and ESG Risks

The Board of Directors also monitors the conduct of the Company's business activities as well as environmental, social,and governance (ESG) risk.

159

Response to climate-related issues
The Company examines, annually in principle; whenever there are significant changes in regulations, the legal system,
technology, or market trends; and whether or not there have been significant changes to risks specified in business plans,or any short-term risks that must be dealt with. As an example relating to an existing regulation, we have determined thatthe possibility of the scope of greenhouse gases set forth in the Tokyo Metropolitan Environmental Security Ordinancebeing expanded, and/or of rules relating to permitted emission levels being tightened, represent an important risk.
Also, buildings including medium-scale structures with a floor area of 300 m2 or more were required to meet the energy
efficiency standards set forth in the Building Energy Efficiency Act starting from April 2021. In yet another example, wehave considered the degree of impact that climate change may have on our overall business activities, and we recognizethat the amount of CO2 emissions we generate in the course of our activities is a priority issue. Since electric powerrelated emissions account for the largest proportion of total CO2 emissions, we are a member of the RE100 initiative,
among other efforts.

Responding to Large-scale Natural Disasters
In addition to creating disaster-resilient neighborhoods, the Group aims to ensure the safety and security of employees,
tenants, and customers at facilities it operates by working on business continuity plan initiatives, such as by runningdisaster countermeasure training and first-aid training.
In principle, we hold Groupwide disaster countermeasure training three times a year, which imagines different scenarios
where a large-scale earthquake has occurred. We carry out these drills to make sure we can respond smoothly to avariety of situations.
(Theoretical scenarios)
・An earthquake occurs directly below Tokyo during working hours
・An earthquake occurs directly below Tokyo outside working hours
・A major earthquake occurs outside Tokyo near branch offices

Scale of, and degree of damage caused by, hypothetical earthquake under Tokyo for the drills(In line with Central Disaster Management Council expectations)

1. Scale
Maximum 7 on the JMA Seismic Intensity Scale in some areas, centered on the southern part of the city
2. Damage(1) Infrastructure: blackouts, water cuts, gas supplies can only be supplied through intermediate-pressurepipes(2) Public transport: all lines closed in the metropolitan area
(3) Communications: general lines down, the internet still usable(For more details, please see the section on Safe and Secure Neighborhood Creation on the Providing Value throughCustomer Satisfaction and Creation of Neighborhoods page)⇒ https://www.mitsuifudosan.co.jp/esg_csr/society/07.html#p06

160

Strategy Planning Special Committee
The goal of the Strategy Planning Special Committee is to manage business risk by reviewing management plans andspecific management issues, and managing the execution of responses to such issues.
The Strategy Planning Special Committee provides the following functions for Mitsui Fudosan and the Mitsui FudosanGroup.
1. Formulation and review of Group strategies
2. Medium- to long-term business planning and fiscal-year planning, prior review, and coordination
3. Review of policy responses to specific management issues, and promotion and management of such policies
4. Planning, proposal formulation, and review of organizational structures, staffing, etc.
5. Supervision of business risk management for Mitsui Fudosan and the Mitsui Fudosan Group
6. Review of other important matters

Risk Management Special Committee
To manage business risk, the Risk Management Special Committee formulates risk management policies and plans,
identifies and assesses risks, formulates response measures, and issues instructions.
Based on ISO 31000, the international standard on risk management, the Risk Management Special Committee
implements a PDCA cycle to comprehensively manage administrative and operational risk, and it also precisely engages
in preventative risk management while standing at the ready to respond in a crisis. When a compliance violation occurs,
the Risk Management Special Committee orders an investigation and response, and monitors the situation.
The Risk Management Special Committee fulfills the following functions for Mitsui Fudosan and its Group companies.
1. Formulating risk management policies and plans
2. Improving risk management-related organizations, and clarifying roles and responsibilities
3. Understanding and assessing risks that require management, formulating response measures, and issuing instruction
4. Understanding and assessing the status of risk management, formulating improvement measures, and issuing
instruction
5. Deliberating response measures and issuing instruction in cases of business risk arising from emergency incidents,
accidents, etc.
The Risk Management Special Committee meets, as a rule, on a once-a-month basis, to identify and understand risk
issues, and then review and propose preventative and response measures. The committee conveys information to theentire company and the Mitsui Fudosan Group as necessary.

Main Agenda Items of the Risk Management Special Committee
Report on condition of risk (incidents, accidents, etc.)
Report on legal issues and compliance
Plan and report on J-SOX compliance
Plan and report on protection of personal information
Inspect and report on information systems security

161

Response to Compliance Violations
When the Compliance Management Department determines that a particular matter involves a compliance problem,
it conducts an investigation in collaboration with the relevant Company department. If necessary, appropriate action
is taken with respect to the individuals who are out of compliance, as well as those individuals’ departments, after
deliberation by the Risk Management Special Committee.

Establishment of an Internal Consultation Service
The Company has established internal contact points for consultation. These can be used by regular employees, andanyone engaged in work for our company based on an individual labor contract (contract employee), temporary transfer
agreement, worker dispatch contract, part-time contract, or other agreement. Two contact points, internal and external,
have been established, and workers can consult with either. The external contact point is provided at a law office, and it
accepts consultations from a neutral standpoint,*1 notifies the Company of the consultation content, and encourages a
response.
Topics for consultation include: wrongful conduct violating laws, regulations, internal rules, general social norms, or
corporate ethics, sexual harassment, abuse of power, other forms of harassment, employment problems, and issues
with the workplace environment.*2 The privacy of those who engage in consultation is protected, and there is never any
retaliatory action or disadvantageous treatment due to such consultations in terms of personnel decisions. Consultations
can be conducted under a real name, or anonymously.*3*1: Representatives of the law office cannot provide legal opinions as lawyers, or take a stance protecting the consulting person.
*2: Simple expressions of opinion, dissatisfaction with personnel decisions, defamation of others, and similar issues cannot be the subject ofconsultation.
*3: To achieve early discovery and response to compliance problems-the original purpose of the system-the consulting employee's standpoint andother information are confirmed even in the case of an anonymous consultation.

Our Commitment to Auditors
Mitsui Fudosan has established the Nomination Advisory Committee to enhance transparency of the nomination process
for corporate auditors.
Auditors conduct audits of business execution by directors while coordinating with the Audit Department, which serves
as the internal audit department of the Company, as well as certified public accountants. To ensure proper operation of
the auditing function, we rotate our auditors in an appropriate way. The Audit Department periodically conducts audits
to review observance of the Code of Conduct and Code of Ethics, and identify any compliance violations.

Complying with the Antimonopoly Act
The Group closely monitors its purchases from vendors for conformance with its Group Compliance Policies, and makes
efforts to strictly comply with the Antimonopoly Act.
The Company will comply with all relevant laws, such as the Antimonopoly Act, and will avoid any conduct that could
result in unfair transactions or unjust competition. We will engage with business connections sincerely as an equal
partner and handle the procurement of goods and services based on fair standards.

162

Responding to Antisocial Forces
The Mitsui Fudosan Group maintains a steadfast position of strictly avoiding any and all relationships with anti-social
forces that threaten the order and safety of civil society. Having formulated internal regulations including The Mitsui
Fudosan Group Compliance Policy, Compliance Rules and Compliance Procedures, the Company strives to clarify basic
views and procedures related to the elimination of antisocial forces while raising internal awareness.
Each division of the Company also investigates and confirms that a transaction partner is not involved in organized crime
before the transaction begins. The Company regularly cooperates with the police, the National Center for Removalof Criminal Organizations, lawyers, and other outside expert organizations, and in the unlikely event the Company
faces unwarranted demands or violent behavior from such organizations, the necessary action will be taken, including
contacting the relevant police department and taking legal measures.

Information Security Management System
The Company appoints the chairperson of the Risk Management Special Committee as a general director of information
security management. Under the general director’s supervision, a chief administrator, manager, group leader and otherleadership are assigned at each organizational level to manage information security risk.

Personal Information Protection Initiatives
To appropriately utilize and manage personal information, in line with the Information Security Management System,
the Group implements and manages its Personal Information Protection Policy in accordance with applicable laws andregulations.
Moreover, we strive to reinforce the system and cultivate awareness through the following efforts.
・Formulation and application of Guidelines for Personal Information Protection
・Training through e-learning
・Formulation of personal information protection plan・Thorough management of subcontractors
・Enhancing personal information protection by Group companies

Tax Transparency
PolicyBased on its compliance policies, the Group pays an appropriate level of tax and through its fair and highly transparent
corporate activities, contributes to co-prosperity in harmony with society and the realization of a sustainable society.
As a global entity, the Group pays attention to international organizations and trends-such as the OECD and the BEPS
Project-and has constructed a suitable tax affairs framework for the Group. Maintaining this system, the Group will fulfill
its social obligation in regard to taxation.

Compliance with Tax Laws
The Group conducts its corporate activities in strict compliance with all applicable tax laws and in the spirit oftaxation, as well as guidelines from international organizations such as the OECD, the EU, the UN, etc., and takes into
consideration legislative intent. Furthermore, it pays all prescribed taxes by their designated due dates in accordancewith their country of origin.

163

Transfer Pricing
With regard to dealings among its international partners, the Group will take into consideration the arm’s length priceand appropriately distribute earnings based on the degree to which each party contributed, as well as on analysis of thefunctions, assets, and risks of the relevant subsidiary and country.

Eliminating Double Taxation
In order to avoid tax on the same economic gains being applied across numerous countries, the Group will implement
measures, including adhering to the tax treaties of those countries in which it is conducting its business.

Securing Transparency
The Group will disclose its policies regarding taxes, and take care to provide easy-to-understand explanations andmaintain a high level of transparency for each respective country’s taxation authorities.

Relationships with Taxation Authorities
The Group will obey each respective country’s tax administration and tax collection procedures. Further, it will maintainhealthy and normal relations with relevant taxation authorities, and will not offer any inappropriate benefits or provisions.
Should the Group and taxation authorities come into conflict, we will proactively discuss the matter with the authorities
to find a resolution and prevent reoccurrences through appropriate improvement measures concerning the issue.

Tax Planning
In order to maximize value for shareholders, the Group will implement appropriate and fair tax minimization measures.
It will not, however, conduct any inappropriate tax planning, including measures such as applying beneficial taxation
systems that disregard the legislative intent behind laws and regulations. Nor will it deliberately avoid taxes in ways thatare not in line with its business goals or actual conditions, or by utilizing tax havens.

Governance System
While the Board of Directors bears oversight responsibility for tax-related risks, under the Executive Management
Committee, which supervises overall risk management for the Group, the Risk Management Special Committee
manages business risk, including tax affairs. The Managing Director who acts as the person in charge of legal affairs andcompliance, the Chief Risk Officer, the Chief Legal Affairs Officer, and the Chief Officer for Compliance is the person withoverall responsibility for tax affairs, belongs to the Risk Management Special Committee, and periodically reports on risk
management to the Board of Directors. As part of our risk management, the Audit Department periodically conducts
audits to review observance with the Code of Conduct and Code of Ethics. When the Audit Department identifies
any compliance violations, it reports the results to the Board of Corporate Auditors. For more details on the specificframework and other aspects of the system, please see the Risk Management section.

164

Corruption Prevention

Policy to Prevent Bribery and Corruption
The Group positions compliance as a management issue of the highest priority, and in addition to ensuring compliancewith laws, regulations, and social norms, it forbids any kind of corruption, and executes corporate activities that are fairand highly transparent, in line with corporate ethics. To that end, the Group makes concerted efforts to maintain andimprove its compliance structure.
The Mitsui Fudosan Group Compliance Policies sets forth the relevant compliance definitions and conduct guidelines, aswell as summarizing the structure and procedures needed to achieve its basic policies as its Compliance Rules, with a
specific code of ethics codified as the Compliance Procedures.
Moreover, the Group has set conduct guidelines for areas such as eliminating organized crime, preventing money
laundering, eliminating unfair transactions, preventing insider trading, prohibiting gifts and entertainment, and forbidding
contributions to politicians and political organizations. In this way, it makes consistent efforts to ensure compliance andprevent bribery and corruption of any kind.
Furthermore, the Group formulated the Sustainable Procurement Standards in 2018, and is working to completely
eliminate bribery and other forms of corruption throughout the entire supply chain.

Mitsui Fudosan Group Compliance Policy (Excerpt)
We have engaged in fair business activities based on the highest corporate ethics and worked diligently togarner trust and build a robust brand.
However, these tireless efforts to build a robust brand strength can be lost in an instant by the erroneous
actions of a single individual. As a result, proper decision-making and behavior will continue to increase inimportance.
To accomplish this, we regard the practice of compliance as one of our highest priorities for Group management
and implement fair and highly transparent corporate activities in accordance with corporate ethics, in addition
to observing laws and regulations as well as social norms.
⇒ Click here to see the Mitsui Fudosan Group Compliance Policy in their entirety
https://www.mitsuifudosan.co.jp/esg_csr/governance/01.html

Mitsui Fudosan Group Sustainable Procurement Standards (Excerpt)
5.1 Prevention of bribery and other forms of corruption
Companies shall not engage in bribery, corruption, extortion, or embezzlement of any kind. In addition,companies shall not offer or condone promises, offers or permits as a means of obtaining bribes or other illicit
or inappropriate benefits.
⇒ Click here to see the Mitsui Fudosan Group Sustainable Procurement Standards in their entirety
https://www.mitsuifudosan.co.jp/esg_csr/society/04.html

165

Enhanced Compliance
The employee handbook includes a clear description of Group Compliance Policies. We also strengthen complianceand ensure broad dissemination of information by issuing Compliance news to all employees when appropriate. This
news covers topics specified in the Compliance Manual (based on the Mitsui Fudosan Group Compliance Policy) such as
eliminating organized crime, preventing money laundering, eliminating unfair transactions (abuse of superior bargaining
position), preventing insider trading, prohibiting gifts and entertainment, and duty of confidentiality regarding company
information.

Group Compliance Policies recorded in an employee handbook

Prohibiting Bribery and Handling of Gifts and Entertainment
Mitsui Fudosan has prohibited the illicit provision of benefits to public officials and other individuals in similar positions.
Also, in dealings with business connections and affiliates, etc., a rule has been established preventing the giving or
receiving of excessive gifts, entertainment, and the like. Also, the Company has established a structure and rules to befollowed to prevent bribery and has formulated and is implementing Regulations for Preventing Bribery with the aim ofpreventing such conduct before it occurs.

Our Efforts to Assess the Risk of, and Prevent, Corruption(1) Compliance promotion plans and training
In order to promote compliance, we formulate a compliance promotion plan each fiscal year as a concrete plan ofaction for compliance. Based on the plan, we carry out training on issues such as eliminating organized crime, preventing
money laundering, eliminating unfair transactions (abuse of superior bargaining position), preventing insider trading, andprohibiting gifts and entertainment, as well as preventing any other kind of corruption.
(2) Policy on high-risk fields
We comprehensively assess every kind of corruption risk and endeavor to control it when selecting new domestic andinternational business partners and entering new regions and business areas. We ask our prospective business partners
to fill out a basic check sheet and a compliance check sheet, and also have our legal compliance-related departments
confirm the absence of any violations. In this way, we carry out a comprehensive examination in areas designatedor assessed to be high risk, such as preventing bribery, eliminating organized crime, preventing money laundering,eliminating unfair transactions, preventing insider trading, and forbidding contribution to politicians and politicalorganizations.
In 2021, to assess the risk of corruption, we began conducting surveys based on the Sustainable Procurement Standards
for suppliers and contractors to ascertain the situation at each company, asking about designated high-risk issues suchas preventing bribery and other forms of corruption, avoiding interactions with organized criminal groups, and promoting
fair business activities.
(3) Internal consultation service
We have established an internal whistle-blower system that allows for consultations to be made anonymously, and in
this way, we strive to prevent bribery or any other kind of corruption.

166

(4) Supervision and improvement processes
Businesses deemed to be at high risk of corruption are monitored closely by the Executive Management Committee
and the Strategy Planning Special Committee, and they decide on an appropriate response in each case. The Board of
Directors closely monitors the Corruption Prevention Policy. The Risk Management Special Committee has oversight ofanti-corruption policy, including such areas as eliminating organized crime, preventing money laundering, eliminating
unfair transactions, preventing insider trading, prohibiting gifts and entertainment, and forbidding contribution topoliticians and political organizations. It regularly reports to the Board of Directors.

Political Donations
Mitsui Fudosan does not provide donations for political activities to any parties other than official political parties
and political fund-raising organizations. Furthermore, support for activities by political organizations is conducted
appropriately in accordance with the Political Funds Control Law, laws and regulations connected to the Public Offices
Election Law, and other relevant laws and regulations.
Fiscal 2015-2022･ One donation each year, to The People's Political Association. Amount: ¥20 million

167

Corporate GovernanceCorporate Governance System
The Group aims to create and maintain optimal corporate governance from the standpoint of improving the soundness,transparency and efficiency of management in order to gain the trust of its stakeholders.
Mitsui Fudosan has both a Board of Directors and a Board of Corporate Auditors. To ensure transparency with respect todirector compensation and appointments of directors and auditors, we maintain a Compensation Advisory Committee
and a Nomination Advisory Committee. In addition, we have adopted a corporate officer system to enhance thesoundness and efficiency of management by separating and strengthening management and executive functions. Mitsui
Fudosan also invites and appoints outside directors in order to strengthen the oversight functions of the directors andenhance management transparency.
In addition, auditors conduct audits in a bid to evaluate the status of business execution by directors while coordinatingwith the Corporate Auditor’s Department, which serves as the internal audit department of the Company, as well as
certified public accountants. Moreover, steps have been taken to put in place the Mitsui Fudosan Group Compliance
Policy as well as a structure that will ensure that Group directors and employees engage in business activities in an
appropriate manner.
Corporate Governance Structure168

(1) Board of Directors
The Board of Directors, headed by Chairman Masanobu Komoda and comprising twelve members, including eightinternal directors (Masanobu Komoda, Takashi Ueda, Takashi Yamamoto, Takayuki Miki, Yoshihiro Hirokawa. Shingo
Suzuki, Makoto Tokuda, and Hisashi Osawa) and four outside directors (Tsunehiro Nakayama, Shinichiro Ito, Eriko Kawai,
and Mami Indo), decides on issues material to Mitsui Fudosan and monitors the execution of business by managing
directors.
Matters concerning the Board of Directors are as follows, set in accordance with the Company’s Articles of Incorporationand company rules such as those regarding the Board of Directors.
1. Role of the Board of Directors
The Board of Directors shall determine matters deemed vital to the Company, and oversee execution of duties by the
directors.
2. Composition
The Board of Directors shall comprise no more than 15 directors.
3. Term of office for directors
The term of office for directors shall be from selection until the close of the General Shareholders' Meeting for the fiscal
year ending within two years of selection.
4. Chairperson
The Board of Directors shall be chaired by the Chairman of the Board.
5. Decision-making process
Decisions made at the Board of Directors will require more than half of the directors to be in attendance, and willneed the support of more than half of those in attendance.
6. Matters to be determined
The following matters shall be decided and reported.
(1) Matters related to shareholders’ meetings(2) Matters related to directors･ Preliminary selection of director candidates･ The appointment and dismissal of representative directors･ The appointment and dismissal of executive directors･ Compensation, bonuses, and restricted stock compensation for directors･ Other important matters(3) Matters related to the Company’s structure(4) Important matters related to compliance, etc.
･ Formulating a compliance promotion plan for the fiscal year
･ Reporting on the results of compliance promotion activities implemented during the fiscal year
･ Formulating an audit plan for the fiscal year
･ Reporting on audit activities implemented during the fiscal year
･ Evaluating internal controls concerning financial reporting during the fiscal year and formulating audit-related
policy (J-SOX activities)(5) Important matters related to personnel･ The appointment and dismissal of corporate officers and executive corporate officers･ The appointment and dismissal of key employees･ Compensation and bonuses for corporate officers, etc.
(6) Important matters related to finance and assets(7) Other matters that are especially important in regard to managing the Company or executing duties･Single-fiscal-year plans･ESG plans･Risk management reports
・Studies related to shares held as part of cross-shareholding policies
・Other important matters

169【Director nomination policy】
Taking into account Company and Group management philosophies and strategies, candidates deemed suitable to be
directors are nominated, after overall consideration of diversity-including personal qualifications, capabilities, views, andgender. At present, four of the seventeen directors and auditors are women (23.5%), and in the future we will work toensure even greater diversity for the Board of Directors.
Managing Directors' Expertise, Experience (skills matrix), and Attendance at Board of Directors Meetings *1
Attendanceat Board of
Directors
Meetings(FY2022)

Areas of expertise and experience
Corporate
management

Treasury,
accounting
and financeComplianceand riskmanagement

GlobalTechnology
andinnovation

ESG andSustainability

Urban development(real estatedevelopment, etc.)

Masanobu
KomodaChairman of
the Board

12 ／ 12

●

●

●

●

●

●

●

Takashi
Ueda

President andChief Executive
Officer

12 ／ 12

●

●

●

●

●

●

●

Takashi
Yamamoto

Managing
Director andExecutive Vice
President

12 ／ 12

●

●

●

●

●

Takayuki
MikiManaging
Director*2

10 ／ 12●●●

Yoshihiro
Hirokawa

Managing
Director

Newly
appointed●●●

ShingoSuzukiManaging
Director

Newly
appointed●●●

MakotoTokudaManaging
Director

Newly
appointed●●

Hisashi
Osawa

Managing
Director

Newly
appointed●●●

Tsunehiro
Nakayama

OutsideDirector

12 ／ 12

●

●

●

●

Shinichiro
Ito

OutsideDirector

12 ／ 12

●

●

●

●

●

Eriko
Kawai

OutsideDirector

12 ／ 12

●

●

●

●

●

Mami Indo

OutsideDirector

Newly
appointed

●

●

●

●
●

●
●

●

●

●

*1 The above list does not contain all of the areas of expertise and experience of each managing director.
*2 New appointment effective June 29, 2022.

(2) Compensation Advisory Committee
The Compensation Advisory Committee, headed by independent outside director Tsunehiro Nakayama as Chairman andcomprising six members, including four independent outside directors (Tsunehiro Nakayama, Shinichiro Ito, Eriko Kawai,
and Mami Indo), President and Chief Executive Officer Takashi Ueda, and one internal director (Makoto Tokuda), meetson matters pertaining to the compensation of managing directors. The committee met three times in fiscal 2022 and allcommittee members were in attendance on each occasion.

(3) Nomination Advisory Committee
The Nomination Advisory Committee, headed by independent outside director Tsunehiro Nakayama as Chairman andcomprising six members, including four independent outside directors (Tsunehiro Nakayama, Shinichiro Ito, Eriko Kawai,
and Mami Indo), President and Chief Executive Officer Takashi Ueda, and one internal director (Makoto Tokuda), meetson matters pertaining to the nomination of managing directors and corporate auditors, as well as the appointment anddismissal of managers. The committee met twice in fiscal 2022 and all committee members were in attendance on eachoccasion.

170

(4) Board of Corporate Auditors/Corporate Auditor's Department
The Board of Corporate Auditors, headed by senior corporate auditor Hiroyuki Ishigami, comprises two internal auditors(Hiroyuki Ishigami and Wataru Hamamoto) and three outside auditors (Yukimi Ozeki, Minoru Nakazato, and Mayo Mita),
for a total of five auditors, and formulates auditing policies and determines assignments. It also receives reports anddiscusses material items on audits conducted according to these policies and assignments. Note that the Corporate
Auditor’s Department has been established specifically to assist the corporate auditors with their work, and there are
two dedicated employees. See “Governance-related Data” for details on the number of meetings held annually and theattendance status.
⇒ https://www.mitsuifudosan.co.jp/english/esg_csr/esg_data/governance/(5) Corporate Officer System
Mitsui Fudosan has introduced a corporate officer system with the aim of creating a business execution framework thatbest suits its operating environment and activities. By promoting the separation and reinforcement of the management
and executive functions, a role that was previously undertaken by company directors, the system enhances managementsoundness and efficiency. In addition, seeking to further reinforce the management of the Mitsui Fudosan Group, we
have expanded the range of managers across the Group and introduced a Group corporate officer system, under which
executives at Group companies have been given a status and mission similar to those of the corporate officers.

(6) Executive Management Committee
The Executive Management Committee, consisting of executive corporate officers, has been formed to deliberate andreport on important matters related to business execution and supervises internal control and risk management. Fulltime corporate auditors also attend meetings to stay informed of important decision-making processes and the status ofbusiness execution, and provide opinions as necessary.

(7) Financial Auditing
Mitsui Fudosan has concluded an auditing contract with KPMG AZSA LLC as its certified public accountant, which
conducts audits. There is no shared interest between the auditor and the Company, nor between employees conducting
operations for the auditor and the Company. The continuous auditing period of the auditor, the names and years ofcontinuous auditing of the certified public accountants engaged in auditing in this fiscal year, and the composition of theassistants involved in auditing duties are as follows.
Continuous auditing period: 54 years* This is the number of years since the Asahi Accounting Company, the predecessor of KPMG AZSA LLC, became an
audit corporation.
Name of certified public accountants who have executed audits
Designated limited liability employee business executives: Yutaka Terasawa (1 year); Hiroyuki Ito (7 years); Hironori
Hashizume (5 years)* Number of years of continuous auditing are shown in parentheses.
Breakdown of assistants involved in financial auditing duties
Certified Public Accountants: 12; Passed CPA exam: 9; Others: 24

171Strategy Planning Special Committee
Formulates and deliberates Group strategy and management plans and supervises business risk management at a
Company and Group level, with the goal of discussing and managing the execution of those plans and other specificmanagement issues.

Risk Management Special Committee
Formulates risk management policies and plans; tracks, evaluates and formulates responses and recurrence prevention
measures for risk issues; and shares information as necessary throughout the Company and the Group for the purposeof comprehensively managing operational risks (disaster risk, system risk, administrative risk and compliance, etc.) in the
conduct of operations throughout the Company and the Group.

ESG Promotion Committee
Formulates ideas and policies, sets goals, creates activity plans, manages progress and evaluates results related to ESG
topics and the SDGs, with the goal of promoting action at a Company and Group level that contributes to ESG activities
and the achievement of the SDGs, and initiatives aimed at decarbonization.

172

Internal control
The Group has set up and manages an internal control system that conforms to the Companies Act. Mitsui Fudosan
endeavors to put in place systems to ensure that the execution of business by directors and employees complies withlaws and regulations and the Company’s Articles of Incorporation. With this in mind, the Board of Directors formulated
the following basic policy and maintains its proper operation.

Basic Policy to Put in Place an Internal Control System That Will Ensure the Proper
Execution of Business Activities by a Company Limited by Shares
1. System to ensure that execution of business by directors conforms to laws and regulations and theCompany’s Articles of Incorporation
The Company is working to ensure compliance through formulation and implementation of a compliancepromotion plan, based on its Compliance Rules and other internal rules. The Company has also established a
Risk Management Special Committee and put in place a compliance structure to prevent violations of laws andregulations and its Articles of Incorporation.
2. System related to storage and management of information concerning the execution of business bydirectors
All information is appropriately stored and managed according to internal rules, including the Document Rules,
the Information Management Rules and the Information System Management Rules.
3. Regulations and other frameworks related to prevention of losses
Based on Risk Management Regulations and other internal rules, the Executive Management Committee
supervises and controls risk management items concerning the Company or the Mitsui Fudosan Group. It heads
two committees charged with uncovering and comprehending risk issues and devising solutions for them—
the Strategy Planning Special Committee, which handles business risk management, and the Risk Management
Special Committee, which is responsible for management of administrative risk.
4. Framework for ensuring that the business of directors is executed efficiently
To promote the separation and strengthening of the management and executive functions for which directors
are responsible, the Company has adopted a corporate officer system, part of a framework intended to ensurethat the business of directors is executed efficiently.
Concerning the execution of business based on decisions of the Board of Directors, internal rules, includingorganizational rules and rules governing administrative authority, set forth who is in charge and their
responsibilities and promote efficient business by also setting forth procedures for execution.
5. A system to ensure that the execution of business by employees conforms to laws and regulations and theCompany’s Articles of Incorporation
The Company is working to ensure compliance through formulation and implementation of a compliancepromotion plan, based on its Compliance Rules and other internal rules. The Company also maintains a Risk
Management Special Committee and a compliance structure to prevent violations of laws and regulations andits Articles of Incorporation.

173

6. Framework for ensuring appropriate business practices by the corporate group comprising the Company
and its subsidiaries
Through appropriate management of its Subsidiaries and Affiliates Administration Rules and Overseas Affiliates
Administration Rules, the Company seeks to ensure the efficient execution of business by directors of its
subsidiaries, while management is based on approval and monitoring by Mitsui Fudosan.
Each Group company also has in place a compliance framework and Internal Control System based on the
Mitsui Fudosan Group Compliance Policy. The Internal Audit Department conducts audits of the subsidiaries’
compliance frameworks and their compliance with laws and regulations, and reports to the Board of Directors
and the Board of Corporate Auditors.
7.A system for employees to assist auditors with their duties and matters concerning the assurance ofindependence of these employees from directors and the effectiveness of instructions given to these
employees
The Corporate Auditor’s Department has been established specifically to assist the corporate auditors with
their work, and each corporate auditor has been assigned a dedicated employee.
Said employee shall be under the chain of command of the corporate auditor, who shall also evaluate theemployee’s performance. Transfer of said employee shall take place only upon prior discussion with thecorporate auditor.
8. Frameworks for enabling directors and employees to report to the corporate auditors, for other reportingto the corporate auditors, and for ensuring that audits by the corporate auditors are conducted effectively
Corporate auditors attend meetings of the Board of Directors.
Full-time corporate auditors also attend meetings of the Executive Management Committee, which overseesinternal controls and risk management, receives reports when necessary, and shares these at meetings of theBoard of Corporate Auditors.
In addition, the corporate auditors receive regular audit reports from the Internal Audit Department and theCompany’s certified public accountant, and exchange information to build cooperation.
Matters that have become subject to internal consulting are reported to the corporate auditors as appropriate
via the Risk Management Special Committee, and the Internal Control System Rules contain provisions
stating that the act of consulting itself will not be reason for detrimental treatment of the person requesting
consultation.
9. Framework for enabling directors, auditors and employees of subsidiaries, or individuals receiving reports
from those listed, to report to corporate auditors, and for ensuring that individuals providing such reports will
not, by reason of having made said report, be subject to detrimental treatment as a result
Full-time corporate auditors attend meetings of the Executive Management Committee, which oversees internal
controls and risk management, receives reports as necessary, and shares them with the Board of Corporate
Auditors.
They also work to exchange information as appropriate with the directors and auditors of the Company’s
subsidiaries, either directly or through relevant departments, and receive progress reports on implementation ofinternal audits at subsidiaries.
Matters subject to internal consulting under the Internal Control System, of each Group company are also
reported to the Company’s corporate auditors as appropriate via the Risk Management Special Committee orthe department concerned. Rules regarding each Group company’s Internal Control System contain provisions
stating that the act of consulting itself will not be reason for detrimental treatment of the person requesting
consultation.

174

10. Policies regarding procedures for prepayment or reimbursement of expenses arising in the execution of
the corporate auditors’ duties or related to processing of other expenses and liabilities arising from executionof those duties
Expenses required for the execution of the corporate auditors’ duties shall be borne by the Company at cost.

Internal Auditing System
The Audit Department verifies the effectiveness of risk management and internal control systems from the perspective of
the entire Group. At the same time, the Department puts in place audit activity plans in order to evaluate and improverisk management and internal control systems, and undertakes internal audits following authorization by the Board of
Directors.
Results of the internal audits are reported to the officers in charge with feedback directed to the appropriate
departments. Thereafter, follow-up activities are undertaken to assess the status of improvement progress. Moreover,details of audit activities are reported every six months to the Executive Management Committee, Board of Directors,
and Board of Corporate Auditors. Every effort is made to share information and coordinate with auditors.
Based on Japan’s Financial Instruments and Exchange Law, Mitsui Fudosan evaluates the status of internal control
relating to the current Group financial report at the end of each period. An Internal Control Report is then submitted
and disclosed publicly. Results of the most recent Internal Control Report have been audited by KPMG AZSA LLC anddeemed appropriate.

Reasons for Selecting Outside Directors and Their Attendance
Mitsui Fudosan appoints its outside directors with the expectation that they will contribute their extensive experienceand broad knowledge to the Company’s management, and that they will play an appropriate role in strengthening theaudit function of the Board of Directors and ensuring transparency.
The Company also appoints its outside auditors with the expectation that they will bring an objective stance to auditing
the directors in the performance of their duties, based on their expert knowledge and extensive experience.
Note that, in line with Tokyo Stock Exchange requirements for judging the independence of independent officers, theCompany uses the following standards for judging said independence: whether there is a risk of conflicts of interest
with any of the Company’s general shareholders; whether any special interests exist with the Company; and whether inworking to enhance the soundness and transparency of the Company’s management, the individual is capable of making
objective, fair and impartial judgments.

175

Executive Compensation
Managing directors’ compensation consists of basic compensation in an amount within the scope set and approvedby resolution of the 106th Ordinary General Shareholders’ Meeting, bonuses paid as short-term incentives thatcomprehensively take into consideration such things as business results achieved in each fiscal year which must be
approved by resolution at the Ordinary General Shareholders’ Meeting, and restricted stock compensation paid as
medium- to long-term incentives in an amount within the scope set and approved by resolution of the 108th Ordinary
General Shareholders’ Meeting for the purpose of sustainably increasing the corporate value of the Group and further
sharing shareholder value with shareholders. Compensation paid to managing directors (outside directors) is solely basic
compensation. Compensation paid to corporate auditors will be within the scope of the total amount approved by aresolution at the 106th Ordinary General Shareholders’ Meeting.
The Company has established the Compensation Advisory Committee, comprised of the following 6 members: 4
independent outside directors who make up the majority and 2 internal directors, with one of these independent
outside directors serving as chairman. The amount of compensation for directors is determined by the Board of Directors
following consultation with the Compensation Advisory Committee. Corporate Auditor’ compensation is determinedbased on discussions among corporate auditors.
The Board of Directors determines the details of compensation, etc., for individual managing directors pursuant to theabove policy after consultations with the Compensation Advisory Committee. As a result, the details of compensation
are deemed to follow the policy.
【Restricted stock compensation system】
At the 108th Ordinary General Shareholders' Meeting held on June 26, 2020, the introduction of a restricted stockcompensation system for managing directors of the Company, other than outside directors, in place of stock options
was approved. The purpose of this was to provide an incentive for continual improvement of the corporate value of
the Group, and to share greater shareholder value with shareholders. Stock acquisition rights which have already been
granted as stock options but have not yet been exercised will continue to exist. However, no new stock options will be
granted.
Furthermore, we have also introduced a restricted stock compensation system to managing officers and Group officers
who do not concurrently serve as managing directors.
【Policies relating to the determination of payment ratios for performance-based compensation and other forms ofcompensation】
Compensation for directors consists of a bonus and restricted stock compensation, which are performance-based
compensation, and basic compensation, which is compensation other than performance-based compensation. The
payment ratio for performance-based compensation is around 50–60% (60–70% for the President), and around 40–50%
for other forms of compensation (30–40% for the President).
【Indexes relating to performance-based compensation, reasons for selecting indexes for performance-based
compensation, and method used to determine the amount of performance-based compensation】
In regard to the bonus and restricted stock compensation - i.e. performance-based compensation -comprehensive
consideration is given to factors such as performance for the current term, status of ESG-related initiatives, redistributionof profits among shareholders based on our returns policies, progress of "VISION 2025," our Group's long-term
management policies, the economic climate, and the business environment. In regard to the reasons for selecting theseindexes, this is to increase the interrelationship between director compensation and performance and stockholder value.
The amount of performance-based compensation is determined by the Board of Directors following consultations with
the Compensation Advisory Committee.

176

Analysis and Evaluation of Board of Director Effectiveness
Each year, the Company analyzes and evaluates the efficacy of the Board of Directors, continually aiming to further
enhance its functions. As for the method of analysis and evaluation, we used a third-party body for the development of aquestionnaire and the analysis of the result.
An overview and results of our evaluation of the Board of Directors’ efficacy are provided below.
(1) Evaluation method
The Company conducted the questionnaire to all directors and corporate auditors regarding the Board of Directors’
efficacy and interviews based on the issues recognized through the questionnaire. The results were then analyzed andevaluated at a meeting of the Board of Directors held on May 29, 2023.
(2) Evaluation items･ Board of Directors structure (number of members, ratio of executive to non-executive members, diversity, etc.)･ Status of operation of the Board of Directors (number of meetings held, attendance rates, time spent for
deliberation, number of items deliberated, provision of information, questions and answers, etc.)･ Other (issues raised in the previous evaluation of Board of Directors’ efficacy; Compensation Advisory Committee;
Nomination Advisory Committee; meetings of outside directors and outside auditors; etc.)(3) Evaluation results
Each evaluation item in the questionnaire received a high evaluation in general. According to the evaluation on thequestionnaire and interviews, it was confirmed that the Board of Directors’ efficacy was properly maintained because
the improvement initiatives are being implemented on the basis of the previous efficacy evaluation as listed below.
[Major Initiatives Based on the Previous Efficacy Evaluation]i) Reporting on dialogue with different stakeholders･ The status of dialogue with investors was reported to the Board of Directors, which shared and discussed thecontent from briefings for analysts and feedback from investors.
･ Engagement surveys are carried out and the findings shared and discussed at the meetings of outside directors
and outside auditors.
ii) Discussion, reporting, and sharing of important issues･ Impacts on international business projects, which consider factors such as geopolitical risks, changes to theeconomic environment, and the spread of COVID-19 are reported to the Board of Directors, which discusses
these issues.
･ As part of the reporting of the activities of the Corporate Communications Department to the Board of Directors,
information is shared on the results of corporate branding surveys and the board discusses brand strategy,
including for Group companies.
(4) Issues and future initiatives
For further improvement of the efficacy of the Board of Directors, the following initiatives will be implemented to solve
the issues identified through the questionnaire and interviews:i) Reporting on dialogue with investors･ Continue to establish further opportunities for reporting on dialogue with investors at the Board of Directors
meetings since the previous evaluation of the effectiveness of the Board of Directors was well receivedii) Deepening discussions at meetings of the Board of Directors･ Further share discussions from executives during explanations for each agenda item, and also report oncomparisons with competitors, to deepen the Board of Directors’ discussions.
iii) Discussing brand and PR strategies･ Further deepen discussions by the Board of Directors and others about our brand and PR strategies, including forGroup companies.

177

Shareholder Voting Rights･ The principle of one vote per share of stock shall be applied to all corporate voting matters･ Disclosure of voting results･ Appointment and dismissal of managing directors and corporate auditors by shareholders

178

ESG Data
Environment-related Data
Social-related Data
Governance-related Data

179

Environment-related Data

Climate Change● Activity Indices and Goals, and Progress in Achieving Them
● Office Buildings in Tokyo Certified as Excellent Designated GHG Offices by the Tokyo
Metropolitan Government● List of Company Solar Power Stations● Trends in the Amount of Energy Consumption● Boundary for Energy Consumption● Greenhouse Gas Emissions (Scopes 1, 2 & 3)
● Trends in Three-year Averages for Greenhouse Gas Emissions Ratio● External Certifications

Water● Trends in Water Usage (Water intake, water recycling rate, and wastewater)● Boundary for Water Usage

Environmental Pollution and Resources● Recycled Food Waste (FY2022)● Tile Carpeting Recycling● Wastepaper Recycling● Used Fluorescent Bulb and Battery Recycling● Hazardous Waste (Specially Controlled Waste) Emissions● Trends in the Amount of Disposed Non-Hazardous Waste (General Waste and Industrial Waste)● Boundary for Waste Emissions● Waste Recycling Ratio (Headquarters)● Annual Cost for Fines and Penalties Relating to the Environmental Pollution● Violation of Laws, Regulations, and Ordinances Relating to Environmental Pollution● Number of sites covered by recognized environmental management systems such as ISO 14001

180

■ Climate Change
Activity Indices and Goals, and Progress in Achieving Them

The Group's indices and goals with respect to climate change as well as progress toward achieving them are as follows.
Item

Objectives (KPI)

FY2019FY2020

FY2021

FY2022

Change fromprevious fiscal year
1,304 increase

CO2 and other emission(+31.1％ )reduction rate2030

: 40% decrease(1000 t-CO2)

2050: Virtually zero

4,383

4,690

4,199

5,503

<Compared to
FY2019>1,120 increase<Compared to FY2019>(+25.6％ )Energy-derived CO2 emission

Reduction rate

reduction rate by Tokyo

exceeding Tokyo

Metropolitan Government's
Specified Global Warming

FY2024

Metropolitan
Government

Prevention Businessordinance target

Establishments *1(Plan 3: 27%)28.40％

38.40％

37.30％

35.80％

1.5% increase

0.10％

0.10％

2.96％

11.3％

＋ 8.3％

0.041

0.035

0.039

0.039

0.0％

Proportion of electric power
used in business activities
derived from renewable

FY2050100％

energy (RE100)
Energy consumption per baseunit (㎘ /m2/year)

Every year

Annual 1%
reduction*1 Plan 1: 8% decrease (FY2010-2014), Plan 2: 17% decrease (FY2015-2019), Plan 3: 27% decrease (FY2020-2024). Achievement is determined by
the average of the five-year period.

Office Buildings in Tokyo Certified as Excellent Designated GHG Offices by the Tokyo Metropolitan Government

Item
Top level offices
Semi top level offices

FY2019FY2020

FY2021

FY2022

6 office complexes

6 office complexes

5 office complexes

6 office complexes(6 buildings)(6 buildings)(5 buildings)(6 buildings)

8 office complexes

5 office complexes

5 office complexes

4 office complexes(11 buildings)(7 buildings)(7 buildings)(6 buildings)

List of Company Solar Power Stations

Facility nameLocation

Date operations started

Mitsui Fudosan Oita Solar Power Plant Oita, Oita Prefecture
Mitsui Fudosan Sanyo-Onoda Solar
Power Plant
Mitsui Fudosan Tomakomai Solar
Power Plant
Mitsui Fudosan Hachinohe Solar
Power Plant
Mitsui Fudosan Omuta Solar Power
Plant

Sanyo-Onoda,

Yamaguchi Prefecture
Tomakomai, Hokkaido
Hachinohe, Aomori
Prefecture

Omuta, Fukuoka

Prefecture

1 December 2013

Planned generation capacity
Approx. 21 MW(including 4 MW expansion)

1 December 2013

Approx. 13 MW

1 April 2014

Approx. 24 MW

1 October 2014

Approx. 8 MW

1 December 2014

Approx. 6 MW
Total: Approx. 72 MW

181

Trends in the Amount of Energy Consumption
FY2019Energy Consumption (MWh)FY20201,488,256

FY2021

1,433,237

FY2022

3,653,327

3,935,352

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.
3. Energy consumption is calculated by multiplying purchased energy by a calorific value coefficient. The coefficient used is the unit calorific value
set in the Act on Rationalizing Energy Use.

Boundary for Energy Consumption
FY2019No. of target facilities (facilities)
Total floor area（m2）FY2020

FY2021

FY2022

210

277

789

791

6,770,958

7,628,160

18,027,066

19,235,824

Notes::
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.
3. Energy consumption is calculated by multiplying purchased energy by a calorific value coefficient. The coefficient used is the unit calorific value
set in the Act on Rationalizing Energy Use.

182

Greenhouse Gas Emissions (Scopes 1, 2 & 3)

The Group's emissions for Scope 1, Scope 2, and Scope 3 are as follows.
＊ Facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or more
employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included

FY2019FY2020

FY2021

FY20221000t-CO₂

1000t-CO₂

1000t-CO₂

1000t-CO₂

Scope1 Direct emissions

104

115

140

183

Scope2 Indirect emissions

413

363

438

457

518

479

579

640

1,199

1,788

1,209

1,658

Scope3-2 Capital goods

974

515

835

1,608

Scope3-3 Fuel- and energy-related activities(not included in scope 1 or scope 2)

98

92

125

128

Scope3-4 Upstream transportation and distribution

－

－

－

－

126

170

146

166

Scope3-6 Business travel

3

3

3

3

Scope3-7 Employee commuting

5

5

6

6

Scope3-8 Upstream leased assets

－

－

－

－

Scope3-9 Downstream transportation and distribution

－

－

－

－

Scope3-10 Processing of sold products

－

－

－

－

Scope3-11 Use of sold products

831

1,029

696

695

Scope3-12 End-of-life treatment of sold products

10

16

13

13

Scope3-13 Downstream leased assets

621

594

589

586

Scope3-14 Franchise

－

－

－

－

Scope3-15 Investments

－

－

－

－

Subtotal (Scope 3):

3,865

4,211

3,621

4,863

Total (Scopes 1, 2 & 3):

4,383

4,690

4,199

5,503

Scope

Subtotal (Scopes 1 & 2):
Scope3-1 Purchased Goods and Services

Scope3-5 Waste generated in operations*Scope 1 and Scope 2 are calculated using emission factors in line with the Act on Promotion of Global Warming Countermeasures and othermethods, based on the amount of energy used (whether actual figures or estimates) in the relevant fiscal year. Until fiscal year 2021, for the electricalemission factors, a basic emission factors was used, but for fiscal year 2022 onward, calculations have been made more precise, such as through theuse of a post-adjustment emission factors. Some figures for fiscal year 2020 and before are estimates calculated by considering a base unit (of floorarea) for each business division.
*Scope 3-1 is calculated from the sales cost price part in the relevant fiscal year and services provided part of real estate for sale that was sold inthat fiscal year.
The sales cost price part of real estate for sale that was sold in the relevant fiscal year (excl. land) is calculated by multiplying figures given in theemissions unit value database, which details Ministry of the Environment emission factors used to estimate an organization’s greenhouse gas or otheremissions through its supply chain.
The services provided part during the relevant fiscal year is calculated by multiplying accounts that exceeded 1% of the total monetary amountcovered in Scope 3-1 by an emission factors determined by the Ministry of the Environment.
*Scope3-2 is calculated by multiplying the amount of increase in Property, plant and equipment excluding land and construction in progress by anemission factors determined by the Ministry of the Environment.
*Scope 3-3 is calculated by multiplying the amount of energy totaled in Scope 1 and Scope 2 by an emission factors determined by the Ministry of
the Environment.
*Scope 3-5 is calculated by multiplying emissions produced by general and industrial waste (estimated figures are partly included) by an emission
factors determined by the Ministry of the Environment.

183

*Scope 3-6 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by an emission factors determined by the Ministry of
the Environment.
*Scope 3-7 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by the number of working days for Mitsui Fudosan
and an emission factors determined by the Ministry of the Environment.
*Scope 3-11 is calculated by multiplying the area, etc., real estate sold in the relevant fiscal year by the annual emissions unit value and the remaining
service life.
*Scope 3-12 is calculated by multiplying the area of real estate sold in the relevant fiscal year by an emission factors determined by the Ministry of
the Environment.
*Scope 3-13 is calculated using emission factors and other methods in line with the Act on Promotion of Global Warming Countermeasures, basedon the amount of energy used (whether actual figures or estimates) in the relevant fiscal year. Some figures are estimates calculated by considering abase unit (of floor area) for each business division.*Scope 3-6 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by
an emissions coefficient determined by the Ministry of the Environment.
*Scope 3-7 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by the number of working days for Mitsui Fudosan
and an emissions coefficient determined by the Ministry of the Environment.
*Scope 3-11 is calculated by multiplying the area, etc., real estate sold in the relevant fiscal year by the annual emissions unit value and the remaining
service life.
*Scope 3-12 is calculated by multiplying the area of real estate sold in the relevant fiscal year by an emissions coefficient determined by the Ministryof the Environment.
*Scope 3-13 is calculated using emissions coefficients and other methods in line with the Act on Promotion of Global Warming Countermeasures,
based on the amount of energy used (whether actual figures or estimates) in the relevant fiscal year. Some figures are estimates calculated byconsidering a base unit (of floor area) for each business division.

184

Trends in Three-year Averages for Greenhouse Gas Emissions Ratio

Item

Standard for comparison

Three-year average

FY2018-2020

Results
FY2019-2021

FY2020-2022

6% decrease

2% increase

External Certifications

FY2021

FY2022

DBJ GREEN BUILDING Certification

4

38

CASBEE

8

20

LEED

14

15

BREEAM

3

3

Green Building

2

2

185

■ Water Usage
Trends in Water Usage

Water intake（thousand m3）

FY2019FY2020 *1,2

FY2021

FY2022

Clean water

5,619

4,070

9,483

11,433

Industrial water

107

85

236

243

Purchased reclaimed water

－

63

251

288

Well water

－

922

1,292

1,594

Hot spring water

－

78

204

229

Pond water

－

57

37

75

Rainwater

－

74

250

252

Spring water

－

17

96

96

Total water intake

5,726

5,365

11,84914,210

Water intake per base unit（m3/m2）

0.851

0.708

0.671

0.855

Water recycling rate
FY2019FY2020

Water recycling rate (%) *3

FY2021

15.1

9.2

FY2022
9.5

Wastewater（thousand m3）

FY2019Sewage water *4

7.5

FY2020

FY2021

FY2022

5,539

4,441

10,181

12,205

－

270

264

341

Seawater*1 Since fiscal year 2020, we have improved the accuracy of reporting data received from each facility relating to usage of purchased clean andindustrial water.
*2 Since fiscal year 2020, we have reviewed water usage categories and added some usage categories to the overall totals.
*3 Water recycling rate: For the fiscal year 2019, percentages show the proportion of grey water in total water intake (1,016 thousand m3). From thefiscal year 2020, the percentage shows the proportion of water (FY2020: 495 thousand m3; FY 2021: 1,121 thousand m3; FY2022: 1,059 m3) reused
after being put in grey water containers after its initial use.
*4 Amount of wastewater transported to a water treatment plant via underground sewers. Wastewater put into the sea, the ground, underground, or
elsewhere is not included in this total.

Boundary for Water Usage

FY2019No. of target facilities (facilities)
Total floor area（m2）FY2020

FY2021

FY2022

146

187

477

497

6,723,556

7,574,935

17,667,267

16,617,847

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.

186

■ Environmental Pollution and Resources
Recycled Food Waste (FY2022)

Category

Food waste

Office buildings (69)Retail facilities (28)Waste volume2,943.8 tons/year

4,861.40 tons/year

Recycled volume1,419.9 tons/year

4,768.52 tons/year

Recycling ratio

48.23％

98.29％
Fertilizer, feedstock, gasification,

Recycling applications

Feedstock, power generation

incineration power generation,
carbonization

Tile Carpeting Recycling（Unit：m2）

Item

FY2019FY2020

FY2021

FY2022

Volume of used tile carpeting collected

93,759119,466

172,153

115,955

Volume of environmentally friendly tile carpeting supplied

224,614106,501

124,838

87,799Cumulative volume supplied since fiscal 2002

Approx.

Approx.

Approx.

Approx.

1,350,000

1,460,000

1,580,000

1,670,000

Wastepaper Recycling

FY2019Volume of wastepaper
collected

Office buildings in Tokyo

LaLaport TOKYO-BAY
Recycled paper purchased

85

FY2020Approx.
6,833 tons

93

Approx.
4,773 tons

FY202183

FY2022

Approx.

82

2,396 tons

Approx.
4,947 tons

Approx. 3,179

Approx. 37

Approx. 28

Approx. 25.84

tons

tons

tons

tons

Approx. 172

Approx. 112

Approx. 111

Approx. 112

tons

tons

tons

tons

93.0％

86.7％

93.8％

94.9％

(Group’s purchase volume) Recycled office paper*1
Recycled paper order ratio(in the Company’s offices)*2*1 Recycled office paper is a recycled paper independently made from used paper of the Mitsui Fudosan Group.
*2 Percentage of recycled paper used in FY2019, FY202

Used Fluorescent Bulb and Battery Recycling

FY2019Number of buildings coveredfor collections

Collection volume (t)FY2020

FY2021

FY2022

Fluorescent bulbs

51

94

93

84

Batteries

40

81

75

76

Fluorescent bulbs

31

22

18

12.5

Batteries

11.6

8

9

9.6

Hazardous Waste (Specially Controlled Waste) Emissions

FY2019Hazardous Waste (Specially Controlled Waste) Emissions

FY20200187

FY20210

FY202200Trends in the Amount of Disposed Non-Hazardous Waste (General Waste and Industrial Waste)

FY2019FY2020

FY2021

FY2022

General waste (t)36,54630,217

95,433105,987

Per base unit（t/m2）

0.00550.00440.00550.0059Industrial waste（t）

10,642

7,863

16,942

21,382Per base unit（t/m2）

0.00160.00100.00110.0016

Total（t）

47,18838,080112,375

127,369

Note: The amount of disposed industrial waste is in accordance with the Waste Management and Public Cleansing Act.

Boundary for Waste Emissions

FY2019No. of target
facilities (facilities)
Total floor area（m2）FY2020

FY2021

FY2022

General waste

Industrial waste

General waste

Industrial waste

132

166

380

334

399

347

6,665,965

7,576,226

17,205,772

15,441,872

18,008,087

13,478,173

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.
3. Waste emissions include estimates. For the fiscal year 2022, data calculations and calculation methods have been made more precise.

Waste Recycling Ratio (Headquarters)

PeriodNumerical target

FY203090％

FY2019FY202080.30％FY202175.30％FY202272.40％

69.40％

Annual Cost for Fines and Penalties Relating to the Environmental Pollution

FY2019Annual Cost for Fines and Penalties Relating to the

FY20200

Environmental Pollution

FY20210

FY202200Violation of Laws, Regulations, and Ordinances Relating to Environmental Pollution

FY2019Violation of Laws, Regulations, and Ordinances Relating to
Air and Water Pollution
Violation of Laws, Regulations, and Ordinances Relating toSoil Pollution
Violation of Laws, Regulations, and Ordinances Relating to
CFCs and Asbestos
Violation of Laws, Regulations, and Ordinances Relating toWaste Disposal
188

FY2020

FY2021

FY2022

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Number of sites covered by recognized environmental management systems such as ISO 14001

FY2019Number of Offices

FY20200189

FY20210

FY202200Society-related Data

Health and Safety● Health Checkup and Screening Rate
● No. of Employees Attending Seminars on Health and Safety Standards● Lost Time Incidents● Number of Work-related Employee Fatalities● Number of office buildings with OHSAS 18001 or ISO 45001 certification

Labor Standards and Practices● Group Employment Situation (Number of Employees by Business Segment)● Employee Composition (As of April 1 of each fiscal year)● Employee Composition by Age (As of April 1 of each fiscal year)● Trends in Number and Percentage of Male and Female Regular Employees (As of April 1 of each fiscal year)● Average Annual Salary Paid by the Company (As of April 1 of each fiscal year)● FY2022 Mitsui Fudosan Group Diversity Indicators● Trends in New and Departing of Regular Employees● Employee Engagement

Diversity & Inclusion● Quantitative Goals and achievement status● Female Participation Model Companies in the Mitsui Fudosan Group● Number of Employees Taking Childcare Leave, Etc.
● Return Rate of Employees Taking Childcare Leave● Employees Taking Family Care Leave● Return Rate of Employees Taking Family Care Leave● Percentage of Employees with Disabilities

Human Resources Management● Time Spent Developing Employee Abilities● Environmental Education Activities● Cumulative Total of Employees Who Have Taken and Passed the Eco Test

Human Rights● Number of Cases of Humans Rights Risk Handled by the Risk Management Special Committee

Community● Record of Social Contribution Activities

190

■ Health and Safety
Health Checkup and Screening Rate

FY2019Health Checkup and Screening Rate

FY202099.8%

FY2021

99.5％

FY2022

100%

100%

Notes
1. Unconsolidated
2. The health checkup and screening rate is the percentage of all steady-basis employees undergoing health checkups or health screening.
The total of all steady-basis employees consists of regular and part-time steady-basis employees as of the end of the fiscal year, excluding thosenecessarily prevented from undergoing screening (due to international postings, childcare leave, health conditions, etc.).

No. of Employees Attending Seminars on Health and Safety Standards

FY2019FY2020

FY2021

FY2022

No. of New employees

63

63

62

59

No. of Newly appointed executive managers

22

27

30

33

Note: Unconsolidated

Lost Time Incidents

FY2019Absentee rate *1

FY2020

FY2021

FY2022

0.42％

0.39％

0.26％

0.41％

Injury occurrence rate (frequency rate) *2

0％

0％

0％

0％

Rate of lost time incident (severity rate) *3

0％

0％

0％

0％

Notes: Unconsolidated*1 Absentee rate = Total absent days / (Number of employees x Annual working days)*2 Injury occurrence rate (frequency rate) = Work-related fatalities and injuries / Total actual working hours x 1,000,000*3 Rate of lost time incident (severity rate) = Total working days lost / Total actual working hours x 1,000

Number of Work-related Employee Fatalities

FY2019FY2020

FY2021

FY2022

Regular employees

0

0

0

0

Contract employees

0

0

0

0

Note: Unconsolidated

Number of office buildings with OHSAS 18001 or ISO 45001 certification

FY2019Number of office buildings with OHSAS 18001 or

FY20200

ISO 45001 certification
Note: Unconsolidated

191

FY20210

FY202200■ Labor Standards and Practices
Group Employment Situation (Number of Employees by Business Segment)
FY2019Business segment

Number of
employees

FY2020Percentage

Number of
employees

FY2021

Percentage

Number of
employees

FY2022
Number ofPercentage

Percentage

employees

Rental

1,188

5.7％

1,418

5.9％

1,556

6.4％

1,624

6.6％

Built-for-sale

1,296

6.2％

1,344

5.6％

1,394

5.7％

1,419

5.7％

Management

11,32854.3％

11,68948.7％

11,92048.8％

12,007

48.6％

Other

6,654

31.9％

9,108

38.0％

9,033

37.0％

9,128

37.0％

Administration*

398

1.9％

433

1.8％

505

2.1％

528

2.1％

20,864100.0％

23,992100.0％

24,408100.0％

24,706100.0％

Total*Employees belonging to administration departments who cannot be classified under a specific segment

Employee Composition (As of April 1 of each fiscal year)
FY2019Male

FemaleFY2020

FY2021

FY2022

FY2023

Regular employees

734

793

838

873

918

Irregular employee

215

246

253

242

231

Subtotal

949

1,039

1,091

1,115

1,149

Regular employees

294

342

384

432

475

Irregular employee

334

347

362

380

390

Subtotal

628

689

746

812

865

1,577

1,728

1,837

1,927

2,014

Total

Note: Unconsolidated (excluding assigned employees)

192

Employee Composition by Age (As of April 1 of each fiscal year)

FY2019
10s

20s

30s

40s

50s

60s

70s

FY2020

FY2021

FY2022

FY2023

Male

0

1

2

3

1

Female

0

0

2

2

3

Male

147

159

229

214

230

Female

156

169

202

227

242

Male

233

258

289

330

341

Female

272

280

299

324

331

Male

220

201

200

190

204

Female

136

146

142

147

167

Male

272

292

287

291

280

Female

61

68

89

95

101

Male

77

93

84

86

92

Female

2

11

12

15

20

Male

0

0

0

1

1

Female

0

0

0

0

0

Note: Unconsolidated (excluding assigned employees)

Trends in Number and Percentage of Male and Female Regular Employees (As of April 1 of each fiscal year)

FY2019No. of
Employees

GeneralpositionsTechnical
positionsOperational
positions

FY2020％No. of
Employees

FY2021
No. of％

FY2022％

Employees

No. of
Employees

FY2023％

No. of
Employees

％

Male

1,067

89.9％

1,094

87.5％

1,098

85.7％

1,094

83.5％

1,096

82.0％

Female

120

10.1％

156

12.5％

183

14.3％

216

16.5％

240

18.0％

Subtotal

1,187

100.0％

1,250

100.0％

1,281

100.0％

1,310

100.0％

1,336

100.0％

Male

36

90.0％

54

91.5％

68

91.9％

82

93.2％

99

93.4％

Female

4

10.0％

5

8.5％

6

8.1％

6

6.8％

7

6.6％

Subtotal

40

100.0％

59

100.0％

74

100.0％

88

100.0％

106

100.0％

Male

0

0.0％

0

0.0％

0

0.0％

0

0.0％

0

0.0％

Female194

100.0％

203

100.0％

212

100.0％

222

100.0％

240

100.0％

Subtotal

194

100.0％

203

100.0％

212

100.0％

222

100.0％

240

100.0％

Note: Unconsolidated (including assigned employees)

Average Annual Salary Paid by the Company (As of April 1 of each fiscal year)

FY2019Company average salary(Million yen)

FY20201,273

FY20211,274

Note: Unconsolidated

193

FY2022
1,274

1,269

FY2022 Mitsui Fudosan Group Diversity Indicators

Reporting companies and consolidated subsidiaries

Rate of male
Ratio of female workers
employees taking
in management positions
childcare leave(April 2023) (Note 1)(Notes 2 and 3)

Mitsui Fudosan Co., Ltd.

7.7％

Accommodation First Co., Ltd.

Male and female employee pay gap (Note 4)
All employees

Of which,permanent, fulltime employees

Of which parttime or seasonal
employees

122.9％

48.6％

60.1％

49.9％

46.7％

－

70.4％

81.3％

45.8％

Ise-Shima Resort Management Co., Ltd.

16.0％

0.0％

78.6％

65.0％

78.0％

Sunlife Creation Co., Ltd.

62.5％

－

37.9％

88.8％

45.9％

MF Living Support Co., Ltd.

0.0％

－

81.8％

102.3％

115.6％

Daiichi Engei Co., Ltd.

24.5％

100.0％

65.3％

77.1％

64.6％

Tokyo Dome Corporation

11.7％

84.6％

44.7％

55.5％

94.4％

Tokyo Dome Sports Co., Ltd.

45.5％

14.3％

81.0％

93.4％

101.6％

Tokyo Dome Facilities Co., Ltd.

10.0％

100.0％

89.4％

88.7％

79.0％

Tokyo Dome Hotel Corporation

0.0％

0.0％

50.4％

66.1％

69.0％

Tokyo Dome Resort Operations Corp.

0.0％

50.0％

66.0％

67.2％

83.1％

First Facilities Chiba Co., Ltd.

13.3％

－

39.0％

79.8％

55.2％

Mitsui Designtec Co., Ltd.

11.5％

55.0％

62.6％

63.7％

55.6％

Mitsui Fudosan Retail Management Co., Ltd.

17.6％

280.0％

58.6％

72.9％

33.0％

Mitsui Fudosan Building Management Co., Ltd.

4.6％

64.7％

47.9％

67.4％

41.8％

Mitsui Fudosan Facilities Co., Ltd.

2.0％

41.2％

53.9％

70.1％

72.3％

Mitsui Fudosan Facilities West Co., Ltd.

0.0％

50.0％

40.3％

67.5％

66.2％

Mitsui Fudosan Hotel Management Co., Ltd.

17.7％

50.0％

68.8％

76.7％

73.9％

Mitsui Fudosan Realty Co., Ltd.

2.3％

9.0％

52.1％

55.1％

23.2％

Mitsui Fudosan Realty Sapporo Co., Ltd.

0.0％

0.0％

55.1％

55.0％

55.3％

Mitsui Fudosan Realty Chugoku Co., Ltd.

4.0％

33.3％

54.3％

61.2％

8.9％

Mitsui Fudosan Resort Management Co., Ltd.

37.3％

38.5％

74.0％

73.0％

90.0％

Mitsui Fudosan Residential Co., Ltd.

3.6％

110.0％

59.5％

59.2％

65.0％

Mitsui Fudosan Residential Service Co., Ltd.

1.5％

57.9％

75.0％

77.5％

80.8％

Mitsui Fudosan Residential Service Kansai Co., Ltd.

9.3％

100.0％

72.8％

81.5％

100.8％

Mitsui Fudosan Residential Service Chugoku Co., Ltd.

0.0％

－

91.9％

66.3％

98.2％

Mitsui Fudosan Residential Lease Co., Ltd.

3.6％

60.9％

54.4％

56.0％

75.2％

Mitsui Home Co., Ltd.

2.9％

56.1％

44.7％

56.2％

35.7％

Mitsui Home Estate Co., Ltd.

4.8％

33.3％

63.1％

64.1％

73.1％

Mitsui Home Components Co., Ltd.

1.0% (Note 5)

－

60.4％

58.1％

45.5％

Mitsui Home Hokushinetsu Co., Ltd.

3.6％

100.0％

48.1％

62.6％

23.2％

LaLaport Agency Co., Ltd.

16.7％

250.0％

49.3％

74.3％

112.8％

Notes:
1. Calculated based on the regulations in the Act on the Promotion of Women’s Active Engagement in Professional Life (Act No. 64, 2015).
2. Calculated based on the number of male employees whose partner gave birth in the relevant fiscal year, and the number of male employees
who used the leave system to take time off work during that fiscal year at the time of their child’s birth, as childcare leave, or other time off for the
purpose of spending time with their child.
3. Where there are male employees who take childcare leave, etc. in a different fiscal year from that of their child's birth, this rate may exceed 100%.
4. Pay is determined irrespective of gender, and is the same for the same role or qualifications. We have an equal salary system in place, but a pay
gap has arisen due to the difference in personnel in terms of roles and employment types between male and female employees.
5. On April 1, 2023, due to a merger whereby Mitsui Home Co., Ltd. continued and Mitsui Home Components Co., Ltd. was disbanded, these figures
are for March 31, 2023.

194

Trends in New and Departing of Regular Employees
FY2019FY2020

FY2021

FY2022

Number of new employees

51

63

62

59

Number of midcareer hires

35

49

49

59

Number of departing regular employees (Voluntary)

8

8

13

11

0.53％

0.51％

0.81％

0.66％

Full time staff voluntary turnover rates
Note: Unconsolidated (including assigned employees)

Employee Engagement

Numerical target
Employee engagement*1

FY202080％

FY2021

FY2022－－92％

Note: Unconsolidated*1 The proportion who responded to the statement “I am proud to work for this company” with a 4 or 5 out of a five-point scale of agreement■ Diversity & Inclusion
Quantitative Goals and Achievement Status
Quantitative goals
Women in management positions
ratio *1
Mitsui Fudosan*2

FY2020

FY2021

FY2022

10% by FY2025
4.5％

5.7％

6.8％

7.7％

20% by FY2030

Ratio of female hires

40％

－

－

40.5％

44.1％

Return rate from childcare leave

100％

100％

100％

100％

100％

Number of paid leave days taken

14 days a year

14.9

13.8

15.0

16.2

－

－

－

5.3％

6.7％

－

－

－

36.5％

37.4％

(unconsolidated)

Mitsui Fudosan GroupFY2019

Women in management positions
ratio *1
Ratio of women (regular employees)*1 The women in management positions ratio is for April 1 of the following year
*2 Group companies included in data calculations are: Mitsui Fudosan, Mitsui Fudosan Residential, Mitsui Fudosan Residential Service, Mitsui Fudosan
Residential Lease, Mitsui Fudosan Realty, Mitsui Home, Mitsui Designtec, Mitsui Fudosan Facilities, Mitsui Fudosan Building Management, Mitsui
Fudosan Retail Management, Mitsui Fudosan Hotel Management, Tokyo Midtown Management, Tokyo Dome, and Sunlife Creation

Female Participation Model Companies in the Mitsui Fudosan Group

Sunlife Creation Co., Ltd.
KPI
Evaluation indicator

ResultPeriodNumerical target

FY2022

Women in management positions ratio *1

－

－

62.5％

Ratio of female hires

－

－

91.7％

Return rate from childcare leave

Annual100％

100％

Paid leave uptake rate

AnnualUptake of 70%

79.1％

195

Mitsui Fudosan Retail Management Co., Ltd.
KPI
Evaluation indicator

ResultPeriodNumerical target

FY2022

FY2025：20％

FY2030

：25％

－

－

46.5％

Return rate from childcare leave

Annual100％

100％

Paid leave uptake rate

AnnualUptake of 80%

83.5％

Women in management positions ratio *1
Ratio of female hires

17.6％

Mitsui Fudosan Hotel Management Co., Ltd.
KPI
Evaluation indicator

ResultPeriodNumerical target

FY20222025 年：15％2030 年

：20％

－

－

81.6％

Return rate from childcare leave

Annual

100％

92.3％

Paid leave uptake rate

AnnualUptake of 70%

77.0％

Women in management positions ratio *1
Ratio of female hires

17.7％*1 Figures for April 1, 2023

Number of Employees Taking Childcare Leave, Etc.

(Unit: People)

FY2019FY2020

FY2021

FY2022Men

25（61.0％）28（70.0％）38（79.2％）

59（122.9％）

Women

10（100.0％）13（100.0％）20（95.2％）

22（100.0％）

Note: Unconsolidated. Calculated based on the number of male employees whose partner gave birth in the relevant fiscal year, and the number ofmale employees who used the leave system to take time off work during that fiscal year at the time of their child’s birth, as childcare leave, or othertime off for the purpose of spending time with their child. Where there are male employees who take childcare leave, etc. in a different fiscal year
from that of their child's birth, this rate may exceed 100%.

Return Rate of Employees Taking Childcare Leave

Goal
Regular employees

FY2019100.0％FY2020100.0％FY2021100.0％FY2022100.0％

100.0％

Note: Unconsolidated. Excludes those departing due to use of the return entry system (system for re-employment of those who have resigned due totransfer of a spouse)

Employees Taking Family Care Leave(Unit: People)

FY2019FY2020

FY2021

FY2022

Men

0

0

0

0

Women

0

0

0

1

Note: Unconsolidated

196

Return Rate of Employees Taking Family Care Leave

FY2019FY2020Return rate

FY20210

FY2022000Note: Unconsolidated. For regular and contract employees (those registered for the full year)

Percentage of Employees with Disabilities
Quantitative goals
Mitsui Fudosan (unconsolidated) *1

FY2019FY2020

FY2021

FY2022

FY2023

2.30% or more

2.04%

2.07％

2.14％

2.52％

2.74％

2.30％

－

－

2.42％

2.76％

－

Group *2

*1 The legal employment rate rose from 2.2% to 2.3% in March 2021. Figures for each fiscal year are those for June 1 of the relevant fiscal year
*2 Group companies included in data calculations are: Mitsui Fudosan, Mitsui Fudosan Residential, Mitsui Fudosan Residential Service, Mitsui Fudosan
Residential Lease, Mitsui Fudosan Realty, Mitsui Home, Mitsui Designtec, Mitsui Fudosan Facilities, Mitsui Fudosan Building Management, Mitsui
Fudosan Retail Management, Mitsui Fudosan Hotel Management, Tokyo Midtown Management, Tokyo Dome, and Sunlife Creation■ Human Resources Management
Time Spent Developing Employee Abilities
Numerical target

FY2019FY2020

FY2021

FY2022

Total time for capability development training (hours)－

29,772

31,42536,37849,900Training time per employee (hours)*1

Previous year results

20.0

19.8

21.8

28.2

Training expenses per employee (thousand yen)*2

Previous year results

－

－

－

131.0

Note: Unconsolidated*1 Calculated by dividing the total number of training hours by the total number of permanent employees*2 Calculated by dividing the total amount of training expenses by the total number of permanent employees

Environmental Education Activities
Number of ParticipantsType of Training

Mitsui Fudosan Co., Ltd.

FY2019FY2020

FY2021

SDGs training (e-learning online)

18

1,601

1,386

1,404

Sustainability foundational course training

－

447

－

－

20

115

－

28

Environmental training in new employee training

186

20

84

184

Environmental training through e-learning

1,535

1,529

1,529

1,718

Eco Tours (Tour of waste treatment facility)

26

－

－

－

－

－

－

Approx. 500

Bird watching event for employees and tenant staff

16

－

50

－

Environmental training through e-learning

－

－

2,876

2,822

SDGs e-learning

－

－

－

4,910

Sustainability training

－

－

－

2,382

Training on promoting domestically produced materials

－

－

－

1,966

Afforestation training for forests in Hokkaido(FY2020 online)

Mitsui Fudosan Facilities Co., Ltd.

Environmental training through video streaming(4 times a year)
Tokyo Midtown Management Co., Ltd.
Mitsui Fudosan Residential Service Co.,Ltd.

Mitsui Home Co., Ltd.

197

FY2022

Cumulative Total of Employees Who Have Taken and Passed the Eco Test
Total number ofCompany name

Positioning of Eco Test

employees who have

Pass ratio

passed the test
Qualifications for

Mitsui Fudosan Co., Ltd.

398 17.9% of all employees

recommendation

Mitsui Fudosan Facilities Co., Ltd.

Required

Mitsui Fudosan Building Management Co., Ltd.

1,582

Qualifications for31

recommendation
Qualifications for

Mitsui Fudosan Residential Lease Co., Ltd.

Qualifications for52 1.7% of all employees

recommendation
Qualifications for

Mitsui Home Co., Ltd.

dispatched employees

80 70.2% of all employees

Required

Mitsui Fudosan Residential Service Co., Ltd.

Approx. 27% of all employees, excluding

94 11.3% of all employees

recommendation

Tokyo Midtown Management Co., Ltd.

excluding junior employees

251 13.3% of all employees

recommendation
Qualifications for

Mitsui Fudosan Engineering Co., Ltd.

89.9% of full-time and fixed-term employees,

28 1.2% of all employees

recommendation■ Human Rights
Number of Cases of Humans Rights Risk Handled by the Risk Management Special Committee

FY2019Number of cases of human

FY2020
0

rights risk

FY20210

FY202200■ Community
Record of Social Contribution Activities

FY2019FY2020

FY2021

FY2022

Expenditures on social
contribution activities

6,735

5,544

8,719

3,566

2.61

3.28

3.88

1.34

(million yen)
Percentage of ordinary
income (%)

198

Governance-related Data

Compliance● Number of Compliance Violations Handled by the Risk Management Special Committee● Tax Payments by Country/Region

Corruption Prevention● Corruption-related Fines, Surcharges, and Arbitrations

Corporate Governance● Number of Directors and Auditors● Reason for Selection as Outside Directors and Corporate Auditors● Compensation by Title, Amount of Compensation by Type and Number of Applicable Executives● Compensation of Executives Exceeding ¥100 Million

199

■ Compliance
Number of Compliance Violations Handled by the Risk Management Special Committee

FY2019Number of Compliance Violations

FY202029

FY202132

FY202264

48

Tax Payments by Country/Region

Tax payments of the Group by country/region are as follows:

Amount (million yen)Country/region

FY2021

Japan

94,393

UK

2,150

US

1,587

Taiwan285

Singapore241

Luxembourg

227

China

47

Malaysia

41

Hong Kong

14

Thailand4

Canada-95

Total

98,894

Note: The above amount is based on the Country-by-Country Report submitted to the Japanese tax authorities and is not directly related to ourconsolidated financial statements.

■ Corruption Prevention
Corruption-related Fines, Surcharges, and Arbitrations(Unit: Yen)FY2019Corruption-related Fines, Surcharges,
and Arbitrations

FY20200

FY20210

FY20220

0■ Corporate Governance
Number of Directors and Auditors

Number of Directors and Auditors (as of June 30, 2023)
Directors

12
Independent outside directors

4

Female directors

2

Auditors

5
Independent outside auditors

3

Female auditors

2200

Reason for Selection as Outside Directors and Corporate Auditors
FY2022 Attendance

Name

Reason for Appointment

at Board of Directors
Meetings and Boardof Corporate Auditors
Meetings

Tsunehiro Nakayama has amassed a wealth of experience and broad insight having served for many
years in top management positions. During meetings of the Board of Directors, he has provided
amassed of Directors and improving its effectiveness. In addition, as a member of the Nomination
Managing

Advisory Committee and Compensation Advisory Committee, he has participated in discussions from

Tsunehiro

directors and corporate auditors and in the decision process for compensation of managing directors.

Director

Nakayama

an objective standpoint, contributing to ensuring transparency in the selection process for managing

12/12

As the Company's outside director, he has played an appropriate role aimed at reinforcing thesupervision functions of the Board of Directors and ensuring transparency. He is expected to makefurther contributions going forward, and because there is no possibility of conflicts of interest withgeneral shareholders, he has been appointed as an outside director and independent officer.
Shinichiro Ito has amassed a wealth of experience and broad insight having served for many
years in top management positions. During meetings of the Board of Directors, he has provided
recommendations and findings regarding branding, global business expansion, and other mattersfrom an objective and specialist viewpoint. He has contributed greatly to invigorating discussions ofManaging
Director

Shinichiro Ito

the Board of Directors and improving its effectiveness. In addition, as a member of the Nomination
Advisory Committee and Compensation Advisory Committee, he has participated in discussions froman objective standpoint, contributing to ensuring transparency in the selection process for managing

12/12

directors and corporate auditors and in the decision process for compensation of managing directors.
As the Company's outside director, he has played an appropriate role aimed at reinforcing thesupervision functions of the Board of Directors and ensuring transparency. He is expected to makefurther contributions going forward, and because there is no possibility of conflicts of interest withgeneral shareholders, he has been appointed as an outside director and independent officer.
Eriko Kawai has served for many years overseas where she amassed a wealth of experience andbroad insight as a management consultant while working for international organizations anduniversities. During meetings of the Board of Directors, she has provided recommendations andfindings regarding the promotion of women's activities, ESGs, sustainability, and other matters froman objective and professional viewpoint. She has contributed greatly to invigorating discussions by

Managing
Director

Eriko Kawai

the Board of Directors and improving its effectiveness. In addition, as a member of the Nomination
Advisory Committee and Compensation Advisory Committee, she has participated in discussions from12/12

an objective standpoint, contributing to ensuring transparency in the selection process for managing
directors and corporate auditors and in the decision process for compensation of managing directors.
As the Company's outside director, she has played an appropriate role aimed at reinforcing thesupervision functions of the Board of Directors and ensuring transparency. She is expected to makefurther contributions going forward, and because there is no possibility of conflicts of interest withgeneral shareholders, she has been appointed as an outside director and independent officer.
Mami Indo has amassed experience as an analyst and consultant at a securities company and athink tank , and has also gained a wealth of experience and broad insight working in roles such as acommissioner at the Securities and Exchange Surveillance Commission and similar. She is expectedManaging
Director

Mami Indoto provide varied opinions on the Company’s management to reinforce the supervision functionsof the Board of Directors and ensuring transparency and because there is no possibility of conflictsof interest with general shareholders, she has been appointed an outside director and independent－

officer. In addition, as a member of the Nomination Advisory Committee and Compensation Advisory
Committee, she will participate in discussions from an objective standpoint, contributing to ensuringtransparency in the selection process for managing directors and corporate auditors and in thedecision process for compensation of managing directors.
Yukimi Ozeki is currently fulfilling appropriate roles as an outside auditor, sufficiently realizing her

Corporate
Auditor

Yukimi Ozeki

Board of Director

function of monitoring the execution of duties by the managing directors through the use of her

Meetings:

professional knowledge concerning the Companies Act and wealth of experience at universities. Going

12/12 meetings

forward, Yukimi Ozeki is expected to make further contributions, and because there is no possibility

Board of Corporateof conflicts of interest with general shareholders, she has been appointed an outside auditor and

Auditors Meetings:

independent officer.

12/12 meetings

Corporate

Minoru Nakazato has amassed specialist knowledge about tax affairs, legal affairs, and economics as

MinoruBoard of Directors’execution of its duties, and because there is no possibility of conflicts of interest

Auditorwell as a wealth of experience at universities. He is expected to use this to appropriately supervise the

Nakazatowith general shareholders, he has been appointed an outside auditor and independent officer.

－

Mayo Mita has amassed a wealth of experience in the corporate field as a securities analyst as well as
Corporate
AuditorMayo Mitaa great deal of knowledge about objectively monitoring and analyzing companies. He is expected touse this to appropriately supervise the Board of Directors’execution of its duties, and because there
is no possibility of conflicts of interest with general shareholders, he has been appointed an outside
auditor and independent officer.

201－

Compensation by Title, Amount of Compensation by Type and Number of Applicable Executives (FY2022)
Amount of Compensation by Type(Millions of Yen)

Total Compensation

Title(Millions of Yen)

Number of Applicable

Restricted

Basic
Compensation

Bonus

Executives

stock
compensation

Internal directors

1,432

626

559

246

9

Internal corporate auditors

106

106

0

0

2

Outside directors and corporate auditors

131

131

0

0

7

Compensation of Executives Exceeding ¥100 Million (FY2022)
Amount of Compensation by Type(Millions of Yen)
Title

Total Compensation (Millions of Yen)

Compensation
Hiromichi Iwasa

Masanobu Komoda

Chairman of the Board and Chief
Executive Officer (Representative)
President and Chief Executive Officer(Representative)

Number of Applicable

Restricted

Basic

Bonus

Executives

stock
compensation

120

116

43

281

120

140

62

323

Kiyotaka Fujibayashi

Managing Director

79

60

27

166

Yasuo Onozawa

Managing Director

74

60

27

162

Managing Director

52

45

21

10

0

0

Takashi Yamamoto

129

Managing Director of Mitsui Fudosan
Residential Co., Ltd.

Takashi Ueda

Managing Director

60

45

21

127

Takayuki MikiManaging Director

47

45

17

109

Wataru Hamamoto

Managing Director

63

45

21

129

*Titles correct as of the end of FY2022

202

Third-party Assurance

Independent Assurance Report〈Environmental Data〉
Energy Consumption
Water Usage
Waste Emissions
Greenhouse Gas Emissions〈Social data〉
Health Checkup and Screening Rate

203

Third-party Assurance
Independent Assurance Report
To enhance the reliability of the ESG data disclosed in the 2023 ESG Report, selected data has obtained third-party
assurance by KPMG AZSA Sustainability Co., Ltd.
In the information given below, themark indicates fiscal year 2022 data that has obtained third-party assurance.

・Energy Consumption
・Water Usage
・Waste Emissions
・Greenhouse Gas Emissions
・Health and Safety

Independent Assurance Report
To the President and Chief Executive Officer of Mitsui Fudosan Co., Ltd.
We were engaged by Mitsui Fudosan Co., Ltd. (the “Company”) to undertake a limited assurance engagement of the environmental
and social performance indicators marked with(the “Indicators”) for the period from April 1, 2022 to March 31, 2023 included
in its ESG Report 2023 (the “Report”) for the fiscal year ended March 31, 2023.
The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s
reporting criteria”), as described in the Report.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We
conducted our engagement in accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance
Engagements other than Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on
Greenhouse Gas Statements’ issued by the International Auditing and Assurance Standards Board. The limited assurance
engagement consisted of making inquiries, primarily of persons responsible for the preparation of information presented in theReport, and applying analytical and other procedures, and the procedures performed vary in nature from, and are less in extent thanfor, a reasonable assurance engagement. The level of assurance provided is thus not as high as that provided by a reasonableassurance engagement. Our assurance procedures included:
 Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Report andreviewing the Company’s reporting criteria.
 Inquiring about the design of the systems and methods used to collect and process the Indicators.
 Performing analytical procedures on the Indicators.
 Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with
the Company’s reporting criteria, and recalculating the Indicators.
 Visiting two of the Company’s facilities in Japan selected on the basis of a risk analysis.
 Evaluating the overall presentation of the Indicators.
Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the
Indicators in the Report are not prepared, in all material respects, in accordance with the Company’s reporting criteria as describedin the Report.
Our Independence and Quality Management
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for
Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior. In accordance with International Standard on
Quality Management 1, we design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
September 22, 2023
Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

204

List of annual data
Environmental Data
Energy Consumption
Trends in the Amount of Energy Consumption

FY2019Energy Consumption (MWh)Data with the third-party assurance markFY20201,488,256

FY2021

1,433,237

FY2022

3,653,327

3,935,352

has been independently assured.

Boundary for Energy Consumption

FY2019No. of target facilities (facilities)
Total floor area（m2）FY2020

FY2021

FY2022

210

277

789

791

6,770,958

7,628,160

18,027,066

19,235,824

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.
3. Energy consumption is calculated by multiplying purchased energy by a calorific value coefficient. The coefficient used is the unit calorific value
set in the Act on Rationalizing Energy Use.

205

Water Usage
Trends in Water Usage

Water intake（thousand m3）

FY2019FY2020 ※ 1・2

FY2021

FY2022

Clean water

5,619

4,070

9,483

11,433

Industrial water

107

85

236

243

Purchased reclaimed water

－

63

251

288

Well water

－

922

1,292

1,594

Hot spring water

－

78

204

229

Pond water

－

57

37

75

Rainwater

－

74

250

252

Spring water

－

17

96

96

Total water intake

5,726

5,365

11,849Water intake per base unit（m3/m2）

0.851

0.708

0.671

Data with the third-party assurance mark14,2100.855

has been independently assured.

Water recycling rate
FY2019Water recycling rate (%) *3

FY202015.1

FY2021
9.2

FY2022
9.5

Wastewater（thousand m3）

FY2019Sewage water *4
Seawater

7.5

FY2020

FY2021

FY2022

5,539

4,441

10,181

12,205

－

270

264

341

*1 Since fiscal year 2020, we have improved the accuracy of reporting data received from each facility relating to usage of purchased clean andindustrial water.
*2 Since fiscal year 2020, we have reviewed water usage categories and added some usage categories to the overall totals.
*3 Water recycling rate: For the fiscal year 2019, percentages show the proportion of grey water in total water intake (1,016 thousand m3). From thefiscal year 2020, the percentage shows the proportion of water (FY2020: 495 thousand m3; FY 2021: 1,121 thousand m3; FY2022: 1,059 thousandm3) reused after being put in grey water containers after its initial use.
*4 Amount of wastewater transported to a water treatment plant via underground sewers. Wastewater put into the sea, the ground, underground, or
elsewhere is not included in this total.

206

Boundary for Water Usage

FY2019No. of target facilities (facilities)
Total floor area（m2）FY2020

FY2021

FY2022

146

187

477

497

6,723,556

7,574,935

17,667,267

16,617,847

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or
more employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.

Waste Emissions
Trends in the Amount of Disposed Non-Hazardous Waste (General Waste and Industrial Waste)

FY2019FY2020

FY2021

FY2022

General waste（t）

36,54630,217

95,433105,987

Per base unit（t/m2）

0.00550.00440.00550.0059Industrial waste （t）

10,642

7,863

16,942Per base unit（t/m2）

0.00160.00100.00110.0016

Total（t）

47,18838,080112,375

127,369

Data with the third-party assurance mark21,382has been independently assured.

Note: The amount of disposed industrial waste is in accordance with the Waste Management and Public Cleansing Act.

Boundary for Waste Emissions

FY2021FY2019No. of target facilities (facilities)
Total floor area（m2）FY2020

FY2022

GeneralIndustrial

GeneralIndustrial

waste

waste

waste

waste

132

166

380

334

399

347

6,665,965

7,576,226

17,205,772

15,441,872

18,008,087

13,478,173

Notes:
1. For the fiscal year 2019 to 2020, facilities for which disclosure is required under the Act on Rationalizing Energy Use are included. However,some facilities are excluded.
2. For the fiscal year 2021 onward, facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that either own buildings or have
100 or more employees as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included.
3. Waste emissions include estimates. For the fiscal year 2022, data calculations and calculation methods have been made more precise.

207

Greenhouse Gas Emissions
Greenhouse Gas Emissions (Scopes 1, 2 & 3)

The Group’s emissions for Scope 1, Scope 2, and Scope 3 are as follows.
*Facilities owned or hired by Mitsui Fudosan and consolidated subsidiaries that own buildings or have 100 or more
employees, as well as a company with high CO2 emissions (Mitsui Fudosan TG Smart Energy Co., Ltd.) are included

FY2019FY2020

FY2021

FY20221000t-CO₂

1000t-CO₂

1000t-CO₂

1000t-CO₂

Scope1 Direct emissions

104

115

140

183

Scope2 Indirect emissions

413

363

438

457

518

479

579

1,199

1,788

1,209

1,658

Scope3-2 Capital goods

974

515

835

1,608

Scope3-3 Fuel- and energy-related activities(not included in scope 1 or scope 2)

98

92

125

128

Scope3-4 Upstream transportation and distribution

－

－

－

－

126

170

146

166

Scope3-6 Business travel

3

3

3

3

Scope3-7 Employee commuting

5

5

6

6

Scope3-8 Upstream leased assets

－

－

－

－

Scope3-9 Downstream transportation and distribution

－

－

－

－

Scope3-10 Processing of sold products

－

－

－

－

Scope3-11 Use of sold products

831

1,029

696

695

Scope3-12 End-of-life treatment of sold products

10

16

13

13

Scope3-13 Downstream leased assets

621

594

589

586

Scope3-14 Franchise

－

－

－

－

Scope3-15 Investments

－

－

－

－

Subtotal (Scope 3):

3,865

4,211

3,621

4,863

Total (Scopes 1, 2 & 3):

4,383

4,690

4,199

5,503

Scope

Subtotal (Scopes 1 & 2):
Scope3-1 Purchased Goods and Services

Scope3-5 Waste generated in operations

Data with the third-party assurance mark640

has been independently assured.

*Scope 1 and Scope 2 are calculated using emission factors in line with the Act on Promotion of Global Warming Countermeasures and othermethods, based on the amount of energy used (whether actual figures or estimates) in the relevant fiscal year. Until fiscal year 2021, for the electricalemission factors, a basic emission factors was used, but for fiscal year 2022 onward, calculations have been made more precise, such as through theuse of a post-adjustment emission factors. Some figures for fiscal year 2020 and before are estimates calculated by considering a base unit (of floorarea) for each business division.
*Scope 3-1 is calculated from the sales cost price part in the relevant fiscal year and services provided part of real estate for sale that was sold inthat fiscal year.
The sales cost price part of real estate for sale that was sold in the relevant fiscal year (excl. land) is calculated by multiplying figures given in theemissions unit value database, which details Ministry of the Environment emission factors used to estimate an organization’s greenhouse gas or otheremissions through its supply chain.
The services provided part during the relevant fiscal year is calculated by multiplying accounts that exceeded 1% of the total monetary amountcovered in Scope 3-1 by an emission factors determined by the Ministry of the Environment.
*Scope3-2 is calculated by multiplying the amount of increase in Property, plant and equipment excluding land and construction in progress by anemission factors determined by the Ministry of the Environment.
*Scope 3-3 is calculated by multiplying the amount of energy totaled in Scope 1 and Scope 2 by an emission factors determined by the Ministry of
the Environment.

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*Scope 3-5 is calculated by multiplying emissions produced by general and industrial waste (estimated figures are partly included) by an emission
factors determined by the Ministry of the Environment.
*Scope 3-6 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by an emission factors determined by the Ministry of
the Environment.
*Scope 3-7 is calculated by multiplying the number of employees of the Mitsui Fudosan Group by the number of working days for Mitsui Fudosan
and an emission factors determined by the Ministry of the Environment.
*Scope 3-11 is calculated by multiplying the area, etc., real estate sold in the relevant fiscal year by the annual emissions unit value and the remaining
service life.
*Scope 3-12 is calculated by multiplying the area of real estate sold in the relevant fiscal year by an emission factors determined by the Ministry of
the Environment.
*Scope 3-13 is calculated using emission factors and other methods in line with the Act on Promotion of Global Warming Countermeasures, basedon the amount of energy used (whether actual figures or estimates) in the relevant fiscal year. Some figures are estimates calculated by considering abase unit (of floor area) for each business division.

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Social data
Health and Safety
Health Checkup and Screening Rate

・Record in fiscal year 2019: 99.8%
・Record in fiscal year 2020: 99.5%
・Record in fiscal year 2021: 100%・Record in fiscal year 2022: 100%・Goal for fiscal year 2023: 100%
Data with the third-party assurance markhas been independently assured.

Note: The health checkup and screening rate is the percentage of all steady-basis employees undergoing health checkups or health screening.
The total of all steady-basis employees consists of regular and part-time steady-basis employees as of the end of the fiscal year, excluding thosenecessarily prevented from undergoing screening (due to international postings, childcare leave, health conditions, etc.).

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Tel: +81-3-3246-3063
Sustainability Promotion Department, Mitsui Fudosan Co., Ltd.
Website: https://www.mitsuifudosan.co.jp/english/