Mitsui Fudosan Logistics Park Inc.
Sustainability Finance
Framework
July, 2024

Mitsui Fudosan Logistics Park Inc.

Sustainability Finance Framework

1. Overview of MFLP-REIT and Initiatives towards Sustainability
1.1. Introduction
Mitsui Fudosan Logistics Park Inc. (“MFLP-REIT”) has formulated the Sustainability Finance
Framework (“this Framework” or “the Framework”) as set forth herein. To implement thesustainability finance, etc. (Note 1) including the issuance of sustainability bonds, thisFramework is established based on the “Sustainability Bond Guidelines 2021”, “Green BondPrinciples 2021”, “Social Bond Principles 2021”, “Green Loan Principles 2023”, “Green BondGuidelines 2022”, and the “Green Loan and Sustainability Linked Loan Guidelines (2022)”.
(Note 1) "Sustainability finance, etc." refers to the green finance and sustainability finance individually or collectively.
In addition, "green finance" refers to certain fund-raising activities by or through green bonds or green loans to fundthe new acquisition of the specified assets that qualify the Eligible Green Assets and to fund the refinancing ofborrowings and bonds funded for such new acquisition, and "sustainability finance" refers to certain fund-raising
activities by or through sustainability bonds or sustainability loans to fund the new acquisition of the specified assetsthat qualify Eligible Green Assets and Eligible Sustainability Assets and to fund the refinancing of borrowings andbonds funded for such new acquisition.

1.2. Objective and Background of Establishing the Framework
Mitsui Fudosan Co., Ltd. (“Mitsui Fudosan”) is the sponsor of MFLP-REIT and has formed astrategic partnership with respect to the logistics facilities business with MFLP-REIT. MitsuiFudosan has formulated a business statement with regards to the logistics facilities business,“Connecting Values Together with Customers, and Creating New Values Together withCustomers”. In addition to expanding business and enriching society, Mitsui Fudosan iscreating new value by contributing to regional and urban development. Furthermore, the Mitsui
Fudosan Group is committed to "contributing to the creation of added value for society as anindustrial developer” in the Mitsui Fudosan Group Long-Term Vision, “& INNOVATION
2030” and contribute to sustainability by addressing six group materialities (priority issues): “1.
contribution to industrial competitiveness”, “2. coexistence with the environment”, “3. healthand vitality”, “4. safety and security”, “5. diversity and inclusion”, and “6. compliance andgovernance”. In recent years, corporate responsibility towards sustainability, such asenvironmental, social, and governance (ESG) issues, has gained ever-increasing attention andinterest. MFLP-REIT has decided to establish this Framework in the belief that the creation of
the Framework will lead to the enhancement of medium- to long-term unitholders value andfulfill of its corporate social responsibility (CSR).

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As a partner in developing solutions for our tenants, we forge
connections among a wide variety of people, goods and ideas, taking on
the challenge of creating value beyond conventional boundaries. We
contribute to making modern life and society more fulfilling for all. MFLP
(Note 2)will continue to promote logistics business by combining the know-howthat it has developed in the real estate business as a comprehensive
developer.

(Note 2) "MFLP" is an abbreviation of Mitsui Fudosan Logistics Park which means cutting-edge logistics facilities thatare representative of Mitsui Fudosan’s quality with a particular size, good location, substantial facilities, convenience,and safety.

1.3. MFLP-REIT's ESG policy
In November 2017, Mitsui Fudosan Logistics REIT Management Co., Ltd. (the “AssetManagement Company”) established the “ESG (Environment, Society, Governance) Policy”,
and in collaboration with Mitsui Fudosan, is addressing on ESG issues such as acquiring
environmentally friendly green buildings, initiatives for tenants and local communities andinitiatives for governance with consideration for unitholder's interests.
Consideration and response to the environment
The Asset Management Company will work on measures to improve eco-efficiency and reduce
the environment load, always considering the direct and indirect impact of the environment
effect on its asset management business.
(1) Energy saving and the reduction of CO2 emissions
The Asset Management Company recognizes the use of energy and the emission ofgreenhouse gases deriving from the management of real estate as an important issue for theenvironment matter, seeks to reduce energy-derived CO2 emissions from its portfolio byintroducing equipment that will contribute to energy saving in properties in which MFLPREIT invests and promotes the efficient use of energy in its management of buildings.
(2) Conservation of the water resources and promotion of resource saving and waste reduction
To make effective use of limited water resources, the Asset Management Company will
promote water saving and will work to introduce water-saving equipment in the real estates
it manages. The Asset Management Company will also strive to contribute to theestablishment of a recycling-oriented society by advancing efforts for 3R (reduction, reuse,and recycle) to curb the volume of wastewater and waste materials discharged frombuildings.
(3) Utilization of green building certification system, etc.
To facilitate efforts for the environment and social consideration in the managed real estateand increase their asset value by enhancing the credibility and objectivity of these efforts at2

the same time, the Asset Management Company will work to utilize the certification
systems, commendation systems and environmental performance evaluation systems ofthird parties, including green building certification, in its asset management business.
Consideration and response to society
The Asset Management Company will fulfill its social responsibility in its business activities bygiving consideration to the various stakeholders surrounding the Asset Management Company,MFLP-REIT, and its investments. To practice this Policy, the Asset Management Company will
strive to build a good relationship with each stakeholder, actively working together andcooperating with them.
(1) Respect for human rights
As a member of society, the Asset Management Company will thoroughly respect basic
human rights in all of its business activities. The Asset Management Company will
establish a corporate culture that does not tolerate discrimination based on age, sex, origin
and race, etc. and acts that will impair the dignity of individuals such as forced labor andharassment.
(2) Efforts for better amenity and safety and security
The Asset Management Company will strive to increase customer satisfaction (CS) in
cooperation with the Mitsui Fudosan Group and the tenant companies to provide tenants
and other facility users with a comfortable, safe and secure space as a place for their daily
life. The Asset Management Company will also take steps for disaster prevention and abusiness continuity plan (BCP) by strengthening emergency response as well as
preparations in normal times in its managed assets.
(3) Consideration to local communities
The Asset Management Company will work to build good relations with local resident andlocal governments, etc. by actively communicating with them considering the impacts on
local communities created by the features of logistics properties, which have a closeconnection with urban areas.
(4) Approach to officers and employees
The Asset Management Company will provide its officers and employees, who are the key
elements of its business activities, with opportunities for ongoing education and training toimprove their capabilities, knowledge and awareness of sustainability. The AssetManagement Company will also create a workplace environment where diverse humanresources will be able to realize diverse ways of working in consideration of the work-lifebalance, so that they will be able to perform to the best of their potential.
(5) Sustainable procurement
In the procurement of goods and services in association with its business activities, the3Asset Management Company will base procurement on sustainability by asking our supply
chains to pay attention to the environment and society, in addition to economic efficiency.
Consideration and response to governance
As an asset management company of the MFLP-REIT, the Asset Management Company will
ensure equitability and transparency in the decision-making process of asset management, with
sufficient attention given to the rights of the unitholders of MFLP-REIT, and will fulfill its
fiduciary duty and accountability to unitholders.
(1) Compliance with laws and regulations
The Asset Management Company will emphasize ethical business activities in compliancewith the applicable laws, regulations and rules in all of its operations.
(2) Information disclosure to unitholders, etc.
Placing an emphasis on relationships (trustworthiness) with unitholders, etc., the AssetManagement Company will strive to disclosure the information necessary for theirinvestment decision in an appropriate and timely manner. In the disclosure, the AssetManagement Company will promote prompt and transparent information disclosure toensure equitability and equality and will work to actively disclosure non-financial
information on ESG, as well as financial information.
(3) Building of appropriate relations with interested parties, including the sponsor
Regarding the building of appropriate relations with interested parties, including thesponsor, Mitsui Fudosan, as an important governance issue, the Asset Management
Company will seek to increase mutual interests of the MFLP-REIT and the sponsor, andfulfill its fiduciary duty to the unitholders by setting the flow of decision-making
procedures for transactions with interested parties and developing a governance structure
for same-boat investment, etc.
2. Use of Proceeds
2.1. Eligible assets for investment
The proceeds (the “Proceeds”) from sustainability finance, etc. shall be allocated towards theacquisition of specific assets (“Eligible Green Assets” under green finance, as defined below,
and “Eligible Green Assets” and “Eligible Sustainable Assets” under sustainability finance, asdefined below) and towards refinancing new or existing debt and bonds to acquire these assets.
2.2. Eligibility criteria
Eligible Green Assets meet the following Eligible Green Project Criteria. Eligible Sustainable
Assets meet the requirements of both Eligible Green Project Criteria and Eligible Social ProjectCriteria (for these two types of eligible assets, hereinafter referred to as “Eligible Assets”).
42.3. Eligible Green Project Criteria
Assets that have received or is expected to receive any of the following certifications from athird-party certification program.
(1)DBJ Green Building Certification

3 stars or higher (top three certification levels)(2)BELS Certification
FY2016 standard

3 stars or higher (top three certification levels)*1

FY2024 standard
Non-residential

4 stars or higher (top three certification levels)

Residential with renewable energy equipment

3 stars or higher (top four certification levels)*2

Residential without renewable energy equipment

3 stars or higher (top two certification levels)(3)CASBEE Appraisal
CASBEE for Buildings, CASBEE for Real Estate

B+ or higher (top three certification levels)

CASBEE Local Governments Version

B+ or higher (top three certification levels)(4)LEED Certification*3

Silver, Gold or Platinum(top three certification levels)*4(5)BREEAM Certification

Very Good, Excellent or Outstanding(top three certification levels)*5(Note 1) Buildings must be eligible, i.e. in case of factories and others including logistics facilities andwarehouses, BEI must be 0.75 and under.
(Note 2) When acquiring buildings built before 2016, they are deemed to be eligible at Level 2 or higher,
regardless of renewable energy equipment.
(Note 3) Limited to buildings which are less than 3 years from date of construction completion.
(Note 4) For LEED BD+C, version 4.0 or later.
(Note 5) For BREEAM New Construction, version 6.0 or later.

2.4. Eligible Social Project Criteria
New or existing real estate properties that meets two or more of the following criteria.
(1) Basic infrastructure development to revitalize the local community
Real estate that utilizes the land lot in a way that contributes to “urban development(machi-zukuri)” of the surrounding area such as providing recreational green space basedon the needs of the local society.
(2) Access to essential services for daily life
Real estate with adequate countermeasures to disaster such as evacuation centers used in
the event of a disaster or has stockpiles of supplies for local residents.
Real estate that contributes to the local community such as having an authorized nursery
center in the property.
(3) Socio-economic improvement and empowerment
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Contributions to local societies and economies such as job creation by tenant companies
and utilization of local companies in construction projects.
3. Project Evaluation and Selection Process
3.1. Environmental and social objectives to be achieved through sustainability finance, etc.
MFLP-REIT’s sustainability finance, etc. must contribute towards achieving each objective
outlined in the aforementioned “Consideration and response to the environment” and“Consideration and response to society” of “1.3. MFLP-REIT's ESG Policy”.
“Consideration and response to the environment” (refer to page 2 for details)(1) Energy conservation and reducing CO2 emissions(2) Water and resource conservation and waste reduction(3) Utilization of Green building certification system, etc.
“Consideration and response to society” (refer to page 3 for details)(1) Respect for human rights(2) Efforts for better amenity, safety and security(3) Consideration to local communities(4) Approach to officers and employees(5) Sustainable procurement
3.2. Evaluation eligibility and selecting target assets
The Asset Management Company’s Chief Investment Officer (Investment & Operations
Division) will conduct the due diligence of target assets to be acquired through sustainability
finance, etc. (the “Target Assets”). The Sustainability Promotion Committee, which is chairedby the President & CEO and attended by standing members of the committee, namely the Chief
Investment Officer and the Chief Finance Officer, will evaluate and select the Target Assets tobe acquired based on the due diligence results and other information. In addition, the Chief
Compliance Officer will attend the Sustainability Promotion Committee and provide opinions.
3.3. Acquisition of Target Assets and sustainability finance, etc.
The acquisition and financing of the Target Assets will be decided by the ManagementCommittee, which is chaired by the President & CEO and attended by the full-time directors
and the Chief Compliance Officer.
3.4. Measures to prevent potentially negative environmental and social impacts
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Although the Asset Management Company operates its business under the “ESG Policy”, theacquisition of the Target Assets raises concerns over negative impacts on the environment andsociety, the Asset Management Company will discuss with the seller of the Target Asset on
corrective measures to mitigate such risks and verify whether appropriate actions have beenimplemented in order to minimize potentially negative impacts.
3.5. Disclosure of the selection process to investors
The selection process will be described in the evaluation report by Japan Credit Rating Agency,
Ltd. (“JCR”), and in the supplemental shelf registration documents of issuance (in the case ofgreen bond or sustainability bond issuance). Those documents will be disclosed to investors.

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4. Management of Proceeds
4.1. Management outstanding balance of Sustainability financing
The upper limit of funds raised through green finance and sustainability finance is calculated bymultiplying the Interest-bearing debt ratio (as of the most recent fiscal year-end that can becalculated as of the payment date or execution date of bond or loan financing) by totalacquisition price of the Eligible Assets (referred to as “Eligible Green Liabilities” if the Eligible
Assets are Eligible Green Assets, or “Eligible Sustainable Liabilities” if the Eligible Assets are
Eligible Sustainable Assets). In the event that Eligible Assets, for which the Proceeds wereallocated, are disposed of or fall outside of the Eligibility Criteria as Eligible Assets, remainingbalance of Proceeds from Eligible Green Liabilities and Eligible Sustainable Liabilities shallcontinuously be deemed as sustainability finance, etc.
4.2. Allocation plan of Proceeds
Total amount of the Proceeds will be allocated towards the assets as defined in “2.1. Eligible
assets for investment” at an early stage.
4.3. Tracking method of Proceeds
If the funds are procured in accordance with the preceding clause, the person in charge of theAsset Management Company’s Finance Division shall allocate the Proceeds towards thepredetermined use of funds, but if the Proceeds are not temporarily allocated, such person shalltrack and manage the funds so that the Proceeds will be allocated towards the specified use offunds. Until the Proceeds are allocated towards the specified use of funds, such funds will be
managed as cash or cash equivalents.
4.4. Internal and external audits of Proceeds
The Asset Management Company is audited and conducts internal audit periodically. Also,MFLP-REIT is audited regarding all the accounting matters including financing.
4.5. Management of documents related to Proceeds
Sumitomo Mitsui Trust Bank, Limited., an asset custodian bank, maintains a deposit book forthe account in which the Proceeds are received. The Asset Management Company uses EB(electric banking) systems to monitor account activities using an electronic terminal.

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5. Reporting
5.1. Reporting on the status of allocation of funds
On an annual basis, MFLP-REIT will disclose the status of allocations (including allocated andunallocated amounts for each category that meets the Eligibility Criteria) on the website until
the amount of the Proceeds is properly allocated. To the extent that there is a remaining amountof Proceeds, MFLP-REIT will also disclose annually on the website that the balance is not inexcess of the procured amount of Eligible Green Liabilities and Eligible Sustainable Liabilities.
5.2. Reporting on environmental improvement effects and social benefits
As long as a balance of Proceeds outstanding, MFLP-REIT will report on the website on theeffects of environmental improvements and social benefits from sustainability finance, etc. onan annual basis. (The report covers, but is not limited to, the followings. If the impact indicators
related to green finance overlaps with the same indicators related to sustainability finance,
disclosure of such impact indicators related to green finance will be omitted.)(1) Reporting on Environmental Improvement Effects
MFLP-REIT will report the status of the green building assessments and certification levels
as specified in “2.3. Eligible Green Project Criteria”.
(2) Reporting on Social Benefits (following Item)
Output indicators
OutcomeNumber of Eligible Social Assets(1) Basic infrastructure development to revitalize the local
community
・ Overview of the project (Target Assets)
・ Number of facilities equipped with seismic isolation structures(2) Access to essential services
・ Number of facilities designated as evacuation sites in the event ofa disaster・ Number of facilities equipped with disaster relief vendors
・ Number of facilities equipped with emergency supply stockpiles
・ Number of facilities equipped with cooking bench*・ Number of facilities equipped with emergency toilets
・ Number of facilities equipped with emergency power supply
・ Number of licensed nursery centers9(3) Socio-economic improvement and empowerment
The following items are related to the promotion of the employmentof local residents.
・ Number of facilities hiring local residents
・ Number of facilities hiring local companies for construction work
* The "cooking bench" is a brick-enclosed base with a seat plate placed on it. It is normallyused as a bench, but it is also used as a kitchen range in the event of a disaster.

ImpactContribute to the region by supporting the local community andeconomy through active communication with local residents andmunicipalities, and by creating a comfortable living environment for
local residents

5.3. Reporting when the status changes
If the appropriation of the Proceeds significantly changes from the initial appropriated status
and results in unappropriated funds, MFLP-REIT shall disclose on its website after approval
from the Chief Finance Officer of the Asset Management Company.

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